01-23-78 Council Meeting Minutes

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REGULAR MEETING REGULAR MEETING RECONVENED (CONTINUED JANUARY 23, 1978 He said the object of Project Promote was to initiate a two component program to stimulate neighborhood reinvestment and thus i alleviate -the problem of inner -city deterioration. He said the first component will be a study designed to build an information base concerning reinvest - ment /disinvestment trends in identified neighborhoods. The second component will be the de- velopment of a positive program to promote and market central city neighborhoods. Council President Parent indicated that the Council had raised some questions at the informal meeting regarding this resolution. He said the City already has neighborhood organizations who have gained much strength, therefore, he questioned the need for a congress of neighborhoods. He said there was no need to duplicate or establish another group of neighborhood organization: Council Member Taylor made a motion to amend this resolution to $57,130 for the Michiana Urban Observatory study, seconded by Council Member Adams. Council Member Miller indicated that a lot of studies that were proposed have already been conducted, and the information was avail- able, therefore, the proposal to promote and market neighborhoods was not necessary. He indicated he was against the application for $92,960. Mr. Ellison indicated there was no in- formation available from other organizations that would give them the same facts. Council Member Adams indicated she felt that the entire grant application should be deleted. She aske< the Council not to approve this application. The motion carried. Council Member Taylor made a motion to pass the resolution, as amended, seconded by Council Member Dombrowski. The resolution passed by a roll call vote of five ayes (Council Members Serge, Szymkowiak, Taylor, Dombrowski and Parent) and four nays (Council Members Miller, Kopczynski, Adams and Horvath.) RESOLUTION NO. 604 -78 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH-BEND, INDIANA AUTHORIZING THE MAYOR TO SUB- MIT AN URBAN DEVELOPMENT ACTION GRANT (UDAG) AP- PLICATION TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of South Bend has embarked upon the development and revitalization of the South Bend Central Business District; and WHEREAS, the continued development and revitalization of South Bend's.Central Business District is important to the quality of life of the total community and would be advantageous to the future growth and development of the City of South Bend; and WHEREAS, during the development and revitalization of the South Bend Central Business District, it will be necessary to secure Federal aid in the form of an Urban Development Action Grant; and WHEREAS, the Common Council of the City of South Bend is interested in promoting de- velopment of the Central Business District, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: SECTION I. Hereby establishes the authority of the Mayor of the City of South Bend to submit under Title I of the Housing and Community Development Act of 1977, an Urban Development Action Grant Application to the United States Department of Housing and Urban Development. SECTION II. Hereby supports and is in favor of committing public sector resources, in the form of Urban Development Action Grant funds, to provide public parking facilities, pedes- trian connectors, other public site improvements and related development costs in conjunction with the private sector development of vacant land owned by the Redevelopment Commission (commonly referred to as "the hole "). SECTION III. This Resolution shall be in full force and effect immediately upon passage by the Common Council of the City of South Bend, Indiana. /s /Frank Horvath Member of the Common Council A public hearing was held at this time on the resolution. Mayor Peter J. Nemeth indicated if this grant was approved it would be used in conjunction with private sector investment to develop "the hole." He said the proposed project would consist of an office /hotel /commercial complex and supporting public facilities. He said UDAG funds can be obtained to finance the public portion of the project containing 1) a 750 -800 parking facility 2) a common area con- necting the three private buildings 3) an enclosed pedestrian walkway connecting the with the existing Century Center and proposed Century Mall. He said the privately financed portion of the project would include 1) a 132,000 square foot First Bank /Office Building 2) a 300 room Marriott Hotel 3) a 30,000 square foot office building. Mr. Christopher Murphy, III, First Bank President, gave a brief presentation of the project. Mr. Dan Cybulski, 601 Gladstor asked who was going to hold title to the property. The mayor indicated the details were not worked out as yet, and he gave several alternatives as to how this could be handled. Council Member Horvath asked how they arrived at the eight million figure. Mr. Murphy indicated it was basically contrived from the addition of the costs of the parking garage, the public area and the pedestrian walkway. He said it was anticipated that the eight million will cover all the needs in those areas. Mayor Nemeth indicated that the price could fluctuate, and there was a chance it could cost more. Council Member Adams asked if the mayor was going to offer an amendment regarding a line item budget in ordinance form being submitted to the Council. The Mayor indicated he did not feel this was necessary because this was a controlled agreement and HUD will be concerned as to how the money is going to be spent. Council Member Adams made a motion to amend the resolution by adding a new Section II which would read: For every category established under this Resolution, the Mayor shall submit to the Common Council a line item budget in ordinance form prior to any expenditures of any grant money received upon approval of this application; seconded by Council Member Kopczynski. Council Member Miller indicated he did not feel this was necessary since this was not like the other Community De- velopment applications. Council President Parent indicated they should not depart from the custom, and this has been put in all grant applications. Mayor Nemeth indicated that Mr. Brunner, City Attorney, and Mr. Murphy feel that this amendment would jeopardize the applica- tion.