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HomeMy WebLinkAbout11-30-10 Common Council Meeting Minutes SPECIAL MEETING NOVEMBER 30, 2010 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 Tuesday, November 30, 2010 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 Al “Buddy” Kirsits At-Large Timothy Rouse At-Large Karen L. White At-Large OTHERS PRESENT: Kathleen Cekanski-Farrand Council Attorney John Voorde City Clerk Mary Beth Wisniewski Chief Deputy Janice I. Talboom Deputy City Clerk RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:02 p.m. Councilmember Oliver Davis made a motion to resolve into the Committee of the Whole. Councilmember Varner seconded the motion which carried by a voice vote of nine (9) 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. BILL NO. 73-10 COUNCIL PORTION ONLY BILL NO. 73-10 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $2,686,000 FROM COUNTY OPTION INCOME TAX (COIT) FUND #404 AND $520,000 FROM ECONOMIC DEVELOPMENT INCOME TAX (EDIT) FUND #408 FOR CAPITAL IMPROVEMENTS TO THE STANLEY COVELESKI REGIONAL BASEBALL STADIUM IN 2011 Councilmember Puzzello advised that the procedures governing the Committee of the Whole are contained in the Council brochures, with copies being made available to the nd public on the railing. Bill No. 73-10 received 2 reading and had its public hearing at last Monday’s regular Common Council meeting. The Bill was sent to the Common Council following a joint committee meeting of the PARCS Committee and the 1 SPECIAL MEETING NOVEMBER 30, 2010 Personnel and Finance Committee Meeting. It was sent without recommendation. It was continued in the Council portion. Therefore, there will be no public comment on that bill this evening. Upon a proper motion and vote of the Council, the Council Attorney was instructed to prepare her legal opinion on the issue of whether Council President Dieter must recuse himself from participation and voting on Bill Nos. 73-10 and 74-10. The Council Attorney filed her legal opinion yesterday, with copies of that opinion available next to the Council brochures. Additionally, the Chief Assistance City Attorney has drafted a separate legal opinion on these questions, with copies of that opinion also being made available next to the Council brochure. Each of these legal opinions has independently concluded that Council President Dieter does not have a substantial and material conflict of interest relative to Bill Nos., 73-10 and 74-10. The floor is now open to comment on Bill No. 73-10 by individual Council Members who must be recognized by the Chair before comment. Thereafter, a recommendation to the full Council by rd proper motion will be in order. It should also be noted that nay 3 reading on Bill No. 73-10 would be scheduled for January 10, 2011. Following action on Bill No. 73-10, I nd will then call upon City Clerk John Voorde to give 2 reading to Bill No. 74-10. A committee report will then be given, followed by the formal presentation. Thereafter, any one in the public wishing to speak in favor must give their name and address and limit their public comments to no more than 5 minutes. The total time for those wishing to speak in opposition shall be equal to the time the public portion of those speaking in favor or 30 minutes, which ever is greater. Each remonstrator must give his or her name and address and will be limited to 5 minutes each. The presentator will then be given a 5 minute rebuttal time to address questions raised by the public, followed by the Council portion and recommendation by property vote. Councilmember Oliver Davis asked Council Attorney Kathleen Cekanski-Farrand to give a brief synopsis of her opinion. Council Attorney Kathleen Cekanski-Farrand advised that the question is whether Council President Dieter has a conflict of interest which would required him to recuse himself from participating in the debate and vote of Bill Nos. 73-10 and 74-10, as alleged nd by 2 District Councilmember Henry Davis, Jr. She stated that based on a careful review st of the relevant facts and governing state and local laws and procedures 1 District Councilmember Derek D. Dieter, does not have a substantial and material conflict of interest relative to Bill Nos. 73-10 and 74-10, currently pending before the South Bend Common Council. Therefore, it is my legal opinion that Council President Dieter is not required to recuse himself from the debate and voting on each of these proposed ordinances. She noted that Chief Assistant City Attorney Aladean M. DeRose also gave her opinion that Councilmember Dieter’s part-time security employment with the Silver Hawks does not constitute of “conflict of interest” as defined by Indiana Law such as to require Councilmember Dieter to abstain on these votes. Councilmember Varner stated that at the last meeting of the Council he suggested a third party opinion. He stated that he contacted the Attorney General Office and relayed the facts as he understood them and received a call back from Mr. Kramer, who works in the Advisory Division of the Attorney General’s Office after he reviewed the facts of the opinions given his reply was that he would have a difficult time writing a contradictory opinion, although there is always a way to contradict anything he stated that the opinion was pretty much right on the money with regard to state law and relayed that information to the Council Attorney. Councilmember Varner stated that he felt that it was important to have a voice of third person who is not associated with the subject. Councilmember Vanrer stated that it is his opinion given by the Council Attorney and Chief Assistant City Attorney DeRose is correct. Councilmember Henry Davis, Jr., thanked the Council for working with this issue. He stated that as an elected official and servant to this community that it was important to him to have an objective look into what we were doing for anything in the City of South Bend when it comes to spending tax dollars. He thanked Council Attorney Kathleen Cekanski-Farrand for her fine work in this matter. He stated that it was called into question and still has a lot of issues with it, however, he is going to move forward on it. However, everything is up to interpretation. He stated that he had a brief conversation 2 SPECIAL MEETING NOVEMBER 30, 2010 before coming in this evening and remembered that the letter of the law and the spirit of the law are two different things. The spirit of the law is that there is no appearance of wrongdoing is there. As well as the letter of the law states that no more than 50% of your income. He stated that it was his objective that the appearance of some of the letters of law so again he stated that he was not very comfortable with it but let’s move forward. Councilmember Rouse made a motion to accept the opinion of Council Attorney Kathleen Cekanski-Farrand. Councilmember Oliver Davis seconded the motion. The motion carried by a voice vote of seven (7) ayes, one (1) nay (Councilmember Henry Davis, Jr.) and one (1) recuse (Councilmember Derek Dieter) Councilmember Henry Davis, Jr. asked when doing this regional baseball stadium plan did anyone consult with the building department or code enforcement. He also questioned whether the Council received the proper information as to what the actual criteria is for a Single A Team? He stated that he received the power point showing what they would like to do, drawings, mock-ups etc. Councilmember Henry Davis likened it to when Century Center came before the Council with their improvement projects for the boiler, restrooms, etc. th Mayor Stephen Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, advised that he does not believe that they have supplied specific language to the Council concerning the deficiencies in writing or other issues. He stated that what they brought to the Council is when they came before the Council concerning Century Century plans as the to renovation of Discovery Ballroom and put that in detail as to why the needs were there and that is what they brought to Council concerning the stadium as to what the state standards for restrooms are and the additional enhancements to the facility. Councilmember Henry Davis, Jr. reiterated that is why he is asking the question now as to what are the standards and who is requesting them. Additionally, he asked if private investment was sought. Mayor Luecke stated that they had not sought private investment, however, they have had discussions with several parties that were interested in the area. Councilmember Henry Davis, Jr., asked if the team owners had come forward and stated that they were willing to pitch in a certain percentage? Mayor Luecke stated that the teams owners have made numerous investments over the years in a variety of areas such as upgrades to the concession areas and other things at the stadium. He stated that they are not proposing them as part of this particular package but they know that there will be other opportunities for their private dollars to be invested in enhancing the fan experience. Mayor Luecke reiterated that as the proposal has been presented to Council there is no participation from the team. Councilmember Oliver Davis stated that Rev. Derrickson’s Church has some concerns with their parking during events at the stadium. He asked what kinds of measures are in place to help alleviate the parking concerns. Mayor Luecke apologized that he did not know the specifics of the discussions. The plan is to have the church remain at that site. Councilmember Oliver Davis asked Mr. Derrickson to elaborate on his concerns regarding parking around the church. Chris Derrickson, 1134 N. Cleveland Avenue, South Bend, Indiana, stated that his concern is that when all the demographics are done that the church is going to be boxed in. He stated that it is very difficult for members of the church to enter into the parking lot when events are being held at the stadium. Especially when they block off Monroe Street, he stated that he has to go all the way around to get into the church parking lot. 3 SPECIAL MEETING NOVEMBER 30, 2010 Mayor Luecke stated that they certainly want to be good neighbors to his historic church and support worship services and other services at the church, so they will be willing to work with the pastor to make sure that they have full access to their church. Councilmember Oliver Davis questioned whether or not sponsors have been solicited to contribute to this project. Mayor Luecke stated that they have not sought out private sponsorship, however, with an enhanced stadium there will be opportunities to do that. He stated that they are continuing to look to other revenue sources that might be viable should the Council decide not to enact or appropriate the full COIT or EDIT dollars and they have looked to shrink the project as well. Councilmember Oliver Davis questioned whether there were any private dollars that were invested in the stadium in Ft. Wayne. Mayor Luecke stated that he believes that there were some private dollars in the ancillary costs of the stadium, but was not aware if any were involved in the actual construction. Councilmember Dieter asked about the studies that were done around the stadium. th Bill Schalliol, Staff Member, Economic Development, 12 Floor County-City Building, South Bend, Indiana, asked if he was asking specifically about the neighborhood plan study or the facilities studies that were done. Councilmember Dieter stated a follow-up to the studies that were done regarding this project. Mr. Schalliol advised that when they started this project three years ago they engaged with the services of HOK Sports, who is a baseball, sports mega planning firm. They did three (3) studies for them, 1. a neighborhood master plan; 2. a facilities study; 3. A master plan specifically for the park. The facility plan that they did included what the standards were for minor league baseball; what the deficiencies were at the existing stadium. They took the 2009 minor league baseball report and integrated that into the planning aspects as it relates to the neighborhood plan and the neighborhood plan has really helped to be the driver as to the property acquisition in the area and used it to look at the neighborhood master plan as well. He stated that they shopped that out to private developers to see how it fits in with what market forces are and looked at it from that aspect. He stated that they did the same thing with the facilities plan as well. Mr. Schalliol stated that the final facilities plan was circulated to Council and made available about a year and half ago and can certainly be re-circulated. Richard Nussbaum. Attorney-at-Law, 210 S. Michigan, South Bend, Indiana, reiterated that he serves as general counsel of the Midwest League which is a league of fourteen (14) Minor League Class A teams of which South Bend is one of those teams. Since 1990 there has been an agreement between Minor League baseball and Major League baseball and one of the provisions in that agreement governs types of amenities that must be in place before different levels of stadiums. Class A Stadiums have to have certain amenities, Class AA, Class AAA and it goes up the ladder. For a Class A Stadium there are certain requirements as to how many seats you have, where the dugouts must be located, where the umpire room is located. But more important than those there are certain requirements as to lighting. Mr. Nussbaum is not familiar with how light is measured, maybe lumens that must be reflected throughout the course of the field. Each year a architectural firm is hired by Major League Baseball called Gould & Evans visits almost every Minor League Park and they make a report each year and that is the same report the Mr. Schalliol reflected on in the HOK report and described what the current condition current status of the stadium at Coveleski is versus what the standard are. He stated that while he was the City Attorney from 1988 to 1998, he was assigned the responsibility by then Mayor Kernan to look at this report and generally what he recalled is that there were always deficiencies and they tried to deal with those deficiencies as best they could, but one of the deficiencies that occurred over and over was the lighting 4 SPECIAL MEETING NOVEMBER 30, 2010 situation. And, although they were good lights they still were area of the ball field that did not meet those standards. Some of the time it could be remedy by going up the ladder and repositioning the bulbs and those kinds of things but if you go out and look at the stadium there is one section down the left field line that there isn’t a light standard and that was always a problem and he thinks that some of the repairs that are being done right now are directed toward that specific item. He noted that this is probably a longer description than what the Council was looking for but that is what some of the standards are what is presently existing at Coveleski Stadium. Councilmember White stated that at the last Council Committee Meetings she raised a number of questions regarding Bill 73-10. Those questions still remain for her and they are that the current economic conditions facing the community and citizens are challenging to say the least, and as a Council they enacted a local LOIT tax for public safety in light of reduced revenues to property tax reforms. The funds that are a part of Bill 73-10 are not the funds that were generated by that action but are still taxpayer dollars that are generated. She stated that the issue for her remains the same and the question that she has remains the same is that what is the best use of COIT and EDIT funds and what should be the priorities and how are those priorities established and how do they communicate those priorities to the citizens and to the council. She stated that she does believe those repairs are needed but as they begin to look at the best use of COIT and EDIT, she believes that they need to look at the number of projects that are before us and who is establishing those priorities. Councilmember Henry Davis, Jr. stated that he remembered the presentations, but not the reports, but when this was shopped around to potential developers what was the conversation what was the feedback? Mr. Schalliol stated that there were a couple of feedbacks, the first was and is the most obvious is that in the economic times that we are in now its tough for anybody to get overly excited about doing new development and with that said with the opportunity to have so much open land adjacent to this facility developers see the opportunity to get development to happen there. Mr. Schalliol advised that they had talked with some restaurateurs, some people that do mixed use residential/retail development. They see that there is potential there, but again with the times that we are in right now it is a little bit of a challenge. The upside is that the City has control of the land, the city has the land cleared, the city has the land cleaned, so when the time is right there will know what the project parameters are, then they will have the time to put out a quality RFP and put it out on the street and have the opportunity to get some positive feedback. He stated that he spoke with a developer today who is interested in the site and seeing what opportunities are there at the site for their firm. He stated that they have lots of interest and lots of inquiry but it is just moving forward to that next step. Councilmember Davis asked if that by the City owning and clearing so much of that land around the area does it seem like the City is in competition with private development to some degree. Mr. Schalliol advised that there is two ways to look at it. He stated that the City has removed the development hurdles to make things happen. He stated that he was involved in the development on the south side of town. He stated that one of the hurdles on the south side of town was that everything had to be acquired, demolished and then rebuilt. He stated that the there has been great development on the south side, and again with the City controlling cleared land adjacent to this asset he stated that this give the City tremendous opportunity to get things to happen when the time is right. Councilmember Varner stated that the question was raised to what the requirement standards were as far as the baseball league is concerned in regard to lighting being one of the issues, he stated that he would note that there probably is no requirement for splash pads, exterior concourses or buildings for retail sites. He questioned whether there were any deficiencies for the score board, he doubted it. 5 SPECIAL MEETING NOVEMBER 30, 2010 Mayor Luecke advised that he did not believe that there was a deficiency per Major League/Minor League Baseball standards related to the scoreboard. And, certainly not in relation to the other enhancements that they are proposing as well and that their presentation never indicated that those were deficiencies, but felt that it was an opportunity to spruce up a twenty-five (25) year old stadium and to bring it up to current public standards as well as minor league baseball standards so that it continues to be a place for families to enjoy themselves. Councilmember Varner stated that they can bring it up to standards without some of the other things. He stated that he believes that they have collectively made the effort to select the specifics and the necessities and then it would be good to go forward with that Councilmember Varner stated that it was referenced to the Ft. Wayne stadium project. He noted that project had a major hotel chain involved as well as private dollars and dollars invested by the team along with a bond issue, he didn’t know how much money was involved with that, but there were some guaranteed revenues. He stated that some of the citizens in South Bend would call some of the proposed enhancements extravagant during these economic times. He stated that if everyone expects grand things to happen, there needs to be some willingness to more dollars collectively rather than just the city but he wanted to make clear some things are necessary and what most people would agree to and probably consider. Councilmember White asked that the project that is before the Council tonight what was the process that went through in identifying that these would be used for this project. Mayor Luecke stated that as they looked at the proposals that they wanted to bring before the Council for funding they had looked at a variety of funding sources. First, the use of the Recovery Zone Bonds that will be paid back by the Professional Sports Development dollars and that is in the bill that will be considered next by the Council. Then there were some available downtown TIF dollars that they could commit to the project. And as they looked at the remaining amount of approximately 3 million dollars, he felt it appropriate to use some of those dollars that they had been reserving over the past several years for capital expenditures in the COIT and EDIT funds. He stated that these are dollars that they have been collecting and receiving. He stated that if the Council will recall there had been some smaller capital budgets than they had historically had because they were reserving those dollars in the event that they would need them for operating expenditures for the City of South Bend. Mayor Luecke stated that it has been this administration that those dollars should generally not be used for operating but for capital investment in infrastructure and facilities that they own and economic development initiatives because those are critical dollars to have to keep our facilities up to snuff and to be able to spur additional private investment in the community. So he felt that the 30% of the funding for this project coming from COIT and EDIT dollars was a reasonable distribution of resources as they brought this forward. Again, they felt that the full package was worth funding by the City as they move forward. Councilmember Oliver Davis asked the Mayor to elaborate on the issue of using local labor and workers for the project. Mayor Luecke stated that one of the considerations would be to do a project labor agreement on construction work at the Cove in particular because of the very tight time frame to accomplish the work within that time frame. That would also add for goals to use local labor and local purchasing as they do that. Councilmember Rouse stated that he supports the project except for the use of COIT and EDIT. He stated that he likes the idea of sustaining the Cove. But the Professional Sport Development Fund expires in 2027 and the money that they would be using here to support the bonds, hopefully the bonds would be paid off by the expiration, but what is the City going to do going forward to sustain Coveleski? Councilmember Rouse noted that question is resonating throughout the Council of putting that debt on future generations and how they are going to pay for it. He stated that the 17 years will be here before we know it, and is suggesting that they need that on the radar screen. How is the City going to pay for the Cove going forward and maintain it, because he feels that there 6 SPECIAL MEETING NOVEMBER 30, 2010 is not going to be a lot of money from the City to be able to sustain the Cove without a change in the paradigm of how to support the stadium. Mayor Luecke stated that the Professional Sports Development dollars will be used to pay off the bond. And in Bill 74-10, he feels there is sufficient dollars to pay off that bond issue. He stated that as he understands the question what happens beyond that in twenty-five years when the City needs to reinvest again. Councilmember Rouse stated that is the problem. The City doesn’t invest in increments then we are socked with an investment of this large amount. Mayor Luecke disagreed with Councilmember Rouse and stated that the City has invested in the stadium on an annual basis doing maintenance. The stadium is not falling down, there aren’t any structural deficiencies with the stadium. Councilmember Rouse stated then they don’t have to pass anything, the Cove is in good shape. Mayor Luecke stated should the city not have invested in Discovery Ballroom, because the building was structurally sound and there was space inside to hold events, clearly it has enhanced it’s ability to do additional business. The proposal that they are suggesting in an enhancement to the stadium. Councilmember Rouse stated that it is the timing. This is the toughest economic times that this country has ever faced in decades. He reiterated that he likes the project but is concerned about spending this kinds of money during these tough economic times. He stated that he gets the feeling that nobody wants to talk about how they are going to pay for the Cove in the future only right now. He stated that he believes it is necessary to look at it going forward. Mayor Luecke stated that they have funded ongoing importance maintenance to the building and will continue to do that beyond the special investment that they are asking for right now. Mayor Luecke agreed that we are all in tough economic times but there are positives for that as well as they put people in the construction trades to do that work on the stadium. You get better prices for your money then when everybody is busy and you don’t get as many bids on the project and put into place the opportunity to respond as the economy does begin growing and he thinks that we are seeing signs of that not only nationally but in South Bend. So that when people are ready to make private investment they can see that there are places ready and willing to support that.. He recalled when the city cleared a portion of Monroe Park for light industrial and at the time that was done it was a significant investment taking down buildings, clearing the land and putting in infrastructure it was bad economic times. He stated that interest rates were at 14,14, 15, 16, 17 percent. But because that investment had been made and when the economy turned around and companies were ready to build new buildings we were ready for the buildings to be built and expansions to be made. So there can be a logic to counter cyclical investment to: A. Get the best value for your dollars. B. Be prepared for private investment as the economy rebounds. Councilmember Rouse stated that he hears the Mayor saying in the future we are not going to be totally reliant on public funds to maintain and sustain the Cove. Mayor Luecke stated that was accurate and that they would be looking for private support as well. Councilmember Puzzello asked if the Mayor could explain the new taxes for Public Safety and County Option Income tax. Mayor Luecke stated that the new taxes that were adopted by the South Bend Common Council and the St. Joseph County Council were three taxes. First was a local option income tax (LOIT) and the proceeds from that goes directly to property tax relief for all classes of property throughout St. Joseph County. The second component was Public 7 SPECIAL MEETING NOVEMBER 30, 2010 Safety Local Income Tax and that is generating somewhere between 5 and 6 million dollars for the City of South Bend, where they are using to fund firefighters and police officers and is allowing the city to fully staff both departments rather than if they did not have access to those funds it would have forced the city to reduce staff in both the fire department and police department. Those dollars are being used for exactly what they are supposed to be used. The Mayor noted that it is a county wide tax and is distributed county wide to the various departments of government. The third component was again an additional two-tenths of a percent Economic Development Income Tax which he proposed to the Council should be used for capital projects and investments in city facilities and infrastructure and investment in Economic Development initiatives as they move forward rather than for operating expenses. He noted that they reduced their operating costs and then with the benefit of the public safety income tax it really reached a streamline. In terms of the County Option Income Tax (COIT), those dollars are collected on a county wide basis and are distributed on a county wide basis. So towns receive a portion of that, St. Joseph County receives a portion of that and the City of South Bend receives a portion of that. Residents that live outside of South Bend and Mishawaka are paying a tax but also receive a portion of that tax that is collected not just the City’s. Those dollars being paid by county residents for the most part are going to county government and Mishawaka to Mishawaka. He stated that it’s not a one for one necessarily because of the distribution formulas set by the State of Indiana but those dollars are returned to those units of government that represent them. Councilmember Oliver Davis wanted to know the percentage of upkeep at the Cove over the past 25 years that has been paid for using private dollars. Mayor Luecke stated that over the lifetime of the Cove to date the private dollars that have been used have primarily been from the team. They have been from rent for the use of the facility. They have also made some contributions to the capital fund, a ticket surcharge when the attendance reaches a certain level. The team has invested in upgrades to the concession stands and equipment that is used at the cove. So that is the primary source of private dollars. He stated that he is not aware of the City approaching local businesses in terms of sponsorship. Joe Kernan, President, Silverhawks, 114 E. Pokagon, South Bend, Indiana, stated that since the team has been here they have rented/leased the facility. He noted that they are the tenant. He stated four years ago the team was threatening or had a deal to move the franchise from South Bend. The prospect was that the team was going to be gone, moved to Southern Illinois. He stated that would have left South Bend with one of the nicest high school fields in the Country. He stated that South Bend would have lost professional baseball in the community, however that deal fell through. It fell through because of the ownership of other teams in the league, who make up the Board of Directors for the Midwest League and they believed that South Bend had been a good franchise, geographically located in the middle of the league and in 1988 the prototype of what a new minor league facility was looking like. People were coming from all over the country to South Bend to look at the Cove because of the quality of the facility. They wanted to keep the team in South Bend. When that happened it gave the opportunity to be able to pull together a group of mostly local investor’s but not all to pull together the money that was necessary to buy the team. So when you talk about investment’s that have been made in the team and the stadium the fact is that the local investors group has invested in excess of 7 million dollars in keeping the franchise here. The local investors group is made up of approximately 50 different people, mostly from within the community. He stated that they pay their rent which is mostly used for maintenance and upkeep of the stadium and as the Mayor had stated made additional contributions which he referred to as small capital contributions relative to the concessions stands and things of that concern. In terms of soliciting other business in the community that’s what they do. They are actively seeking private business since the end of the season because they want them to come to the Cove. To put signs on the outfield wall, to sponsor the picnic area, they want them to bring their workforce out to have a picnic, we want them to rent the upperdeck, rent suites, and that has been ongoing for 25 years. That has been critical to the team being fiscally and financial stable. To get those revenues and to assist them in paying the expenses they have over the course of a season. That is what goes on in 8 SPECIAL MEETING NOVEMBER 30, 2010 ballparks all across America. He stated that he doesn’t know of any minor league ball parks that are not owned by the community in which it is located. The park has been built at public expense. The team is then the tenant of the facility just as we are here. He stated that they are not doing anything any differently than other communities are, but thinks with some of the new leadership with the team, the staff of the Silverhawks that is put together are in a better position now to be able to go out and get private businesses, the private sector involved in the ball park. It’s an important partnership that they continue to pursue. Councilmember Oliver Davis asked if there is a dollar goal. Mr. Kernan replied that their goal is to sell as much sponsorship, advertising, and naming opportunities as they can. He stated that since the 4 seasons that have passed since closing on the deal to buy the team they have not made any money. No investor has made any money on their investment in the last 4 years, not one. He stated so once again they are in a fight to try and do everything that they can to make sure that the team is financially viable. He stated that it’ a private business that rents a public facility and it’s not unlike what happens in communities all across America. He stated that the City has done a very good job over the 25 years without the help from the Professional Sports Development Fund, but the fact is that the Cove was paid off in 1998, the bonds were paid off, it’s an existing facility in the community and is one that if we were going to build it today would cost between 35 to 40 million dollars to build that ball park. What they are asking is that the 10.2 million dollars be reinvested at this time to fix, repair and replace things as well as make some enhancements and no not everything that they are proposing have to do with Major/Minor League Standards. The splash pad was an idea that they had in order to bring more people into the park, not just for 70 Silverhawks game a year but for other events and other activities that they are going to have. It is their desire to open the park up when they are not using it, so that people can go around in a 360º concourse. So they can go for a walk around the ball park, in the morning, after work or whenever they want. People can walk to the park and sit in the stands and eat their lunches. He stated that it is a city park and think that there should be some playground equipment in the park as well and not just used for Silverhawks games. It is to bring people to the park to enjoy and use it. He stated that he doesn’t know of any park that pays for itself, its not an easy proposition to have any park be able to pay all of its bills or break even. That is why there is a Park Department in order to perform those services and typically use tax dollars in order to do that. He stated that its this opportunity that we have is one that has been talked about for the first time the downtown will be physically connected to the ball park. It was impossible to do that before when the Gates Building was there. It was impossible to do that because of some of the buildings that were there and the shape that they were in. The City is now assembling land in order to create enough critical mass that investments can be made, not sure it that will be tomorrow but, if we were still sitting there with all those buildings surrounding the ballpark none of those things would happen. It would be impossible for them to happen. That kind of development is a public/private development. The public sector has to make those kinds of investments in order to trigger and make it feasible for private business to make those kinds of investments. He stated that he lived in Indianapolis for eight years and it used to be a joke. Downtown Indianapolis was a place that nobody wanted to go to. He stated that it was perceived as being dangerous and at 5:00 when the workforce went home they shut the lights off. It was not much of a place to live. The City of Indianapolis invested in Victory Field which is their AAA Ballpark, which was build about 10 years after the Cove was, and if you go into the ballpark it looks a lot like the Cove with City funds. Conseco Field House was built with City funds; Lucas Oil Stadium built with City funds, the Convention Center right next to Victory Field was built with City Funds and the list goes on and on with investments made from public funds and today they are the envy of much larger and more well know communities because of the kinds of things that have been done and created. Indianapolis is a pedestrian City, it’s easy to get around, and things are close to each other. He stated that we can take a page out of that book, we know that we are not of that scale, but we as a community, we as a city are not going to make investments in these kinds of treasures that we have and create the opportunity to make them attractive to other people, then nothing is going to happen. He reiterated what Councilmember Rouse stated that they 9 SPECIAL MEETING NOVEMBER 30, 2010 have to be looking down the road and want this facility to have a minor league team, an affiliated minor league team not just for us or him or the investors that got involved in this an most of them got involved because they didn’t want to see the team leave South Bend. They didn’t get involved because they knew they were going to make a buck by making an investment in this team. Looking ahead this isn’t just about us it’s about who’s going to be here when we are gone. We want a community that is attractive that meets all of the standards (not just baseball standards) but it’s community standards. How do we elevate ourselves and how to think about the downtown being the face of the community and what do they need to do and there have been great things that have been done, things that are underway and one of them is the Synagogue and that it will be used as the team store. It will be the only retail facility within blocks of there but what they hope will happen by saving that 110 old facility that has a great history is to stimulate other retail activity to take place. That it is okay to have a retail store there. It’s okay to have a restaurant, it’s okay to live in that part of the community, it’s okay to have your business there like Wightman Pietre right across the street from the ball park, they invested in that building and were the first guys to really show up their because they believe in the community and they as well as all of us hope that they will see development take place there. Mr. Kernan stated that this is a long answer to Councilmember Oliver Davis’ question, but realizes that we are at a crossroads and know that these are difficult times and understand that, but the Mayor hit it right on the head when he said you get more for your dollar, you are putting people to work that live here in the community and are doing things that will make a difference in how we go forward from here. Councilmember Rouse reminded Governor Kernan of his report Keranan/Shephard and a report from William Hojanacki, stating that the City of South Bend cannot carry the whole community. He reiterated what he stated earlier that going forward the City is going to have to find more innovative ways to sustain the Cove. He stated that it is a beautiful facility and it does add to the quality of life, but Portage Township cannot carry it all. He stated that he is not saying to get rid of all the parks, however, there is going to have to be other ways to find funds to sustain those facilities without using tax dollars. He stated that most people who use the park don’t live within the City and that is great, however, they are not paying for this wonderful facility either. Councilmember Rouse referred to a letter that he received from Claey’s Candy a company directly across the street from the Cove which states that they believe in maintaining the facility but don’t do all the other extravagant things. Councilmember Rouse stated that Claey’s is a small business in the community that was founded in 1919 and is still here today. Councilmember Rouse stated that he will not be voting in favor of using COIT and EDIT funds but will support the other funding to make sure that we have a facility that is maintained. Mr. Kernan stated that the plan that was put together involved the Department of Public Works, Department of Economic Development, the Controller’s Office and the Park Department. He stated that they were there at the table to talk about in an advisory capacity, and reiterated that it’s not the Silverhawks Ball Park, it’s the communities ballpark and the list of things that were proposed were things that the Mayor put forward and believed that they were the right things to do to make a difference. When you talk about amenities and when you go into any other ball park that has been built in the last 15 years there is a 360º concourse that goes around it and if you want to connect the downtown together physically it has to be done at centerfield and you can’t just bring people in and have them cut across the diamond in order for them to get to their seats, you need a concourse to take you all around and the design is not unlike what Victory Field looks like. Victory Field in Indianapolis has railroad tracks going down the right field line just like we do. It sits right in the same part of downtown, it’s got White River Park and we have the neighborhood. He stated that parking is a huge issue and we want people to be able to park downtown because we want there to be more activity in the downtown area. He stated that it is the Council’s call but if we are unable to make the investments that have been proposed we are going to sell ourselves short. He stated that the Mayor made it very clear that the County Option Income Tax Dollars are dedicated monies and are going into public safety fund and dedicated for that purpose. It is not going to find it’s way into what is being proposed here, it’s not going to come out of the 10 SPECIAL MEETING NOVEMBER 30, 2010 money that is set aside for property tax relief. He stated that is an area where there is a great deal of confusion about where that money is coming from. He stated that the Mayor made a promise and then said that he doesn’t have enough money and now he wants to put money into the cove, well the fact is that they are different pots of money. He is not taking the money that is dedicated to public safety, can’t do it! It’s dedicated for that purpose only and is a dedicated fund and he thinks that a lot of people don’t understand that. He stated that the money that is being proposed has been kept in reserve and because of being fiscally responsible not just by the administration but also by the Council that we now have cash balances and get the sense when we hear some people talk about that they don’t want the city to have any cash balances and have the City ride it out and suck it up and you can’t do that. You can’t do it responsibly. Any organization that is not fiscally viable is an organization that does not have any choices. That’s what we are talking about here and make some choices that that will make a difference. Councilmember LaFountain advised that the issue is funding and where that funding should come from. He stated that there needs to be some prioritizing of what needs to be done at the Cove and what they would like to have done at the Cove. He likened it to buying something on sale at a department store, just because it’s on sale doesn’t always mean it’s a great deal. He agreed that some renovations are needed at the Cove, the problem is using COIT and EDIT funds to do them. Councilmember Puzzello stated that she was on the Council when the Cove was voted on to be built. She stated that every time she attends a game everyone there is having a wonderful time. She advised that she was talking with a St. Mary’s student who is originally from Gary, Indiana. She stated that they have a baseball team and stadium in Gary and how it has brought the entire City together. Councilmember Puzzello stated that she believes the improvement proposed tonight are much needed after twenty-five years and will be a great addition to the neighborhood. She noted that the Kroc Center is being built near the Cove and it too will be a great addition for the community. She stated that she will be voting in favor of this bill. Councilmember Dieter stated that there is an advantage to having an affiliated Minor League Baseball Team. He stated that the Cove is not just a baseball stadium, it is an entertainment facility. The idea is to get people there, entertain them, get them to spend money and come back. He stated that the fun zone, splash pad and picnic areas provide other entertainment for families that have children of various ages and to have something for the whole family to do. A venue like the Cove needs to be upgraded and keep up with the standards of other ball parks. He stated that he is in favor of this bill and that South Bends needs to keep about the curve. Councilmember Dieter stated that there are not a lot of positive things in South Bend, but the Cove is definitely one that is positive. Councilmember Kirsits advised that when the Cove was originally proposed he didn’t know if it would be a good idea. However, after almost 25 years and seeing the positive influence that it has had on the community and what a wonderful anchor it has become for the downtown area he is in favor of this upgrade and renovation. He reiterated that it is a City of South Bend Park facility that needs to be kept up and done right. He stated that he could see the potential area becoming a Mini-Wrigleyville. He noted that times are tough, however, the city has sandbagged some funds with the help of the Council. The proposed funding sources are TIF, PSDF, EDIT, COIT, and have been spread out very well, and noted that they are not passing a new tax. He stated that he believed the payoff will be good and these proposed enhancements will be great for the City. Councilmember Henry Davis, Jr., stated that he has listened to comments tonight and hear references to the “west side” and “people over there” and takes offense to those references. He stated that it sounds like to him that we are talking about another city. He stated that area is just as much a part of the downtown as Eddy Street Commons is and so on. So when we are talking about an investment to the west side it is an investment to the City of South Bend. But the investments that we are talking about are all non-profit investments. We are talking about the Kroc Center that is going to turn the Martin Luther King Jr., Center and Charles Black Center into white elephants because there is only so much money that is given in certain areas. The we are talking about investing into the 11 SPECIAL MEETING NOVEMBER 30, 2010 Cove which the City cannot tax itself. He questioned that all these projects are non- profits and questions what jobs are going to be created by these not-for-profit organizations. What tax base are we talking about what new monies are we generating out of these new ventures. He stated that we are not generating anything and if we are generating anything it’s a few jobs at best. And then we are talking about Coveleski, seasonal! Maybe the security force will be expanded because of the amount of park that we are going to have but outside of that what jobs? He stated that we can’t keep doing this and he takes a lot of offense because he works very hard with his constituents to make sure that they are aware of what is going on so that they can continue to vote for the Democratic Party of St. Joe County, but then we say oh well that is just good enough for you. What jobs are we talking about? WSBT left that was tax base. We moved Gates out of this particular area and we are still talking about what jobs? What tax base? He stated that he takes a lot of offense and maybe some little kids from the Housing Authority could come over and play well my God, well that’s just great. He stated that we have to engage our residents of the City of South Bend into private investment, investment that we just talked about, true investment which causes tax dollars and causes real sustainable jobs. He noted that construction jobs are not always sustainable, they are great, they are good, but people don’t build on the same project 24/7, 365 days a year. It comes and it goes. This is why there is a local issue going on right now with getting people to work here locally. However, we keep talking about jobs, what jobs are we talking about. He stated that he will be on the Council 3 years and is still at a loss and believes that the community has been at a loss. So when people are talking about the west side let’s talk about the whole City of South Bend and let’s talk about how the City of South Bend is working to do investments such as the one right here. Councilmember Dieter made a motion to send this bill to the full Council with a favorable recommendation and set for Third Reading on January 10, 2011. Councilmember Kirsits seconded the motion. The motion was defeated by a roll call vote of three (3) ayes (Councilmember’s Puzzello, Kirsits, Dieter) and six (6) nays (Councilmember Henry Davis, Jr., LaFountain, Varner, Oliver Davis, Rouse, White) PUBLIC HEARING BILL NO. 74-10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING OF THE ISSUANCE OF REDEVELOPMENT DISTRICT REVENUE BONDS EXPECTED TO BE ISSUED FOR AND ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT AND PLEDGING CERTAIN REVENUES FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS (STANLEY COVELESKI STADIUM) Councilmember LaFoutain, Chairperson, Personnel and Finance Committee reported that this committee held a public hearing this afternoon on this bill and send it to the full Council with no recommendation. th Mayor Stephen Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mayor Luecke thanked the Council for holding this special meeting. He stated that this bill authorizes the issuance and the appropriation to pay off those bonds. Because there is a time frame these bonds need to be sold before the end of the year. It is critical for the placement of those bonds to get the best interest rate so that they can make this as affordable as possible. He stated that he is not going to go into great detail with the improvements because the Council is familiar with the proposed renovations. The Cove is 25 years old, it needs freshing and improvements to meet the standard of Professional Baseball. The improvements that they are proposing to upgrade the facility to be similar with competing stadiums around the country. The Council has heard that South Bend has 12 SPECIAL MEETING NOVEMBER 30, 2010 dropped in it’s placement due to attendance in games, some of that has been a decrease in attendance here but has been an increase in some other facilities as communities have built and upgrades their facilities. The improvements will also make the facility more useful for community events and see the Cove as a park in the community that can be used as a facility other than when the 70 Silverhawks games are played there. This investment compliments existing downtown development plans and provides an opportunity to stimulate private investment around the cove and compliments investment that they are making in Ignition Park just a few blocks to the South and well as the great investment of the Kroc Center just west of the stadium. He stated that he believes this is an appropriate investment and what they are asking in this bill is to approve the issuance of 5 million dollars in Recovery Act Bonds that would be repaid by Professional Sports Development Revenues. These revenues are a collection of sales taxes, income taxes, that otherwise would go to the State. The City of South Bend was given the authority to create the Professional Sports Development District because we have a professional team that was the key criteria in the State Legislation that allowed capture of these revenues that would have otherwise gone to the State of Indiana. He reiterated that he feels it is an appropriate source of revenue to pay off these bonds. To reinvest in the facility that helps to generate these dollars and makes those improvements. He asked the Council for their favorable consideration. Mayor Luecke noted that the Professional Sports Development Area has a sunset provision. The sunset provision is 2027 when the City will stop collecting revenues from the Professional Sports Development Area and actually there is an early time frame that those dollars are State Revenue Sources will stop being collected and stated that is 2018, however, they have worked with their bond advisor and will look at a shorter term of the bond that would make a final payment on the bond in 2019 and believe that they have sufficient revenues with some reserves that they have on hand in the fund already and then with revenue stream over that period of time to be able to make those payments and still have some reserves left in that fund that could be used for either additional work at the Cove or other facilities. Mayor Luecke thanked the Council again and asked for their favorable consideration. Councilmember Rouse questioned why that the 5 million dollars is not mentioned in the title of the Ordinance. Mayor Luecke advised that it is a bond authorized by the Recovery Act that allows municipalities to sell taxable bonds and there is a rebate on the interest that the City pays a 40-45 percent rebate that it pays on the interest so that in affect reduces the bonds costs. Councilmember Rouse stated that it is not a Redevelopment District Revenue Bond, it a Federal Tax Exempt Stimulus Bond. th Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, advised that technically it is a Redevelopment Authority Revenue Bond. That is the legal description of it, that’s how it will be marketed, that’s how it will be issued. The previous mention as the Mayor stated is that it is a recovery zone bond that has a tax rebate from the Federal Government and that’s how it is defined. Councilmember Rouse stated that in Mr. Zientara’s letter that was not a correct description. Mr. Zientara stated that he had made an error. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. The following individuals spoke in favor of this bill: Joe Kernan, 114 E. Pokagon, South Bend, Indiana, stated that the Silverhawks do have an economic impact in South Bend. There are jobs that are created and at the end of the season they had ended up with approximately 250 people on the payroll. He stated that yes most of those jobs are seasonal but the people that have those jobs need those jobs and they are important jobs. They supplement their incomes and help support their 13 SPECIAL MEETING NOVEMBER 30, 2010 families. He stated that it is not something that he is going to apologize for. He stated that from a tax impact since the Professional Sports Development Fund has been in place more than 4 million dollars has stayed here in South Bend and has been invested in Downtown South Bend and that there is a balance in that fund as the Mayor has stated. It will generate additional millions of dollars in the years to come. He reiterated that he believes this is an appropriate use of those funds to pay off this stimulus bond. He respectfully requested the Council’s favorable consideration. Shannon Brewster, 930 Riverside, South Bend, Indiana, stated that she is speaking tonight as a parent of a 16, 15 and 12 year old. She stated that she and her husband have taken their children to other minor league baseball parks all over the country, California, Washington State, Texas, Florida, just to mention a few. She stated that they have always had a wonderful time and it is one of the most affordable things that can be done as family, it’s wholesome, it’s outside and as much fun as they have at the Cove, it just doesn’t compare anymore to other facilities across the country. It is tired and in need of renovation. She stated she can take her whole family to the Cove for $20.00, when they go to the movies it’s $60.00. She stated that the proposed plan needs to be looked at as a whole package, not just pick and choose what needs to be done. She stated that the Cove is a safe place for families and their children to go. She stated that the proposed renovations will bring other people to the ball park. She noted that she commends the planned used for the Synagogue and preserving it’s great history. She urged the Council’s favorable consideration. Perley Provost, 613 Finch Drive, South Bend, Indiana, spoke in favor of this bill. He stated that he brings a different prospective on this issue. He stated that he is a parent of a child who plays in travel league baseball. He stated that after traveling across the country to see all the different ball parks he stated that South Bend does not have the facilities to be able to handle the travel league. He stated that they have to use Notre Dame to be able to host the games. He stated that the improvements that are being proposed to the stadium make perfect sense to him because he has seen the other parks with their entrances in center field with 360º concourses to make the facility more open. He noted that Ft. Wayne’s facility cost 30 million dollars. He noted that after years of dwindling attendance, no parking, and a run down facility, they moved it from Coliseum Blvd. to Downtown Ft. Wayne. The proposed amendments for the Cove make sense and will stimulate other private investment to move into the area. He stated that Ft. Wayne took a lot of heat from the residents there just like what is being said here tonight. However, public scrutiny is just that. He urged the Council’s favorable consideration and noted that this is South Bend’s hope for the future. Chuck Vider, 15141 Clifton Drive, Granger, Indiana, stated that none of us like to pay taxes. But when you have to pay taxes one of the most valuable aspects of that is investing those dollars wisely. We have money to invest and have an opportunity to invest it wisely. He stated that the Council is considered as leader’s of our community. He noted that he believes that it is incumbent of any leader’s of the community to think with a great deal of vision. He noted that in the hour and half that he has sat listening tonight he heard the word vision used just one time. He stated that he found that distressing. He urged the Council to step back and look at how these PSDF dollars should be reinvested in the Community. Mark Haley, 51535 Steeplechase, Drive, Granger, Indiana, advised that the last time he was here before the Council was to accept a Resolution congratulating the Silverhawks on their Championship since then things have gone a little south. Mr. Haley stated that he is representing and employed and paid by the Arizona Diamondbacks Major League Baseball Team. Mr. Haley noted that it is his job to get his players from the Minor League to the Major League. He stated that he travels with his ballplayers all over the country and see’s what’s happening at the other ball fields. He stated that some of those facilities are what the Cove used to be. He stated that people ask him what happened to th the facility? He stated that out of the 16 teams South Bend is in 14 place. Mr. Haley stated that the proposed improvements are much needed. The field does not drain properly and therefore he cannot get his players on the field to do their jobs. He stated that it is costing South Bend their reputation, his reputation and his players’ reputation. 14 SPECIAL MEETING NOVEMBER 30, 2010 We have lost sight of where we want to be. He stated that we have heard tonight about vision and he talks about that vision with his players making it to the Major Leagues. Mr. Haley stated that he has a vision in the Council to do the right thing step up to the plate and do the right thing. Rob Kuhn, 51415 Stoneybrook Dr. Granger, Indiana, stated that he is here today to speak for the youth of today and future. He stated that he has been involved with Harris Twp. Baseball and Softball in Granger, Indiana for eleven (11) years. He stated that he has managed the team and spent three years on the Executive Board and the past two years as the President. One of the benefits that the Silverhawks have offered to their league is called a Night at the Cove. He stated that this a valuable fund raiser for the league and gives the children the opportunity to enjoy attending a night of baseball right here in South Bend. He doubted than anyone would disagree that organized sports is a great tool to teach our youth the humility of losing and the graciousness of winning. They also learn the responsibility of learning to interact with others while learning both team and individual play. There is no doubt that the lessons learned from an organized sport will aid them in their future. Time spent at the Coveleski Stadium watching great baseball honors one of the great past times that they have had and gives time spent with family and friends. He stated that he has spent time at the Cove with his two boys and wife and they treasure that time together. He stated that they were a part of the adopt a family program which allows players time to spend with families allowing the players to explain the greatness of the game and the effort it takes to make it to their level. He stated that it was a treat for his boys to be around the players. Mr. Kuhn advised how does this tie into the funding for the Cove, he stated that if current trends continue kids will not learn how to interact with their peers or communicate with each other. He stated that he fears we will lose our youth the impersonal electronic games and continue the trend of obesity. He stated that he also fears of losing a game that promotes exercise, team and individual play. We need to continue to invest in the Park system in South Bend like the Cove and encourage parents to spend time there. Many of the improvements will aid in attracting youth there. Dick Nussbaum, 210 S. Michigan Street, South Bend, Indiana, complemented Council Attorney Kathleen Cekanski-Farrand for her first-class job of legal work in this conflict question. He stated that he spent 10 years as the ethic officer for the City of South Bend as the City Attorney and was also the ethic’s officer for the Lt. Governor’s Office for about six years. He stated that he feels like he know a little something about ethic’s law within the State of Indiana. A valid question was raised there was some ideas as to how that should be handled. He stated that he feels that the Council got the best answer and the best piece of work that could be asked from the Council Attorney. Mr. Nussbaum stated that Mark Haley, has been the manager for the Silverhawks for the past five years and that is something that is unheard of in this business. Usually what the managers do is they try to move up the ladder and try get to the Major Leagues too. He stated that Mark Haley has had that opportunity as well, but has turned it down so he can raise his family here in South Bend. So when he gets a little emotional, he puts his actions where his mouth is. He has made a commitment here in South Bend and should be thanked for that. He stated that there has been some discussion about Ft. Wayne. He stated this past year in 2010 South Bend had drawn approximately 120,000 fans. Ft. Wayne drew about 380,000 fans and for his money, South Bend is a much better sports town then Ft. Wayne. But they have a first class facility in Ft. Wayne and is really the only reason in his mind why they have drawn 380,000 and we have drawn 120,000. About five years ago the City of Ft. Wayne made a decision. They had a facility that was out on Coliseum Blvd. and someone mentioned at the last meeting: location, location, location, was important, because he was talking about that facility on Coliseum Blvd., and the City of Ft. Wayne with a Republican City Council made a decision that that facility was not going to make it. And so, they decided that that facility that was built in 1994 to abandoned that facility and authorized construction on a new facility in 2007 and opened in 2008. It is really one of the great facilities in Minor League Baseball right now. Mr. Nussbaum stated that he has been to all of the minor league parks in the Midwest and some others as well. Mr. Nussbaum stated that the improvements that are being asked for the Cove are not going to bring the park to the level of Ft. Wayne, that’s just not going to happen. He stated that the list of amenities being asked for will bring the field to the point that Mark Haley 15 SPECIAL MEETING NOVEMBER 30, 2010 won’t have to worry about his players nor will we have to worry about the Arizona Diamondbacks coming in and saying that they aren’t going to sign up with us anymore. It’s going to bring the field up to the level that it should be. Some of the other amenities are going to reach what Councilmember Rouse was concerned with and how are we going to sustain the Cove in ten to fifteen years when the PSDF money runs out. He stated that what they are going to do is raise income at the stadium that is going to allow it to continue. The only way to do that is go get more fans. That is how we are going to get to that decision and make that decision so that they are not always going to rely on public dollars for these kinds of improvements. He stated that we may not get to 380,000 fans but we can get to 280,000 fans and if we can do that this Council is never going to have to worry about Coveleski Stadium. Because those kinds of revenues are going to draw businesses, they will be more sponsorships, there is going to be more income that will help maintain not only on a regular basis but also for capital improvements for the stadium. That is what is being asked here tonight. This particular bill is different from the other bill that was talked about earlier. He stated that what he sees is that three or four councilmember’s are in favor of this project and will probably vote for this bill. They are a few councilmember’s that have said that they see the need for this bill and will probably vote for this bill and there are a couple that are not in favor and probably won’t vote for this bill. This bill is being paid for out of PSDF and not taxpayer dollars. Mr. Nussbaum reiterated what Councilmember LaFoutain mentioned earlier that we need to set priorities and he hopes over the next couple of months or year they will do just that and maybe consider the other bill. Mr. Nussbaum stated that in considering this bill this evening most are convinced that it is the right thing to do economically and the right thing to do fiscally and urged the Council’s favorable consideration. Lyn Kaczmarek, 501 W. South Street, South Bend, Indiana, stated that the Council will only be voting on this bill that approves the issuance of bonds that will be repaid with funds from the Professional Sports Development Fund (PSDF). She noted that currently they are collecting approximately $600,000 from the PSDF that otherwise would go to the State of Indiana. She advised that $400,000 of that $600,000 will go towards paying off the bond. She stated that since the PSDF was established 4 million dollars has been captured only because of the South Bend Silverhawks being in South Bend. She noted that some of this money has been used to renovate other city owned facilities and none has been used to renovate the Cove. She stated that she has heard others say that this project is above and beyond what they need at the Cove. She noted that some say they should do a little now and a little later because there is no rush and like there has been a rush to make this decision. She stated that she has heard numerous times to do the minimum to keep the team here. Scale back the project, they don’t need to do the whole project. She noted that discussions have been ongoing since 2007 to update and renovate the cove. She reiterated that there has been no rush to get this project done. Instead it is a well thought out project and a scaled back project due to the economy and not wanting to spend any dollars without a justified plan in place. She stated that she wanted to be clear that by doing just the minimum doesn’t mean that the team will stay. She stated that they need to do everything that they can to make this a successful business so that the team is not sold. She gave some examples of how this project was scaled back so that the next generations of families will be able to experience affordable family entertainment. The new entry area, over and over again it has been stated that the Cove is not safe, no one knows where it is located or even that South Bend has a baseball stadium. Why because the entrance is hidden and back by the old train station and that comes with a perception. By opening up the outfield entrance there is now a direct connection to downtown South Bend. This is one of the most relevant aspects of why the City should reinvest in the Cove. The connection between Downtown South Bend and the Cove is worth every penny of the 10 million dollar plan but it is also one of the most critical parts of the overall plan. There will now be an open pathway to downtown South Bend that has never been there before. If you open up the outfield as the entrance you are already putting down the concrete, so putting in the fire pit, the splash pad, and the elevated stage area are the least expensive costs to this project. But they give the most in terms of potential use of this facility for many non-baseball events and entertainment options during games. These features alone are critical in terms of the next twenty years for this community, the next generation of fans and the ability of the Cove to become a multi- function park. This new area gives them hope for the future. One issue with the present 16 SPECIAL MEETING NOVEMBER 30, 2010 stadium is that there is no place for any baseball entertainment other than the field. Minor League Baseball is exploding around the country because of the family affordable entertainment that can go on at the ballpark. The old and tired concourse is dark, dreary and small. There is not even an acceptable place at the Cove for children to play and that is a huge part of family entertainment. The new family picnic area and keeps being mentioned as an adult only area is just not true, and she doesn’t know where that came from. It is simply a tiered picnic area that extends out to the third base foul line. The present picnic area is falling apart, small, and in need of repairs. This new area will have new picnic tables that are made of strong material that will survive for decades. It will also be on the left field side where there will be shade and will open up the area between the team store and the concourse. She stated that they need the old picnic area to create a safe place for the children. She stated the suites are falling apart. Air conditioners do not work, cabinets are falling down, small and outdated in areas. They are having a hard time selling them because they are too small. If you walk into one the ceiling is leaking and the next one the air conditioner is falling out of the wall. The Upper Deck when it was built there was no ventilation put in, so you get smoked out when cooking. The Upper Deck should be the best seats in the house, but the seats are actually dangerous for those trying to sit in them. Some have been removed because they have been totally destroyed. She noted that last week she heard personal attacks on Joe Kernan and his investors, that they are making money off of the citizens and the City, and to let them pay for the repairs if they want them and just who are these investors. She reassured everyone that Joe Kernan nor any investors have made any money off of this investment of saving the team. She reiterated who are they and why does it matter. What needs to be know is that these investors saved a community business, they saved approximately 300 jobs, kept the Cove running with more of their own personal dollars because they love this community and they know how important this part of the community is because if the team is gone then there just an empty stadium. She urged the Council to support this full project, with their vision, passion for this community, and the belief that South Bend is a great city with even more potential that where they are now will be in support of these renovations now. John Abernathy, 59449 Keria Trail, South Bend, Indiana, stated that he attended tonight’s meeting not with the intention of speaking. He stated that he has been following the discussion of the bills before the Council this evening, and stated that there are two sides to every story. He stated that he was born and raised in South Bend and the only time away was to attend college at Indiana University, he has spent his entire life here. He stated that he loves baseball, played at Northside Little League and not much after that. He stated that he has taken his family to the Cove numerous times. His favorite recollection was having his daughter’s birthday party at the Cove with her friends and having her name appear on the scoreboard wishing her a happy birthday. He stated that he now has four grandsons and when he asks them what they want to do for their birthday, they say they want to go to the Cove. So he stated that he is speaking not only as a father or grandfather, or a citizen, but wants to speak tonight as an investor in the Cove. He stated that he first met Joe Kernan at Northside Little League. As being a business man in town he saw the writing on the wall that they were going to lose the South Bend Silverhawks. They were going to go to another city. He stated that Joe came to him as well as other people and said that he had a vision to put together a group of businessmen as investors to save the baseball team and so that Coveleski won’t be vacant. Mr. Abernathy stated that Joe had a proposal and he told him that he did not have a lot of money to put into this. He stated that he took it to his accountant and showed it to him and he asked if he was serious about putting money into this. Mr. Abernathy replied to his accountant that he was not putting money into this project as an investment expecting a return, but putting this money into his community because this community has provided he and his family a nice income and he wanted to make sure that we kept this baseball team here. Each year, the last four years he has taken his tax return back to his accountant and he states every time what are you thinking about with this investment. Mr. Abernathy stated that it is a negative loss every year, and he stands here today as an investor telling the Council that they have not made one penny in the past four years while they are rebuilding. Mr. Abernathy pleaded to the Council to invest in the community like the investors have invested in the Community by keeping the team here. He stated that where the money is to be made is when the investor’s sell to another 17 SPECIAL MEETING NOVEMBER 30, 2010 outside investment group where the value is greater than what they paid into this investment. He urged the Council not to make this project attractive to an outside firm and lose this great investment in this community. th Gary Gilot, Director, Public Works, 13 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, advised the Council that if they have driven past the Cove, there is some work in progress. This is work that is being done with monies appropriated from the prior year. There were some safety things that needed to get started. They replaced the pads on the outfield wall for player safety. He stated that they may have noticed the new net, it used to be dangerous for people in the stands if balls went foul, so now they have a net that opens up the view of the game better, but provides for fan safety. The restrooms were a good design that came from the architect and were pretty extravagant and more than they could afford, but they worked with the Silverhawks, the Community Development Staff and worked with the Wightman Pietre & Associates and value engineered down the restrooms. He stated that you don’t see the Taghmahall, you see blacked out paint where a ceiling was once designed to go in order to economize. Lighting, we are building this building for sustainability, they had to redo the lighting because there was a problem as Mr.Nussbaum mentioned earlier in the left field area regarding lighting and the lack of a lighting stanchion and there being a dark area. Mr. Gilot stated that they are putting more post around and a different combination of lights the poles are somewhat lower, but the key thing for sustainability is that they will use half the energy and they were purchased with a twenty-five year warranty and this is a system that will serve the community well for a long time without risk of excessive energy bills or maintenance costs. There was a sewage lift station and they could not wait, so they took care of the pumps there. He stated that they are doing some work on the left and right field wall that is essential to avoid doing re-work and wasting money. Mr. Gilot stated that the initial plan was over 30 million dollars that HOK put together. He stated that they worked a lot with Wightman Pietre, the Silverhawks, Community Development Staff, and the Engineering Staff to value engineer that down to the 10 million dollar plan. Mr. Gilot stated that he realizes that is still a lot of money, but there has been serious efforts to whittle this down to get a very good value for this proposition. In addition, he wanted to reiterate what Mayor Luecke stated that they are getting very good prices. The State of Indiana complies bid tabs prior to the stimulus work in South Bend and other cities within the State have used those bid tabs (actual units of prices observed) times the quantities and plans what they are going to do with stimulus money, South Bend, St. Joseph County all around the city, and the numbers came in actual bids, 30 percent below the engineer’s estimate that were based on those tabs of the prior years experience. They were getting wonderful savings and value for our money now and that is why they should invest now. Mr. Gilot noted that it will preserve jobs, construction jobs that they have heard from the contractors working on the new TRANSPO facility that they would have had to close their doors if not for the public work keeping them going when the commercial and private side work had totally dried up. He responded to the comment on vision, he stated that they have had a vision in progress and that the Council showed a lot of leadership on and passed called City Plan. He stated that hundreds of people turned out for town hall meetings and they developed a vision for South Bend for 2025. There vision wasn’t for a bare bones city and the lowest tax rate to brag about, it was for a special city that was going to have quality of life for a live, play, work, shop, learn type of environment and things to be proud of. The staff is particularly proud when the Council gives the resources to get things done. He stated that they have started the job here and would love to be able to finish it and hoped that the Council would give them the resources to do that. The following individuals spoke in opposition to the bill: Szabo, Mishawaka Avenue, South Bend, Indiana, stated that he doesn’t envy the Council and trying to make a decision on this. He stated that the facts have gotten very confusing on what needs to be done and what they want to be done. He stated that there is one thing that they all can agree on and that is that the Cove is a civic asset and that we would be foolish not to sustain the viability of that asset. He stated that he is confused on what really needs to be done. He stated that the Park Superintendent stated that they have been doing the maintenance on the stadium and the Silverhawks Manger states that the place is 18 SPECIAL MEETING NOVEMBER 30, 2010 falling apart. He stated that the Council needs to find out exactly what needs to done at the Cove. He urged the Council not to be reckless with taxpayer’s money. He asked the Council to have them come back with an itemized proposal so that they can look at it and have transparency and have a clear understanding of what they are buying. Jesse Davis, 1333 S. Calvert, South Bend, Indiana, stated that he is a small business owner is town. He stated that he has been following this project and has some concerns as to what the total cost of this project really is. He questioned whether the city was sandbagging money or hiding money and from his calculations this project seems well over 20 million dollars. He urged the Council to be transparent and take a much harder look at this project and find out how many dollars have already been spent over the years. He likened this project to the movie the “Money Pit” and having to keep putting money into a project that won’t ever recover those dollars. He stated that we have Century Center, Morris/Palais, the Football Hall of Fame/Shame and the Cove. He stated that these may be fine places to go and have nice things to see, but every year we have to keep dumping money into those places. He stated that if the City has tax money to keep dumping into these facilities that aren’t self-sustaining then whey doesn’t the City have money to keep other businesses open in this town. If they are going to be run like a business then they need to sustain themselves and the city can’t keep asking the taxpayers to keep paying more to help keep these businesses open. He stated that as a small business owner if he can’t generate enough revenue then he has to shut his doors and move on. He stated that if these businesses can’t sustain themselves then close them down and move onto something else and put our tax dollars where they can be better used. Kelly Havens, 12032 Timberline Trace, Granger, Indiana, likened this project to the person standing at the intersection holding the sign that says “desperately need money to feed my four kids.” She stated that your heart goes out to that person, but something inside says what if this is a scam. She stated that most will give and then realize that this person just scammed you. She stated that this is how most taxpayer’s feel about using option income tax money on this project and not for it’s intended use. She stated that this bill is for the issuance of bonds to be paid from the Professional Sports Development Fund (PSDF.) She stated that she is not sure who wrote the brief for the Council on the PSDF but she is reading from the Legislative Service Agency Fiscal Issue Brief that states that money has been coming from Century Center, Coveleski, Hall of Fame, Morris/Palais, Studebaker Museum, and has raised only 4 million in the twelve years since it has been coming in and that all or most has been used on the Hall of Fame. There is almost nothing in there now, it’s not going to make a ½ million a year from hear on out because the Hall of Fame isn’t going to be there to contribute it’s income tax and sales tax, so it’s going to make less than that and the sunset date is 2018 on South Bend. So clearly there is only 7 years to raise 400,000 a year and it’s only going to raise 3.2 million, so if you try to float a 5 million dollar bond against it, where the heck is the rest of the money going to come from. She stated that the way these bonds will be written is that it will be folded towards property taxes or option taxes or something that the city is going to guarantee that the money is coming from somewhere and it’s going to be the taxpayers. She stated that the city cannot borrow against unknown revenue like that. She stated that she got a letter from a former Councilmember that stated to remind the Council that bond issues are like borrowing and borrowing against future taxes that aren’t going to be there, because you can already project that. She stated that the option tax part of this project can’t happen and now the bond issue can’t happen either. They need to rewrite this thing and bring it back to the Council as other people have said with what is the minimum things that need to be done. She noted that the one thing that is in hand is the 2 million in TIF money from the Redevelopment Commission and that is all that the City has to go toward this project. She stated that the lighting problem, restrooms and drainage could all be handled with that 2 million dollars and that would be a reasonable project, not if you go with the architect’s plan. She stated that artificial turf is a bad idea, it’s not environmentally friendly nor is it a good idea for the players, causing more injury along with more money for upkeep, and it’s just a bad idea. Ms. Havens reiterated that the PSDF doesn’t have enough in it to borrow against for this bond and the Council has to vote no and be responsible otherwise it’s borrowing against the taxpayer’s future and this is a heck of a time to be doing that. 19 SPECIAL MEETING NOVEMBER 30, 2010 Gregg Burkowski, Roosevelt Road, South Bend, Indiana, stated that there are a few of the proposed improvements that he can see supporting such as upgrading the dugouts, locker rooms, the training rooms. He stated that the Council needs to separate the needs from the wants and not support this project with taxpayer’s money. He stated that the last thing that this city needs is more debt. Jim Cierzniak, 1518 Pine Top Trace, Mishawaka, Indiana, stated that he has a vision for this project and that is the Council marching over to the Cove with white hard hats to go over what exactly needs to be done at the cove. Then take off those white hard hats and put on green visors to go over the books very carefully. He noted that the Council voted no to the first bill tonight and he urged the Council to vote no to this bill tonight. He stated then the Council needs to sit down to see what needs to be done and what can be afforded for this project. He stated that this project should not be more than a 1 or 2 million dollar project. He stated that it is up to the Council to find out what kind of condition the Cove is really in and then to make sure that the City does not pay for more than what really needs to be done at this point in time. He stated that the Council got a good lesson on economics on the situation earlier tonight. He stated that they were told the investors paid so much and the worth is just so much, however, if the city were to make the stadium a super stadium then the value would go up and the investor’s could then sell for a much higher profit. Mr. Cierzniak stated frankly ladies and gentleman that is baseball 101. Myer Blad, Mishawaka, Indiana, asked the Council to live within the City’s means. He stated he likes going to the Cove and having the Silverhawks here however, this project is too extravagant. He urged the Council to vote against this bill. Barbara Saunders Brownell, 1407 Sunnymede, South Bend, Indiana, stated that several years ago she was part of the fundraising effort to keep the Howard Park Ice Rink open. She also stated that she was part of the effort to help keep the city’s swimming pools open. She stated that these are important facilities for the City along with the Coveleski Stadium, however, the Council needs to go over the figures and find out exactly what needs to be done and what the City is going to get the most bang for their buck. She questioned why the City would want other development competing against the Cove such as bars and restaurant’s when you can get food and drinks at the stadium. She urged the Council to review the project because this is a lot of money. She stated that her mom always said that South Bend Government has champagne taste and the people have a beer budget. Joan Strezlecki, 51330 Prescott Avenue, South Bend, Indiana, stated that it has been reported on the news that Mayor Luecke was quoted as saying that no tax payer dollars would be spent on the renovation of the stadium. She stated that it is all tax payer money. She stated that it seemed to her that the people speaking in favor of this project are people connected with the cove, those making a living from it one way or another. She stated that people like her are always ignored and don’t have voice when the City wants to raise taxes. She urged the Council to vote against this bill. Ken Peczkowski, owner Griffith Book Store, residing at 509 W. Madison, South Bend, Indiana. He stated that he also served as the Council’s representative on the South Bend Redevelopment Commission a few years ago. He stated that as a business owner he had a vision approximately 35 years ago for a business of their type to exist and thrive in the downtown area. He stated that they were courted by the then Scottsdale Mall which was the only mall and predates most of the businesses that currently exist downtown and certainly predates the Cove. He reiterated that he had a vision for a place that he and his wife could do good things by selling the things that they love and those are books and games. He stated that these two products are in competition with other members of the entertainment industry such as movies, sports, and other entities that are looking for those entertainment dollars. They are in the same competition for those dollars and to him to favor out Mr. Kernan and side with him that his team is only getting 200,00 people to show up and things aren’t so go good and the facility is starting to look shabby and that a lot of other things are going bad. Mr. Peczkowski stated that he faced that everyday for 20 SPECIAL MEETING NOVEMBER 30, 2010 35 years. He stated that he owns his own building and pays property taxes on that building and not in a rears on those taxes as he has seen other business’ come before the Council and have people believe that they are upstanding citizens when in fact they don’t even pay their property taxes. The other side of the coins is that as a brief member as the Council’s representative on the Redevelopment Commission he was under the impression or under the State Law’s impression or as it was originally written out that the Redevelopment Commission was a part of the checks and balances within the executive and legislative branches of government and that somehow that commission was supposed to look at things and be that filter for the Council so that you don’t have to spend valuable time looking at the volumes of paper that they would swamp the commission member’s with right before the meeting. He stated that he took the time to read all those things and on the commission at the time when the Cove project was first beginning. He stated that he looked at all the properties that were up for sale and looked at who owned the properties and how the money was being spent to buy, demolish and make ready this project. He stated that he objected then, because certain well connected people were getting monies in excess of what should have been the expected value for those properties. He stated that houses that were falling down and getting triple the price that should have been in a fair open market. But because these people were somehow connected with the administration these properties were still purchased with our money and at premium value at times when property values were dropping dramatically all around the city. When talking about checks and balances how many people are there on the Redevelopment Commission? Mr. Peczkowski stated that there are five members, three of those are appointed by the Mayor and two appointed by the Council. He noted that it takes three votes to get a project approved and moved to the Council for a vote. He questioned whether the checks and balances have been properly addressed when those three out of five members are always giving the same approval and same information time and time again about projects that are being brought before the Council. There are no checks and balances we have become an oligarchy and it is defined as government by the few and a clique. Mr. Peczkowski stated that clique is a small group of people who are unfortunately for us are all members of the Democratic Party. He stated that even though he is a Democrat, sad to admit, that this is a detriment to the system. He urged the Council to reconsider this and not go ahead with this because it is counter-productive and not fair to him as a business man to have his tax money given to another tax payer so that he can compete better than he can. Rita Kopala, 66559 Ivy Road, Lakeville, Indiana, stated that she remembers Mr. Peczkowski on the Redevelopment Commission and was sad to see him go. She stated that she attends many of the meetings in City and County government and knows what goes on first hand. She stated that there are so many things that go on and she won’t be able to fight this much longer, but it is just unbelievable to her when she drives through town and sees what has happened to the downtown area with all the code enforcement violations that need to be addressed and all the homes that have been demolished. She stated that there are no decent living places left for people. She advised the Council that they shouldn’t just believe that there is just Eddy Street Commons or Granger, which she is well aware of because of the regional water and sewer and the people who got that who are located right across from the former Sear’s building, the name escape’s her but they are very well in control and took care of Wyatt and there are so many things that have happened in this city and honesty isn’t one of them and neither is transparency. She advised the Council that saying the word just doesn’t get it for you. She stated that she has fought for it so many times and takes what she can get and that’s enough of that. She stated that the Council could be honest enough when people are interested in coming to the meetings to get them the information that they are looking for and when she attends these meetings she finds out it’s just another clique from the Mayor’s office that is speaking again. She stated that there are other things that the City needs to address and when she was growing up she could walk right down Chapin Street from downtown South Bend after a show to her home just off of Sample Street with no problem and never had any problems there. She stated that when she worked off of Broadway Street you could walk down Fellows Street, take the bus, etc., but by the time she left there you couldn’t walk from the Pepsi Plant to the parking lot without someone watching you get into your car. She stated that the City Administration wants to put in pipe dreams like the Football Hall of Fame, how long has that thing been going on and it’s not even gone yet 21 SPECIAL MEETING NOVEMBER 30, 2010 and now the Administration wants this project. She urged the Council to consider what it is doing and try and think of the good of all people in this town. In Rebuttal, Mayor Luecke stated that he wanted to be clear that he never said that no tax payer dollars would be used obviously they are asking for an appropriation of tax money for renovations for the Cove and wasn’t sure who was reporting this. Mayor Luecke addressed how many dollars were appropriated last year regarding TIF dollars and stated that it was approximately 1 million dollars. He advised that Bill No. 73-10 mentioned 10 million dollars but did not appropriate 10 million dollars. The project is a 10 million dollar project if you include the 1 million dollars already appropriated it’s 11 million dollars total. He advised that Bill 74-10 asked for the Council to issue bonds in the amount of 5 million dollars for improvements to the Cove that will make it a more enjoyable place for the fans and a more appropriate place for the team and make it a facility that get more community use in a variety of ways. The bonding that they are proposing is not a balloon payment it is an amortized payout over 8 years that is fully funded by existing dollars within the fund of a reserve of approximately 1 million dollars plus projected revenue. He stated that the projections show 620,000 to be received this year and as they projected that out into the future they subtracted 40,000 anticipating that the Hall of Fame will no longer be contributing to the fund and when they checked with the Hall their annual contributions were approximately 30,000 to the PSDF, so as they made those projections they asked their advisors to look at a payment schedule that would be affordable within the revenue stream within the PSDF and believe that they still have that at the end of the time fram and will have a balance of a ½ million dollars. He stated that he believes that the dollars that they are using are appropriate and available to the city because they have a professional baseball team in town and absolutely right to use those dollars for the enhancement to Coveleski Stadium and asked the Council for their full support of this bond issue as an investment to the Cove and an invest to the fans who come to the cove and as an investment to families who enjoy attend the Cove and as an investment in the community and as an investment into the greater downtown area as well and believe that these are appropriate plans that will not only enhance the viewing experience at the cove but enhance the great jewel located at the south end of downtown and urged the Council favorable support. Councilmember Henry Davis asked whether the City is in danger of losing the Silverhawks and wondered if there was a contract in place keeping the team here for a number of years. Mayor Luecke advised that there is a use in management agreement that is reviewed on a one-year or two-year basis and currently we have an agreement that continues until 2011. Councilmember Davis stated that he keeps hearing this project being compared to Ft. Wayne. He advised that he has not heard this project compared to a similar design as in Gary, Indiana. This project is not being compared apples to apples, it’s apples to oranges. Mayor Luecke advised that they believe that the project stands on it’s own merits. Comparing it to Ft. Wayne is a better comparison because they have an affiliate team with a Major League Team, they play in the Midwest League while the Gary, Indiana team is an independent team a separate entity, a different brand of baseball. Mayor Luecke noted that Ft. Wayne is larger in population however the drawing is comparable to both teams. Councilmember Henry Davis asked is the team or the facility the catalyst. He questioned whether they are investing in the team or the stadium. Mayor Luecke responded that they are investing in the team and the stadium. They want to enhance the facility to make it more useful for the community and make it a more professional place for the baseball team. So, yes the investment is in the stadium and you 22 SPECIAL MEETING NOVEMBER 30, 2010 can’t separate the team from the stadium because if we wouldn’t have a stadium we wouldn’t have a team. Councilmember Henry Davis stated maybe, it what comes first the chicken or the egg. He stated that he really doesn’t have a clear picture. He stated that he really wants to vote for this because he has seen the plans and can vision the project, but what he doesn’t see is that the city has done their homework. He stated that he has talked about the market forces, the developers and the potential of wanting to develop in that area. He stated that the all the answers to those questions were no or went unanswered, so why nd would he as 2 District Councilmember want to vote for a project like this. Mayor Luecke responded that he believes that all of the questions were answered, they might have not been the answer’s that Councilmember Henry Davis was looking for. Councilmember Henry Davis stated that he is just no sold on this project and has had nd many of his constituents in the 2 District ask him to vote against this project. He has had other people on the other hand say votes for this, he wants to be sold on this project. Mayor Luecke stated that they have given their best shot on the presentations that have been made. Again the investment in the Cove will make a much better facility for communities that attend and will provide an opportunity for community usage it will be an opportunity to attract private investment as they have seen interest in discussions with developers. Councilmember Varner stated that the team value is relative to the revenue stream. On one is going to pay more than the revenue stream is willing to pay. He stated that the vision has to be from point “A” to point “B.” He asked the Mayor if there was going to be a general obligation clause in this bond. Mayor Luecke responded no there is not. Councilmember Varner advised that he willing to go forward only on certain renovations. He stated that there needs to be a list of essential items and a dollar figure to go along with those items. He stated that if that cannot be achieved he cannot go along with the project because he has been left short on too many visions. Councilmember Dieter disclosed that he is a member of the South Bend Police Department and works part-time at the Coveleski Stadium, and after discussion with Council Attorney Kathleen Cekanski-Farrand it was determined that no conflict of interest exists. Councilmember Dieter made a motion to send this bill to the full Council with a favorable recommendation. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes and two (2) nays (Councilmember’s Henry Davis, Jr. and Varner.) RISE AND REPORT Councilmember Oliver Davis made a motion to rise and report to the full Council. Councilmember Varner seconded the motion which carried by a voice vote of nine (9) ayes. ATTEST: ATTEST: _________________________ _________________________ John Voorde, City Clerk Ann Puzzello, Chairperson Committee of the Whole 23 SPECIAL MEETING NOVEMBER 30, 2010 SPECIAL 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 10:14 p.m. President Derek Dieter presided with nine (9) members present. BILLS – THIRD READING ORDINANCE NO. 10057-10 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING OF THE ISSUANCE OF REDEVELOPMENT DISTRICT REVENUE BONDS EXPECTED TO BE ISSUED FOR AND ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT AND PLEDGING CERTAIN REVENUES FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS (STANLEY COVELESKI STADIUM This bill had third reading. Councilmember Puzzello made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried by a roll call vote of seven (7) ayes and two (2) nays (Councilmember’s Henry Davis, Jr. and Varner.) ADJOURNMENT There being no further business to come before the Council, President Dieter adjourned the meeting at 10:16 p.m. ATTEST: ATTEST: ___________________________ __________________________ John Voorde, City Clerk Derek D. Dieter, President 24