04-08-74 Council Meeting Minutes

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REGULAR MEETING APRIL 8 1974 REGULAR MEETING - RECONVENED (CONTINUED) REPORT FROM THE COMMITTEE ON ORDINANCES To the Common Council of the City of South Bend: Your committee on Ordinances to whom was referred an ordinance amending and supplementing Chapter 21 of the Municipal Code of South Bend, Indiana (Southwest corner of South Michigan and Chippewa), respectfully reports that it has examined the matter and recommends: 1. That the ordinance be stricken from the Council files; 2. That a method or procedure be established governing the purchase of property by the City of South Bend; and 3. That a committee be formed to investigate the circumstances surrounding the purchase by the city of certain property from the Estate of Estelle Cover in the sum of $50,000; for the following reasons: 1. That the Council does not want to participate in a transaction involving constructive fraud and upon the advice of legal counsel whose opinion is attached hereto, made a part hereof and marked "Exhibit A "; 2. That the city should not purchase property indiscriminately without regard to the actual value of the property. A system should be set up requiring the obtaining of valid appraisals and Common Council approval for purchases of real estate in excess of $5,000; and 3. That, in view of the fact that the Letter of Understanding attached hereto, made a part hereof and marked "EXHIBIT B ", entered into by the Board of Works for the purchase of .382 acres of property located at the southwest corner of Michigan and Chippewa in the City of South Bend for the sum of $50,000 and commercial rezoning is tainted with constructive fraud; that the value of the entire 6.32 acre tract was appraised for residential purposes in the sum of $85,000 (see Personal Representatives'Inventory and Appraisement which is attached hereto, made a part hereof and marked "EXHIBIT C "); that certain inter - office memos from the Bureau of Traffic and Lighting dated August 25, 1972, and September 15, 1972, a letter from Richard Muessel dated September 15,1972 and a letter dated July 13, 1972, which are all attached hereto, made a part hereof and marked "EXHIBIT D ", indicate varying prices of the property and are not clear as to how the purchase price was arrived at; and that the appraisal of Ralph C. Michaels dated August 3, 1972, which is attached hereto, made a part hereof and marked "EXHIBIT E ", indicates varying appraisals depending on zoning and which also indicates that the taking of the frontage by the city "completely removes all possibility of commercial potential from this property ", the committee believes that an investigation should be made of the entire transaction. Peter J. Nemeth Chairman Councilman Taylor made a motion to accept the report and place it on file, seconded by Councilman Kopczynski. The motion carried. (A motion was later made by Councilman Newburn, seconded by Councilman Taylor, to strike the ordinance from the files, and carried.) Mr. James Roemer, City Attorney, stated that the ordinance would be withdrawn. Council President Nemeth stated that the Council was making no judgment as to the merits of the ordinance, only the manner in which it was handled. Mr. Roemer stated that it was felt the First Bank and Trust Company should present the rezoning to the city. Council President Nemeth then announced the formation of a special committee on Governmental Procedure; Councilman Parent serving as chairman, with Councilmen Kopczynski and Miller as members. REPORT FROM THE DIRECTOR OF THE DEPARTMENT OF PUBLIC PARKS Mr. James Seitz, Director of the Department of Public Parks, made his quarterly presentation to the Council. He stated that the department has increased the acreage of park land during the last quarter by the acquisition of 29 acres on Edison Road and 34.65 acres in Belleville Gardens. Pre- liminary plans were being developed; however, no funds were available at the present time. The department was also planning to purchase approximately 8 acres of land in the southeast section of the city although no funds were available at the present time. Mr. Seitz briefly talked about the department's plans to float a 1.5 million dollar bond issue in conjunction with the Civic Center and implementation of Phase I of the master plan for Potawatomi Zoo; discussions had with interest citizens on the problems at the King Recreation Center; the opening of the city's three golf courses on March 13; the opening of the Leeper Park Tennis Courts; construction on the Nature and Senior Citizens Center at Rum Village Park; the lighting contract for Boland, O'Brien and Harrison Parks. Mr. Seitz mentioned that another incident of cutting the light poles had occurred at O'Brien Park. He further mentioned his concern about purchasing materials and supplies for the operation of the Park Department with the rising costs of materials and delivery times being unpredictable. He talked about the care and maintenance of trees in the area between the property line and curb line on each side of public streets and referred to Chapter 19 of the Municipal Code which stated that the area was under the jurisdiction of the Board of Park Commissioners but that the owner of real estate in front of the area is responsible for the care of the area. He stated that many of the trees,in this area were in need of pruning or removal and it was a difficult job