HomeMy WebLinkAbout12-12-11 Community & Economic Development Committee' COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
DECEMBER 12, 2011
Committee Members Present: Timothy Rouse, Chairperson, Ann Puzzello,
Karen L. White
Other Council Members Present: Tom LaFountain, David Varner, Al "Buddy" Kirsits
Others: Mayor Stephen Luecke, Gary Gilot, Gregg Zientara
Kevin Allen, Aladean DeRose, Don Inks,
Sheri Miller - Story, Linda Wolfson, Hardie Blake,
Murray Miller, Rita Kopala, Alan Feldbaum,
Kyle Chamberlin
Agenda: Bill No. 11 -60 — Appropriation for WBE /MBE
Bill No. 11 -76 — Augment Minority Economic Development Opportunities
Bill No. 75 -11 - Economic Development Revenue Bonds for PEI/ Genesis
Chairperson Rouse opened the hearing by announcing his intent to ask a bill, namely
#11 -60, he had sponsored, be withdrawn. Councilmember Puzzello moved to support a
request to withdraw Bill No. 11 -60. Councilmember White seconded the motion and
agreed.
Chairperson Rouse then took up Bill No. 11 -76 a measure he sponsored asking the
Council to support a study aimed at increasing economic opportunity in the minority
community. He cited earlier studies had predicted a growing disparity between economic
comparisons of minority and non - minority populations. Rouse passionately explained
the benchmarks of these earlier studies now on file in the Clerk's Office and attached
herein, have come to fruition. The hoped for consensus, on the part of this Council, was
that a new study was needed to take from the past, recognize the present, and strategically
plan a paradigm shift to get positive benefit for the aggregate community. While the
resolution did not specify who would sponsor the study or fund it recognizing its need to
be done was a critical first step.
Citizen Member Murray Miller asked what would become the $110,000 the city budgets
annual to support the Chamber of Commerce's economic development efforts through
Project Future in that the Chamber of Commerce was closing that program. Chairperson
Rouse and the Mayor responded that the Chamber's restructuring of their approach to
economic development was still in a state of flux. The City's annual supplement would
in effect be held in escrow.
Councilmember Varner commented that South Bend dollars should be used to promote
South Bend not diluted promoting regional development.
Linda Wolfson cautioned that the withdrawn Bill No. 11 -60 was a capacity building
measure while Bill NO. 11 -76 was not. Rouse responded that current economic
development efforts for minorities were too fragmented. A study would focus efforts.
Rev. Hardie Blake said that too often responses to economic development initiatives for
minorities lack advocacy for growing minority business capacity. He argued the
MBE /WBE Utilization Board should do more than act as a "gatekeeper." He said
evidence of discrimination is apparent. He added that efforts by the city to require
certification for minority business to qualify for City business while non - minorities did
not need certification were discriminatory.
Rouse responded saying that a disparity study could identify discriminatory obstacles and
work to remove them.
Kyle Chamberlin suggested the study not necessarily be funded by the city; but rely on
other entities such as the universities and the Chamber to both fund and broaden the study
beyond just South Bend.
Rouse disagreed saying the direction and control of a study might be compromised
without City funding.
Ultimately Bill No. 11 -76 was given a favorable recommendation to Council after a
motion from Councilmember White a second by Murray Miller and support by all.
The next item on the agenda, Bill No. 75 -11, was presented by Barnes & Thornburg
Attorney Alan Feldbaum representing PEI /Genesis. Mr. Feldbaum recounted how the
Council had previously approved the issuance of economic development bonds for
PEI/Genesis to fund their expansion. They were now requesting another approval, this
time for a bond re- structuring. He explained this was being done to take advantage of
lower interest rates; but still have no financial obligation for the city.
Murray Miller asked if PEI/Genesis had met the requirements of the tax abatement they
were granted in 2006? Don Inks said all goals were not only met, but exceeded. All 140
jobs were preserved and 83 new jobs were created where the target promised was only
12.
On a motion by Councilmember Puzzello, seconded by Karen White, and supported by
all, Bill No. 75 -11 was sent to Council favorably.
There being no further business to come before the committee at this time, Chairperson
Rouse adjourned the meeting at 5:30 p.m.
Respectfully Submitted,
Timothy A. Ro e, Chairperson
Community and Economic Development Committee