HomeMy WebLinkAbout12-13-10 Common Council Meeting Minutes
REGULAR MEETING DECEMBER 13, 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 Monday, December 13, 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
Thomas LaFountain 3rd District
Henry Davis, Jr. 2nd 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:
Aladean DeRose Chief Deputy City Attorney
John Voorde City Clerk
Janice I. Talboom Deputy City Clerk
Mary Beth Wisniewski Chief Deputy
Absent: Kathleen Cekanski-Farrand Council Attorney
REPORT FROM THE SUB-COMMITTEE ON MINUTES
To the Common Council of the City of South Bend: The sub-committee has inspected
the minutes of the November 22, 2010 meeting of the Council and found them to be
correct.
Therefore, we recommend the same be approved.
s/Derek D. Dieter
s/David Varner
Councilmember White made a motion that the minutes of the November 22, 2010
meeting of the Council be accepted and placed on file. Councilmember Oliver Davis
seconded the motion which carried by a voice vote of nine (9) ayes.
SPECIAL BUSINESS
President Dieter asked for a motion to hold a Special Meeting of the Council on Monday,
January 3, 2011 at 5:00 p.m. in the Council Chambers for the sole purpose of Election of
Officers of the South Bend Common Council and appointment of the Council Attorney.
Councilmember Oliver Davis made the motion, seconded by Councilmember Varner.
The motion carried by a voice vote of nine (9) ayes.
RESOLVE INTO THE COMMITTEE OF THE WHOLE
At 7:07 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.
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REGULAR MEETING DECEMBER 13, 2010
Councilmember Puzzello stated that a brochure may be found on the railing in the
Council Chambers explaining those procedures.
PUBLIC HEARINGS
BILL NO. 65-10 PUBLIC HEARING ON A BILL AMENDING THE
ZONING ORDINANCE FOR APPROXIMATELY 84
ACRES LOCATED AT THE SOUTHEAST QUADRANT
OF SAMPLE STREET AND PRAIRIE AVENUE,
COUNCILMANIC DISTRICT 6 IN THE CITY OF
SOUTH BEND, INDIANA
Councilmember White made a motion to accept the substitute version of this bill.
Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine
(9) ayes.
Councilmember Kirsits, Chairperson, Zoning & Annexation Committee reported that this
committee held a public hearing this afternoon on this bill and sends it to the full Council
with a favorable recommendation.
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Christa Nayder, Staff Member, Area Plan Commission, 11 Floor County-City Building,
227 W. Jefferson Blvd., South Bend, Indiana, presented the report from the Area Plan
Commission.
Ms. Nayder advised that the petitioner is requesting a zone change from GI General
Industrial District to PUD Planned United Development District to be known as “Ignition
Park PUD”. The proposed rezoning is intended to provide for the development of a high
tech industrial park to be known as Ignition Park, a launching pad for technological
innovation. Ignition Park, in combination with Innovation Park, creates a two-site,
single, State Certified Technology Park within the City of South Bend. It is anticipated
that development within Ignition Park may include, but not be limited to: research and
development facilities, education, office, prototyping facilities, and, support uses. The
site is partially vacant. Remaining buildings are in the process of being demolished. To
the north is the St. Joseph County Jail, the City of South Bend Municipal Garage, and the
United Beverage facility, all zoned GI General Industrial District. To the east is the new
Transpo building zoned GI General Industrial District. To the east across LaFayette
Blvd, is a three tenant office building and the Hydraulic & Steam Equipment company,
zoned GI General Industrial District. To the south across Cotter Street is Ferguson
Enterprises and the Martin’s Supermarket corporate office, zoned GI General Industrial
District. To the south across the railroad tracks are single family homes zoned SF2
Single Family and Two Family District. To the west across Prairie Ave. are Ideal
Corporation, Midwest Sales, and Wertz Supply, all zoned GI General Industrial District.
The Planned Unit Development (PUD) District is designed and intended to encourage
creativity and innovation in the design of developments; provide for more efficient use of
land; permit special consideration of property with outstanding natural or topographical
features; facilitate use of the most appropriate construction techniques in the development
of land; and, provide for any individual land use not otherwise specified elsewhere in this
Ordinance. The PUD District encourages imaginative uses of open space, promotes high
standards in design and construction, and furthers the purposes of the Comprehensive
Plan. The PUD District is not intended for the development of residential subdivisions or
other developments which are provided for as a matter of right within any district of this
Ordinance. The typical site plan generally filed with a PUD, is instead, being described
through Exhibit “B” Ignition Park PUD Zoning Ordinance Preliminary Plan. This
narrative plan describes what is expected to happen as Ignition Park develops. The
narrative plan covers uses, setbacks, building heights, landscaping, and all the other
development elements associated with the site. It also contains some drawings for
clarification and guidance. Secondary approvals will require site plans that fully meet the
intent and specific development standards of the narrative plan. The area was part of the
Studebaker manufacturing complex. The property was zoned Heavy Industrial since at
least the 1950’s and used as industrial for over a century. In 2004, when the new zoning
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REGULAR MEETING DECEMBER 13, 2010
ordinance and map were passed, the zoning district changed to GI General Industrial
District. The traffic and transportation consideration are Sample Street has four lanes.
Prairie Avenue and Lafayette Blvd, each have two lanes. Cotter Avenue, which borders
the southwest corner of the site, is a two lane street. Multiple access points to the site
will be provided based on the development pattern of the PUD. The City Engineer will
determine size, number and location. The Economic Development Department is in
favor of the request to rezone the area encompassing Ignition Park to a Planned United
Development. They note that, “this rezoning change to PUD is an important part of the
planning for Ignition Park and it will set the standard envisioned for the Park, while still
being flexible to allow various uses.” Ms. Nayder reiterated that this area was part of the
Studebaker manufacturing complex. Many of the buildings have been demolished over
the past several years to make way for major redevelopment initiatives. Surrounding uses
are small to medium sized industrial businesses and public use facilities. The most
desirable use is large industrial and office users within a planned development. She
noted that in the staff’s opinion, surrounding property value should not be negatively
affected. It is responsible development and growth to promote the adaptive reuse of land
within the context of the Comprehensive Plan. Ms. Nayder advised that the Area Plan
Commission held a public hearing on this bill on Tuesday, November 16, 2010 and sends
it to the common Council with a favorable recommendation. Ms. Nayder noted that no
spoke in favor or against this bill. Ms. Nayder stated that the South Bend Comprehensive
Plan, City Plan, identifies the establishment of a research park as one of the action steps
under Strategy #1. In conjunction with Notre Dame’s Innovation Park, Ignition Park
provides a well-designed development facility in the attraction of new businesses to the
city, and provides the means to retain and attract young, skilled professionals to the
community.
Geri Hathaway, Director, Ignition Park, 1400 E. Angela Blvd., South Bend, South Bend,
Indiana, made the presentation for this bill.
Ms. Hathaway advised that in 1999 a study was done of the Studebaker Corridor. The
conclusion of that study was that the Studebaker Corridor would make a fine industrial
park. Based on that the City of South Bend started to demolish buildings there and
reclaim the land. Fortunately they started to do it at the east end of that corridor. Today,
there remain two buildings that need to come down and the land under those buildings
needs to be reclaimed. That contract was recently awarded by the City of South Bend.
Around 2007, the semi-conductor industry had said for a long time that they would not
support a fourth site for research and development around the replacement of SEMAS
which they think will become extinct around 2015 or 2020. They supported research in
Albany, Austin, and LA. They decided that they would in fact support a fourth site and
they spoke to the nation about that and the City of South Bend and Notre Dame entered
into what was really a landmark collaborative effort. The University said that they have
one of the very best researchers working on the potential replacement for SEMAS and it
is different than the research going on in Austin, Albany or LA. It is potentially platform
changing research in the scheme of research that is monumental. They said that they will
build and engineering building which became Stinson-Remmick Hall which has a clean
room and that they would do a technology park on 12 acres across from the campus and
that they would put an incubator/accelerator building there to help with the
commercialization of the research from the campus and potentially other research efforts
as well. The City of South Bend said we have 84 acres which they will contribute to
make a more substantial park i.e. Ignition Park and we have Metro Net which in terms of
local dark fiber is really substantial and will contribute 50 million dollars to this effort.
The result of all of that became the ward of the City of South Bend and the University of
Notre Dame and was the result of the creation called MIND (The Midwest Institute of
Nanoelectronics Development) on the campus of Notre Dame, which today is eleven (11)
substantial research projects. All based on the advancing research that might replace
SEMAS. The other distinct change was the creation of the only two site single certified
technology park in the country. Twelve acres owned by Notre Dame Innovation Park
and 84 acres owned by the City of South Bend Ignition Park. Ms. Hathaway stated that
nano is simply scale. It is very; very small one hundred thousands nanos are at the end of
a hair on a person’s head. So until recently researchers have been unable to see nano
scale particles. They were working with them but couldn’t them. Today they cannot
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REGULAR MEETING DECEMBER 13, 2010
only see them but they can manipulate them. One of the tools used for that is an atomic
force microscope and there are other tools being developed. But all the tools that work
with nano scale requires and environment that has very little vibration, little dust and
little electromagnetic force. That is crucial. Now, that can be built into the piece of
equipment itself which it often times is. It can be built into the stand that the equipment
sits on. It can be built into the building. But if you have it in the land then you have to
spend less money on the building. Once that award came from the semi-conductor
industry, the City of South Bend ordered a study done of what is today Ignition Park
specifically for electromagnetic force and vibration. That study came back with the result
that we sit with a very, very valuable piece of land with a significant portion of the 84
acres needing what is considered a VCE level of vibration mitigation. Ms. Hathaway
stated that they need to protect that because it is incredibly valuable. Because when they
go out to market, it means that the developer can potentially spend less money on the
building. For example, at Harvard they placed a building right next to turnpike and a
subway station at a phenomenal cost they built a clean room there. In England, they built
and entire building on springs, hopefully that doesn’t have to happen at Ignition Park.
The request for the zoning change is to simply protect the land and protect the investment
and protect the potential. Protect it from anything increasing the level of vibration,
increasing the electromagnetic forces at that site. Ms. Hathaway stated that they are
requesting a zone change from GI General Industrial to PUD. This is the first of many
steps that they will take in identifying further and more clearly the architectural standards
within the park, to identifying the corridor which links Innovation and Ignition Parks.
Ms. Hathaway stated that they will be back in the future, but they need this first step in
order to continue.
Councilmember White stated that on page 21 of the PUD, it states that an Architectural
Review Board (“ARB”), shall be established for Ignition Park. Councilmember White
wanted to know who the membership of that board will be and will the South Bend
Common Council have an appointment to that board.
Ms. Hathaway stated that the board has not been established. Ms. Hathaway stated that
she will turn the presentation over to Mr. Gene Valanzano, Baker & Daniels, who created
the PUD.
Mr. Gene Valanzano, Baker & Daniels, 202 S. Michigan Street, South Bend, Indiana,
advised that the Architectural Review Board has not been established yet. They way they
look at that is that the owner of the property will have to establish the Architectural
Review Board just like any other private development when they create something they
establish for instance a subdivision would have a homeowners association and that is
something they do as the development occurs. He stated that to his knowledge the
Redevelopment Commission is the owner of the property and they will be the one to
establish the members of the Architectural Review Board.
Councilmember Varner suggested sending a letter to the Redevelopment Commission
stating they would like to have an appointment to the Architectural Review Board.
Councilmember Henry Davis called for a point of order, he asked if it would be a
recommendation or contingent upon. He stated that asking for an appointment doesn’t
mean you get a place at the table. He questioned if it was necessary and then answered
that it is highly necessary. He asked Chief Deputy City Attorney Aladean DeRose if they
could amend the bill to make sure that the Council has a place at the table.
Aladean DeRose, Chief Deputy City Attorney, advised that at this point the Council is
voting on the zoning change.
Councilmember Henry Davis stated they he would hate to lose the opportunity for the
Council requesting a seat at the table.
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Mayor Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend,
Indiana, advised that stated that the Council would have his commitment that the Council
would have an appointment on the Architectural Review Board.
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REGULAR MEETING DECEMBER 13, 2010
Councilmember Henry Davis stated that he would still like to have a resolution or
something in writing. He thanked Mayor Luecke for the offer but would like to have the
Council needs to take care of that business rather than administration or outside forces.
Councilmember Oliver Davis stated that he would follow up with Councilmember White
request and Councilmember Varner’s suggestion to write a letter to the Redevelopment
Commission asking for the Council to have an appointment to the Architectural Review
Board, per Mayor Luecke’s commitment.
Councilmember Henry Davis stated that it was not Councilmember Oliver Davis’ place,
that it was the Chairperson of the Zoning and Annexation Committee.
Councilmember Al “Buddy” Kirsits, Chairperson, Zoning and Annexation Committee
stated that he understands Councilmember Henry Davis’ concern and asked Chief Deputy
City Attorney Aladean DeRose could they make an amendment to the PUD on page 21
regarding the Architectural Review Board.
Ms. DeRose advised that they could amend the PUD to include on page 21 (c) to include:
An Architectural Review Board (“ARB”) shall be established for Ignition Park to include
an appointment from the South Bend Common Council.
Councilmember Henry Davis, Jr. insisted that a resolution or an attachment be drawn up
requesting that the Council has an appointment to the Architectural Review Board.
Councilmember Henry Davis, Jr. stated that he would make a motion requesting that the
Council has an appointment to the Architectural Review Board at the end of the
presentation.
Mr. Valenzano continued his presentation stating that what they tried to do with the PUD
is to establish rezoning for the 84 acres or main portion called Ignition Park. 1. The
other areas 2, 3, and 4 combined with that could lead up to a combined park area up to
140 acres. The uses that they have identified for area 1 which is the main part are
basically three groupings: 1. Educational uses being colleges, universities or commercial
trade schools. 2. Industrial uses primarily featuring engineering or research lab proto-
type facilities and testing facilities; 3. Corporate offices and other professional type
offices. Those are three main ideas that are proposed here. There are some support uses
or accessory uses such as a conference center and some retail uses. Within the PUD they
have established some development standards that have an urban feel to them. The
provide protection to the park itself and the surrounding developments such as set backs
that will be provided and landscaping. They also provide protection from the
surrounding areas within the park. They have standards set up that deal with the building
set backs, site landscaping, deal with access to the overall park, parking, loading,
lighting, and size. The idea is to set up regulations that are stringent around the perimeter
so that just like any zoning ordinance you are protecting yourself from the outside and the
outside from the inside, but also be flexible enough on the interior of the site so that you
get a true campus feel as this project grows over time and have all those areas properly
protected. He reiterated that Areas 2, 3, and 4 are not included in this rezoning at the
present time, but they have tried to do is plan ahead as the Redevelopment Commission
buys property in areas 2, 3, and 4 and reach that critical mass for redevelopment they can
be brought in and attached to the same document with a new legal description and
everything can fit together like hand and glove and that is the whole idea of what they are
trying to do for the entire 140 acres and give specific zoning on the 84 acres at this point
in time. He stated that the whole reason for doing this is to establish a high tech research
park feel for Ignition Park. With all the amenities that are needed to be in place to create
what everyone says is so desirable as the live, work, play environment, they feel that this
is necessary to attract new businesses, new jobs to the City of South Bend within this
park. He stated that they chose a PUD to do this because to be very honest, the uses that
they are talking about going into Ignition Park, could go into the Park under General
Industrial classification, but there are a ton of other uses that could come into the park
under General Industrial classification. He reiterated that they have limited uses that
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REGULAR MEETING DECEMBER 13, 2010
could go in because of the limit on vibration, dust, and electromagnetic pulses. Things
that could go on in General Industrial if they don’t use the PUD are green houses and
they could be the potential for dust that would be detrimental to the park. Automotive
uses including paint shops, adult cabarets are also permitted in General Industrial use.
Bottled gas, warehouse and distribution along with electroplating facilities, high intensity
such as arch welding and high electrical impulse type uses. He stated that if they are
going to try to market this park as high tech/nanotechnology uses then we need to provide
protection within the park and by using the PUD they have limited the uses to those three
basic uses he mentioned earlier 1. Education; 2. Research; 3. Office Use and have taken
these other uses that could be detrimental out so that when they market these 84 acres the
potential developer will know exactly what it is zoned and what can go next door to
them. He stated that there was no other zoning classification in the zoning ordinance that
would allow them to do it this way. He stated that the additional follow up steps that
would be needed. A group has been hired to develop more architectural site design
guidelines as well as some other steps that have been identified through this process that
the Area Plan Commission is going to look at in terms of amending the zoning ordinance
that they felt would be good for the overall City in terms of vibration, electromagnetic
pulses and dust and their impact on the park.
Councilmember Henry Davis asked who own the land.
Mr. Valanzano stated that the Redevelopment Commission owns the land.
Councilmember Henry Davis questioned the PUD zoning.
Mr. Valanzano stated that the PUD allows for the protection for the marketability of the
park.
Councilmember Henry Davis stated that he spoke earlier this afternoon regarding the use
of PUD for Eddy Street Commons and the Kroc Center and others that they have
experienced over the last two years as it relates to jobs, unions, and minority contractors
because this is ultimately what happened as these building were starting to be erected.
He stated that he is still not sold on the fact that they don’t have any attachments on who
moves into the area and who doesn’t because he has other examples in his mind that are
also in Mr. Davis’ District that have special zoning codes as most places do but nothing
has moved into those area and is the reason that they haven’t moved into those areas.
Because the plans do not suite what the other are trying to do or get done. What he is
trying to do is secure as best jobs for the local contractor if possible or even allow them to
compete because this is something that took place past time with Eddy Street Commons
and now Kroc Center so that is what he is getting at. He knows that it is a zoning thing
but with a zoning change a whole host of things show up as well.
Mr. Valanzano stated that he understands what Councilmember Henry Davis, Jr. is
saying but doesn’t know how to respond to it. He stated that he doesn’t work for the
Redevelopment Commission and cannot speak in terms of how they are going to do their
marketing or how are they going to do their construction bidding process. He apologized
but he is not the person to answer that question.
Councilmember Henry Davis asked Mayor Luecke to answer the question if he could or
is it like beating a dead horse.
Mayor Luecke stated that the zoning does not in any way determine who will work on the
construction of an appropriately zoned property within the area. Mayor Luecke stated
that he was unsure of what Councilmember Henry Davis, Jr.’s question was.
Councilmember Henry Davis, Jr. stated that his question is that they have had examples
of a PUD in different areas within the City of South Bend and as a result of these zoning
changes going on into these particular areas when the bidding went out for different jobs
a lot of our local contractors and unions were unable to get a job as best in those areas. A
lot of those jobs were given to people outside of the community. He stated that he is not
against outside people coming in and working in South Bend, what he is saying is that
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REGULAR MEETING DECEMBER 13, 2010
when there is movement is there a way to capitalize on the local economy and bringing in
more dollars and sharing more dollars with the City. His expectations on being able to do
that a high degree when situations like this come up. And this is why he is getting at this
point of the PUD, because he has seen examples that something like this has turned into
something else. It has not been the best case scenario for the people living in South
Bend.
Mayor Luecke stated that Councilmember Henry Davis’ mentioned two examples: Eddy
Street Commons which did employ a lot of local labor but understands that was not the
perception. It was a private developer who issued the contracts and they had the
authority to go out for bid and chose the contractors that they so desired to chose. The
Kroc Center also had a private owner/developer and they are in fact hiring local
contractors and making a special effort to reach out. He stated that it’s not the zoning
that makes the difference but the owner of the property and how they want to bid that
work. He stated that certainly on the part of the City it is their desire and that of the
Redevelopment Commission to see as many local contractors at the Ignition Park location
as possible as new buildings are being built. He noted that there are constraints in State
Law as far as what they can do in the bidding process and certainly have to abide by
those laws. This is really not a factor of the PUD. Mayor Luecke used an example of
this property staying as industrial zoning; there is neither guarantee with industrial zoning
that it would be local contractors that would build those buildings nor any other zoning.
It is a function of the owner and their desire to balance the best price that they can get for
the construction work and commitment to the local community.
Councilmember Henry Davis, Jr., stated that the Mayor speaks as if the owner is not the
City.
Mayor Luecke stated that he spoke to that and said that the Redevelopment Commission
and the Administration would like to see as much local participation as possible but they
do have a responsibility to their rate payers and their taxpayers and State Law recognizes
that and we must bid and hire the lowest qualified bidder for the job. So you can’t
necessarily say that it’s going to be just South Bend companies that work on the job even
if you would like to do that.
Councilmember Henry Davis, Jr., stated that he understands that and that it’s called
discrimination. The only thing that he is saying is that his examples have shown to be the
direct opposite of what he is asking for. That’s it; it is what it is and let the horses out of
the barn. Councilmember Henry Davis Jr., thanked Mayor Luecke.
Coucilmember Kirsits stated that he believes Councilmember Henry Davis Jr.’s questions
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concerning local contractors should be addressed with a bill that is up for 1 reading
tonight and that is Bill No. 86-10 addressing affirmative action procedures.
Councilmember Henry Davis, Jr., stated that his first question was does the Council
really have to change the zoning classification at all on this property or could it just stay
the same.
Councilmember Kirsits stated that he believes the zoning change to PUD is necessary.
He stated that it is a safety precaution for future potential developers to have a safety net
in place and not have to worry about who is going to build next to them and wonder if it
will affect his business.
Councilmember Henry Davis, Jr., stated that he is fine with it and is done.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Oliver Davis made a motion for favorable
recommendation to full Council concerning this bill as substituted and to include the
amendment to the PUD to include on page 21 (c) to include: An Architectural Review
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REGULAR MEETING DECEMBER 13, 2010
Board (“ARB”) shall be established for Ignition Park to include an appointment from the
South Bend Common Council. Councilmember White seconded the motion which
carried by a voice vote of nine (9) ayes.
BILL NO. 76-10 PUBLIC HEARING ON A BILL OF THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
CREATING AN UNEMPLOYMENT COMPENSATION
INSURANCE FUND (#713)
BILL NO. 77-10 PUBLIC HEARING ON A BILL OF THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
CREATING A COMMUNITY AND ECONOMIC
DEVELOPMENT ADMINISTRATION FUND (#211)
BILL NO. 78-10 PUBLIC HEARING ON A BILL OF THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
ESTABLISHING THE 2020 SEWAGE WORKS
REVENUE BOND CONSTRUCTION FUND (#658)
Councilmember Varner made a motion to combine Bill Nos. 76-10; 77-10 and 78-10 for
purposes of public hearing. Councilmember Oliver Davis seconded the motion which
carried by a voice vote of nine (9) ayes.
Councilmember LaFountain, Chairperson, Personnel & Finance Committee reported that
this committee held public hearings on Bill Nos. 76-10; 77-10 and 78-10 this afternoon
and sends them to the full Council with favorable recommendations.
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Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson
Blvd., South Bend, Indiana, made the presentation for this bill.
Mr. Zientara advised that Fund #713; #211 and #658 are the numbers of the new funds
and the City Administration believes that it is in the best interest of the City to establish
these funds for better accounting controls that are required by the bond covenants with
respect to the bond construction fund which are required by good financial control and
accountability in the case of the three Community and Economic Development
Administration Fund and in the case of the unemployment compensation insurance fund.
Mayor Luecke brought to the Council attention that there is a scrivener’s error on the
Council’s Agenda on Bill No. 78-10 establishing the 2020 Sewage Works Revenue Bond
Construction Fund #658 it should be establishing the 2010 Sewage Works Revenue Bond
Construction Fund #658. He noted that the bill is correct, it is just on the Agenda.
This being the time heretofore set for the Public Hearing on the above bills, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to these bills, Councilmember Dieter made a motion for favorable
recommendation to full Council concerning Bill No. 76-10. Councilmember Oliver
Davis seconded the motion which carried by a voice vote of nine (9) ayes.
Councilmember Oliver Davis made a motion for favorable recommendation to full
Council concerning Bill No. 77-10. Councilmember Dieter seconded the motion which
carried by a roll call vote of nine (9) ayes. Councilmember Dieter made a motion for
favorable recommendation to Council concerning Bill No. 78-10. Councilmember White
seconded the motion which carried by a voice vote of eight (8) ayes and one (1) nay
(Councilmember Henry Davis, Jr.)
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REGULAR MEETING DECEMBER 13, 2010
BILL NO. 79-10 PUBLIC HEARING ON A BILL OF THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
APPROPRIATING ADDITIONAL FUNDS OF $157,000
FROM THE CENTURY CENTER FUND (#670)
Councilmember LaFountain, Chairperson, Personnel & Finance Committee reported that
this committee held a public hearing on this bill this afternoon and sends it to the full
Council with a favorable recommendation.
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Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson
Blvd., South Bend, Indiana, made the presentation for this bill.
Mr. Zientara advised that the City desires to settle the Old National Bank debt obligation
upon which settlement would save the city money in interest and finance cost of the
remaining debt obligation. The current debt service interest rate is 3.58% and exceeds
the interest rate earned on existing Century Center related deposits and investments. The
maturity date on the existing debt is January, 2013. Sufficient cash reserves exist at
present within Century Center operations to affect this debt settlement without financial
strain to ongoing Century Center operations. The Century Center Board of Managers
approved the debt settlement action. He asked for the Council’s favorable consideration.
This being the time heretofore set for the Public Hearing on the above bills, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Dieter made a motion for favorable
recommendation to full Council concerning this bill. Councilmember Oliver Davis
seconded the motion which carried by a voice vote of nine (9) ayes.
BILL NO. 80-10 PUBLIC HEARING ON A BILL OF THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
TRANSFERRING $440,000 FROM THE RAINY DAY
FUND NO. 102 TO THE HALL OF FAME DEBT
SERVICE FUND 313 WITHIN THE CITY OF SOUTH
BEND
Councilmember LaFountain, Chairperson, Personnel & Finance Committee reported that
this committee held a public hearing on this bill this afternoon and sends it to the full
Council with a favorable recommendation.
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Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson
Blvd., South Bend, Indiana, made the presentation for this bill.
Mr. Zientara advised that do to possible delays in receipt of certain property tax revenue
from the County yet in December 2010 it has become necessary to temporarily transfer
monies from various funds within the city to depleted funds within the city to meet
current operational expenses. All funds from which temporary transfers are to be made
have sufficient monies to accommodate the temporary transfers. Once property tax
revenue is received from the County the funds will be returned to the loan fund source.
Mr. Zientara asked for the Council’s favorable consideration.
This being the time heretofore set for the Public Hearing on the above bills, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Oliver Davis made a motion for favorable
recommendation to full Council concerning this bill. Councilmember White seconded
the motion which carried by a voice vote of nine (9) ayes.
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REGULAR MEETING DECEMBER 13, 2010
BILL NO. 81-10 PUBLIC HEARING ON A BILL OF THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
APPROPRIATING ADDITIONAL FUNDS FOR
CERTAIN DEPARTMENTAL AND CITY SERVICES
OPERATIONS IN 2010 OF $785,473 FROM GENERAL
FUND (#101), $442,128 FROM LIABILITY
INSURANCE FUND (#226), $3,000 FROM HUMAN
RIGHTS GRANTS FUND (#258), $600,000 FROM EMS
CAPITAL FUND (#288), $4,000,000 FROM COUNTY
OPTION INCOME TAX FUND (#404), $5,300,000
FROM UDAG FUND (#410), AND $137,804 FROM
HALL OF FAME CAPITAL FUND (#677)
Councilmember LaFountain, Chairperson, Personnel & Finance Committee reported that
this committee held a public hearing on this bill this afternoon and sends it to the full
Council with no recommendation.
Councilmember Dieter disclosed that he is a member of the South Bend Police
Department and has filed his conflict of interest form with the Office of the City Clerk,
St. Joseph County Clerk and the State of Indiana, and after discussion with Chief Deputy
City Attorney Aladean DeRose it was determined that no conflict exists.
Councilmember Al “Buddy” Kirsits disclosed that he is a member of the South Bend Fire
Department and has filed his conflict of interest form with the Office of the City Clerk,
St. Joseph County Clerk and the State of Indiana, and after discussion with Chief Deputy
City Attorney Aladean DeRose it was determined that no conflict exists.
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Mayor Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend,
Indiana, stated that he and Gregg Zientara, City Controller would be making the
presentation for this bill.
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Mr. Zientara stated that in the first fund 101 General Fund for $654,372 is the 2 draw of
the energy conservation grant funds received from the Feds September 2010. Monies to
be spent on traffic signal optimization study and other energy projects. No net funds to
be expended by the city. The next fund 101 General Fund for $115,546 is to reimburse
police officers for gasoline cost deducted from officer paychecks from July 2008 to July
2010. These monies would be returned to city police officers. These funds were allowed
for deduction from officer paychecks at the request of the FOP to help at that time to
defer high gasoline costs for the City of South Bend. With this appropriation no net
funds expended by the city. The next fund 101 General Fund for $15,555 is to use
remaining available DNR grant funds to purchase flash beacons, poles & panels for use at
pedestrian crossings. No net funds expended by the city. Fund #226 Liability Insurance
in the amount of $442,128 is new monies required to budget authorize already expended
liability settlements that occurred during the course of 2010. Fund #258 Human Rights
Grant in the amount of $3,000 is passed through grant monies. No net funds expended by
the City. Fund #288 EMS Capital in the amount of $600,000 in Federal Grant monies for
the purchase of a new Quint fire department vehicle. Monies will be expended in fiscal
2011, however, appropriation required to enable issuance of P.O. and encumbrance of
monies. Balance of monies 295k available in EMS Fund 288.
Mayor Luecke advised that Fund #404 County Option Income Tax (COIT) in the amount
of $100,000 is for the design and installation of high efficiency heaters in the Potawatomi
Conservatory replacing antiquated equipment. They had concerns that the boiler might
not make it through the winter and wanted to have heat in place to be able to sustain the
plants and fits in with the future plan for the greenhouse and conservatories. The
remaining $3,900,000 in Fund #404 COIT couples with 5.3 million dollars from the
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UDAG fund for purchase of the garage which is beneath the 1 Source and Marriott
facilities in downtown South Bend. Of the 3.9 million dollars of COIT money 1.2
million dollars is a direct investment of the purchase of the garage. 2.7 million dollars is a
loan to the UDAG fund so that it is able to make the 5.3 million dollar companion
investment in the purchase of the garage. He stated that with the UDAG dollars they
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REGULAR MEETING DECEMBER 13, 2010
have 2.6 million dollars on hand and are expecting a repayment of an additional 2.7
million dollars over a number of years. So they are borrowing that 2.7 million dollars
from COIT to be repaid by the UDAG fund as monies come in. For the 6.5 million dollar
total purchase, again 1.2 million dollars is a direct investment from the COIT fund and
5.3 million dollars will be from UDAG funds both on hand and to be received over the
next several years. Mayor Luecke asked so why are we asking to purchase the garage
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beneath the 1 Source Bank and Marriott Hotel and there is a second piece that the
Council will be asked to vote on later this evening in a resolution that approves that
purchase of the garage by the Redevelopment Commission. He stated they he is asking
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to make this investment as a way to induce additional private investment at 1 Source
Bank and Host Hotel and Resorts which is the owner of the Marriott portion of the
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building. He stated that they have had ongoing discussions with both 1 Source and Host
about reinvestment in their building and their commitments to staying in downtown
South Bend. Mayor Luecke stated that he is grateful to have both these fine businesses in
downtown as Brad Toothacker said so eloquently this afternoon that they really are the
anchor tenants in downtown South Bend. It is because of their location in downtown
South Bend that others can survive and thrive in downtown South Bend and allows us to
build additional investments in downtown South Bend to really bring up the activity and
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thrive here. He stated that as they had begun discussions proactively with 1 Source and
understanding that their lease was coming to an end during that time period they
discovered that the Marriott Hotel was also coming to the end of their lease. Host Resort
Hotels and Properties perhaps would be looking at an alternative use of that facility rather
than a Marriott Hotel. That was distressing enough to the City of South Bend as well as
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1 Source Bank who clearly wants to have a great neighbor in that wonderful facility in
downtown South Bend. So they worked very hard to create a three-party agreement that
will again induce additional private sector investment that more than matches the public
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sector investment of this project that will received a commitment from 1 Source to stay
for ten (10) years in that facility and a commitment from Host that they will maintain an
upper up scale hotel in that facility for seven years that provides that city dollars would
be put in an escrow and will go into the project last. That private dollars committed
would be spent first and draw down on city dollars. If for some reason they do not meet
their commitments those City dollars will return to the City of South Bend, and there is
also a claw back provision agreement that if Host does not meet some further
commitments in its agreement that there would be a penalty of $750,000 in addition to
the City dollars that would not be expended. Mayor Luecke stated that he wanted to be
very clear that all city dollars used for the purchase of the garage are to be reinvested in
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this facility in the case of 1 Source and a few other city facilities that they own. These
dollars are going into the project and will bring additional private investment in as they
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move forward. In particular both 1 Source and Host are interested in improvements into
the Atrium and there is a commitment of at least 1.25 million dollars would be invested
in the Atrium to make improvements there and will probably be one of the first
improvements there moving forward. In addition, there has been some confusion about
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how much money 1 Source received and how much Host will receive. He stated that 1
Source will receive 30% of the 6.5 million dollars because that is their share of ownership
of the garage that underlies the two properties. Host will receive 70% of that money, and
again all of that money is going back into the building. This is extremely important
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because there are deadlines that need to be met. 1 Source had a deadline of the end of
the year to make it’s commitment on extended it’s lease on it’s property and wanted to
make sure it had a good neighbor in it’s facility before making that commitment and is
certainly understandable. So it is important for them to be able to close on the sale of the
garage by the end of this year. He stated that they all wish that they could have brought
this agreement to the Council earlier but it was protracted negotiations that all parties
have worked very hard on and are finally able to bring this before the Council with the
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support Host, 1 Source and the City of South Bend and ask for the Council favorable
approval of this appropriation. Mayor Luecke invited Richard Nussbaum to say a few
words about this project.
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REGULAR MEETING DECEMBER 13, 2010
Richard Nussbaum, Attorney at Law, 210 S. Michigan Street, South Bend, Indiana, stated
that he would like to address some of the questions that were raised at the committee
meeting this afternoon. First, despite the fact that there were many different parties,
many different agendas in terms of what individual parties wanted to see come out of
this. He stated that all the parties in the beginning wanted to accomplish one thing and
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that was to prevent a termination of 1 Sources lease at the downtown site. He stated that
he thinks despite the fact that they are coming up on a deadline, it should be very clear
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that the attorney’s for 1 Source Phil Faccenda from Barnes & Thornburg as well as the
attorney’s for Host, Rich Hill from Baker & Daniels and behalf of himself for the
Commission that was their primary goal. He stated that he believes that all parties
worked very hard in order to do that. In conjunction with that overriding goal there is
this goal of maintaining an upscale hotel at the site. For over the past 30 years there has
been a Marriott Hotel that has been classified as an upper upscale hotel and it is
everyone’s desire to maintain that status that brand on site. It is coincidence that the
branding that Marriott has with Host and that their agreement is also coming up for
renewal as well around this time and he believes that theirs carries over into 2011 and it
is their hope by virtue that the proceeds of this garage sale are going into the
improvements of the hotel that it will continue to be a Marriott. In the event that it is not
a Marriott and there is no indication at this point that it is not a Marriott that there might
be some other hotel at that site they have to plan for these kinds of events with Host and
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with 1 Source and the City that they arranged for a list of hotels that would be
satisfactory to all the parties that would satisfy this arrangement. Those listing of hotels
are found in Exhibit “D” which is the up scale hotels and there is also a website that is
referred to in the agreement that lists the upper up scale hotels and Marriott is one of
those on that list. They would be thrilled if Marriott doesn’t move but if one of those
other hotels such as a Hyatt or Hilton or any of the other hotels that are listed there would
come on board. They hope that by making these improvements that would happen. In
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the event that wouldn’t happen 1 Source is comfortable with that list that you see on
Exhibit “D.” There was also some question about Exhibit “E” and some copies that the
Council received did not have an Exhibit “E” attached and there was some questioning
about that. Mr. Nussbaum stated that Exhibit “E” is a copy from the Uniform System of
Accounts from the lodging industry; it’s a publication that is used within the business to
calculate annual net operating income. There is some language in the agreement that
indicates that if the annual net operating income goes below a certain level that provides
an out for the hotel. Mr. Nussbaum stated that the out doesn’t occur until all of the
improvements are done. He stated that every word of this agreement is geared toward
making sure that those improvements are done and reiterated that there is no mystery to
Exhibit “E”, it was a widely discussed and agreed upon part of this agreement that was
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agreed upon by 1 Source, the City and by Host. He stated that the Mayor has gone into
great detail why and how the proceeds are going to occur between the COIT and UDAG
funds so he won’t go into that. He stated that he would like to address the question of
why would the city do this and how can it be explained to the constituents of the Council
why this is going to occur. First of all it’s an historic business to Downtown South Bend,
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1 Source Bank has been in downtown South Bend since 1863. Mr. Nussbaum reflected
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back on the site where the Marriott Hotel and 1 Source Bank now sit, it was called the
hole. Approximately 40 years ago it was a place to dump all the excess snow during the
winter months. He stated that he got to know a great man by the name of Mike
Carmichael who had a different vision for that hole. He stated that he worked very hard
in his life to make that vision come true. Although it wasn’t his vision to have the
building that is there now, the vision of Mike Carmichael was carried on by Chris
Murphy. He nailed down thirty years ago that building and he maintains his position
with the bank now and it has been his goal to try to get this deal done so that things
would continue. That building which is 30 years old and needs a lot of work, that the
work would be done and that we could continue on for many, many more years to come
at that site. They would also like to accomplish by keeping an upper upscale hotel next to
the Century Center which provides a wonderful marketing opportunity to attract
conventions and events at the convention center by having that hotel right next to it. It
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would also provide a high class and an appropriate neighbor to the 1 Source Office
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Facility including 1 Source Bank and Barnes & Thornburg who is a major tenant there
as well as for Merrill Lynch and some of the other tenants there as well. There would be
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700 direct jobs retained in downtown South Bend as a result of this. 600 from 1 Source
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REGULAR MEETING DECEMBER 13, 2010
about 100 from Host and approximately 300 indirect jobs, 200 from Barnes & Thornburg
and the balance from the rest of the tenants, so that’s about 1,000 jobs that would be
retained as a result of this and would be working in downtown South Bend. There would
be construction on a multi-million dollar project in downtown South Bend over a period
of three years of about 8.25 million dollars that the construction would go into that
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building on the office side and on the hotel side as well as some other properties that 1
Source owns, including the First Bank Building located on West Jefferson Blvd. He
stated that is was so eloquently put by individuals that spoke at the committee meeting
that the jobs at the hotel provide entry level positions for people who perhaps need some
help on their way up the employment scale or because of their education that maybe they
only have a high school or GED that they could only do housekeeping jobs or some other
jobs that are done at either the Century Center or the Hotel. He stated that he believes
this is an important economic project for this community, it’s something that they have
worked very hard to make an agreement in place that is fair to all parties, there is a
deadline in order to bring this home and asked for the Council’s help to do that before the
end of this year.
Mayor Luecke stated that there is one final component before the Council tonight and
that is to appropriate $137,804 dollars from Fund #677 Hall of Fame Capital to reimburse
the National Football Foundation for repairs and maintenance expense agreed to be paid
by the city. These are part of a global settlement as the hall is moved from South Bend.
Mayor Luecke stated that they have reached an agreement with the NFF for 2011 with an
option to extend until 2012. He stated that there is also a component which would
require the NFF to cease operations in October 2011 and be fully out of the Hall by
December 2011 if by the end of March they are able to identify an appropriate user for
the Hall to begin to move in 2012. As part of the global settlement the NFF will be able
to retain about 450,000 dollars and dollars that have been turned over to them for
operations for the Hall with the interim agreements, however, the other components is
that the 1.9 million dollars which they loaned to the City to cover operations earlier on
would not be required to be repaid by the City. Mayor Luecke stated that all in all this is
a good agreement for the City as they transition the Hall of Fame out of the City of South
Bend and again asked for the Council favorable consideration of this bill.
This being the time heretofore set for the Public Hearing on the above bills, proponents
and opponents were given an opportunity to be heard.
The following individuals spoke in favor of this bill.
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Mr. Chris Murphy, Chairman, CEO, 1 Source Corporation and Chairman, CEO, 1
Source Bank, stated that he is here to speak in favor of this bill. Mr. Murphy stated that
approximately 35 years ago he came here to complete a dream that his father-in-law had
in filling that hole in downtown South Bend. He stated that his father-in-law had hoped
that it would be the headquarters for the then known Associates. He stated that as you
might recall Associates ended up moving their headquarters which inevitably may have
been a factor that killed his father-in-law. It broke his father-in-law’s heart in trying to
keep them here. Mr. Murphy stated that he made a commitment and worked very hard
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with the Council’s predecessors to work to attract federal monies to create the 1 Source
Center and attract a hotel to come here and finally reached an agreement with the Marriot
Corporation. He stated that he didn’t think that 30 some years later he would be standing
here today talking about the same property. He stated that they had a 30 year lease on
that property and after it was completed and this is pre 1976 tax act the building was sold
for a lower operating cost. The same happened with the Marriott hotel, they ended up
leasing it back from an investment group out of Minneapolis, and have paid
approximately 18 million dollars over that period of time. He stated that the lease was
coming up and there were several options to renew it, one was a very expensive option
and the other was the option to buy it. He stated that they decided to make an offer to
buy the building and thought that would be an easy way to settle it and then put money
back into the building to restore it. He stated that as they started that process three things
happened. First of all the owner’s did not want to sell the building, they believed that the
should continue to own it as an investment property, but they would entertain a lease
agreement. Then in the middle of all that they got wind that the Marriott may be
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REGULAR MEETING DECEMBER 13, 2010
converted into a senior citizen facility or student housing and in fact that Host Marriott
was selling the property quietly. Also, with all that going on they learned that Barnes &
Thornburg has signed a letter of intent to move out of the building and go elsewhere out
towards the Eddy Street Commons area. The did not want to be the only occupants of the
building and have to pay for the entire operation of that building so they started to look at
their other opportunities and contacted the city and said that they needed to know what
was going on here and that they would like to help sponsor bringing the hotel and the
City together to see if something could be done. Mr. Murphy stated that they certainly
would like to stay here because as it was mentioned before they have been here since
1863, this is home, but they are also a company that does business throughout the United
States, Canada, Latin America, South America and somewhat in Europe. They have
shareholders all over the country and have to answer to those shareholders as well as his
colleagues. They were getting to a point in time in the year that their lease was going to
be up and there wouldn’t be time to do anything else and it was clear that the landlord
would hold them to a very tight timeframe and so they worked with the city to find a
solution to retaining the Marriott or if not retaining them to make sure that what ever
would replace them would be a quality operation to downtown and the building that they
occupy that sits in the middle of the city. He thinks that they have been able to achieve
that result and will tell the Council that he is not happy with the result because there were
a number of times that he got frustrated and the Mayor was much more patient than he
was during the negotiations. He stated that the Mayor worked hard to make sure that this
stayed together because a number of time his board stated that it was time to move on and
make sure that they have a facility that there people could move into. He stated that in
that building they employ approximately 380 people and pay approximately 23 million
dollars in payroll to those employees. He stated that they employ approximately 600
people in South Bend and pay approximately 35 million dollars to the people in South
Bend. He stated that they want to stay here and that they have 400 people that work
downtown, eat lunch at the Subway, Trios, Jimmy Johns, BW3’s and the Emporium, and
patronize Dainty Maid as you will notice by his size, patronize the shoe shops, Wygants,
the Mole Hole, energized by South Bend Chocolates and their coffee. They stay
downtown at night and attend plays at the South Bend Civic Theatre and symphony’s at
the Morris Performing Arts Center. He noted that the bank uses Century Center for all of
their officer’s meetings, sales meetings and just last week the employees Annual
Christmas Party. He stated that they have always believed in community leadership by
giving back to the community in both their human and financial resources. He stated that
they contribute over ¾ of a million dollars to programs in and around the South Bend
Area to make sure that they have a strong social safety net, health programs and
educational programs in the community. He stated that they would like to continue to do
that and to continue to call South Bend their headquarters. But there is a deadline on this,
they have to get moving on this to either find another place, build another place by
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December 31 is what their owners and they have agreed to. Mr. Murphy asked the
Council’s favorable support so they can put this whole project together. He stated that is
was not an easy project because there were actually four different parties involved, the
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owners of the building, 1 Source, Marriot and the City and also Barnes & Thornburg
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who was important t 1 Source as being a 1 class law firm in downtown South Bend that
they could work next to. He encouraged the Council for their favorable support of the
project.
Greg Downes, 101 N. Michigan Street (American Trust Place), South Bend, Indiana,
spoke in favor of this bill.
Mr. Downes advised that he is speaking tonight as a downtown resident who lives right
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across the street from 1 Source and also is speaking tonight as the CEO of Gibson
Insurance Group with offices at 130 S. Main Street, South Bend, Indiana, stated that they
employ approximately 55 people in downtown South Bend. Mr. Downes also stated that
he is addressing the Council as a member of the Redevelopment Commission for the past
five years. He stated that this is an excellent project. It’s a great thing for downtown
South Bend, it’s the reason that he lives in downtown South Bend and one of the reasons
that he chose to move into downtown South Bend and make a significant personal
investment in downtown South Bend. It’s also the reason that he chose to move his
company across the river into downtown South Bend and earlier this year he decided to
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REGULAR MEETING DECEMBER 13, 2010
extend their lease for the next several years to stay in downtown South Bend. He stated
that it was mentioned that there are approximately 1,000 jobs involved and he feels that is
a very conservative estimate when you think about all the other businesses in downtown
South Bend that want to be in downtown South Bend because this is in fact the center of
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commerce. It’s the center of commerce because they have fine companies such as 1
Source and Barnes & Thornburg that are located here; it’s why he is here and why he
wants to stay here. He stated that he thinks the other issues here are and he can’t imagine
Century Center continuing to be successful without having an upscale or upper upscale
hotel right across the street from Century Center. He stated that he cannot imagine how
they would be able to attract new conventions to South Bend, which is good for all of us.
He stated not to forget that the garage itself is just a few doors down from where the
Morris Performing Arts Center and the Palais Royale and with living downtown he
knows just how much traffic there is in downtown South Bend and its fabulous and we
need parking garage to support the Morris/Palais and we need that parking garage to
support the restaurants in downtown South Bend. He stated that this is a great investment
and urged the Council to approve it.
Mark Tarner, 1502 E. LaSalle Avenue, South Bend, Indiana, stated that he is the owner
of the South Bend Chocolate Company located on South Michigan Street and the
Chocolate Factory located on West Sample Street. He stated that he cannot imagine
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downtown South Bend without 1 Source. He stated that he believes there are
approximately 5,000 workers in downtown South Bend and those 1,000 workers
represent 20% of those 5,000 workers. That is a huge amount and thinks that it would
have a devastating impact on the City if they were not here. Mr. Tarner urged the
Council’s favorable support and even though Mr. Murphy mentioned him last he knows
that he is first in his heart or at least his wife’s heart.
The following individuals spoke in opposition to this bill:
Marty Wolfson, 809 Park Avenue, South Bend, Indiana, spoke in opposition to this bill.
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Mr. Wolfson stated that he is in agreement that retaining 1 Source in South Bend is a
good thing. However, he stated that he has some questions regarding this deal. Three
questions in particular. First, why are County Option Income Tax (COIT) dollars being
use. When the issue of Local Option Income Tax (LOIT) was raised last year which
included an increase in the tax rate for COIT it was his understanding and that of the
general public that these income tax rate increases were necessary in order to preserve
vital public services such as police and fire. It wasn’t portrayed that they would be used
in deals of this sort. Secondly, and this may be due to his ignorance about hearing about
upper upscale only about two days ago, but he wonder if there are no people of ordinary
means who attend conventions at the Century Center. Why is it so necessary to have an
upper upscale hotel in that location? Thirdly, Councilmember Varner raised the question
in the committee meeting this afternoon about kicking the can down the road and the
possibility that other important companies and there are certainly other important
companies in downtown South Bend who might look at this deal and say they want the
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deal like 1 Source and Marriott got. He stated that he was just wondering what the City
Administration and the Council would say if that indeed does occur.
Cheryl Ashe, 3930 Langley, South Bend, Indiana, stated that she heard in the committee
meeting this afternoon that after the ten years is up that the parking garage would revert
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back to 1 Source and the Marriott and wondered if that was true.
In Rebuttal, Mayor Luecke answered why are COIT dollars being used and wanted to
dispel the misconception that they are using any of the LOIT dollars that were approved
last year. He stated that there were three components to that tax rate, one was a local
option income tax for property tax relief every dollar of that local option income tax is
going to property tax relief in St. Joseph County for all categories of real estate.
Secondly was the Public Safety Local Option Income Tax and those dollars are
generating somewhere between 5 and 6 million dollars each year for the City of South
Bend and are being used to fund Firefighter and Police Officer’s positions and all of
those dollars are being used for exactly what they said they would be used for and if they
did not have those dollars they would have been forced to lay off police officers and
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REGULAR MEETING DECEMBER 13, 2010
firefighters. Thirdly, there was also two-tenths of a percent increase in the economic
development income tax dollars and those dollars are not being used for this. Mayor
Luecke advised that his presentation as he asked for those new dollars for EDIT should
be saved and used for capital projects and investments in city infrastructure and are doing
that they are committed to putting 2.5 million dollars a year from those dollars for a long-
term control plan for sewers which if they would not have had those dollars would have
meant a larger increase on the wastewater treatment plant users so they are using those
dollars to write down the rate for the city’s utilities users. The question about the parking
garage is yes, this deal is structured so that the City will not own the parking garage for
ever. He stated that they really don’t want to own it long term because there are long
term costs and expenses that go along with that. The agreement is such that first off the
dollars that they are paying to acquire the garage go into the project and think that is
critical and important. Secondly, the bank and host will continue to operate, manage and
maintain the parking garage even though the city has ownership. This is similar to Eddy
Street Commons where they built a new parking structure, leased it to Kite Realty and
they are maintaining it for a period of twenty years and at the end of that time period will
own that structure. At the end of that time period there will probably be significant
dollars that will have to go into that structure, so they prefer to have Kite responsible for
that those investments and this is why they want Host and the bank be responsible for the
maintenance and costs long term well. Mayor Luecke asked for the Council’s favorable
recommendation and stated that these are two anchor tenants in downtown South Bend
and there are many other businesses that are dependent upon them being here and have
worked awfully hard to come to an agreement that he believes will secure their position
in downtown South Bend for a long time and in addition see improvements to this
landmark building in downtown South Bend that is really a part of the foundation of the
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redevelopment downtown and push the vitality level to what it is today and thanked 1
Source for being a great corporate citizen and for all the work that they do in this
community and that he is glad to be able to play in a role in helping to keep them in
downtown and to help them make improvements to their building as they have helped
other businesses as you will recall they worked with Baker & Daniels as they moved into
the Key Bank Building and they made renovations and invested public dollars to assist
with that project. Will there be other business that come to the city in the future,
undoubtedly, there will be, and they will make analysis as they best can, and the
businesses that are coming to the City to ask for dollar that they may or may not have to
invest in them, he can say that he can’t think of a more important project in downtown
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South Bend to sustain and improve the 1 Source Center and keep an upper upscale hotel
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and 1 Source Bank there for the time being.
Councilmember Oliver Davis asked why is it necessary to have an upper upscale hotel
downtown.
Mayor Luecke stated that they believe that it is important to have a premium mark in
downtown South Bend as they sell the community and they are other hotels certain in
downtown that have a lower price point and convention goers can certainly take
advantage of as well as other visitors to the community. The Marriott also works with the
convention center for price points for conventions so that we can have a good tool to
attract conventions to the community. He stated that as they project an image they think
that the Marriott has a better mark than for example the “Easy 8” hotel, which they don’t
think would set the standard that they would want to have in downtown or in connection
with Century Center. So that is why they believe it was very important to have an upper
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upscale hotel next to the Century Center as well as for 1 Source, because they are
making an additional commitment to this community on their long term commitment to
this community and they want a neighbor that is an appropriate neighbor for them so, it
was important to all of them that we secured a mark that would represent the community
well and be an asset to downtown.
Councilmember Henry Davis asked what does South Bend have to gain out of this. He
stated that to him South Bend doesn’t gain anything it’s a maintain not a gain. He also
stated that he spoke with Mr. Murphy are trying to fill some of the vacant store fronts in
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downtown South Bend and was told that 1 Source has some programs to help with small
businesses and he understands in this economy that it is hard to loan money in this
16
REGULAR MEETING DECEMBER 13, 2010
economic climate. But if there was a way that they could start designating maybe a block
or several stores to start enticing businesses to come back downtown South Bend as they
are trying to capitalize on this opportunity rather than being here again 30 years later
talking about some of the same things. He thanked everyone for their time and
commitment to the area but look forward to sitting down and working at something new
so they can start building instead of waiting and then 30 years later here we are again.
Councilmember Oliver Davis stated that he was glad to hear that the City was able to
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work with 1 Source and the Marriott. He stated that so many times he has heard
businesses say that it is just to hard to work with the City Administration to try work
together to put a deal together and that the City is anti-business. He commended all
parties involved.
Councilmember Dieter commended everyone involved in making this project a success.
He also noted that before this location was called the hole it was the Granada. In
addition, Councilmember Dieter made a motion for favorable recommendation to full
Council concerning this bill. Councilmember Oliver Davis seconded the motion.
Councilmember Rouse called for un-readiness and stated that he has a problem with this
project and that it is very much due to the fact that they have not explained to the public
the effort that goes into redevelopment. Councilmember Rouse used Eddy Street
Commons as an example and stated that it was not totally a private development. He
stated that it was a partnership of a variety of private sector and government entities.
Over a period of time they made what was once a blighted community. The same thing
applies to this project because we are investing public dollars to be encumbered with
private dollars to enhance a downtown facility that needs to be revitalized. So what he is
really saying is that the Mayor has done a really great job but that he just doesn’t seem to
get the message out properly that they are working hard to make a difference in the
community. He stated that he heard this afternoon someone say what difference does it
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make if 1 Source is in downtown South Bend or in Mishawaka, just as long as it is in the
area. And, it was very well explained tonight that it is an issue of it being an anchor, a
stimulator and augmenter for the downtown South Bend Redevelopment area. He
commended the Mayor and his administration along with Community and Economic
Development for their hard work and maybe they would have liked to see something’s
happen a little differently but they didn’t but were able to work a deal that was in the best
interest for all parties involved. Councilmember Rouse stated that he would be voting in
favor of this bill.
Councilmember Varner advised that he has been on the Council for quite some time and
recalls Mr. Turner’s Chocolate Company might not be a good fit for the downtown South
Bend area and that turned out not to be true. He also remembers how devastating it was
when the May, Overfill, Lobber Law firm moved to Mishawaka and recently St. Joseph
Regional Medical Center and WEST. He stated that he isn’t sure that this won’t stop the
flight but hopes that maybe there can be a balance between the private sector and public
sector, such as the Pala is Royale and the Morris Performing Arts Center. He stated that
he wishes that there weren’t public funds in this bill, but also hoped that this will make a
difference.
There being no one else present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Dieter made a motion for favorable
recommendation to full Council concerning this bill. Councilmember Oliver Davis
seconded the motion which carried by a voice vote of nine (9) ayes.
BILL NO. 82-10 PUBLIC HEARING ON A BILL OF THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
FOR BUDGET TRANSFERS FOR VARIOUS
DEPARTMENTS WITHIN THE CITY OF SOUTH
BEND, INDIANA FOR THE YEAR 2010
17
REGULAR MEETING DECEMBER 13, 2010
Councilmember White made a motion to accept the substitute version of this bill.
Councilmember Oliver Davis seconded the motion which carried by voice vote of nine
(9) ayes.
Councilmember Lafontaine, Chairperson, Personnel & Finance Committee reported that
this committee held a public hearing on this bill this afternoon and sends it to the full
Council with a favorable recommendation.
Councilmember Al “Buddy” Karsts disclosed that he is a member of the South Bend Fire
Department and has filed his conflict of interest form with the Office of the City Clerk,
St. Joseph County Clerk and the State of Indiana, and after discussion with Chief Deputy
City Attorney Altadena Depose it was determined that no conflict exists.
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Gregg Sentara, City Controller, 12 Floor County-City Building, 227 W. Jefferson Blvd.,
South Bend, Indiana, made the presentation for this bill.
Mr. Sentara advised that the since the initial filing of this bill, additional budget transfers
have been identified in various departments that were not captured in the initial bill.
These additional transfer request are necessitated by year end capital purchase using
funds originally budgeted in an operating expense category and increased expenditure not
originally included due to oversight by the department in question. He stated that this bill
is requesting some technical adjustments within the budget, this is a typical bill that
happens at year end and it is a net zero appropriation and essentially moves money to
those places within the budget that were needed to have additional appropriations made
for expenditures in 2010.
This being the time heretofore set for the Public Hearing on the above bills, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Oliver Davis made a motion for favorable
recommendation to full Council concerning this bill as substituted. Councilmember
White seconded the motion which carried by a voice vote of nine (9) ayes.
RISE AND REPORT
Councilmember Oliver Davis made a motion to rise and report to the full Council.
Councilmember Dieter 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
REGULAR MEETING RECONVENED
Be it remembered that the Common Council of the City of South Bend reconvened in the
Council Chambers on the fourth floor of the County-City Building at 8:58 p.m. President
Derek D. Dieter presided with nine (9) members present.
18
REGULAR MEETING DECEMBER 13, 2010
BILLS – THIRD READING
ORDINANCE NO. 10058-10 AN ORDINANCE AMENDING THE ZONING
ORDINANCE FOR APPROXIMATELY 84
ACRES LOCATED AT THE SOUTHEAST
QUADRANT OF SAMPLE STREET AND
PRAIRIE AVENUE, COUNCILMANIC
DISTRICT 6 IN THE CITY OF SOUTH BEND,
INDIANA
This bill had third reading. Councilmember Kirsits made a motion to amend this bill as
in the Committee of the Whole. Councilmember Oliver Davis seconded the motion
which carried by a voice vote of nine ayes. Additionally, Councilmember White made a
motion to passed this bill as amended. Councilmember Oliver Davis seconded the
motion which carried. The bill passed by a roll call vote of nine (9) ayes.
ORDINANCE NO. 10059-10 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
CREATING AN UNEMPLOYMENT
COMPENSATION INSURANCE FUND (#713)
This bill had third reading. Councilmember White made a motion to pass this bill.
Councilmember Oliver Davis seconded the motion which carried. The bill passed by a
roll call vote of nine (9) ayes.
ORDINANCE NO. 10060-10 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
CREATING A COMMUNITY AND ECONOMIC
DEVELOPMENT ADMINISTRATION FUND
(#211)
This bill had third reading. Councilmember Oliver Davis made a motion to pass this bill.
Councilmember LaFountain seconded the motion which carried. The bill passed by a roll
call vote of nine (9) ayes.
ORDINANCE NO. 10061-10 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
ESTABLISHING THE 2010 SEWAGE WORKS
REVENUE BOND CONSTRUCTION FUND
(#658)
This bill had third reading. Councilmember White made a motion to pass this bill.
Councilmember Oliver Davis seconded the motion which carried. The bill passed by a
roll call vote of eight (8) ayes and one (1) nay (Councilmember Henry Davis, Jr.)
ORDINANCE NO. 10062-10 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
APPROPRIATING ADDITIONAL FUNDS OF
$157,000 FROM THE CENTURY CENTER
FUND (#670)
This bill had third reading. Councilmember Oliver Davis made a motion to pass this bill.
Councilmember White seconded the motion which carried. The bill passed by a roll call
vote of nine (9) ayes.
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REGULAR MEETING DECEMBER 13, 2010
ORDINANCE NO. 10063-10 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
TRANSFERRING $440,000 FROM THE RAINY
DAY FUND NO. 102 TO THE HALL OF FAME
DEBT SERVICE FUND 313 WITHIN THE CITY
OF SOUTH BEND
This bill had third reading. Councilmember Puzzello made a motion to pass this bill.
Councilmember LaFountain seconded the motion which carried. The bill passed by a roll
call vote of nine (9) ayes.
ORDINANCE NO. 10064-10 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
APPROPRIATING ADDITIONAL FUNDS FOR
CERTAIN DEPARTMENTAL AND CITY
SERVICES OPERATIONS IN 2010 OF $785,473
FROM GENERAL FUND (#101), $442,128 FROM
LIABILITY INSURANCE FUND (#226), $3,000
FROM HUMAN RIGHTS GRANTS FUND
(#258), $600,000 FROM EMS CAPITAL FUND
(#288), $4,000,000 FROM COUNTY OPTION
INCOME TAX FUND (#404), $5,300,000 FROM
UDAG FUND (#410), AND $137,804 FROM
HALL OF FAME CAPITAL FUND (#677)
This bill had third reading. Councilmember Varner made a motion to pass this bill.
Councilmember LaFountain seconded the motion which carried. The bill passed by a roll
call vote of nine (9) ayes.
ORDINANCE NO. 10065-10 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
FOR BUDGET TRANSFERS FOR VARIOUS
DEPARTMENTS WITHIN THE CITY OF
SOUTH BEND, INDIANA FOR THE YEAR 2010
This bill had third reading. Councilmember Oliver Davis made a motion to amend this
bill as in the Committee of the Whole. Councilmember White seconded the motion
which carried by a voice vote of nine ayes. Additionally, Councilmember Oliver Davis
made a motion to pass this bill as amended. Councilmember White seconded the motion
which carried. The bill passed by a roll call vote of nine (9) ayes.
RESOLUTIONS
RESOLUTION NO.4068-10 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
APPROVING A PETITION OF THE AREA
BOARD OF ZONING APPEALS FOR THE
PROPERTY LOCATED AT 4611 S. BURNETT
DRIVE SOUTH BEND, INDIANA
WHEREAS, Indiana Code Section 36-7-4-918.6, requires the Common Council
to give notice pursuant to Indiana Code Section 5-14-1.5-5, of its intention to consider
Petitions from the Board of Zoning Appeals for approval or disapproval; and
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REGULAR MEETING DECEMBER 13, 2010
WHEREAS, the Common Council must take action within sixty (60) days after
the Board of Zoning Appeals makes its recommendation to the Council pursuant to I.C.
36-7-4-918.6; and
WHEREAS, the Common Council is required to make a determination in writing
on such requests pursuant to Indiana Code Section 36-7-4-918.4, and
WHEREAS, the South Bend Board of Zoning Appeals has made a
recommendation, pursuant to applicable state law.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA as follows:
SECTION I. The Common Council has provided notice of the hearing on the
Petition from the Board of Zoning Appeals pursuant to Indiana Code Section 5-14-1.5-5,
requesting that a Special Exception be granted for the property located at:
4611 S. Burnett Drive, South Bend, Indiana, 46614 in order to permit: Use of the
property as an indoor firing range and training facility. Additional uses are a gun shop,
work out and self defense training facility along with extremely limited ammunition
reloading for the facility. Variance: Special exception use for a recreational shooting
range and training facility.
SECTION II. Following a presentation by the Petitioner, and after proper public
hearing, the Common Council hereby approves the petition of the South Bend Board of
Zoning Appeals, a copy of which is on file in the Office of the City Clerk.
SECTION III. The Common Council of the City of South Bend, Indiana, hereby
finds that:
1. The proposed use will not be injurious to the public health, safety,
comfort, community moral standards, convenience or general welfare;
2. The proposed use will not injure or adversely affect the use of the adjacent
area or property values therein;
3. The proposed use will be consistent with the character of the district in
which it is located and the land uses authorized therein;
4. The proposed use is compatible with the recommendation of the City of
South Bend Comprehensive plan; all of which is requested by the South Bend Municipal
Code §21-09.03
SECTION IV. Approval is subject to the Petitioner complying with the
reasonable conditions established by the Board of Zoning Appeals which are on file in
the office of the City Clerk.
SECTION V. The Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
s/Derek D. Dieter
Member of the Common Council
Councilmember Kirsits, Chairperson, Zoning and Annexation Committee reported that
this committee held a Public Hearing on this bill this afternoon and sends it to the full
Council with a favorable recommendation.
Mr. Mark Lyons, Assistant Building Commissioner, Building Department, 125 S.
Lafayette Boulevard, South Bend, Indiana, presented the report from the Area Board of
Zoning Appeals.
21
REGULAR MEETING DECEMBER 13, 2010
Mr. Lyons advised that the petitioner is seeking a special exception for a recreational
shooting range and training facility at 4611 S. Burnett Drive. The Board of Zoning
Appeals held a public hearing on November 3, 2010 and sends the bill to the Common
Council with a favorable recommendation.
Mr. Michael Zimmerman, P. O. Box 228 Bremen, Indiana, made the presentation for this
bill.
Mr. Zimmerman advised that they are seeking a special exception use for a recreational
shooting range and training facility. He stated that the actions to be conducted on site
include a standard shooting range using only lead free frangible ammunition. A tactical
shooting range using only lead free frangible ammunition. A shooting house using only
lead free frangible ammunition. A small gun shop, workout facility, martial arts/self
defense training area, meeting rooms offered free to clubs, organization and law
enforcement for shooting and outdoor related purposes, a small reloading area for
reloading ammunition for this facility. Constitutes only 386 square feet of an
approximately 12,000 square foot facility. Only small amounts of powder and primers
will be kept on site and will be kept in separate fire proof cabinets in accordance with
OSHA standards. Mr. Zimmerman stated that this facility is the only public indoor
shooting range in the region if not in the country to offer the use of metal knockdown and
pneumatic/mechanized target systems. Fully lead free facility using only lead free
frangible ammunition. Indoor shooting house open to both the public and law
enforcement. A workout facility for full service training, the ability to train with draw
and fire and tactical reload techniques only allowed on the tactical range. The facility is
open to the public and also offers memberships. It will provide a place for law
enforcement to train indoors and a tactical range offers the ability to simulate different
lighting situations along with sound and light effects simulating police lights and sirens.
The range is handicap accessible. They will offer classes for self defense and firearm
training. Qualified off duty police will be utilized as range officers to take the public
through the shooting house. The officer will receive half the hourly fee. Mr.
Zimmerman noted that the lead free frangible ammunition disintegrates into dust
whenever it comes in contact with anything as hard as itself. Therefore, ricochets are not
an issue and since the range is built to hand high powered rifle rounds there in not the
possibility of a round escaping the range. Mr. Zimmerman stated that this facility will be
very unique as no other facility of this kind is known to exist which is available to the
public. This facility will provide a greatly needed training facility for not only the public
but for area law enforcement agencies. In addition, the facility will promote classes and
instruction in the safe handling and storage of firearms. The facility will draw customers
from all across the region as this facility is the only one of its kind. As a result the
property values will increase and give area businesses the opportunity to do business with
additional customers.
A Public Hearing was held on the resolution at this time.
The following individuals spoke in favor of this bill.
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Mr. Fred Flowers, 421 W. 12 Street, Mishawaka, Indiana, spoke in favor of this bill. He
stated that the closest facility is in New Carlisle. This facility will be closer and allow for
the public to be better educated on how to defend themselves.
Mr. Joe Kellogg, 8566 Black Point Drive, Syracuse, Indiana, spoke in favor of this bill.
He stated that there is no other facility like this one. It will be a great asset for law
enforcement officials as well as the general public.
Mr. Ryan Wardlow, LaPaz, Indiana, urged the Council’s favorable consideration of this
bill.
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Councilmember Oliver Davis stated that he is the 6 District Council representative for
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this area. He welcomed and thanked Mr. Zimmerman to the 6 District of South Bend
and wished him well in this endeavor.
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REGULAR MEETING DECEMBER 13, 2010
Councilmember Dieter disclosed that he is a member of the South Bend Police
Department and maybe assigned to use this facility for training. After discussion with
Chief Deputy City Attorney Aladean DeRose, it was determined that no conflict exists.
There being no one else present wishing to speak either in favor or in opposition to this
Resolution, Councilmember Oliver Davis made a motion to adopt this resolution.
Councilmember Kirsits seconded the motion which carried and the Resolution was
adopted by a roll call vote of nine (9) ayes.
RESOLUTION NO. 4069-10 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND
DESIGNATING CERTAIN AREAS WITHIN THE
CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS 6879 ENTERPRISE
DRIVE AN ECONOMIC REVITALIZATION
AREA FOR PURPOSES OF A (5) FIVE-YEAR
PERSONAL PROPERTY TAX ABATEMENT
FOR G.H.S. CORPORATION D/B/A GHS
STRINGS
WHEREAS, a petition for personal property tax abatement consideration has been
filed with the City Clerk for consideration by the Common Council of the City of South
,
Bend, Indiana, requesting that the area commonly known as 6879 Enterprise Drive South
Bend, Indiana, and which is more particularly described as follows:
Lot lettered “C” as shown on the recorded plat of Olive Road Commerce Park
Section Two, first replat recorded January 22, 1999 as document number
9903188 in the Office of the Recorder of St. Joseph County, Indiana
and which has Key Number 25-1011-0187 a/k/a 71-03-19-300-005.000-009 be
designated as an Economic Revitalization Area under the provisions of Indiana Code 6-
1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and;
WHEREAS, the Department of Community and Economic Development has
concluded an investigation and prepared a report with information sufficient for the
Common Council to determine that the area qualifies as an Economic Revitalization Area
under Indiana Code 6-1.1-12.1, et seq., and South Bend Municipal Code Sections 2-76, et
seq., and has further prepared maps and plats showing the boundaries and such other
information regarding the area in question as required by law; and
WHEREAS, the Community and Economic Development Committee of the
Common Council has reviewed said report and recommended to the Common Council
that the area qualifies as an Economic Revitalization Area.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds pursuant to Indiana
Code 6-1.1-12.1-4.5 et seq., that:
a. The estimate of the cost of the new manufacturing equipment is
reasonable for equipment of that type;
b. That the estimate of the number of individuals that will be employed or
whose employment will be retained by the Petitioner can reasonably be
expected to result from the proposed installation of new manufacturing
equipment;
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REGULAR MEETING DECEMBER 13, 2010
c. That the estimate of the annual salaries of those individuals that will be
employed or whose employment will be retained by the Petitioner can be
reasonably expected to result from the proposed installation of new
manufacturing equipment;
d. Any other benefits about which information was requested are benefits
that can be reasonably expected to result from the proposed new
manufacturing equipment; and
e. The totality of benefits is sufficient to justify the deduction requested.
SECTION II. The Common Council hereby determines and finds that the proposed new
manufacturing equipment can be reasonably expected to yield the benefits identified in
the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal
Property Tax Abatement Consideration and that Statement of Benefits form completed by
the petitioner, said form being prescribed by the State Board of Accounts, are sufficient
to justify the deduction granted under Indiana Code 6-1.1-12.1-4.5.
SECTION III. The Common Council hereby accepts the report and recommendation of
the Department of Community and Economic Development, and the Community and
Economic Development Committee's favorable recommendation, that the area herein
described be designated as an Economic Revitalization Area for purposes of personal
property tax abatement and hereby makes such a designation.
SECTION IV. The Common Council determines that such designation is for personal
property tax abatement only and shall be limited to two (2) calendar years from the date
of the adoption of this Resolution by the Common Council.
SECTION V. The Common Council hereby determines that the property owner is
qualified for and is granted property tax deduction for a period of (5) five years; provided
however, the Petitioner may not receive an economic revitalization area deduction if it
receives an enterprise zone investment deduction under I.C. 6-1.1-45 for the same
property.
SECTION VI. The Common Council directs the City Clerk to cause notice of the
adoption of this Declaratory Resolution for Personal Property Tax Abatement to be
published pursuant to Indiana Code 5-3-1, said publication providing notice of the public
hearing before the Common Council on the proposed confirming of said declaration.
SECTION VII. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
s/Derek D. Dieter
Member of the Common Council
Councilmember Rouse, Chairperson, Community and Economic Development
Committee reported that this committee held a Public Hearing on this bill this afternoon
and sends it to the full Council with a favorable recommendation.
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Mr. Rich Deahl, Attorney at Law, Barnes & Thornburg, 600 1 Source Bank Center
made the presentation for this bill.
Mr. Deahl advised that G.H.S. Corporation is one of the largest domestic manufactures of
strings for fretted instruments, including for example strings of classic, acoustic and
electric guitars, bass instruments, mandolins, banjos, fiddles and many other instruments.
They are proposing to relocate is primary string manufacturing operations to South Bend
in a phased transition process to ramp up production and commence production during
2011. The project consists of the installation of string manufacturing equipment
including, without limitation, automated ball-end machines, and computer monitored
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REGULAR MEETING DECEMBER 13, 2010
string tension and winding equipment. G.H.S. Corporation will be transferring or
purchasing and installing new and used equipment. All of the used equipment will come
from outside the State of Indiana. The estimated cost of the project is $600,000 to
$1,000,000. Mr. Deahl advised that at a cost amount of $600,000 total taxes to be abated
during the five (5) year abatement period are estimated at $26,096 and total taxes to be
paid during the five year abatement period are estimated at $23,746. At a cost of
$1,000,000 total taxes to be abated during the five year abatement period are estimated at
$43,494 and total taxes to be paid during the five year abatement period are estimated at
$39,577. It is estimated that the total project will create at least fifteen (15) new,
permanent full time jobs in the first year of production representing a new annual payroll
of at least $350,000. Because the project is new to South Bend there are no existing jobs.
A Public Hearing was held on the resolution at this time.
There being no one present wishing to speak either in favor or in opposition to this
Resolution, Councilmember Varner made a motion to adopt this resolution.
Councilmember White seconded the motion which carried and the Resolution was
adopted by a roll call vote of nine (9) ayes.
RESOLUTION NO 4070-10 A RESOLUTION RECONFIRMING THE
ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND,
INDIANA, TO BE AN ECONOMIC
REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL PROPERTY TAX
ABATEMENT FOR STANZ FOODSERVICE,
INC. DESIGNATING ADDITIONAL PROPERTY
OWNERS AS FOLLOWS: STANZ REALTY CO.,
LLP AND STANZ CHEESE CO., INC.
WHEREAS, the Common Council of the City of South Bend, Indiana, has
adopted a Declaratory Resolution designating certain areas within the City as Economic
Revitalization Areas for the purpose of tax abatement consideration; and
WHEREAS, the Common Council of the City of South Bend, Indiana, adopted a
Confirmatory Resolution, No. 3896-08, confirming the designation that certain areas
within the City be an Economic Revitalization Area for the purpose of tax abatement
consideration; and
WHEREAS, the petitioner subsequent to adoption of the Confirming Resolution
financed the intended personal property through two other operating entities: Stanz
a
Realty Co., LLP (whose mailing address is P.O. Box 24, South Bend, IN 46624)nd
Stanz Cheese Co., Inc. (whose mailing address is 1840 N. commerce Dr., South Bend, IN
46628); and
WHEREAS, Stanz Realty Co., LLP and Stanz Cheese Co., Inc. are doing business
as (d/b/a) Stanz Foodservice, Inc.; and
WHEREAS, Stanz Foodservice, Inc., Stanz Realty Co., LLP and Stanz Cheese
Co., Inc. are wholly owned by the same three individuals; and
WHEREAS, the personal property acquired is the same as what was originally
contemplated in the original Statement of Benefits and tax abatement petition; and
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REGULAR MEETING DECEMBER 13, 2010
WHEREAS, the goals and objectives originally set out in the petition remain the
same and the location of the personal property is the same as stated in the petition which
is 1840 North Commerce Drive, South Bend, Indiana; and
WHEREAS, due to accounting restrictions and tax laws Stanz Realty Co., LLP
and Stanz Cheese Co., Inc. must each and individually account for and pay property taxes
on the personal property they financed; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public
hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5;
and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrance’s and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution
designating the area described herein as an Economic Revitalization Area for the
purposes of tax abatement. Such designation is for Personal property tax abatement only
and is limited to two (2) calendar years from the date of adoption of the Declaratory
Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owners are
qualified for and are granted Personal property tax deduction for a period of five (5)
years, and further determines that the petition complies with Chapter 2, Article 6, of the
Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq.
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved by the Mayor.
s/Derek D. Dieter
Member of the Common Council
Councilmember Rouse, Chairperson, Community and Economic Development
Committee reported that this committee held a Public Hearing on this bill this afternoon
and sends it to the full Council with a favorable recommendation.
Mr. Mark Harman, President, Stanz Foodservice, Inc., Stanz Realty Co., LLP, Stanz
Cheese Co. Inc., 1840 N. Commerce Drive, South Bend, Indiana, made the presentation
for this bill.
Mr. Harman advised that on August 25, 2008 through Confirming Resolution No. 3896-
08, the Common Council approved a personal property tax abatement for Stanz
Foodservice, Incorporated. Stanz Foodservice is located at 1840 North Commerce Drive.
After the resolution was approved the company completed the acquisition and installation
of the equipment covered by the tax abatement. However, ownership of the personal
property was divided between tow other entities: Stanz Realty Co., LLP and Stanz
Cheese Co., Inc. Those two entities financed the acquisition of the equipment covered by
the tax abatement. The two entities operate and do business as (d/b/a) Stanz Foodservice,
Incorporated. Upon completion of the project the two entities submitted deduction
application forms (Form 103 ERA) in their name to the St. Joseph County Assessor’s
Office. The Assessor’s Office cannot process the forms because the Confirming
Resolution is in the name of Stanz Foodservice, Inc. Stanz Realty Co., LLP and Stanz
Cheese Co.,, Inc are doing business as Stanz Foodservice, Inc. All three entities are
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REGULAR MEETING DECEMBER 13, 2010
owned by the same three individuals, Ms. Shirley Geraghty, Mr. Mark Harman and Mrs.
Wendy Gilliam. Due to accounting restrictions Stanz Realty and Stanz Cheese must
submit the deduction applications for the personal property they actually financed and
own. The kinds of personal property acquired are the same as contemplated in the
original Statement of Benefits (SB-1) and the tax abatement petition. The property is
located at 1840 North Commerce Drive as originally called for in the petition. He stated
that the goals and objectives originally set out in the petition remain the same.
Ownership of the three entities remains the same as when the original Confirming
Resolution was approved.
A Public Hearing was held on the resolution at this time.
There being no one present wishing to speak either in favor or in opposition to this
Resolution, Councilmember Varner made a motion to adopt this resolution.
Councilmember Rouse seconded the motion which carried and the Resolution was
adopted by a roll call vote of nine (9) ayes.
RESOLUTION NO. 4071-10 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
APPROVING AN ORDER OF THE ST. JOSEPH
COUNTY AREA PLAN COMMISSION
APPROVING A CERTAIN DECLARATORY
RESOLUTION AND AN AMENDMENT TO THE
SOUTH BEND CENTRAL DEVELOPMENT
AREA DEVELOPMENT PLAN ADOPTED BY
THE SOUTH BEND REDEVELOPMENT
COMMISSION
WHEREAS, the South Bend Redevelopment Commission (The “Commission”),
the governing body of the South Bend Department of Redevelopment and the
Redevelopment District of the City of South Bend, Indiana, pursuant to Indiana Code 36-
7-14 (the “Act”), approved and adopted a resolution, a copy of which is attached hereto
as Exhibit A, (the “Declaratory Resolution”), amending the acquisition list in the South
Bend Central Development Area Development Plan (the “Plan”) for the South Bend
Central Development Area (the “Area”) and amending the South Bend Central
Development Area Development Plan (the “Plan Amendment” and
WHEREAS, the Plan Amendment calls for the addition of interests in various
parcels located within the Area, to the Acquisition List contained within the Plan; and
WHEREAS, the St. Joseph County Area Plan Commission (the “Plan
Commission”), which is the duly designated and acting official planning body for the
City of South Bend, Indiana (the “City”), approved and adopted a resolution, a copy of
which is attached hereto as Exhibit B, determining that the Declaratory Resolution and
the Plan Amendment conform to the plan of development for the City and approving,
ratifying and confirming the Declaratory Resolution and the Plan Amendment, and
designating such resolution as the written order of the Plan Commission approving the
Declaratory Resolution and the Plan Amendment as required by Section 16 of the Act
(the “Plan Commission Order”) and
WHEREAS, Section 16 of the Act prohibits the Commission from proceeding
until the Plan Commission Order is approved by the municipal legislative body of the
City; and
WHEREAS, the Common Council of the City is the municipal legislative body
of the City and now desires to approved the Plan Commission Order in order to permit
the Commission to proceed with the redevelopment of the Area;
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REGULAR MEETING DECEMBER 13, 2010
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
1.The Plan Commission Order attached hereto is in all respects hereby
approved, ratified and confirmed.
2.This Resolution shall be in full force and effect from and after its adoption
by the Common Council of the City and compliance with procedures
required by law.
PASSED AND ADOPTED by the Common Council of the City of South Bend, Indiana,
th
this 13 Day of December 2010.
s/Derek D. Dieter
Member of the Common Council
Councilmember Rouse, Chairperson, Community and Economic Development
Committee reported that this committee held a Public Hearing on this bill this afternoon
and sends it to the full Council with no recommendation.
th
Mr. Don Inks, Director, Economic Development Department, 12 Floor County-City
Building, 227 W. Boulevard, South Bend, Indiana, made the presentation for this bill.
Mr. Inks advised that this bill would allow for the amendment of the South Bend Central
Development Area Development Plan to add two parcels to the Acquisition List. These
st
two parcels represent the parking garage in the 1 Source/Marriott building. Under a
Memorandum of Understanding previously supplied to the Common Council,
st
Redevelopment’s acquisition of the parking garage will result in retaining 1 Source
Corporation and an upper upscale hotel in the downtown. These two businesses employ
almost 700 people in South Bend. In addition, a total of $14 million (including the $6.5
million dollar garage purchase price) will be invested in the bank, hotel and atrium.
A Public Hearing was held on the resolution at this time.
There being no one present wishing to speak either in favor or in opposition to this
Resolution, Councilmember Oliver Davis made a motion to adopt this resolution.
Councilmember White seconded the motion which carried and the Resolution was
adopted by a roll call vote of nine (9) ayes.
BILLS - FIRST READING
BILL NO. 84-10 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, ANNEXING TO AND
BRINGING WITHIN THE CITY LIMITS OF
SOUTH BEND, INDIANA, CERTAIN LAND IN
CENTRE TOWNSHIP, CONTIGUOUS
THEREWITH, COUNCILMANIC DISTRICT
NUMBER 5, THOMAS W. & JANE M. HENRY,
61175 MIAMI RD. SOUTH BEND, INDIANA
46614
This bill had first reading. Councilmember Varner made a motion to set this bill for
Public Hearing and Second Reading on February 14, 2011 and Third Reading on
February 28, 2011, and send to the Zoning and Annexation Committee. Councilmember
White seconded the motion which carried by a voice vote of nine (9) ayes.
28
REGULAR MEETING DECEMBER 13, 2010
BILL NO. 85-10 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, APPROPRIATING $276, 780
WITHIN FUND 212 FROM THE U.S.
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT SHELTER PLUS CARE
GRANT PROGRAM
This bill had first reading. Councilmember Varner made a motion to set this bill for
Public Hearing and Third Reading on January 10, 2011 and send to the Personnel &
Finance Committee. Councilmember White seconded the motion which carried by a
voice vote of nine (9) ayes.
BILL NO. 86-10 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING CHAPTER 14.5,
ARTICLES 1 AND 2; ADDING ARTICLE 4 OF
THE SOUTH BEND MUNICIPAL CODE
ADDRESSING AFFIRMATIVE ACTION
PROCEDURES
This bill had first reading. Councilmember LaFountain made a motion to set this bill for
Public Hearing and Third Reading on January 10, 2011 and send to the Community and
Economic Development Committee. Councilmember Varner seconded the motion which
carried by a voice vote of nine (9) ayes.
Councilmember White thanked Councilmember Rouse for continued discussion on this
issue to clean up the language in this bill.
BILL NO. 87-10 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING THE 2010
SALARY ORDINANCE TO AUTHORIZE NEW
POSITION TITLES AND SETTING THE
MAXIMUM SALARIES TO BE PAID TO
CERTAIN NON BARGAINING EMPLOYEES
This bill had first reading. Councilmember Puzzello made a motion to set this bill for
Public Hearing and Third Reading on January 10, 2011 and send to the Personnel &
Finance Committee. Councilmember White seconded the motion which carried by a
voice vote of nine (9) ayes.
BILL NO. 88-10 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING ORDINANCE
NO. 10044-10, WHICH FIXED MAXIMUM
WAGES OF TEAMSTER EMPLOYEES FOR
CALENDAR YEAR 2011, TO APPROVE
TEAMSTER EMPLOYEE WAGES FOR 2012
AND 2013
This bill had first reading. Councilmember Varner made a motion to set this bill for
Public Hearing and Third Reading on January 10, 2011 and send to the Personnel &
Finance Committee. Councilmember Oliver Davis seconded the motion which carried by
a voice vote of nine (9) ayes.
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REGULAR MEETING DECEMBER 13, 2010
BILL NO. 89-10 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING VARIOUS
SECTIONS OF CHAPTER 18, ARTICLE 1 OF
THE SOUTH BEND MUNICIPAL CODE
ENTITLED STREETS AND SIDEWALKS
REQUIRING THE REMOVAL OF SNOW AND
ICE AND AMENDING SECTION 2-213
ENTITLED SCHEDULE OF ORDINANCE AND
CODE VIOLATIONS
This bill had first reading. Councilmember LaFountain made a motion to set this bill for
Public Hearing and Third Reading on January 10, 2011 and send to the Health and Public
Safety Committee and the Community Relations Committee. Councilmember White
seconded the motion which carried by a voice vote of nine (9) ayes.
UNFINISHED BUSINESS
BILL NO. 10-59 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
ADOPTING A WRITTEN FISCAL PLAN AND
ESTABLISHING A POLICY FOR THE
PROVISION OF SERVICES TO AN
ANNEXATION AREA IN CLAY TOWNSHIP,
STATE ROAD 23 AND MAPLE LANE
ANNEXATION AREA
BILL NO. 46-10 A BILL OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, ANNEXING
TO AND BRINGING WITHIN THE CITY
LIMITS OF SOUTH BEND, INDIANA, AND
AMENDING THE ZONING ORDINANCE FOR
PROPERTY LOCATED IN CLAY TOWNSHIP,
CONTIGUOUS THEREWITH; COUNCILMANIC
DISTRICT 4, E. LEROY & PATRICIA YODER,
17904 STATE ROAD 23, SOUTH BEND,
INDIANA 46635
BILL NO. 10-57 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
APPROVING A PETITION OF THE AREA
BOARD OF ZONING APPEALS FOR THE
PROPERTY LOCATED AT THE SOUTHEAST
CORNER OF MAPLE LANE AVENUE & STATE
ROAD 23
Councilmember Kirsits made a motion to set Bill Nos. 10-59, 46-10 and 10-57 for Public
Hearing and Third Reading on January 24, 2010 and send to the Zoning and Annexation
Committee at the request of the petitioner. Councilmember LaFountain seconded the
motion which carried by voice vote of nine (9) ayes.
NEW BUSINESS
Councilmember Oliver Davis advised that A. J. Wright announced that it will be closing
in February 2011. He asked Councilmember Rouse, Chairperson, Community and
Economic Development Committee to look into their tax abatement and report back to
the Council.
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REGULAR MEETING DECEMBER 13, 2010
Councilmember Rouse stated that he has been in contact with Don Inks, Director,
Economic Development, and advised that the memorandum of agreement will be forth
coming on both A.J. Wright and Bosch.
Councilmember Henry Davis, Jr. advised that this coming Saturday, the Charles Black
center will be holding a free Senior Breakfast from 8:00 a.m. until 11:00 a.m. and invited
all to come out.
PRIVILEGE OF THE FLOOR
Jim Cierzniak, 1518 Pine Top Trace, Mishawaka, Indiana, stated that he has some
comments and questions regarding the Coveleski project. Why weren’t there cost
estimates and a breakdown of the renovations to be done at the Cove, for example how
much for the new scoreboard? How much for creating a centerfield entrance? How
much for extending the entire concourse around the stadium? If the Council doesn’t
know those specifics then why? If the Council does know, then why hasn’t the public
been given that information. He stated that the synagogue aspect of the this project is
bizarre, you don’t need to make it the ticket office/souvenir shop and believes that those
functions are a fig leaf to cover up something questionable. Both functions are centrally
located within the stadium. Why is the city taking in another white elephant? Is the city
buying the synagogue and at what price? He remembered the bible story of Jesus Christ
driving the money changers out of the temple, in our day Joe Kernan wants to put them
back in the temple to sell tickets and t-shirts. The fact that three Jewish groups have
signed off from this transformation means only that they got what they wanted. The
Synagogue deal looks like the city is bailing out a religious group that has no use for that
building and doesn’t want to continue spending money on it. He asked how much it will
cost to maintain that building. He stated as far as opening up the centerfield entrance and
how everyone is saying that it will connect the downtown to the stadium does anyone
realize how silly that reasoning is. It gives a whole new meaning to the word connection.
He questioned if any of the Council has been to the Cove in the last two weeks to see its
condition. He stated that after hearing Manager Haley say that the place is falling apart
that the Council would want to see a structure that is seriously flawed. He questioned
how the Council could vote on a 10 million dollar project with walking through the
facility and seeing first hand the condition of the facility. He gave stated that attendance
is down 24% since Joe Kernan has taken over. In the four years from 2003 to 2006
average yearly attendance was 196,000. During the Kernan years from 2007 to 2010 the
average attendance was 149,000 that is a decline of 24%. Is that declining in attendance
a direct reflection of Joe Kernan’s ownership of the franchise. Will the costly
controversial rehab project help that image? He stated that in Joliet, Illinois a new
ownership for the Jackhammers has made a ten year lease with the city to play in
Silvercross Park, the new owners will pay the city $150,000 a year isn’t that twice as
much as what Joe Kernan’s group is paying. He stated that the new owners will invest in
1 million dollars to install artificial turf in the stadium where Joliet Central High School
will also use the facility for football games beginning in 2012. He questioned how much
will Joe Kernan’s group invest in this project.
Cheryl Ashe, 3830 Langley, South Bend, Indiana, asked the Council to get moving on the
tax abatement issue. She stated that in light of what is happening at A. J. Wright, she
stated that it reminded her of what happened to Accu-Ride and before that at Toro. She
stated that the city is in dire need of a revised tax abatement ordinance. Ms. Ashe also
commended Tamara Nicole-Smith on convincing store owner’s in the downtown area to
let small business owners use the store fronts free of charge for the month of December
2010. She stated that she belongs to a group called the Michiana African American
Chamber of Commerce and they are a new group here who was able to acquire a building
while they are the Michiana African American Chamber of Commerce they are not all
black, they have Caucasian artists in their group and invited the Council to stop by their
building located at 229 S. Michigan St., she noted that they are located next to Dainty
Maid. She stated that they presently have 10 vendors and most of those vendors are
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REGULAR MEETING DECEMBER 13, 2010
currently unemployed and this is a way for them to try to support their families during
this downturned economy. The other stores are a toy store which is located across from
the Chocolate Factory. There is also a wonderful home store that sells wonderful lamps
and lampshades. Next to the Chocolate Café is a store that carries Amish crafted items.
Also, Greta’s has opened up a store with wonderful women’s apparel. She commended
this wonderful opportunity for these vendors’s to be able to sell their items outside of
their homes and wanted to report that they are picking up brand new customers.
ADJOURNMENT
There being no further business to come before the Council, President Derek D. Dieter
adjourned the meeting at 9:35 p.m.
ATTEST: ATTEST:
____________________________ ____________________________
John Voorde, City Clerk Derek D. Dieter, President
32