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HomeMy WebLinkAbout04-10-72 Council Meeting MinutesREGULAR MEETING APRIL 10, 1972 REGULAR MEETING APRIL 10, 1972 Be it remembered that the Common Council of the City of South Bend, Indiana met in the Council Chambers of the County -City Building on Monday, April 10, 1972 at 8:05 p.m. The meeting was called to order by President Peter J. Nemeth and the Pledge of Allegiance to the flag was given. ROLL CALL PRESENT: Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and Nemeth. ABSENT: None RESOLVE INTO THE COMMITTEE OF THE WHOLE Council President Nemeth entertained a motion to resolve into the Committee of the Whole, so moved by Councilman Parent, seconded by Councilman Miller, and carried. COMMITTEE OF THE WHOLE MEETING Be it remembered that the Common Council of the City of South Bend, Indiana met in the Committee of the Whole in the Council Chambers of the County -City Building on Monday, April 10, 1972 at 8:05 p.m. with nine members present. The meeting was called to order by Chairman Odell Newburn, who presided. ORDINANCE AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA. This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given an opportunity to be heard thereon. Councilman Nemeth explained that this ordinance would allow a petitioner to submit a preliminary site plan to the Area Plan Commission. When the rezoning comes before the Common Council, it will be referred back to the Area Plan Commission at which time they will insure that the final site plan conforms to the preliminary site plan. It will be less expensive for the petitioner to present the final site plan later. Miss Virginia Guthrie, Executive Director, of the Civic Planning Association, asked what happens if changes are made after the final vote by the Area Plan Commission and the Common Council. Councilman Nemeth said that the City Building Department, the Area Plan Commission, and the City Ehgineer all receive certified copies and it would be up to them to make sure that the builder conforms to the final site plan. Miss Fanny Grunwald, 227 S. Frances Street, asked what happens if property is rezoned and a filling station is built and then the business fails and the pro- perty is put to some other use. She asked whether this new zoning ordinance would prevent this from happening. Councilman Nemeth answered that once a property is zoned for commercial use, any business that is allowed under commercial zoning can be operated on the property. The ex- ception to this would be if the property were rezoned to allow a specific business to be operated on the property. Councilman Parent made a motion that this Ordinance be referred to the Area Plan Commission for further study and that the Public Hearing be continued until a later date. The motion was seconded by Councilman Nemeth and the motion carried. ORDINANCE AN ORDINANCE AMENDING ORDINANCE NO. 4990 -68, AS AMENDED, COMMONLY KNOWN AS THE ZONING ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA (CHAPTER 40, MUNICIPAL CODE) Miami Hills Apartments - Phase II This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given an opportunity to be heard thereon. Mr. Jack C. Dunfee, Jr., First Bank Building, Attorney for the petitioners, spoke in favor of the ordinance. The Miami Hills Development Corporation came before the Council in 1969 for this rezoning for their apartment complex. Phase I is basically completed except for landscaping. The builders have now agreed that some changes would be beneficial. The new site plan would provide more open space in the area by rearranging the buildings and parking facilities. The new plan includes one more apart- ment unit (a total of 150 now instead of 149) but with 40 fewer bedrooms and 25 additional park- ing spaces. The abutting property owners have agreed that these changes would be i.pprovements and the Area Plan Commission has approved the new site plan. Councilman Taylor asked Mr. Dunfee if there are any plans to improve the exterior appearance of the buildings in Phase I. Mr. Dunfee said that the builder agrees that the exterior needs change. They have experimented with Color, with the idea that the levels could be separated by different colors. A different exter- ior finish is planned for Phase II. Mr. Lowell Spalding, 3422 Woldhaven Drive, said that all the neighbors were not consulted about the amended site plan, that the apartments already con- structed are monstrosities, and lower the property value in the area, that they have not tried to change the exteriors and that light shields which were promised have not been put up. Mr. Dunfee replied that the property owners within 300 feet of the proposed new construction were notified and that a meeting was held in the home of Roger Winters. He said that many of the problems will be solved when the landscaping is completed. Original plane for Phase I called for open stairwells, but they were enclosed at the request of the Building Commissioner and the Fire Department. This has led to more bulk in the structures and the need for color to improve the exterior appearance. Councilman Horvath asked Mr. Dunfee if he could give the Council a commitment that these changes would be made in Phase I before Phase II is started. Mr. Dunfee replied that he could not make such a commitment. Councilman Parent said that the Council could approve the new site plan subject to the improvements being made to the existing buildings. Mr. Dunfee said that whatever requirements or restrictions are made by this body should be made known to all builders and developers. He said the Council would be setting a precedent by imposing restrictions on site plans and buildings already approved. This would discourage other devel- opers. Councilman Miller asked if the changes were mandated by the Federal Housing Authority. Mr. Dunfee replied that they were suggested by the F.H.A. Councilman Miller asked Mr. Spalding if he felt that Phase II, as proposed, would be acceptable to the neighborhood. Mr. Spalding said it would if changes were made in Phase I to make it more compatible. Councilman Nemeth questioned Mr. Dunfee about a recent news story regarding bankruptcy proceedings in regard to this developer. Mr. Dunfee replied that there is a problem with financing. There is a manu- facturing plant in this area now for this type of structure and this will help. The developer is in the process of refinancing to get working capital now. Councilman Nemeth asked Mr. Dunfee REGULAR MEETING APRIL 10, 1972 MIAMI HILLS APARTMENTS - PHASE II (PUBLIC HEARING CONTINUED) if he could give an approximate estimate of the valuation o Dunfee said he could not as there are no guidelines yet for The value could Be $1,000,000. Councilman Serge asked if a original rezoning request in 1969. Mr. Dunfee replied that that the ordinance go to the Council as favorable, seconded carried. E the property when completed. Mr. assessing this type of structure. site plan was attached to the there was. Councilman Miller moved by Councilman Taylor. Motion There being no further business to be considered before the Committee of the Whole, Chairman Newburn entertained a motion to rise and report to the Council, so moved by Councilman Nemeth.. Motion carried. Time 8:40 p.m. ATTEST: CITY CLERK REGULAR MEETING - RECONVENED Be it remembered that the Common Council of Council Chambers in the County -City Building President Peter J. Nemeth presiding. REPORT OF THE COMMITTEE ON MINUTES the City of South Bend, Indiana reconvened in the on Monday, April 10, 1972 at 8:40 p.m., Council Your Committee on the inspection and supervision of minutes would respectfully report that they have inspected the minutes of the Marhh 27 regular meeting of the Council and found them correct. They, therefore, recommend that the same be approved. /s/ Peter J. Nemeth /s/ Terry S. Miller Upon motion by Councilman Horvath, seconded by Councilman Serge, and carried, the report was accepted as read and placed on file. CITIZENS REQUESTS - MISCELLANEOUS MATTERS Mrs. Patricia Slusser, 546 Klinger Street, spoke on behalf of disabled persons and paraplegics and asked if curbs throughout South Bend were going to be raised. She specifically mentioned the curbs near the RETS School on South Michigan Street. Mr. William Richardson, City Engineer, explained that under the Downtown Urban Renewal Improvements, ramps will be installed at all intersections using set standards. Mrs. Slusser then asked whether the new Post Office Building will have steps. Mr. Lloyd Taylor, Executive Director of the Redevelopment Commission, replied that he was not sure but did not think there would be any steps and that the City of South Bend had nothing to do with drawing up the plans for the new Post Office, as it was done by the Army Corps of Engineers. He said that the plans for the Post Office are available for inspection by interested citizens in the Redevelopment Commission office. Mrs. Ann Wlodarski, 1869 Riverside Drive, inquired about a letter sent to the city by the Environmental Protection Agency in regard to the problem which has developed with some water wells in German Township since the two new wells were drilled by the Wastewater Treatment Plant. Mr. William Richardson, City Engineer, replied that the city had received the letter today and had immediately informed the Environmental Protection Agency of the steps that are being taken. Consulting engineers are studying the problem but no determination has been made as to what effect, if any, has resulted from the drilling of the two test wells. They are monitoring the water level every day keeping a close watch on the situation. If this area were in the city, the problem could be solved by installing water mains. Miss Virginia Guthrie, Executive Director of the Civic Planning Association, distributed com- plimentary copies of "Civic Cinema ", the Association's publication, to the members of the Council. REPORT OF THE COMMITTEE OF THE WHOLE Council President Nemeth entertained a motion to waive the reading of the Committee of the Whole report, so moved by Councilman Newburn, seconded by Councilman Miller, and unanimously carried. ORDINANCES, THIRD READING 5388 -72 AN ORDINANCE AMENDING ORDINANCE NO. 4990 -68, AS AMENDED, COMMONLY KNOWN AS THE ZONING ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA (CHAPTER 40 - MUNICIPAL CODE) Miami Hills Apartments - Phase II This Ordinance was given third reading. Councilman Miller made a motion for adoption of the ordinance, seconded by Councilman Taylor. Councilman Parent then made a motion that the Ordinance be passed with an amendment that it be subject to the improvements being made in Phase I as to painting the exteriors and installing light shields to protect against headlight glare, by the time of the completion of the project. Councilman Horvath seconded this motion. Councilman Taylor asked Mr. Dunfee if Phase I had been completed in accordance with the site plan filed. Mr. Dunfee replied that it had with the exception of the landscaping and the fence -light shields and that it would be completed in accordance with the site plan filed. The site plan did not call for any particular exterior color finish. Councilman Taylor said that if the builders are building according to the site plan, they are living up to their obliga- tions. He said that he sympathized with Mr. Spalding but putting restrictions such as these would be like blackmail. Councilman Nemeth said that it would be setting a dangerous precedent to tell builders what color to paint their buildings. Councilman Newburn said that all the Council should ask is that the builders are following the site plan as approved. The motion to amend failed by a vote of five nays: (Councilmen Serge, Miller, Taylor, Newburn and Nemeth) four ayes: (Councilmen Szymkowiak, Parent, Kopczynski and Horvath. The Ordinance passed by a roll call.vote of five ayes: (Councilmen Szymkowiak, Miller, Taylor, Newburn and Nemeth) and four nays: (Councilmen Serge, Parent, Kopczynski, and Horvath). REGULAR MEETING APRIL 10, 1972 REGULAR MEETING - CONTINUED RESOLUTIONS RESOLUTION NO. 303 -72 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA IN THE MATTER OF THE ROYAL INNS OF AMERICA, INC. WHEREAS, the Royal Inns of America, Inc. has submitted its intention to the Economic Development Commission of South Bend to build a facility on the approximate four acre tract located in the City of South Bend under the R -66 Urban Renewal Plan designated for this purpose, bounded by the extension of Western Avenue, East Wayne Street, East Jefferson Street and the extension of St. Joseph Street, as proposed in the Urban Renewal Plan. WHEREAS, the Royal Inns of America, Inc., has submitted a statement of public service to the above Economic Development Commission of the City of South Bend and said Commission has for- warded this statement of public service with their approval and comments to the South Bend School Corporation, a copy of which is attached, and WHEREAS, the affirmative response and analysis of the South Bend School Corporation has been received as presented to the Clerk of the City of South Bend and attached, and WHEREAS, the statement of public service by Royal Inns of America, Inc., and the Economic Devel- opment Commission of the City of South Bend have been submitted for approval and comments to the Area Plan Commission of St. Joseph County and the affirmative action and comments of the Area Plan Commission have been received by the Clerk of the City of South Bend as attached, and WHEREAS, the requirements of the application as described in the "Municipal Economic Development Act of 1965 of the State of Indiana" as amended have therefore been met to this point, including a projection of the number of jobs created, the estimated payroll created and the approximation of the cost of the land and construction, and the impact on utilities and fire and police facilities of the City of South Bend with the approvals of the school corporation and the Area Plan Commission having jurisdiction of the area in which the propcsed facility is to be built, and WHEREAS, the plan meets the desire of the Redevelopment Commission of the City of South Bend, WHEREAS, now the Royal Inns of America, Inc., seeks approximately $2,400,000 to $2,800,000 from an issue of revenue bonds of the Economic Development Commission of the City of South Bend to be signed by its Mayor and by its city clerk and further desires to enter into a lease of 20 to 25 years duration to be known as a net net net lease sufficient to pay the principal and interest of these bonds and obtain title at the end of the lease, and WHEREAS, by virtue of the net net net lease, the Royal Inns of America, Inc., indicates its intention to pay all expenses of the operation, maintenance, insurance, property taxes, whatever of the facility, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND that the statement of public service on the part of the Economic Development Commission of the Area Plan Commission any the South Bend City School Corporation be accepted and approved, and THEREFORE BE IT RESOLVED that the South Bend City Common Council authorize the Economic Develop- ment Commission of the City of South Bend to proceed to make preliminary agreements with the proposed lessee, the Royal Inns of America, Inc., in the nature of a conditional commitment to enter into a lease with the Royal Inns of America, Inc., and THEREFORE, BE IT RESOLVED that the Economic Development Commission of the City of South Bend shall, as soon as the new lease form is properly prepared, submit the same to the Clerk of the City of South Bend to be prepared by a member of the Common Council as a proposed ordinance for the acceptance of same and issuance of revenue bonds to cover the amount of money needed. /s/ Peter J. Nemeth Member of the Common Council A public hearing was held on this resolution at this time. Mr. Lloyd Taylor, Executive Director of the Redevelopment Commission, introduced Mr. Karl King, President of the Economic Development Commission. Mr. King asked Mrs. Irene Gammon, City Clerk, to read two exhibits attached to the resolution as follows: m March 29, 1972" Mr. Karl King, President Economic Development Commission of South Bend County -City Building South Bend, Indiana 46601 Dear Mr. King: As you may know, Royal Inns of America is planning to build a hotel in downtown South Bend in the very near future. Our plans call for a 150 room Royal Inn with a restaurant and cocktail lounge. In addition, our plans call for a swimming pool, a therapy pool, two sauna baths, and an exercise room. The project cost is estimated to be approximately four to four and one -half million dollars. REGULAR MEETING APRIL 10, 1972 RESOLUTION NO. 303 -72 (PUBLIC HEARING CONTINUED) (LETTER TO MR. KING CONTINUED) In running the hotel, we will employ quite a number of people. Although the exact number will vary with the occupancy, we anticipate the minimum employment will be approximately 55 people. All but two or three of these people would be hired from your community. This will creata a payroll of approximately $15,000 per month. Inasmuch as they are employed locally, this would not create any additional burden on the present school system. Royal Inn's program utilizes a limited partnership arrangement. Under this arrangement this Corporation maintains approximately 50% and through John Nuveen & Company we sell the other 50 %. These are sold in increments of 1 %. A 1% interest in South Bend will be approximately $13,100, which will mean that we will receive $655,000 in equity from our partners. The sale of these percentage interests are treated as securities and as such are registered with the Securities and Exchange Commission. For financing we are seeking a $2.6 million to $2,8 million 6% bond issue with a lease term of 20 to 25 years. All additional equity needed over and above the financing and the partners' contribution will be furnished by Royal Inns of America, Inc. We look forward to becoming part of the South Bend community and we hope we can move forward rapidly with this project. If you have any questions regarding our program, please give us a call. Very truly yours, /s/ Wm. L. Loizeaux Wm. L. Loizeaux Vice President - Finance WLL:vjt If April 2, 1972 " Mr. Karl King, President Economic Development Commission City of South Bend County -City Building South Bend, Indiana 46601 Dear Mr. King: Please permit this letter to serve as our commitment to purchase the Industrial Revenue Bonds in an amount not to exceed $2,800,000 to be issued for the purpose of constructing a 150 -room Royal Inns of America Hotel to be constructed on Parcel No.7 -1 situated in the Central Downtown Project, R -66. The term of these bonds will coincide with the lease entered into by the limited partnership formed by Royal Inns of America, Inc. and other investors. Cordially, /s/ Jerome B. Kearns Jerome B. Kearns Executive Vice President JBK:vjt 11 it Mr. Frederick Craven, Vice President of the Economic Development Commission said that they have made a thorough study of this proposal and commend it to the Council for adoption. Mr. Taylor said that this involves a four acre parcel of land, bounded by the new St. Joseph Street, Western Avenue, and Wayne Street, purchased by the Royal Inns of America. The resolution would authorize the Economic Development Commission to enter into a lease agreement with the Royal Inns of America to issue $2.8 million dollars in tax -free revenue bonds. The St. Joseph Bank & Trust Co. has agreed to purchase the bonds at 6% interest. Mr. King emphasized that neither the city or the commission guarantees the loan. The total cost of the proposed structure will be $4.5 millio which will add to the city's tax revenues, and it will employ about 55 persons. Mr. John O'Hanlon, 975 Riverside Drive, said that the city, by backing the loan, competes with other hotels and motels in the city, since private industry would have to pay as high as 8% interest. He also questioned the need for additional hotel and motel rooms in the city, since some that are already in operation are not filled to capacity. Mrs. Audrey Conley, Director of the Convention Bureau of the South Bend - Mishawaka Area Chamber of Commerce, spoke in support of the resolution. She said that this type of hotel would increase the possibility of bringing large conventions to South Bend and they, in turn, bring new money into the city. Last year, she said, ten million dollars in new money was brought into the area. Councilman Nemeth asked who determines who will REGULAR MEETING RESOLUTION NO. 303 -72 (PUBLIC HEARING CONTINUED) APRIL 10, 1972 will get the benefit of these loans. Mr. King replied that the Economic Development Commission decides. 44 states are now taking advantage of tax -free revenue bonds to encourage new business and industry, according to Mr. King and he also said that, since the announcement was made that the Royal Inns of America were planning a project in South Bend, there have been other inquiries from a retail store and an industry about available property in South Bend. Councilman Miller made a motion that the resolution be adopted, seconded by Councilman Szymkowiak. The resolution was adopted by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and Nemeth). 0 nays. ORDINANCES, FIRST AND SECOND READING ORDINANCE AN ORDINANCE ORDERING AND PROVIDING FOR THE SALE OF CERTAIN REAL ESTATE IN THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA WHICH SAID REAL ESTATE IS OWNED BY SAID CITY FOR USE OF ITS PARK DEPARTMENT (South Side of Ireland, West of Commercial Area at Miami) 1 - This Ordinance was given first reading by title and second reading in full. Councilman Horvath made a motion that the Ordinance be set for public hearing on May 1, 1972, seconded by Councilman Taylor, and carried. ORDINANCE AN ORDINANCE PROVIDING FOR A CUMULATIVE BUILDING AND EQUIPMENT FUND AND AUTHORIZING LEASE- PURCHASE AGREEMENTS FOR FIRE - FIGHTING EQUIPMENT AND FOR OTHER PURPOSES This Ordinance was given first reading by title and second reading in full. Councilman Horvath made a motion that the ordinance be set for public hearing on May 8, 1972. The motion was seconded by Councilman Newburn, and was carried. ORDINANCE AN ORDINANCE REORGANIZING THE STRUCTURE OF THE EXECUTIVE BRANCH OF THE GOVERNMENT OF THE CITY OF SOUTH BEND, INDIANA. This Ordinance was given first reading by title. Councilman Newburn said that since the council- men are studying this proposal very carefully, he would like to move that the second reading and the public hearing on this ordinance be set for May 1, 1972. Councilman Szymkowiak seconded the motion and it was carried. There being no further business, unfinished or new, to come before the Council, Councilman Taylor made a motion to adjourn, seconded by Councilman Parent. The motion carried and the meeting adjourned until May 1, 1972. Time 9:40 p.m. ATTEST: CITY CLERK ' APPROURn -