08-25-75 Council Meeting Minutes

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REGULAR MEETING AUGUST 25, 1975 COMMITTEE OF THE WHOLE MEETING (CONTINUED) with respect to the matters specifically set forth in sub -parts "A" through "E" of Paragraph 8 hereinabove, (1) without receiving a recommendation from the joint committee described in Paragraph 8 (except where an emergency exists and reasonably precludes referring of the matter to the joint committee for its recommendation), or (2) contrary to the recommendation of such joint committee, then the Board of Managers, pursuant to an officially adopted resolution adopted at a meeting called for that purpose, may, within a reasonable time thereafter furnish written notice to the Mayor of the City of South Bend of its intention to discontinue its obligation to pay losses as provided in Paragraph 13 hereinabove, as well as any other obligations of support to the convention facility or its operation, not specified herein, to which it may hereafter commit itself our of Hotel -Motel Tax revenues. Such notice shall be served upon the Mayor of the City of South Bend either personally or by Certified Mail, return receipt requested, and shall inform the Mayor of the City of South Bend of the specific action or decision of the Century Center Board to which the Board of Managers takes exception and advising of its intent to invoke the provisions of this Paragraph relating to the dis- continuance of its obligation to pay such losses or additional support. The City of South Bend shall have fourteen (14) days following receipt of such notice to receive a reversal of action or decision on the part of the Century Center Board. If such action or decision of the Century Center Board is vacated, set aside or reversed, the Board of Managers shall not be entitled to discontinue its obligation to pay losses or additional support with respect to such action or decision of the Century Center Board. If the decision or action of the Century Center Board is not vacated, set aside or reversed within such fourteen (14) day period, the Board of Managers shall be entitled to dis- continue its obligation to pay losses or additional support at such time as it shall designate. Nothing contained herein shall relieve the Board of Managers of its responsibility to make the $150,000.00 annual payment provided for in Paragraph 3, which obliga- tion shall continue in effect so long as the Century Center Board operates and uses the convention facility for convention purposes as provided in this Agreement. Any discontinued obligations of the Board of Managers shall become the obligation of the Century Center Board.. No action or failure to act on the part of the Board of Managers, except by official resolution, shall constitute a waiver of its right hereunder at any time. The remedy provided herein is not exclusive. Mr. Rollin Farrand, Director of the Department the lease be numbered and this be included in Miller and Councilman Kopczynski. Mr. Farrand of Public Works, requested that the paragraphs of the amendment. This was agreed to by Councilman set forth the numbered paragraphs as follows: Section 1. Purpose Section 2. Agreement Section 3. Payment of the Terms of This Agreement Section 4. Designated Space Section 5. Scheduling Section 6. Equipment Section 7. Common Space Section 8. Operations Section 9. Mediation and Arbitration Section 10. Liability Section 11. Revenues Section 12. Parking Section 13. Losses Section 14. Board of Managers Reservation of Right to Discontinue its Obligation to Pay for Losses From Operations Section 15. Severability The motion to amend the lease agreement carried. Councilman Horvath indicated that it was stated in the lease that the first payment would not be made until 1978. He asked about this, and Mr. Fred Kahn, member of the Civic Center Authority, indicated that the rental could not be collected until the building was ready for use and this was the reason for the delayed date of 1978. Counc man Miller indicated that there also was an unofficial agreement that part of the monies being collected now would be used toward furnishing the facility. Councilman Taylor made a motion that the ordinance be recommended favorably, as amended, to the Common Council, seconded by Councilman Kopczynski. The motion carried. ORDINANCE AN ORDINANCE APPROVING THE FORM AND TERMS OF A LEASE AGREEMENT BETWEEN THE CITY OF SOUTH BEND, INDIANA, AND THE SOUTH BEND COMMUNITY SCHOOL CORPORATION AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO THE SOUTH BEND CIVIC CENTER. This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given an opportunity to be heard. Councilman Miller indicated that this ordinance was a continuation of the public hearing for the preceding two ordinances. Councilman Nemeth wondered if it would be possible to collect the money for operations in the future as the lease was worded, and Mr. Rosenthal indicated that this was simply to reimburse the city. Mr. Joseph Bradley, on the staff of the City Attorney, indicated that payments would be made twice a year to the city and were not pledged to be used in any particular manner. Councilman Nemeth indicated that the South Bend Community School Corporation had the right to sublease according to the lease agreement. He wondered if the city should be able to approve this. He indicated that there was no provision for city approval in the lease. Mr. Bradley indicated that the terms of a sublease must still fall within the terms of the lease between the city and the school corporation. He felt there would be no problem and approval of the city would not be needed. Mr. James Roemer, City Attorney, indicated that Councilman Nemeth had a good point and he felt the lease could be