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HomeMy WebLinkAbout11-22-93 Human Resources & Economic Development Committee Report HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE To the Common Council of the City of South Bend: The November 22, 1993 , meeting of the Human Resources and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly, at 4: 05 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members: Luecke, Washington, Kelly, Puzzello, Slavinskas, Coleman, Duda and Ladewski; Ann Kolata, Mikki Dobski, Mel Reed, Randolph Rompola, Don Porter, Kevin Horton, Dick Nussbaum, Beth Leonard, Marcia Townsend and Kathleen Cekanski-Farrand. The first item on the agenda was to review Bill No. 97-93 which would approve a lease for certain public improvements between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. Mr. Kevin Horton, with the assistance of charts, made the presentation. He noted that the overall bond would be $22 , 156, 480. 00. He noted that currently $496, 000. 00 from the City is used for the Century Center. Of this amount, $150, 000. 00 is from hotel/motel taxes and $50, 000. 00 from the South Bend School Corporation. Both of these amounts are on an annual basis. The net amount from CCIF Funds is $296, 000. 00. The lease would be extended from the year 2004 to the year 2014 . The replacement value of the Century Center is $30, 000, 000. 00. The remaining amount on the 1977 bond for the Century Center is $3 , 238, 538 . 00. The City has always committed to spend at least 700, 000. 00 to construct the tunnel and the landscaping relative to the Football Hall of Fame project. Mr. Horton noted that by combining the Century Center issue and the Football Hall. of Fame issue that it would minimize underwriter fees, attorney fees and related costs. He also noted that with a bigger issue there usually is a better rate. In response to.- a question raised by Council Member Puzzello regarding the role of the Common Council, Mr. Rompola of the Baker, Daniels Law Firm noted that Council approval is necessary of the lease which would be done on November 29th by ordinance. The Redevelopment Authority would not go forward until the Common Council then takes action in Human Resources and Economic Development November 22 , 1993 Page 2 February of next year. The projected date of the next Council involvement would be February 14 , 1994 . A special meeting of the Redevelopment Authority would then take place on February 17, 1994 . Mr. Horton noted that the bonds could be separated in February of 1994 if there was a consensus that there was not enough commitment with regard to the Football Hall of Fame. In response to a question raised by Council Member Washington, it was noted that this assumes that $14, 000, 000. 00 would be raised and that no other TIF bonds in the downtown or the East Race area could be pursued. Council Member Ladewski voiced concern that the escalator had been removed from the Century Center project. Council Member Duda shared this concern. In response to a question raised by Council President Luecke, it was noted that the annual ongoing financial commitments from the South Bend School Corporation and the Hotel/Motel Tax Boards are currently in the process of discussion. Council Member Slavinskas stated that he believes that the hotel/motel tax should be used more effectively as a tool to raise revenue. He noted that locally there is only a five percent (5%) rate where most communities charge between eight (8) and nine (9) percent. He stated that he believes it makes no sense not to pursue this more effectively. Mr. Horton stated that there are mixed reports with regard to the effect of raising the hotel/motel tax. Council Member Ladewski noted that he raised the same issue with the Mayor approximately one (1) year ago. He was advised that it would hurt business. Following further discussion, Council President Luecke made a motion seconded by Council Member Slavinskas that Bill No. 97-93 be recommended favorably to Council. The motion passed with Council Member Washington abstaining. Mikki Dobski noted that she would provide copies of all charts utilized in Mr. Horton's presentation as handouts to the Common Council tomorrow. Council Member Slavinskas noted that he is not convinced about the process, however, when directing that question to Mr. Nussbaum he stated that he is absolutely sure that the process is correct and that the Common Council is needed both at the lease stage and in the next stage set for Human Resources and Economic Development November 22, 1993 Page 3 February of 1994 . The next item on the agenda was to review Bill No. 101-93 which would , appropriate $3 , 428, 000. 00 of Community Development Block Grant funds. Beth Leonard made the presentation. She reviewed the 1994 CDBG program year final funding levels (copy attached) . She noted that it is essentially the same funding as the current calendar year. Following further discussion, Council Member Slavinskas made a motion seconded by Council Member Washington that Bill No. 101-93 be recommended favorably to Council . The motion passed. The Committee then reviewed Bill No. 102-93 which would appropriate $346, 858. 00 from various accounts within the UDAG fund. Beth Leonard made the presentation. She stated that this Bill basically "trades dollars" regarding the BDC loan portfolio buyout and the Redevelopment Administration. Following further discussion, Council Member Slavinskas made a motion seconded by Council Member Duda that Bill No. 102- 93 be recommended favorably to Council . The motion passed. The Committee then reviewed Bill No. 103-93 which would appropriate $1, 050, 000. 00 of 108 loan funds. Beth Leonard made the presentation. She stated that the bond would be repaid within either a six (6) or ten (10) year period. Central High School is earmarked for $550, 000. 00, Landlord Loan Program 'for $300, 000.00 and the Low Income Rehab Program for $200, 000. 00. Interest rates are conservatively being projected at eight percent (8%) . Following further discussion, Council Member Slavinskas made a motion seconded by Council Member Duda that Bill No. 103- 93 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 104-93 which would appropriate $366, 237 . 00 within fund 212 for the purpose of defraying administrative costs of the Department of Community and Economic Development. Beth Leonard made the presentation. Council Member Slavinskas noted that among these funds are tax abatement fees in the amount of $9, 450. 00. He was assured that none of these amounts would cover the costs of advertisement which are collected by the City Attorney's Office. In response to a question raised by Council Member. Ladewski, it was noted that the State Theater got a release from the State last Friday and will proceed ahead so that they can be open before the end of the year. Human Resources and Economic Development November 22, 1993 Page 4 Following further discussion, Council Member Duda made a motion seconded by Council Member Slavinskas that Bill No. 104-93 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 105-93 which would transfer $10,500. 00 among various accounts within the Department of Community and Economic Development. Beth Leonard made the presentation. She stated that with the program the down payments allow persons to purchase new homes, which is a slightly different concept from the current program. This involves reducing the home ownership incentive and increasing the' R.E.W.A.R. D. account. Following further discussion, Council Member Slavinskas made a motion seconded by Council Member Duda that Bill No. 105- 93 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 106-93 which would transfer $45, 000. 00 within the UDAG Fund. Beth Leonard made the presentation. She noted that professional services from the Sample-Ewing Development Area would be reduced so that the Neighborhood Youth Development Initiative and the Neighborhood Planning Forum could be increased in funding. Following further discussion, Council Member Slavinskas made a motion seconded by Council Member Duda that Bill No. 106- 93 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, the meeting was adjourned at 5: 05 p.m. Respectfully submitted, Council Member Roland Kelly Chairperson, Human Resources and Economic Development attachments