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HomeMy WebLinkAbout04-09-05 Informal Meeting Common Council V Informal Meeting of the Common Council 2005 South Bend Common Council The Saturday,April 9,2005 Informal Meeting of the South Bend Common Council was called to order by Council President Charlotte D. Pfeifer at 10:02 a.m. in the Council Chambers. Persons in attendance included Council Members Pfeifer, Kelly, Puzzello, Varner, Kuspa, Rouse, Kirsits and White; Mayor Stephen J. Luecke, St. Joseph County Commissioner for the 1st District Cynthia A. Bodle, St. Joseph County Commissioner for the 2nd District Steve Ross, State Representative Ryan Dvorak, Director of Public Works Gary Gilot, St. Joseph County Council President Rafael Morton, County Council Member W. Randall Przbysz, Executive Director of the Department of Community and Economic Development Sharon Kendall, Cathy Cooper,Patrick McMahon, Gordon D. Wishon, Louis N. Galup, Don Napoli, Doug Hunt, Frank Perri, Judi Jankowski and Kathleen Cekanski-Farrand,Council Attorney. Council President Pfeifer noted that this informal meeting has been called to hear about major initiatives so that there would be better communications. She then reviewed the attached agenda. Council President Pfeifer then invited representatives from Metro Net to make a presentation, and reminded those present that only elected officials and department heads would have the opportunity to ask questions. St.Joseph Valley Metro Net: Patrick McMahon addressed the Council and noted that he was the Executive Director of Project Future and a member of the Board of Directors of St. Joseph Valley Metro Net. He noted that other board members were present, namely: Gordon D. Wishon who is the Chairperson, Louis N. Galup,M. Don Napoli, Sharon Kendall, Gary Gilot and Cathy Cooper. Mr. McMahon then summarized the handouts. He noted that Plymouth has no long haul carriers, and that most companies will charge what the customer will bear. Metro Net is initially interest in providing services within a 25-26 mile area. This not-for-profit company would "build a roadway network" which would be below ground and secure. They would put in fiber in order to create this"roadway". There would be reciprocal agreements with the City of South Bend. 36 fibers are being provided. Council President Pfeifer then requested Judi Jankowski of SBC to make any comments she would like. Ms. Jankowski stated that SBC strongly believes in partnerships. In 2004, approximately $15 million in capital investments were made in the South Bend area. $1.4 million was paid in taxes, and they employ approximately 400 individuals. She noted that on September 13, 2004, Cleo Washington presented information on this topic; and that he also had a Michiana Point of View published in the South Bend Tribune on January 12, 2005. Overall, SBC believes it is fundamentally unfair to use tax payer dollars to subsidize such an operation. She noted that this was stressed at the January 26, 2005 Information and Technology Committee meeting. Apri19,2005 Informal Meeting of the South Bend Common Council -page I- Ms. Jankowski stated that information posted on Project Future's website referenced nine (9) companies which provide a full-range of services. SBC has not increased their service rates since 1986, and they are comparable to others. There has been a loss of 500,000 tele-com jobs in the last three (3) years in the United States. Municipal tele-com efforts have resulting in a "field of dreams" idea. Currently there are 14 states which limit or prohibit municipal action in this area. HB 1148 is now dead, but called for a cost/benefit analysis and public hearings before public monies could be spent. She concluded her remarks by stating that SBC looks forward to working with the public officials and if there are questions, they can be referred to SBC's technical staff members. Council Member Kelly inquired what expenses are there to the City of South Bend. Mayor Luecke stated that two (2) years ago, there was $600,000 in the capital budget to extend the conduit system. Metro Net would extend the fibers at no cost to the city. The city is not entering the tele-corn system. Metro Net will pull dark fiber thru the conduit, and no additional monies are being asked for from the city. In response to another question from Council Member Kelly, Gary Gilot noted that interconnections at intersections are being used. Metro Net provides more modern technology and would be better for traffic programs. A wide-area network to the government buildings will take place. Data analysis, GIS, secured cameras, Amber Alerts, and other uses are anticipated with MACOG in using this fiber. Council Member White inquired if this was the best use of taxpayer dollars. Mayor Luecke stated that the city would be investing regardless of Metro Net. Other communities such as Marion and Seymour are owning and operating such services, but South Bend is making our conduits available for the fiber. Gordon Wishon, Chairperson of the Board for MetroNet and Chief Information Officer at the University of Notre Dame stated that MetroNet is assuming the risk of offering the infrastructure. In 2001, he became the CIO at the University of Notre Dame, moving here from Atlanta, Georgia. South Bend does not have the amount of demand as that of larger cities. Notre Dame has a growing research program. UND had 20 megabites in 2001. Commissioner Steve Ross noted that this is a highly technical area which has many challenges. He has some real concerns and questions because the technology is constantly changing. He noted that many communities are going wireless and do not need fiber options that are being talked about today. He added that a provider is still necessary; and voiced concern that he is not sure that this is beneficial as a long-term solution. He cautioned that such fiber may be obsolete in five (5)years. Dr. Varner stated that the $600,000 capital appropriation was requested by the Administration so that the loop could be completed. He voiced concern that there is no city council member on Metro Net's Board of Directors. He stated that a council member should not be an optional member since Council oversight is needed. In that way there would be access to minutes, expenditures,etc. Dr. Varner also suggested that the city should be receiving a percentage of the revenues on an annual basis for the use of the conduit by MetroNet. In that way, he believes it April 9,2005 Informal Meeting of the South Bend Common Council -page 2- r r would be more fair and it would not be subsidized as much. Dr. Varner suggested that this be a part of the agreement since there has been a substantial cost to South Bend. He further noted that it this does not work out, six (6) not-for-profits, plus Bosch will have benefited. He also believes that the comments of Commissioner Ross should be carefully considered. He further suggested that when decisions are being made that the Councils should be involved. Mayor Luecke stated that there is significant value in the fibers. Having the city receive a percentage would result in higher rates. The Mayor stated that the benefit to the community is the link would may eventually create jobs and investments. At this point Council President Pfeifer recessed the Informal Council meeting for five (5) minutes. Portage Prairie: At approximately 11:15 a.m., Council President Pfeifer reconvened the Informal Council meeting, and called upon representatives of the Portage Prairie proposal for the Adams Road-German Township area to make a presentation. She reminded the people in attendance that only questions from elected officials and department heads would be permitted. Doug Hunt of Holladay Properties with offices at 227 South Main in downtown South Bend introduced Frank Perri and then addressed the Council. He noted that John Phair is out of town. Mr. Hunt stated that Holladay Properties began their operations in Washington, D.C. in 1952. Today their headquarters is in downtown South Bend where they have been since 1978, with offices also located in Indianapolis, Nashville, Florida, Louisville and northwest Indiana. Holladay Properties is the largest non-governmental, non-hospital corporation located in the city. They have invested over$11 million in the South Bend area and $45 million in the county; and pay over$1.8 million per year in taxes. Mr. Hunt stated that their land development projects in Indianapolis is the Ameriplex Center which created 4,000 jobs and was an investment of $350 million. Ameriplex at the Port in Portage, Indiana is also another of their major land development projects. They also are involved in the Purdue Research Park in Merrillville,Indiana. Mr. Hunt and Mr. Perri then presented a power point presentation on the proposed Portage Prairie Project. He reviewed Holladay's goals and issues, noting that they were approached by Waggoner heirs approximately 1 1/2 years ago for the 500 acre site. He then reviewed their design philosophy of bring alot of people together in nine (9) work sessions in October and November of 2004. He then reviewed the "context area"bounded by Bertrand, Portage, Quince and Edison. He stated that it is an excellent regional location with linkage to 1-94. He then reviewed: the character and history of the area; factors driving the plan; residential trends; major employee locations; and utility proximities. He stated that the project should not compete with the downtown assets, but be complimentary. He stated that the project should have a "wow" factor. Transportation planning must also be coordinated and many acres will be dedicated to research networking. The master plan also includes an"opportunity site". Mr. Hunt showed proposed site maps of proposed uses and summarized "smart growth" features from the website sss.smartgrowth.org. He stated that the tax and economic impact would be: April 9,2005 Informal Meeting of the South Bend Common Council -page 3- $551,452 million total investment 6,059 jobs would be created $6.8 million in real estate taxes would be generated $ 2 million in COIT taxes would be generated $650,000 hotel/motel taxes would be generated Phase 1 of the project is seeking annexation and rezoning. A transportation analysis and interchange discussion will soon be underway. He sees Portage Prairie as a strategic asset of planned growth over a 10-15 year period. The power point ended with a slide stating "Portage Prairie-A New Community-An Old Tradition". In response to questions from Dr. Varner, Mr. Hunt stated that the light industrial use would go regardless of the interchange and that retail is also needed. There would be development without an interchange but in that case there would be more impact on the local roads. Mr. Hunt also stated that there would be $550 million in investment approximately. Development agreement would address various types of facilities and time lines so that the project will "bootstrap itself as much as possible". Dr. Varner noted that there are many definitions of smart growth which think tanks have developed and he appreciated the site of the one described. Council Member Kelly inquired into the odds of getting the interchange. It was noted that MACOG computer models will help determine whether it is necessary and appropriate. INDOT owns the Indiana Toll Road and they will look at how it may be impacted. County Council Member W. Randall Przbysz noted that the MACOG study will not begin for a few months, and voiced concern why they annexation and rezoning would be voted upon prior to that study being completed. Mr. Hunt stated that the decision of the city involves economic development strategy; and the city should look at whether this area has a role in the city's future. State Representative Ryan Dvorak stated that he lives in the 1st District and believes the question to the city should be how is the proposed development going to impact the city; does the city want to stimulate development in the city or property near the state line. He noted that he has pending legislation in the Indiana General Assembly which would give property owners in the affected township a better voice. Mr. Hunt stated that the city should realize opportunities citing Mishawaka's grade separation on Main Street as going forward because of tax monies. Dr. Varner requested from Mr. Hunt information on the Indianapolis project which they began in 1995 with regard to space available, monies generated, investments and also the same April 9,2005 Informal Meeting of the South Bend Common Council -page 4- information from the Portage, Indiana project which is five years old. Mr. Hunt stated he would provide that information at a later date. Council President Pfeifer inquired how the project would not compete with the downtown. Mr. Hunt stated that the proposed uses which are light industrial would not compete. The retail would be targeted to the immediate neighborhood. Bass Pro was given as an example of destination retail. Mr. Perri stated that developers"set the table for what is most viable and attractive". They have a 30-year history of developing office space in the downtown. Council Member White inquired about what financial support from the city would be needed and what impact would it have on other areas of the community. Mayor Luecke stated that memorandums of understanding are developed which address TIF monies which would support the development. Council Member Rouse thanked Representative Dvorak for his comments and noted that the same scenario of anti-annexation was voiced when University Mall was being considered. He stated that the City of South Bend missed that opportunity. In response to a question from Council Member Kirsits,Mr. Hunt noted that there would be a 1st phase and a 2nd phase with the 2nd phase including the opportunity location. County Council Member Przbysz noted that the University of Notre Dame's proposal on paper was very different after they spoke with residents and did traffic studies. He suggested putting off the development for a year. Mr. Hunt stated that the fundamental decision is does this proposal fit in the city's long term strategic growth plan. Council Member Kuspa noted the traffic situation on Grape Road, and stated that he believes that if this development goes forward that the traffic will not be as bad as that on Grape. Council President Pfeifer thanked everyone for coming to this informational Saturday Informal Meeting of the Council. She then adjourned the meeting at 12:32 p.m. Respectfully submitted, Charlotte D. Pfeifer, Council resident South Bend Common Council KCF:kmf Attachments April 9,2005 Informal Meeting of the South Bend.Common Council -page 5-