07-24-00 Council Meeting Minutes

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REGULAR MEETING JULY 24, 2000 financing of the Hall. The NFF will take full responsibility for the operation of the Hall. Certain revenues will continue to go to operations. Eventually the Professional Sports Development dollars will go into a sinking fund or an endowment fund for major repairs and improvements to the Hall. One week ago the Redevelopment Authority passed a Resolution indicating their intention to issue _ new bonds to pay off the initial bonds for the Hall. Just this past Friday, the Redevelopment Commission passed a Resolution indicating the need to levy taxes to pay for the obligation under the Lease Purchase Agreement with the Redevelopment Authority. Mayor Luecke stated that he is asking the Council at this time to pass a Resolution that acknowledges the action taken by the Redevelopment Committee and also agrees to take the action necessary to include this tax levy in the upcoming budget. Should this Resolution not be adopted, the City still has to pay the debt on the Hall. It has been paid out of the general fund and tax incremental financing dollars. If the Council passes this Resolution and includes the tax levy in the budget that action does not preclude the City from continuing to look for other sources of funding to pay for the financing of the Hall. It is projected that the new bonds will cost $1.5 million dollars a year in annual payments until the year 2017. The tax rate will increase approximately twenty five cents ($.25) per one thousand dollars ($1,000.00) of valuation. The impact on the average residential parcel is somewhere between fifteen dollars ($15.00) and twenty -four ($24.00) dollars. Mayor Luecke noted that if you are currently paying one thousand dollars ($1,000.00) a year in property taxes then those taxes will go up thirteen dollars ($13.00) next year. He further noted that if you are paying two thousand dollars ($2,000.00) then your taxes will go up twenty -six dollars ($26.00) and so on.. In conclusion, Mayor Luecke noted that it is important to move forward at this time as the City owns the Hall of Fame and has a responsibility to pay for it and this plan meets those obligations. A Public Hearing was held on the Resolution at this time. The following individual spoke in favor of this Resolution: Mr. Jeff Young, 1351 East South Street, South Bend, Indiana, spoke in favor of this Resolution. He stated that the City needs to look at the economic impact it makes on the community, for the hotels, Century Center and the downtown retailer. He further stated that the Hall is an anchor for the continued revitalization of the downtown. The following nine (9) individuals spoke in opposition to the Resolution: Mr. Jim Cierzniak, 1156 East Victoria, South Bend, Indiana, submitted to the Council a three (3) page written statement which he read which states his objections to this Resolution and funding for the Hall of Fame. Ms. Joyce Boaler, 1606 Hillsdale Road, South Bend, Indiana, informed the Council that she said at the beginning that the Hall would fail and it has failed miserably. She noted that the building could be used for other purposes. Mr. Steve Davidovic,1004 Lincolnway West, South Bend, Indiana, owner of Stevie D's Barber and Beauty Concepts, informed the Council that he is a small business owner and if someone ran his business the way the Hall is being run he would be out of business. He noted that the Hall is an anchor around the necks of the citizens of South Bend and he believes other methods should be found to fund the Hall. Mr. Steve Bradley, 714 East Indiana, South Bend, Indiana, commended the Council for some of the things they have done this year but stated that he cannot commend the idea of forcing the people of South Bend to take hold of something they were promised they would never have to be shouldered with and that is the Hall of Fame. Mr. William Soderberg, 1515 East Wayne Street, South Bend, Indiana, indicated that people have the right to feel betrayed because promises were made that were not correct. He stated that the