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HomeMy WebLinkAbout01-24-83 Council Meeting Minutes4,x.4 REGULAR MEETING JANUARY 24, 1983 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, January 24, 1983, 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, Szymkowiak McGann, Taylor, Zielinski, Crone, Harris, 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 December 6, 1982, January 3 and January 10, 1983, meeting of the Council and found them correct. The sub - committee, therefore, recommends that the same be approved. /s/ Beverlie J. Beck Is4 Lewis A. McGann Isl Beverly D. Crone Council Member Serge made a motion that the minutes of the December 6, January 3 and January 10, meetings of the Council be accepted and placed on file, seconded by Council Member McGann. The motion carried. SPECIAL BUSINESS Council President Beck introduced the Youth Activity Team, headed by Mark Kurowski. Council Member McGann made a motion to appoint Edward C. Levy to the Human Rights Commission, seconded by Council Member Taylor. The motion carried. REPORTS Council Member Voorde indicated that Zoning and Vacation Committee had met regarding Bill nos. 3 and 4 -83 and recommended both favorable. Council Member Taylor made a motion to resolve into the Committee of the Whole, seconded by Council Member Zielinski. 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 January 24, 1983, at 7:04 p.m., with nine members present. Chairman Zielinski presiding. BILL NO. 3 -83 A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTY: PART OF THE EAST WEST ALLEY FROM THE EAST RACE TO NILES AVENUE. Council Member Voorde made a motion to continue public hearing on this bill until February 14, 1983, seconded by Council Member Harris. The motion carried. BILL NO. 4 -83 A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTY: THE EAST - WEST ALLEY BETWEEN LOTS 33 AND 34 OF THE ORIGINAL PLAT OF THE TOWN (NOW CITY) OF SOUTH BEND. Now is the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Ann Kolata, Deputy Director of Redevelopment, made the presentation for the bill. She indicated the alley is located the alley is located in the TRANSPO lot. She indicated this alley has not been used for many years, but it has not been vacated. Council Member Voorde made a motion to recommend this bill to the Council favorable, seconded by Council Member Harris. The motion carried. BILL NO. 5 -83 A BILL ESTABLISHING A NON- REVERTING "SELF- FUNDED EMPLOYEE BENEFIT FUND." Now is the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Joseph Kernan, City Controller, made the presentation for the bill. He indicated that on the advice of Corporate Policy Holders, with City will begin a self- funded employee health benefit program effective in February. He indicated that an overall savings for the City will result because claims will be based directly on experience, cash flow will be improved, retentions will not be paid to an insurance carrier, and the City will earn the interest from invested funds. Mike McFarland, 840 N. Michigan, spoke in favor of this bill. He indicated that a committee should be formed to overlook this fund. Council Member Serge made a motion to recommend this bill to the Council favorable, seconded by Council Member Taylor. The motion carried. REGULAR MEETING JANUARY 241 1983 There being no further business to come before the Committee of the Whole, Council Member Taylor made a motion to rise and report to the Council, seconded by Council Member Beck. The motion carried. 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 7:35 p.m. Council President Beck presiding and nine members present. BILLS, SECOND READING ORDINANCE NO. 7160 -83 AN ORDINANCE TO VACATE THE FOLLOWING DESCRIBED PROPERTY: THE EAST -WEST ALLEY BETWEEN LOTS 33 AND 34 OF THE ORIGINAL PLAT OF THE TOWN (NOW CITY) OF SOUTH BEND. 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. ORDINANCE NO. 7161 -83 AN ORDINANCE ESTABLISHING A NON - REVERTING "SELF- FUNDED EMPLOYEE BENEFIT FUND." 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. RESOLUTIONS RESOLUTION NO. 1025 -83 A RESOLUTION OF THE SOUTH BEND COMMON COUNCIL DECLARING ITS GENERAL ATTITUDES AND INTENTIONS RELATED TO THE GRANTING OF TAX ABATEMENT AND THE DESIGNATION OF PHASE I THROUGH PHASE VOF THE AIRPORT INDUSTRIAL PARK, A TAX ABAEMENT IMPACT AREA. WHEREAS, The South Bend Common Council has made a continuing review of locations with the City which may qualify as tax abatement impact areas; and WHEREAS, through this review, the Council has found that here are certain areas which are blighted and non - productive with regard to their contribution to this Community" tax base and employment opportunities; and WHEREAS, the Council has established procedures through ordinance which call for the review of tax abatement petitions for real and personal property abatement considerati< on a case by case basis; and WHEREAS, the Council agrees to continue this program and its goals and objectives of considering projects which would contribute to the public utility or public benefit of the area; and WHEREAS, the Common Council of the City of South Bend finds that an additional area meets the criteria and qualifies as a tax abatement impact area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the CIty of South Bend, Indiana, as follows: SECTIN I. The Common Council hereby finds that all property in Phase I through Phase V, inclusive, of the Airport Industrial Park owned by the Industrial Foundation, I'nc., of South Bend, Indiana, as of this date, legal descriptions of which are attached as Exhibit A and are incorporated fully herein, has experienced underutilitization, cessation of growth, and a lack of employment growth and productivity with regard to its contribution to this Community's tax base and employment opportunities. SECTION II. Phases I, II, III, IV, and V of the Airport Industrial Park of South Bend, Indiana, shall be designated as a tax abatement impact area, and shall be governed by the following conditions which are in addition to the present state and local laws: (1) Requests for tax abatement within this area will be restricted to business uses which would operate within Major Groups 20 through 39, and Major Group 42 of the Standard Industrial Classification Manual published by the Statistical Policy Division of the Office of Management and Budget. A copy is attached as Exhibit B and is incorporated fully herein. (2) Designation of this area as tax abatement impact area qualifying for tax abatement consideration, shall expire on December 31, 1985. SECTION III. Any property owners wishing to secure tax abatement within this area shall file a proper petition and filing fee with the City Clerk. All such petitions shall be reviewed by the Redevelopment Commission, the Human Resources and Economic Development Committee of the Council, and the South Bend Common Council pursuant to statutes and ordinances in effect at the time of filing. I 41, REGULAR MEETING JANUARY 24, 1983 SECTION IV. This Resolution shall be in full force and effect from and after its adoption y 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. Kathy Cekanski, Council Attorney, indicated that a substitute resolution was on file with the City Clerk, however, there were two minor changes to the substitute resolution; in Section II, it should read Airport Industrial Park, instead of Industrial Foundation, Inc., and in sub - section (20) change Urban Development area to Tax Abatement Impact area. Council Member Taylor made a motion to accept and amend the substitute resolution, seconded by Council Member Serge. The motion carried. She indicated that the basic purpose of this resolution would be to designate all five phases of the Airport Industrial Park as a tax abatement area. She asked that the following letter be incorporated into the minutes: Members of the Common Council 441 County -City Building South Bend, IN 46601 Ladies and Gentlemen: Over the last few months the Common Council has been giving consideration to the granting of an Urban Developmetn Area designation to the Industrial Park complex of the South Bend Industrial Foundation. By this letter, on behalf of Project Future, I am adding my support to the request of the Industrial Foundation that these Parks be so designated, in total. It is our sincere hope that such a declaration will not only make this area more competitive for new industries but, equally important, that it will encourage existing manufacturing firms to commence with planned expansions. In the course of the debate over this issue, a number of questions have been raised which I believe require comment. They are: 1. Can this area be declared "blighted "? Yes. The blighted language in the statute is somewhat ambiguous, at best. A strong argument can be made for this declaration, based upon the severe decrease in employment in the manufacturing sector, and the lack and cessation of normal growth in both facilities and employment. Since 1979, in just three years, we have experienced a loss of 5600 manufacturing jobs (of 34,600 - 160). The "classic" manufacturing multiplier unfortunately works in reverse in this instance; our area has seen a loss of 13,600 total jobs since 1979, from a base of 116,700 (a negative multiplier of 2.43). 2. Is tax abatement a substantial incentive to relocate or expend? Yes; in two different ways. Tax abatement will not in and of itself, cause a firm to decide to relocate. Once the decision is made, however, it does play a major role in determining where a firm will choose to go, within a limited geographical area. With respect to expansion, the change in cash flow which will result can change a marginal stituation into a good one; moving forward the date which other economic factors may be holding back. Our present unemployment picture cries out for such encouragement. 3. Should a local program such as Tax Abatement be used to offset the impact of national economic factors? Yes. I submit that it makes little difference why a man is unemployed or business growth has slowed or ceased; if a local program has any potential to have a positive effect, then it should be pursued. 4. Can the designation of this program lead to abuse by others? Not if the Council uniformly sets guidelines which are used to review requests for abatement on a case -by -case basis. I agree with the suggestion that it be restricted to only certain uses. The Council may wish to restrict approvals to only those businesses operating within Major Groups 20 through 39, and Major Group 42 of the Standard Industrial Classification Manual, published by the Statistical Policy Division of the Office of Management and Budget. (See attached listing.) 5. What if the economy should suddenly improve? The Council may wish to establish a sunset provision for the Urban Development Area which would make it available only for the next three (3) years, through 1985. The present Indiana k1 REGULAR MEETING JANUARY 241 1983 statute on Equipment Abatement expires in 1985, and this may be a convenient time for the Council to measure the effect of the program and evaluate the need for termination or expension. 6. Will the extension of Tax Abatement to the Industrial Parks impair the City's efforts to develop other industrial areas in redevelopment districts, such as Monroe- Sample? While there may be an occasional incident when a firm may choose the Industrial Parks over these districts, given abatement potential in both, I believe that these instances will seldom occur. A firm which is choosing one or the other is often keying on factors which outweigh the influence of Tax Abatement, such as a central city location, small land parcel size, and special Redevelopment incentives, as in the case of Monroe - Sample. Firms which given consideration to the Airport Parks and inner city parks (such as Monroe - Sample) often have completely different needs. In closing, it is my hope that the City Council give serious consideration to this issue. I am convinced that the positive message that will be sent to our existing industries, as well as the resulting increased competitiveness of the Industrial Parks for new firms, fully merits the declaration of an Urban Devleopment Area. Very Truly yours, /s /Patrick M. McMahon Ann Kolata, Deputy Director of Redevelopment, indicated they preferred giving tax abatement to just Phase III. Kathryn Brookins, 701 W. LaSalle, spooke against granting tax abatement. Council Member Taylor made a motion to adopt this resolution, seconded by Council Member Serge. The resolution was adopted by a roll call vote of eight ayes and one nay (Council Member Crone.) BILLS, FIRST READING BILL NO. 7 -83 This bill had first for public hearing The motion carried. BILL NO. 8 -83 This bill had first for public hearing The motion carried. BILL NO. 9 -83 This bill had first for public hearing Finance Committee, BILL NO. 10 -83 A BILL AMENDING CHAPTERS 9 AND 21 OF THE SOUTH BEND MUNICIPAL CODE. reading. Council Member Taylor made a motion to set this bill and second reading February 14, seconded by Council Member Voorde. A BILL ESTABLISHING A SECURITY AND INTELLIGENCE ACCOUNT WITHIN THE CONTROLLER'S BUDGET OF THE GENERAL FUND. reading. Council Member Taylor made a motion to set this bill and second reading February 14, seconded by Council Member Zielinski. A BILL AMENDING ORDINANCE NO. 7080 FIXING THE MAXIMUM SALARY FOR A POSITION WITHIN HUMAN RIGHTS. reading. Council Member Taylor made a motion to set this bill and second reading February 14, and refer it to the Personnel and seconded by Council Member Zielinski. The motion carried. A BILL APPROVING THE FORM AND TERMS OF AN AMENDED AGREEMENT OF OPERATIONS BETWEEN ST. JOSEPH COUNTY HOTEL -MOTEL TAX BOARD OF MANAGERS AND SOUTH BEND CIVIC CENTER BOARD OF MANAGERS AND CITY OF SOUTH BEND AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO THE SOUTH BEND CIVIC CENTER. This bill had first reading. Council Member Taylor made a motion to set this bill for public hearing and second reading February 14, and refer it to the Personnel & Finance Committee, seconded by Council Member Zielinski. The motion carried. ORDINANCE NO. 7162 -83 AN ORDINANCE APPROVING A CONTRACT BETWEEN BASNEY FORD AND THE BOARD OF WATER WORKS COMMISSIONERS. This bill had first reading. Council Member McGann made a motion to suspend the rules and have public hearing and second reading on this bill, seconded by Council Member Taylor. The motion carried on a roll call vote of nine ayes. Now is the time heretofore set for public hearing on the above bill, proponents and opponents were given an opportunity to be heard. Michael Vance, Director of Utilities, made the presentation for the bill. He indicated the bill should be amended to reflect the amount of the contract to be $20,146. Council Member Taylor made a motion to amend this bill, seconded by Council Member Crone. The motion carried. He indicated this money would be used replace three worn out vehicles. Council Member Serge made a motion to pass this bill, as amended, seconded by Council Member Taylor. The bill passed by a roll call vote of nine ayes. r 41 BILL NO. 12 -83 REGULAR MEETING JANUARY 24 1983 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 17, SECTION 2 -205 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA, COMMONLY REFERRED TO AS FEES CHARGED FOR LEGAL ADVERTISEMENTS. This bill had first reading. Council Member Taylor made a motion to set this bill for public hearing and second reading February 14, seconded by Council Member Zielinski. The motion carried. UNFINISHED BUSINESS Report from Area Plan - 316 S. St. Joseph - Bill No. 152 -82 Council Member Taylor made a motion to set this bill for public hearing second reading February 28, 1982. PRIVILEGE OF THE FLOOR Mark Kurowski, 1227 Congress, indicated that the Youth Action Team had 1,614 signatures on a petition to get the Violin Woman moved. He indicated their goal was 5,000 signatures Richard Hill, City Attorney, commended Mark and other representatives of his group. 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 McGann. The motion carried and the meeting was adjourned at 8:50 p.m. ATTEST: City Clerk APPROVED: P nt