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HomeMy WebLinkAbout10-24-11 Common Council Meeting Minutes REGULAR MEETING OCTOBER 24, 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, October 24, 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 Al “Buddy” Kirsits At-Large Timothy Rouse At-Large, Chairperson Committee of the Whole Absent: Oliver Davis 6th District, Vice-President Karen L. White 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 October 10, 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 Puzzello made a motion that the minutes of the September 26, 2011 Meeting of the Council be accepted and placed on file. Councilmember LaFountain seconded the motion which carried by a voice vote of seven (7) ayes. SPECIAL BUSINESS There was no special business to come before the Council at this time. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:03 p.m. Councilmember LaFountain made a motion to resolve into the Committee of the Whole. Councilmember David Varner seconded the motion which carried by a voice vote of (7) ayes. Councilmember Timothy 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. 1 REGULAR MEETING OCTOBER 24, 2011 PUBLIC HEARINGS BILL NO. 64-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS OF 2011 AND APPROVING AUTHORIZING OTHER ACTIONS IN RESPECT THERETO $1,500,000 SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2011 SOUTH BEND CAREER ACADEMY PROJECT Councilmember Rouse, Chairperson, Community & Economic Development Committee, reported that this Committee met this afternoon and voted to send it to the full Council with no recommendation. Mr. Steve Hartz, Vice-President, South Bend Career Academy, residing at 63551 Miami Road, South Bend, Indiana, made the presentation for this bill. Mr. Hartz advised that the bonds are being issued to finance the construction of a 106,000 square foot charter school located at 3801 Crescent Circle in the Blackthorn Office Park. He noted that the South Bend Economic Development Commission adopted their resolution on September 19, 2011, finding that the financing of certain economic development facilities of the South Bend Career Academy, Inc. complies with the purposes and provisions of Indiana Code 36-7-11.9 and Indiana Code 36-7-12, and that such financing will be of benefit to the health and welfare of the City of South Bend, Indiana and its citizens. Councilmember Henry Davis asked Mr. Hartz how many times have they asked the South Bend Community School Corporation to do this. Mr. Hartz stated they have asked the school corporation numerous times to no avail. 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 Kirsits seconded the motion which carried by a voice vote of seven (7) ayes. RISE AND REPORT Councilmember Henry Davis made a motion to rise and report to the full Council. Councilmember Kirsits seconded the motion which carried by a voice vote of seven (7) ayes. ATTEST: ATTEST: _________________________ _________________________ John Voorde, City Clerk Timothy Rouse, Chairperson Committee of the Whole 2 REGULAR MEETING OCTOBER 24, 2011 REGULAR MEETING RECONVENED Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County-City Building at 7: 12 p.m. President Derek Dieter presided with seven (7) members present. BILLS – THIRD READING ORDINANCE NO. 10127-11 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS OF 2011 AND APPROVING AUTHORIZING OTHER ACTIONS IN RESPECT THERETO $1,500,000 SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2011 SOUTH BEND CAREER ACADEMY PROJECT This bill had third reading. Councilmember Puzsello made a motion to pass this bill. Councilmember Varner seconded the motion which carried. The bill passed by a roll call vote of seven (7) ayes. RESOLUTIONS BILL NO.11-57 A RESOLUTION SUPPORTING THE INVESTMENT OF CAGIT, TIF, UDAG AND CEDIT MONIES IN THE CHASE TOWER IN DOWNTOWN SOUTH BEND Councilmember Henry Davis made a motion to continue this bill until the November 14, 2011 meeting of the Council. Councilmember Kirsits seconded the motion which carried by a voice vote of seven (7) ayes. RESOLUTION NO. 4123-11 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING FINANCING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES $1,500,000 SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2011, SOUTH BEND CAREER ACADEMY PROJECT WHEREAS, the City of South Bend, Indiana (the “City”) is authorized by I.C. 36-7-11.9 and 12, as supplemented and amended (the “Act”), to issue revenue bonds for the financing of economic development facilities, the funds from said financing to be used for the acquisition, construction, installation and equipping of said facilities, and said facilities to be either leased to another person or directly owned by another person; and WHEREAS, South Bend Career Academy, Inc., an Indiana not-for-profit corporation, or its assigns (the “Applicant”) has requested of the South Bend Economic Development Commission (the “Commission”) and the City issue and sell its economic development revenue bonds (the “Bonds”) for the purpose of providing financing to the Applicant in an amount not to exceed $1,500,000 of certain economic development facilities consisting of the acquisition, construction, installation and equipping of a building and related facilities consisting of a 106,000 square foot charter school located at 3 REGULAR MEETING OCTOBER 24, 2011 3801 Crescent Circle3 in the Blackthorn office park on South Bend’s northwest side (the “Project”) and the City wishes to induce the Applicant to acquire, construct, install and equip the Project; and WHEREAS, the Project will be owned and operated by the Applicant and will be used as a charter school; and WHEREAS, the South Bend Redevelopment Commission (“Redevelopment Commission”) has approved a pledge of Pledged Tax Increment (as defined in the Resolution adopted by the Redevelopment Commission on September 12, 2011) to be used to pay debt service on the Bonds to offset payments required to be made by the Applicant; and WHEREAS, it appears from the application submitted to the Commission that the creation and retention of opportunities for gainful employment, the creation of business opportunities and the providing of secondary education to be achieved by the Project in the City will serve a public purpose and will be of benefit to the health and general welfare of the City, and that the proposed financing complies with the provisions of the Act; and WHEREAS, the Applicant will, subsequent to the adoption of this Resolution and before sale of the Bonds, seek the approval of the Commission and request the Commission to issue its report regarding the Project as required by Section 23 of Chapter 12 of the Act; and WHEREAS, it appears that the Project will not have an adverse competitive effect on any similar facility already constructed or operating in the City; NOW THEREFORE, BE IT RESOLVED, by the Common Council (the “Common Council” of the City as follows, based upon the application received by the Commission and the evidence submitted and presentations made by the Applicant, its agents and counsel as required by the Act: SECTION I. The Common Council finds, determines, ratifies and confirms that the creation and retention of opportunities for gainful employment, the creation of business opportunities and the providing of secondary education to be achieved by the Project in the City will be of benefit to the health and general welfare of the citizens of the City; and that it is in the public interest that this Common Council take such action as it lawfully may to encourage the creation or retention of opportunities for gainful employment and the creation of business opportunities in and near said City. SECTION II. The Common Council further fins, determines, ratifies and confirms that the issuance and sale of the Bonds of the City under the Act in an amount not to exceed $1,500,000 for the Project and the loan of the proceeds of the Bonds to the Applicant will serve the public purposes referred to above, in accordance with the Act. SECTION III. In order to induce the Applicant to proceed with the Project, the Common Council hereby finds, determines, ratifies and confirms that: (i)It will take or cause to be taken such actions pursuant to the Act as may be reasonably required to implement the aforesaid financing, or as it may deem reasonably appropriate in pursuance thereof; provided that all of the foregoing shall be mutually acceptable to the City and the Applicant; and (ii)It will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such action as may be reasonably necessary and advisable for the authorization, issuance and sale of said Bonds, provided that all of the foregoing shall be mutually acceptable to the City and the Applicant. 4 REGULAR MEETING OCTOBER 24, 2011 SECTION IV. All costs of the Project, including but not limited to, costs incurred for planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, and the acquisition, construction, installation and equipping of the Project, including reimbursement or repayment to the Applicant of moneys expended after the date which is sixty (60) days prior to the date of adoption by the Applicant’s Board of Directors of its Reimbursement Resolution will be permitted to be included as part of the costs of the Project to be financed out of the loan of the proceeds from the sale of the Bonds to the extent permitted by the Act and applicable regulations promulgated under the Internal Revenue Code of 1986, as amended. SECTION V. All action taken and approvals given by the City with regard to the Applicant are based upon the evidence submitted and representations made by the Applicant, its agents or counsel to the Commission and the City. No independent examination, appraisal or inspection of the Project was made, requested, or is contemplated by the City. SECTION VI. The City does not, by this or any other approval or finding, guarantee, warrant or even suggest that the Bonds, coupons or series thereof will be a reasonable investment for any person, firm or corporation. SECTION VII. The City shall not be obligated, directly or indirectly, to see to the application or use of the proceeds from the sale of the Bonds or to see that the contemplated improvements, if any, are constructed. The City is in no way responsible to the holders of any Bonds for any payment obligation created by the Bonds. SECTION VIII. The City does not warrant, guarantee or even suggest that interest to be paid to or income to be received by the holders of any Bond, coupon, or series thereof is exempt from taxation by any local, state or federal government. SECTION IX. The Bonds hall be special, limited obligations of the City payable solely from the funds provided therefore as described in the indenture authorizing the Bonds, and shall not constitute an indebtedness of the Commission or the City or the City or a loan of the credit thereof. SECTION X. This resolution does not constitute a binding obligation of the Commission or the City to issue the Bonds, but instead, is a commitment by the City to proceed with negotiations for the financing described herein with the Applicant and is subject to the adoption of a bond ordinance by the City in accordance with the provisions of the Act. SECTION XI. This resolution shall be in full force and effect upon adoption and compliance with I.C. 36-4-6- et. seq. s/Derek D. Dieter Member of the Common Council Councilmember Rouse, Chairperson, Community and Economic Development committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with no recommendation. Mr. Stephen Hartz, 63551 Miami Road, South Bend, Indiana, made the presentation for this bill. Mr. Hartz advised the bonds are being issued to finance the construction of a 106,000 square foot charter school located at 3801 Crescent Circle in the Blackthorn Office Park. He noted that the South Bend Economic Development Commission adopted their resolution on September 19, 2011, finding that the financing of certain economic 5 REGULAR MEETING OCTOBER 24, 2011 development facilities of the South Bend Career Academy, Inc. complies with the purposes and provisions of Indiana Code 36-7-11.9 and Indiana Code 36-7-12, and that such financing will be of benefit to the health and welfare of the City of South Bend, Indiana and its citizens. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Varner made a motion to adopt this Resolution. Councilmember Henry Davis seconded the motion which and the Resolution was adopted by a roll call vote of seven (7) ayes. BILL NO. 11-60 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, SUPPORTING THE APPROPRIATION OF $179,100 FOR THE CREATION OF THE MINORITY AND WOMEN BUSINESS DEVELOPMENT PROGRAM IN SOUTH BEND, INDIANA Councilmember Varner made a motion to continue this bill until November 14, 2011, meeting of the Council. Councilmember Puzzello seconded the motion which carried by a voice vote of seven (7) ayes. RESOLUTION NO. 4124 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING AN ORDER OF THE ST. JOSEPH COUNTY AREA PLAN COMMISSION APPROVING A CERTAIN DECLARATORY RESOLUTION AND AN AMENDMENT TO THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN ADOPTED BY THE SOUTH BEND REDEVELOPMENT COMMISSION WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the governing body of the South Bend Department of Redevelopment and the Redevelopment District of the City of South Bend, Indiana, pursuant to Indiana Code 36-7-14 (the “Act”), on September 13, 2011, approved and adopted its Resolution No. 2932 (the “Declaratory Resolution”), Exhibit A, amending the acquisition list in the South Bend Central Development Area Development Plan (the “Plan”) for the South Bend Central Development Area (the “Area”) and amending the South Bend Central Development Area Development Plan (the “Plan Amendment”); and WHEREAS, the Plan Amendment calls for the addition of 318 East Colfax Avenue, 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 October 18, 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 6 REGULAR MEETING OCTOBER 24, 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. PASSED AND ADOPTED by the Common Council of the City of South Bend, Indiana, this 24th day of October, 2011. s/Derek D. Dieter Member of the Common Council Councilmember Rouse, Chairperson, Community and Economic Development committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with no recommendation. th Mr. Matt Sikora, Planner, Economic Development Department, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Sikora advised that on September 13, 2011, the Redevelopment Commission approved Declaratory Resolution No. 2932, which began the process to amend the Development Plan of the South Bend Central Development Area, to allow for the acquisition of property located at 318 E. Colfax Avenue (the former Wharf Restaurant site.) This proposal was further considered and approved (as Resolution No. 221-11) during the October 18, 2011 meeting of the Area Plan Commission. The site has been sitting vacant for approximately 10 years, and in the interest of spurring additional development along the east bank of the St. Joseph River and to be more responsive and in a position to negotiate a potential purchase given the current owners’ revived interest in selling it will be necessary to add the property to the acquisition list. Staff has assed this property and found its acquisition and proposed plan of reuse to be consistent with the goals and objectives of the East Bank Village Master Plan. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Puzzello made a motion to adopt this Resolution. Councilmember Varner seconded the motion which and the Resolution was adopted by a roll call vote of six (6) ayes and one (1) nay (Councilmember Rouse.) 7 REGULAR MEETING OCTOBER 24, 2011 BILLS - FIRST READING BILL NO.65-11 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $250,000 FOR MAINTENANCE OF ALONZO WATSON PEDESTRIAN BRIDGE TRAVERSING CHAPIN AVENUE IN THE CITY OF SOUTH BEND IN 2011 This bill had first reading. Councilmember Henry Davis made a motion to refer this bill to the Personnel & Finance Committee and set it for Public Hearing and Third Reading on November 14, 2011. Councilmember Varner seconded the motion which carried by a voice vote of seven (7) ayes. BILL NO. 66-11 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $60,000 IN CITY GENERAL FUND #101 CODE ENFORCEMENT DEPARTMENT FOR ILLEGAL DUMPING CLEANUP ACTIVITIES TO BE PERFORMED BY SOLID WASTE DEPARTMENT AND REIMBURSED FROM GENERAL FUND #101 TO SOLID WASTE OPERATING FUND #610 IN 2011 This bill had first reading. Councilmember Henry Davis made a motion to refer this bill to the Personnel & Finance Committee and set it for Public Hearing and Third Reading on November 14, 2011. Councilmember Varner seconded the motion which carried by a voice vote of seven (7) ayes. UNFINISHED BUSINESS REPORT FROM AREA PLAN COMMISSION BILL NO. 58-11 AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LCOATED AT 717 EAST LASALLE STREET, SOUTH BEND, INDIANA 46617, COUNCILMANIC DISTRICT NO. 4, IN THE CITY OF SOUTH BEND, INDIANA Councilmember Henry Davis made a motion to refer this bill to the Zoning and Annexation Committee and set it for Public Hearing and Third Reading on November 14, 2011. Councilmember Varner seconded the motion which carried by voice vote of seven (7) ayes. 8 REGULAR MEETING OCTOBER 24, 2011 REPORT FROM AREA BOARD OF ZONING APPEALS BILL NO. 11-59 A RESOLUTON OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A PETITION OF THE AREA BOARD OF ZONING APPEALS OF ST. JOSEPH COUNTY, INDIANA, FOR THE PROPERTIES LOCATED AT (618, 622, 626, 636 LINCOLNWAY EAST, VACANT LAND ADJACENT TO AND EAST OF 701 SOUTH STREET AND 611, 613, 701 SOUTH STREET AND 514 AND 518 RUSH STREET, SOUTH BEND, INDIANA) Councilmember Henry Davis made a motion to refer this bill to the Zoning and Annexation Committee and set it for Public Hearing and Third Reading on November 14, 2011. Councilmember Varner seconded the motion which carried by voice vote of seven (7) ayes. NEW BUSINESS There was no new business to come before the Council at this time. PRIVILEGE OF THE FLOOR COMMENTS FROM REV. LAWRENCE GRANT REGARDING THE OLD TRANSPO LOT Rev. Lawrence Grant, 721 E. Broadway, South Bend, Indiana, questioned what was going to be done with the old TRANSPO lot on Northside Boulevard. ADJOURNMENT There being no further business to come before the Council, President Derek D. Dieter adjourned the meeting at 7:23 p.m. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Derek D. Dieter, President 9