HomeMy WebLinkAbout06-23-08 Common Council Minutes
REGULAR MEETING JUNE 23, 2008
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, June 23, 2008 at 7:00
p.m. The meeting was called to order by Council President Rouse and the Invocation and
Pledge to the Flag were given.
ROLL CALL
COUNCILMEMBERS:
Present: Derek D. Dieter 1st District, Chairperson Committee of the Whole
Henry Davis, Jr. 2nd District
Ann Puzzello 4th District
David Varner 5th District
Oliver Davis 6th District Vice-President
Timothy Rouse At-Large President
Karen L. White At-Large
Al “Buddy” Kirsits At-Large
Absent: Thomas LaFountain 3rd District
OTHERS PRESENT:
John Voorde City Clerk
Mary Beth Wisniewski Chief Deputy
Janice I. Talboom Deputy City Clerk
Kathleen Cekanski-Farrand Council Attorney
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 June 9, 2008, meetings of the Council and found them to be correct.
Therefore, we recommend the same be approved.
s/Timothy A. Rouse
s/David Varner
Councilmember Oliver Davis made a motion that the minutes of the June 9, 2008
meeting of the Council be accepted and placed on file. Councilmember Dieter seconded
the motion which carried by a voice vote of eight (8) ayes.
SPECIAL BUSINESS
RESOLUTION NO. 3876-08 A RESOLUTION OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, ADOPTING A
WRITTEN FISCAL PLAN AND
ESTABLISHING A POLICY FOR THE
PROVISION OF SERVICES TO AN
ANNEXATION AREA IN GERMAN
TOWNSHIP, PORTAGE ROAD
UNINCORPORATED TRIANGLE
ANNEXATION AREA
WHEREAS, there has been submitted to the Common Council of the City of
South Bend, Indiana, an Ordinance and a petition by all (100%) property owners which
proposes the annexation of real estate located in German Township, St. Joseph County,
Indiana, which is more particularly described at Section I of this Resolution; and
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REGULAR MEETING JUNE 23, 2008
WHEREAS, the territory proposed to be annexed encompasses approximately
0.85 acres of land, which property is at least 12.5% contiguous to the current City limits,
i.e., approximately 100% contiguous, generally located just north of the intersection of
Portage and Appaloosa with a postal address of 52610 Portage Road. It is anticipated that
the annexation area will be developed for a commercial building and a restaurant under
the “CB” (Commercial Business) zoning classification as defined by the City of South
Bend’s Zoning Ordinance. This development will require a basic level of municipal
public services of a non-capital improvement nature, including police and fire protection,
street and road maintenance, street sweeping, flushing, snow removal, and sewage
collection, as well as services of a capital improvement nature, including street and road
construction, sidewalks, street lighting, a sanitary sewer system, a water distribution
system, and a storm water system and drainage plan; and
WHEREAS, the South Bend Common Council now desires to establish and adopt
a fiscal plan and establish a definite policy showing: (1) the cost estimates of services of a
non-capital nature, including police and fire protection, street and road maintenance,
street sweeping, flushing, and snow removal, and sewage collection, and other non-
capital services normally provided within the corporate boundaries; and services of a
capital improvement nature including street and road construction, street lighting, a
sanitary sewer extension, a water distribution system, and a storm water system to be
furnished to the territory to be annexed (2) the method(s) of financing those services; (3)
the plan for the organization and extension of those services; (4) that services of a non-
capital nature will be provided to the annexed area within one (1) year after the effective
date of the annexation, and that they will be provided in a manner equivalent in standard
and scope to similar non-capital services provided to areas within the corporate
boundaries of the City of South Bend, regardless of similar topography, patterns of land
use, and population density; (5) that services of a capital improvement nature will be
provided to the annexed area within three (3) years after the effective date of the
annexation within the same manner as those services are provided to areas within the
corporate boundaries of the City of South Bend regardless of similar topography, patterns
of land use, or population density, and in a manner consistent with federal, state and local
laws, procedures, and planning criteria; and (6) the plan for hiring the employees or other
governmental entities whose jobs will be eliminated by the proposed annexation.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS:
Section I. It is in the best interest of the City of South Bend and the area proposed
to be annexed that the following described real property located in German Township, St.
Joseph County, Indiana be annexed to the City of South Bend:
A part of the West Half of the Southwest Quarter of Section Numbered 22,
Township Numbered 38 North, Range Numbered 2 East, lying East of the
State Road leading from South Bend to Niles, Michigan, known as
Portage Highway, more particularly described as follows, to-wit:
Beginning at the intersection of the East and West center line of said
Section Numbered 22, Township and Range aforesaid with the center line
of said Portage Highway; thence Southeasterly along the center line of
said highway a distance of 385 feet to the point of beginning of this
description; thence Northeasterly at right angles to the centerline of said
Portage Highway, 209.38 feet to a point on the East line of the West Half
of the Southwest Quarter of said Section Numbered 22; which point is
283.6 feet South of the East and West centerline of said Section Numbered
22; thence South along the East line of the West Half of the Southwest
Quarter of said Section Numbered 22, 503.25 feet to a point in the center
line of said Portage Highway; thence Northwesterly with the center line of
said Highway, 176.5 feet to a point; thence continuing Northwesterly with
the center line of said highway, 363.9 feet to the place of beginning.
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REGULAR MEETING JUNE 23, 2008
Excepting from the above described tract of land a parcel more
particularly described as beginning at a point on the East line of the West
Half of the Southwest Quarter, said point being 283.60 South of the East-
West centerline of said Section 22; thence continuing South 00°00’00”
East, a distance of 4.73 feet; thence South 69°10’06” West, a distance of
167.71 feet to the Easterly right-of-way line of Portage Road; thence along
said right-of-way line North 20°43’37” West, a distance of 5.15 feet;
thence North 69°24’54” East, a distance of 169.38 feet to the point of
beginning.
Subject to legal highways.
Section II. That it shall be and hereby is now declared and established that it is
the policy of the City of South Bend, to furnish to said territory services of a non-capital
nature, such as police and fire protection, street and road maintenance, street sweeping,
flushing, and snow removal, within one (1) year of the effective date of the annexation in
a manner equivalent in standard and scope to services furnished by the City to other areas
of the City regardless of similar topography, patterns of land utilization, and population
density; and to furnish to said territory, services of a capital improvement nature such as
street and road construction, sidewalks, a street light system, a sanitary sewer system, a
water distribution system, a storm water system and drainage plan, within three (3) years
of the effective date of the annexation in the same manner as those services are provided
to areas within the corporate boundaries of the City of South Bend regardless of similar
topography, patterns of land use, or population density.
Section III. That the South Bend Common Council, shall and does hereby now
establish and adopt the Fiscal Plan, attached hereto as Exhibit “A”, and made a part
hereof, for the furnishing of said services to the territory to be annexed, which provides,
among other things, that the public sanitary sewer network and water main are available
to service this area with any extensions for future development to be paid by the
developer; that street lighting, parking, sidewalks, and similar improvements together
with a drainage plan will be constructed by the developer, and that all improvements
under this section as well as any necessary screening, signage, and vehicular access shall
conform to the latest State and City of South Bend standards and ordinances.
Section IV. It is required as a condition of annexation that neo-traditional
building/site design elements be included in terms of context, setback, orientation,
spacing, style, massing, height, entry, fenestration, materials, accessory buildings,
landscape buffering and lighting that achieve development and design of the highest
possible quality. It is required that the annexation area integrate harmoniously with the
surrounding residential areas to the north.
In consideration of pedestrian safety and proper vehicular movement, it is further
required as a condition of rezoning and annexation that sidewalks be developed along
Portage to ensure a continuous pathway to the buildings to the north that have a pre-
existing sidewalk.
Building plans and other information to satisfy these requirements must be
submitted by the developer to the City as part of the development review process. Failure
to comply with all the conditions may result in the City’s repeal of annexation.
Section V. This Resolution shall be effective from and of the date of adoption by
the Common Council and approval by the Mayor.
s/Timothy A. Rouse
Member of the Common Council
Councilmember Al “Buddy” Kirsits, Chairperson, Zoning & Annexation Committee,
reported that this committee held a Public Hearing on this bill this afternoon and voted to
send it to the full Council with a favorable recommendation.
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REGULAR MEETING JUNE 23, 2008
Mr. Jeff Vitton, Planner, Division of Community Development, 1200 County-City
Building, South Bend, Indiana, made the presentation for this bill.
Mr. Vitton advised that the annexation area is generally located on the east side of
Portage Road just north of the intersection of Portage and Appaloosa (the entrance to the
Hurwich Farms Apartment Complex), and is completely surrounded by the City of South
Bend. The annexation area is 0.85 acres in area and is 1/8 or 12.5% contiguous to the
current City limits. The annexation area currently consists of vacant land. Once
Commercial/Restaurant building is planned at 4,500 square feet with a drive-through
facility, which is subdivided into two storefronts at 1,800 and 2,700 square feet
respectfully. The site is zoned “R” Residential in unincorporated St. Joseph County. It is
proposed to be zoned “CB” Community Business upon approval of the City Council and
incorporation into the City of South Bend. There is a sanitary sewer on the Portage Road
boundary of this site. It is a fifteen inch diameter pipe. Mr. Vitton stated that it has
adequate capacity for the annexation area. The South Bend Water Works currently has a
12” water main on the west side of Portage that has more than adequate capacity for the
annexation area. If the developer wishes to construct and dedicate additional or
decorative street lighting, the City will accept it for maintenance and operation.
Otherwise the annexation area property taxes will support additional contract street
lighting on Portage. No new streets will be brought into the City’s inventory. The City
of South Bend already maintains Portage Road along this area, so no additional capital
expenditures will be necessary. A recently developed Kentucky Fried Chicken and the
proposed Sonic Restaurant to the north have sidewalks. As such, sidewalks will be
required for this development. Drainage facilities will be required to be constructed by
the developer and meet the latest City of South Bend standards. No waivers of
annexation are in effect for the Annexation area. Mr. Vitton further noted that the
annexation area would be expected to be added to the already existing Beat 22. Police
patrols, traffic enforcement, and emergency responses will be part of the services the City
will offer to this area. This proposed annexation would require officers to cover a
relatively small additional area to this beat. At this time it is not expected that this
annexation would cause calls for service to increase significantly and it is not anticipated
that it will be necessary to increase police patrols beyond the already existing beat patrol
at this time. The area under consideration is not expected to cause any unusual problems.
Cost for servicing this area would be expected to be absorbed by the existing budget of
the Police Department, as the addition of this area would not be significant to the point of
having to increase any budgetary items. Police services and response time in this area
can be expected to be comparable and consistent with that as in all other areas of the City.
Police coverage to this area could begin immediately upon annexation and coordination
of the conversion of the 911 emergency phone systems for that area. Mr. Vitton noted
that the City provides a fully staffed, full time fire department. The Annexation Area will
be serviced primarily by Station #11, located at 3505 N. Bendix Road, approximately 0.6
miles away. Additional Fire Department units would respond from Fire Station #7
located at 1616 Portage Avenue which is approximately 2.9 miles away and Fires Station
#4 at 220 N. Olive St. which is approximately 4.8 miles away. The South Bend Fire
Department does not foresee any unusual fire protection problems related to this
annexation. Response times will be comparable to other areas of the City. No additional
equipment will need to be purchased or personnel hired to service the Annexation Area.
Adequate water supply will be necessary as development takes place. The City, under
contract with St. Joseph County, provides emergency medical response to the
unincorporated areas of St. Joseph County. Of the seven ambulances currently in service,
3 are dedicated for response to the unincorporated areas. These are Medic Units #10, 11,
and 12. The annexation area is currently being services by Medic #11, stationed at 3505
Bendix Drive. Upon incorporation, the annexation area will be serviced by Medic #4,
also located at Fire Station #4, located at 220 N. Olive Street and Medic #3, located at
Fire Station #2, 402 Martin Luther King Drive. Emergency medical response will
continue to be provided by the City of South Bend. Response times will be comparable
to other areas of the City. No additional equipment will need to be purchased or
personnel hired to service the Annexation Area. The Department of Code Enforcement
will be able to provide services to the Annexation Area will add it to Area 8, with
comparable response times and with no additional increase in manpower. The
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REGULAR MEETING JUNE 23, 2008
Department will respond to calls for service upon the effective date of the Annexation.
Full and dedicated response will be in place within one year of the effective date of the
Annexation. Wastewater treatment services are supported by user fees, and are paid
through the Water Works billing system. Industrial, commercial and apartment
customers are not served by the Bureau of Solid Waste. The annexation area will contain
commercial buildings. A licensed private waste hauler will be required to serve this
development. Mr. Vitton stated that as with any new development, the proposed use and
development of this site becomes important relative to its relationship with the existing,
surrounding, and planned uses. City Plan’s Future Land Use Map identifies the parcels
adjacent to Portage Road between Cleveland and the Corporate Limits to be developed
for commercial purposes with the exception of the site of the Hurwich Farms Apartments.
As such, this annexation and rezoning request is consistent with City Plan, South Bend’s
comprehensive plan.
A Public Hearing was held on the Resolution at this time.
Councilmember Dieter asked what business would be going into the site.
Mr. Vitton stated that at this present time, he did not have the name of the business.
Councilmember Dieter stated that this area will be in SBPD Beat 22. That particular beat
is stretched to capacity; however when there are calls for service in that area, they are
responded to. He wanted to go on record noting that this would cause an additional
increase on the already stretched police service in Beat 22.
Mr. Tom Zmyslo, 51042 Prairie View Way, spoke in opposition to this Resolution. He
stated that the annexation area is too congestion already. He advised that since the new
restaurant Sonic has gone in, traffic is a nightmare and parking is a problem. He stated
that patrons are parking across Portage Road in the Teacher’s Credit Union Parking Lot
and walking across the very busy road to get to the Sonic Restaurant. He noted that the
traffic was so busy that it had backed up all the way to the entrance to the Meijer store.
He also advised that the parcel in question has been used by the new restaurant for traffic
overflow. Mr. Zmyslo urged the Council to vote against this annexation and fiscal plan.
There was no one wishing to speak in favor of this bill and no one else wishing to speak
in opposition to this bill.
Councilmember Dieter made a motion to adopt this Resolution. Councilmember
Puzzello seconded the motion which carried and the Resolution was adopted by a roll call
vote of eight (8) ayes.
RESOLUTION NO. 3877-08 A RESOLUTION OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, ADOPTING A
WRITTEN FISCAL PLAN AND
ESTABLISHING A POLICY FOR THE
PROVISION OF SERVICES TO AN
ANNEXATION AREA IN GERMAN
TOWNSHIP, AUTEN CONNECTOR
ANNEXATION AREA PHASE TWO
WHEREAS, there has been submitted to the Common Council of the City of
South Bend, Indiana, an Ordinance and a petition by all (100%) property owners which
proposes the annexation of real estate located in German Township, St. Joseph County,
Indiana, which is more particularly described at Section I of this Resolution; and
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REGULAR MEETING JUNE 23, 2008
WHEREAS, the territory proposed to be annexed encompasses approximately
1.59 acres of land, which property is at least 12.5% contiguous to the current City limits,
i.e., approximately 24.00% contiguous, generally located on the east side of Mayflower
Road approximately a quarter mile south of Adams Road. It is anticipated that the
annexation area will be developed as a roadway by the City of South Bend. This
development will require a basic level of municipal public services of a non-capital
improvement nature, including police and fire protection, street and road maintenance,
street sweeping, flushing, and snow removal, as well as services of a capital improvement
nature, including street and road construction, sidewalks, street lighting, a sanitary sewer
system, a water distribution system, and a storm water system and drainage plan; and
WHEREAS, the South Bend Common Council now desires to establish and adopt
a fiscal plan and establish a definite policy showing: (1) the cost estimates of services of a
non-capital nature, including police and fire protection, street and road maintenance,
street sweeping, flushing, and snow removal, and sewage collection, and other non-
capital services normally provided within the corporate boundaries; and services of a
capital improvement nature including street and road construction, street lighting, a
sanitary sewer extension, a water distribution system, and a storm water system to be
furnished to the territory to be annexed (2) the method(s) of financing those services; (3)
the plan for the organization and extension of those services; (4) that services of a non-
capital nature will be provided to the annexed area within one (1) year after the effective
date of the annexation, and that they will be provided in a manner equivalent in standard
and scope to similar non-capital services provided to areas within the corporate
boundaries of the City of South Bend, regardless of similar topography, patterns of land
use, and population density; (5) that services of a capital improvement nature will be
provided to the annexed area within three (3) years after the effective date of the
annexation within the same manner as those services are provided to areas within the
corporate boundaries of the City of South Bend regardless of similar topography, patterns
of land use, or population density, and in a manner consistent with federal, state and local
laws, procedures, and planning criteria; and (6) the plan for hiring the employees or other
governmental entities whose jobs will be eliminated by the proposed annexation.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS:
Section I. It is in the best interest of the City of South Bend and the area proposed
to be annexed that the following described real property located in German Township, St.
Joseph County, Indiana be annexed to the City of South Bend:
LEGAL DESCRIPTION:
A PART OF THE NORTHEAST QUARTER OF SECTION 17,
TOWNSHIP 38 NORTH, RANGE 2 EAST, GERMAN TOWNSHIP, ST.
JOSEPH COUNTY, INDIANA, BEING PARTICULARLY DESCRIBED
AS FOLLOWS:
COMMENCING ON THE NORTH-SOUTH CENTERLINE OF SAID
SECTION 17 AT A POINT 1330.1 FEET SOUTH OF THE NORTH
QUARTER CORNER OF SAID SECTION 17; THENCE EAST ALONG
THE NORTH LINE OF PARCEL II AS DESCRIBED IN A
WARRANTY DEED RECORDED UNDER INSTRUMENT NUMBER
0807739 IN THE OFFICE OF RECORDER OF SAID COUNTY, A
DISTANCE OF 1466.7 FEET TO THE POINT OF BEGINNING;
THENCE CONTINUING EAST ALONG SAID NORTH LINE, A
DISTANCE OF 274.00 TO THE EAST LINE OF PARTITION LOT NO.
2 AS SHOWN ON THE PARTITION MAP IN DEED RECORD 56,
PAGE 271 IN THE OFFICE OF SAID RECORDER; THENCE SOUTH,
A DISTANCE OF 253.00 FEET; THENCE WEST, A DISTANCE OF
274.00 FEET; THENCE NORTH, A DISTANCE OF 253.00 FEET TO
THE POINT OF BEGINNING; SAID DESCRIBED PARCEL
CONTAINING 1.59 ACRES MORE OR LESS.
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REGULAR MEETING JUNE 23, 2008
SUBJECT TO EASEMENTS, COVENANTS, RESTRICTIONS AND
RIGHT-OF-WAY OF RECORD.
ALL BEARING AND DIMENSIONS ARE PER SAID RECORDED
INSTRUMENTS REFERENCED HEREIN.
Section II. It shall be and hereby is now declared and established that it is the
policy of the City of South Bend, to furnish to said territory services of a non-capital
nature, such as police and fire protection, street and road maintenance, street sweeping,
flushing, and snow removal, within one (1) year of the effective date of the annexation in
a manner equivalent in standard and scope to services furnished by the City to other areas
of the City regardless of similar topography, patterns of land utilization, and population
density; and to furnish to said territory, services of a capital improvement nature such as
street and road construction, sidewalks, a street light system, a sanitary sewer system, a
water distribution system, a storm water system and drainage plan, within three (3) years
of the effective date of the annexation in the same manner as those services are provided
to areas within the corporate boundaries of the City of South Bend regardless of similar
topography, patterns of land use, or population density.
Section III. The South Bend Common Council shall and does hereby now
establish and adopt the Fiscal Plan, attached hereto as Exhibit “A”, and made a part
hereof, for the furnishing of said services to the territory to be annexed, which provides,
among other things, that with its construction of the proposed roadway, the City of South
Bend will also extend the public sewer network and water main to the annexation area.
Once constructed, any extension of these services for future development of the adjacent
land will be paid by the developer of the adjacent land who will also pay for any street
lighting, parking, sidewalks and similar improvements of the adjacent land including a
drainage plan, all subject to the latest State and City of South Bend standards and
ordinances.
Section IV. This Resolution shall be effective from and of the date of adoption by
the Common Council and approval by the Mayor.
s/Timothy A. Rouse
Member of the Common Council
Councilmember Al “Buddy” Kirsits, Chairperson, Zoning & Annexation Committee,
reported that this committee held a Public Hearing on this bill this afternoon and voted to
send it to the full Council with a favorable recommendation.
Mr. Jeff Vitton, Planner, Division of Community Development, 1200 County-City
Building, South Bend, Indiana, made the presentation for this bill.
Mr. Vitton advised that advised that this annexation is located on the east side of
Mayflower Road approximately a quarter mile south of Adams. This is the first phase of
annexations that will yield an extension of Auten Road. The annexation area will be at
least 1/8 (24%) contiguous to the current City limits upon the completion of the Auten
Connector Annexation Phase One, with contiguous 253 feet at 24% and non contiguous
801 feet at 75% for a total of 1054 feet at 100%. The Annexation area is 1.59 acres in
area and contains one single-family home with one occupant. The existing home is slated
to be removed for the extension of Auten Road by the city of South Bend utilizing TIF
funds. The site if zoned “R” Residential in unincorporated St. Joseph County. Per the
municipal code, the annexation area will be zoned “SF1” Single Family Residential upon
approval of the City Council and incorporation into the City of South Bend. The
st
annexation area will be located in the 1 District. Currently, there is no sanitary sewer on
any boundary of this site. A sanitary sewer plan for his and surrounding areas is under
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REGULAR MEETING JUNE 23, 2008
study, but has not yet been adopted. Sewer services will be constructed and provided
when the road is developed. The South Bend Water Works currently has a 12” water
main on the west side of Mayflower Road that is looped at Brick and Adams Road.
There should be more than adequate capacity for the annexation area. Water services
will be provided to adjacent areas of the roadway when the road is constructed.
Extensions of, or taps into sanitary sewer and water lines shall be governed by Indiana
Code and the rules and regulations of the South Bend Water Works and Sewer Utility.
There are no public improvements in the annexation area. The full array of
improvements will be extended with the proposed roadway for future service to adjacent
areas. Water and sewer services will be constructed with the roadway at an estimated
cost of 1.3 million dollars per lane-mile. The roadway is expected to be a four lane
boulevard and approximately 10, 250 feet long. No waivers of annexation are in effect
for the Annexation Area. The annexation area would be added to the already existing
Beat 22. Police patrols, traffic enforcement, and emergency responses will be part of the
services the city will offer to this area. The propose annexation would require officers to
cover a relatively small additional area to this beat. At this time it is not expected that
this annexation would cause calls for service to increase significantly and it is not
anticipated that it will be necessary to increase police patrols beyond the already existing
beat patrol at this time. The area under consideration is not expected to cause any
unusual problems. Cost for servicing this area would be expected to be absorbed by the
existing budget of the Police Department, as the addition of this area would not be
significant to the point of having to increase any budgetary items. Police services and
response time in this area can be expected to be comparable and consistent with that as in
all other areas of the City. Police coverage to this area could begin immediately upon
annexation and coordination of the conversion of the 911 emergency phone systems for
that area. The City provides a fully staffed, full time fire department. The Annexation
Area will be serviced primarily by Station #11, located at 3505 N. Bendix Road,
approximately 2.7 miles away. Additional Fire Department units would respond from
Fire Station #7 located at 1616 Portage Avenue which is approximately 5.6 miles away
and Fire Station #2 at 430 Martin Luther King Dr. which is approximately 7.0 miles
away. The South Bend Fire Department does not foresee any unusual fire protection
problems related to this annexation. Response times will be comparable to other areas of
the City. No additional equipment will need to be purchased or personnel hired to service
the Annexation Area. Adequate supply will be necessary as development takes place.
The City, under contract with St. Joseph County, provides emergency medical response
to the unincorporated areas of St. Joseph County. Of the seven ambulances currently in
service, 3 are dedicated for response to the unincorporated areas. These are Medic Units
#10, 11, and 12. The Annexation Area is currently being serviced by Medic #11,
stationed at 3505 Bendix Drive. Upon incorporation, the Annexation Area will be
serviced by Medic #4, also located at Fire Station #4, located at 220 N. Olive Street and
Medic #3, located at Fire Station #2, 402 Martin Luther King Drive. Emergency medical
response will continue to be provided by the City of South Bend. Response times will be
comparable to other areas of the City. No additional equipment will need to be purchased
or personnel hired to service the Annexation Area. The Annexation Area will be added
to Area 8 of the Department of Code Enforcement and they will be able to provide
services to the Annexation Area with comparable response times and with no additional
increase in manpower. The Department will respond to calls for service upon the
effective date of the Annexation. Full and dedicated response will be in place within one
year of the effective date of the Annexation. Wastewater treatment services are
supported by user fees, and are paid through the Water Works billing system. Industrial,
commercial and apartment customers are not served by the Bureau of Solid Waste.
White the annexation currently has one residence; the proposed land use will not require
services. As with any new development, the proposed use and development of this site
becomes important relative to its relationship with the existing, surrounding, and planned
uses. City Plan’s Future Land Use Map calls for the creation of the proposed roadway
that this annexation will help make possible. In addition, City Plan calls for the land on
the north and south sides of the proposed roadway – between Mayflower and Portage to
be developed for medium density residential in the futures. As such, this annexation is
consistent with City Plan, South Bend’s comprehensive plan. Mr. Vitton stated that the
roadway will aid in the implementation of the traffic circulation plan for Portage Prairie,
a private 300 million dollar mixed-use development.
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REGULAR MEETING JUNE 23, 2008
A Public Hearing was held on the Resolution at this time.
Mr. Paul Phair, Holladay Corporation, 227 S. Main Street, South Bend, Indiana, spoke in
favor of this bill.
Mr. Phair indicated that this is the second annexation for a parcel for Waggoner Farm
Development LP acquired on Mayflower Road. The final intention of this parcel is to
provide right-of-way for the Auten Road Connector from Portage to Mayflower, which is
several years in the future. He stated that they wanted to provide for responsible traffic
planning in the future.
The following individuals spoke in opposition to the bill:
Mr. Tom Zmyslo, 51042 Prairie View Way, South Bend, Indiana, spoke in opposition to
this bill.
Mr. Zmyslo stated that he is a St. Joseph County resident and a taxpayer, but is tired of
financing projects like this one. He stated that his tax dollars are going to finance
projects that aren’t even developed or even thought of yet. He stated that he owned a
business in the City for years and managed it without any help from the City of South
Bend. Mr. Zmyslo stated that this is a private development so let them finance the
infrastructure too. He stated that tax dollars are short and there is not enough money to
be financing projects like this. He stated that the money needs to be spent in the inner-
city. Mr. Zmyslo stated that Councilmember Dieter stated that the South Bend Police
Department is strapped to provide any additional services as it stands right now. Mr.
Zmyslo urged the Council to vote against this bill.
Ms. Kelly Haves 12032 Timberline Trace North, Granger, Indiana, spoke in opposition to
this bill.
Ms Havens advised that this is an insane time to be spending taxpayer money on a project
that is visionary at best and hopeless in worth. Expanding that area has already proven to
be unsuccessful in Blackthorn and Portage Prairie, and at a time when we all know that
property taxes are going to be capped, and the City is claiming a 15 million dollar
shortfall for next year. The City will obviously be looking to cut programs or to increase
income taxes on all of the citizens in St. Joseph County. It just seems absurd that a new
road project would be started at this time. It is not just that long ago those taxpayers were
fighting the wheel tax even though we knew that City streets and County roads were in
deplorable shape. She stated that taxpayers were afraid that the money would get used
for new roads leading nowhere and that seems what this proposal is at this point and time,
there isn’t any big development waiting on the other side if this proposed road gets put
through. This is just somebody’s dream of something that might happen, if all of the
money is spent now. She reiterated that this is not the time to be financing visionary pie
in the sky projects. This is a time when government should be cutting back even on
things where it hurts to cut back, but certainly you are not going to hurt the citizenry if
the road to nowhere isn’t built and they are never going to miss it. This proposed project
is last thing that the City needs to be passing if trying to be fiscally responsible and good
stewards of taxpayer dollars.
In Rebuttal,
Mr. Vitton noted that the Council is not essentially approving the roadway at this point.
He stated that will be in the future, and Mr. Gilot, Director of Public Works has indicated
that the road will be coming in response to the development at Portage Prairie. This bill
will essentially get the right-of-way at a time that it is relatively inexpensive to purchase,
instead of when the development starts and the land will be more expensive to acquire.
9
REGULAR MEETING JUNE 23, 2008
There being no one else present wishing to speak to the Council either in favor of or in
opposition to this Resolution, Councilmember Dieter made a motion to adopt this
Resolution. Councilmember Puzzello seconded the motion which carried and the
Resolution was adopted by a roll call vote of seven (7) ayes and one (1) nay
(Councilmember Henry Davis.)
REPORTS OF CITY OFFICES
PRESENTATION FROM HISTORIC PRESERVATION ON AN INTERIM
ARCHITECTURAL REPORT ON THE CITY SURVEY
Ms. Catherine Hostetler, Director, Historic Preservation Commission, 125 South
Lafayette, South Bend, Indiana, made the presentation on the interim architectural report
on the City of South Bend.
Ms. Hostetler advised that using monies from the U. S. Department of the Interior,
National Park Service, the Indiana Department of Natural Resources, Division of Historic
Preservation and Archaeology, awarded a grant from the survey of South Bend, and St.
Joseph County (HPC). HPC gratefully acknowledges its local sponsors for their support.
She stated that initial work on the survey began in 2005. As a result of the survey, which
covered 39 square miles, the surveyors entered a total of 6597 sites and structures into the
final inventory. The original inventory forms are on file at the Division of Historic
Preservation and Archaeology (DHPA), 402 W. Washington Street, Room W274,
Indianapolis, Indiana, 46204. Ms. Hostetler noted that this report reflects information
available at a specific point in time. DHPA calls these reports “interim” because it
expects that further research will result in additions and corrections to the inventory. She
noted that any corrections or additional information should be forwarded to the DHPA.
The evaluation and ratings expressed in this interim report represent the opinions of the
surveyors and consultants involved in this survey project. The Indiana Department of
Natural Resources, the Indiana State Review Board and the U.S. Department of the
Interior make final decisions on the eligibility of properties for the Indiana Register of
Historic Sites and Structures and the National Register of Historic Places. Ms. Hostetler
passed out copies of the City of South Bend Historic Sites and Structures Inventory to all
the Councilmember’s and filed one with the City Clerk. She noted that a copy is
available at the St. Joseph County Public Library. She noted that additional copies of this
report may be purchased for $25.00 from the Historic Preservation Commission. She
further noted that the proceeds are reserved for the 2020 Survey and publication.
Mr. Todd Zeiger, Northern Regional Office Director, Historic Landmarks Foundation of
Indiana Administration, 402 W. Washington, South Bend, Indiana, stated that they were
partners in this project along with the Historic Preservation Commission. He noted that
this book is used as a tool for tourism and planning purpose. Mr. Zeiger noted that it was
time to update the St. Joseph County interim architectural report and commending the
Historic Preservation Commission and staff for a job well done.
RESOLVE INTO THE COMMITTEE OF THE WHOLE
At 7:30 p.m. Councilmember Dieter made a motion to resolve into the Committee of the
Whole. Councilmember Oliver Davis seconded the motion which carried by a voice vote
of eight (8) ayes. Councilmember Dieter, Chairperson, Committee of the Whole,
presiding.
Councilmember Dieter explained the procedures to be followed for tonight’s meeting in
accordance with Article 1, Section 2-11 of the South Bend Municipal Code.
Councilmember Dieter stated that a brochure may be found on the railing in the Council
Chambers explaining those procedures.
10
REGULAR MEETING JUNE 23, 2008
PUBLIC HEARINGS
BILL NO. 18-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, ANNEXING
TO AND BRINGING WITHIN THE CITY
LIMITS OF SOUTH BEND, INDIANA,
AND AMENDING THE ZONING
ORDINANCE FOR PROPERTY
LOCATED IN GERMAN TOWNSHIP
CONTIGUOUS THEREWITH;
COUNCLMANIC DISTRICT ONE,
WILLIAM A. GEYER, 52610 PORTAGE
RD., SOUTH BEND, INDIANA
Councilmember Al “Buddy” Kirsits reported that this Committee met this afternoon and
it was the consensus of the Committee to send this bill to the full Council with a
favorable recommendation.
th
Mr. Mark Lyons, Staff Member, Area Plan Commission, 11 Floor County-City
Building, South Bend, Indiana, presented the report from the Area Plan Commission.
Mr. Lyons advised that petitioner is requesting a zone change from R Single Family
District (County) to CB Community Business District (City) to allow
commercial/restaurant uses.
The site is currently vacant land. To the north are businesses zoned CB Community
Business District. To the east are apartment’s zoned MF2 High Density Multifamily
District. To the south are businesses zoned CB Community Business District. To the
west are businesses zoned CB Community Business District. The CB Community
Business District is established to provide a location for high volume and high intensity
commercial uses. Activities in this district are often large space users which may include
limited amounts of outdoor sales or outdoor operations. The site is approximately 0.85
acres. The site plan shows a proposed 4,500 square foot building. Buildings will cover
approximately 12% of site. The proposed development indicated 25 parking spaces.
Parking and drives will consist of approximately 49% of the site. The remaining 39% of
the site will consist of open space. One access point is provided off of Portage Road.
The petitioners are requesting a variance of the rear yard set back form 20’ to 10’. There
have been several rezoning and annexations in the area within the past several years for
both commercial and office type developments. Portage Road has four lanes and widens
to four lanes plus a turn lane at its intersection with Appaloosa. The site will be served
by municipal sewer and water. The rezoning is consistent with the comprehensive plan’s
Future Land Use Map. The site is currently vacant. The area is a mixture of commercial
and multifamily in character. The most desirable use of the property is commercial. The
surrounding property values should not be affected by the rezoning. It is responsible
development and growth to allow infill development in a commercial area. Based on
information available prior to the pubic hearing, the staff recommends that this petitioner
be sent to the Common Council with a favorable recommendation subject to a written
commitment that will provide a 24’ wide ingress & egress easement to connect with the
easement provided on the property to the north. The rezoning is a logical expansion and
in-fill of the existing commercial area. The property, which is currently within St. Joseph
County, is surrounded by the City of South Bend. The rezoning will compliment the
existing land uses in the area.
Mr. Bernard Feeney, Registered Land Surveyor, 715 South Michigan Street, South Bend,
Indiana, made the presentation for this bill on behalf of Mr. William A. Geyer, the owner.
Mr. Feeney advised that this is a petitioner for voluntary annexation and for the zoning of
0.85 acres located in German Township, St. Joseph County, Indiana, and has been field
by 100% of the owners of the land in the territory sought to be annexed. Mr. Feeney
11
REGULAR MEETING JUNE 23, 2008
stated that it is the desire and request that the petition site be rezoned from St. Joseph
County zoning classification: R – Single Family Residential to City of South Bend
zoning classification CB Community Business District to allow for
commercial/restaurant. The restaurant is to be approximately 1,800 square feet and a
retail sales area of approximately 2,700 square feet. Mr. Feeney stated that they will tie
into the easement that Sonic has provided in their plat to the north that is something that
can be handled. That tie in point would be immediately to the northwest of the property,
and can be easily done. Mr. Feeney stated that the owners will provide public sidewalks
as requested.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
Councilmember Dieter asked what business would be going into the site.
Mr. Feeney stated that at this time he did not have names of any businesses or restaurants.
Councilmember Rouse questioned the heavy traffic that has been created by the new
restaurant Sonic.
Mr. Feeney advised that he observed the traffic on a Friday night. Mr. Feeney stated that
it was phenomenon, nothing less than a true phenomenon, on the amount of traffic that
has been created by the new restaurant Sonic. He stated that there were people lined up
and parking across Portage Road to get to the new restaurant. Mr. Feeney stated that
Sonic had the foresight to hire security to address the traffic. He stated that location is
the first to open in St. Joseph County and it is truly a success. The bottom line is that
Sonic has been able to market and fill the apparent need for their food services. Mr.
Feeney stated that he sees this as a potentially a short term situation.
Councilmember Henry Davis questioned whether Portage Road needs to be widened at
that location.
Mr. Feeney stated that at some point the City is going to have to widen that strip of
Portage relatively soon. That particular section of Portage Road is a section that he is
very familiar with and there is little room for anything other than high speed traffic at this
point, going both north and south and only being two lanes is very dangerous.
Councilmember Henry Davis stated that he would not be voting in favor of this bill. He
stated that he was not even familiar with the location of this property. Councilmember
Davis stated that the inner-city needs more places to shop and eat and that resources
should be allocated for those areas. He advised that there are citizens that don’t have the
resources to shop outside of the city and that they should focus on those issues.
Mr. Feeney advised that this particular piece of property is surrounded by parcels that
have been annexed into the city and this piece is the only one left in the county. Mr.
Feeney stated that this is the reason for the annexation/rezoning to bring the final piece of
land into the City of South Bend.
There being no one present wishing to speak either in favor of or in opposition to this bill,
Councilmember White made a motion for favorable recommendation to full Council
concerning this bill. Councilmember Oliver Davis seconded the motion which carried by
a voice vote of seven (7) ayes and one (1) nay (Councilmember Henry Davis.)
12
REGULAR MEETING JUNE 23, 2008
BILL NO. 25-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, ANNEXING
TO AND BRINGING WITHIN THE CITY
LIMITS OF SOUTH BEND, INDIANA,
CERTAIN LAND IN GERMAN
TOWNSHIP, CONTIGUOUS
THEREWITH’; COUNCILMANIC
DISTRICT 1, WAGGONER FARM
DEVELOPMENT, L.P. SECTION 2, 51270
MAYFLOWER ROAD, SOUTH BEND,
INDIANA
Councilmember Al “Buddy” Kirsits reported that this Committee met this afternoon and
it was the consensus of the Committee to send this bill to the full Council with a
favorable recommendation.
Mr. Paul Phair, Holladay Corporation, 227 S. Main Street, South Bend, Indiana, spoke in
favor of this bill.
Mr. Phair advised that this is the second annexation for this parcel which was purchased
by Waggoner Farm Development LP. The intended use is for right of way for the Auten
Road connection from Portage to Mayflower at some point in the future. Mr. Phair
wanted to make it very clear that this annexation in no way commences road
construction. It is not expected for many years in the future which the City can attest to
also.
Councilmember Rouse stated that a lot of the annexation and road structures, things that
the Council is doing right now is to prepare for the future. Many years ago South Bend
had the opportunity to have been in the same position as that of the University Park Mall.
Because of the city’s reluctance to make the investment, annex, and expand, the project
went to Mishawaka. Portage Prairie is a project for the future and it needs to be planned
today. Councilmember Rouse stated that he is proud of this Council and the City of
South Bend being willing to make this kind of commitment necessary to prepare for
growth and development, economically for the well being of the City. He stated that he if
fully aware of the concerns that both the citizens of South Bend and St. Joseph County
have, but history cannot be repeated by missing the opportunity that was a few decades
ago.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak either in favor of or in opposition to this bill,
Councilmember Puzzello made a motion for favorable recommendation to full Council
rd
concerning this bill and set this bill for 3 Reading on July 14, 2008. Councilmember
White seconded the motion which carried by a voice vote of eight (8) ayes.
BILL NO. 38-08 PUBLIC HEARING ON A BILL TO
VACATE THE FOLLOWING
DESCRIBED PROPERTY: THE ALLEY
TO VACATED IS DESCRIBED AS THE
FIRST EAST-WEST ALLEY
APPROXIMATELY 400 FEET+ FROM
THE NORTH LINE OF INDIANA
AVENUE AND THE EAST RIGHT-OF-
WAY LINE OF FRANKLIN STREET,
FOR A DISTANCE OF 165 FEET+ AND A
WIDTH OF APPROXIMATELY 14 FEET.
ST
PART SITUATED IN STULL’S 1
13
REGULAR MEETING JUNE 23, 2008
ADDITION TO THE TOWN OF MYLER
IN THE CITY OF SOUTH BEND, ST.
JOSEPH COUNTY, INDIANA
Councilmember Varner, Chairperson, Public Works and Property Vacation Committee,
reported that this committee met this afternoon on this bill and due to the lack of a
quorum, sends this bill to full Council with no recommendation.
Michael Danch, President, Danch, Harner & Associates, 1643 Commerce Drive, South
Bend, Indiana, made the presentation on this bill on behalf of the City of South Bend.
Mr. Danch advised that the City of South Bend is request the approval of the Vacation of
a 14 foot alley located between Indiana Avenue and Broadway Street on the east side of
Franklin Street. The reason for this request is for the City of South Bend, to develop a
One Lot Minor Subdivision for the Studebaker Redevelopment project. The City and the
Petitioners believe that vacating the above mentioned right-of-way will not have a
detrimental effect on the adjacent properties located along this portion of Franklin Street
and Indiana Avenue. Mr. Danch stated that this will allow for up front planning to take
care of additional right-of-ways that are there presently that need to be removed to create
larger parcels of ground for development. This is the first step in the process to allow for
that development.
Mr. Gary Gilot, Director, Public Works, recommended this bill favorably to the Council.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak either in favor of or in opposition to this bill,
Councilmember Puzzello made a motion for favorable recommendation to full Council
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concerning this bill and set this bill for 3 Reading on July 14, 2008. Councilmember
White seconded the motion which carried by a voice vote of eight (8) ayes.
BILL NO. 26-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA AMENDING
CHAPTER 13, ARTICLE 10 OF THE
SOUTH BEND MUNICIPAL CODE
CONCERNING FIREARMS
Councilmember White made a motion to continue this substitute bill indefinitely.
Councilmember Rouse seconded the motion which carried by a voice vote of eight (8)
ayes.
BILL NO. 33-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF SOUTH BEND,
INDIANA AMENDING CHAPTER 2,
ARTICLE 5 OF THE SOUTH BEND
MUNICIPAL CODE FOR
PREAPPROVED PAYMENT OF CLAIMS
Councilmember Varner made a motion to continue this bill until the July 14, 2008,
meeting of the Council at the request of the Petitioner. Councilmember Puzzello
seconded the motion which carried by a voice vote of eight (8) ayes.
14
REGULAR MEETING JUNE 23, 2008
BILL NO. 39-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA,
APPROPRIATING ADDITIONAL FUNDS
FOR CERTAIN DEPARTMENTAL AND
CITY SERVICES OPERATIONS IN 2008
INCLUDING $500,000 FROM GENERAL
FUND (#101), $100,000 FROM PARKS
AND RECREATION GENERAL FUND
(#201), $500,000 FROM ECONOMIC
DEVELOPMENT INCOME TAX FUND
(#408)
Councilmember Varner, Vice Chairperson, Personnel and Finance Committee, reported
that this committee held a Public Hearing on this bill this afternoon and due to the lack of
a quorum sends this bill to the full Council with no recommendation.
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Catherine Fanello, City Controller, 12 Floor County-City Building, South Bend,
Indiana, made the presentation for this bill.
Ms. Fanello made amendments to this bill. She read into the record the amendments as
follows: In the title and in Section I. The following amounts are hereby appropriated in
the fiscal year 2008 and set apart within the following designated funds for capital
expenses as follows: $370,589 from General Fund #101; $45,000 from Parks and
Recreation General Fund #201 and $305,190 from Economic Development Income Tax
Fund #408. Ms. Fanello stated that the Council passed the City’s 2008 Budget in 2007,
Ordinance No. 9787-07 which included expenditures for various City operations. She
advised that it is now necessary to appropriate additional funds for operational
expenditures necessary for the City’s effect provision of services to its citizens which
were not anticipated at the time the City Budget was adopted.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
Council Attorney Kathleen Cekanski-Farrand recommended that this bill be accepted as a
substitute bill and that the City Controller file that substitute bill with the Office of the
City Clerk on June 24, 2008. Councilmember Varner made a motion to accept the
substitute bill. Councilmember Dieter seconded the motion which carried by a roll call
vote of eight (8) ayes.
There being no one present wishing to speak either in favor of or in opposition to this bill,
Councilmember Oliver Davis made a motion for favorable recommendation to full
Council concerning this bill as substituted. Councilmember Rouse seconded the motion
which carried by a voice vote of eight (8) ayes.
BILL NO. 40-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA,
APPROPRIATING ADDITIONAL FUNDS
FOR CERTAIN CAPITAL
EXPENDITURES IN 2008 INCLUDING
$1,500,000 FROM GENERAL FUND
(#101), $1,000,000 FROM MAJOR
MOVES CONSTRUCTION FUND (#412),
$140,000 FROM LOCAL ROADS AND
STREETS FUND (#251), $300,000 FROM
MOTOR VEHICLE HIGHWAY (#202),
$200,000 FROM WATER WORKS
15
REGULAR MEETING JUNE 23, 2008
CAPITAL (#622), $360,000 FROM
SEWAGE WORKS SINKING FUND
(#649), AND $820,000 FROM SEWAGE
WORKS CAPITAL FUND (#642)
Councilmember Varner, Chairperson, Public Works and Property Vacation Committee,
reported that this committee held a Public Hearing on this bill this afternoon and due to
the lack of a quorum, sends this bill to the full Council with no recommendation.
Councilmember Varner made a motion to accept the substitute version of this bill.
Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight
(8) ayes.
th
Ms. Catherine Fanello, City Controller, 12 Floor County City Building, South Bend,
Indiana, made the presentation for this bill.
Ms. Fanello read the amendments into the record as follows: Change the amounts in the
General Fund #101 to $1,367,508; Waterworks Capital Fund #622 to $177,500; and the
Sewage Works Bond Sinking Fund #649 to $350,438. She stated that it has become
necessary to appropriate additional funds for certain expenditures of a capital nature
which were not previously anticipated and which are necessary in 2008 to continue the
City’s provision of services to citizens.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Varner made a motion for favorable
recommendation to full Council concerning this bill as substituted. Councilmember
Puzzello seconded the motion which carried by a voice vote of eight (8) ayes.
BILL NO. 41-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, AMENDING
ORDINANCE NO. 9801-07 TO CHANGE
THE FUND FROM WHICH FUNDS ARE
TO BE APPROPRIATED FROM THE
MOTOR VEHICLE HIGHWAY FUND
(#202) TO MAJOR MOVES FUND (#412)
Councilmember Varner, Chairperson, Public Works and Property Vacation Committee,
reported that this committee held a Public Hearing on this bill this afternoon and send this
bill to full Council with no recommendation due to the lack of a quorum.
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Catherine Fanello, City Controller, 12 Floor County-City Building, South Bend,
Indiana, made the presentation for this bill.
Ms. Fanello advised that this bill amends Ordinance No. 9801-07, by changing the Fund
out of which the State Road 23 construction project appropriation is to be made. The
correct Fund is Major Moves Fund #412 and not the Motor Vehicle Highway Fund #202.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Puzzello made a motion for favorable
recommendation to full Council concerning this bill. Councilmember Kirsits seconded
the motion which carried by a voice vote of eight (8) ayes.
16
REGULAR MEETING JUNE 23, 2008
BILL NO. 42-08 PUBLIC HEARING ON A SECOND BILL
AMENDING ORDINANCE 9790-07
FIXING MAXIMUM SALARIES AND
WAGES OF APPOINTED OFFICERS
AND NON-BARGAINING EMPLOYEES
OF THE CITY OF SOUTH BEND,
INDIANA, FOR THE CALENDAR YEAR
2008
Councilmember White made a motion to hear the substitute version of this bill.
Councilmember Varner seconded the motion which carried by a voice vote of eight (8)
ayes.
Councilmember Varner, Vice-Chairperson, Personnel & Finance Committee, reported
that this committee held a public hearing on this bill this afternoon and it was the
consensus of the committee to send this substitute bill to the full Council with a favorable
recommendation by clarifying the original version by 1. The position of CED Specialist
VI is not totally eliminated, but rather, reduced by one; and 2. One Project Analyst VI
position (but not all) is reduced from a full-time to a part-time position.
th
Catherine Fanello, City Controller, 12 Floor County-City Building, South Bend, Indiana
made the presentation for this bill.
Ms. Fanello reiterated that the substitute version of this bill clarifies the original version
of the bill by 1. The position of CED Specialist VI is not totally eliminated, but rather,
reduced by one; and 2. One Project Analyst VI position (but not all) is reduced from a
full-time to a part time position. Also the inclusion of a Residential Marketing Specialist
and a Communications Specialist I.
Councilmember Henry Davis questioned how this change would make the department
work any differently.
Ms. Fanello stated that with her discussions with Mr. Jeff Gibney, Director, Economic
Development, that he feels that this position is needed in the department. She stated that
this is being done through a reorganization to be able to sell the City of South Bend. She
stated that Mr. Gibney said this position is needed to really market South Bend and
counter all the sales of homes going outside the City. They would not be selling real
estate but doing their best to let the current residents and future residents know how great
it is to live in the City of South Bend.
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Pamela Meyer, Director, Community Development, 12 Floor County-City Building,
South Bend, Indiana, stated that the new position is not going to be doing what the old
position did. This is an entirely different position, so the position that is being eliminated
those duties would be spread across to other people on staff. She stated that as they have
shut down various programs, there is staff time to handle that. The new position will be
primarily focused on trying to make the City of South Bend a residential choice for
people either currently living outside the City or new people coming into the area and
trying to compliment and build upon all the economic development efforts and new
industries and businesses and the mind project etc. and try to encourage development and
the marketing and bring people into the community.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
Josh Jerton, 51540 Westberry Trail, South Bend, Indiana, spoke in opposition to this bill.
He stated that he does not believe that this position would be required. In order to make
South Bend more attractive, the Council needs to lower the tax base. The tax rate is
atrocious, and bureaucracy is overburdened. There is no real incentive to live in South
Bend. He stated that he is actually looking to move out of the entire County because the
taxes are too high.
17
REGULAR MEETING JUNE 23, 2008
There being no one else present wishing to speak either in favor of or in opposition to this
bill, Councilmember Varner made a motion for favorable recommendation to full Council
concerning this bill as substituted. Councilmember Rouse seconded the motion which
carried by a voice vote of eight (8) ayes.
BILL NO. 37-08 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA APPROVING
A SECOND ADDENDUM TO LEASE
FOR CERTAIN ADDITIONAL PUBLIC
IMPROVEMENTS BETWEEN THE
SOUTH BEND REDEVELOPMENT
AUTHORITY AND THE SOUTH BEND
REDEVELOPMENT COMMISSION
Councilmember Puzzello made a motion to hear the substitute version of this bill.
Councilmember Varner seconded the motion which carried by a voice vote of eight (8)
ayes.
Councilmember Henry Davis, Vice-Chairperson, Community & Economic Development
Committee, reported that this committee held a Public Hearing on this bill this afternoon
and sends it to the full Council with a favorable recommendation.
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Donald Inks, Director, Economic Development, 12 Floor County-City Building, South
Bend, Indiana, made the presentation for this bill.
Mr. Inks advised that this bill is a second addendum to a lease between the
Redevelopment Authority and the Redevelopment Commission and is part of a Bond
process and will be a lease rental revenue bond and it will be issued to fund capital
improvements for Century Center. He noted for the record that substitute Bill 37-08 does
reduce the lease payment from the original bill which was 1.1 Million and then in the
substitute bill it is $600,000 a year on the annual lease payment. That is being funded by
pledge of Hotel-Motel tax revenues, so the funding source that is already in place, should
the Council approve the lease this evening.
Ms. Vivian Salle, President, Century Center Board of Managers, 120 S. St. Joseph St.
South Bend, Indiana, asked for the Council’s approval of this very important bill, because
the Century Center needs some very major and critical repairs and renovations. She
noted that without the Council’s approval Century Center won’t be able to remain
competitive. The Century Center for over 25 years been the central focal point in the
downtown area and they would like to keep it that way. There is going to be a lot of new
development surrounding the Century Center, there is a lot of development that is going
on outside the City, that will continue to be competition, so they really need to have the
dollars to maintain the center to the way in which is should be maintained, so they can
remain competitive in the community.
Kurt Brown, Executive Director, Century Center, 120 S. St. Joseph St., South Bend,
Indiana, stated that two project are currently underway, funded by revenues from the
Hotel-Motel Tax Board. They include replacement of the boilers, the original boilers
were installed in 1976 and they are being replaced by six smaller and much more
efficient boilers. Additionally, they have initiated a project to put a safety film on more
than 1,500 skylights, so the glass will remain in tact in case of a break. Projects that are
included in the bond funds for would include repairs on Island Park, the replacement o of
the fire alarm and security systems, the renovation of seven (7) restrooms, the renovation
of C Hall, the replace of the roofs, site lighting additions, exterior masonry work, and
additional enhancements to the building, grounds and streetscape including, but not
limited to , street level and river level interior and exterior signage, enhancement to the
upper level offices, and enhancement to the front of building and viewing park and
related improvements, and the acquisition of an interest in certain improvements
previously financed with the issuance of the St. Joseph County, Indiana Special Tax
18
REGULAR MEETING JUNE 23, 2008
Bonds of 1992, which were previously refunded with issuance of the St. Joseph County,
Indiana Special tax Bonds of 1998.
Mr. Inks stated that he does not know exactly what those Special Tax Bonds were for, but
those bonds have two to three years of payments left on them, with roughly about
$300,000 a year and have some restrictive covenants in those bonds that would require
paying off those bonds in order to issue the new bonds. So that is part of the bond
financing to pay off those bonds.
Councilmember Varner questioned what is the outstanding balance.
Mr. Inks stated that he believes that the outstanding balance is close to 1 million or 1.2
million dollars.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There was no one present wishing to speak to the Council in favor of this bill.
The following individuals spoke in opposition to the bill:
Kelly Havens, 1293 Timberline Trace N. Granger, Indiana, stated that she is a Granger
resident and if questioned why someone from Granger would speak at a City of South
Bend Council Meeting is because the decisions that are being made at the City level are
getting into her pocketbook. She is not so concerned with developments or repairs that
need to be made at Century Center, as far as she is concerned it is probably a good idea.
What concerns her is the method that is being gone about to get the money. These lease
bond deals are a distortion of what those laws were intended to do. Think about it, are
you leasing the boilers, the skylights, new bathrooms. The City is using a lease deal to
by-pass the debt service limitations that we are constitutionally bound by in the State of
Indiana. The City does this because the debt is so excessive already that it cannot be
done through the normal budget or bond process. She stated that everyone here know the
consequences of continuing to do things this way. St. Joseph County was one of only
two counties in the entire State of Indiana that had to be set aside and exempted from the
property tax controls because the debt is so excessive that they figure there was no way
that the City could every pay their way out of it, if they gave any of the property tax
payers any kind of break. What a miserable distinction to have among all the 92 counties
in Indiana, that St. Joseph County has itself so excessively budgeted that we can’t give
the tax break that the whole rest of the State is going to be mandated to give. The reason
is because of the debt service. As a taxpayer she stated that she finds it very hard to
sympathize with the City’s claims that it can’t possible make ends meet without
additional tax dollars. This is all a shell game to hide the fact that the City is going
farther and farther into debt, when will it all stop, or at least go public, admit that the City
is in debt up to their eyeballs and that is why they tax their residents so high. Ms. Havens
stated that there needs to be some serious prioritizing what the needed improvements are
and asked the Council to stop doing lease purchases, they are phony ways around what
the State wanted to be a protection for taxpayers which is the debt service limit.
Leonard Grummell 1919 S. Carlisle, South Bend, Indiana, stated that when South Bend
banned gun shows at the Century Center they lost several thousands of dollars worth of
revenue. He stated that they could have funded Century Center a long time ago, if they
had not banned gun shows in South Bend.
Aubrey Wood, 1922 Randolph, South Bend, Indiana, stated that she belongs to a ham
radio club. Ms. Wood stated that they used to hold their meetings and conventions at the
Century Center. However, the cost to rent and purchase food and refreshments pushed
them right out of renting Century Center to hold their events. She advised that if they
were to be more realistic with their rent and food, they would have more people holding
their events at Century Center.
19
REGULAR MEETING JUNE 23, 2008
In Rebuttal, Mr. Inks responded to the suggestion that this is a transaction that is contrary
to the concept or thought behind state law. Mr. Inks stated that he believes that is
absolutely incorrect, these are exactly the types of situations the state law contemplates.
State Law prescribes for a Redevelopment Authority to be established in a community
and gives the Redevelopment Authority the ability to issue Lease Rental Revenue Bonds.
It provides under the statute the Redevelopment Commission, the ability to pledge TIF
Revenues for the Redevelopment Authority to accept other pledges of resources for the
repayment of those bonds all for needed capital improvements for the benefit of the City.
So this project is entirely appropriate under State Law, and just fits to a “T” what the
State was envisioning when they enacted these provisions.
There being no one else present wishing to speak either in favor of or in opposition to this
bill, Councilmember Puzzello made a motion for favorable recommendation to full
Council concerning this bill as substituted. Councilmember White seconded the motion
which carried by a voice vote of eight (8) ayes.
RISE AND REPORT
Councilmember Varner made a motion to rise and report to the full Council.
Councilmember Puzzello seconded the motion which carried by a voice vote of eight (8)
ayes.
ATTEST: ATTEST:
_________________________ _________________________
John Voorde, City Clerk Derek D. Dieter, Chairperson
Committee of the Whole
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 8:25 p.m. President
Timothy Rouse presided with eight (8) members present.
BILLS – THIRD READING
ORDINANCE NO. 9847-08 AN ORDINANCE OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, ANNEXING TO AND
BRINGING WITHIN THE CITY LIMITS
OF SOUTH BEND, INDIANA, CERTAIN
LAND IN GERMAN TOWNSHIP,
CONTIGUOUS THEREWITH;
COUNCILMANIC DISTRICT 1,
WAGGONER FARM DEVELOPMENT,
L.P. 51270 MAYFLOWER ROAD,
SOUTH BEND, INDIANA
This bill had third reading. Councilmember Dieter made a motion to pass this bill.
Councilmember Oliver Davis seconded the motion which carried. The bill passed by a
roll call vote of eight (8) ayes.
20
REGULAR MEETING JUNE 23, 2008
ORDINANCE NO. 9848-08 AN ORDINANCE TO VACATE THE
FOLLOWING DESCRIBED PROPERTY:
THE ALLEY TO VACATED IS
DESCRIBED AS THE FIRST EAST-
WEST ALLEY APPROXIMATELY 400
FEET+ FROM THE NORTH LINE OF
INDIANA AVENUE AND THE EAST
RIGHT-OF-WAY LINE OF FRANKLIN
STREET, FOR A DISTANCE OF 165
FEET+ AND A WIDTH OF
APPROXIMATELY 14 FEET. PART
ST
SITUATED IN STULL’S 1 ADDITION
TO THE TOWN OF MYLER IN THE
CITY OF SOUTH BEND, ST. JOSEPH
COUNTY, INDIANA
This bill had third reading. Councilmember Dieter made a motion to pass this bill.
Councilmember Varner seconded the motion which carried. The bill passed by a roll call
vote of eight (8) ayes.
ORDINANCE NO. 9849-08 AN ORDINANCE OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, APPROPRIATING
ADDITIONAL FUNDS FOR CERTAIN
DEPARTMENTAL AND CITY
SERVICES OPERATIONS IN 2008
INCLUDING $370,589 FROM GENERAL
FUND (#101), $45,000 FROM PARKS
AND RECREATION GENERAL FUND
(#201), $305,190 FROM ECONOMIC
DEVELOPMENT INCOME TAX FUND
(#408)
This bill had third reading. Councilmember Oliver Davis made a motion to amend this
bill as in the Committee of the Whole. Councilmember Varner seconded the motion
which carried by a voice vote of eight (8) ayes. Additionally, Councilmember Dieter
made a motion to pass this bill as amended. Councilmember White seconded the motion
which carried. The bill passed by a roll call vote of eight (8) ayes.
ORDINANCE NO. 9850-08 AN ORDINANCE OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, APPROPRIATING
ADDITIONAL FUNDS FOR CERTAIN
CAPITAL EXPENDITURES IN 2008
INCLUDING $1,367,508 FROM
GENERAL FUND (#101), $1,000,000
FROM MAJOR MOVES
CONSTRUCTION FUND (#412), $140,000
FROM LOCAL ROADS AND STREETS
FUND (#251), $300,000 FROM MOTOR
VEHICLE HIGHWAY (#202), $177,500
FROM WATER WORKS CAPITAL
(#622), $350,438 FROM SEWAGE
WORKS SINKING FUND (#649), AND
$820,000 FROM SEWAGE WORKS
CAPITAL FUND (#642)
21
REGULAR MEETING JUNE 23, 2008
This bill had third reading. Councilmember Oliver Davis made a motion to amend this
bill as in the Committee of the Whole. Councilmember Dieter seconded the motion
which carried by a voice vote of eight (8) ayes. Additionally, Councilmember Puzzello
made a motion to pass this bill as amended. Councilmember Henry Davis seconded the
motion which carried. The bill passed by a roll call vote of eight (8) ayes.
ORDINANCE NO. 9851-08 AN ORDINANCE OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING
ORDINANCE NO. 9801-07 TO CHANGE
THE FUND FROM WHICH FUNDS ARE
TO BE APPROPRIATED FROM THE
MOTOR VEHICLE HIGHWAY FUND
(#202) TO MAJOR MOVES FUND (#412)
This bill had third reading. Councilmember Dieter made a motion to pass this bill.
Councilmember Puzzello seconded the motion which carried. The bill passed by a roll
call vote of eight (8) ayes.
ORDINANCE NO. 9852-08 AN ORDINANCE AMENDING
ORDINANCE 9790-07 FIXING
MAXIMUM SALARIES AND WAGES OF
APPOINTED OFFICERS AND NON-
BARGAINING EMPLOYEES OF THE
CITY OF SOUTH BEND, INDIANA, FOR
THE CALENDAR YEAR 2008
This bill had third reading. Councilmember Dieter made a motion to amend this bill as in
the Committee of the Whole. Councilmember Varner seconded the motion which carried
by a voice vote of eight (8) ayes. Additionally, Councilmember Puzzello made a motion
to pass this bill as amended. Councilmember Oliver Davis seconded the motion which
carried. The bill passed by a roll call vote of eight (8) ayes.
ORDINANCE NO. 9853-08 AN ORDINANCE OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA APPROVING A
SECOND ADDENDUM TO LEASE FOR
CERTAIN ADDITIONAL PUBLIC
IMPROVEMENTS BETWEEN THE
SOUTH BEND REDEVELOPMENT
AUTHORITY AND THE SOUTH BEND
REDEVELOPMENT COMMISSION
This bill had third reading. Councilmember Puzzello made a motion to amend this bill as
in the Committee of the Whole. Councilmember Dieter seconded the motion which
carried by a voice vote of eight (8) ayes. Additionally, Councilmember Puzzello made a
motion to pass this bill as amended. Councilmember Dieter seconded the motion which
carried. The bill passed by a roll call vote of eight (8) ayes.
RESOLUTIONS
22
REGULAR MEETING JUNE 23, 2008
RESOLUTION NO. 3878-08 A RESOLUTION OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, APPROVING A
CERTAIN RESOLUTION AND
AMENDMENT TO THE DEVELOPMENT
PLAN FOR THE AIRPORT ECONOMIC
DEVELOPMENT AREA TO BE
ADOPTED BY THE SOUTH BEND
REDEVELOPMENT COMMISSION
WHEREAS, the South Bend Redevelopment Commission (the “Commission”),
the governing body of the South Bend Department of Redevelopment and the
Redevelopment District of the City of South Bend, Indiana, pursuant to Indiana Code 36-
7-14 (the “Act”), on June 25, 2008, will consider for adoption its Resolution No. 2456
(the “Resolution”); a copy of the Resolution is attached hereto and made a part hereof as
Exhibit “A”;
WHEREAS, the Resolution designates that the boundaries of the Airport
Economic Development Area (“Airport Area”) should be further expanded and amended
to include a new area described as Expansion No. 24 (the “Plan Amendment”); and
WHEREAS, the Commission, which is a duly designated and acting official
planning body for the City, on June 25, 2008, will consider for adoption and approval the
Resolution; and
WHEREAS, the Common Council of the City as the municipal legislative body of
the City now desires to approve Expansion Area Number 24 of the Resolution in order to
assist the Commission to proceed with the redevelopment of the area as expanded;
NOW THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
1. Expansion Area Number 24 of the Resolution attached hereto is in all
respects hereby approved, ratified and confirmed.
2. Any Commission determination of the Resolution that the Airport Area is
amended and expanded pursuant to the Act is hereby approved and shall not be limited to
not greater than a thirty (30) year period.
3. First Priority of the Airport Economic Development Area shall remain the
LaSalle Square project for not less than $2.5 Million and Studebaker Corridor project
which included the nanotechnology MIND project.
4. This Expansion Number 24 of the Airport Economic Development Area
shall be in full force and effect from and after its adoption by the Common Council of the
City, approval by the Mayor, and compliance with the procedures require by law.
PASSED AND ADOPTED by the Common Council of the City of South Bend,
Indiana, this 23rd day of June, 2008.
s/Timothy A. Rouse
Member of the Common Council
Councilmember Henry Davis, Vice-Chairperson, Community and Economic
Development Committee, reported that this committee held a Public Hearing on this bill
this afternoon and voted to send it to the full Council with no recommendation due to the
lack of a quorum.
23
REGULAR MEETING JUNE 23, 2008
th
Donald Inks, Director, Economic Development, 12 Floor County-City Building, South
Bend, Indiana, made the presentation for this bill.
Mr. Inks advised that this bill would expand the Airport’s Economic Development Area
to include the balance of the Portage Prairie Development Area that is not already a part
of the Airport Economic Development Area. The total Portage Prairie Development
Area is 450 acres and currently about 120 acres are within the boundaries of the Airport
Economic Development Area, the remaining acreage in excess of 300 acres is still within
the City, but not currently within the TIF area. The issue tonight is really about keeping
important local issues within the control of local decision making. Under House Enrolled
Act 1001, (HB 1001) as of 7-1-08, the City will no longer be able to make a decision like
the one before the Council tonight at the local level. Under HB 1001, a local finding in
order to expand the boundaries of a development area, and that finding that the resources
of the area are not sufficient to meet the obligations of the area. The Airport Economic
Development Area has a fairly healthy TIF Area in terms of revenues and even with
losses that are anticipated by the circuit breaker, and don’t have a definitive number on
those revenues, but even guessing high and taking into consideration the outstanding
indebtedness of the Airport Area, he does not believe that they would be able to make
that finding locally that the Airport could not meet it’s obligations. There should be more
than sufficient funds to make all the debt service payments. Under those conditions, the
legislation that would take effect July 1, 2008 would take that decision out of the local
hands then and put into the hands of the Indiana Economic Development Commission.
He believes that it is an important Local Decision that ought to be kept at the local level.
By including Portage Prairie, it keeps that option at the local level. If not, it may be
found to be precluded from making certain investments in the Portage Prairie area,
investments that may be made for the betterment of South Bend. This Resolution does
not talk about financing, it only talks about expanding the boundaries, and so there is no
commitment here to provide funding for Portage Prairie, but it does leave that door open
should the local community decide if that is what is appropriate. Portage Prairie is a 450
acre, 380 million dollar mixed use development, all 450 acres have been voluntarily
annexed into the City, and prior to the change in State Law, were already approaching
this project on a case by case basis as new projects came in for development in the
Portage Prairie area, they would have looked at possibly expanding the TIF area to take
those into account. Under the new State Law, the local level will no longer have that
option to look at it over time. Mr. Inks stated that at this afternoon’s committee meeting,
many Councilmember’s expressed concerns primarily about LaSalle Square and the
Studebaker Corridor and whether those would remain as funding priorities for the City of
South Bend. Mr. Inks stated that he is here tonight to state that those will remain the
main priorities, LaSalle Square, Studebaker Corridor, including the nano-technology
efforts and Mind Project.
Mr. Paul Phair, Holladay Properties, 227 S. Main Street, South Bend, Indiana, advised
that Portage Prairie is a 450 acre project and ranges in uses from retail to light industrial
to everything in between. It has significant investment opportunities for the City and has
huge financial implications. The overall project is 378 million dollars in private
investment and that is just a number for vertical development that does not go into the
personal property investment, once the developments locate into the park. Mr. Phair
noted that they anticipate 3,800 to 4,400 jobs at full build out, and expect 6.8 million
dollars in real estate taxes. County income tax is projected at 1.1 million dollars, hotel-
motel taxes at 415,000 and state income taxes at 5.3 million and sales taxes at 14 million
at full build out. Mr. Phair stated that it is a long build out at 15 years, but everything
that is worth waiting for takes time. He understands that it is difficult to visualize but the
benefits of this development will be worth waiting for.
Mr. Frank Perri, Holladay Properties, 227 S. Main Street, South Bend, Indiana, advised
that Holladay Properties was founded in 1952 in Washington D.C., the Midwest
headquarters is located in Downtown South Bend and it is a bit of anomaly today because
they have larger developments than what they have in St. Joseph County, in Marion
County and soon in Porter County. The reason for stating this is because Holladay
currently has five planned mixed use developments, including Portage Prairie, that have
different ages and acreage. In Indianapolis there are 1,500 acres on the Southwest side
24
REGULAR MEETING JUNE 23, 2008
by the airport that was start approximately twelve (12) years ago. Merrillville, Indiana,
has only been in existence for about three years. This is a joint venture with Purdue
University, 30% built out, 70% remaining. This is a 400 acre development and so far the
jobs are over 250, 450,000 square and about 75 million dollar venture. At Portage
Prairie, the Huron Building was built about a one (1) year ago, it is full, it didn’t generate
a lot of jobs, and most of those jobs were in distribution. Mr. Perri noted that the
building was built for distribution, so that should not surprise anyone. It is a building that
does well in the market here in northern Indiana, and they still pay taxes. The taxes are
expected at that built out to pay for any of the infrastructure that the City has invested.
That is roughly 1.6 million to date. Holladay has over 3.5 million dollars invested in
Portage Prairie, and are just beginning. This is a catalyst kind of development and what
is being talked about tonight has a lot to do with that catalyst. Bridgemont, Indiana, New
Albany Indiana, which could technically be called a suburb of Louisville, Kentucky, they
are just going into that venture again with Purdue University as an investor with
Holladay. They are going to put up hotels and other developments in those ventures. Mr.
Perri noted that they have a research park project going in there now. He stated that these
developments all follow a pattern and although you can call them speculative and
investment is speculative to a large degree, you can cover your bets by doing good
planning in good investments. Mr. Perri advised that Holladay Properties has a history
and they know their markets, desires and their roll in this development. He stated that
Holladay’s role is to get out and market this development. Mr. Perri stated that they have
marketed Portage Prairie very well, so well that they are not ready to supply the entire
development scenario because they haven’t completed all the infrastructure and they
haven’t got the traffic flowing just yet. Mr. Perri promised that just as in all the other
projects, the investment that are made whether you call them speculative or not, because
a lot of the development is built to suit, which come about in speculative investing, just
like the type that the Huron is, they look at them as a covered bet, as something that they
think will happen, and that is why they invest in it. He stated that there are not a lot of
financing options available to municipalities today, because TIF is what has been used in
every one of these markets. The other municipalities agree that it has paid off so far, and
that is what is being asked tonight. To include it in the Airport TIF, and in time the
results will be seen. The foundation that will be laid today and tomorrow is going to
benefit for many years to come. Mr. Perri noted that all investments are not equal, and
sometimes you don’t have to make those major investments. They are not asking for a
dollar amount today, just enabling legislation to get to the point of being able to say to a
corporation, to a business, that South Bend can deliver. If you can’t say that then the
development that is just 50 minutes west of South Bend will get the nod in the kinds of
developments that might come this way. Mr. Perri stated that he is speaking on behalf of
everyone at Holladay and being that they are employed here even though they travel a lot
out of the area, they want this to be the place that benefits from their development
expertise. Mr. Perri urged the Council to vote affirmatively to night to add it to the
AEDA area and give it the Tax Increment Financing ability so that this development can
be built out and get the taxes generated.
th
Mayor Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd. South Bend,
Indiana, asked the Council to support the expansion of the AEDA to include the Portage
Prairie area. He reflected on as everyone is very narrowly focused right now looking at
Portage Prairie, it tends to make everyone forget that development is happening all over
the city. The City is actively developing the Studebaker Corridor and Eddy Street
Commons, the East Bank, and looking to drive that development all over the City. He
stated that he wanted to make very clear on the record tonight that the City’s priorities for
use of AEDA TIF dollars are first and foremost at LaSalle Square, Studebaker Corridor,
including the mind project and then additional as needed. He stated that he has heard that
message loud and clear from the Council and wanted to go on record stating that he has
no objection to that being included in part of the Resolution tonight as this moves
forward. Secondly, he stated that as they think about Holladay’s planned development
here and the success that they have had in other areas, he reminded the Council of the
investments that Holladay has made in the City of South Bend. Years ago, when it was a
big risk, Holladay built One Michiana Square in downtown South Bend, at a time when
not much else was happening. Holladay has rehabbed existing buildings in downtown
South Bend; Holladay has built apartments and condominiums in South Bend. They have
25
REGULAR MEETING JUNE 23, 2008
been a great partner; they have been a partner in the planning of East Bank Village.
Holladay’s investment is not just in Portage Prairie, but really again across the City of
South Bend. Mayor Luecke stated that one of the questions that was raised by the
Council this afternoon was that of the longevity of the TIF district. The Airport
Economic Development Area was created before there were any time limitations were
placed on TIF districts. House Bill 1001 is a complex bill, and to be honest he has had
varying advice on what that means for those grandfathered older TIF districts. He stated
that he has had legal advice which has said that they believe those districts will now be
subject to a time limitation, as all new districts would be. Mayor Luecke stated that he
has had discussion with the Indiana Associations of Cities and Towns staff that they
believe that the grandfathering continues. He stated that he cannot give a specific answer
to that question tonight. But understanding that the time limitation issue is a concern for
the Council, they would certainly commit themselves to working together to place a time
limitation on this expanded TIF area, if that is the Council’s desire as this moves forward.
He stated that he can’t tell what the vehicle will be to be able to do that right now, but he
hears and understands that concern being raised and looked to be able to address that.
But the time is right to expand into the Portage Prairie area now, a portion of the Portage
Prairie area is already included within the Airport Economic Development Area which
allowed the City to create Dillon Drive opening up 100 acres for new investment and new
jobs in this community. He believes by including the rest of the area, it will provide the
City the opportunity in conjunction with development; they will not be willy nilly in
making infrastructure investments without real development ready to happen. In
conjunction with development it will be then that the City will be able to make some of
the infrastructure necessary to help this area reach its full potential and generate
additional tax dollars that can be used throughout the entire airport development area
including LaSalle Square and the Studebaker area. He urged the Council’s full support of
this resolution.
Mr. Inks advised to the Council that if there is any suggestions to improve the language
in the resolution that would be most welcome, but suggested that in between items #2 and
#3 that a new #3 be inserted to read: First priorities for the AEDA TIF funding remain
LaSalle Square and Studebaker Corridor, including the nano-technology mind project.
And renumber #3 to #4. Mr. Inks also stated that for internal working purposes there is 2
million dollars that is allocated this year and $500,000 allocated next year, and if the
Council wants to put 2.5 million dollars for LaSalle Square that could be done.
Mayor Luecke stated that they don’t have a specific commitment made to the Studebaker
Corridor at this point. They have had discussions with the NRI, the State and the
University of Notre Dame, and talked about levels and types of investment. He stated
that he doesn’t believe that they have a number that they would want to insert into the bill
at this particular point. In particular, he doesn’t want to be in the position of saying that
they have to spend every last dollar here, before we can spend something else there. The
planning process is something that is generally such that there will be needs in several
places during a period of time, and that they would allocate dollars, some to Studebaker,
and certainly the 2.5 million that they are committing to LaSalle Square. But potentially
if the need arises for some infrastructure in Portage Prairie at that time, that makes sense
because it is going to open up new development and bring new jobs and opportunities
there. He would prefer to not put any dollar amount for the Studebaker Corridor, but
know that it is a key priority for this administration and can appreciate the Council’s
support in this regard.
Councilmember Oliver Davis questioned why this development could not be in its own
TIF district.
Mayor Luecke stated that they could have established a separate TIF for Portage Prairie,
and chose not to when the area was first annexed into the City for a number of reasons.
First, a new TIF doesn’t have any income to be able to invest in infrastructure or to be
able to commit to bonding to pay for infrastructure. So to be part of an existing TIF that
has a revenue stream that allows a jump start that area, it is an easier investment and a
bond issue that is more likely to be sold in the bond market. So that is really the primary
reason that it is more a matter of planning and convenience and the ability to move
26
REGULAR MEETING JUNE 23, 2008
quickly to be able to respond to needs as they come up rather than to be forced into
looking at two or three years down the road when that revenue could be generated.
Councilmember Varner stated that he would like to see a separate TIF District created for
this project.
Mr. Inks stated that he had one technical item to clear up that instead of 30 years, it
should read not greater than 30 years. He stated that he believes that current state
legislation limits new areas to 25 years, so any expansion would be limited to 25 years.
A Public Hearing was held on the Resolution at this time.
Ms. Kelly Havens stood up from her seat and questioned whether this Resolution was
properly advertised.
Kathleen Cekanski-Farrand, Council Attorney, asked Ms. Havens that if she has any
further questions or comments that she do so from the podium. She stated that one of the
attachments that the Council is looking at states that there was proper advertisement for
the public hearing that would take place before the Redevelopment Commission on June
25, 2008. The City Council did not have to do any special publication as is set forth on
the separate page of the Resolution and is one of the attachments. They have gone
through the normal procedures when a Resolution is filed.
Ms. Havens asked if it was the legal opinion that the City Council can vote to expand a
TIF district without legally advertising a public hearing.
Ms. Cekanski-Farrand stated that the process that has taken place to date is correct. She
reiterated that the Redevelopment Commission as sited in their exhibit, states that there
were two publications in the Tri-County News and also the South Bend Tribune that took
place on June 13, 2008 with regard to public hearing that they will be holding on June 25,
2008.
Ms. Havens stated that it is her understanding that final approval is not in the hands of the
Redevelopment Commission but in the hands of this Council. She stated that if they are
going to do final approval tonight prior to the holding of the public hearing, don’t you
think that is in fact going to be an illegal vote.
Ms. Cekanski-Farrand stated no, again all of the documents that are referenced in the
Resolution before the Council looks to be in order with regard to the legal advertising.
Ms. Havens stated that the final analysis the vote that would be held tonight would be
prior to a public hearing. She reminded the Council that in the past when a Council has
held a vote without proper legal notice of a public hearing, it has in fact had to declare
that vote null and void after considerable expense and that there are same parties that do
intend to legally challenge any votes so taken without a legal.
Ms. Cekanski-Farrand stated that President Rouse will be calling upon those to speak in
favor and to speak in opposition. She noted that there are several individuals who wish to
speak on both sides present tonight.
Ms. Havens stated as long as the Council is aware that a hearing held without proper
legal notification can be subsequently be declared null and void and so can any vote
taken based upon it.
The following individuals spoke in favor of this bill.
Mr. Don Scheffmeyer, 300 S. St. Louis Blvd., South Bend, Indiana, advised that this is a
rare occasion for him to be in favor. He stated that he usually is in opposition of anything
that the City is planning to do. As an owner of commercial property in South Bend and
an admirer of Holladay and what they have and are trying to do for South Bend at
Portage Prairie, he reminded the Council that if the folks over in Mishawaka had taken
27
REGULAR MEETING JUNE 23, 2008
such a narrow view of Tax Incremental Financing, as what has been said this evening,
there would not be the kind of development in Mishawaka that they have. He stated that
City is looking at a serious cash crunch with respect to real estate taxes in St. Joseph
County, and are one of two counties that are exempted from the caps that were enacted.
As a commercial owner, he understands what that has done to his taxes on his properties;
they have gone up 150 % in one case and 135 % in another case, in just one year. This is
a very serious problem, an immediate problem and a problem that we all have to face. In
particular in St. Joseph County, many of the other counties don’t have this problem.
What has to be done is create more tax base. Portage Prairie is an ideal area to create that
tax base. The prioritizing of LaSalle Square and the Studebaker Corridor are going to
remain in tact. He urged the Council to act as statesmen tonight and look to the future
because unless we start importing actual commercial properties that pay property taxes in
this area and only continue to import non-profits in this area, the City if going to be out of
tax revenues. He noted that the Council needs to look to the future and give credence to
the fact that it is impossible to develop this project and the scope of this project without
and interchange on the by-pass which is a very expensive proposition. He stated that he
hates to keep using Mishawaka as an example, but everyone can see what they have done
out there with the use of TIF funds.
Mr. Jerry Niezgodski, 2910 Bonds Avenue, South Bend, stated that he can’t believe that
he is here tonight to speak in favor of this bill. He stated that he is probably going to
make a few people angry, but he has done a lot of sole searching about this. He stated
that LaSalle Square is in the heart of his neighborhood and is very concerned about future
funding. But the more he thought about this, he kept thinking about the future. He is
concerned about LaSalle Square and is very thankful that the language is being added to
commit to LaSalle Square. This is an investment, and this area needs to be invested in.
He noted that he is usually a proponent to any development outside of the inner-city. Mr.
Niezgodski stated that he is looking into the future and does not want South Bend to miss
an opportunity for future growth and expansion, because development will just go
somewhere else. He stated that a lot of communities are doing the same thing and
moving quickly because of House Bill 1001 and if you think long term this is a good
investment. He noted that he is concerned with some of the revenue; perhaps in the
future if legally possible after this development is built out it could be its own TIF
District. He doesn’t want this project to stop and sacrifice a future that is out there and
the future revenue stream that will come with the development. Mr. Niezgodski stated
that he doesn’t want to see South Bend lose out on this opportunity and have the
development go to Mishawaka or to Portage, Indiana. He urged the Council to vote in
favor of this Resolution.
The following individuals spoke in opposition:
Ms. Linda Wolfson, 809 Park Avenue, South Bend, Indiana, stated that she has worked
with a lot of people who are very dedicated to building a vibrant community in South
Bend. These people are visionaries; they are not stuck in the present and are looking to
the future, but have very legitimate concerns and questions about the particular action
that is being considered tonight. That action is the use of Tax Increment Financing in this
situation. In the past she has applauded some views and positions that have been taken,
especially when the Airport Economic Development TIF was expanded to include some
areas of the city that had been neglected. She stated that was a very righteous decision, a
correct decision. There was a source of revenues available that could be used to build the
infrastructure that would attract the kind of economic development that is needed in areas
of the city where people have access to jobs, the people that need the jobs could get the
jobs. That is only beginning and is absolutely laudable that the Council has changed the
proposal as to protect that particular use of the revenue. However, this particular use of
tax increment financing does not come without a price, the price is revenue streams that
are attached, limited, that could only be used for infrastructure. Even if there are little
things done to expand, they are basically to be used for infrastructure, a kind of
development as complex as being described will take a tremendous number public safety
individuals. TIF funding cannot be used for public safety individuals. The stations can
be built, you might be able to buy a fire truck, but you cannot pay the fireman or the
policeman. There is already a situation where libraries are closed on the weekend that is
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not civilized. That does not belong in a civilized society, especially in an electronic
world where people are dependent on those public libraries to apply for jobs and any
number of other things. The computers that are available at the library are used by poor
people who don’t have computers or computer access in their homes. That’s criminal,
that’s not civilized. South Bend has public schools that are suffering, this is keeping the
city from becoming all that it can become. She stated that residents wants to be forward
looking and want new development in many places in the city. TIF money should not be
used for that, because the new tax base that results from that is not available to the city as
whole for too long of a time.
Ms. Kelly Havens, 12032 Timberline Trace North, Granger, Indiana, stated that a TIF
district is based on the assumption that you are dealing with a blighted area. She would
argue that a lot of green space on the west side of the city is not blighted. She stated that
everyone has already been informed that the State has declared that if your TIF district is
already healthy funded and able to fund itself, you don’t need to be expanding it, without
going through and extensive process after July 1, 2008. If they think that process is
important to preventing actions that don’t make economic sense why does it make sense
to scurry in and take that action before there is any time to really review whether it makes
any sense? TIF’s remove money that would otherwise reduce the tax burden for all the
rest of the taxpayers. If new companies do move in, instead of all of their new taxes that
they start paying going to help the school corporation, going to help the libraries, going to
help the city and going to help the county, general government, all the rest of taxpayers
have to make up whatever money their not putting into the coffers. That money just gets
set aside for use for infrastructure and there are only a certain number of streets and
fountains, trees, and lights that can be put in. How much sense does it make to have a pot
that is currently sitting 27 million dollars for doing more fountains, more landscaping,
more fancy lampposts, when you’ve got a school corporation that desperately needs
money, and a county that is worried about keeping all of it’s police officers, and a city
that is concerned about it’s parks, and libraries that can’t stay open as the previous
speaker mentioned. Why does it make sense to keep pooling the money for use on
infrastructure in that area and ask all of the taxpayers outside of that area to instead come
up with all of those millions of dollars to go ahead and take care of the schools, etc? Of
course everyone wants to see growth, but why would the taxpayers be excited when they
see a new business going in, if we know that their tax dollars are never going to help
everyone else. The taxpayers will have to keep providing the money that they would
have been providing if they hadn’t been TIF’ed, but because they are TIF’ed there money
is just all going into a special little pot and it isn’t just that the taxpayer’s aren’t going to
get their money it’s were going to be pouring money into them, just as the previous
speaker mentioned, they are going to have fire, police, emergency services needs and that
is going to come from the taxpayers. So the taxpayers are not just going to lose what
they would have brought to the community, but the taxpayers are paying to have them
come here. It’s a double burden on taxpayers at a time when the last thing wanted is to
create higher taxes in St. Joseph County. Finally, for what ever reason, TIF’s have not
been working on the west side. Blackthorn after all of these years is pretty much
regarded as a failure. Buildings moved in a few of them, and then once abatement’s ran
out them moved into the new phase, to get new abatement’s and once those ran out then
they left. Portage Prairie has been around how many years now, and it has one building,
and the taxpayers are supposed to be enthused. That building didn’t create any jobs, or so
few that they were not worth mentioning apparently. Everyone looks at University Park
Mall and says why not here? She stated that everyone needs to seriously ask themselves
how many University Park Malls can any area reasonably sustain. She argued that boat
has already been floated, that has already happened. You cannot do that again, in an
economy that is based on service, without manufacturing to sustain it, we are all going to
sell stuff to each other, and ultimately, the area cannot thrive as an economic community
if only service centers are created. There is a reason why the State put the skids on this
kind of speculation, and the Council should seriously consider at least giving the
additional couple of weeks that it would take to sort through all of this, instead of jump
the gun and bypass the wisdom of the State.
Ms. Marilyn Gashaw, 2514 W. Kenwood, South Bend, Indiana, stated that she is
speaking on behalf of herself tonight. She stated that she grew up in South Bend,
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REGULAR MEETING JUNE 23, 2008
however, spent much of her adult life in Indianapolis. To compare South Bend to
Indianapolis is like comparing apples to oranges. Indianapolis can generate a TIF district
much quicker that here in South Bend. She stated that she doesn’t understand the great
rush, because if this is a good business plan, as the Holladay Corp. has expressed, then
down state would view it as a good business plan. As far as the jobs are concerned, if
you don’t have transportation to get employees to service type jobs, then what good is it
to bring those jobs to the City. Ms. Gashaw stated that coming from a place where she
had choices to live, suburbia or inner-city; she chose the inner-city and did that as a
matter of choice. She would like to have that choice in South Bend, but there is not much
of an inner-city to want to live in, because South Bend doesn’t even have brightly colored
cross walks here, nothing that is enticing a person to want to move to the inner-city. She
stated that South Bend needs to re-focus some of the funds to the inner-city. She stated
that she doesn’t totally oppose this project; however, she would like more information,
like how many TIF dollars are really being talked about spending. What are the short
term goals, there is just more information that needs to be put out for the public to hear.
Ms. Gashaw urged the Council not to make a decision tonight.
Ms. Kathy Biaschke, 24440 Adams, South Bend, Indiana, stated that she hopes that what
she has to say is not taken a redirect. She stated that she listened to the expectations and
the projections and the ideas of Holladay properties and how the taxpayers are supposed
to have good faith in their actions. But from what she has seen, she has one son that has
been living in Indianapolis for four (4) years and her older son lives in Chicago and has
lived there for a number of years, and she has seen first had the types of development that
has happened at the Holladay Corp. property in Indianapolis. She has a hard time having
good faith in a corporation that doesn’t outright own the land and the taxpayers are
expected to have 450 acres of land that the taxpayers are going to have to put their
investment in, but yet they have not invested in the sale of the purchase of that property.
She noted that they do not own that property, and they are not property tax payers of that
property. The original owners remain to pay the taxes, and she remains to be a property
taxpayer since she graduated from LaSalle High School in 1971 and has been paying
property taxes. She stated that she doesn’t want to be overburden to pay her share. She
feels that everyone should pay their fair share and that’s the way it should be. Holladay
Properties expectations of getting off the hook to provide some of the things that they
need to get money back on their investment cannot be put on the taxpayers to help pave
their way. 27 million dollars, 450 acres, how much of that is going to be down the drain
and bleed off for that particular operation. The promises that have been said are not
concrete promises as to shore up the badly needed situation at LaSalle Square, the
Studebaker Corridor. She stated that on her way here tonight to the meeting, she drove
down Bendix Drive, because she cannot afford to waste a whole lot of time, listening to
issue that she cannot change, because she has a lot of neighbors that say, the Council is
going to do what they want to do. She stated that when she drove down Bendix Drive
and saw all the empty buildings along Voorde Dr., one of those buildings moved from
that location and moved out into one of the tax exempt areas. She stated that she has a
hard time understanding how many more times can the Council tax exempt these kinds of
situations and expect the taxpayers to pay for the services that this kind a development
will use. To bleed out taxpayer’s money for some special interest cause, just because
they did some good things in Portage, Indiana and have gotten good results there, South
Bend is a totally different area; it’s not comparing apples to apples, its apples to oranges.
She stated that four (4) years ago she went to Indianapolis and took photographs of the
Holladay project and brought them back for the Council to see the abuses of
environmental situations fell on deaf ears. She intends to go back to Indianapolis and
report back what has happened in the last four (4) years since she recorded those abuses
of the environment within that Holladay Property project. She stated that she envisions
Portage Prairie to be more distribution centers, particularly with 10 million dollars being
spent on Auten Road to make sure that semi’s have access to that area and then talking
about spending more millions to have an interchange which on Brick Road and one just a
few miles north over the State line, she fails to understand why tax dollars would or could
be approved for that kind of expenditure. The State would frown on tax payer’s money
being spent on this type of project. You cannot put the cart before the horse when it
comes to enticing industry into an area; you have to spend money to make money. She
stated that she cannot see the citizenry of South Bend and St. Joseph County being able to
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afford to pay that up front and take it out of the TIF dollars that are so hard earned, just
like her dollars are hard earned, the TIF dollars are hard earned dollars. She asked the
Council to amend the bill to omit Portage Prairie, because the other areas listed such as
the LaSalle Square Shopping Center, the Studebaker Corridor are much more important.
She urged the Council to vote against Bill No. 08-58.
Mr. Tom Zmyslo, 51042 Prairie View Way, South Bend, Indiana, stated that he is having
a hard time visualizing how this is being handled tonight. He stated that the Council
stated that this bill has been property advertised; he stated that he saw a properly
advertised ad for the Redevelopment Commission hearing next Wednesday, June 25,
2008. He stated that the neighborhood association was notified by letter from the
Redevelopment office, and that was very nice, but a lot of good that will do if the Council
votes on it tonight. He cannot imagine this being handle this way, and cannot having no
public input, and most of all no news media being here tonight to cover some like this.
Mr. Zmyslo thanked Jamie Loo from the South Bend Tribune, who was in attendance at
the meeting and asked her to make sure that the public knows what is happening tonight.
He stated that the general public doesn’t even now what TIF stands for. He stated that he
talked with some people the other day and they couldn’t imagine that their tax dollars that
could be going to the badly needed schools, libraries, police & fire protection are instead
going to some developer that is speculating on a development project. Those people
were in awe of the idea and there would have been a lot more people here tonight if this
wouldn’t have happened this way. He stated that he did not even know this was going to
happen. So, people at the last minute could not show up, he stated that he had to
hurriedly come down this evening to be in attendance at this meeting. Mr. Zmyslo stated
that he is here tonight as a St. Joseph County taxpayer and a member of the German Twp.
Neighborhood Association, and urged the Council not vote in favor of expanding the
Airport TIF area to the Portage Prairie project. He stated that during the winter he
attended a panel hearing at IUSB, where he witnessed the panel warning the local public
officials on how they use TIF monies and what problems they cause. He stated that is
why the State passed HB 1001 to stop the abuse of those TIF areas. Mr. Zmyslo stated
that taxpayers are sick and tired of paying high taxes and cannot afford to live here
anymore; they cannot afford to pay their tax bills. He stated that the City keeps putting
the burden of big time developers on the back of the taxpayers. Mr. Zmyslo stated that
this has got to end sooner or later and some how it’s got to end. He stated that he was
and still is a small businessman and afforded to start his business without any funds from
anybody, he was successfully. He stated that if this project is successful, it will still have
merits after July 1, 2008 according to the State. Let it go through the process that the
State issued and let them decide, let it go through the proper procedure. He stated that he
sees no hurry. Because of HB 1001, it does create more restrictions on TIF areas, and to
try to beat the deadline is wrong. If this expansion has merit’s it will be granted anyway.
There are four (4) reasons that there are high taxes in St. Joseph County. 1) Spend too
much 2) Too many non-for-profit’s 3) Too many tax abatements 4) Too many TIF areas.
He stated that there is 27 million dollars in the Airport TIF area sitting there which is
probably a drop in the bucket because the City spends money like it is going out of style.
St. Joseph County has had the highest tax rate next to Lake County. He stated that he
cannot imagine being compared to Lake County, and is appalled by that. Thanks to the
great leaders here in St. Joseph County the taxpayers here got exempted from a lower
property tax so we could pay for projects like this. Mr. Zmyslo reminded the Council
that high tax rates drive people away, businesses and residential. He stated that from
what he is hearing tonight a lot of those residential homeowners and business owners are
going to be leaving.
In Rebuttal, Mayor Luecke stated that he would like to correct a number of misstatements
from this evening. First it was mentioned that we have been exempted from lower
property taxes. The property tax payers in St. Joseph County will still receive the benefit
of the tax caps: 1½ % for homeowners next year, 1% the year after. There will be a small
additional amount on top of that because of the taxes that go to pay bond issues in St.
Joseph County. The property taxpayers will receive significant benefit from not only the
caps but for homeowners also from the additional exemption that are part of HB 1001.
Secondly, Blackthorn is a failure. He reminded everyone that there is over ½ billion
dollars in private investment in the Blackthorn area, 3,000 new jobs, 7,000 jobs retained
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REGULAR MEETING JUNE 23, 2008
in this community, that not how he defines failure. Certainly, there is more room yet to
expand and grow and look for additional private investment and additional new jobs in
that area as they move forward. He stated that they will continue to do that, the benefits
are that the new property taxes are captures within the TIF area to allow the City to invest
in infrastructure. If they did not have that revenue stream then they would have to be
taking money from the general fund from other operations of the city to be able to put
infrastructure in place to support business growth and development. Those are dollars
that they don’t have. TIF’s were created to spur jobs and economic development in the
community and have been very successful all across the state. Thirdly, the City is on the
cusp of a change because of HB 1001, so there are old paradigms and new paradigms.
Under the old paradigm it is accurate to say that the dollars collected in the TIF district
cause other peoples property taxes to be a little higher to support the general services of
government. Because of the property tax caps that are coming into place now, that is
really not the case anymore. Mayor Luecke stated that he agrees and supports the
opportunity to use some of these dollars to help to pay for Police and Fire provision of
services to those areas. This is not currently allowable under state law. He would be
glad to work with the Council to see if that could be an option that could become
available to the City. Also there was the suggestion that the few businesses that located
in Blackthorn once they get there tax abatements they leave the community. Mayor
Luecke stated that there have been a couple of businesses that have failed or been bought
by another company that have left. But for the most part, in fact, the businesses that have
received tax abatements have stayed and continued to support jobs in the community.
Those jobs, in addition to the investment in the buildings that create property taxes, those
jobs create local income taxes that go to support South Bend and St. Joseph County as
well. So, they are looking to try to spur development and believe that there is a great
opportunity for that to happen in the Portage Prairie area. Mayor Luecke stated that he
appreciated the investment that Mr. Zmyslo made in the City of South Bend, but
somebody did put that street in place in front of your business prior to your business
being there. Cities do invest in infrastructure that supports business and TIF districts are
one of the ways that they are allowed to do that. He urged the Council’s favorable action
on this bill tonight.
Mr. Perri stated that Holladay has been the benefactor of a lot of tax abatements, but to
this day, they have all most burned off at this point. Last year, they paid 1.5 million
dollars in property taxes. He stated that they are not here for a free lunch; they are here to
do what they need to do. This is the success of TIF’s working and because of the Airport
Economic Development Area’s success; Holladay has built over a million square feet in
that area already. Mr. Perri stated that it is a very competitive market and the hook has to
be bait. He stated that it makes a world of difference if you fish with the right bait. The
fish are biting, they don’t always bite, and then they have to bait the hook. He stated that
is the way that it has always been; he doesn’t know if that is ever going to change. He
stated that he doesn’t want government to have to do more than they already do. He
stated that he is all for private business investing and thinks that everyone’s taxes
ultimately go down as a result of this kind of investment.
Councilmember Henry Davis stated that he has asked many questions on this bill. He
stated that this TIF area is in a major part of his district. He stated that comparing South
Bend to Mishawaka in an insult. South Bend holds and will forever continue to hold the
base around this area. Mishawaka survives because of South Bend. South Bend
residents spend their money in Mishawaka because of the retail services that are provided
there. He stated that it is a complete misnomer to compare South Bend to Mishawaka.
He stated that if needs a pair of tennis shoes he is going to go out to Mishawaka to go buy
a pair of tennis shoes, because he cannot go anywhere in South Bend to find a pair of
tennis shoes. So in saying that there are more people than just himself in spending their
money out there in Mishawaka, he finds it really bad that the Council is not focusing their
intentions on job creation. How can you create jobs when you don’t have people to work
the jobs. There is a very large problem with vagrancy, the homeless population, mental
illness, and who is going to come in and employ these people when they are dependent
on the system. He stated that there are so many different issues that they discuss and vote
on and he finds it very difficult to find in his right mind to vote for such an important
decision. He stated that he is not saying that it is not a good project, he thinks that
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Portage Prairie is a great project, he loves growth and sees the vision, but not using the
dollars within this TIF district. He stated that he wants Portage Prairie to expand on its
own and support itself. If it is truly a great project, it will with stand the test of time and
support itself, the proof is in the pudding.
Councilmember Varner asked if the project could be in its own TIF District.
Mayor Luecke stated that yes it can. On an annual basis, dollars that are generated that
are not needed or planned for can be released back to the other units as well. There is
two ways of doing it, 1) would be to dissolve the district 2) the other would be to say that
they received x number of dollars this year and don’t need them for the purposes of the
TIF District, so they release those dollars. The ability to release assessed value or
revenue generated on an annual basis.
Councilmember Puzzello questioned who makes that decision.
Mayor Luecke stated that the Redevelopment Commission would make that decision.
Councilmember Kirsits questioned who would get those released revenues.
Mayor Luecke stated that it would go to all of the taxing units, county, city, schools, etc.
It would be used to reduce their property tax levy the next year.
Councilmember Dieter stated that if Portage Prairie was to be included in this TIF area,
there could be a stipulation that LaSalle Square gets x number of dollars as well as the
Studebaker Corridor.
Mayor Luecke stated absolutely.
Kathleen Cekanski-Farrand read into the record that the bill be amended to read as
follows: 2. Any Commission determination of the Resolution that the Airport Area is
amended and expanded pursuant to the Act is hereby approved and shall be limited to not
greater than a thirty (30) year period. NEW 3. First priority of the Airport Economic
Development Area shall remain the LaSalle Square project for not less than $2.5 million
and the Studebaker Corridor project which includes the nanotechnology MIND project.
Former "3" is re-numbered 4.
Councilmember Dieter made a motion to amend this Resolution. Councilmember
Puzzello seconded the motion, which carried by a voice vote of five (5) ayes and three (4)
nays (Councilmember’s Varner, Oliver Davis and Henry Davis). Additionally,
Councilmember Dieter made a motion to adopt this Resolution as amended.
Councilmember White seconded the motion which carried and the Resolution was
adopted by a roll call vote of five (5) ayes and three (3) nays (Councilmember’s Varner,
Oliver Davis, and Henry Davis.)
RESOLUTION NO. 3879-08 A RESOLUTION OF THE COMMON
COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, APPROVING AND
ADOPTING THE EAST BANK VILLAGE
MASTER PLAN – PHASE 1
WHEREAS, in 2006, City Plan, a comprehensive plan for the City of South Bend
(the "City") was adopted by the St. Joseph County Area Plan Commission (the "Plan
Commission") and the Common Council of the City, which recommends that area-
specific plans be developed for portions of the City to provide strategic direction in the
future growth and development of that area; and
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REGULAR MEETING JUNE 23, 2008
WHEREAS, the City of South Bend through its Redevelopment Commission (the
"Commission") and Holladay Properties have undertaken the responsibility to prepare a
Master Plan for the East Bank of South Bend; and
WHEREAS, the East Bank Village Master Plan – Phase I is a strategic
development plan that was created with input from a variety of stakeholders, including
East Bank Village residents and businesses; and
WHEREAS, the East Bank Village Master Plan – Phase I contains a detailed land
use plan for the development of the area with public and private sector investment
opportunities and a projected development schedule; and
WHEREAS, on June 13, 2008, the Commission approved and adopted its
resolution entitled "Resolution of the City of South Bend, Indiana, Redevelopment
Commission Designating and Declaring an Amendment to the Redevelopment Plan for
the South Bend Central Development Area" (the "Declaratory Resolution"); and
WHEREAS, the Declaratory Resolution approves an amendment (the "Plan
Amendment") to incorporate the East Bank Village Master Plan - Phase I into the
redevelopment plan (the "Original Plan") for the South Bend Central Development Area
(the "Area"), (the Original Plan, as amended by the Plan Amendment, shall hereinafter be
referred to as the "Redevelopment Plan"); and
WHEREAS, on June 17, 2008, the Plan Commission adopted and approved its
resolution, a copy of which is attached hereto, determining that the Declaratory
Resolution and the Redevelopment Plan, including the Plan Amendment, conform to the
plan of redevelopment for the City and approving, ratifying and confirming the
Declaratory Resolution and the Redevelopment Plan, including the Plan Amendment, and
designated such resolution as the written order of the Plan Commission approving the
Declaratory Resolution and the Redevelopment Plan, including the Plan Amendment, as
required by Section 16(a) of the Act (the "Plan Commission Order"); and
WHEREAS, Section 16(b) of the Act prohibits the Commission from proceeding
until the Plan Commission Order is approved by the legislative body of the City; and
WHEREAS, the Common Council of the City (the "Common Council") is the
legislative body of the City and now desires to approve the Plan Commission Order in
order to permit the Commission to proceed with the acquisition and redevelopment of the
Area; and
WHEREAS, the East Bank Village Master Plan-Phase 1, which is attached hereto
and incorporated herein, contains all the elements necessary to strategically guide
development in the East Bank of the City’s downtown area, and is appropriate and in the
best interest of the City and its citizens.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana as follows:
SECTION I: The Plan Commission Order attached hereto is hereby approved,
ratified and confirmed in all respects.
SECTION II: That the East Bank Village Master Plan-Phase 1, a true and
complete copy of which is attached hereto and incorporated herein shall be and hereby is
approved.
SECTION III: That any use of Eminent Domain in the East Bank Village area
will be approved by the South Bend Common Council.
SECTION IV: That this Resolution shall be in full force and effect from and after
its passage by the Common Council and approval by the Mayor.
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REGULAR MEETING JUNE 23, 2008
s/Timothy A. Rouse
Member of the Common Council
Councilmember Puzzello, Chairperson, PARC, Committee reported that this committee
held a Public Hearing on this bill this afternoon and voted to send it to the full Council
with a favorable recommendation.
th
Mr. Jitin Kain, Community & Economic Development, 12 Floor County-City Building,
227 W. Jefferson Blvd., South Bend, Indiana, made the presentation on this bill.
Mr. Kain advised that he is please to submit this resolution to the Common Council to
approve and adopt the East Bank Village Master Plan Phase 1. He stated that the East
Bank Village Master Plan – Phase 1 will be amended to the South Bend Central
Development Area (SBDA Plan which currently has three sub areas, one of which is the
East Bank Neighborhood, In order to accomplish this, a declaratory resolution was passed
by the Redevelopment Commission on June 13, 2008, Following this, the Area Plan
Commission approved the Master Plan on June 17, 2008. Upon Common Council’s
approval, the Plan will be sent back to the Redevelopment Commission for a
confirmation resolution. The East Bank Village neighborhood currently lacks a market –
driven strategic plan. The East Race and the St. Joseph River are underutilized assets and
can act as catalysts. Prime vacant land is also available along both the East Race and the
St. Joseph River. The re-use of under utilized buildings and infill sites offer
redevelopment opportunities. Given this, the City initiated a process with the assistance
of JJR Group and Holladay Properties to develop a Master Plan for the area. The East
Bank Village neighborhood has the potential to become a strong, vibrant, urban
neighborhood with an exciting mix of live-play uses that will be attractive to recent
college graduates, young couples, retires and the technology and arts communities. The
new East Bank Village Master Plan – Phase 1 will help accomplish the goal and provide
guidance to the public and private sectors on the future development of the East Bank
Village area. Mr. Kain filed with the Office of the City Clerk a copy of the East Bank
Village Master Plan Phase 1.
A Public Hearing was held on the Resolution at this time.
Kathy Reddy White, owner Circa Arts, 528 E. Colfax, South Bend, Indiana, stated that
she is in favor of the East Bank Village Master Plan. She stated that the East Bank plays
a vital role in the development of downtown South Bend. She urged the Council’s
favorable approval.
Betty Sweeney, owner KCA on the Run & Buttons & Bows Boutique, 710 E. Jefferson
Blvd., South Bend, Indiana, advised that the East Bank Village Master Plan is a great
plan and that it has been seen as a good thing by all the residents of the East Bank. Mrs.
Sweeney encouraged the Council to adopt this Resolution.
Donald Scheffmeyer, 300 S. St. Louis Blvd., South Bend, Indiana, owner, Parkview
Atrium, stated that this has been a long process by the Howard Park Neighborhood
Association. He stated that he is solidly behind the East Bank Village Master Plan Phase
I . He stated that this project contains exactly what was project for the East Bank area
years ago. The area is mainly boutiques, retail, and restaurants. He stated that this is an
exciting time for the East Bank area. He urged the Council’s to vote in favor of this
Resolution.
There being no one else present wishing to speak to the Council either in favor of or in
opposition to this Resolution, Councilmember Dieter made a motion to adopt this
Resolution. Councilmember Davis seconded the motion which carried and the
Resolution was adopted by a roll call vote of eight (8) ayes.
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REGULAR MEETING JUNE 23, 2008
Councilmember Oliver Davis left the Council Chambers at this time.
BILLS – FIRST READING
There were no bills for First Reading at this time.
UNFINISHED BUSINESS
BILL NO. 24-08 A BILL AMENDING THE ZONING
ORDINANCE FOR PROPERTY
LOCATED WEST OF 2801 MAIN STREET,
EAST OF THE FORMER RAILROAD RIGHT-
OF-WAY, SOUTH OF 2729 MAIN STREET AND
NORTH OF 3107 MAIN STREET, SOUTH
BEND, INDIANA, COUNCILMANIC DISTRICT
NO. 6, IN THE CITY OF SOUTH BEND,
INDIANA
Councilmember Puzzello made a motion to accept the substitute version of this bill as on
file in the Office of the City Clerk. Councilmember Varner seconded the motion which
carried by a roll call vote of eight (8) ayes. Additionally, Councilmember Puzzello made
a motion to set this bill for Public Hearing and Third Reading on July 14, 2008 and send
to the Zoning & Annexation Committee. Councilmember Varner seconded the motion
which carried by a roll call vote of seven (7) ayes.
NEW BUSINESS
There was no new business to come before the Council at this time.
PRIVILEGE OF THE FLOOR
COMMENTS FROM MR. LARRY GRUMMELL REGARDING BILL 26-08
Larry Grummell, no address given, asked who was the primary person responsible for the
drafting of Bill 26-08.
COMMENTS FROM MR. STEPHEN RANGE REGARDING BILL 26-08
Stephen Range, 821 N. Johnson, South Bend, Indiana, stated that the Council Member’s
of South Bend are hypocrites and their actions’ regarding banning the use of hand guns is
unconstitutional.
COMMENTS FROM MR. TOM ZMYSLO, REGARDING BILL NO. 08-58
Tom Zmyslo, 51042 Prairie View Way, South Bend, Indiana, commended
Councilmember Henry Davis on his decision not to vote for the expansion of the Airport
Economic Development Area to include Portage Prairie. He stated that more information
was needed and the Council should not pass such legislation without public input.
Council President Rouse advised that Mr. Grummel, Mr. Range and Mr. Zmyslo’s
questions were out of order because the topic that they are making reference to appeared
on the South Bend Common Council Agenda.
36
REGULAR MEETING JUNE 23, 2008
ADJOURNMENT
There being no further business to come before the President Timothy Rouse adjourned
the meeting at 10:30 p.m.
ATTEST: ATTEST:
____________________________ ____________________________
John Voorde, City Clerk Timothy Rouse, President
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