HomeMy WebLinkAboutAppropriating $45,000.00 to Provide Funding Facility for Displaying the Studebaker Automoblie Collection ORDINANCE 7468-85
Passed by the Common Council of the City of South Bend, Indiana-
May 28, 85
19
Attest: t l
City Clerk
IRENE K. GAMMON
Attest: President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana _
May 29 , ig 85
City Clerk
IRENE K. GAMMON
Approved and sired by me t li 0--`'" z9 LT-
Li
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74, Mayor
ORDINANCE NO. 7440 ' 5
AN ORDINANCE APPROPRIATING $45, 000. 00 FROM THE
GENERAL FUND OF THE CITY OF SOUTH BEND, INDIANA
TO PROVIDE FUNDING FOR A FACILITY FOR DISPLAYING
THE STUDEBAKER AUTOMOBILE COLLECTION
STATEMENT OF PURPOSE AND INTENT:
The City of South Bend, Indiana owns and maintains the
Studebaker Collection and must provide suitable facilities for storing and
displaying of these vehicles . The City' s current lease of facilities for
that purpose is terminated as of May 31, 1985. Through a land contract
purchase of these facilities the City can both provide facilities for
display and maintain other options as the permanent home of the
collection. Funding is now needed to complete that land contract
purchase.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA:
SECTION I. The sum of $45, 000 . 00 is hereby appropriated for
the year of 1985 from the General Fund of the City of South Bend,
Indiana. This appropriation is to be administered by the Department of
Administration and Finance.
ACCOUNT AMOUNT
412 . 0 $ 45, 000 . 00
SECTION II. This Ordinance shall be in full force and effect
from and after its passage by the Common Council and approval by the
Mayor.
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Michael L. Vance
Director, Administration and 219/284-9742
Finance
May 8, 1985
Mrs . Beverlie Beck, President
South Bend Common Council
4th Floor County-City Bldg.
South Bend, IN 46601
Dear President Beck:
The enclosed ordinance appropriating $45, 000 from the General Fund of
the City of South Bend is being filed for first reading of the May
13 , 1985 Council meeting. The ordinance would appropriate monies
from the General Fund for the payment of land contract obligations in
relation to the Freeman-Spicer property for storage and display of
the Studebaker Collection and other artifacts belonging to Studebaker
Museum.
The $45, 000 to be appropriated will fund payments necessary for the
balance of 1985 . The City has chosen to use a ten (10) year land
contract with a release clause as the financing instrument since this
will allow the City to review other facility options while providing
suitable space for the collection. Under this purchase arrangement,
the City can be released from its purchase obligation after the first
three (3) years of the contract.
The details of the proposed purchase are as follows:
Purchase Price - $480, 000. Term of purchase
10 yrs with payments made monthly. Proposed
interest rate is 8% .
The Studebaker Museum is currently occupying the Freeman-Spicer
Building for storage, display and renovation of the collection at a
cost of $5000 per month plus property taxes amounting to $890. 00 per
month. Under the proposed land contract purchase, we would be paying
an additional $823 . 00 per month. ,
Mrs. Beverlie Beck, President
South Bend Common Council
April 30, 1985
Page -2-
I want to emphasize that in using this option, the City has
maintained its ability to review other properties such as the State
Theatre for the permanent home of the collection.
If you have any questions, please feel free to contact my office.
Sincerely,
Michael L. Vance
City Controller
PURCHASE PROPOSAL FACT SHEET
Freeman-Spicer Property
Purchase Price - $480, 000 . 00
(original price was $550, 000 . 00)
Financing Instrument: Land Contract Purchase
Interest Rate: 8% APR
Term of Agreement: 10 YRS with monthly payments
ADVANTAGES:
1. City maintains ability to display collection.
2. City keeps options open as to location of
permanent home.
3. City can be released from its contractual
obligation after first three (3) years
4. City' s additional cash outlay (minimal) approxi-
mately - $850. 00/month.
5/8/85
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Zu the Tom= Mount-It of the (Mg of'uu#Ii Wm):
Your Committee of the Whole
to whom was referred
BILL NO.
51-85 A BILL APPROPRIATING $45,000. 00 FROM THE GENERAL FUND OF THE
CITY OF SOUTH BEND, INDIANA TO PROVIDE FUNDING FOR A
FACILITY FOR DISPLAYING THE STUDEBAKER COLLECTION.
Respectfully report that they have examined the matter and that in their opinion
This bill should be recommended to the Council favorable
Chairman
Joseph T. Serge
FREE PRESS Rigerp, PUBLISHING CO.