08-19-82 Human Resources & Economic Development

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Page 2. Human Resources and Economic Development Kevin Horton then reviewed the Urban Development action grant program which requires repayment. Examples would include the 1st Source Center and the Ethanol Plant which has been in the works for two years. Councilman Voorde then passed out copies to the Committee of the Articles of Incorporation of the South Bend Development Corporation which were filed with the Secretary of State on August 18th. Councilman Crone questioned the 75% requirement of residency or doing business in South Bend of the membership . The Committee was informed that this is an SBA minimum requirement. She and several other Councilmen voiced concern of having the 23 initial members being chosen by the Mayor. John Mulkey voiced similiar concern, and stated that several of the members did not even known that they had been appointed. Mr. Crone questioned wh.yr.edevelopment could not act in the capacity that the not-for-profit corporation was being proposed for. He stated that it seemed analogous to "playing a game of charades" and "laundering money" . Kevin Horton stated that Community Development can give direct loans , however that the City could not do it directly. Mr . Crone added that it is the responsibility of public elected officials to oversee public funds , and this should be maintained. Councilman Crone questioned why Southhold could not be used to work in the capacity proposed for the LDC. Mr. Horton stated that it was more neighborhood based and did not have the same scope as the LDC . Glenda Rae Hernandez stated that CAC held a meeting on August 18th recommending approval of the $500, 000 conditioned on a guarantee that present employees be retained and that the corporation must bargain in good faith with any existing union. (Copy attached) Councilman McGann questioned whether both groups involved with the Robertsons situation had been given equal opportunity to become involved. He had received complaints over the lack of information being provided the second group . Councilman Voorde questioned why the Common Council 's role was so limited. He had several questions with regard to the Articles of Incorporation, the loan procedures , the length of loans and default of the loans . He specifically objected to the contractural procedures suggested in the Ordinance for the Board of Public Works without Common Council approval . Councilman Crone voiced further concern since in addition to the $500, 000 contained in Bill No . 88-82, she learned from the newspaper that