Loading...
HomeMy WebLinkAbout08-05-85 Council Meeting MinutesREGULAR MEETING AUGUST 5, 1985 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, August 5, 1985, 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, Paszek, Voorde and Beck Absent: None REPORT FROM THE SUB - COMMITTEE ON MINUTES To the Common Council of the City of South Bend: The sub - committee has inspected the minutes of the July 22, 1985, meeting of the Council and found them correct. Therefore, we recommend that the same be approved. Beverlie J. Beck Ann Puzzello Thomas Zakrzewski Council Member Serge made a motion that the minutes of the July 22, meeting of the Council be accepted and placed on file, seconded by Council Member Zakrzewski. The motion carried. SPECIAL BUSINESS RESOLUTION NO. 1317 -85 A RESOLUTION OF THE COMMON COUNCIL FOR THE CITY OF SOUTH BEND, INDIANA, RECOGNIZING THE MONTH OF AUGUST AS POLISH AMERICAN HERITAGE MONTH. WHEREAS, the Common Council of the City of South Bend, Indiana, recognizes with pride that the month of August as has been nationally designated as Polish American Heritage Month; and WHEREAS, the Common Council notes that the City of South Bend has especially been blessed with the thousands of persons who have strong Polish American roots; and WHEREAS, not only are Polish Americans known for their had work, their deep religious faith, their many good foods, but in particular, they are known for their deep and abiding concern and caring for their fellow man; and WHEREAS, some of the many fine organizations in our community which keep the Polish American bond so strong include: the Polish Women's Alliance, District 3; Polish Falcons, American District 6; Polish National Alliance No. 83; the South Bend Chapter of the Polish American Congress; the Chopin Fine Arts Club; the Kaminski Foundation; and the many organizations working with several churches of our City and in particular the parishes of Holy Cross, St. Adalbert's, St. Casimir's, St. Hedwig's, and St. Stanislaus. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. On behalf of all of the citizens of South Bend, Indiana, the Common Council recognizes with pride the month of August as Polish American Heritage Month. SECTION II. The Council recognizes the thousands of Polish American residents of our community who have enriched our City by their many contributions. SECTION III. The City Council proudly salutes all Polish Americans and says "NA ZDROWIA "! SECTION IV. This Resolution shall be in full force and effect from and after its adoption of the Common Council and approval by the Mayor. /s/ Joseph T. Serge /s/ Ann B. Puzzello Member of the Common Council Member of the Common Council /s/ Eugenia Braboy Robert G. Taylor Member of the Common Council Member of the Common Council /s/ Beverlie J. Beck /s/ Thomas Zakrzewski Member of the Common Council Member of the Common Council /s/ Beverly D. Crone Member of the Common Council /s/ Al B. Paszek Member of the Common Council REGULAR MEETING AUGUST 51 1985 /s/ John Voorde Member of the Common Council A public hearing was held on the resolution at this time. Council Member Beck read the resolution and presented it to Wanda Nowak, who thanked the Council for the resolution. Council Member Serge made a motion to adopt the resolution, seconded by Council Member Taylor. The resolution was adopted by a roll call vote of nine ayes. Anna Pappas, 512 W. Madison, spoke to the Council about the American Plasma Systems encroachment on residential property. Council Member Zakrzewski made a motion to suspend the rules and have first reading, public hearing and second reading on Bill No. 93 -85, seconded by Council Member Taylor. The motion carried on a roll call vote of nine ayes. ORDINANCE NO. 7500-85 AN ORDINANCE AMENDING CHAPTER TWO, ARTICLE XIII OF THE SOUTH BEND MUNICIPAL CODE BY ADDING AN ADDITIONAL ECONOMIC DEVELOPMENT TARGET AREA THERETO, COMMONLY KNOWN AS 2920 W. SAMPLE STREET. This bill had first reading. This being the time heretofore set for public hearing on the above 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 it was necessary for a facility to be located in a target area, in order that the Commission may give approval for a bond issue. He indicated that the Commission has approved this location as a target area, however, it also must be approved by the Common Council. Council Member Taylor made a motion to pass this bill, seconded by Council Member Zakrewski. The bill passed by a roll call vote of nine ayes. Council President Beck announced that John Stancati had been appointed to the TRANSPO Board of Directors. Council President Beck announced that Ed Myers had been appointed to the Mayor's Traffic Commission. REPORTS Council Member Braboy indicated that the Human Resources Committee had met on Bill No. 91 -85 and recommended it favorable. Council Member Voorde indicated that the Zoning and Vacation Committee had met on Bill No. 61 -85, and gave no recommendation. Council Member Puzzello indicated that the Personnel and Finance Committee had met on Bill No. 90 and 92 -85 and recommend them favorable. Council Member Taylor indicated that the Public Safety Committee had met on the animal control ordinance (Bill 56 -85) and public hearing will be August 19. Council Member Zakrzewski made a motion to resolve into the Committee of the Whole, seconded by Council Member Taylor. 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 August 5, at 7:28 p.m., with nine members present. Chairman Serge presiding. ORDINANCE NO. 7900 -85 AN ORDINANCE AMENDING CHAPTER TWO, ARTICLE XIII OF THE SOUTH BEND MUNICIPAL CODE BY ADDING AN ADDITIONAL ECONOMIC DEVELOPMENT TARGET AREA THERETO, COMMONLY KNOWN AS 2920 W. SAMPLE STREET. This bill had second reading. Council Member Taylor made a motion to pass this bill, seconded by Council Member Serge. The bill passed by a roll call vote of nine ayes. BILL NO. 89 -85 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985 (GEM PARTNERSHIP, PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION DOLLARS ($1,000,000.00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. This being the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Council Member Voorde made a motion to accept the substitute bill on file with the City Clerk, seconded by Council Member Zakrzewski. The motion carried. Thomas Brunner, attorney, made the presentation for the bill. He indicated the substitute bill should be amended on the third page to read 20 years callable at the option on the bondholder at the end of year 10 at a rate based on the prime rate of American Fletcher National Bank, Indianapolis, Indiana, which rate shall not exceed ... Council Member Taylor made a motion to amend this bill, seconded by Council Member Zakrzewski. The motion carried. Mr. Brunner indicated GEM Partnership wishes to acquire rehabilitate the REGULAR. MEETING___ AUGUST 5,l1985 I! y Sears warehouse building for use as a distribution and operations center by General Microcomputer, Inc. Council Member Zakrzewski made a motion to recommend this bill to the Council favorable, as amended, seconded by Council Member Taylor. The motion carried. BILL NO. 61 -85 A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 727 CORBY BLVD., IN THE CITY OF SOUTH BEND, INDIANA. 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, from Area Plan, gave the staff report on this rezoning, which was unfavorable. Council Member Zakrzewski made a motion to continue this bill until August 19, due to the petitioner not being present, seconded by Council Member Taylor. The motion carried. Because of the fact their were remonstrators in the audience public hearing was held on the bill. Marguerite Taylor, 714 E. Corby, read the following letter: This letter is in protest to the proposed ordinance and site development plan of Thomas M. Barcome to zone from "A" Residential, "A" Height and Area to "B" Residential, "A" Height and Area, property located at 727 Corby Blvd., City of South Bend. As you are aware, the triangle is heavily populated with student housing, rental property and bars. As a property owner in this area, I feel any additional building of this nature would have no benefits to the neighborhood as a whole. Any structure built for multi - living quarters would not be conducive with the stability of our single family -owner occupied neighborhood. Furthermore, rezoning of this area would undoubtedly encourage future building of such structures. We, the residents of this area want to retain the historical and close -knit unity our neighborhood has always possessed. Thank you for your support. We are certain you will do all you can to help abort this seemingly "individual quest for progress" on behalf of the betterment and growth of our city's fine neighborhoods. Mel Baird, 722 Francis, Kevin against this r, Council Member recommend this Puzzello. The BILL NO. 90 -85 Corby; Arthur Quigley, 1019 N. Francis; Renalda Robinson, 737 N. McCall, 817 N. St. Peter, and Judge Montgomery, 124 Napoleon, spoke azoning. Council Member Zakrzewski rescinded his motion to continue, Taylor rescinded his second. Council Member Taylor made a motion to bill to the Council unfavorable, seconded by Council Member motion carried. A BILL APPROPRIATING $231,112.00 FROM THE MORRIS CIVIC AUDITORIUM IMPROVEMENT FUND TO FACILITATE EXPANSION AND UPGRADING OF SERVICES AT THE MORRIS CIVIC AUDITORIUM. This being the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Thomas Brubaker, Century Center Board of Managers, made the presentation for the bill. He indicated this appropriation would be used to provide convenient access to restrooms and certain seating areas for the handicapped, to provide better box office services, and more space for increased activities at the Morris Civic Auditorium. He indicated the funding would come from the improvement fund. Council Member Taylor made a motion to recommend this bill to the Council favorable, seconded by Council Member Zakrzewski. The motion carried. BILL NO. 91 -85 A BILL TRANSFERRING $27,993.00 AMONG VARIOUS ACCOUNTS WITHIN THE DIVISION OF COMMUNITY DEVELOPMENT. This being the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Colleen Rosenfeld, Director of Community Development, made the presentation for the bill. Council Member Taylor made a motion to accept the substitute bill on file with the City Clerk, seconded by Council Member Zakrzewski. The motion carried. She indicated this bill would transfer Jobs Bill funds from completed activities to two activities to be completed. She indicated that all projects funded through Jobs Bill monies will be completed on July 31, with the exception of handicapped access curb cuts. Council Member Taylor made a motion to recommend this bill to the Council favorable, as amended, seconded by Council Member Braboy. The motion carried. BILL NO. 92 -85 A BILL APPROPRIATING $1,600,241.00 FROM THE FEDERAL REVENUE SHARING TRUST FUND FOR THE 1985 POLICE AND FIRE PENSION COSTS OF THE CITY OF SOUTH BEND, INDIANA. This being the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Carol Sanders, Deputy Controller, made the presentation for the bill. She indicated the use of Revenue Sharing funds was anticipated in the 1985 budget to pay these pension payments. Council Member Beck made a motion to recommend this bill to the Council favorable, seconded by Council Member Taylor. 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. REGULAR MEETING ATTEST: City Clerk ATTEST: Chairman AUGUST 5, 1985 REGULAR MEETING RECONVENED 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 8:00 p.m. Council President Beck presiding and nine members present. BILLS, SECOND READING ORDINANCE NO. 75'01 -85 AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985 (GEM PARTNERSHIP, PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION DOLLARS ($1,000,000.00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. This bill had second reading. Council Member Taylor made a motion to amend this bill, as amended in the Committee of the Whole, seconded by Council Member Zakrzewski. The motion carried. Council Member Zakrzewski made a motion to pass the bill, as amended, seconded by Council Member Taylor. The bill passed by a roll call vote of nine ayes. BILL NO. 61 -85 A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 727 CORBY BLVD., IN THE CITY OF SOUTH BEND, INDIANA. Council Member Puzzello made a motion to defeat this bill, seconded by Council Member Taylor. The bill was defeated by a roll call vote of nine ayes. ORDINANCE NO. 7502 -85 AN ORDINANCE APPROPRIATING $231,112.00 FROM THE MORRIS CIVIC AUDITORIUM IMPROVEMENT FUND TO FACILITATE EXPANSION AND UPGRADING OF SERVICES AT THE MORRIS CIVIC AUDITORIUM. This bill had second reading. Council Member Serge made a motion to pass this bill, seconded by Council Member Zakrzewski. The bill passed by a roll call vote of nine ayes. ORDINANCE NO. 703 -85 AN ORDINANCE TRANSFERRING $27,993.00 AMONG VARIOUS ACCOUNTS WITHIN THE DIVISION OF COMMUNITY DEVELOPMENT. This bill had second reading. Council Member Puzzello made a motion to amend this bill, as amended, in the Committee of the Whole, seconded by Council Member Taylor. The motion carried. Council Member Puzzello made a motion to pass the bill, as amended, seconded by Council Member Zakrzewski. The bill passed by a roll call vote of nine ayes. ORDINANCE NO. If,'04 -85 AN ORDINANCE APPROPRIATING $1,600,241.00 FROM THE FEDERAL REVENUE SHARING TRUST FUND FOR THE 1985 POLICE AND FIRE PENSION COSTS OF THE CITY OF SOUTH BEND, INDIANA. This bill had second reading. Council Member Serge made a motion to pass this bill, seconded by Council Member Zakrzewski. The bill passed by a roll call vote of nine ayes. RESOLUTIONS RESOLUTION NO. 1318 -85 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, COMMONLY KNOWN AS 3300 W. SAMPLE TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF REAL PROPERTY TAX ABATEMENT. WHEREAS, the Common Council of the City of South Bend has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as 3300 W. Sample and more particularly described by a line drawn as follows: Parcel I: A tract of land in the Northeast Quarter of the Northeast Quarter of Section 16, Township 37 North, Range 2 East, bounded by a line running as follows, viz: Beginning at a point 338 feet East of the Northwest Corner of the Northeast Quarter of the Northeast quarter of said Section 16; thence running East along the North line of said Section 16 a distance of 657.7 feet; thence South 900.6 feet; thence West 657.1 feet; thence North 900.6 feet to the place of beginning. REGULAR MEETING AUGUST 51 1985 Subject also to a right of way of the New Jersey, Indiana & Illinois Railroad Company, as conveyed to it by Warranty Deed dated February 11, 1930, recorded in Deed Record 227, page 293 in the County Recorder's Office of St. Joseph County. Parcel II: A certain tract of land in Belleville Industrial District, in Section 16, Township 37 North, Range 2 East, described as follows: Beginning at the intersection of the center line of the New Jersey, Indiana & Illinois Railroad Spur and the North line of proposed Industrial Avenue, said intersecting point being 900.6 feet South and 1329.87 feet East of the Northwest corner of the Northeast Quarter of Section 16, Township 37 North, Range 2 East; thence East along the North line proposed Industrial Avenue if extended East 664.5 feet; thence South parallel with the West line of the Northeast Quarter of said Section 16, 311.5 feet to the center line of said New Jersey, Indiana & Illinois Railroad Company's spur line running in a southwesterly and northwesterly direction; thence Southwesterly and Northwesterly along the centerline of said spur line 1098.5 feet to the place of beginning, excepting therefrom all railroad right -of -ways within said tract; and also excepting therefrom a tract of land described as beginning at a point 9 feet East of and 900.6 feet South of the Northwest corner of the Northeast Quarter of the Northeast Quarter of Section 16, Township and Range aforesaid; Thence running east parallel with and 90.6 feet South of the North line of said Section 16 a distance of 329 feet; thence South parallel with and 338 feet East of the West line of the Northeast Quarter of the Northeast Quarter of said Section 16, a distance of 38 feet; thence West parallel with and 938.6 feet South of the North line of said Section 16 a distance 329 feet; thence North parallel with and 9 feet East of the West line of the Northeast Quarter of the Northeast Quarter of said Section 16 a distance of 38 feet to the place of beginning. as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6- 1.1- 12.1 -2 -5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. 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 confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for real property tax abatement only and is limited to five (5) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. 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 A public hearing was held on the resolution at this time. Frank Perri, a representative of The Holladay Corporation, indicated this property is in a condition of extreme disrepair, and the cost to rehabilitate will be substantial. He indicated when fully leased, the facility is expected to provide approximately 200 permanent, full -time jobs. Council Member Zakrzewski made a motion to adopt this resolution, seconded by Council Member Puzzello. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 1319 -85 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, DECLARING ITS INTENTION TO APPROPRIATE FUNDS FOR THE IMPLEMENTATION OF THE INDUSTRIAL PRETREATMENT PROGRAM. WHEREAS, the City of South Bend, acting through its Board of Wastewater Commissioner, has developed an Industrial Pretreatment Program in accordance with Public Law 95 -217, the Clean Water Act of 1977 and 40 CFR 403, the general pretreatment regulations; and WHEREAS, Federal and State laws mandate the implementation of said Industrial Pretreatment Program; and WHEREAS, the Board of Wastewater Commissioners of the City of South Bend had adopted Resolution No. 1 -1984, resolving that the Industrial Pretreatment Program be implemented, a copy of which is attached hereto and made a part hereof; and WHEREAS, funds for the operation of the Wastewater Treatment Plant, including the implementation of the Industrial Pretreatment Program have previously been appropriated for the 1985 budget year. { E REGULAR MEETING AUGUST 5, 1985 NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: Section I. The Common Council of the City of South Bend will appropriate sufficient funds in future budget years to operate the City's Industrial Pretreatment Program. Section II. This resolution shall be in full force and effect upon passage 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. David Wells, Director of Environ Services, indicated the City was mandated by Federal and State law to implement this program. He indicated a program was developed and submitted to the United States Environmental Protection Agency for approval. He indicated that on July 22 the City received notice from the EPA that the program is acceptable and will be approved as soon as the City provides a resolution which states that sufficient funds will be available to operate the program and adopts the new sewer use ordinance which is a part of the program. He indicated the adoption of this resolution and the passage of the proposed sewer use ordinance are major steps in resolving the legal difficulties with the Environmental Protection Agency. Council Member Zakrzewski made a motion to adopt this resolution, seconded by Council Member Puzzello. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 1320 -85 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND RELATING TO AN ASSIGNMENT AND ASSUMPTION OF CITY OF SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS. WHEREAS, the South Bend Economic Development Commission investigated, studied, surveyed and reported to the Mayor and the Common Council of the City of South Bend, Indiana that a need exists in the Community for additional job opportunities and business and commercial diversification within and near South Bend, Indiana; and WHEREAS, Twenty Three North Partnership, an Indiana partnership ( "Seller ") is the owner of a tract of land with improvements thereon ( "Property "); and WHEREAS, on July 25, 1984, Seller financed the acquisition of the Property by borrowing the proceeds of Industrial Development Revenue Bonds (the "Bonds ") issued by the City of South Bend, Indiana (the "Issuer ") in the amount of $1,050,000.00; and WHEREAS, Hugh M. Silverman and LaVon D. Silberman ( "Purchaser ") have agreed to acquire the Property from Seller, to continue to operate the facility as an economic development facility subject to the approval of the appropriate official action by the Issuer and the Issuer's Economic Development Commission, and to assume Seller's obligations with respect to the Bonds; and WHEREAS, to improve and promote job opportunities and commercial diversification within and near South Bend, Indiana, said assignment should be approved; and WHEREAS, the South Bend Economic Development Commission approved the assignment by resolution dated July 19, 1985; and WHEREAS, to induce Purchaser and Seller to consummate the assignment and to evidence its consent thereto, the South Bend Common Council desires to adopt this resolution; and WHEREAS, it is apparent that the assignment will increase job opportunities and business diversification in and near South Bend, Indiana, resulting in a benefit to i the welfare of the public in South Bend, Indiana. NOW, THEREFORE, BE IT RESOLVED, that the South Bend Common Council approves the assignment from Seller to Purchaser and Purchaser's assumption of all Seller's obligations with respect to the Bonds; and BE IT FURTHER RESOLVED, that the South Bend Common and the City of South Bend, Indiana, their officers or agents, shall not incur any liability if for any reason the proposed assignment of such Bonds is not consummated. /s/ Ann Puzzello Member of the Common Council A public hearing was held on the resolution at this indicated this resolution related to the assignment Partnership 1984 industrial revenue bond issue. He Development Commission passed a similar resolution. motion to adopt this resolution, seconded by Counci was adopted by a roll call vote of nine ayes. BILLS. FIRST READING time. Mark Krcmaric, attorney, of Twenty Three North indicated that the Economic Council Member Serge made a 1 Member Taylor. The resolution REGULAR MEETING _ AUGUS.T.S, 1985- BILL NO. 94 -85 A BILL APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF SEVERAL DEPARTMENTS OF THE CITY GOVERNMENT OF THE CITY OF SOUTH BEND, INDIANA, FOR THE FISCAL YEAR BEGINNING JANUARY 1, 1986, AND ENDING DECEMBER 31, 1986, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS AND FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. This bill had first reading. Council Member Taylor made a motion to set this bill for public hearing August 19, seconded by Council Member Zakrzewski. The motion carried. BILL NO. 95 -85 A BILL LEVYING TAXES AND FIXING THE RATE OF TAXATION FOR THE PURPOSE OF RAISING REVENUE TO MEET THE NECESSARY EXPENSES FOR THE FISCAL YEAR ENDING DECEMBER 31, 1986. This bill had first reading. Council Member Serge made a motion to set this bill for public hearing August 19, seconded by Council Member Taylor. The motion carried. BILL NO. 96 -85 A BILL AMENDING CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE BY ADDING AN ADDITIONAL ECONOMIC DEVELOPMENT TARGET AREA TO ARTICLE 13, 328 N. MICHIGAN. This bill had first reading. Council for second reading and public hearing Committee, seconded by Council Member UNFINISHED BUSINESS { Council President Beck asked Carolyn parking garage for city and /or county PRIVILEGE OF THE FLOOR Member Puzzello made a motion to set this bill August 19 and refer it to the Human Resources Taylor. The motion carried. Pfotenhauer to look into reduced rates in the employees. Philip Kline, A &D Discount Drugs, reading the following into the record: Mayor Roger Parent South Bend Common Council County -City Building South Bend, IN 46601 Dear Mayor Parent and Council Members: As a business manager in downtown South Bend I deplore the policy that allows for the city of subsidize a retail giant over an extended length of time as an enticement to keep them in the downtown business district. Specifically, the property at 128 S. Michigan is currently owned by city redevelopment and they are leasing the property to a large drugstore chain at a grossly substandard rate. This situation has existed since 1979 when redevelopment assumed control of the property, and the financial favors the city has given them amounts to about 24- 40,000 yearly. The leased property has an annual market rental value of $6 -10 per sq. foot, and has been and is being leased for roughly $1 -2 per sq. foot of retail space, not including warehouse space in the basement and an office situated overhead. I have no problem competing with other stores for the consumers' dollar, and we have been successful doing so since our existance. But, who would want to do business in a city which stacks the deck by subsidizing a multi - million dollar drug chain at the expense of local merchants engaged in the same business, selling the same merchandise, as well as the taxpayers. This financial gratitude creates potential for pricing advantages of 305% for select departments of merchandise. During initial inquiries to the monthly lease amount was initia However, investigation into the And, conversation with a member that they had "worked something property and existing leases. redevelopment department it was implied that the low ted by the previous land owners with the drug chain. history of the property proved this to be false. of the drug chain's real estate department revealed out with the city" after the city had purchased the With a recently negotiated lease the city has left the door open for the situation to persist during the next 5 years. How can this be justified ?? And if it is allowed to persist, is it because the present administration is content to allow the retail base of the city to continue its erosion? It behooves the mayor and city council to determine a solution that would bring the city appropriate revenue from the property whether it be rent, taxes or contributions. Sincerely, Philip R. Kline Douglas Kline, 63551 Miami, Power Discount Drugs, spoke regarding the problem with Osco Drugs. REGULAR MEETING There being Council Mem: Zakrzewski. ATTEST: City Clerk AUGUST 5, 1985 no further business to come before the Council, unfinished or new, ber Taylor made a motion to adjourn, seconded by Council Member The motion carried and the meeting was adjourned at 8:55 p.m. APPROVED: Pr e t