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Home My WebLink About06-06-2011 Bill 27-11: Investments for South Bend’s future 0450UT11 � O U d W PEACE a 1865 Office of the Mayor NEWS RELEASE June 6,2011 5 p.m. Bill 27-11: Investments for South Bend's future Contact: Mikki Dobski, Director of Communications&Special Projects, 235-5855 or 876-1564 A bill being considered by the South Bend Common Council would appropriate $9.15 million for special project investments in 2011 in three areas: new economic development opportunities, infrastructure upkeep and repairs, and quality of life enhancements. During the past two years,the City of South Bend has overcome an unprecedented budget challenge from the property tax caps. While it provided necessary property-tax relief for residents and businesses, it took great creativity to sustain city services and continue economic growth with a 27 percent loss of revenue. The City cut more than $11 million from its operating budget and streamlined many services. During this time,the administration set aside more than the usual level of reserves in the face of uncertainty. The adoption of new local income taxes means municipal budgets are now on a firm footing—at a lower spending level than before the property tax caps. (One of the new local option income taxes provided additional property tax relief for homeowners.) In 2010,two national agencies increased South Bend's bond rating, citing prudent fiscal management, sufficient cash reserves and spending reductions as well as diverse and stable revenue sources. Because this administration has been prudent financially, we have resources to support key services in the city. "Just as families look to their future, the City of South Bend must find a way—even with economic challenges—to invest in economic growth, sustain our infrastructure and enhance quality of life," said Mayor Stephen J. Luecke. "New businesses won't relocate to a community that does not invest in itself. Now is precisely when a city must invest in economic-development strategies that bring fixture growth." Here are the proposed investments in the appropriations bill before the Council: 1. New economic development opportunities—$3.7 million—The largest portion of the projects, more than 40 percent, would fund efforts to boost economic and neighborhood development. Two efforts would have a direct impact on new housing development, while a third would support new jobs in the city. • $1.5 million for sewer infrastructure modification, which would enable Steel Warehouse to undertake as much as a $6.45-million investment in an expanded facility along Riverside Drive, north of Angela Boulevard. The company plans to build a 20,000-square-foot addition to the north of its existing facility and add nearly $3.5 million worth of new equipment. The project will retain 80 jobs and create 14 to 17 new jobs. The City's investment involves reinforcing an existing 96-inch sewer line and providing structural support to protect the line, which will be under the building addition. • $1.2 million would assist development of St. Joseph High School's new campus by consolidating property adjacent to the former St. Joseph Regional Medical Center site. The overall site is the key parcel in the City's East Bank Phase I Redevelopment Area. St. Joseph High School plans to break ground Friday for a new, $35.5-million downtown campus to serve 900 students. The facilities include two gymnasiums and a new football field. The purchase of the former Family Dollar store site would make the site more viable for the new campus. It is the one item school officials asked the City to address in removing impediments to redevelopment of a site with many challenges, including topography, groundwater and previous foundations. St. Joseph High School would demolish the former Family Dollar store to make room for its new football field. The new high school is expected to increase demand for adjacent housing in nearby neighborhoods. • $1 million would enable the City of South Bend to acquire nearly 25 acres of property along Northside Boulevard, which until recently housed Transpo's maintenance facility. The site would be cleared and remediated by Transpo, while the City would make the property available for new riverfront housing development by the private sector as outlined in the East Bank master plan. Together with adjacent vacant land,these under-utilized sites would create immediate opportunities for in-fill housing, bringing new residents into the city and getting property back on the tax rolls. 2. Infrastructure upkeep and repairs—$3.25 million—About 36 percent of the special-projects budget would support ongoing maintenance,repairs and replacement of existing infrastructure. • $2.1 million for additional street paving citywide in 2011 (in addition to the existing annual budget for paving), including a process for Common Council members to target priority repaving projects in their districts. (This funding also includes $150,000 for the addition of a new traffic signal at Western Avenue and Laurel Street to accommodate the anticipated traffic increase because of the Kroc Community Center). • $700,000 to replace the pedestrian bridge over Chapin Street, which is unsafe and does not meet Americans with Disabilities Act requirements. The new Alonzo Watson Bridge will connect the main campus of the South Bend Housing Authority with the new Ray and Joan Kroc Corps Community Center of the Salvation Army of St. Joseph County. (Together, the signal and the bridge represent less than 2 percent of the private investment at the Kroc site.) • $300,000 to improve street lighting with new and replacement pedestrian-scale lighting in a couple of historic districts and to restore the popular lamppost program in which costs are shared between the City and the private property owner. • $60,000 for utility relocation resulting from the State of Indiana's relocation of U.S. 31. • $50,000 for infrastructure repairs to support pylons for the Riverwalk in the downtown area. • $40,000 for the replacement of an inadequate and worn water pump at Elbel Golf Course. 3. Quality of Life enhancements —$2.2 million—Less than one-fourth of the proposed project expenses would either enhance an existing park facility or support the development of a new facility. • $1.2 million would help renovate and rehabilitate the existing Ella Morris/Muessel-Ellison Botanical Conservatories at Potawatomi Park. The funds will support adding a new heating system and improving the energy-efficiency of the existing facility as well as adding new restrooms and a potting area to make the facility more user-friendly. The existing growing houses would be removed and replaced with an accessible parking area. These improvements would help make the facility more economically viable. • $1 million would provide initial funds for planning and property acquisition for the proposed Miracle Park. This is the first phase of an initiative, which would create handicapped-accessible recreational opportunities for youth with special needs. South Bend Parks and Recreation Department is working with private groups that are examining a site near Olive Road and Nimtz Parkway on the City's northwest side. In addition to facilities serving people with disabilities, the park could also provide functionality for many groups, creating space for baseball, basketball, track and other recreation options, including soccer. "Some would suggest that threat of continued global recession means that no new spending, no matter how worthy it seems, should be approved. To them, I would ask a simple question, `When is it time to invest in the future of South Bend?"'Luecke said. "The time to act is now." City of South Bend, Indiana Multi-Year Capital Improvement Plan Summary by Cost Center 2007-2010 Revised-June 6,2011 2006 CIP Plan Actual Estimates Spent Name 2007-2010 2007.2010 Variance i ARRA/StimulusFunding__- __,__-� 0 8,846,662 8,646,662 r—_�—-_- Building Department ______ j 122,500 L_37,315 X5,185 t Building Maintenance__ 98,900 i_ 15,581 (83,319 _Central Services _ 408,350 13,252 39b,098)i eMUry Center _ 31,751,00 4,887,2331 (26,_8.6_3,767)) City AdministratioNlnformetio(TTechnology _ _ 1,170,2851 1,190,780 r_ 20,475 ! Code Enforcement/Animal Control 0 1,4 _ _209,172 1 (1,225,128)1 Community&Economic Development __ 73,473,600 95,345,508 21,871,908 j Curb&Sidewalk Program(Good Neighbors) O j0 _ 1,766,589 _ (243,411 Engineertngr[rafBc&Lighting/Local Road&Street ! 14,819,900 - 8,511,285 (Q30 .615) Fire DepartmentfEMS ____ 11,507,200 4,834,486 (6,672,714); Mortis Performing Arts Center ____ 100,000 112,515 12,515 f Parks&Recreation 34,768,000 _ 5,692,889 L(29,075,131 Police Department --- ------------ 5,986,604,864,327 1 (1,522,273)' Solid Waste - ---- __—� 0 ___1,200,000 733,197 i_ (466,803)1 Street Department _____ ! 5,886,710 _ 810,629__x,078,081): Street Light Replacement_ �j 300 75,000) (225,000)j Street Paving______.-__—__-_.� 6000,000 8,0�48406� 2,048,406 ; Sewage Works - 61,517,683 51,723,33p (9,794,333 Water Works _ __ 18,877,600 11,518,2291 (7,359,371 Other Capital Projects Oi 778,824 778,824 otal 1271,422,608 210-,5i22,8-8-3 --60 Percentage Spent Average-Four Yeaw 1 67,855,652 j 52,830,723 j (15,224, _Notes 'CED--includes Eddy Street Commons and other projects funded b TIF and not General Fund •Century Center-$3 QOOO,OOOexpansion of[he adlity not funded. 'Parks-funding for a regional aquatics center and other si nifcant projects not funded. `Sewage Works-long term control plan is the major capital prolact. 'ARRA/Stimulus funding-not antici ated in 2006 CIP Ian.