HomeMy WebLinkAbout10-15-03 Informal Meeting r 4 �
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The October 15, 2003 informal meeting of the South Bend Common Council was called to order
by Council President Karen L. White at 4:00 p.m. in the Council Informal Meeting Room.
Persons in attendance included Council Members Kelly, Varner, White and Kuspa;Mayor Stephen
Luecke, Studebaker National Museum. Inc. Director Rebecca Bonham, Director of Public Works
Gary Gilot, Police Chief Thomas Fautz, Don Inks, Bill Schalliol, Jacquelyn Rucker, John G.
Farrell,Mark McDonnell,and Kathleen Cekanski-Farrand, Council Attorney.
Council President White welcomed everyone to the meeting and noted that this was an opportunity
to continue discussions with the City Administration and Department Heads, after a break in such
meetings during the budget review. She noted that such meetings enhance communication as the
Council and Administration work to make the City of South Bend a world-class 21st century city.
Council President White then introduced Jacquelyn Rucker, Director of Community Relations for
the University of Notre Dame. Ms. Rucker noted that the University's Community Relations
office has been moved to downtown South Bend. She noted that they have been located in the
Robertson Apartment Building for approximately three(3)weeks. She added that the University's
School of Design, the Urban Design Studio Classes, the tax assistance programs for seniors, and
the Art Department's "Cross Roads Gathering" are just some of the interactive community
programs underway with South Bend. Ms. Rucker stated that the Community Likelations Office
would have a grand opening on October 30th and would be inviting the Council.
Council Member Kelly thanked Ms. Rucker for coming and stated that he thinks that this concept is
a great opportunity for building an even stronger relationship with the University of Notre Dame.
Mayor Luecke stated that he and his staff are very excited about having Notre Dame's Community
Relations Office in downtown South Bend,and believes it is a great move for all.
Ms. Rucker than provided her business cards to the Council (copy attached).
Mayor Luecke then began discussions on the Studebaker National Museum. The Mayor noted that
former Mayor Keman committed $5 million to this project to match $5 million which would be
raised by private donations. This concept was reaffirmed when he became Mayor. Mayor Luecke
stated that he believes that the City of South Bend has an obligation to provide a home for the
Studebaker collection. The museum has raised$1.5 million. Mayor Luecke sought the support of
the Council. He further noted that they are generating excitement in the community with the re-
defining of the Board and focusing on business leaders. He noted that they have broadened the
focus of the museum by including the stories of industrial growth in the city.
Mark McDonnell, President of the Board of Trustees for the Studebaker National Museum then
addressed the Council. Copies of"The Studebaker National Museum Long Range Business Plan
2003-2009, October 1, 2003" (copy attached) were then provided to the Council. He noted that
the business plan was finalized last week. The proposed move involves a multiple parties, namely
the City of South Bend, St. Joseph County, South Bend Heritage, and the Studebaker National
Museum, Inc. A multi-party agreement is currently being worked on by the various attorneys
representing each entity. Design RFP's were made public in September resulting in twenty-one
(21) responses.
In response to a question from Council President White, Mr. McDonnel stated that the city's
commitment would be five million dollars with the private donations of $1.5 million. The project
Informal ivieeting of the South Bend Common Council
October 15, 2UO3
Page 2
has been capped at$6.5 million dollars for the building.
Mr. ivicDonneii noted that there have been significant changes which include: 1. Change of
Director; 2. Creating a community-based board, which currently has three (3) board positions
open; and 3. Proposing creative ways to raise revenues.
Mr. John G. Farrell, Treasurer of the Board of Trustees for the Studebaker National Museum then
provided the Council Members with a 3-page handout entitled "Studebaker National Museum
inventory of Vehicles Owned by the City of South Bend"dated October 14, 2003 (copy attached).
He noted that revenue is key. He then briefly highlighted Attachment A in the business plan noting
that it sets forth "best case", "probable case" and "worst case" scenarios. He reviewed the
"Operating Revenues" projected under each of these categories and noted that in 2003 the
following operating revenues would be needed:
Best Probable Worst
2UO3 Operating Revenues: $620,203 $620,203 $620,203
2003 Operating Expenses $616,958 $616,958 $620,203
Mr. Farrell noted that the Board has discussed such items as an adopt-a-car program as one way to
reduce reliance on City funding. Mr. Farrell noted that the City's projected funding would be
$172,000 in 2003, 2004, and 2005; and$189,000 in 2006, 2007,2008 and 2009.
Their goal is to raise $3.0 million to address possible shortfalls and to provide an endowment for
educational programs and exhibitry.
Becky Bonham noted that their budgets have been balanced in 2001-2003.
Dr. Varner inquired about the situation if the endowment amount is not reached, in that event
where would the funding come from for exhibitry? He noted that during the budget hearings, Mr.
Hedman stated that the Century Center would not have a balanced budget and that their revenues
are short for next year. He asked what would make the Studebaker Museum project different from
the financial situation which is being projected for the Century Center.
Ms. Bonham stated that they have dynamic exhibits which were show cased at the recent Hall of
Champions Dinner.
Dr. Varner voiced concern over the number of special events which the community could support.
He suspected that the City of South Bend was near a saturation level.
Mr. Gilot noted that the museum would also be pursuing grants. Mr McDonnell stated that the
museum has a track record and feels good about the museum's position.
Ms. Bonham stated that she feels better about this project than any project in which she has been
involved. She highlighted that there are examples of individuals who are recommitting in light of
the changes which have taken place. She noted that the South Bend Tribune has recommitted to its
financial donation for the project,with several others reading like a"who's who list".
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October 15, 20113
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Dr. Varner stated that he would be much more comfortable if the position was "show me the
money" instead, before moving forward. He noted that he has been a long-standing supporter of
the Palais,and antique cars,and that they should have pursued getting the S. Ray Miller collection.
Mr. Gilot noted that it may be easier to raise monies if the museum is accredited. Mr. Gilot then
provided a one-page handout entitled "Update on Studebaker National Museum Request for
Proposals"for design firms (copy attached), He noted that:
Release REP took place on September 26, 2003
Proposals are due October 27, 2003 at 10:00 a.m.
Proposal review meeting will be on October 29,2003 at 9:30 a.m.
fi Notification of the successful firm on October 31,2003
Mr. Gilot stated that the Mayor is looking for the City to go forward.
Council Member Kelly noted that there are no guarantees, however the City needs to look at
whether the risk is worth it. He believes it is, since we have an "outstanding collection". He
further noted that he does not believe that the city should sit on its hands and do nothing.
The Council Attorney suggested that a written time table be provided to the Council when legal
action would be required to take place, in light of the multiple party involvement. She further
suggested that the role of the Common Council be made known, with regard to the agreements
which are currently being negotiated; as well as getting draft copies to the Council of any such
agreements which would need Council input or approval. Mr. Gilot noted that he would confer
with Cheryl Greene of the Legal Department on each of these items.
Dr. Varner noted that the Council has a fiduciary responsibility to the tax payers of the city, noting
that currently the taxpayers are saddled with $800,000 to $1 million each year for the College
Football Hall of Fame. He noted that he has nothing against museums, however the lack of
reporting from the NFF is not responsible.
Council President White thanked everyone for the input and information on this proposed project.
She suggested that any further questions which the Council may have be transmitted to the Council
Attorney so that she could then contact Mr. Gilot.
Council President White then called for an update on the Erskine Hills Shopping District project.
Bill Schalliol of Community & Economic Development gave an update. He provided a 3-page
handout on the south side retail corridor development (copy attached). They will know by the end
of next week when the demolition of the old L.S. Ayres building take place, with it scheduled to
begin yet this year. Mr. Schalliol noted that the mall had 590,000 square feet and that the Erskine
Hills Shopping District project will have a total of 510,000 square feet when you include the
current free-standing restaurants now in existence. There will be 480,000-485,000 square feet of
new construction. He further noted that 8-10 of the existing store fronts in the mall will relocate to
the Village area. The City has started a master plan for the area which will involve a lot of pre-
planning. He noted that the southwest corner of Michigan and Ireland contains 55 acres which is
currently under discussion.
Council President White inquired about the K-Mart property, noting that they are leasing at the
Informal Meeting of the South Bend Common Council
October 15, 2003
Page 4
southside location. Mr. Schalliol stated that nothing is currently being considered, but that could
change. He noted that Target is planning its grand opening for July 25, 2004.
In response to a question from Dr. Varner, Mr. Schalliol confirmed that there is interest in
developing the corner of the Erskine Golf Course (northwest corner of Ireland and Miami). Mr.
Schalliol noted that South Gateway has been extremely helpful and enthusiastic and have generated
a lot of goodwill.
Council President White then called for an update on the"MetroNet Concept". Mr. Gilot provided
a one-page handout entitled "Update on MetroNet Concept for Fiber Service off ramps on the
Indiana Crossroads of Information Superhighway" (copy attached). He noted that we have more
fiber service capability than Indianapolis. They are looking at developing a demonstration loop
from Notre Dame to the Central Business District to Union Station. A second possible loop would
be located in the Blackthorn and airport area. He noted that major data users are clamoring for
such opportunities. Bosch noted in their background research that the best connectivity was in
South Bend or Toledo. MetroNet Loop involves 145 fibers which would attract and keep jobs and
provide leverage for Project Future and the Chamber for other opportunities for intelligent
information links. TIF monies would be utilized in such endeavors.
Council President White thanked everyone for the sharing of information. She then adjourned the
Informal meeting of the South Bend Common Council at 5:18 p.m.
Respectfully submitted,
Karen L. White, Council President
South Bend Common Council
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