11-24-03 Council Meeting Minutes

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REGULAR MEETING NOVEMBER 24, 2003 subject to a separate remonstrance. He noted that he does not have any objections to the idea of a Studebaker Museum and wishes them the best of luck. However, even though it has been stated that bond proceeds would not be used, there are other TIF dollar proceeds which might be spent which would not necessarily guarantee that the cost is what it is supposed to be. He noted that the larger issue is that there are a number of Working Agreements that are not in place at this point in time. He stated that he realizes that everyone hopes this project will be a success, however, in the event that it is not, without Agreements in place the Council is approving a bond issue which will build a museum and the liability for expenses and shortfalls will fall back on the Council either in the form of tax dollars or appropriations from other entities. He stated that the Council may be signing a committed check with regard to initial construction costs but is leaving a door open with regard to operational costs. He stated that the request last year was for one hundred seventy -two thousand dollars ($172,000.00) which he does not find objectionable and which is not unreasonable. However, should that cost grow to two hundred thousand dollars ($200,000.00) or higher on an annual basis, that is unreasonable and by moving in this fashion without agreements in place the City is left open to that sort of liability. He stated that the Council has a greater responsibility to the City then to leave it with that sort of contingent liability. Councilmember Varner stated that while he has no objections to the other items that are in this Resolution, he does object to moving forward with the Studebaker Museum without the necessary arrangements and agreements in place and cannot support this bill for that reason. Councilmember Kelly made a motion to adopt this Resolution. Councilmember Coleman seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes and one (1) nay vote by Councilmember Varner. RESOLUTION NO. 3270 -03 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE ISSUANCE OF TAX INCREMENT FINANCE BONDS OF THE SOUTH BEND REDEVELOPMENT DISTRICT (AIRPORT ECONOMIC DEVELOPMENT AREA PROJECT) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED SIXTEEN MILLION AND 00 /100 DOLLARS ($16,000,000.00) WHEREAS, the Common Council of the City of South Bend, Indiana (the "Common Council), is the legislative body of the City of South Bend, Indiana (the "City"); and WHEREAS, the South Bend Redevelopment Commission (the "Commission ") is the governing body of the South Bend Redevelopment District (the "District "); and WHEREAS, the Commission has previously designated an area in the City known as the Airport Economic Development Area (the "Area ") to be an economic development area and tax increment finance allocation area within the meaning of Indiana Code 36 -7 -14 (the "Act'); and WHEREAS, the Commission has determined to undertake certain local public improvements in the Area, such local public improvements including without limitation road improvements to Cleveland Road (from Mayflower to Ralph Jones Drive), Olive Road/Nimtz Parkway, Bendix Drive /Lincolnway intersection, Bendix Drive Relocation and related right of way property acquisition and engineering costs and improvements at the Bosch site (collectively, the "Project'); and WHEREAS, the Commission has previously determined to issue revenue bonds of the District in an aggregate principal amount not to exceed Thirteen Million and 00 /100 Dollars ($13,000,000.00), and the Common Council, in accordance with the Act, adopted Resolution No. 3190 -03 entitled "A Resolution of the Common Council of the City of South Bend, Indiana, Approving the Issuance of Tax Increment Financing Revenue Bonds of the South Bend -23-