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HomeMy WebLinkAbout03-02-84 Council Meeting Minutes4 f REGULAR MEETING MARCH 2, 1984 Be it remembered that the Common Council of the City of South Bend met in the Council Chambers of the County -City Building on Friday, March 2, at 12:30 p.m. The meeting was called to order and the Pledge to the Flag was given. ROLL CALL Present: Council Members Serge, Braboy, Puzzello, Taylor, Zakrzewski, Crone, and Beck Absent: Council Members Paszek and Voorde Council Member Taylor made a motion to permit filing of Bill No. 20 -84, seconded by Council member Zakrzewski. The motion carried on a roll call vote of seven ayes. BILLS, FIRST READING BILL NO. 20 -84 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $850,000 ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH ORDINANCE NO. 7308 -84 BEND, INDIANA, FOR THE PURPOSE OF ACQUIRING LAND, IMPROVEMENTS THEREON AND RELATED PROPERTY COMPRISING ECONOMIC DEVELOPMENT FACILITIES LOCATED IN THE CITY FOR LEASE AND SALE TO ALLIED PRODUCTS CORPORATION; AUTHORIZING EXECUTION OF A LEASE AGREEMENT; PROVIDING FOR THE PLEDGE OF REVENUES AND RENTAL INCOME FOR THE PAYMENT OF THE BONDS; AUTHORIZING MORTGAGE AND INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF SUCH REVENUES; AND AUTHORIZING THE TERMS AND SALE OF SAID BONDS. This bill had first reading. Council Member Crone made a motion to suspend the rules to have second reading and public hearing on this bill, seconded by Council Member Beck. The motion carried on a roll call vote of seven ayes. This being the time heretofore set for public hearing on this bill, proponents and opponents were given an opportunity to be heard. Kenneth Fedder, attorney for the Economic Development Commission, made the presentation for the bill. He indicated that Allied was requesting a bond issue for $6,500,000 to purchase a portion of the leased complex, to renovate and purchase additional equipment. Council Member Serge made a motion to pass the bill, seconded by Council Member Taylor. The bill passed by a roll call vote of seven ayes. There being no further business to come before the Council unfinished or new, Council Member Taylor made a motion to adjourn, seconded by Council Member Crone. The motion carried and the meeting was adjourned at 12:46 p.m. ATTEST: City Clerk APPROVED: i ent REGULAR MEETING MARCH 12, 1984 Be it remembered that the Common Council of the City of South Bend met in the Council Chambers of the County -City Building on Monday, March 12, at 7:00 p.m. The meeting was called to order and the Pledge to the Flag was given. ROLL CALL Present: Council Members Serge, Braboy, Puzzello, Taylor, Zakrzewski, Crone, Paszak, Voorde and Beck Absent: None REPORT FROM THE SUB - COMMITTEE ON MINUTES To the Common Council of the City of South Bend: Your sub - committee on the inspection and supervision of the minutes would res- pectfully report that it has inspected the minutes of the February 27, 1984, meeting of the Council and found them correct. The sub - committee, therefore, recommends that the same be approved. /s/ Beverlie J. Beck /s/ Ann Puzzello /s Thomas Zakrzewski Council Member Serge made a motion that the minutes of the February 27, meeting of the Council be accepted and placed on file, seconded by Council Member Puzzello. The motion carried. REPORTS Council Member Voorde indicated that the Zoning and Vacation Committee had met on Bill No. 19 -84, and on a vote of four to one had decided to continue public hearing on his bill until the meeting of March 26. Council Member Braboy indicated the Human Resources and Economic Development Committe had met on Resolutions 9A B, C & D and recommended them favorable. Council Member Tayor made a motion to resolve into the Committee of the Whole, seconded by Council Member Crone. The motion carried. COMMITTEE OF THE WHOLE Be it remembered that the Common Council of the City of South Bend met in the Committee of the Whole on March 12, at 7:04 p.m., with nine members present. Chairman Serge presiding. BILL NO. 19 -84 A BILL AMENDING ORDINANCE NO. 4990 -68, AS AMENDED, COMMONLY KNOWN AS THE ZONING ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA (STATE RD. 23) This being the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Larry Magliozzi, of Area Plan, indicated this bill was initiated in Area Plan. He indicated this bill is intended to re- establish the zoning which was previously established by Ordinance No. 6803 -80. He indicated that because of litigation which has occurred concerning the annexation and whether the area is in the City or County, the passage of the pending bill is required to permit existing commercial property owners in the area to sell their property or expand their property for commercial uses. He indicated this bill is not directed to resolving the longstanding issue of the proposed hotel development. Don Blackman, attorney representing the proposed hotel, indicated he was pleased with the delay on this public hearing. Terry Glenn, 1903 E. Edison, spoke against the building of the new hotel. Council Member Taylor made a motion to continue public hearing on this bill until March 26, seconded by Council Member Beck. The motion carried. There being no further business to come before the Committee of the Whole, Council Member Beck made a motion to rise and report to the Council, seconded by Council Member Taylor. The motion carried. ATTEST: City Clerk REGULAR MEETING RECONVENED ATTEST: Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County -City Building at 7:12 p.m. Council President Beck presiding and nine members present. REGULAR MEETING is RESOLUTIONS RESOLUTION NO. 1121 -84 MARCH 12, 1984 A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A MEMORANDUM OF INTENT BETWEEN THE CITY OF SOUTH BEND, INDIANA AND ONE MICHIANA SQUARE, AN INDIANA LIMITED PARTNERSHIP, PROVIDING FOR THE ISSUANCE BY SAID CITY OF ITS ECONOMIC DEVELOPMENT REVENUE BONDS PURSUANT TO THE PROVISIONS OF INDIANA CODE, TITLE 36, ARTICLE 7, CHAPTER 12, AS AMENDED. The area still has insufficient employment opportunities and insufficient diversification of industries, which conditions are harmful to the economic stability and general welfare of the area and, if not remedied, will be detrimental to the development of such area. The City of South Bend, Indiana (the "City ") is authorized under the provisions of Indiana Code, Title 36, Article 71 Chapter 12, as amended (the "Act "), to finance the acquisition, construction and equipping of economic development facilities for the users thereof and to provide for the issuance of revenue bonds in conjunction therewith. The City, in order to implement the public purposes enumerated in the act and in furtherance thereof to induce One Michiana Square, an Indiana limited partnership (the "Borrower "), to acquire land within the limits of the City and construct and equip an office building thereon (hereinafter collectively called the "Project "), had indicated its intent to issue its revenue bonds under and pursuant to the provisions of the act and to apply the proceeds therefrom to the payment of a portion of the costs of the Project. The Borrower, in reliance upon the intent of the City to finance a portion of the Project through the issuance of revenue bonds under the provisions of the Act, has determined to proceed with the Project. It is now deemed advisable to authorize the execution and delivery by the City of a Memorandum of Intent expressing formally and in writing the understanding heretofore informally agreed upon by the City and the Borrower. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the CIty ofSouth Bend, Indiana as follows: Section 1. The Mayor is hereby authorized and directed to execute a Memorandum of Intent by and btween the City and the Borrower and the City Clerk is hereby authorized and directed to affix the seal of the City thereto and to attest the same; and said Mayor and City Clerk are hereby authorized and directed to cause said Memorandum of Intent to be delivered to, accepted, and approved and incorporated by reference and made a part of this authorizing resolution, to be in substantially the form attached hereto. Section 2. All resolutions and order, or parts thereof, in conflict with the provisions of this resolution are, to the extent of such conflict, hereby repealed and this resolution shall be in immediate effect from and after its adoption. This inducement resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. /s/ Beverlie J. Beck Member of the Common Council A public hearing was held on the resolution at this time. Kenneth Fedder, attorney for the Economic Development Commission, indicated the purpose of this inducement is to construct an office facility in two phases, to be located at the southeast corner of Michigan and Wayne. He indicated that temporary construction workers, a building engineer, maintenance personnel and potential out -of -city new tenants will create new and needed employment opportunities. Kevin Butler, attorney representing One Michigana Square, spoke in favor of this resolution. Council Member Serge made a motion to adopt this resolution, seconded by Council Member Taylor. The motion carried. RESOLUTION NO. 1122 -84 AN AMENDED INDUCEMENT RSOLUTION OF THE CITY OF SOUTH BEND, INDIANA ARELATING TO METAL RESOURCES CORPORATION. REGULAR MEETING MARCH 12, 1984 WHEREAS, the Common Council of the City of South Bend, Indiana adopted on the 13th day of October, 1980 an Inducement Resolution attached hereto, made a part hereof and marked for indentification as Exhibit A; and WHEREAS, said Exhibit A was adopted pursuant to the application of Bremen Iron & Metal Co., Inc., which has since changed its name by amendment of its Articles of Incorporation desires to make certain changes to its Application for Industrial Development Bonds to be issued by the City of South Bend, Indiana ;. and WHEREAS, the economic welfare of the City would be benefited by the acquisition and building of economic development facilities pursuant to the provisions of Indiana Code 18- 6 -4 -.5 (the "Act "); and WHEREAS, it is apparent that Metal Resources Corporation will increase job opportunities and commercial diversification in South Bend, Indiana, resulting in a benefit to the welfare of the public in the City of South Bend, Indiana, and St. Jospeh County, Indiana; and WHEREAS, to induce Metal Resources Corporation to develop this project and become the principal user thereof, the South Bend Common Council desires to adopt this resolution. NOW, THEFORE, the Common Council of the City of South Bend, Indiana resolves as follows: 1. Approval is hereby given to the amended application of Metal Resources Corporation relating to the acquisition of such economic development facilities and the building of other such facilities wherein Industrial Revenue Bonds would be issued by the City of South Bend, Indiana for an amount not exceeding Three Million Nine Hundred Thousand Dollars ($3,900,000.00), payable with interest thereon at a rate of seventy -five percent (75%) of the prime rate over a period not to exceed fifteen (15) years from and after the date said economic development facilities are placed in use by the users thereof. 2. In order to encourage, induce and solicit such application by Metal Resources Corporation for such Industrial Revenue Bond issue relating to its acquisition of such Economic Development Facilities and the building of certain facilities, the South Bend Common Council shall proceed to cooperate with and take such action as may be necessary in the drafting of documents or the performance of such other acts as will facilitate the issuance of such Industrial Revenue Bonds by the City of South Bend, Indiana, to provide funds to be used toward the payment of the costs of acquisition and building for an economic development facility. 3. Any costs or expenses incurred in connection with said Metal Resources Corporation project shall be included in the project costs and reimbursed from the proceeds of the Industrial Revenue Bonds to be issued with respect thereto. 4. That the liability and obligation of the Common Council of the City of South Bend and the City of South Bend, Indiana, shall be solely to good faith efforts to consummate such proceedings and issue such bonds, and neither the South Bend Common Council nor the City of South Bend, Indiana, or its officers or agents, shall incur any liability whatsoever for any reason the proposed issuance of such bonds is not consummated. 5. Metal Resources Corporation has proceeded with the acquisition of certain of the economic development facilities and may continue to proceed with such acquisition and the building of such facilities in reliance upon this resolution. 6. This resolution shall be in full force and effect from and after its passage by the Common Council of the City of South Bend and approvall by the Mayor. /s/ Beverlie J. Beck Member of the Common Council A public hearing was held on the resolution at this time. Jack Dunfee, attorney for the petitioner, indicated that on October 13 an inducement resolution was passed for Bremen Iron and Metal Company, Inc., since then their new legal corporate name is Metal Resources Corporation. He indicated that it was necessary to pass this resolution to change the name of the corporation. Council Member Taylor made a motion adopt this resolution, seconded by Council Member Zakrzewski. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 1124 -84 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY COMMONLY KNOWN AS N.W. CORNER OF COLFAX AND MICHIGAN STS., SOUTH BEND, INDIANA, AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF REAL PROPERTY TAX ABATEMENT. WHEREAS, a petition for real property tax abatement consideration has been filed with the Common Council of the City of South Bend, requesting that the area commonly known as N.W. corner of Colfax and Michigan Sts., South Bend, Indiana, and which is more particularly described by a line drawn as follows: 1,-1; 11 REGULAR MEETING MARCH 12, 1984 Lot numbered six (6) and a lot or parcel of land 24 feet in width, north and south, taken off of and from the entire length of the South side of lot numbered five (5), all as shown on the Original Plat of the City of South Bend, St. Joseph County, Indiana. be designated as an Economic Reitalization Area under the provisions of Indiana Code 6- 1.1- 12.1 -1, et seq.; and WHEREAS, the Redevelopment Commission has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6 -1.1- 12.1 -1, et seq., and has further prepared maps and plats showing the boundaries and such other information as required by law of the area in question; and WHEREAS, the Human Resources and Economic Development Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. That the Common Council hereby accepts the report and recommendation of the Human Resources and Economic Development Committee that the area herein described be designated an Economic Revitalization Area an hereby adopts a resolution designating this area as an Economic Redvitalization Area for purposes of real property tax abatement. SECTION II. That this designation shall be limited to five (5) calendar years from the date of the adoption of this resolution by the Common Council. SECTION III. That the Common Council directs the City Clerk to cause notice of the adoption of this resolution to be published, said publication providing notice of the public hearing before the Common Council on said declaration. SECTION V. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. /s/ Beverlie J.Beck Member of the Common Council Council Member Voorde made a motion to accept the substitute resolution on file with the City Clerk, seconded by Council Member Taylor. The motion carried. A public hearing was held on the resolution at this time. Bruce Bancroft, attorney for the petitioner, indicated this abatement was to renovate the Palais Royale Building. He indicated this will create twenty -three new jobs when finished and maintain fifteen jobs currently in the building. Council Member Serge made a motion to adopt this resolution, seconded by Council Member Taylor. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 1124 -84 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY COMMONLY KNOWN AS 205 WEST JEFFERSON STREET, SOUTH BEND, INDIANA AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF PERSONAL PROPERTY TAX ABATEMENT. WHEREAS, a petition for real property tax abatement consideration has been filed with the Common Council of the City of South Bend, requesting that the area commonly known as 205 W. Jefferson, South Bend, Indiana, and which is more particularly described by a line drawn as follows: The south one -third of Lot Numbered Two Hundred Fifty -one (251) and all of Lot Numbered Two Hundred Fifty -two (252) together with the East one -half of the vacated alley lying West of the and adjoining the South one -third of said Lot Numbered Two Hundred Fifty -one (251) and all of Lot Numbered Two Hundred Fifty - two (252) as shown on the Original Plat of the Town, now City of Suth Bend. be designated as an Economic Revitalization Area under the provisions of Indiana Code 6- 1.1- 12.1 -1, et seq.; and WHEREAS, the Redevelopment Commission has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6- 1.1- 12.1 -1, et seq., and has further prepared maps and plats showing the boundaries and such other information as required by law of the area in question; and WHEREAS, the Human Resources and Economic Development Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: -- REGULAR. MEETING MARCH 12_, 1984 - SECTION I. That the Common Council hereby accepts the report and recommendation of the Human Resources and Economic Development Committee that the area herein described be designated an Economic Revitalization Area and hereby adopts a resolution designating this area as an Economic Redvitalization Area for purposes of real property tax abatement. SECTION II. That this designation shall be limited to five (5) calendar years from the date of the adoption of this resolution by the Common Council. SECTION III.. That the Common Council directs the City Clerk to cause notice of the adoption of this resolution to be published, said publication providing notice of the public hearing before the Common Council on said declaration. SECTION V. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. /s/ Beverlie J.Beck Member of the Common Council Council Member Taylor made a motion to accept the substitute resolution on file with the City Clerk, seconded by Council Member Voorde. The motion carried. Bruce Bancroft, attorney for the petitioner, indicated this tax abatement was being requested for Jefferson Boulevard Partnership, and would be used to renovate the building. Council Member Serge made a motion to adopt this resolution, seconded by Council Member Taylor. The resolution was adopted by a roll call vote of nine ayes. ORDINANCE NO. 7109 -84 AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING THE RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE 227 MAIN STREET ASSOCIATES PROJECT. This bill had first reading. Council Member Serge made a motion to suspend the rules and have public hearing and second reading on the bill, seconded by Council Member Taylor. The motion carried on a roll call vote of nine ayes. This being the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Kevin Butler, attorney for the petitioner, made the presentation for the bill. He indicated this proposed bond issue would be used for the purchase of land, renovation, restoration and equipping of improvements located at 223 -227 South Main. Council Member Serge made a motion to pass this bill, seconded by Council Member Taylor. The bill passed by a roll call vote of nine ayes. BILL NO. 22 -84 A BILL AMENDING ORDINANCE NO. 4990 -68, AS AMENDED, COMMONLY KNOWN AS THE ZONING ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA (CHAPTER 21, MUNICIPAL CODE) (CENTRAL HIGH SCHOOL.) This bill had first reading. Council Member Zakrzewski made a motion to refer this bill to Area Plan, seconded by Council Member Serge. The motion carried. BILL NO. 23-84 A BILL AMENDING ORDINANCE NO. 4990 -68, AS AMENDED, COMMONLY KNOWN AS THE ZONING ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA (CHAPTER 21, MUNICIPAL CODE) (3921 W. WESTERN.) This bill had first reading. Council Member Zakrzewski made a motion to refer this bill to Area Plan, seconded by Council Member Taylor. The motion carried. BILL NO. 24 -84 A BILL AMENDING ORDINANCE NO. 7225 -83, COMMONLY KNOWN AS THE SALARY ORDINANCE FOR 1984, TO ADD MAXIMUM SALARIES FOR CERTAIN OFFICERS AND EMPLOYEES. This bill had first reading. Council Member Serge made a motion to set this bill for public hearing and second reading March 26, and refer it to the Personnel and Finance Cmmittee, seconded by Council Member Beck. The motion carried. BILL NO. 25 -84 A BILL APPROPRIATING $43,800.00 FROM THE FEDERAL ASSISTANCE GRANT FUND, COMMONLY REFERRED TO AS THE GENERAL REVENUE SHARING TRUST FUND FOR THE 1984 SUMMER CLEAN -UP PROGRAM. This bill had first reading. Council Member Puzzello made a motion to set this bill for public hearing and second reading March 26, and refer it to the Personnel and Finance Committee, seconded by Council Member Taylor. The motion carried. BILL NO. 26 -84 A BILL APPROPRIATING $75,000.00 FROM THE FEDERAL ASSISTANCE GRANT FUND COMMONLY REFERRED TO AS THE GENERAL REVENUE SHARING TRUST FUND FOR THE EAST SECTOR POLICE SUBSTATION. This bill had first reading. Council Member Taylor made a motion to set this bill for public hearing and second reading Marcg 26, and refer it to the Public Safty Committee, seconded by Council Member Crone. The motion carried. BILL NO. 27 -84 A BILL APPROPRIATING FUNDS RECEIVED FROM THE UNITED STATES DEPARTMENT OF INTERIOR $1,060,000.00 AND FUNDS RECEIVED FROM THE UNITED STATES SMALL BUSINESS ADMINISTRATION $34,697.00 TO THE PARK DISTRICT BOND CONSTRUCTION FUND 50 IN THE AMOUNT OF $1,094,697. REGULAR MEETING MARCH 12, 1984 This bill had first reading. Council Member Beck made a motion to set this bill for public hearing and second reading March 26, and refer it to the Parks Committee, seconded by Council Member Taylor. The motion carried. BILL NO. 28 -84 A BILL APPROPRIATING $50,000.00 FROM THE FEDERAL ASSISTANCE GRANT FUND COMMONLY REFERRED TO AS THE GENERAL REVENUE SHARING TRUST FUND FOR STUDEBAKER MUSEUM, INC. This bill had first reading. Council Member Crone made a motion to set this bill for public hearing and second reading March 26, and refer it to the Personnel and Finance Committee, seconded by Council Member Voorde. The motion carried. BILL NO. 29 -84 A BILL APPROPRIATING $60,000.00 FROM THE FEDERAL ASSISTANCE GRANT FUND, COMMONLY REFERRED TO AS THE GENERAL REVENUE SHARING TRUST FUND FOR VEHICLES FOR THE DEPARTMENT OF CODE ENFORCEMENT AND THE BUREAU OF TRAFFFIC AND LIGHTING. This bill had first reading. Council Member Serge made a motion to set this bill for public hearing and second reading March 26, and refer it to the Personnel and Finance Committee, seconded by Council Member Taylor. The motion carried. There being no further business to come before the Council, unfinished or new, Council Member Voorde made a motion to adjourn, seconded by Councilmember Crone. The motion carried and the meeting was adjourned at 7:58 p.m. ATTEST: APPROVED: City Clerk --JL IOL-P resident