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HomeMy WebLinkAbout02-07-77 Council Special Meeting Minutes;SPECIAL MEETING FEBRUARY 7, 1977 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, February 7, 1977, at 7:00 p.m., Council President Roger O. Parent presiding. The meeting was called to order and the Pledge to the Flag was given. ROLL CALL PRESENT: Council Members Serge, Szymkowiak, Miller, Taylor, Kopczynski, Adams, Dombrowski, Horvath and Parent ABSENT: None TO THE MEMBERS OF THE SOUTH BEND COMMON COUNCIL NOTICE OF SPECIAL MEETING OF THE COMMON COUNCIL CONCERNING CENTURY CENTER You are hereby notified that there will be a special meeting of the South Bend Common Council, January 17, 1977 at 7:00 p.m., for the purposes outlined below. All nine Council Members signed the request for a Special Council Meeting. 1. To provide an opportunity for both the City Council and the general public to review the development of the Century Center to the present time and to discuss all major aspects of its future course. 2. To take a thorough look at the Century Center construction costs already incurred and to discuss projected total cost of the project including such items as fur- nishings, landscaping, parking and so forth. 3. To receive an up -to -date accounting of all private and public funds spent on the Century Center, and to review projected fund sources for its completion. SPECIAL MEETING FEBRUARY 7, 1977 4. To provide for an analysis of the weaknesses and strengths of the present administrative structure of the Century Center, including an appraisal of the legal responsibilities of the Center's Board of Managers, the Mayor's office, the Board of Public Works, the City Council and all planned lessees of Century Center space. 5. To receive a professional determination of the total operational costs of the Century Center, focusing on the energy, maintenance and cleaning requirements. 6. To determine the number of paid personnel and volunteers needed to facilitate an ef- ficient productive community -based Century Center, including projections for.-the next five years. 7. To receive realistic estimates of the revenues expected to be generated by the Century Center and its components parts, such as, the convention facility, the art center, the theatres, and so on. Revenue projections should be made for at least the next five years. What percentage of the total operational cost will have to be met through public funds? 8. To focus on the nature of the combination of policy- making groups, professional managers and citizens which will be able to create a Century Center fully alive and responsive to the artistic- cultural- convention needs of the total community. Dated: January 6, 1977 /s/ Roger O. Parent Roger O. Parent, President ATTEST: /s/ Irene K. Gammon Irene K. Gammon, City Clerk The within call for a Special Council Meeting came to hand the 4th day of January, 1977 which I serve by reading the same to each Councilman upon the date designated. Joseph T. Serge /s/ Walter M. Szymkowiak Walter M. Szymkowiak Terry S. Miller Roger O. Parent /s/ Robert G. Taylor Robert G. Taylor Walter T. Kopczynski Mary Christine Adams /s/ Richard C. Dombrowski Richard C. Dombrowski /s/ Frank Horvath Frank Horvath or by leaving a certified copy thereof at the last and usual place of residence of such members as I was able to find, as follows: Terry S. Miller Roger O. Parent Joseph T. Serge Mary C. Adams Walter T. Kopczynski /s/ Ptl. Sherril M. DeCleene #310 Member of the South Bend Police Department The meeting scheduled for January 17, 1977, was cancelled due to cold weather. It was rescheduled for January 31, 1977, and had to be cancelled because severalprarticipantswere unable to attend. Council President Parent indicated that the purpose of this meeting was to give the Council and the public an overall view and opportunity to see the people who are directly involved in the en- tire concept of the Century Center. He said that four years ago the Council had a special meeting on the Center and adopted a resolution accepting the concept. He indicated there was a very stronc commitment to the Century Center by the Council. He introduced Mr. Richard Rosenthal, Chairman of the Century Center Board of Managers. Mr. Rosenthal indicated he was pleased with the opportunity to report what is happening at Century Center. He said this should give everyone attending an important background so that questions could be answered.by the factual presentation. He said there was a great need in the community fol a convention center and buildings to house our cultural facilities. He indicated that Century Center was being built on time and within budget. He said the building contains everything that it was designed to contain and nothing was cut. He indicated this project has stimulated other economic development for the community. He introduced Patrick McMahon, Director of Public Works, who gave cost and budget information. Mr. McMahon discussed points two and three on the agenda. Point two was a summary of all construct costs and projected total costs for the project, including landscaping, furnishing, parking, etc. Point three related to all private and public funding spent on the Center. He showed a slide pre- sentation. He stated there are five separate buildings joined by walkways; the convention facilit, the museum, an area for music, drama and dance, the Art Center, and a community court yard which overlooks the river front. He stated that a construction management concept was chosen to provide for local people to bid directly on the building, as opposed to one general contractor bidding and then subcontracting. RE SPECIAL MEETING FEBRUARY 7, 1977 He then discussed the dual ownership of the facility by the Board of Public Works and the Civic Center Building Authority. He said the latter is responsible for forty percent of building cost emanating from the 5.4 million dollar bond sale. He said the Board of Public Works acts as the owner and funnel for the money coming from Civil City Bonds, Revenue Sharing, private fund drive etc. He said the Civic Center Board of Managers is responsible for the operation of the Center. He said the Building Authority, who were appointed by the Circuit Court, function similar to a school board, and are not involved in the building management. Charts of labor and construction costs were shown, and projected a $10.9 million total with 60% going for salaries in the South Bend area. Breakdown information on specific work done by local workers was given. Estimated material costs are $4,360,000.00 and of that figure 89% is obtainable locally. One hundred and twenty laborers per day, per month was quoted as being the high. A chart regarding the break- down of funds was presented in detail. Obligated costs, those costs already tied up in contrac on the facility to date total roughly $12,715,528. He indicated that that was an estimated cost. Obligated revenues to offset the costs to date is approximately $4,892,000 from the bond sale, with the total obligated at $12,923,000. He said this leaves a $208,000 contingency for t City's portion of the building. He then gave a summary on the aspects of the bond sale, quoting total proceeds, interest rates, and annual revenues to offset the obligation. Further charts on fund disbursement breakdowns were then shown. He then explained the outstanding items, those which have not been contracted, but must be done in order to open the Center. He said kitchen equipment would total approximately $180,000; convention furnishings $170,000. He said both of these would be funded out of the Hotel -Motel tax. He said museum furnishings would be $100,0 which covers the initial building of display areas. He said theatre equipment would be roughly $72,000, of which approximately $50,000 has been raised, and the balance would be covered either by grant or a special drive. He said parking, landscaping and the driveways would be appoximate $250,000, one half of which will be funded by a grant, and hopefully the second half would be funded through participating labor on the part of the City, as opposed to a cash match. Mr. Fred Kahn, member of the Civic Center Board of Managers, indicated his presentation dealt wi the fourth category on the agenda, primarily the administrative structure and the responsibiliti of the people involved. He said that in 1973 an ordinance was passed creating the Civic Center Authority with membership of nine representatives to be appointed by the Mayor and the Council. He said it functioned until 1975, when the name was changed to the Civic Center Board of Manager He said the City had adopted a resolution creating the Civic Center Building Authority, whose purpose was financing, acquiring, constructing, equipping and leasing back to the City a buildin or buildings for civic purposes. He stated that the law granted the City the power to sign into a lease agreement in advance of construction, but without rent until after occupancy. He said the law further states that the Building Authority, the Council and the Mayor must all agree on all terms and conditions pertinent to the Center. He said the Board of Managers must prepare a budget for each year showing all projected expenses and estimated income which must be submitt to the Common Council. He said the City Controller is directed to act as controller for the Board of Managers. He said provisions of the law called for the development of a master lease and subleases. He said under the master lease the Building Authority sold the bonds and signed a lease with the City for usage of the buildings for twenty -five years. He said the rental cost per year to the City for tweny -five years is $456,000. r Mr. McMahon covered item five on the agenda relating to the operational costs for the Center. said this would encompass energy, maintenance and cleaning requirements. He said that $260,000 on an annual basis was allotted for this purpose. He said in addition, $25,000 was set aside f trash removal, custodial supplies, window washing, etc. Mr. Peter Mullen, City Controller, presented an income projection sheet to the Council. He said the projection was formulated from bookings already known and those which have been anticipated within the next six to eight months. He noted that sheets were made available on the anticipates expenditures for 1978, as well as the anticipated gross income, less expenses of $214,000. He then indicated the breakdown of income on the sheets. He said by adding this anticipated income, figures for 1978 should be 20% higher than 1978, with expenses only going up 10 %; for 1980 a 10% increase was given for income and 5% for expenses. He quoted the same percentage for 1981. Mr. Rosenthal indicated that the 1978 budget calls for seven full -time staff members, along with twelve security guards, and twelve maintenance and janitorial people. He said the full -time hel would be funded out of.direct budget, and the security guards, maintenance and janitorial help, which would be part -time, would be funded out of CETA. Council President Parent opened the meeting to the public at 8:15 p.m. Mr. Maurice Cohen, 725 E. Eckman St., questioned a$40,931 figure for demolition of the old power house on Sample. Mr. McMahon stated he erred, w and it was the Olive power generating station. Mrs. Karen Gleason, Executive Director of Civic Planning, asked Mr. Rosenthal about the operatio cost budget figure of $300,000. She noted that utilities are $260,000 which leaves a $40,000 figure. She asked if that was for staff members alone. Mr. Rosenthal indicated she was referri to the 1977 budget, and since the Center would not be operating but only three months there woul be relatively few of the seven staff members on board. Mrs. Gleason indicated she had some conc over the fact that CETA monies were heavily relied upon, and they might not be available. Mr. Rosenthal said there was no indication that CETA moneys would not be available. Mrs. Gleason expressed concern that the Center not be underfunded. Mr. Al Langel, 4033 Huron Circle, asked a question not pertinent to the Century Center and was ruled out of order by President Parent. Council Member Dombrowski made a motion to recess, seconded by Council Member Serge. The meeting adjourned at 8:25 p.m., and reconvened at 8:40 p.m. it n Iwas 1 SPECIAL MEETING FEBRUARY 7, 1977 Council Member Serge indicated he was under the assumption that the entire Studebaker collection was to be displayed, but he had read only a portion of it was going to be displayed. Mr. Lloyd Taylor, member of the Discovery Hall Advisory Board, indicated a museum to house the collection would require 25,000 square feet, and their square footage is 12,000. He said there are 48 or 49 vehicles in the collection, along with other industrial equipment of significance. He said in order to display this well, they were not certain they would be able to use all the vehicles. Mr. Serge suggested a rotating system could be used. Mr. Taylor indicated that the basis of the museum was the Studebaker Collection, and they wanted to utilize to the best of their ability the space available in the museum to portray the industrial and economic history of the community. Mr. Serge asked about the percentage of honorable pledges. Mr. Rosenthal indicated he felt that 90% were good bonified pledges, and that figure amounted to $3,400,000. He stated there were 1.6 million in good pledges left to cover the 1.4 million needed to complete the structure. Mr. Serge asked how much money was set aside for promotion. Mr. Ed Stanek, President of the Hotel -Motel Tax Board, indicated that the convention work had been contracted by the Convention Bureau of the Chamber of Commerce. He indicated this board was created by State law. He said there were eleven members, six appointed by the mayor of South Bend, three by the mayor of Mishawaka, and two by the County Commissioners. He said that income was derived from a transient room tax. He indicated their income has gone up to $175,099. He indicated the County Auditor invests this tax money at the highest possible interest rate. He said that his board had made the following recommendations; more rest room facilities, storage areas, and the addition of a. freight elevator. He said that provisions had been made at no, or very little extra cost to the taxpayer, for these items. Council President Parent asked why a freight elevator was not included in the present plan. Mr. Stanek indicated that the reason the freight elevator was not installed for the opening was that it was found that the bookings schedu for the oncoming two years there was only one that would possibly need such an elevator. He said that the cost of the elevator would be $65,000. He said that provisions have been made for the installation of the elevator. Council President Parent stated that the only reason for his con- cern was that they did not install a freight elevator in the County -City Building and no provisio: were made for one, and now one is needed badly. Mr. Stanek indicated that the convention facilit, was not meant to accomodate just any kind of convention. Council Member Kopczynski questioned the size and capacity of the elevators. Mr. McMahon said there were three elevators, one for passenger usage, and two for freight. One is 7' x 7' and the others are 11' x 71. He said the Hotel -Motel Tax Board was concerned about bringing very large objects into the lower courtyard area, and in order to do this there would have to be an over- sized elevator; however, provisions have been made to add such an elevator in the future if the need exists. Mr. Stanek indicated they had six strong candidates for the executive director position. He said the Century Center Board of Managers is in the process of securing a caterer, and convention promotion was contracted with the area Chamber of Commerce. He said a contract was signed with an advertising firm and they have picked up twenty -four interested organizations for future book- ings. He said the Convention Bureau has twenty bookings confirmed and teMtive for Century Centel as of this date. Council Member Taylor asked if the cash balance on hand at this time was ap- proximately over a half million dollars. Mr. Stanek indicated it was. Council Member Taylor asked what they planned to do with this money. Mr. Stanek indicated a good amount should go for promotion of the facility. He said his board will be picking up some of the furnishings. Mr. Taylor asked if the only two items the Board would agree to pick up were furnishing expense and promotional expense. Mr. Stanek said there were others and if Mr. Taylor wanted a copy of the budget he would furnish it to him. He said moneys were set aside for a convention manager, but those funds will not be touched until duties of the executive director are established. Council Member Adams indicated she had assumed that they would also be furnishing the kitchen equipment and furniture and asked when those would be installed. Mr. Stanek indicated that he did not say they would be furnishing the kitchen in its entirety, the convention portion they would fur- nish, and they would aid in the rest. Council Member Adams indicated the convention furnishings would cost an estimated $170,000, and asked if this would include the entire Convention Center. Mr. McMahon indicated it would, but it does not include the museum or other portions. He said the only section left is the theatre. Council Member Adams asked Mr. Stanek if the Board was committed for the entire amount. Mr. Stanek indicated he was not able to commit to the $170,000 figure, because it was only a projection. Mrs. Jane Swan, 2022 Swygart, asked how many elevators were in the building and what are there exact uses. Mr. McMahon indicated there were three, two freight and one passenger. Mrs. Swan asked the capacity of the passenger elevator. Mr. McMahon indicated it would hold fifteen to twenty people. He said the elevator was meant for the disabled and people unable to negotiate the stairs. Mrs. Swan asked about the private fund drive pledges, and wanted to know if the City would be liable for the remainder of the 1.4 million dollars. Mr. Rosenthal indicated the pledges were good and the bank has honored them. He said the City would not be jeopardized for the $1.4 million. He said the pledges were adequate to lend against and the foundation -could borrow directly from the bank if need be. He said that possibly one way would be for the City to borrow the money on a tax free basis at half the interest rate. Mrs. Swan asked if anyone knew what the parking rate would be. Mr. Mullen indicated it had not been determined. Mrs. Swan indicated the area residents were paying for the Art Center in three different ways, city taxes, school taxes and county taxes. She asked if the Art Center cannot make rental payments, would the City pick up their portion of the rent. Mr. McMahon indicated that there was a pro- vision in the lease between the Center and the City that if the City stops supporting the Art Center, the Center would be allowed to drop out of the building. Mr. John Underhill, 61625 Druid Lane, indicated he felt that the 360 parking spaces would not be enough, and if events were scheduled in the middle of the week the parking garages would be full from people working downtown. Mr. McMahon said studies have been made of what various areas would be used at what time of day. He said it was found that for convention purposes the number of close hotels and motels could furnish the parking for the out -of -town people. He said in addition 360 spaces will be provided just south of the building, over and above the 360 already provided. Mr. Underhill questioned the availability of labor to set up events and if those peopl( had to be union., Mr. McMahon indicated there was no agreements with any union. He said nego- tiations should be underway by summer. SPECIAL MEETING FEBRUARY 7, 1977 Mr. Gene Evans, 5501 York Road, indicated he was concerned about the lack of a table of organiza- tion. He said there was no written policy as to what the relationship will be between the dif- ferent agencies. He said there was a real need for determining who has the overall responsibility. Mr. Rosenthal indicated there were definite written relationships between the Century Center and its tenants and those could be provided. Council President Parent asked whose reponsibility it would be if the Center was not used to capacity. Mr. Rosenthal indicated it would be the res- ponsibility of the Board of Managers. Council President Parent indicated he was unsure as to th administrative structure of the Center. Mr. Rosenthal indicated that if a citizen was dissatisfied with some phase of the Center he would turn to the Board of Managers first. Mr. Tom Zoss, president of Royal Rubber, Inc., indicated concern that smaller groups would not be able to afford to use the Center, just as they cannot afford to use the Morris Civic. He sai4 fees charged to groups that are small not -for- profit organizations should be reasonable enough t l allow them to use the building. He said that fees should be graduated in accordance with the si of the group. He said professional labor organizations should not be exclusively contracted for all work done with the various groups using the Center. He said this would close out the groups who not only cannot afford them and use only volunteers, but do not need them. Council Member Adams asked if every area of the building was accessible to the handicapped. Mr. McMahon indicated every public area was accessible. Council Member Adams asked if there would not be more space available for parking, other than the 360 spaces allotted,if some green areas would be eliminated. Mr. McMahon indicated there was not that much landscaping, and what could be eliminated would not be worth the bother. Council Member Serge asked if all avenues had been researched regarding the pledge drive. Mr. Rosenthal indicated that they have not been, and a supplemental drive would be conducted. He said at the time the building opens hopefully all the avenues will be exhausted. Council Member Serge asked where they planned to obtain a building engineer at a salary of $15,00 Mr. McMahon stated they had six applicants. Mr. Nelson Smith, a Notre Dame student, indicated he felt that the Century Center has a great potential for the 'City and it will be able to revitalize the downtown. He said he was very concerned about the parking situation, and indicated it was going to be 'a problem. Council Member Miller indicated the problem with parking has really been tied up in downtown development.. He said there was a possibility in the future that there might be additional parking across the street. Ms. Anne Dunn, 857 Forrest Ave., indicated she was director of the Southhold Dance Theatre. She indicated there was space allocated in the Center for dance, but it was in the Art Center wing, and she wanted to know who was responsible for determining the use of the space. Mr. Rosenthal indicated that particular area was under the control of School City. Council President Parent asked the total operating costs for next year, as well as the anticipate revenue and its source. Mr. Mullen indicated anticipated expenses are $584,531, with anticipated gross income being $370,300. He said the difference being $214,311 which are the operation -ex- penses. He said this was based on :a conservative low estimated income. Council President Parent asked if this included the money the City appropriated to help run the Art Center. Mr. Mullen indicated it did. Council Member Adams indicated that they were anticipating a deficit of $214,000, and in addition to that CCIF will have to pay the $256,000 lease payment. Mr. Mullen indicated this was correct. Council Member Miller disagreed with the statement that the City would have to pick up the $214, 000. He stated there were other sources which have not yet been negotiated. Mrs._ Karen Gleason asked about the promotion budget. Mr. Mullen indicated $23,500 was approved for _November and December. He said possibly. the Hotel -Motel Tax Board could help with this area. Council President Parent thanked all who participated in the presentations and those who came to listen and ask questions. He adjourned the meeting at 10:20 p.m. ATTEST: City Clerk ATTEST: Presi nt