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HomeMy WebLinkAbout06-13-11 Common Council Meeting Minutes REGULAR MEETING JUNE 13, 2011 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, June 13, 2011 at 7:00 p.m. The meeting was called to order by Council President Dieter and the Invocation and Pledge to the Flag were given. ROLL CALL COUNCILMEMBERS: Present: Derek D. Dieter 1st District, President Henry Davis, Jr. 2nd District Thomas LaFountain 3rd District Ann Puzzello 4th District David Varner 5th District Oliver Davis 6th District, Vice-President Timothy Rouse At-Large, Chairperson Committee of the Whole Karen L. White At-Large Absent: Al “Buddy” Kirsits At-Large OTHERS PRESENT: Kathleen Cekanski-Farrand Council Attorney John Voorde City Clerk Janice I. Talboom Deputy City Clerk Mary Beth Wisniewski Chief Deputy REPORT FROM THE SUB-COMMITTEE ON MINUTES To the Common Council of the City of South Bend: The sub-committee has inspected the minutes of the May 23, 2011 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 Rouse made a motion that the minutes of the May 23, 2011 Meeting of the Council be accepted and placed on file. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. SPECIAL BUSINESS RESOLUTION NO. 4108-11 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PUBLICLY COMMENDING AND HONORING CHUCK FREEBY FOR WINNING THE 2010- 2011 INDIANA HIGH SCHOOL ATHLETIC ASSOCIATION’S DISTINGUISHED SERVICE AWARD , Whereas in 1903, the first meeting of the Board of Control for the Indiana High School Athletic Association (IHSAA) took place to “…give recognition to athletics as an essential factor in the activities of the pupils…” at the high school level; and 1 REGULAR MEETING JUNE 13, 2011 , Whereas IHSAA has become a voluntary, not-for-profit organization whose mission is “…to provide wholesome, educational athletics for the secondary schools in Indiana”. Its members include public, institutional, parochial and private high schools throughout the State of Indiana; and , Whereas IHSAA’s motto is “Pure Spirit. Pure Sport” and divides the state into three (3) Districts, with Region 1 including all of the counties in northern part of the state to the southern borders of the counties of Newton, Jasper, Pulaski, Cass, Miami, Wabash, Huntington and Allen ; and , Whereas on May 6, 2011, the IHSAA announced that Chuck Freeby of WHME- TV and Radio in South Bend and a WNDU-TV Assistant, won the 2010-2011 IHSAA Distinguished Media Service Award for District I for his many great contributions and passion for Indiana high school sports; , Whereas the Common Council is proud to publicly recognize that Chuck Freeby is a 1986 University of Notre Dame graduate who became the Sports Director for WHME in 2004; who calls the “Game of the Week” play-by-play for high school football and basketball as well as Notre Dame baseball; and who chartered the “Friday Night Flights” and “Roundball Roundup” while at WNDU-TV for 17 years. Now, Therefore, be it resolved, by the Common Council of the City of South Bend, , Indiana as follows: Section I. The South Bend Common Council publicly honors and congratulations Chuck Freeby for his dedication to excellence as the award-winning journalist who is the th 26 Annual Indiana High School Athletic Association’s Distinguished Media Service Award Winner for District 1. Section II. The Common Council believes that Chuck Freeby’s outstanding contributions, both on and off the air, have significantly contributed to enriching high school athletics in South Bend and the surrounding areas. Chuck’s unique method of capturing the spirit and enthusiasm of these young athletes is a truly a rare and special gift, which other broadcasters wish to emulate. Section III. The Council wishes Chuck, his wife, Diane, and their six (6) children: Peter, Christopher, Mary, Jeanie, Rosie and T.J. the very best in the years ahead. Section IV. This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. st s/Derek D. Dieter, 1 District s/Al “Buddy” Kirsits, At Large nd s/Henry Davis, Jr., 2 District s/Timothy A. Rouse, At Large rd s/Thomas LaFountain, 3 District s/Karen L. White, At-Large th s/Ann Puzzello, 4 District th s/Dr. David Varner, 5 District th s/Oliver J. Davis 6 District s/Kathleen Cekanski-Farrand, Council Attorney th Attest: Adopted this 13 day of June, 2011 s/John Voorde, City Clerk s/Stephen J. Luecke, Mayor of South Bend Councilmember Derek Dieter, 413 W. Navarre, South Bend, Indiana, made the presentation for this Resolution by reading it in its entirety and presenting it to Chuck Freeby. A Public Hearing was held on the Resolution at this time. 2 REGULAR MEETING JUNE 13, 2011 There was no one present wishing to speak to the council either in favor of or in opposition to this Resolution. Chuck Freeby thanked the Council for this honor. Councilmember Varner made a motion to adopt this Resolution by acclamation. Councilmember White seconded the motion which carried. MOTION TO HEAR SUBSTITUTE BILL NO. 27-11 PRESENTED AT THE PERSONNEL AND FINANCE COMMITTEE MEETING 6-13-11 Councilmember Oliver Davis made a motion to hear Substitute Bill No. 27-11 presented at the Personnel and Finance Committee this afternoon. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. Council President Dieter asked Council Attorney Kathleen Cekanski-Farrand to read those projects that have been eliminated out of Substitute Bill No. 27-11. Council Attorney Kathleen Cekanski-Farrand read into the record the projects that have been eliminated out of Substitute Bill No. 27-11. She stated those projects as follows: The Potowatomi Conservatory; the Alonzo Watson Bridge; street paving; traffic Signal, and street lighting improvements at the Kroc Center; Transpo property site acquisition; sewer infrastructure at Riverside and Angela; and Miracle Park planning and property acquisition; Councilmember Dieter stated that the Council felt that citizens are present tonight to speak on these issues and wanted to give them that opportunity. Councilmember White asked if the Mayor could explain why the substitute bill has been filed and only four (4) projects are being considered tonight. th Mayor Stephen Luecke, 14 Floor County-City Building, South Bend, Indiana, stated that extensive discussion has taken place on the original bill with multiple items in it. He stated that it was difficult to provide the amount of time that many of these major investments needed for the Council’s thoughtful consideration on whether to appropriate the dollars, so in order to facilitate that he asked that the bill be amended tonight to focus of the St. Joseph High School Project and three very modest infrastructure issues for the City of South Bend. He stated that they would bring the others back in individual bills to again allow proper discussion, vetting, asking of questions, so that the Council can make the best discussions on those. The reason that he asked for St. Joseph High School Project be voted on this evening is that a timing issue as they look to move forward with construction of their high school it was critical to make a decision on that issue. One project would have fallen in that category as well which was the sewer reinforcement by Steel Warehouse but they have had discussions just recently with the team and they are postponing making a decision on the addition to that facility until early next year and that gives time to bring that forwarded separately as well. There will be opportunity in future hearings for full public participation. He stated that he appreciates the Council allowing those here tonight to share their concerns about other parts of the bill that will not be included tonight. The following individuals spoke on the items that have been removed from Bill No. 27- 11: Carol Martin, 16 yr. old Mishawaka High School Student, stated that she is speaking tonight on Miracle Park. She stated that she maintains a 3.7 GPA at Mishawaka High School, and is a member of the Track and Field Team and Thespian Society. She stated that she volunteers to teach elementary school children to throw shot put and discus. She stated that the majority of her time is spent at Challenger Little League. She stated that for the past sever years she has attended most games and early on her role became more than just watching the games, she began to “Buddy” which is when she helps the children that don’t always know what to do or just help keep them focused on the game. At first 3 REGULAR MEETING JUNE 13, 2011 she wasn’t sure about being a “Buddy” there were just a bunch of kids who had various disabilities, then they grew on her, and started to call them her kids and couldn’t wait to go and see them. She stated that instead of stealing bases they stole her heart. The best thing about the kids is that they don’t judge anyone; everyone is accepted for who he or she is. She stated that her brother has been a player on Challenger Little League for almost nine (9) years. She stated that he mother was a coach also but had to quit for health reasons. She stated that over the years her daily routine and weekly schedule have become more complex and can’t always make it to each game, but Challenger Little League is still important to her and a big part of who she is know. She stated that Miracle Park would not just be for kids with special needs it’s a place where they can play just like any other kid. Mr. Dustin Saunders, 119 LaPorte Avenue, South Bend, Indiana, questioned when the City was going to start spending city dollars on parts of the city that need them the most. Mr. Jerry Niezgodski, 2930 Bonds Avenue, South Bend, Indiana, advised that he is the Chairperson of the Lincolnway west Gateway Association. He advised that the CSO projects have taken place all over the City of South Bend. He stated that if you take a cursory tour of Harter Heights, the project around Washington High School, and the project around Edison School, you will see a project similar to what they did in his neighborhood Lincoln Manor. They call it the Kennedy Park Project in that area. He stated that not all the curbs were completed. They have old curbs tied into new curbs. He stated that after touring there is a difference between those three neighborhood projects and the Lincoln Manor (Kennedy Park Project). That is in most places the City did not build new curbs in the Kennedy Park Project. He advised that if you come to his neighborhood you can see that there are no curbs. He stated that if you would drive down Goodland, Eclipse, Westmoor Streets, you can see where the street has been paved and paved over the curbs. They don’t have curbs anymore. He suggested spending the capital investment monies on projects that have been started and finish them before any new capital projects are to begin. Ms. Aphrodite Pappas, 421 N. Taylor, South Bend, Indiana, advised that the bridge over Chapin Street has never been used in the past eleven (11) years. She questioned whether a bridge is really needed there. She suggested that they cross at the light. Ms. Pappas stated that money could be better spent by painting the bridge at Walnut & Western Avenues. She advised that as far as Miracle Park is concerned it is a good project however where it is planned to be built is just too far away from downtown and not appropriate. S.J. Sabo, (would not state an address, so therefore, he was not allowed to speak) Tom Zmyslo, 51042 Prairie View Way, South Bend, Indiana, stated that last year Mayor Luecke was pleading to the Council that they needed to raise taxes so that they wouldn’t have to lay-off police and firefighters. He stated that now the City has 9 million dollars and wants to do all these capital expenditures. Mr. Zmyslo questioned the Council whether or not they know what’s in the City’s budget. Dan Harshman, 1839 Wilber, South Bend, Indiana, stated that he is in favor of Miracle Park. He stated that over time it will prove to provide a great economic impact as they hope it will develop into a regional site or state site for other games and competitions. Mr. Harshman advised that a park like this really gives hope to families that the community reaches out to families who have needs like this. Jesse Davis, 1333 E. Calvert, South Bend, Indiana, stated that he thinks that Miracle Park is a great idea, however, he can’t support the park now during these tough economic times. He stated that the city always promises to use local contractors, but he sees an awful lot of out of town contractors and local job sites. He stated that he know a lot of local contractors who are not working. Mr. Davis stated that he thinks there are kick backs to someone and urged the Council to look into this because he thinks it’s too much of a coincidence that the Mayor wants to spend all this money five months before he leaves office. 4 REGULAR MEETING JUNE 13, 2011 Rev. Barrett Berry, 1251 E. LaSalle, South Bend, Indiana, stated that he is enthused, encouraged and embarrassed. Enthused because the city has money allotted to do improvements in the community. Encouraged because the city is actually taking the time to present for public discussion. Embarrassed because these numbers were presented without detailed information as to how they will be spent. He stated that he is also embarrassed because they are only limited to one portion of this great community. He stated that they need a holistic approach to doing development in the community then they should do so. He stated that he is encouraged that they had the opportunity to lay it out and discuss it. $300,000 for beautification for an entry way into the City of South Bend along Lincolnway West, what would that do to encourage the growth and development of our community as a whole if that entry way was beautified and those businesses were encouraged to continue to have investments there. What if you take that allotment of money and do some revamping to put the neighborhood stabilization in to place to level and demolish and recreate and develop communities as a whole. What is the intellectual curiosity as to how we came about this process? What is the intellectual capacity to present something that speaks to the volume of what we can do with 9.1 million dollars? He stated that he questions that we have fallen short. He stated that he would not have to have this conversation publicly but he has to because he had made several attempts to reach out to those in charge in Community & Economic Development to find the answers but as a citizen of this great city have failed to get those responses. Stephanie Spivey, 1812 Dutch Court, South Bend, Indiana, stated that she is a Board Member of the South Bend Community School Corporation. She stated that people take notice how a city treats their children, elderly and women. She encouraged training the youth to become productive citizens and give back to the community. She urged the Council to consider the youth of South Bend when voting on this bill. Randall Byrd, 425 Alonzo Watson Drive, South Bend, Indiana, stated that there is a need for the Chapin Street Bridge. He stated that Chapin Street and Western Avenue is a busy intersection and with the new Kroc Center being built there will be a greater need for the children and elderly to be able to cross that busy intersection. He urged the Council to keep the funding for the bridge. John Stratigos, 60710 Crown Ridge Ct., South Bend, Indiana, owner Barnaby’s 720 E. Jefferson Blvd., South Bend, Indiana, stated that he encourages housing along the East Bank. It will provide a new urbanism and help South Bend grown and thrive. He also welcomes St. Joseph High School to build on the former site of St. Joe Hospital. The school along with students and faculty will bring life to that area. It will encourage future development. He urged the Council’s favorable consideration. Catherine Hostetler, 708 N. St. Joseph St., South Bend, Indiana, stated that she was speaking as the President of the Botanical Society. She stated that they have a new director at the Conservatory & Greenhouses. She advised that they have held many fund raisers to help with the renovations at the greenhouse and conservatories. They have been able to make needed repairs and continue to look for ways to keep those renovations on going. She urged the Council’s favorable consideration for the Potawatomi Conservatories & Greenhouse. Cari Shein, 1429 Honan Drive, South Bend, Indiana, stated that the Council should consider not spending all the funds at one time. She urged to fund over a period of time and to partner with other entities to help defray costs. She urged the Council to save some of the money and set it aside in the rainy day fund for that day when it might have to be used. Ms. Shein stated that the city’s ability to collect tax revenues might decrease if the economy does not come back as everyone hopes it will. They also might be some other circumstances that arise like always seem to surprise us. She stated that there are several items in this bill that are not essential items for services or for the needs of the community. She stated that even those they are things that will please segments of the community, she feels that the city just cannot afford them at this time. 5 REGULAR MEETING JUNE 13, 2011 George Lane, 2405 Division Street, Mishawaka, Indiana, stated that he feels pushed into this bill. He advised that there are too many projects in one bill. He advised separating out those projects into several bills for the Council consideration. He stated that he is against Miracle Park. Mr. Lane stated that he understands the need, however, when he was involved with years ago, it was a place where the parents thought they could just drop their child off for someone else to watch. He stated that parents need to participate too and not think of the park as some place to drop off their children. He stated that the price tag is just too high, and there are other parks that could be developed for this concept. Mr. Lane advised that the other parks are in need of repair and adding another park at this time is not feasible. He stated that the Park Department can’t keep up on what they have now. He stated that the City Administration shoved the Public Safety LOIT tax through and told everyone that they if they didn’t pass this tax they would have to lay-off workers, including police and fire and that way a lie. He stated and now there seems to be a 9 million dollar surplus of money laying around for all these projects. He urged the Council to look at these projects separately and prioritize them carefully. T. K. Rowling, 1001 Mayflower Road, South Bend, Indiana, stated that she is very much in favor of Miracle Park. She advised that she is a parent of twin daughters with special needs. She stated that Challenger Little League is a tremendous part of their lives. However, the children can only play ball until there are 18 years old. Miracle Park could be a place where young adults could continue to ball play and get the exercise that they need. Miracle Park would provide a place where her daughters can play and interact with other children with special needs. She stated that the park is a place where kids can be kids and laugh and have a good time. She stated that now the Little League has to share time at various parks and having a park all their own would give the children more time to play ball and wheel chair access on and off the field would not be an issue. She urged the Council’s favorable consideration of Miracle Park. David Frank, 50520 Burtonwood, South Bend, Indiana, advised that taxes are higher than they have ever been and the quality of life is lower that it’s ever been. More vacant buildings residential, commercial, higher crime. Mr. Frank stated that there are problems in this community and have been following the CEO, the Mayor and his advice on financial issues such as the Football Hall of Fame. He stated that he remembers being in this room about 20 years ago and listening to a group of people who were begging the City Council not to spend the taxpayer’s money on the Football Hall of Fame and it was led by Steve Luecke and the Football Hall Fame has been a financial disaster for this community. Mr. Frank stated that we are still following him, by spending almost 10 million dollars at Coveleski. He advised that before the city spends 9 million dollars of taxpayer’s money, to take that money and set up a system that gets the input of the people. He stated that he guarantees that if these issues were given to the people in this community and they really explain in more than three pages if the people in this community really understood where this money was going, that if the Council really wanted the input of the people of this community you could really get it. Mr. Frank stated that he thinks the Council doesn’t really want the input. He stated that there are 100,000 people in the City of South Bend and 267,000 in St. Joseph County and there are seat in the Council Chambers that hold approximately 150 people. He stated that the people who are in attendance tonight are not a litmus test of the direction that this st community should be going. He stated that if we are going to plan the 21 century, we st should use 21 century tools and we aren’t doing that for what ever reason. Mr. Frank stated that he is from here and this community is now a disaster. He begged the Council not to keep following the same financial advice that has brought us to this point. MOTION FOR RECESS Council President Dieter made a motion for a ten (10) minute recess. Councilmember Oliver Davis seconded the motion. 6 REGULAR MEETING JUNE 13, 2011 RESOLVE INTO THE COMMITTEE OF THE WHOLE At 8:12 p.m. Councilmember Oliver Davis made a motion to resolve into the Committee of the Whole. Councilmember Rouse seconded the motion which carried by a voice vote of eight (8) ayes. Councilmember Rouse, Chairperson, presiding. Councilmember Rouse explained the procedures to be followed for tonight’s meeting in accordance with Article 1, Section 2-11 of the South Bend Municipal Code. Councilmember Rouse stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. PUBLIC HEARINGS BILL NO. 30-11 PUBLIC HEARING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTY: MAPLE ROAD RUNNING NORTH AND SOUTH FROM PRAIRIE AVENUE TO THE ST. JOSEPH VALLEY PARKWAY Councilmember Varner, Chairperson, Public Works and Property Vacation Committee, reported that this committee held a meeting this afternoon and it was the consensus of the committee to send this bill to the full Council with a favorable recommendation. Mr. Bernie Feeney, Registered Land Surveyor, 715 South Michigan Street, South Bend, Indiana, made the presentation on behalf of WJC Holdings LLC. Mr. Feeney advised that this bill would vacate Maple Road running North and South from Prairie Avenue to the St. Joseph Valley Parkway. He stated that the purpose of the vacation of the real property is primarily for security. He stated that the petitioner owns all abutting property. 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 Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 01-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 21 OF THE SOUTH BEND MUNICIPAL CODE, ARTICLE 1 BASIC PROVISIONS, SECTION 21- 01.03 NONCONFORMING LOTS, USES, BUILDINGS, STRUCTURES OR SIGNS, TO ADD ANEW SECTION TO PROVIDE FOR CERTIFICATION OF LEGAL NONCONFORMING LOTS, USES, BUILDINGS, STRUCTURES OR SIGNS, AND TO AMEND AND ADD CERTAIN RELATED DEFINITIONS IN CHAPTER 21, ARTICLE 11 Councilmember Oliver Davis, Vice-Chairperson, Zoning & Annexation Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. 7 REGULAR MEETING JUNE 13, 2011 th Ms. Christa Nayder, Staff Planner, Area Plan Commission, 11 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, presented the report from the Commission. Ms. Nayder advised that this bill allows for text amendments to Chapter 21 of the South Bend Municipal Code, Article 1 Basic Provisions, Section 21-01.03, Nonconforming Lots, Uses, Buildings, Structures or Signs, to add a new section to provide for Certification of Legal Nonconforming Lots, Uses, Buildings, or Signs and to amend and add certain related Definitions in Chapter 21, Article 11. She stated that the proposed amendment establishes a more formalized procedure that determines whether a property can qualify as a legally established nonconforming use of land. The amendment proposes require and suggested submission materials, an application fee, and the issuance of a certificate, if appropriate. Based on information available prior to the public hearing the staff recommends this petition be sent to the Council with a favorable recommendation. Ms. Nayder advised that the Area Plan Commission held a public hearing on May 17, 2011 and sends this bill to the Common Council with a favorable recommendation. The ordinance establishes a formal process for the review and certification of legal non- conforming uses, allowing the Building Department to collect a wide range of information so as to make an informed decision. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Councilmember Puzzello stated that she feels this bill allows for the firming up of regulations for declaring a property non-conforming. She also advised that it clears up property rights on whether it can be grandfathered in. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 31-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING BLOCK PARTY APPLICATIONS FEE Councilmember Dieter made a motion to continue this bill at the request of the petitioner until the June 27, 2011 meeting of the Council. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 32-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 13, ARTICLE 10, OF THE SOUTH BEND MUNICIPAL CODE CONCERNING FIREARMS Councilmember Oliver Davis made a motion to accept the substitute version of this bill as on file in the Office of the City Clerk. Councilmember White seconded the motion which carried by a voice vote of eight (8) ayes. Additionally, Councilmember Puzzello made a motion to continue this bill until the June 27, 2011 meeting of the Council. Councilmember White seconded the motion which carried by a voice vote of eight (8) ayes. 8 REGULAR MEETING JUNE 13, 2011 BILL NO. 28-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 17, ARTICLE 2, DIVISIONS 1,3,4 AND 6 OF THE SOUTH BEND MUNICIPAL CODE TO INCORPORATE THE ENVIRONMENTAL PROTECTION AGENCY (EPA)’S MODEL PRETREATMENT ORDINANCE Councilmember Oliver Davis, Chairperson, Utilities Committee, reported that this committee held a meeting this afternoon and it was the consensus of the committee to send this bill to the full Council with a favorable recommendation. Al Greek, Division Director, Environmental Services, 3113 Riverside Drive, South Bend, Indiana, made the presentation for this bill. Mr. Greek advised that this bill would allow for the revision of Chapter 17, Article 2, Divisions 1,3,4 and 6 of the South Bend Municipal Code which regulates the use of and industrial discharge to public sewers. The revision is a requirement of the City of South Bend’s National Pollutant Discharge Elimination System permit to implement an approved Industrial Pretreatment Program. Changes in federal pretreatment regulations mandate a revision to Chapter 17. In addition, discharge limitations have been revised for PH and arsenic to protect the environment and South Bend’s publicly owned treatment works. The format and order of Chapter 17 have also been revised in order for it to be easier for both South Bend staff and local industry to read and implement. 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 Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 25-10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 2, ARTICLE 6 OF THE SOUTH BEND MUNICIPAL CODE PERTAINING TO TAX ABATEMENTS Councilmember Dieter made a motion to strike this bill from consideration. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 27-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROPRIATING $9,150,000 FROM MAJOR CAPITAL INVESTMENT PROJECTS IN 2011 Councilmember Dieter made a motion to accept the substitute version of this bill as on file in the Office of the City Clerk. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. Councilmember LaFountain, Chairperson, Personnel & Finance Committee, reported that the committee held a meeting this afternoon and voted to send items #2, #3, and #4 to the full Council with a favorable recommendation, however, item #1 was sent with no recommendation. 9 REGULAR MEETING JUNE 13, 2011 th Mayor Stephen Luecke, 14 Floor County City Building, 227 W. Jefferson Blvd., South Bend, residing at 810 Leland Avenue, South Bend, Indiana, made the presentation for this bill. Mayor Luecke thanked the Council for accepting the amended version of this bill to allow focus on one important development opportunity for the City of South Bend. He stated that he would like to set the stage. He stated that yes they have reserves in the City of South Bend, they believe that is fiscally prudent and have a rainy day fund in the City of South Bend and they know the difference between operating dollars and capital dollars. Operating dollars are annual expenses that go on and on and if you take once time monies and spend them on operating expenses you run purse dry pretty quickly and then are really in terrible financial conditions. He stated that they have had a policy of trying to reserve dollars to be able to invest in important projects in the City of South Bend and they have had the opportunity and they believe that is the right thing to do. He stated that in the bill tonight there are four (4) items, three received favorable recommendations from the committee are repairs for the river walk, piers underneath the section of river walk over the river by the Colfax Bridge, those piers have deteriorating and they would like to be able to repair so that the river walk remains safe and structurally sound. There are dollars for a new irrigation pump at the golf course. The old one is completely worn out and if it ever stops raining we may in fact need a new irrigation pump this year. The third item is U.S. 31 project as it comes into the City and crosses over some of our utility lines and they are asking for dollars to do engineering work to be able to relocate those lines out from underneath the highway. They believe that those are worthwhile investments for the city, but really the main thrust of the bill tonight has to do with the opportunity to support a major investment in our community. Mayor Luecke stated that he believes it is a good investment not only for the East Bank and downtown but for all of South Bend. An opportunity to support a 35 million dollar investment in our community that will put people to work building a new high school that will provide opportunities for residents in our community as well. This is a great investment in our city, when we think back to the time when St. Joe Hospital was making the decision on whether to stay at that site and rebuild on the site, they had many discussions with the administration there and had proposed a package of up to 8 million dollars to support their staying at that site. He stated that he was told by many community members and Councilmember’s at that time that we should do whatever we could to support that institution and they did for a variety of reasons they chose not to rebuild at that site. He wanted to point out that he was certainly willing to invest major dollars to support a private institution, a faith based institution, at that location. Since they have moved that site becomes a critical piece of property for again, the East Bank, Downtown, for all of South Bend and have a wonderful opportunity to support another institution at that site which would bring a 35 million dollars investment to create a new high school, new athletic fields, that he believes is positive for our community. He stated that he wants to speak to the fact of support South Bend Community Schools and this City has supported South Bend Schools in terms of expansions of their properties. They have provided land for Adams High School when they did a major renovation and expansion of Adams. They provided land and vacated streets and alleys for the New Riley High School; they provided land for Madison Elementary School when a major renovation was done there. They have had discussions with South Bend Schools about public support for New Tech High School and certainly open to having those discussions and if there comes a time will bring the Council to that as well. He stated that they want to continue to invest in education in our community for our children. He stated that in terms of separation of Church and State, they are not giving money to St. Joseph High School, they are acquiring property that is a parcel that is critical to the development of the site and they would transfer that property but they would transfer that in exchange for an agreement on the part of St. Joseph High School to have public use of that site. So that the stadium could be used by Pee-Wee Football, Pop Warner Football or South Bend Community School Corporation High Schools playing games at that site. It could be used as well for other public venues. The school is also open to use of some of the building facility during summer-time when school is not in session for programs that would benefit members of our community. So there is a public return on the public investment that is at this site which he believes is not only possible but positive for the 10 REGULAR MEETING JUNE 13, 2011 community. The investment that they are making here is similar to the investment that they made at the Kroc Center on the west-side of South Bend, where they invested 1 million dollars to bring a 40 million dollar investment to the community. Mayor Luecke stated again, in exchange for services that are provided to members of our community through the Kroc Center. He stated that he believes that is a positive precedent and one that allows them to continue to make the investment in St. Joseph High School. The question is why the Family Dollar Store, how did we end up with this particular parcel and the investment that they are making and what is the valuation that brought us to price that they are suggesting for this store. He reiterated what was said in the Committee Meeting that St. Joseph High School has not asked us for any other participation in this project. There are many things that they could have asked for, additional dollars that they could have put in from the city, but they have not asked that of us. He stated that as they were talking with them about the development of the site, early on they had looked at a corridor for a new sewer line that would run through the Family Dollar facility. So it made sense to them at that point to say that they would take on acquisition of that site because they were going to need it for the sewer line. St. Joe would have provided a utility easement along the rest of their property to the city to allow that sewer line to go into place. Since that time they have decided to put that sewer in the street because of construction timing issues both for the sewer as well as for construction of the new St. Joseph High School as well as for additional cost. Had they followed that original corridor they would not only have had to buy Family Dollar but additional properties down the road. So it would have been even more expensive than the 1.2 million dollars that they are talking about today. He reiterated that he believes this is an important investment for the City of South Bend, in terms of the price; the valuation of the building is really based on income stream. He stated that a presentation was given by Don Inks concerning that income stream and what that value leads to, somewhere between 650,000 to 750,000 as a formula that would recognize the income stream that is there. But in addition to buying the building based on that income stream there is also a tenant in that building and so there is a cost to buy out that tenant and the lease that the tenant has in the building. Furthermore, this is not a seller who had the property on the market. He stated that sometime the City of South Bend and other buyers who are buying at not the opportune time pay a premium over and above the appraised value of the property. It is those three factors really that have led us to the 1.2 million dollar figure that they believe is appropriate and believe is great leverage for us as we look at a 35 million dollar investment in our community that they thinks is good for development in the surrounding neighborhood, development in the East Bank and Downtown as they move forward. Councilmember Oliver Davis asked the Mayor to explain why they are using an appraisal that is out of date and what is the City’s plan to replace the Family Dollar so that the residents of the neighborhood will have some place to shop. Mayor Luecke advised that the information provided to Council earlier referenced appraisals that had been done not saying that was what they were using as the basis for their price but to show a comparison to the price that they generated. He stated that the staff actually used a formula based on the income stream of the property to generate what they believe is the appropriate value. That the assumptions that they have used have been validated by an MIA Appraiser in saying that they have made the right assumptions to come to value that they came to, so they weren’t using the 2002 appraisal or the 2007 appraisals, they showed them as comparison that the value that they came to was a comparable value. In terms of if this store closes which it would obviously if they acquire the property and then transfer it. They certainly will look to attract services for the neighborhood and for the downtown area that will be appropriate for the residents in the area. He stated that he has no guarantees that will happen, but is certainly is on their list of important things to do as they move forward. Councilmember White stated that she is going to wait with her comments until she hears from the public. Her concerns are after hearing the public’s concerns what direction the Council is going to take on how there are going to receive information and the nature of that information and where do they go from here. 11 REGULAR MEETING JUNE 13, 2011 Councilmember Varner stated that at this afternoon’s committee meeting he made two suggestions, one is that they look at infrastructure expenditure on a part of the city as opposed to purchasing land. The second was that there was a premium involved in the purchase of this and that the city is going to take upon itself it would take upon the purchase of the building but not the premium. Councilmember Varner asked the Mayor, if from his presentation tonight that he rejected both those suggestions. Mayor Luecke stated that if Council would like to direct him in terms of expenditures of the dollars that they are limited in terms of purchase of the building to the value of the building itself but the remaining dollars could be used for additional infrastructure support for instances parking lots or other things that could have public purposes as well he would welcome and accept that direction from the Council. Councilmember Varner stated that is why they should have had this discussion sooner because it begs another question. Councilmember Henry Davis asked Mayor Luecke to define what an investment means> Mayor Luecke stated that an investment means putting our dollars into a project that will have a positive return for the community. Councilmember Henry Davis asked the Mayor what is the projection for return as it relates to our community? Mayor Luecke stated that there is not a dollar amount projection. The return on the investment that they can quantify at this point is that they take a vacant piece of property and have a new 35 million dollar school built on it. There will be public use at that facility and school in return for the city’s investment. He stated that he anticipates and does not quantify additional investment in the neighborhood and in the East Bank and Downtown area that would follow this significant investment by the private section in our community. Councilmember Henry Davis asked who currently owns the lot. Mayor Luecke asked for clarification which lot? Councilmember Henry Davis stated the former hospital site. Mayor Luecke stated that St. Joseph High School is the current owner of the site. Councilmember Henry Davis asked that if this project goes forward does the city have the ability to make sure that they have local laborers working on this project. Mayor Luecke advised that the members of St. Joseph High School would be able to speak more to that of contract that have already been let there are local companies that have hired for some of the initial work. He stated that the City has not made any requirement of local hiring based on their 1 million dollar investment in the project. Councilmember Henry Davis stated that he finds this situation odd that we are using taxpayer dollars to purchase land to turn it over to a not-for-profit organization that doesn’t pay any taxes locally. He stated that there are local contractors who need work and for the most part don’t get the local jobs. He stated that he is concerned about using the facility for public use because that doesn’t happen now at their current location and without having something in writing now. He wanted to know what the City is going to do to make sure that they are recapturing dollars here locally for jobs for people who live here locally. He stated that the Council just put into place a minority contractor’s bill and will it be used in this project. Mayor Luecke stated that the bill was created to create a diversity board which still has not be formulated which is to make recommendations to the city in terms of city contracts and city purchases. 12 REGULAR MEETING JUNE 13, 2011 Councilmember Henry Davis asked Mayor Luecke to do the right thing, regardless if they don’t put the board together. Councilmember Henry Davis asked if the 1.2 million dollars is not given to the St. Joseph High School property would it stop the development. He stated that he was told no. So why are still asking for this. Mayor Luecke advised that they are investing a million dollars to bring a 35 million dollar investment into the community. He stated that they have not reached the full 35 million dollar fund raising goal at this point, and adding another 1.2 million dollars on top of on what is an extraordinary goal is a very difficult challenge. He believes that it is appropriate for the City to be a partner with them as they move forward. Councilmember Henry Davis asked if they were getting any tax revenue from this. Mayor Luecke stated no. The site is currently a tax exempt site and it will continue to be a tax exempt site. He stated that they don’t any tax revenue from the South Bend Community School Corporation projects that have been suggested that they invest in as well. Councilmember Henry Davis stated that is comparing apples to oranges, public versus private institutions. Public school is what we all pay for through out tax dollars and checks that we earn or maybe even not, but we still pay for it. Private institutions are what we pay out extra if we choose to go to those institutions. He stated that there is a choice either or, but the public is allow to us or given to us just by being a resident of the City of South Bend. So you can’t compare the two. Mayor Luecke stated that Councilmember Davis was very insistent upon the City spending money to put traffic signals at a private school. Councilmember Henry Davis stated that it was for the safety of the children walking across a busy highway. That it would be in the city’s best interest before a lawsuit was filed because someone got hit by a motorist going 50 mph down the street with no police patrol is a hazard to the whole community. He stated that he was very persistent on that issue and thanked Mayor Luecke for his help on that. He stated that he feels that was the right thing to do. However, he does not feel the same way about St. Joseph High School when they are already going to spend 35 million, what is 1.2 million to them. They have already got it. Mayor Luecke stated no they don’t. Councilmember Henry Davis stated that there are better places to spend that money and he could go on for days about District 2, about the things that they need over there and for the city to act like it is nothing is a shame and he is embarrassed. Council Attorney Kathleen Cekanski stated that at the Personnel & Finance Committee Meeting a suggestion was made that perhaps the Public Benefit Test which was set forth in Mr. Leone’s the City Attorney’s memorandum be included as part of the amendment to the bill where it is limiting to the four (4) items. The purposed language would go in Section I right after all for items Site Consolidation for 1.2 million; Utility Relocation $60,000; River walk Repairs $50,000; Equipment Investment $40,000 and right after that the Council could consider the following language: “The site consolidation appropriation of $1.2 million dollars is subject to a written agreement setting forth in detail the public benefits which shall be provided to the citizens of South Bend. Such public benefits must include, but shall not be limited to the use of the outside athletic field by the South Bend Community School Corporation and other public entities on dates when St. Joseph High School does not have a conflicting scheduled event; and to have access to other limited indoor venues during the Summer on dates when the school does not have a conflicting scheduled event. Such written agreement shall be filed with the Office of the Clerk.” She stated that is a separate amendment in light of the discussion that took place between 13 REGULAR MEETING JUNE 13, 2011 Councilmember Varner and Mayor Luecke. She stated that again just to consider the Council may also want to add another paragraph that would read further more the 1.2 million dollars maybe expended with no more than $680,000 reflecting the cost of the building on the subject property which needs to be raised with the balance of the monies being used to help fund improvements for public sidewalks and parking lots related to the public benefits. She stated that way it ties the concerns that Councilmember Varner had with regard to the dollar amount and to what Mayor Luecke was talking about to help assist in the public use of those dollars for public sidewalks and the park. Councilmember Rouse asked for clarification that neither one of those amendments negates the public use of the facility. Council Attorney Kathleen Cekanski-Farrand stated that neither on does. In fact it facilitates the public benefit test. Councilmember Oliver Davis stated that if they are not interested in using any of the 1.2 million dollars for this project at all how does that imply to what was just stated. Council Attorney Kathleen Cekanski-Farrand advised that if the Council is not interested in the 1.2 million dollars then you would have to amend that out of the substitute bill. Because there are four items, three of which have favorable recommendation from the Personnel & Finance Committee and the 1.2 million for St. Joseph Hospital Site Consolidation have no recommendation. Councilmember Oliver Davis asked when that amendment can be made. Council Attorney Kathleen Cekanski-Farrand advised that it could be made now before the public hearing. Councilmember White suggested that it might be beneficial to hear from the public prior to making any amendments. Councilmember Rouse asked Council Attorney Kathleen Cekanski-Farrand to reiterate where the amendment came from. He stated that the amendments were offered at the committee meeting and wanted the parliamentarian to clarify those amendments. Council Attorney Kathleen Cekanski-Farrand advised that Mr. Leone’s referenced his memo that was given to the Council’s last Friday and the question did come up whether a Memorandum of Understanding MOU as was referred to at committee level would be appropriate. Councilmember Rouse stated that every Councilmember that was at that committee had access to that information. Council Attorney Kathleen Cekanski-Farrand stated that she believed they did. Councilmember White called for a point of order. She stated that she believes they did hear that information but have taken a step further in the form of a recommendation and believes that is a little bit different than having discussion and really saying this is the direction that we as a Council would like to move forward. She stated that she appreciates the thoughtfulness that the Councilmember’s have given to these issues, but she wanted to make sure that as a Council they have clarity as they move forward. Councilmember Oliver Davis stated that he agrees with that assumption and so therefore when we hear from the public we will hear from the public based on all four issues that are at hand and then they can come back with their recommendations. 14 REGULAR MEETING JUNE 13, 2011 The following individuals spoke in favor of this bill. Barrett Berry, 1251 E. LaSalle, South Bend, Indiana, stated that he is speaking in favor of the this bill. He stated that his family has owned the home at 1251 E. LaSalle for nearly four decades. He stated that they are a pillar in the community and his mother has lived there for quite a number of years and they are the neighbors of Councilmember Puzzello. He stated that he doesn’t want to stand in the way of any community and economic development for the City of South Bend. He stated that he is in favor of the project for St. Joseph High School as long as they have improved conditions at Washington High School so the students don’t have to have portable units on campus because they don’t have the adequate number of classrooms inside the school. He also stated that he is in favor of this project if there is a replacement or relocation of the Family Dollar Store. He stated that he is in favor of the Memorandum of Understanding outlining and solidifying the relationship between the school and the public, so that public dollars won’t go to a private entity without being public use put into place. He stated that as he understands it the high will be built regardless of whether or not this parcel is acquired by the City. He stated that will all things in place he is in favor of this project. Diane Fox, 3334 Sandwood Drive, South Bend, Indiana, advised that she is a life-long resident, a public school graduate, earned her higher education all in South Bend, at Indiana University as well as University of Notre Dame. She stated that she is in complete and total commitment to this project and encouraged the Council to consider it. The revitalization of the neighborhoods cannot be said too many times. She stated that with the hospital gone there is a drastic literally and figurative absence in our community. Beside being an isore, this investment that St. Joseph High School is willing to make again as it did over 50 years ago will provide the South Bend Community with the continuation of a good neighbor. St. Joe is a long standing entity known for quality and a positive impact in the community and again they were willing to reinvest in that community. There is an organization at the high school that is called HOPE Helping Other People Endure this organization has been going on since at least 1980. In that time one half a million dollars has been invested in its food drive. That’s one project that takes place where monthly projects do take place whose goal is to help those people our neighbors who are in need. People are talking about how easy it would be for St. Joe to throw in another million dollars they have not met their total yet and as the Council can idealize with their campaigns throwing in another thousand dollars or another million dollars seems like a great deal of money. It is not an easy task by any stretch of the imagination to think that 1.2 million dollars is no problem. The school is willing to invest in the community and she urged the Council to invest in this good neighbor. Susan Richter, 1715 Hass Drive, South Bend, Indiana, Principal St. Joseph High School, advised that she too has been a resident for over 19 years. She stated that she speaks in favor of this proposal because she feels it will provide economic development for the City of South Bend. She stated that they are looking at a 1.2 million dollar investment for a return of 35.5 million dollars in a private project. Everybody has asked how much money the project will continue to bring. She stated that she didn’t know if an exact dollar amount on that, but is certain that they will be able to help business be created in this area and will help to revitalize the neighborhoods the near northeast neighborhood, the East Bank, and it will go on and one what will happen when they come down into this area and produce a thriving business, a vibrant business which produces education citizens for South Bend. She stated that they have been doing that for over fifty-eight years and will continue to do that. The amount of enthusiasm and optimism that this will create for the City is hard to put into words. The real estate value which they heard at the committee meeting earlier this evening will definitely go up there is not doubt about that. She stated that the collaboration that they could have at St. Joseph with other schools will benefit all students in the City of South Bend. In the events that will be held at the school whether they are sporting events or other events will also create vibrant situations for the businesses that she is sure will follow the school being built there. There is a hole left there by the St. Joseph Regional Medical Center and it will be replaced by an institution that will bring a vibrant business of educating future citizens of South Bend. It has been a remarkable feat of the St. Joe Family that they have raised over 33 million dollars in 14 short months. She stated that it has been said that you can go ahead and raise another 1.2 15 REGULAR MEETING JUNE 13, 2011 million dollars, but as the earlier speaker said and because the Council knows about their campaigns asking you to raise another thousand dollars or 1.2 million dollars is very, very difficult. It has been a remarkable feat of many, many people that are willing to invest into the City and she asked for the Council’s favorable support. Jeff Boetticher, 1441 N. Michigan Avenue, South Bend, Indianan, Chief Advancement Officer St. Joseph High School, thanked the Council for their consideration. He stated that will all the meetings regarding this issue and apologized that they have had extensive conversations with Mayor Luecke and folks at the city level, but if there was a mistake made he wanted apologize that he should have involved all the Councilmember’s sooner in this process. He stated that he wanted to make some clarification regarding St. Joseph High School. He stated that when people hear catholic high school they think it’s something for only wealthy families and some how it is exclusive and that somehow they turn away students. St. Joseph’s High School currently has approximately 800 students. They have an open door policy, if students can pay the tuition, they can attend St. Joseph High School. They realize that their tuition is expensive although when you compare it to other places in the country; they feel that it is a great value. To help with that he gave some facts about St. Joe High School, 24% of students roughly 200 students receive financial aid. These gifts range from $500 to $3100 dollars a year. The student population is about 15% non-catholic and 85% catholic. The minority population is about 25%, so he gives this statistics to give the Council a clear sense of the student body of St. Joseph High School. It’s not a school that educates rich kids only; it’s a diverse population that they hope represents the city well. One of the things that they would like to do with their move and they are going to move there is no going back now, so they are coming to downtown. But something that wasn’t brought up is that earlier on they did look at other sites when they realized that their renovation was going to be very expensive, they own property out by St. Patrick’s County Park, the Diocese owns property out in Granger, and one of things that was decided early on was that it they want to continue to be a school that is located in the city and that is truly a part of the city they needed to be in that downtown area. He thanked the Council for their consideration and just as they invest their efforts everyday in bringing pride to South Bend he would hope the Council would invest in them and help them move to the former hospital location. The following individuals spoke in opposition to this bill. S. J. Szabo, 1355 Mishawaka Avenue, South Bend, Indiana, stated that the Mayor proposes quite a list of projects that epitomize wasteful spending by a lame duck administration that is more focused on political payback and a rosy legacy than what is best for the taxpayers. Whose coerce contributions provided the funds that the Mayor wishes to wontedly splash around on his way out the door. The most shocking of the lot is easily the proposal to give tax payer money to a catholic private school. This is a reprehensible violation of the constitutional concept of separation of church and state and a front to trusting taxpayers a disdainful snub of our public schools and an audaciously callus attempt to set a new standard of bad government. To be clear the amount of the gift that the city proposes to give to the Catholic Church is not an issue, doesn’t matter if it’s a million or ten million if it’s ten dollars. The issue is that it is simply wrong to get taxpayer money in any amount to a catholic private school. There is no way it can be justified and you can’t dress it up calling it a trade when the taxpayer is getting no value in kind for this investment. Other than that it is just political rederick to take our minds off the Catholic Church. What’s next, will the Protestants line up for support of their private schools, so that they can teach their kids a religion in an environment that they like without having to answer to state authority about what is taught, what the kids have to learn while they are there. The public has no control what goes on in a private school. The kids are given religious instruction and they can take whoever they like they can set the price as high as they want. That’s why it is called a private school and that’s why the taxpayer money goes to a public school system that responds to standards that take all the citizens of the this city that paid for its establishment, it maintenance. The well being and operation of this catholic private school is not within the realm of concern of tax payers any more or less than if the Protestants would have closed the church for lack of funds. These issues are not the taxpayer’s responsibilities. While it is the right of every private citizen to support whatever private school they wish the city and its taxpayers are 16 REGULAR MEETING JUNE 13, 2011 obligated only to support the public school system. He stated that this a pretty cut and dry issue and not a case of semantics. Do we stick to the constitution or don’t we? Dustin Saunders, 119 LaPorte, South Bend, Indiana, stated that yes the City has helped South Bend schools but Riley is on the Southside, Adams is on the eastside, you let LaSalle close without any fight and the school corporation asked for help with the bus pull off and the city made the school corporation pay for it over at Washington High School. So again, you have made the point of ignoring the Westside even with the schools. In regard to St. Joseph High School, the 1.2 million is obscene. Why don’t we turn around and even if the Council goes ahead with the plan even though he hoped that it would not go through, but if it does why doesn’t the city move the Family Dollar Store to one of the vacant store fronts downtown that they city is trying to market at a high rent that nobody wants to move in. Downtown needs a store, just move it. Then the city should be able to buy the Family Dollar for a fraction of what it would cost, because that store will be able to stay in business and still make money. Then the city could reap the benefits of getting tax dollars by relocating them downtown. Mr. Saunders stated what bothers him the most is that 1.2 million could be used anywhere else, give to the South Bend Community School Corporation for a slew of different projects that will help education the children. He stated that the shirt he is wearing tonight “Stop the Violence” the money would be better spent on curtailing crime. He stated that he would like to stop hearing the garbage spread on Channel 16 News, reporter Tricia Sloma announcing on the morning show that someone played Russian roulette with their dog. How many different crimes could be stopped with the ridiculous amount of 9.1 million dollars? He stated that he thinks that Miracle Park is a great idea for special education children, but before the city starts doing all these projects that should be done when the economy is better let’s get the crime rate down, let’s tear down the vacant house, let’s get jobs; let’s get our kids educated so the State leaves us alone. Instead of putting money into a private school where those kids are going to pack up and leave, they are not going to stay. The City is going to invest into a project that down the line those kids are not going to stay in this community. James Hall, 1445 E. LaSalle, South Bend, Indiana, stated that he agrees with a lot of things that the previous speaker just said prior to him. He stated that we are talking about projects for infrastructure but what about projects for our youth, what about projects for defeating crime and as far as the current discussion isn’t this a mute point. St. Joe High already said that if we don’t give them the 1.2 million dollars they are going to go ahead and build anyway. Why is the city using money that are tax dollars that we could be using in other ways to deter crime, help the youth, help our public schools, help our public South Bend City Neighborhoods. Why aren’t we supporting the Police Department or the Fire Department with this 1.2 million dollars? They don’t count, the city can cut their number of hours; the number of people working and the neighborhoods go less protected, less safe. He stated that he lives in the same neighborhood as Councilmember Puzzello, and they don’t worry about crime in their neighborhood. Mr. Hall stated that they should go to the Westside and walk down the street after dark on the west side. He stated that he won’t but encouraged the Council to and see if they feel safe. He asked why they aren’t investing the 1.2 million on the west side instead of giving it St. Joe High School. Mr. Hall questioned how long was this deal of buying the Family Dollar and then giving it to St. Joseph High School in the works and why didn’t the taxpayers know about until know. Greg Bukowski, 20155 Roosevelt Road, South Bend, Indiana, stated that he lives in the county and that this bill shouldn't affect him, but in fact every expenditure that the city makes affects the lives of everyone out in the County as well. He stated that he doesn’t have a problem with the small expenditures, even though he might be able to get a better deal just rebuilding the pump that they have at the golf course rather than buying a new one. The U.S. 31 project will have to be done because of the State widening the road which if fact those that live in that area did not want that project either. He stated that the 50,000 in repair at the river walk probably would be cheaper to do now than next year. But why on earth would anybody in their right mind want to spend 1.2 million dollars just to demolish the structure and give that structure to a private high school. This is an affair between the Ft. Wayne, South Bend Diocese; St. Joseph High School and the 17 REGULAR MEETING JUNE 13, 2011 Dollar General Store. This is private sector business not city business. He stated that he does not believe that facilitating the construction of the new high school includes buying and donating property at the taxpayer’s expense. Facilitation of construction of the school is streamlining the permit process and necessary inspections that go along with this project so it can be erected in a reasonable length of time. If the Council approves this, Dollar General Store is paying property taxes it consists of about 5 to 7 percent of the total land that we are talking about that St. Joseph High School wants to build on. He stated that when the city buys that property it is another property that is not going to be contributing to the tax base of this community. He stated that there 187 parcels that are going to come off the tax rolls when the project at U.S. 31 is complete also. He stated that he could mention a half dozen properties that this administration has taken off the tax rolls and haven’t been replaced some of them bars they wanted to close so they bought them at market value. He stated that he doesn’t think this is good government, let the private sector take care of private sector business and the public sector take care of the public sector business and he doesn’t believe that the public sector business is buying and selling real estate. Jim Cierzniak, 1518 Pine Top Trace, Mishawaka, Indiana, commended Councilmember Henry Davis. He stated that the Mayor comes up here and acts like with a 1.2 million dollar investment we are going to leverage a 35 million dollar project. While the school is being built as we speak. He stated that others got up this evening and still carrying on that fiction that somehow this million dollars is necessary to get the project going that is not true. He stated that as he understands it the Family Dollar Store is on the footprint of the football stadium, so we are talking about a football stadium here. St. Joe can play their games at Clay, School Field, and Jackson and should especially play their games at Marian High School where there is a fine football stadium. There is no compelling reason for this Council to vote for money to build a stadium that duplicates a stadium, which duplicates another stadium etc. This is not necessary that it is done therefore it is necessary that it is not done. He stated that he is going to be contacting the Bishop of Ft.Wayne/South Bend to let him know that he is making a big mistake if he allows this transaction to take place. The Catholics ought to pay for it themselves. We shouldn’t have a project that is going to raise the ire of the community this is a very unpopular project. Quid pro quo who get’s what? When St. Joe High School announces that they are going to set up the Joe Kernan Memorial Chair in political philosophy and that Steve Luecke will be the first holder of that chair, Mr. Cierzniak stated that he will know then that we have gone too far. Glenda Rae Hernandez, 702 E. South Street, South Bend, Indiana, stated that she thinks there are more pressing needs than for the proposal for St. Joseph High School. She stated that a couple of years ago cuts were made in the City budget for fear that the tax caps might deprive us of all kinds of money. That was one of the reasons that the Council passed one of the income taxes. For two years the Human Rights Commission has had to make due without a secretary. This is one department that she has personal knowledge of; she is assuming there were other cuts throughout the city as well. She stated that she thinks restoring some of those jobs would be much more important. She stated that she is very concerned about the purchase of the store for a private sectarian school. Especially since that store is the only place that some people living in that area have to buy their necessities. She stated that the northeast neighborhood was told that the Eddy Street Commons would have retail and so the neighborhood bought into but you can see the kind of retail that they have is not what the people in the neighborhood need. She stated that her suggestion is that the Department of Redevelopment work with the Family Dollar to relocate it just as they did with Habitat’s Restore when they help them move so that Ivy Tech could have that property on Sample Street. She stated that as was mentioned before St. Joe can play football wherever. They don’t have to have the football field in order to get the school built. She stated that they already mentioned that they are going to build the school once they can raise the money for buying the Family Dollar let them do that themselves without the city intervening in between. She stated that it was mentioned about beautifying the Lincolnway West Gateway into the city and she stated that 25 years ago when the Monroe Park Project started one of the things that was done and was not a complete rehab but was providing paint and small repairs for every single house in the area and you wouldn’t believe how many people said how much 18 REGULAR MEETING JUNE 13, 2011 better the neighborhood looks. She stated that the 1.2 million dollars could easily go for that kind of a project along Lincolnway and would do so much more for the city. George Lane, 2405 Division Street, Mishawaka, Indiana, CEO and Chairperson for the Citizens for Accountability. Stated that he has heard so much tonight and sympathizes that everyone is tired it has been a long night. He stated that Mayor Luecke stands up here giving his presentation telling how wonderful these projects are not with his money, but taxpayer dollars. He stated that there are people on the west side of South Bend that don’t know where there next meal is coming from. Mr. Lane apologized if he offended anyone tonight when he was talking previously about Miracle Park. He stated that’s how it was 20 years ago. Sal Gerchoffer, 2101 Prairie Avenue, South Bend, Indiana, stated that if the Council votes to give Family Dollar 1.2 million dollars for that small piece of property the CEO of Family Dollar will be laughing all the way to the bank. He urged the Council to use common sense and don’t pass this expenditure. Carol Davis, 1631 Lincolnway East, South Bend, Indiana, stated that she is again spending any money toward the private sector. She reminded the Council that they pledge to up hold the state constitution and in the first Article Section 4 and 6 states no public money to private entities or land. She questioned whether the Council was going to uphold their oaths. Councilmember Puzzello In Rebuttal, Mayor Luecke stated that he appreciates the time and effort that the Council has put into this request for this appropriation. He stated that there were a couple of items that he wanted to touch on. The City did in fact assist Washington High School with the bus pull-off. The City bought land from the School Corporation and actually over paid for that land to have dollars available for them to be able to fund that as it was done in a timely manner for them. He stated that obviously there were a lot of questions raised and that he stands by his opening statements that this is a wonderful opportunity for the City of South Bend. This is truly a terrific institution that has chosen to located in our core urban neighborhood bringing 35 million dollars in investment from private donors and they are asked to participate a million dollar level which he thinks is a fair request on the part of the high school as they have discussed this is not a gift to the diocese or a gift to the high school it is in fact an exchange for public benefit that will be provided by this investment; a public benefit by use of the athletic facilities; public benefit by use of school facilities by the public which if the amended language is accepted will be a requirement of the bill as they move forward. He stated that he supports that suggested language. The question of separation of church and state he thinks is addressed by that and certainly would point to the state’s use of funding of vouchers and charter schools some of which are faith based schools which he thinks sets a precedent that would also allow the investment here at this site. He stated that they should be celebrating this wonderful investment by St. Joseph High School. He stated that he thinks it’s a great addition to the community and are glad to have them planning themselves for generations to come in downtown South Bend and encouraged the Council’s favorable vote for this project. Councilmember Puzzello stated that she will be a neighbor of the New St. Joseph High School and is very excited about the possibilities that the high school will bring to us. South Bend has always given money to projects that they think will be of value to South Bend and are excited about. Money has been given for infrastructure improvements, tax abatements, etc. She doesn’t think that this project is any exception. As far as religious uses are concerned, the Mayor mentioned the fact that the State if giving money to parents who feel like they would like to leave the public school and attend private school and will be paying tuition for their children to go there. So everything that we are talking about tonight as such great length has been done many times before. Councilmember 19 REGULAR MEETING JUNE 13, 2011 Puzzello reiterated that she believes that St. Joseph High School will be a wonderful addition to South Bend. Councilmember Henry Davis wanted to clarify some things. He stated that his position on this has nothing to with being against St. Joseph High School moving into the proposed area. He stated that he thinks it will be a great addition. He stated that his stance is based upon priorities for the City of South Bend and how it relates to spending public tax dollars. He stated that now we have an influx of dollars going to the east side of the river rather than the west side of the river or spent equitability throughout the whole city. This is not a west side deal, it’s not south side deal, this is the lifeline of the City of South Bend. He stated that they have to come together and prioritize how they spend tax dollars to best suit the growth of the city. He stated that if you noticed all of the new taxable land; all of the new private businesses are going across the river and the last time that he saw an example of that it is St. Joseph Michigan and Benton Harbor. He stated that he would hate for our city to turn into what St. Joe and Benton Harbor have become and cannot compete against each other. Mr. Davis stated the school zone report he remembered back approximately three or four months ago going over that report with the Public Works Director and found that they have been lax for approximately 20 years in making sure that school zone are painted and lighted properly whether they are within a parochial school district or a private school district. He stated so that when the argument arises that they are using it for a charter school, it is our obligation to make sure all school zones are guarded safely. He stated that was discussed during the budget cut backs and eliminated school crossing guards. He stated that the discussion of using funds for one project or another could go on for days. He just wanted to see growth in the way that it is meant to be using tax dollars to produce more tax dollars for more opportunity for the citizens of South Bend. He stated that he will not be in support of anything today as it relates to this bill. Councilmember Rouse called for a point of order, stating that Councilmember Varner wanted some clarification on the amended bill. Councilmember Varner stated that for the sake of consideration on the amended request, he made a request this afternoon and the Mayor restated somewhat differently. He stated that his suggestion was that if there was infrastructure or building cost that it be limited to the cost of the building one or the other. He stated that he wasn’t suggestion that it would be 1.2 million dollars which is what he thinks the Mayor took from it. He stated that he is looking for an either or in a compromise and maybe we can’t address that tonight but that was the nature of his intent not the way the Mayor restated it and that maybe where some of the confusion came in. Councilmember Oliver Davis stated that he understand Councilmember Varner’s point, however, he hoped that they would just address item’s #2; #3 and #4 tonight. He stated that he has great concerns with item #1. He stated that he likes what Councilmember Varner has said and thinks that it can be talked about in further discussion about how that could be applied. He stated that he doesn’t think that tonight is the night to do that. He stated that he has been approached by his neighbors on this issue and advised that he has donated some of his City Council earnings to the Catholic Schools in his own area, Our Lady of Hungry and St. Adalbert’s. He reiterated that it was his own personal monies and own uses. He stated that he still has issues utilizing tax monies for private schools even though he believes in and is a product of private education. He stated that he is in support of items #2, #3 and #4 tonight and with the issue that Councilmember Varner has raised which is a good one especially when they are looking at infrastructure for any part of the city whether it covers private or public, they can come back and look at that to see what kind of development could go into that area. Councilmember Oliver Davis made a motion to accept only item #’s 2, 3, and 4 at this time. Councilmember White seconded the motion. 20 REGULAR MEETING JUNE 13, 2011 Council Attorney Kathleen Cekanski-Farrand stated that the motion was incorrect. In order to do it, the Council would have to amend the title to delete 1,350,000 and replace it with 150,000. Strike sub paragraph 1 in the State of Purpose and Intent re-number the remaining ones. Strike under Section I. under the project fund in the amount site consolidation Fund 408 EDIT 1.2 million dollars. All of that would be part of the motion. Councilmember Oliver Davis made a motion to accept the amendment as read by Council Attorney Kathleen Cekanski-Farrand. Council President Dieter asked if that motion was to go with items 2, 3, and 4. Councilmember Oliver Davis stated yes. Council President Dieter asked if that left item #1 for a vote. Council Attorney Kathleen Cekanski-Farrand stated that would eliminate the St. Joe Hospital Area Site Consolidation in its entirety. She stated that she has a question in light of Councilmember Varner’s comment prior to Councilmember Davis. She asked Councilmember Varner if he was saying that he preferred that be amended from 1.2 to $680,000 as one of the options. Councilmember Varner stated that he left that open for discussion when he offered that this afternoon as a compromise which that was brought to him by a constituent and in a lot of ways it makes sense to consider it and he also understands that they as a Council can’t conduct the negotiations to see if that were acceptable. He stated that would fall back to the Mayor’s Office since this came from his office. At that point in time if that happened and it was acceptable and if in fact they came back with these unwritten suggestions that have come for usage with regard to the property and things like that, it comes back as a new package, perhaps that package could be considered. Councilmember Oliver Davis stated that he could accept that in terms that they vote on items 2, 3, and 4 with the understanding of what Councilmember Varner has said that they would come back with a recommendation from the Mayor to deal with item 1. Council Attorney Kathleen Cekanksi-Farrand stated that in effect the motion that Councilmember Davis wants would take the St. Joe site allocation off the table and open it up to a totally separate bill. The question to Councilmember Varner is whether he wanted to perhaps amend the amount this evening as one of the options or whether it was being thrown back to the administration. Councilmember Varner stated that what he would like to see is more discussion with regard to St. Joe High School and the Mayor’s Office. There are some suggestions on the table that might be acceptable or may be acceptable one of those was a compromise that he offered for consideration today. He cannot negotiate that compromise, he stated that it belongs in the hands of the Mayor, because the bill is brought by the Mayor’s Office, and if they are willing to do that whatever it takes to allow that to happen he is prepared to do that. Council Attorney Kathleen Cekanski-Farrand stated that the only way at this point is to ask the administration if they would be willing to continue that discussion rather than eliminate it from the bill this evening and go forward with just the smaller items. Councilmember Henry Davis called for a vote. Council President Dieter called for a point of order and Chairperson Rouse acknowledge him. Council President Dieter stated that he thought there would be more discussion amongst Councilmember’s that have not weighed in on this discussion. 21 REGULAR MEETING JUNE 13, 2011 (Discussion between Councilmember’s and Chairperson Rouse.) Council Attorney Kathleen Cekanski-Farrand stated that the last question before was Councilmember Varner’s issue of whether we could keep the viability of the two options that the Council has set out and that goes to readiness of the issue. The only person that can answer that is the Mayor. She stated she cannot answer that and no other Councilmember can answer that. Chairperson Rouse asked Mayor Luecke if he is prepared to answer that question right now. Mayor Luecke stated that as he understand the question it’s would he accept the limit of $680,000 that could be used either towards the purchase of the building or toward infrastructure? He asked if that was the question and did he understand properly? Councilmember Varner stated that was his suggestion up for consideration. Mayor Luecke stated yes he is willing to accept that. He stated that the Council can make that amendment to have that happen. But, yes, he would be willing to accept that. Councilmember Oliver Davis asked if they go with the original vote. Council Attorney Kathleen Cekanski-Farrand stated that there is a motion on the table and a second. The motion would eliminate the St. Joe Hospital site in its entirety from the title through the entire bill. The Council would be eliminating the 1.2 million. Council Attorney Kathleen Cekanski-Farrand stated that hypothetically, if that motion would prevail again, since there are only eight (8) members here a tie vote defeats the motion. That does not eliminate another motion from being made that could address Councilmember Varner’s amendment. Councilmember Oliver Davis restated that the motion was in favor of items 2, 3, and 4. Council Attorney Kathleen Cekanski-Farrand stated that the total appropriation would be $150,000 that would be allocated between items 2, 3, and 4 which would be renumbered all items with regard to the St. Joseph Hospital project would be eliminated. That is what is before the Council. Roll Call: Councilmember Henry Davis, nay; Councilmember LaFountain, nay; Councilmember Puzzello, nay; Councilmember Varner, aye; Councilmember Oliver Davis, aye; Councilmember Rouse, nay; Councilmember White, aye; President Dieter, nay.) Five (5) nays; Three (3) ayes. The motion failed. Council Attorney Kathleen Cekanski-Farrand advised that the Council is back to the original substitute bill with all four projects in it. Councilmember White stated that prior to taking action and hopefully to give other Councilmember’s the opportunity to weigh in. She stated that she thinks that it is very important as they look towards the upcoming funding priorities that the Administration would prioritize all the remaining capital investment in terms of the standards by which these projects have been selected and the type of funding support that these projects have been given in terms of the total planning processes for the city. A timeline for implementation, the impact if these projects are not approved, the impact for the purposed funding priorities on other projects such as programs, parks and most importantly and vital that they as a Council along with the Administration that they come up with a utilization strategic plan to address those areas that have not been addressed in the City. She stated that they can continue to build on the outskirts of South Bend and the doughnut the inner city that they are obligated to serve and they have not done a great job in addressing those areas within our community and have a great opportunity to take the funds that they have and to bring about strategic changes for various segments within the community. She challenged the Council to really work very closely and to come up 22 REGULAR MEETING JUNE 13, 2011 with a format in terms of how they assess the funding process. What standard does the Council have, what are the goals for the community and not just certain segments of the community, but the community at large? She stated that the Council has a responsibility to make sure that South Bend the total city is the best for all of the citizens. She reiterated again that in terms of the Family Dollar Store, she heard from St. Joe High School tonight that whether the funds are given or not they are going to build. She stated that she appreciates their commitment to building downtown. She stated that the administration needs to look at other means in terms of supporting St. Joseph High School with out taxpayer dollars. She stated that they need to use those dollars quite differently. She stated that is where she is at in terms of the planning process they need to articulate the process to the community, to the constituents and need to have ample opportunity for input and need to schedule special meetings so that individuals can come and that they can be heard and the Council can respond to them as well. She challenged the Council to give full consideration to the point that she has raised as well as the administration. Council President Dieter stated that he appreciates everybody’s comments regardless of what side they are on. He stated that unfortunately he thinks that this can turn out to be one of the biggest problems that South Bend has and that is the basic acceptance of mediocrity whether it’s east side; west side they are starting to divide the city into east, west and he stated that he can tell everyone right now that the City of South Bend Police Department spends at least 70% if not more of it’s resources overtime, manpower etc. on the west side of town. He stated that is the fact of the matter. Developing he stated that he cannot really speak to that; however, they try to do as much as they can on Lincolnway, and at LaSalle Square. He stated that with this specific issue people that either just don’t like St. Joe High School or the Catholic Religion which is fine, but in the end, he doesn’t think they should hold anything against a fine institution such as St. Joe and what they are trying to do there and if they would have not raised that money which is a phenomenal amount of money, he couldn’t imagine it is almost half of what the city budget comes up. He stated that he doesn’t know of any other private company or business that could raise that much money. He gives them credit and if the City of South Bend can help them, if they could have helped someone else in the same predicament which they did with the Kroc Center, so the precedent has been set, the City did help them with a million dollars, and then the City should help St. Joe. The use of the field which will be great and appreciates the offer that the St. Joe High School Community will make for that is great. The facilities in the public schools are use by St. Joe and they are not free, St. Joe has to pay to use those facilities. He stated that he believes it is a fabulous idea that the public schools will be able to use the facilities at St. Joe. On Friday nights when either St. Joe doesn’t play there or even on Saturday night when they do there would be things going on at that side of town on weekends and during the week. He stated that yes there could have been much more communication to the Council when this started and there could have been a better way to purchase that property along time ago and the City could have gotten it a lot cheaper, so that’s not the Council’s fault and he is not sure of who’s fault that is and is not his to judge. But in the end, it will be a great thing for South Bend totally and that they are going to make the commitment that all the public would be able to use the facility so once this does come up for a vote he will be in favor of it. Councilmember Rouse stated that unfortunately the whole education environment has changed when HEA 1003 was passed the separation of tax dollars becomes sort of hazy, because you can get a voucher and spend it in the private sector and that includes Catholic Schools. He stated that he is hazy on the accusation that money isn’t spent on the West Side when the natatorium is on the West Side. The Kroc Center is located on the West Side; Ignition Park is west of Michigan Street and located on the West Side. He reiterated that he is a little hazy when Councilmember’s state that they are not investing money on the West Side of South Bend. He stated that he doesn’t quite understand how to partner with a 35 million dollar facility and take 1.2 million as a partnership and use that facility for the South Bend Community School Corporation. He stated that he thinks it would be remiss not to pass this bill with the MOA’s and the MOU’s that have been suggested to this body. It is not so that the only investments are going up on the east side of South Bend, there are investments going up all over this great city. He stated that he 23 REGULAR MEETING JUNE 13, 2011 believes most of the parks within the African American Community are on the West Side, The Martin Luther King Center is on the West Side District 2 and the Charles Black Center is on the West Side of South Bend and don’t actually know of any on the East Side. He stated that he thinks there is a paradigm of where dollars are spent and has a tendency to use that way when you want to see it that way. He stated that he doesn’t think that City dollars are spent only on the East Side of South Bend and finds that quite offensive to be honest because he is an East sider. Be that as it may, he stated that he supports spending 1.2 million dollars as a partner with St. Joseph High School if the MOA’s and MOU’s become effective so that the South Bend School Corporation regardless of whether it is on the Eastside or the Westside has access to that facility. Councilmember Dieter made a motion to recommend the bill go to the full Council with a favorable recommendation. No second was made. Councilmember Puzzello asked that if the vote ties again what will the result be. Council Attorney Kathleen Cekanski-Farrand stated that any motion that goes 4-4 dies. In that situation, one Councilmember’s voice is absent this evening. Councilmember Puzzello asked if it would be smart to continue this bill one meeting. Council Attorney Kathleen Cekanski-Farrand stated that at this point we don’t know if that motion is going to die unless there is a formal motion on the table. She stated that the first thing that would have to be done is to amend Substitute Bill No. 27-11 Section I. to incorporate and she stated that she would be happy to read the language again that address the MOU that Councilmember Rouse talked about. Council President Dieter asked if they make a motion and it is tied 4-4 what is the next step. Council Attorney Kathleen Cekanski-Farrand stated that motion dies. The bill would still stay alive because it can not get off the Agenda and would automatically go to the next meeting. She stated that the bill is not defeated it is still a live bill if the motion to continue would die it’s still would have to be continue because you can’t dispose of it off the table. Councilmember Dieter made a motion to continue this bill until the June 27, 2011 meeting of the Council. Councilmember LaFountain seconded the motion. Councilmember Varner asked if that was subject to the agreements being put in place. Councilmember Dieter stated yes. Roll Call: Councilmember LaFountain, aye; Councilmember Puzzello, aye; Councilmember Varner, aye; Councilmember Oliver Davis, nay; Councilmember Rouse, aye; Councilmember White, nay; Councilmember Henry Davis, nay; Council President Dieter, aye.) The motion carried by a roll call vote of five (5) ayes and three (3) nayes. Council President Dieter made a motion for a five (5) minute recess. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 17-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF SOUTH BEND, INDIANA, APPROPRIATING $157,000 RECEIVED FROM THE U.S. DEPARTMENT OF JUSTICE FOR THE WEED & SEED PROGRAM 24 REGULAR MEETING JUNE 13, 2011 Councilmember Rouse, Chairperson, Community and Economic Development Committee, reported that this committee met on this bill this afternoon and voted to send to the full Council with a favorable recommendation. th Pam Meyer, Director, Community Development, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Meyer advised that this bill would appropriate the third year funding for Weed & Seed site #2 Northwest from the Department of Justice (DOJ). The grant award of $157,000 is for the period of July 1, 2011 to June 30, 2012. She stated that these funds are being used for programming related to the Weed & Seed required areas of Law Enforcement, Community Policing and, Prevention, Intervention and Treatment activities. The multi-year effort for Site #2 includes the continued programs/ activities of police patrols, the time of a targeted prosecuting attorney, a home security program, an ex-offender re-entry program, a performing/visual arts/theatre youth program, graffiti clean-up and foreclosure prevention education. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. The following individual spoke in favor of the bill. Noreen Deane-Moran, 716 W. Colfax, South Bend, Indiana, spoke in favor of the bill. She stated that the Federal Government designates what the money can be spent for. She used an analogy that if you are given money to buy red shoes you cannot buy a car instead. 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 Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 33-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND APPROPRIATING $1,708,707 FROM THE COMMUNITY DEVELOPMENT FUND (FUND 212) FOR THE NEIGHBORHOOD STABILIZATION PROGRAM 3 FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE CITY OF SOUTH BEND, INDIANA, AND DESIGNATED SUBGRANTEE AGENCIES FOR THE PROGRAM YEAR BEGINNING, MARCH 8, 2011, TO BE ADMINISTERED THROUGH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT Councilmember Rouse, Chairperson, Community and Economic Development Committee, reported that this committee met on this bill this afternoon and voted to send to the full Council with a favorable recommendation. th Pam Meyer, Director, Community Development, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Meyer advised that this bill would allow for the appropriation of $1,708,707 in 2011 Neighborhood Stabilization 3 (NSP3) funds for the three year period of March 8, 2011 – March 7, 2014. This action allocates new funds in accordance with the 2011 Action Plan and MSP3 Amendment of the Housing and Community Development Plan (HCD) submitted to the Department of Housing and Urban Development on March 1, 2011. Ms. 25 REGULAR MEETING JUNE 13, 2011 Meyer noted that the 2011 HCD Action Plan NSP3 Amendment was the subject of a 15 day public comment period that began February 11, 2011 and expired February 25, 2011. The City received the Release of Fund Notice of April 21, 2011. Grantees have to expend 50% of the funds within 24 months from the HUD grant agreement execution date of March 8, 2011, and 100% no later than March 7, 2014. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. The following individual spoke in favor of the bill. Mr. Jerry Niezgodski, 2930 Bonds Avenue, South Bend, Indiana, asked how much in administrative fees would there be? Pam Meyer responded $105,000 that will go to the administration of the City, their department which pays for staff time and again they can only draw that money based on time spent documented with time sheets. There is a developer fee built into the monies allocated for each of the projects. The following individual spoke in opposition to this bill. Rev. Henry L. Davis, St., 215 N. Sheridan Street, South Bend, Indiana, stated that if you go to the Library and find the history of South Bend. The South Bend Heritage Corporation in the later part of the 1800’s separated to City when they were getting manufacturer’s here in the City, Oliver Corp.; Studebaker; Dodge Mfg. in Mishawaka; The Bendix Corp. so they separated to City by the river east and west. The most affluent people lived on the east side with a few privileged ruckuses over there. But it was a separation and the same thing is still going on today. Whether the people want to realize it or not and he stated that he doesn’t care what numbers are go and look for yourself. Things need to happen over there. There are more not-for-profit than anything over there so the growth on paper looks good, but in reality there is no growth over there. He state that a comment was made saying something about 60-80 percent of the police departments time is spent on that side of town. That speaks for itself. Disenfranchised people, that’s the way this thing was set up and that’s the way that it has continued to be. No houses are going to sell over there, contrary to popular belief, you might get one for $5,000.00 but that’s no growth. So with the bill it does need to come to the west side of South Bend because it’s just like this little kid was in the bedroom crying and they were wondering why he was crying so we went in and looked at the child and he’s got his foot in his mouth. He is gnawing on his foot but he doesn’t know that’s his foot, and that is the same way that it is with this city. Mr. Davis stated to the Council that they don’t know that they have their foot in their mouth that it’s the west side and you’re gnawing on your foot and it’s hurting you and it’s hurting the city. We need a healing here, we don’t need anymore separation, and people have got to come to together in order for this city to work. Sarcasm, anger and bitterness is not going to solve anything, we are grown people, let us act as grown people, get this vindictiveness out of your hearts. He stated that the Council is elected to carry forth a job, do your job and quit using this as a personal platform. There being no one else present wishing to speak in favor or in opposition to this bill. Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember LaFountain seconded the motion which carried by a voice vote of eight (8) ayes. RISE AND REPORT Councilmember Dieter made a motion to rise and report to the full Council. Councilmember Henry Davis seconded the motion which carried by a voice vote of eight (8) ayes. 26 REGULAR MEETING JUNE 13, 2011 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 10:34 p.m. President Derek D. Dieter presided with eight (8) members present. BILLS - THIRD READING ORDINANCE NO. 10093-11 AN ORDINANCE TO VACATE THE FOLLOWING DESCRIBED PROPERTY: MAPLE ROAD RUNNING NORTH AND SOUTH FROM PRAIRIE AVENUE TO THE ST. JOSEPH VALLEY PARKWAY 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. ORDINANCE NO. 10094-11 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 21 OF THE SOUTH BEND MUNICIPAL CODE, ARTICLE 1 BASIC PROVISIONS, SECTION 21-01.03 NONCONFORMING LOTS, USES, BUILDINGS, STRUCTURES OR SIGNS, TO ADD ANEW SECTION TO PROVIDE FOR CERTIFICATION OF LEGAL NONCONFORMING LOTS, USES, BUILDINGS, STRUCTURES OR SIGNS, AND TO AMEND AND ADD CERTAIN RELATED DEFINITIONS IN CHAPTER 21, ARTICLE 11 This bill had third reading. Councilmember Puzzello 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 eight (8) ayes. Additionally, Councilmember Puzzello 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 eight (8) ayes. ORDINANCE NO. 10095-11 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 17, ARTICLE 2, DIVISIONS 1, 3, 4 AND 6 OF THE SOUTH BEND MUNICIPAL CODE TO INCORPORATE THE ENVIRONMENTAL PROTECTION AGENCY (EPA)’S MODEL PRETREATMENT ORDINANCE 27 REGULAR MEETING JUNE 13, 2011 This bill had third reading. Councilmember White made a motion to pass this bill. Councilmember Varner seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. ORDINANCE NO. 11096-11 AN ORDINANCE OF THE COMMON COUNCIL OF SOUTH BEND, INDIANA, APPROPRIATING $157,000 RECEIVED FROM THE U.S. DEPARTMENT OF JUSTICE FOR THE WEED & SEED PROGRAM This bill had third reading. Councilmember White made a motion to pass this bill. Councilmember Varner seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. ORDINANCE NO. 10097-11 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND APPROPRIATING $1,708,707 FROM THE COMMUNITY DEVELOPMENT FUND (FUND 212) FOR THE NEIGHBORHOOD STABILIZATION PROGRAM 3 FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE CITY OF SOUTH BEND, INDIANA, AND DESIGNATED SUBGRANTEE AGENCIES FOR THE PROGRAM YEAR BEGINNING, MARCH 8, 2011, TO BE ADMINISTERED THROUGH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT This bill had third reading. Councilmember Rouse made a motion to pass this bill. Councilmember Varner seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. RESOLUTIONS RESOLUTION NO. 4109-11 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 700 WEST IRELAND ROAD, SOUTH BEND, IN 46614 WHEREAS, Indiana Code Section 36-7-4-918.6, requires the Common Council to give notice pursuant to Indiana Code Section 5-14-1.5-5, of its intention to consider Petitions from the Board of Zoning Appeals for approval or disapproval; and WHEREAS, the Common Council must take action within sixty (60) days after the Board of Zoning Appeals makes its recommendation to the Council pursuant to I.C. 36-7-4-918.6; and WHEREAS, the Common Council is required to make a determination in writing on such requests pursuant to Indiana Code Section 36-7-4-918.4, and WHEREAS, the South Bend Board of Zoning Appeals has made a recommendation, pursuant to applicable state law. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: 28 REGULAR MEETING JUNE 13, 2011 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: 700 West Ireland Road, South Bend, Indiana 46614 In order to permit the incidental sale of firearms as a part of Wal-Mart Supercenter retail store. 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. 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 Oliver Davis, Vice-Chairperson, Zoning & Annexation Committee, reported that this committee met and voted to send it to the full Council with a favorable recommendation. Mark Lyons, Assistant Zoning Administrator, 125 S. Lafayette Blvd., South Bend, Indiana, presented the report from the Area Board of Zoning Appeals. Mr. Lyons advised that the petitioner is seeking a Special Exception to allow for a gun shop and for the sale of firearms at the property located at 700 W. Ireland Road. He stated that the Area Board of Zoning Appeals held a public hearing on April 6, 2011 and sends this bill to the Council with a favorable recommendation. Mr. Joseph D. Calderon, Bose, McKinney & Evans, LLP., 111 Monument Circle, Suite 2700, Indianapolis, Indiana, representing Wal-mart. Mr. Calderon stated that this is a request for Special Exception to allow Wal-Mart Supercenter located at 700 W. Ireland Road to re-introduce the sale of firearms within its larger selection non sporting goods, and pursuant to Section 21-03.05(a)(2)(G) of the South Bend Zoning Ordinance, the sale of firearms falls under Section 21-03.05(a)(2)(G) of the South Bend Zoning Ordinance, the sale of firearms falls under the classification of a “gun shop”, thus required a Special Exception. Mr. Calderon stated that it is about 29 REGULAR MEETING JUNE 13, 2011 three 4’ shelves worth all in locked display cases. He stated that Wal-Mart does this in numerous stores throughout the country, there are a number of stores in Indiana which they are also re-introducing this and this is the only one that requires a special hearing. He stated that they have also tendered a plan of operation to assure that Wal-Mart will be acting responsibly and safely. He noted that it is not required in the zoning ordinance but in the initial conversations that he had with Councilmember’s Varner and Oliver Davis that they wanted additional details understanding the operation. He stated that they are happy to do that and be locked into the Plano gram that sets forth the location for the firearms. They are not close to any other business selling firearms, they are not close to a church, a school, or a child care facility, and there is a 200’ foot separation requirement in the ordinance. He stated that with those items in place they are not going to adversely affect any of the neighbors or the health or safety of the community. These are all obviously legal products Wal-Mart point of sale transaction goes through the national background check and fill out all the appropriate federal forms and there are additional procedures that are set forth in the plan of operation. He stated that he hoped that they have addressed all previous concerns by Council. Mr. Calderon asked for the Council’s favorable consideration. He stated that the Wal-Mart Store Manager Scott Ruoff is also present to answer any questions. Councilmember Oliver Davis stated that with the new State rulings regarding firearms how will that affect Wal-Mart in the future. Mr. Calderone stated that in the future and if they had filed this after the state law had passed, there probably wouldn’t have been a filing. What the new law does is that it affects the ability of local governments to regulation by using zoning and these types of restrictions that they are going through. Realistically, the City is getting a better deal because they are willing to lock themselves into what they are telling the Council in terms of what the shelf space is going to be the fact that they are only doing rifles and shotguns for hunting purposes, no handguns, no tactic weapons, etc. He stated that it is a better deal because they are promising you and it is part of the petition and always has been. Councilmember Oliver Davis stated that if this bill would not pass tonight, Wal-mart could wait until July 1, 2011 and let State law take over and can pretty much do what they want and won’t have to have Council approval. Mr. Calderone said that was probably so. Councilmember Oliver Davis asked Mr. Calderone to go over where the sales of firearms are going to take place within Wal-Mart. Mr. Calderone advised that as stated in the plan of operation that any time there is a point of sale of a firearm it must take place back at the sporting goods area, following the background check etc. At that point a Store Manager has to supervise the finalization of the transaction and actually carry the firearm out of the store with the customer once they exit the store then the customer can take the firearm and go about their business. He stated that this is a safe practice and one that they do nationwide. Councilmember Davis asked Mr. Calderone his opinion on the Channel 16 news article dated May 29, 2010 “Man admits to December shooting after Wal-Mart ammunition theft.” Mr. Calderone stated that as he understands it and the Wal-Mart Manager is here, is that the store procedure and remember that ammunition is regulated differently but the process is the same, the young man who secured the ammunition back in the supporting goods is taken to the front cashier to check out asked the cashier to see if he had “the right ammunition” and then just took off. It was a late night transaction. It was theft and just happened to be ammunition. The ammunition other than shot gun shells are all under lock and key in display cases back in sporting goods areas. 30 REGULAR MEETING JUNE 13, 2011 Council President Dieter asked that if anyone could come into the store at 4:00 a.m. and buy ammunition. Mr. Calderone stated that he believes that there are time limitations. Mr. Scott Ruoff, Store Manager, Wal-Mart, 700 W. Ireland Road, South Bend, Indiana, Residing at 51563 Terri Brooke Drive, Granger, Indiana, stated that all of their ammunition is in locked cases except for shot gun shells. If someone wanted to purchase at night they have to get a member of management to unlock the case walk the customer and the ammunition to the front of the store and then check out. Councilmember Dieter asked if they could purchase ammunition at 4:00 in the morning. Mr. Ruoff stated yes they could. He stated that there is no time limitation. Mr. Calderone stated that gun sales have restricted hours. Council Attorney Kathleen Cekanski-Farrand stated that the new gun law that takes effect July 1, 2011 does address ammunition and that there will be restriction on time. A Public Hearing was held on the Resolution at this time. There was no one present wishing to speak in favor of this bill. The following individuals spoke in opposition. Jolene Kochy, 215 W. Broadway, South Bend, Indiana, spoke in opposition to this bill. She stated that Wal-Mart is a large chain store and what the media is reporting that they are going to sell amour piecing ammunition. She stated that she just doesn’t think that this is safe. She stated that people are always breaking into locked cases and stealing merchandise, it doesn’t deter them at all. Rev. Greg Brown, 1238 Diamond, South Bend, Indiana, stated that he is very against this special exception. He stated that he is a youth minister in this community and lived on Diamond Street for 47 years. He stated that the other day he was approached at King Center by a 13 year old that told him that a gentlemen had come up to him and asked him to load up a book bag with ammunition and bring it out of the automotive department. So when kids tell him something he investigates the situation. He stated that he went to Wal-Mart to see for himself what was going on. When he went to Wal-Mart what he saw was a case with some bullets secure and the shot gun shells not secure. The fire exit door is right by the ammunition and what is going on is the kids are taking the ammunition out the fire exit door untouched. He stated that you have to be buzzed out to come out of the automotive, but not buzzed in and as the adult walks in the kid walks out. He stated that he went to the Wal-Mart on Portage because he lives just a few miles down the street. He stated that he asked the Manager for five (5) boxes of ammunition of shot gun shells and five (5) boxes of 9 mm. He said that the manager said that he had to get a key and was going to sell them to him and the manager placed the ammunition on the counter. Rev. Brown said that he told him never mind. He stated that there are gun shops that sell guns and ammunition, Wal-Mart is not the place to sell those things. Rev. Brown stated that he has been to several Wal-Marts in the area and they all have different procedures. Rev. Brown stated that he expects the Council to be behind him on this. Rev. Brown stated that if he can’t buy a beer at 3 o’clock in the morning but he can walk into Wal-Mart and buy all the ammunition he wants, this is a sad community. In rebuttal, Mr. Calderone stated that the lady and gentlemen have every right to speak and say their piece. Mr. Calderone reiterated that the ammunition sales are not regulated under this petition nor is it under the zoning ordinance. He stated that what they have tried to tendered goes beyond what the city’s zoning ordinance requires in terms of the findings for a Special Exception because they want to be a good corporate citizen and that they are good corporate citizens in terms of cooperating with the city and the police 31 REGULAR MEETING JUNE 13, 2011 department on various and different projects in the City with what had to deal with the sale of firearms. He stated that they have put in their petition that they will self restrict to only shot guns and rifles. This is only for sporting goods in fact they think it is a better idea to have this type of good in the sporting goods department where it is an accessory use and not a separate around the store it is much more innocuous that way. It is no different than going into Dick’s Sporting Goods which has a larger selection and folks can go in with their families and whether they are buying a t-shirt or pair of tennis shoes, it the same kind of thing. With all do respect basically what folks are saying is no gun, no ammo sales, but the zoning ordinance does allow for these things upon a Special Exception Petition and under the existing zoning district allows for the sale of sporting goods whether it’s within a department or a stand alone sporting goods store. So from a zoning perspective this petition makes sense it’s been passed by the Area Board of Zoning Appeals on through the Council Committee, gone through the process without any complaint by anyone who received notice with respect to the concern of their property values. He asked the Council for their favorable consideration. Council President Dieter advised that he is aware of what the new State Law is going to invoke, however, what the people here tonight are concerned about is that this more of a community based concern. He stated that the last time he was at Dick’s Sporting Goods store they closed at 9 p.m. He stated that his concern is selling ammo after 9 p.m., which is a bad thing as far as he is concerned. He stated that he doesn’t feel that it is necessary to sell ammunition after 9 p.m. Councilmember Varner stated that he is understanding in considering Wal-Mart’s request, however, he would like to see a friendly amendment not to sell ammunition after 7 p.m. and not again until 8 a.m. Councilmember Henry Davis stated that the whole spirit of the conversation makes him uneasy. He advised that there have been numerous shootings all over the city in the past several weeks. He stated that 90% of those shootings happened in his district. He stated that he isn’t sure if this is just coincidence or just bad timing for this special exception but would just let the State Law supersede. He stated that he is truly frustrated with gun violence and hearing people being shot and killed. He stated that he is not in favor of this bill. Councilmember Oliver Davis stated that one of the reasons that he is encouraged to vote on this bill tonight is not because he is a gun advocate, but because Wal-Mart is putting st more restrictions on themselves than what they would have had to do with the July 1 ruling by the State. He understands all the concerns raised tonight about gun violence st and respects those concerns. He stated that if they wait until July 1, then they won’t have the extra restrictions that this special exception has. He stated that he feels they will be given the citizens of South Bend a better service by putting in some levels of st protection in at this present time now that they would not be allowed to do July 1. Councilmember Oliver Davis asked if crime had gone up in any of the areas where Wal- Mart has re-introduced gun and ammunition sales. Mr. Calderone stated that he does not have any statistics. The re-roll out is relatively recent. He has not heard of any complaints. They work to provide communication to their constituents through their public relations people. Wal-Mart does this not only in Indiana, but all around the country, thousands of store have it and do it responsible, consistently with their policies that are designed to be safe for those communities. They are not interested in doing anything other than selling guns for hunting and sporting purposes nothing else. Nothing has been traced back as far as he knows to any of the activity in Indiana. Councilmember Oliver Davis asked if they could put more teeth into this bill by incorporating language to restrict the time of sale of ammunition. Council Attorney Kathleen Cekanski-Farrand advised that at this stage she did not think the Council could make it a condition of the Resolution before the Council tonight. She 32 REGULAR MEETING JUNE 13, 2011 stated that the State Law is very clear and that there are four criteria that the Council can st look at and the Council has more opportunity to regulate now than come July 1. The very plan of operation that is on file and a part of the Resolution, if there is a violation the Building Commissioner would have something to follow-up on. Council Attorney Kathleen Cekanski-Farrand stated that Mr. Calderone could take the offer to restrict sales back to Wal-Mart for their consideration. Mr. Calderone stated that he does not have the authority to make that decision. He advised that they would respond back in writing to the Council by the end of the week. Councilmember Rouse stated that he believes they need to address the issue of the spike in gun violence. Councilmember Oliver Davis stated that they way to address issues like that is to contact our State Legislators. Councilmember Oliver Davis made a motion to adopt this Resolution. Councilmember LaFountain seconded the motion which carried by a roll call vote of five (5) ayes (Councilmember’s Rouse, White, LaFountain, Varner, Oliver Davis,) three (3) nays (Councilmember’s Henry Davis, Puzzello, Dieter.) BILL NO. 11-30 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 1019 TALBOT AVENUE AND 1023 TALBOT AVENUE, SOUTH BEND, IN 46617 Councilmember Oliver Davis, Vice-Chairperson, Zoning & Annexation Commission, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with an unfavorable recommendation. Mark Lyons, Assistant Zoning Administrator, Building Department, 125 S. Lafayette Blvd., South Bend, Indiana, presented the report from the Area Board of Zoning Appeals. Mr. Lyons advised that the petitioner is seeking a special exception to allow for a two family dwelling in a “SF2” District, on property located at 1019 & 1023 Talbot Street, to be combined into a duplex. He stated that the Area Board of Zoning Appeals held a public hearing on April 6, 2011 and sends this bill to the Common Council with a unanimous unfavorable recommendation. Mr. Frank Agostino, 120 W. LaSalle Avenue, Suite 704, South Bend, Indiana, made the presentation on behalf of the petitioner Cosimo Bumbaca. Mr. Agostino advised that the petitioner is seeking a special exception to allow a two family dwelling in a SF2 District. Mr. Agostino advised that Mr. Bumbaca would like to consolidate 1019 Talbot and 1023 Talbot into one residence. The purpose was to add 240 square feet to the two homes and make it more desirable to the renters of the property. He stated that Mr. Bumbaca has been involved in rental properties for several years and has improved those properties over the years. Mr. Agostino noted that it was mentioned earlier in the committee meeting this afternoon that this area was a shooting gallery and an officer was killed in the line of duty in this area. Mr. Agostino stated that this is a private investor investing his own money into this project to help beautify the city. Mr. Agostino stated that there is opposition to this special exception because it was mentioned that Mr. Bumbaca was going to rent to students and that he currently rents to students. He stated that students are part of the community and those students should not be discriminated against, just because of whom they are. Not all students throw parties, not all students get into trouble; there shouldn’t be any discrimination against somebody 33 REGULAR MEETING JUNE 13, 2011 just because they fall into some specific category. He stated that Mr. Bumbaca proposes to do is join the homes as was presented at the Board of Zoning Appeals and there were blueprints for that construction showing the setbacks for the properties, a picture of what the properties were going to look like. Mr. Agostino stated that this matter has been continued a couple of times so that Mr. Bumbaca could gather that further information to show what the property is going to be and has shown that information at the prior committee meeting levels. The neighborhood is located off of South Bend Avenue, and there are two houses on that street that are Chicago Style Townhouses and Garden stnd Apartments, 1 Floor and 2 Floor and Three Story monstrosities that don’t fit with the neighborhood aesthetically. Mr. Agostino reiterated the two on South Bend Avenue and one on the corner of South Bend Avenue and St. Peter St., and one on Sunnyside. He stated that if the Council would permit they would like to file this information with the City Clerk and pass around to Council for their review. He stated that the information that is being presented is in the same location in the near northeast neighborhood. He asked the Council for their favorable support. Mr. Agostino stated that the area is rental properties and reiterated that Mr. Bumbaca is a private investor using private dollars to beautify this area. A Public Hearing was held on the Resolution at this time. There was no one present wishing to speak in favor. The following individuals spoke in opposition to the bill. Noreen Dean-Moran, 716 W. Colfax, South Bend, Indiana, spoke in opposition to this bill. She advised that she does not live in that neighborhood, but lives in a neighborhood which suffers the same kinds of attempts by landlords to increase their profit. She stated that she doesn’t have anything against a profit, but against the fact that most of the people are landlords in an area in which they don’t mind it. This is the reason she is against it. The neighborhood only becomes a someplace for them to make a profit. The three monstrosities that Mr. Agostino mentioned earlier, she is in complete agreement that they are just that. They got to be there only because the city did not realize that that area around South Bend Avenue had been from the 1930’s commercial. So the building of those monstrosities which was against every height and width and so forth was seen first as a possible improvement, that is not the case those houses look ridiculous and that is not a reason that they look ridiculous that Mr. Bumbaca should be able to put two separate houses together. She stated that she does not know where the extra square footage comes from, it may be configured differently, but if you put two 1,500 square foot house together it still only comes out to 3,000 square feet. She stated that she likes students very much, she teaches them. They are presently residence, they are not citizens it would not happen in their own neighborhoods where they come from and they can live like the rest of the people they do not have to live like they used to with Mr. Kramer’s houses of 10, 12, 15 people living there, so that the landlord can make close to $10,000 a month. She reiterated again that she does not live in this area, she lives on the near west side but they have the same kind of thing going on. She stated that the near north east cooperative has done a lot of work and this is exactly in the opposite direction. Mr. Bill Stentz, 1020 E. Colfax, South Bend, Indiana, spoke in opposition to this bill. Mr. Stenz stated that he is the President of the North East Neighborhood Council (NENC), and on the Board of the Northeast Neighborhood Revitalization Organization (NNRO). He stated that this is just a bad idea. He stated that when this proposal was presented at the Area Plan Commission, both the NNRO and the NENC were very much against it. Mr. Stentz reiterated that this was given a unanimous unfavorable recommendation. He stated that these two homes on Mr. Bumbaca’s website for rentals for student housing both indicate that they are five bedroom houses for rent to students. So now there would be 10 bedrooms for 10 students on lots on 33 or 34 feet wide and possibly 10 cars. He stated that he wasn’t sure what the plan was for the second floor of these homes and could possibly get another one or two bedrooms upstairs. He stated that is just too many people, too dense and a bad idea. 34 REGULAR MEETING JUNE 13, 2011 In rebuttal, Mr. Agostino stated that the allegation that both houses being advertised as five bedrooms is denied. The houses are not that big where they could be used as five bedrooms. He reiterated that this seems to be discriminatory against students and also seems a little discriminatory toward Mr. Bumbaca because there are those houses on South Bend Avenue and St. Peter Street and on Sunnyside. There is also a group home located at 711 Turnock where there are more than 10 individuals unrelated persons in the same area who were allow there. He stated that every individual should be allowed to participate equally and not be discriminated against. He reiterated that this is a private investment, using his own property within the rules for the best way that they see fit for that property and to make a living especially in this tight economy. Mr. Agostino stated that they should be allowed to make a private investment and private investment should be encouraged by the Council. Councilmember Oliver Davis asked if the petitioner has been in communication with Councilmember Puzzello, the District Councilmember for the area and the neighbors and various neighborhood organizations. Mr. Agostino advised Mr. Bumbaca to speak with individual Councilmember’s so he could explain what his plan was for the property. He stated that he wasn’t present when those meetings might have taken place with those individual councilmember’s or the near north east neighborhood. Councilmember Puzzello wanted to clarify the mention of disliking students. She stated that she doesn’t dislike students and knows quite a number of students actually who she likes very much. It is a question of zoning. First of all, the use that the two homes have at least until graduation as stated by Mr. Bumbaca that they were both empty and Mr. Agostino stated that one was empty. She stated that she is not sure if they are currently occupied or vacant. She stated that the use is illegal because only two unrelated people are allowed in a single family home with single family zoning which this property is. She stated that the two houses are very different and that they would not make a good duplex. Councilmember Henry Davis asked what the current taxes on these properties are. Mr. Agostino stated that they didn’t have the exact amount. But they was that these properties would be assessed is by using the Gross Rent Multiplier. You take the average rent in that area and times it by the gross rent multiplier. Mr. Agostino used an example of $500.00 a month times 12 months would make $6,000.00 a year then using the gross rent multiplier depending on the year that you are talking about but for exemplary purposes it would have been a 5. So around $30,000.00 would be the assessed value on that property, that is not the exact figure, but it is the type of procedure that would have been worked out on that property. He stated that the property record card would have the exact assessed value. Councilmember Henry Davis asked if by combining the two homes would the value go up? Mr. Agostino advised that they would go to the building department and declare the cost of that new addition is going to be and get a permit to do so. A copy of that permit is forwarded to the Assessor’s Office for them to data collect and pick up on the Property Record Card for additional assessed value. . Councilmember Henry Davis asked how then were the monstrosities allowed to be built? Mr. Agostino stated that is the question that they were asking of the Council. He stated that if they were permitted and the uses in this neighborhood are generally rental uses then his client should be allowed to go forward with his project as long as they abide by the rules and regulations. Mr. Agostino stated that they shouldn’t punish his client for something that hasn’t been committed yet. 35 REGULAR MEETING JUNE 13, 2011 Councilmember Puzzello stated that the difference between this project and the monstrosities is that this project is being made into a duplex and the Council is the deciding body to make that decision. In the case of the monstrosities, the property was already zoned multi-family. She stated that they did not come before the Council nor did they come before any other city body except maybe the Board of Zoning Appeals for variances. Councilmember Rouse stated that those residences are not in the same area. They are located south and north of the area in question. He also questioned with the widening of S.R. 23/South Bend Avenue how would these properties be affected. Mr. Stenz stated that there are plans for that area the NNDA that was developed in 2003 is being updated right now. He stated that they are almost certain of the widening of Indiana 23 a number of those houses and a lot of property along this neighborhood specifically are going to be taken by the State of Indiana. So it will be definitely affected very near these properties. Council President Dieter stated that he appreciates the intent and everything and commends all involved in doing great things in that area. He stated that this is a tough decision and made a motion to adopt this Resolution. Councilmember Oliver Davis seconded the motion. The motion died by a 4-4 tie vote. (Ayes: Henry Davis, Oliver Davis, Rouse, Dieter) (Nays: White, LaFountain, Puzzello, Varner) Council Attorney Kathleen Cekanski-Farrand advised that another motion would be fruitless, so the bill would be continued until the June 27, 2011 meeting of the Council when nine (9) members could be present. RESOLUTION NO. 4110-11 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 AIRPORT ECONOMIC 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”), on April 26, 2011, approved and adopted its Resolution No. 2871 (the “Declaratory Resolution”), Exhibit A, amending the acquisition list in the Airport Economic Development Area Development Plan (the “Plan”) for the Airport Economic Development Area (the “Area”) and amending the Airport Economic Development Area Development Plan (the “Plan Amendment”); and , WHEREAS the Plan Amendment calls for the addition of the parcel located at 3408 Ardmore Trail, South Bend, Indiana, 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”), on May 17, 2011, adopted and approved 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 36 REGULAR MEETING JUNE 13, 2011 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 approve the Plan Commission Order in order to permit the Commission to proceed with the redevelopment of the Area; 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. s/Derek D. Dieter Member of the Common Council Councilmember Rouse, Chairperson, Community and Economic Development Committee, reported that t5his committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. th Mr. David Relos, Community & Economic Development, 12 Floor, County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Relos advised that the proposed bill would approve an order of the St. Joseph County Area Plan Commission approving a declaratory resolution adopted by the South Bend Redevelopment Commission (RDC). He stated that the process began when the South Bend Redevelopment Commission conducted a study and determined that it is necessary and beneficial to the orderly redevelopment of the Airport Economic Development Area (AEDA) to add an additional parcel to the AEDA Acquisition List. He stated that the parcel is located at 3408 Ardmore Trail and is an 83,000 square foot commercial building on 8 acres. The acquisition of this property would allow the Commission to consolidate it with the abutting 8.7 acre Commission owned property, making a larger, more marketable property for redevelopment. A Public Hearing was held on the Resolution at this time. There being no on present wishing to speak to the Council either in favor of 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 eight (8) ayes. BILLS - FIRST READING BILL NO. 34-11 FIRST READING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 3500 BLOCK OF EAST MCKINLEY AVENUE AND 600 BLOCK OF HICKORY ROAD, COUNCILMANIC DISTRICT FOUR IN THE CITY OF SOUTH BEND, INDIANA 37 REGULAR MEETING JUNE 13, 2011 This bill had first reading. Councilmember Rouse made a motion to refer this bill to the Area Plan Commission. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 35-11 FIRST READING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY(S) LOCATED AT 429, 423, 431, 425 COTTAGE GROVE AVENUE AND 426 CUSHING STREET, COUNCILMANIC DISTRICT 2 IN THE CITY OF SOUTH BEND, INDIANA This bill had first reading. Councilmember Rouse made a motion to refer this bill to the Area Plan Commission. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 36-11 FIRST READING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 1007 NORTH BENDIX DRIVE AND PART OF 1025 NORTH BENDIX DRIVE, SOUTH BEND, INDIANA 46628, COUNCILMANIC DISTRICT 2 IN THE CITY OF SOUTH BEND, INDIANA This bill had first reading. Councilmember Rouse made a motion to refer this bill to the Area Plan Commission. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 37-11 FIRST READING ON A BILL OF THE COMMON COUNCIL OF SOUTH BEND, INDIANA, FOR BUDGET TRANSFERS FOR VARIOUS DEPARTMENTS WITHIN THE CITY OF SOUTH BEND, INDIANA FOR THE YEAR 2011 This bill had first reading. Councilmember LaFountain made a motion to refer this bill to the Personnel and Finance Committee and set it for Public Hearing and Third Reading on June 27, 2011. Councilmember Puzzello seconded the motion which carried by a voice vote of eight (8) ayes. UNFINISHED BUSINESS REPORTS FROM AREA BOARD OF ZONING APPEALS BILL NO. 11-44 A RESOLUTION OF THE COMMON COUNCIL OF THE CITYOF SOUTH BEND, INDIANA, APPROVING A PETITION OF THE SOUTH BEND BOARD OF ZONING APPEALS FOR THE PROPERTY LOCATED AT 1117-11191/2 W. WASHINGTON Councilmember Rouse made a motion to refer this bill to the Zoning and Annexation Committee and set it for Public Hearing and Third Reading on June 27, 2011. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. 38 REGULAR MEETING JUNE 13, 2011 SUSPENSION OF RULES TO ADD BILL NO. 38-11 Councilmember Varner made a motion to suspend the rules to allow first reading on Bill No. 38-11. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. City Clerk John Voorde gave first reading to Bill No. 38-11. Councilmember Puzzello made a motion to refer this bill to the Personnel and Finance Committee and set it for Public Hearing and Third Reading on June 27, 2011. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. NEW BUSINESS Councilmember Henry Davis thanked everyone for the expressions of sympathy on the passing of his grandmother. PRIVILEGE OF THE FLOOR There was no one present wishing to speak to the Council at this time. ADJOURNMENT There being no further business to come before the Council, President Derek D. Dieter adjourned the meeting at 11:41 p.m. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Derek D. Dieter, President 39