08-25-82 Council Special Meeting Minutes

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SPECIAL MEETING AUGUST 25, 1982 Certainly the type of activities that are contemplated by the local development corporation -are not activities that would be pursued by the civil city of South Bend simply as it is governed by state law. Indiana is one of the few states that has had in the past very few number of local development corporations available to its communities. I believe of the corporations presently in the State of Indiana you will find that none of them are more than a year or so old. As opposed to other areas that we are attempting to compete with around the country, that have had corporatio in place for ten to fifteen years, and have been building substantial resources to bring to their table and really to compete with our community. This is a very significan step and that this is the first such organization that we have put together that will allow us to compete with the same tools and the same equipment as our competition has. It also serves as an aspect to bring our community together. Now we will have the flexibility of having a corporation that stands ready to address a number of issues that come up and which, in the interest of the community, should be served on an immediate basis, without having to go through a full service of the community. I am certain that many opportunities have slipped through our fingers because we lacked this type of a tool. The individuals associated with the newly composed local developmen corporation are individauls that have been involved very actively in the community in the past, and are very experienced at addressing a number of the issues that come to be in the best interests of this community in dealing with the problems. I have all the confidence with this particular group as it will change through the process that has been established here. Thank you. Warren Deahl, Local attorney, and president of the South Bend Development Corporation: This is the last bridge that is needed to make the ethanol project a success. They have to have five million dollars replacement money or monies not forthcoming from the area of E. F. Hutton Company, because of circumstances beyond their control. They have taken the unprecedented position of buying for their own account of up to thirty -two million dollars, less what they have already subscribed in the neighborhood of ten million dollars. That expresses in the grandest sort of terms the kind of confidence they have in the project. Personalities involved have approached the Department of Energy and HUD and they have their assurance of favorable action with respect to the five million dollar grant. With the dedication of a number of people from all walks, and each of whom has a great stake among the citizenry, and its environment. These monies are to be repaid assuming the success of the financial operation of the plant over a period of years with an 8% interest. When these monies come back this will enable the South Bend Development Corporation to use these funds to receive further economic development in the area. We have seen an erosion in our population and we vitally need resources brought back into this community and that is what this project does. In summation, you have our pledge that we are going to do our utmost to see to the appropriate application of these funds, initially in the ethanol plant, and later, and urge your favorable action on this legislation. Christopher Murphy, President, First Source Bank: I stand before you in.a number of capacities both as President of First Source Bank that will participate in the loan to New Energy and has been working hard to bring other banks into the syndicate so that a plant could be built here in South Bend to employ people here in South Bend, and to import dollars and export products. I also stand here as a member of the LDC asking your support of Bill No. 86 -82, as amended, to give us a tool to be much more competitive in economic devleopment efforts. We have an awful lot of small business that can be helped with the LDC, businesses that are growing and expanding and with capital available to them, through LDC and through the funding that is available through HUD, for the ethanol plant, we will be able to eventually put back into the community another eight to nine million dollars in economic development funds. I think it is very important in the long term. Thank you. Phil Crone, Chairman UAW -CAP Council: On behalf of the auto workers we feel that the ethanol plant is needed for this community. I urge your support for the ordinance and resolution. Joy Wilson, Vice President, St. Joseph Valley Building Trade: I speak for quite a few citizens of the community who are wholeheartedly behind this project. It looks like this is our last chance to bring South Bend out of the hole. You gentlemen have the fate of South Bend in your hands and I hope you see the way. Thank you. Lloyd Robinson, President, Electrician's Union: Our industry is in a chaotic condition presently, and if this project doesn't go, it will be our last glimmer of hope. We see no light at the end of the tunnel and at this time our vision has improved, and are all praying that this project will be a reality. I highly hope that you will endorse these amendments that are proposed by the administratiol Melvin Reed, Attorney: The council has an opportunity to assist and encourage those industries to located in South Bend. You have an opportunity here to develop a mechanism by which you can fund business opportunities that want to locate in South Bend. This is a golden opportunity and it would be in the best interest of South Bend for all people if you would support this ordinance. James Benjamin, Business agent for Cement Masons: We have two ordinances that can't do anything but help the community. The total unemployment picture has been so bad that people are just rejoicing that they were going to get ten weeks more of unemployment. When we have to look -at news like that to lift up our spirits, I think these two ordinances that are proposed here tonight, can do much for the City. I would like to thank the council for giving the ordinances due consideration. Thank you. Ralph Johnson, 1822 Sherman: When things are done like this to bring more employment to the City, and greatly benefit the City, it should be dome right at the beginning, and nothing that would help it, be better left out. Could methanol be considered at a later date? John Voorde, Chairman: These particular bills under consideration now, don't deal specifically with the process of the New Energy Corporation at all,