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HomeMy WebLinkAbout10-12-09 Common Council Minutes REGULAR MEETINGOCTOBER 12, 2009 Be it remembered that the Common Council of the City of South Bend, Indiana met in the Council Chambers of the County-City Building on Monday, October 12, 2009 at 7:00 p.m. The meeting was called to order by Council President Dieter and the Invocation and Pledge to the Flag were given. ROLL CALL COUNCILMEMBERS: Present: Derek D. Dieter 1st District, President Henry Davis, Jr. 2nd District Thomas LaFountain 3rd District Ann Puzzello 4th District, Chairperson Committee of the Whole David Varner 5th District Oliver Davis 6th District, Vice-President Timothy Rouse At-Large Karen L. White At-Large Absent: Al “Buddy” Kirsits At-Large OTHERS PRESENT: John Voorde City Clerk Janice I. Talboom Deputy City Clerk Kathleen Cekanski-Farrand Council Attorney Mary Beth Wisniewski Chief Deputy REPORT FROM THE SUB-COMMITTEE ON MINUTES To the Common Council of the City of South Bend: The sub-committee has inspected the minutes of the September 28, 2009 meeting and the September 30, 2009 Special Meeting of the Council and found them to be correct. Therefore, we recommend the same be approved. s/Derek D. Dieter s/David Varner Councilmember Puzzello made a motion that the minutes of the September 28, 2009 meeting and the September 30, 2009 Special Meeting of the Council be accepted and placed on file. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. SPECIAL BUSINESS There was no special business to come before the Council at this time. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:02 p.m. Councilmember Henry Davis made a motion to resolve into the Committee of the Whole. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. Councilmember Puzzello, Chairperson, presiding. Councilmember Puzzello explained the procedures to be followed for tonight’s meeting in accordance with Article 1, Section 2-11 of the South Bend Municipal Code. Councilmember Puzzello stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. 1 REGULAR MEETINGOCTOBER 12, 2009 PUBLIC HEARINGS BILL NO. 27-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS PARTS OF SECTION 6-26 OF CHAPTER 6, ARTICLE 6, OF THE SOUTH BEND MUNICIPAL CODE PERTAINING TO LOW VOLTAGE CONTRACTORS Councilmember Varner made a motion to strike this bill from consideration. Councilmember Dieter seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 79-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS PROVISIONS OF CHAPTER 14, ARTICLE 9 OF THE SOUTH BEND MUNICIPAL CODE BY INCLUDING REGULATIONS FOR LIMITED PARKING WHERE A FEE IS CHARGED ON NON-RESIDENTIAL AREAS Councilmember Dieter made a motion to continue this bill indefinitely. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 77-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND APPROPRIATING $1,148,607 FROM THE COMMUNITY DEVELOPMENT FUND (FUND 212) FOR THE HOMELESS PREVENTION AND RAPID RE-HOUSING PROGRAM (HPRP) FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE CITY OF SOUTH BEND, INDIANA, AND DESIGNATED SUB GRANTEE AGENCIES FOR THE PROGRAM YEAR BEGINNING, AUGUST 19, 2009, TO BE ADMINISTERED THROUGH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT Councilmember Rouse, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. th Ms. Pam Meyer, Director, Community & Economic Development, 12 Floor County- City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Meyer advised that this bill would appropriate $1,148,607 in Homelessness Prevention and Rapid Re-housing (HPRP) funds. This action allocates new funds in accordance with the 2008 Action Plan and Amendment of the Housing and Community Development Plan submitted to the Department of Housing and Urban Development on May 20, 2009, and further amended and resubmitted on July 7, 2009. The funds being made available are part of the American recovery and Reinvestment Act of 2009 (ARRA) and represent a one-time formula allocation to South Bend as an entitlement community. She stated that a memo was provided to the Council on April 30, 2009, that the HPRP 2 REGULAR MEETINGOCTOBER 12, 2009 funding is allocated for communities to provide financial assistance and case management services to prevent individuals and families from becoming homeless, and to help those who are experiencing homelessness to be quickly re-housed and stabilized. Ms. Meyer noted that additionally the memo indicated that the City would allocate to the appropriate agencies working with its Continuum of Care. The approved amendment indicated that the City would conduct an application process for the allocation of these funds. She stated that four applications were received with four being recommended for funding those being Dismas, Inc.; the Center for the Homeless, Inc.; Youth Service Bureau of St. Joseph County, Inc.; and Madison Center. She noted that there will be only one point of entry into this program related to the provision of financial assistance. That point of entry will be the Center for the Homeless. For that reason the Center’s funding level includes the dollars for the financial assistance service. She stated that Grantees will have approximately 36 months to use the funds with all funds being spent no later than July 19, 2012. This being the time heretofore set for the Pubic Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Councilmember Henry Davis asked if there were any programs like this and what their percent of success was. Ms. Meyer advised that this program is derived from new stimulus monies and that she doesn’t have anything to compare it to. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 78-09 PUBLIC HEARING ON A BILL SUPPLEMENTING AND AMENDING ORDINANCE NO. 9722-06 WHICH AUTHORIZED THE ISSUANCE AND SALE OF THE CITY OF SOUTH BEND, INDIANA VARIABLE RATE ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2007 (PEI/GENESIS PROJECT), ISSUED ON JANUARY 30, 2007 IN THE PRINCIPAL AMOUNT OF $8,105,000 (THE “BONDS”), APPROVING THE FORM OF, AND AUTHORIZING THE EXECUTION AND DELIVERY OF, AN AMENDED AND RESTATED TRUST INDENTURE, AN AMENDED AND RESTATED LOAN AGREEMENT AND OTHER DOCUMENTS RELATED TO THE BONDS; AUTHORIZING THE DELIVERY OF A CONFIRMING LETTER OF CREDIT AND THE EXTENSION OF THE MATURITY DATE OF THE BONDS; AND AUTHORIZING PROPER OFFICERS TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE IN CONNECTION THEREWITH AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO Councilmember Rouse, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. 3 REGULAR MEETINGOCTOBER 12, 2009 Mr. Alan Feldbaum, Attorney, Barnes & Thornburg, LLP, 100 North Michigan Street, South Bend, Indiana, made the presentation on behalf of PEI Genesis. Mr. Feldbaum advised that they are serving as bond counsel with respect to the modification of the City of South Bend, Indiana Variable Rate Demand Economic Development Revenue Bonds, Series 2007 (PEI/Genesis Project.) He stated that the purpose of the Supplemental Bond Ordinance is to authorize the executive of the Bond Documents for the purpose of making certain changes in the terms and provisions which are contained in the original Bond documents, including, authorizing the delivery of a confirming letter of credit to further secure the Bonds and extending the maturity date of the Bonds from April 1, 2027 to April 1, 2033. Mr. Feldbaum stated that the City bears no responsibility, financial or otherwise, with respect to the payment of, principal of and interest on the Bonds. He stated that the ordinance specifies that in Section 6. He stated that the issuance of the Bonds by the City merely allows the Borrower to obtain tax- exempt financing as provided for under the Internal Revenue Code. This being the time heretofore set for the Pubic Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Councilmember Rouse advised that he has a statement and that he is fully supportive of this process, however, this bill allows for the City to be a conduit for a borrower to in this case borrow $8.1 million dollars. Consequently, it winds up being a tax-exempt investment for those who are investing in the bonds that are being handled by a financial institution. It allows the manufacturer to borrow money at a low interest rate. The City has another obligation; if this bill is permissible under IC 36-7-12-11.9 simply gives the definition of the terms. In Chapter 12, Section 24 and 25, the Redevelopment Commission has an obligation to look at the health and general welfare per that section of that Act and then issue a Resolution and then the South Bend Common Council, in Section 25 of that same chapter also is to look at the health and general welfare per this process to the City of South Bend. He stated that we are living in a post HEA 1001 and this body has raised the taxes of the residents of St. Joseph County by participating in that by .95%. He stated that when the Council has the opportunity to use an economic tool like this, there needs to be strong negotiation with the manufacturer “the horse is out of the barn” on this particular issue, but in the future when we use this particular tool, the officials of the City, the Council, and the Department of Community and Economic Development, need to be involved in intense dialogue with the perspective borrower of these monies to see that jobs are produced in the City of South Bend. Much like that takes place in Jefferson County, more specifically in the City of Madison, where they specifically list in their Tax Abatement Ordinance: The City of Madison has an article in their ordinance that states that “Indiana Workforce Development provides employment and training services in accordance with the provisions of the job training partnership act of 1982 as amended, and other applicable Federal, State and Local Laws that allow to do the following: 1. The Manufacturer is going to try to hire persons in Madison. 2. They will hire persons in Jefferson County. 3. In the State of Indiana. 4. Out of State. He stated that he is fully supportive of this process, but the Council needs to be looking at this process in more depth rather than just saying that it doesn’t really affect us. He stated that it does affect us and is a wonderful stimulus, and is an early version of a stimulus plan. He stated that this Council has passed a couple in the past and were not really cognizant of the opportunities that they had to really look out for the general welfare per the Statement in the Act of the residence of South Bend Indiana. Councilmember Varner asked Councilmember Rouse if he was referring to the Tax Abatement, because this is private money. Councilmember Rouse stated that this is money and the issuer of this bond is the City of South Bend, called a conduit, but the City is the actual issuer of the this bond, it goes to a bank, and they handled it. Councilmember Rouse asked Mr. Feldbaum to correct him if he is wrong. 4 REGULAR MEETINGOCTOBER 12, 2009 Mr. Feldbaum stated that the bonds are issued by the City of South Bend and then the City of South Bend takes the money, and in this case about $8 million dollars and loaned it to PEI/Genesis and then PEI/Genesis signed a promissory note and loan agreement to pay the money back. However, what happens is that promissory note that PEI/Genesis signed gets assigned by the City to the Trustee for the Bond Holders and then the City is out of the picture and that happens simultaneously with the closing and is part of it. So the note is transferred and the documents expressly state that there is no recourse back against the City or about any of the City’s property or the State, or the Council, or anybody else and that the bonds are payable solely from the payments by the Company on the note or in the event that the company doesn’t pay, then the payments by the bank that has issued the line of credit would secure it. Councilmember Rouse stated that he understands that, but this is the point that he is making that it is a win for the borrower in this case PEI/Genesis. It’s a win/win for the person who is investing in the tax exempt bond, it out to be a win/win for the City of South Bend in that we negotiate, and he is not asking that it be part of a tax abatement ordinance, but simply a paradigm shift that says listen, the City is willing to help and want to help, but at the same time have some concerns per the Act, about the health and general welfare of the persons living in this City. He stated that it is in the Act and all that has to be done is to read it and understand that collectively this is a wonderful opportunity to enhance both the borrower, the manufacturer in this case and helps the people who are willing to invest in these bonds, but it also can be a bigger win/win for the City of South Bend. He stated that is what he is driving after. Mr. Feldbaum pointed out one thing that does happen at the Economic Development Commission level is that they do ask about the creation of jobs and employment. He stated that there is a report that is actually issued by the Economic Development Commission at the time that the bonds came before in 2007, that actually talked about the jobs that were going to be created. Councilmember Rouse stated that he is willing to discuss this and is not asking for an Ordinance change, he reiterated that they need to be more cognizant of how this process works and how the City of South Bend can get a bigger piece of the employment. He stated that the City of South Bend has a massive unemployment rate compared to St. Joseph County and what he would like to see done is that when the City issues these bonds, is to see more employed in Portage Township and those townships that are directly related to South Bend, Indiana. He stated that he is all for St. Joseph County and all of those other wonderful things, but the priority needs to be the boundaries of this City. Mr. Feldbaum stated that he doesn’t have the exact number or breakdown of where workers live, but would be happy to look into that. Councilmember Rouse stated that he is an elected official and a fiscal officer in the City of South Bend and is looking to focus on opportunities to enhance this city, because the unemployment rate is a little bit higher than the rest of the county, along with some other negative situations. Councilmember Henry Davis stated that he asked earlier this afternoon who owns the building that was recently vacated by PEI/Genesis on Bendix Avenue, and who was paying the mortgage if there is one and the taxes on it and after further discussion tonight and the answers that were given it completely changed how he feels and will not be voting in favor of this in good conscience. Councilmember Oliver Davis questioned what Councilmember Rouse meant by this issue being out of the gate and what can the Council do in the future to address this issue without it being out of the gate. Councilmember Rouse stated that he looks at this bill and really does support it as lessons learned. He stated that the way he learned about this was is to take the 135 page document that was attached to the ordinance and started to study it, and what happens 5 REGULAR MEETINGOCTOBER 12, 2009 when you get into Title 36 Article 7, things start to pop up and so what he is thinking is that as the fiscal body is to understand the opportunities while in the negotiating part. He stated that PEI/Genesis is a wonderful company, however, if the Council does not raise the question, it is not going to happen, it is up to the Council to take what they have in the Act and make is work for the City’s best interest. He stated that for now he looks at it as a lesson learned but in the future for the Council to be a little more cognizant of how to make those things happen. It’s not complaining or blaming, it is just a matter of enlightenment. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Rouse seconded the motion which carried by a voice vote seven (7) ayes and one (1) nay. RISE AND REPORT Councilmember Varner made a motion to rise and report to the full Council. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. ATTEST: ATTEST: _________________________ _________________________ John Voorde, City Clerk Ann Puzzello, Chairperson Committee of the Whole REGULAR MEETING RECONVENED Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County-City Building at 7:42 p.m. President Derek D. Dieter presided with eight (8) members present. BILLS – THIRD READING ORDINANCE NO. 9967-09(A) AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND APPROPRIATING $1,148,607 FROM THE COMMUNITY DEVELOPMENT FUND (FUND 212) FOR THE HOMELESS PREVENTION AND RAPID RE-HOUSING PROGRAM (HPRP) FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE CITY OF SOUTH BEND, INDIANA, AND DESIGNATED SUBGRANTEE AGENCIES FOR THE PROGRAM YEAR BEGINNING, AUGUST 19, 2009, TO BE ADMINISTERED THROUGH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT 6 REGULAR MEETINGOCTOBER 12, 2009 This bill had third reading. Councilmember Varner made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. ORDINANCE NO. 9968-09 AN ORDINANCE SUPPLEMENTING AND AMENDING ORDINANCE NO. 9722-06 WHICH AUTHORIZED THE ISSUANCE AND SALE OF THE CITY OF SOUTH BEND, INDIANA VARIABLE RATE ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2007 (PEI/GENESIS PROJECT), ISSUED ON JANUARY 30, 2007 IN THE PRINCIPAL AMOUNT OF $8,105,000 (THE “BONDS”), APPROVING THE FORM OF, AND AUTHORIZING THE EXECUTION AND DELIVERY OF, AN AMENDED AND RESTATED TRUST INDENTURE, AN AMENDED AND RESTATED LOAN AGREEMENT AND OTHER DOCUMENTS RELATED TO THE BONDS; AUTHORIZING THE DELIVERY OF A CONFIRMING LETTER OF CREDIT AND THE EXTENSION OF THE MATURITY DATE OF THE BONDS; AND AUTHORIZING PROPER OFFICERS TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE IN CONNECTION THEREWITH AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO This bill had third reading. Councilmember Varner made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of seven (7) ayes and one (1) nay (Councilmember Henry Davis.) RESOLUTIONS RESOLUTION NO. 3992-09 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROVING A PETITION OF THE AREA BOARD OF ZONING APPEALS FOR THE PROPERTY LOCATED AT: TWO VACANT LOTS NUMBERED 826 AND 827, 40 FEET EAST OF KALEY STREET, DIRECTLY EAST AND ADJACENT TO ROSIE’S KAZBAR (2644 W. WESTERN AVE.) ON THE SOUTH SIDE OF WESTERN AVENUE, SOUTH BEND, INDIANA 7 REGULAR MEETINGOCTOBER 12, 2009 WHEREAS, Indiana Code Section 36-7-4-918.6, requires the Common Council to give notice pursuant to Indiana Code Section 5-14-1.5-5, of its intention to consider Petitions from the Board of Zoning Appeals for approval or disapproval; and WHEREAS, the Common Council must take action within sixty (60) days after the Board of Zoning Appeals makes its recommendation to the Council pursuant to I.C. 36-7-4-918.6; and WHEREAS, the Common Council is required to make a determination in writing on such requests pursuant to Indiana Code Section 36-7-4-918.4, and WHEREAS, the South Bend Board of Zoning Appeals has made a recommendation, pursuant to applicable state law. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I. The Common Council has provided notice of the hearing on the Petition from the Board of Zoning Appeals pursuant to Indiana Code Section 5-14-1.5-5, requesting that a Special Exception be granted for the property located at: Two vacant lots numbered 826 and 827, 40 feet East of Kaley Street, directly East and adjacent to Rosie’s Kazbar (2644 W. Western Avenue) on the South Side of Western Avenue, South Bend, Indiana. In order to permit a Special use for off site parking in a mixed-use district. SECTION II. Following a presentation by the Petitioner, and after proper public hearing, the Common Council hereby approves the petition of the South Bend Board of Zoning Appeals, a copy of which is on file in the Office of the City Clerk. SECTION III. The Common Council of the City of South Bend, Indiana, hereby finds that: 1. The proposed use will not be injurious to the public health, safety, comfort, community moral standards, convenience or general welfare; 2. The proposed use will not injure or adversely affect the use of the adjacent area or property values therein; 3. The proposed use will be consistent with the character of the district in which it is located and the land uses authorized therein; 4. The proposed use is compatible with the recommendation of the City of South Bend Comprehensive plan; all of which is requested by the South Bend Municipal Code §21-09.03 SECTION IV. Approval is subject to the Petitioner complying with the reasonable conditions established by the Board of Zoning Appeals which are on file in the office of the City Clerk. SECTION V. The Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Mr. Mark Lyons, Assistant Zoning Administrator, 125 S. Lafayette Blvd., South Bend, Indiana, presented the report from the Area Board of Zoning Appeals. 8 REGULAR MEETINGOCTOBER 12, 2009 Mr. Lyons advised that the petitioner is seeking a Special Exemption to allow for off site parking in a “MU” Mixed Use District, on property located on the south side of Western Avenue, east and adjacent to 2644 Western Avenue. He stated that the Area Board of Zoning Appeals held a public hearing on September 2, 2009 and sends this bill to the Common Council with a favorable recommendation. Mr. Michael Lipsky, Attorney, 257 W. Indiana Av, Suite B, Valparaiso, Indiana, made the presentation for this bill on behalf of client Taste of Mexico. Mr. Lipsky advised that his client is seeking a special exception to use off site parking, reduce the number of parking spaces and reduce the minimum width of maneuvering space in a parking lot. He stated that his clients have recently expanded their business. They operate a restaurant, bar, and dance hall. Mr. Lipsky noted that his client’s majority of business and the heart of this establishment is the restaurant. He stated that the bar and dance hall are open at limited times and hours. Mr. Lipsky noted that the proposed parking lot is located directly across the street on Western Avenue and within forty feet of a traffic light controlled intersection. He asked the Council for their favorable consideration. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Puzzello made a motion to adopt this Resolution. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. BILL NO. 09-60 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROVING A PETITION OF THE AREA BOARD OF ZONING APPEALS FOR THE PROPERTY LOCATED AT 616 N. ST. PETER STREET Councilmember White made a motion to continue this bill until the November 9, 2009 meeting of the Council. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. RESOLUTION NO. 3993-09 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1400 WEST RIVERSIDE DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR STEEL WAREHOUSE COMPANY LLC WHEREAS, a petition for personal property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South , Bend, Indiana, requesting that the area commonly known as 1400 West Riverside Drive South Bend, Indiana, and which is more particularly described as follows: 9 REGULAR MEETINGOCTOBER 12, 2009 Beginning at the Southeast corner of the Southwest ¼ of said, section 35; thence South 89 49’ 52” West (bearing assumed) along the South line of said section, 308.97 feet; thence North 89 55’ 00” West, 116.24 feet; thence North 00 00’ 27” West, 12.00 feet to the North line of a 12 foot alley; thence North 89 55’ 00” West along said North line of alley; the East line of Kessler Boulevard, 128.00 feet South 89 55’ 18” East of the Northeast addition to the City of South Bend recorded April 6, 1906 in the Plat Book 0, pages 30 and 31; thence South 89 55’ 18” East along the South line of King Street, 352.84 feet; thence North 00 00’ 27” West, 194.85 feet to a point the centerline of the East and West 14 foot alley between King Street and McCartney Street produced East; thence North 00 06’ 09” East, 128.81 feet; thence North 89 46’ 49” East 287.05 feet to the Westerly line of Riverside Drive; thence South 16 37’15” West along a chord subtending said Westerly line of Riverside Drive, 455.43 feet to the South line said section 35; thence North 90 00’ 00” West along said South line, 156.71 feet to the point of the beginning. Commencing at the Southeast corner of the ¼ of said section 35; thence North 00 00’ 30” West (bearing assumed) along the East line of said Southwest ¼ a distance of 463.14 feet to the Point of Beginning for the following described tract; thence continuing North 00 00’ 30” West along said East line 336.00 feet to the South line of Queen Street; thence South 89 56’ 09” West along said South line of Queen Street 176.60 feet, thence North 00 02’ 36” Est. 195.00 feet to the centerline of the East and West 14 foot alley between Kinyon Street and Queen Street; thence South 89 56’ 09” West along said centerline of alley, 131.27 feet; thence South 00 06’ 09” West along the East line of Lot 145 in the Third Plot of Northwest Addition recorded March 7, 1907 in Plat Book 9, page 60 in the Office of the St. Joseph County Recorder and its Northerly and Southerly extensions, 195.00 feet to the South line of Queen Street; thence South 89 56’ 09” West along Allen Street; thence South 00 05’ 51” West along said East line of Allen Street, 329.87 feet to the South line of McCartney Street; thence South 89 58’ 27” East along said South line of McCartney Street, 12.91 feet; thence South 00 06’ 09” West 6.11 feet; thence North 89 56’ 09” East 308.71 feet to the Point of Beginning. and which has Tax Key Numbers 018-2110-4065 and 18-2110-4067 be designated as an Economic Revitalization Area under the provisions of Indiana Code 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, the Department of Community and Economic Development has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6-1.1-12.1, et seq., and South Bend Municipal Code Sections 2-76, et seq., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community and Economic Development Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds pursuant to Indiana Code 6-1.1-12.1-4.5 et seq., that: a. The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type; 10 REGULAR MEETINGOCTOBER 12, 2009 b. That the estimate of the number of individuals that will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed installation of new manufacturing equipment; c. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION II. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6-1.1-12.1-4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community and Economic Development, and the Community and Economic Development Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of (5) five years. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5-3-1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Rouse, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send to the full Council with a favorable recommendation. Mr. Gerald Lerman, Vice-President, Steel Warehouse Co., LLC, 2722 W. Tucker Drive, South Bend, Indiana, made the presentation for this bill. Mr. Lerman advised that Steel Warehouse is a steel service center focusing on flat rolled, low carbon steel, with operations involving slitting, leveling, pickling, temper rolling, shearing and cold reducing. The company also supplies profiling parts using its plasma and laser cutting operations. Mr. Lerman stated that they plan to acquire and install releveling equipment to condition armor plate steel in preparation for burning parts, 11 REGULAR MEETINGOCTOBER 12, 2009 either by the company or third parties. The process will involve the use of the company’s temper mill to level special allow steel, having subcontractors heat treat the steel, and then returning the steel to the company for releveling. These processes will allow the company or third party processors to produce parts for customers needing armor plate processed to highly demanding tolerances. The total estimated cost of the equipment is $2,100,000 to $3,000,000. He stated that it is estimated that the project will create three (3) to twelve (12) new, permanent full-time positions with an annual payroll of $93,000 to $374,400. The project will also maintain four (4) existing permanent full-time positions with a total annual payroll of $124,800. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Varner made a motion to adopt this Resolution. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. RESOLUTION NO. 3994-09 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA COMMONLY KNOWN AS A VACANT LOT BETWEEN 1016 AND 1032 WEST WASHINGTON STREET AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A (5) FIVE-YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR SOUTH BEND HERITAGE FOUNDATION, INCORPORATED WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Residentially Distressed Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as the vacant lot between 1016 and 1032 West Washington Street, South Bend, Indiana, and which is more particularly described as follows: A tract of land 120.78 feet, East and West, by 144.64 feet, North and South, located in the Northwest corner of Bank Out Lot Numbered Eighty- nine (89) on the second Plat of Out Lots to the Town, now City of South Bend, platted by the State Bank of Indiana. (In the process of being replatted into two equal lots – Lots #1 and #2 of Washington Street Minor Subdivision.) , and this property has Tax Key Number 18-3068-2608be designated as a Residentially Distressed Area under the provisions of Indiana Code 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrance’s and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for a residentially distressed area have been met. 12 REGULAR MEETINGOCTOBER 12, 2009 NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the petition for real property tax abatement and the Statement of Benefits form meet the requirements of Indiana Code 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds that the area meets one of the following conditions as formally established in Ordinance No. 9394-03, which was passed on February 10, 2003: A. The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or B. Any dwellings in the area are not permanently occupied and are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or C. Parcels of property in the area: i. have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or ii. are owned by a unit of local government; or D. A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or E. A significant number of dwelling units within the area are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or F. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the areas are owned by Indiana or the United States; or G. The area (plus any areas previously designated under this subsection) will not exceed ten percent (10%) of the total area within the Council’s jurisdiction. SECTION III. The Common Council also hereby determines and finds the following: A. That the description of the proposed redevelopment meets the applicable standards for such development. B. That the estimate of the value of the redevelopment is reasonable for projects of this nature; C. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment; and D. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code 6-1.1-12.1-3. E. The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability. F. The deduction will not be allowed unless the dwelling rehabilitation is completed within five (5) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION IV. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as a Residentially Distressed Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to five (5) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. 13 REGULAR MEETINGOCTOBER 12, 2009 SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of five (5) years, and further determines that the petition complies with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12.1 et seq. SECTION VI. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Ms. Dea Andrews, South Bend Heritage Foundation, Inc., 803 Lincoln Way West, South Bend, Indiana, made the presentation for this bill. Ms. Andrews advised that South Bend Heritage Foundation, Inc. intends to construct two new single-family homes on the vacant lot they currently own on West Washington Street. She stated that they are replatting the lot to permit the construction of the two homes. Ms. Andrews further advised that the homes will be approximately 1,700 square feet with three bedrooms. The average cost of the two homes will be approximately $180,000. The two homes are part of the first allocation of the Neighborhood Stimulus Program (NSP) funding. She stated that several single-family homes will be built in targeted areas to serve the homeowners with a household income of up to 120% of the Area Median Income using NSP funds. She noted that the sales prices of the two homes will be discounted in order to make them affordable to these potential customers. She stated that the total taxes to be abated for the two houses during the five (5) year abatement period are estimated at $16,827.76. Total taxes to be paid for the two houses during the five (5) year abatement period are estimated at $3,896.70. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Varner made a motion to adopt this Resolution. Councilmember Rouse seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. BILL NO. 09-67 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING AN ORDER OF THE ST. JOSEPH COUNTY AREA PLAN COMMISSION APPROVING A CERTAIN DECLARATORY RESOLUTION AND AN AMENDMENT TO THE NORTHWEST NEIGHBORHOOD DEVELOPMENT AREA DEVELOPMENT PLAN ADOPTED BY THE SOUTH BEND REDEVELOPMENT COMMISSION Councilmember Varner made a motion to consider the substitute version of this bill. Councilmember LaFountain seconded the motion which carried by a voice vote of eight (8) ayes. Additionally, Councilmember Varner made a motion to continue this bill until the October 26, 2009, meeting of the Council. Councilmember LaFountain seconded the motion which carried by a voice vote of eight (8) ayes. 14 REGULAR MEETINGOCTOBER 12, 2009 BILLS – FIRST READING BILL NO. 80-09 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, DELETING SECTIONS 6-26 THROUGH 6-26.4 OF CHAPTER 6, ARTICLE 6, OF THE SOUTH BEND MUNICIPAL CODE PERTAINING TO LOW VOLTAGE CONTRACTORS This bill had first reading. Councilmember Varner made a motion to refer this bill to the Public Works and Property Vacation Committee and set it for Public Hearing and Third Reading on October 26, 2009. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 81-09 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE NO. 9951-09 ENTITLED “AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF CERTAIN IMPROVEMENTS AND EXTENSIONS TO THE CITY’S SEWAGE WORKS, THE ISSUANCE AND SALE OF ADDITIONAL REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, THE ISSUANCE AND SALE OF BOND ANTICIPATION NOTES IN ANTICIPATION OF THE ISSUANCE AND SALE OF SUCH BONDS AND THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SUCH SEWAGE WORKS AND OTHER RELATED MATTERS” This bill had first reading. Councilmember Puzzello made a motion to refer this bill to the Utilities Committee and set it for Public Hearing and Third Reading on October 26, 2009. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 82-09 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE NO. 9672-06 ENTITLED “AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF CERTAIN IMPROVEMENTS AND EXTENSIONS TO THE CITY’S SEWAGE WORKS, THE ISSUANCE AND SALE OF 15 REGULAR MEETINGOCTOBER 12, 2009 ADDITIONAL REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, THE ISSUANCE AND SALE OF BOND ANTICIPATION NOTES IN ANTICIPATION OF THE ISSUANCE AND SALE OF SUCH BONDS AND THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SUCH SEWAGE WORKS AND OTHER RELATED MATTERS” This bill had first reading. Councilmember Rouse made a motion to refer this bill to the Utilities Committee and set it for Public Hearing and Third Reading on October 26, 2009. Councilmember White seconded the motion which carried by a voice vote of eight (8) ayes. UNFINISHED BUSINESS There was no unfinished business to come before the Council at this time. NEW BUSINESS Councilmember Henry Davis asked if the employees at the various City Recreation Centers are trained in CPR. Councilmember Karen White, Chairperson, Health and Public Safety Committee stated that she would schedule a committee meeting to address this concern. Councilmember Rouse advised that he is the Council’s representative on the St. Joseph County Solid Waste Board. He announced that Director Mark Mehall has resigned to take another job and that Randy Przybysz has been appointed the new Director and will start on October 22, 2009. PRIVILEGE OF THE FLOOR COMMENTS REGARDING VACANT AND ABANDONED HOMES IN THE RUM VILLAGE NEIGHBORHOOD Ms. Kay Blower, 1723 Kemble Avenue, South Bend, Indiana, advised that she lives in the Rum Village Neighborhood and is here tonight to request that the South Bend Common Council, Health and Public Safety Committee and the Residential Neighborhoods Committee revisit the Registration and Maintenance of Vacant and Abandoned Buildings, Ordinance No. 9802-07. She stated that many residents of the Rum Village Neighborhood are requesting that the City of South Bend, Code Enforcement enforce the Vacant and Abandoned Buildings Ordinance. She stated that she sees this ordinance as a positive means to address the issue of vacant and abandon buildings in the Rum Village Neighborhood. She stated that the residents fear that unless this ordinance is enforced the area will continue to decline. She stated that she lives in the 1700 block of Kemble Avenue. She stated that in the year 2000 there were two (2) vacant homes on Kemble from Indiana Avenue to Ewing Avenue. She stated that as of today there are eleven (11) homes vacant and two (2) that are boarded up. She stated that her street is a mixture of residential homes, rental units, the vacant Oliver School site, businesses and the National Guard Armory. She stated that the residents of Rum Village believe that the owners of the vacant and abandoned buildings should be held accountable for the physical condition of their buildings and property. She stated that she is sure that the Council if fully aware of the adverse affects these vacant homes have on property values, let alone discussing the health and safety issues. She stated that in 1997 residents Patti and Bob Huettl had their home appraised at $65,000 to $70,000, today, if they could sell, they would be fortunate to sell at $25,000 to $30,000. She stated that the residents of the Rum Village Neighborhood fear the continued decline in property values 16 REGULAR MEETINGOCTOBER 12, 2009 will continue to spiral downward if something is not done to stop the number of homes becoming vacant and then abandoned. She submitted photo copies of a number of troubled homes in the Rum Village Neighborhood. She also submitted a handout that the Rum Village Neighborhood Association developed to market their community. She stated that the residents are proud of their community and don’t want to see it decline any further. She stated that with the Council’s help to enforce the vacant and abandoned buildings Ordinance, together they can stop the decline of the neighborhood. COMMENTS REGARDING OVERGROWN VEGETATION IN THE RUM VILLAGE NEIGHBORHOOD Mr. Paul Duda, 2130 S. Taylor, South Bend, Indiana, advised that he would like the Council to revisit the “overgrown vegetation” section of the South Bend Municipal Code and raise the fines for homeowner’s violation this section of the code. He stated that he along with Council Member Oliver Davis toured the Rum Village Neighborhood and were shocked at how many yards were in violation. He stated that hitting the homeowner where it hurts in their pocketbooks maybe a way to get them to comply. COMMENTS REGARDING RE-EVALUATING THE APPLICATION FOR MASSAGE THERAPISTS Miaka L. Huss, 510 Coronation Gardens, South Bend, Indiana, advised that she is a licensed massage therapist in the State of Indiana. She stated that her husband is attending graduate school at the University of Notre Dame and that she wanted to open up a massage therapy business at the corner of Angela and U.S. 31 N. Ms. Huss stated that when she applied for her local business license through the Department of Administration and Finance she did not realize what a complicated process it was going to be. She asked the Council to revisit the ordinance and reconsider revising the extremely tedious application process that currently exists. She advised that massage therapists must be licensed through the State of Indiana and a one page simple application would be sufficient. Councilmember White advised that as Chairperson of the Health and Public Safety Committee this would fall under her jurisdiction and would schedule a meeting to discuss revising the massage therapy ordinance. ADJOURNMENT There being no further business to come before the President Derek D. Dieter adjourned the meeting at 8:01 p.m. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Derek D. Dieter, President 17