09-13-82 Human Resources & Economic Development

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Tointr ttrt Erpuri c�IO nIt Qlnm ttrin OIOiuwil of or OJ1t1H of'nuo Wni1: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The September 13, 1982 Human Resources and Economic Development Committee meeting was called to order at 4: 30 p .m. by its chairman Councilman Voorde in the Council Meeting Rooms . Person in attendance included: Councilmen McGann, Szymkowiak, Zielinski, Crone,Beck, Harris , Voorde, Taylor and Serge; Ann Kolata, Jon Hunt, Jane Luchowski, Lois Johnson, John Mulkey, Harold Hewitt, John Tryther, and Kathleen Cekanski-Farrand and Eugenia Schwartz. The purpose of the meeting was to continue the review of Bill No. 88-82 which would appropriate $500, 000 from the Community. Development Block Grant Fund: to the Economic Development Capital Fund for assisting the retention of Robertsons . Councilman Voorde called upon Jon Hunt to give a further update. Mr. Hunt stated that a South Bend development corporation alone could not save Robertsons . That even if the appropriated- ordinance is passed tonight, that the ultimate decision rests with Wickes and the private investor groups . The City Administration is trying to retain a viable department store in the downtown and was concerned over retaining employees . Councilman Voorde outlined the major concerns he had regarding such an appropriation: that the money would be used only in South Bend, that the money would be used for the specific purpose of assisting Robertsons , and that present jobs of Robertson' s employees would be retained. Eugenia Schwartz then reviewed a draft of Bill 88-82 (copy attached) . She noted that in Section II the April 1, 1983 date was included because this was the date of the annual corporate meeting and this was the date that the 1983 CD Funding would begin. Councilman Crone suggested changing the title to reflect that the monies would be used solely for the Robertson' s project . The suggestion was accepted. Councilman McGann questioned the inclusion of the terms "equity investment" in the Statement of Purpose and Intent. Councilman McGann made a motion seconded by Councilman Crone to strike these words from the Section. The Motion passed 3-1 with Councilman Taylor in the minority. Eugenia Schwartz then reviewed Section III of the draft which dealt with the South Bend Development Corporation "considering" the retention of jobs . Councilmen Szymkowiak, McGann, Voorde and Crone voiced strong opposition to this section as presently drafted. Councilman Crone stated that either "we should nail it dawn specifically or forget it" . Councilman Serge noted that if there are to many regulations that the City may lose not only Robertsons but Penneys . Jon Hunt was called upon to explain part of the investor plan. He noted that one option was to loan the money at a 6%interest rate over a seven year payback period with an amorization of 10-15 years . He also noted ►w[[ ►wsn . j. ►ueuswoNe co.