HomeMy WebLinkAbout09-13-82 Human Resources & Economic Development Tointr ttrt Erpuri
c�IO nIt Qlnm ttrin OIOiuwil of or OJ1t1H of'nuo Wni1: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT
COMMITTEE
The September 13, 1982 Human Resources and Economic Development
Committee meeting was called to order at 4: 30 p .m. by its chairman Councilman
Voorde in the Council Meeting Rooms .
Person in attendance included: Councilmen McGann, Szymkowiak,
Zielinski, Crone,Beck, Harris , Voorde, Taylor and Serge; Ann Kolata, Jon
Hunt, Jane Luchowski, Lois Johnson, John Mulkey, Harold Hewitt, John Tryther,
and Kathleen Cekanski-Farrand and Eugenia Schwartz.
The purpose of the meeting was to continue the review of Bill No.
88-82 which would appropriate $500, 000 from the Community. Development
Block Grant Fund: to the Economic Development Capital Fund for assisting
the retention of Robertsons .
Councilman Voorde called upon Jon Hunt to give a further update.
Mr. Hunt stated that a South Bend development corporation alone could not
save Robertsons . That even if the appropriated- ordinance is passed tonight,
that the ultimate decision rests with Wickes and the private investor groups .
The City Administration is trying to retain a viable department store in the
downtown and was concerned over retaining employees .
Councilman Voorde outlined the major concerns he had regarding such
an appropriation: that the money would be used only in South Bend, that the
money would be used for the specific purpose of assisting Robertsons , and
that present jobs of Robertson' s employees would be retained.
Eugenia Schwartz then reviewed a draft of Bill 88-82 (copy attached) .
She noted that in Section II the April 1, 1983 date was included because this
was the date of the annual corporate meeting and this was the date that the
1983 CD Funding would begin.
Councilman Crone suggested changing the title to reflect that the
monies would be used solely for the Robertson' s project . The suggestion was
accepted.
Councilman McGann questioned the inclusion of the terms "equity
investment" in the Statement of Purpose and Intent. Councilman McGann made
a motion seconded by Councilman Crone to strike these words from the Section.
The Motion passed 3-1 with Councilman Taylor in the minority.
Eugenia Schwartz then reviewed Section III of the draft which dealt
with the South Bend Development Corporation "considering" the retention of
jobs . Councilmen Szymkowiak, McGann, Voorde and Crone voiced strong
opposition to this section as presently drafted. Councilman Crone stated
that either "we should nail it dawn specifically or forget it" .
Councilman Serge noted that if there are to many regulations that
the City may lose not only Robertsons but Penneys .
Jon Hunt was called upon to explain part of the investor plan. He
noted that one option was to loan the money at a 6%interest rate over a
seven year payback period with an amorization of 10-15 years . He also noted
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Human Resources and Economic Development Committee
that the CD monies were originally going to be used to pay back the housing
108 loan which the City is paying back at a 16+% interest rate.
He also noted that the collateral on the loan would be the inventory.
Councilman McGann noted that he had received several phone calls
from Robertson' s employees and that one person who has worked at Robertsons
for 26 years is making $4.15 per hour.
Mr. Mulkey stated that the majority of the Robertson' s personnel
were making $4.08 per hour all of which 'have ten years or more experience.
The proposed .,.amendments prepared by the Council Attorney were then
passed out to the Committee and discussed. (copy attached)
Mr. Mulkey voiced further concern regarding the by-laws and the
possibility that the individual departments would be leased. He stressed the
need to put rules up front when public funds were to be involved.
Councilman Taylor stated that if any strings are attached at all that
the present investor groups would back out and we would lose Robertsons .
The president of the local union representing present Robertson
employees stated that a resolution had already been passed by the employees
authorizing the union to sit down and negotiate concessions if necessary.
Councilman. Voorde then read a variation of Section III drafted by
the Council Attorney and himself.
There being no concensus among the Committee, the meeting was
adjourned at 5:40 p.m. upon a motion made by Councilman Crone and seconded
by Councilman Taylor. The meeting was adjourned with no recommendations from
the Committee on. Bill No. 88-82.
Respectfully Submitted,
John Voorde, Chairman