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HomeMy WebLinkAbout03-24-14 Common Council Meeting MinutesREGULAR MEETING MARCH 24, 2014 Disclaimer: Undergoing technology updates experienced some loss of video & audio recording for dictation. 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, March 24, 2014 at 7:00 p.m. The meeting was called to order by Council President Oliver Davis and the Invocation and Pledge to the Flag were given. ROLL CALL COUNCILMEMBERS: Present: Tim Scott Henry Davis, Jr. Valerie Schey Dr. Fred Ferlic Dr. David Varner Oliver J. Davis Derek Dieter Gavin Ferlic Karen L. White OTHERS PRESENT: 1st District 2nd District 3' District, (Chairperson Committee of the Whole) 4 1 h District 5s` District 6s` District, President At- Large, (Vice President) At -Large At- Large, Kathleen Cekanski- Fairand Council Attorney John Voorde City Clerk Janice I. Talboom Deputy Kareemah Fowler Chief Deputy REPORT FROM THE SUB- COMMITTEE ON MINUTES Councilmember Scott made a motion that the minutes of the March 10, 2014, meeting of the Council be accepted and placed on file. Councilmember Schey seconded the motion which carried by a voice vote of nine (9) ayes. SPECIAL BUSINESS PRESENTATION FROM MS. REUT OZ FROM THE JEWISH FEDERATION OF ST. JOSEPH VALLEY Ms. Rem Oz from the Jewish Federation of St. Joseph Valley: I'm a little bit nervous. It is a pleasure to be here, thank you councilwoman Valerie Schey for the invitation and thank you to the council for hosting me. I also want to acknowledge that with us tonight is Executive Director for the Federation, so I would like to acknowledge that for him and also my supervisor the Community Relations Director. Thank you. My name is Rent Oz, I came from Israel 7 months ago to work in the Jewish Federation of St. Joseph Valley in South Bend. Here is a little background about the Jewish Federation. The cultural members of the Jewish life in Indiana, reaching more than 2,000 Jewish people in St. Joseph, Elkhart, and southwest lower Michigan. The federation continues to serve the Jewish people locally and throughout the world coordinated fund- raising, community wide programming, services, and education technology by the way our events are open to the entire community and I encourage you to attend our upcoming Michiana Jewish Film Festival it will be held May 12" at Notre Dame. My work is mainly with the children and youth of the community. We have a youth group called Sababa, we meet twice month. Recently we volunteered for the center of the homeless for South Bend. In addition, each week, in the evening at the synagogue, we teach about Israel and my lively experiences. One of the things that I appreciate the most in the federation work is that they do work for the elderly community. We host two lunches each month, and we have an educational part. I'm always amazed that the federation also offers transportation to the elders who can get to the luncheons REGULAR MEETING MARCH 24, 2014 on their own. This is one example of something great that the federation is responsible for. There are many other great things that through working with the Russian speaking members of our community and helping them learn English and support them with their needs. Since one of the goals of the federation is to strengthen the Jewish community and its relationship with Israel. That's why I'm here for it. My Israel story, starts with my Great Grandparents came to Israel 80 years ago, even before the creations of the states in 1948. They came alone with no family they came before they were 20 years old. They came from Eastern Europe before World War II, in order to build a new country a new life for themselves and they're grandchildren, like me. Israel was declared as the Jewish country on May 14, 1948 by David, but even before he declared our independence the Jewish country had already out numbered 450,000 people amongst them my grandparents, who came from Eastern Europe. So they had a land and they had a dream and they work very hard to make this dream a reality. Today, Israel is an island of sanity and stability in a very chaotic community. In a few words, we live in a very, very tough neighborhood. Yet Israel is the only close American ally in the middle -east that the U.S. can really rely on. Lebanon is controlled by the terrorist's organization, which is across the other lot, who has murder more than 140,000 of his own citizens. Iraq is in a state of chaos, Egypt is not a reliable American partner anymore. Although Jordan is a friend of the United States its government can be over thrown by its city. Why are America and Israel so close, President Obama Care, the bond between Israel and the United States is rooted in more than our shared national interest its rooted in the shared values and shared stories of our people. Those same values include a commitment to democracy. The rule of law, freedom of religion and speech and human rights are all what make Israel the best and the strongest ally for America in the middle -east both nations have similar histories. Both nations were founded by refugees seeking political and religious freedom. Both were forced to fight for independence against foreign powers. Both have absorbed great immigrants seeking political freedom and economic well-being and both have evolved into democracies that respect the rule of law, the will of voters and the rights of minorities. It is not well known that 20% of the population of Israel is comprised of Arabs both Christian Arabs and Muslim Arabs who enjoy full civil rights, equal access to Israel world -class Universities and in our parliament. Speaking of Israel minority, we as a Jewish federation are very proud of our partnership with one of the most ethnically diverse place in the middle -east it is called the Western Galilee that has a mixed population of 600,000 Christians, Muslims, and Jews. One example that I want to tell you about, the director general of the Western Galilee Hospital and he is also a Christian Arab about 6 months ago, he visited South Bend and in a presentation, he gave a very interesting response to a question that he was asked on how he was treated in Israel. He said if you are a minority living in the middle -east, I think that the best place to be is in Israel. I think that the sentence speaks for itself. The bond between America and Israel is not only in the values that we share it also has a strategic and economic consensus. It is no secret that Israel and America both desire a peaceful middle -east, yet they also face common enemies like Huron. We see it both strategically planning, we see it in the joint the sharing of intelligence, and joint military exercises. Most importantly is the fact that Israel military innovations are helping to take save American soldiers lives in Afghanistan every day. Another major asset of the great relationship between America and Israel is the growing economical operation between the two resources. Many American companies seek to invest in Israel high -tech place. Also, several of the biggest high -tech companies like Google, and Intel have major research in the government affiliates in Israel. Of course Israel companies also invest in America, the food that many of you enjoy, is from an American Israel partnership with two production facilities here in America. The last important thing that I want to talk about is me. In other words solving the Israel Palestinian conflict. Ever since 1993 and the resigning of the late Prime Minister may he rest in peace. Israel has always reached out quickly to our Arab neighbors and support the solution. I hope that with the great help of U.S. Secretary of State John Carey, we will find a solution to the conflict. A solution for once and for all will bring peace to Israel. I want to finish with one story that will give us all hope for the future. On the Israel border of Sierra, Israel military doctors and nurses are providing emergency medical care for wounded Siberian civilians. Now keep in mind that we are still officially at war with Syria, my grandfather fought in 2 wars against Syria. Yet the governors of Israel has already decided that it would be against our values not to provide medical treatment for wounded civilians. As a citizen of Israel, and as a former soldier in the Israel services. This makes me very proud, but in medical treatment, does not end an Israel steel hospital. Compliments to the wounded Syrian civilians, have been transported to the hospitals of Israel for surgery. One of these is a western girl in our hospital named Aaliyah that I mentioned earlier. One Syrian who brought his granddaughter, for medical treatment in Israel said, once 2 REGULAR MEETING MARCH 24, 2014 they are treated I will raise an Israeli flag from the roof of my house. And again this speaks for itself. Thank you very, very much for the opportunity speak. REPORTS OF CITY OFFICES There were no reports from City Offices at this time. City Attorney Report: (Inaudible) RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:18 p.m. Councilmember White made a motion to resolve into the Committee of the Whole. Councilmember Scott seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember Schey, Chairperson, presiding. Councilmember Schey, 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 Schey stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. PUBLIC HEARINGS BILL NO. 22 -14 PUBLIC READING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTY: THE ALLEY TO BE VACATED IS THE FIRST EAST /WEST ALLEY SOUTH OF VINE STREET, FROM THE EAST RIGHT OF WAY OF 20TH STREET, EAST TO THE FIRST NORTH /SOUTH ALLEY FOR A DISTANCE OF 133.5 FEET AND A WIDTH OF 14 FEET By request from the petitioner motion for continuance until April 14th. Councilmember Oliver Davis made a motion for continuance, Councilmember White seconded the motion. Motion carried by (9) nine ayes. BILL NO. 18 -14 PUBLIC READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 4, ARTICLE 4, SECTION 38 OF THE SOUTH BEND MUNICIPAL CODE TO REVISE PROVISIONS FOR LICENSING OPEN AIR BUSINESSES AND TO INCLUDE DONATION BOXES AND OTHER CONTAINERS DESIGNED TO ACCEPT OR TO DISTRIBUTE USED ITEMS By request from the petitioner motion for continuance until April 14th. Councilmember Dieter made a motion for continuance, Councilmember Scott seconded the motion. Motion carried by (9) Ayes. BILL NO. 19 -14 PUBLIC READING ON A BILL OF THE COMMON COUNCIL OF THE CFFY OF SOUTH BEND, INDIANA, APPROPRIATING ADDITIONAL FUNDS FOR CERTAIN DEPARTMENTAL AND ENTERPRISE OPERATIONS IN 2014 OF $106,684 FROM CENTURY CENTER CAPITAL FUND ( #671) Chairman Schey- The Personnel Finance Committee met earlier today and send bill 19 -14 to the full council with a favorable recommendation. Presenter (City Controller's Office): This is additional appropriation is for century center appropriates $106,684 $54,184 for smaller kitchen repair items, $52,500 for repairs to the lean elevator, funding for this was a contribution from SMG the new management company received REGULAR MEETING MARCH 24, 2014 in summer of 2013 there's no property tax or tax revenues used for this appropriation. I would be happy to answer any questions. Chairman Schey- Thank you council are there any questions at this time, none. Anyone wishing to speaking in favor of bill 19 -14, anyone looking to speak in opposition to bill 19 -14, no one. I will bring in back to the council. Councilmember Dieter made a motion for a favorable recommendation. Motion seconded by Councilmember Scott. Motion carried with 9 Ayes. BILL NO. 20 -14 PUBLIC READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FOR BUDGET TRANSFERS FOR VARIOUS DEPARTMENTS WITHIN THE CITY OF SOUTH BEND, INDIANA FOR THE YEAR 2014 Chairman Schey- The Personnel of the Finance Committee met earlier today and sends bill 20 -14 to the full council with a favorable recommendation. Presentation (City Controller): This is a budget transfer ordinance no additional corporation requested. In Indiana, we have a requirement that transfers to personnel to supply services of capital must be approved by the common council. Whereas 2014, in the past we've brought these forward to you twice a year, mid -year and also the end of the year. This year we thought based upon your previous request we would bring those more frequently so we will bring it March, July, and December with the transfers. Chairman Schey- Council any questions on this bill, none. Any members of the audience looking to speak in favor of bill 20 -14 if so please come to the podium. Any members to looking to speak in opposition. Seeing no -one I wish to bring it back to the full council are there any comments or questions. Councilman Olive Davis: I would just like to congratulate the controller, I appreciate you bringing it to us these three times more often. As it helps to be able to see them spread as opposed to seeing them all together beginning in March, so I want to thank you for following through on our recommendation. City Controller- I thank you as well. Councilmember Dieter made a motion for favorable recommendation. Motion seconded Councilmember White. Motion Carried with (9) Ayes. BILL NO. 21 -14 PUBLIC READING 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 2014 OF $41,919 FROM GENERAL FUND (9101), $17,100 FROM GIFT, DONATION, BEQUEST FUND (#217),$240,500 FROM CENTRAL SERVICES FUND (9222), $830,000 FROM EMS CAPITAL FUND (#288),$138,060 FROM POLICE GRANTS FUND ( #292), AND $217,083 FROM COUNTY OPTION INCOME TAX FUND ( #404) Chairman Schey- The Personnel and Finance Committee met earlier today and sends bill 21 -14 to full council with a favorable recommendation. 4 REGULAR MEETING MARCH 24, 2014 Presentation (City Controller) - There are a number of additional appropriations that for the sake of time that are not for from public funds. We had a good discussion this afternoon at the committee meeting where we had partners and some fiscal officers there that explained additional, and different appropriation items that I won't repeat that tonight but I wanted to answer any question from the council. Councilman Dieter: with the $41,000 what does that have to deal with? Presenter (Office of City Controller) - The $41,919 that was actually from Memorial hospital... Co- Presenter (South Bend Fire Chief) - I want to draw up a nature free contract with Memorial hospital providing their driver for the prenatal truck transport group. Once we collected above and beyond $130,000 in a given year, anything that goes above $130,000 by contract goes back to Memorial hospital. This is actually the first year since we've been engaged in this program for the past 32 years we've actually never over the $130,000, but by contract we are obligated to give them back anything above and beyond that. So I believe we collected I believe $171,000 for those calls that we answered last year. Councilmember Dieter- What was the reason we were able to collect more then? Co- Presenter (South Bend Fire Chief) - I couldn't tell you that 100% but what I can tell you the billing the office, what we have done, we instituted several changes in our billing office and as Mr. Murphy mentioned we have had a very good year this year with collections we were able to collect universally, all of our prospects from Medicare, Medicaid, everything that had a bill as far as collections goes. Councilmember Dieter - Is that something that needs to be revisited or continue doing this well? Co- Presenter (Office of City Controller) - Absolutely, however I caution that in 32 years this is only year that we went over the $130,000. Councilmember Dieter- If you don't what happens? Co- Presenter (South Bend Fire Chief) - Then Memorial makes up the difference. So in the past we've collected $124,000 and they reimburse us for $6,000 to make up the difference. Councilmember Dieter- Who does the work for the collections, the city? Co- Presenter (South Bend Fire Chief) - Our billing office does all of that, calling the public, we also engage in different services Councilmember Dieter- I understand that but if you guys are doing the fine work that you do and the billing does the great work? I don't understand what Memorial is going to get there piece of pie? Co- Presenter (South Bend Fire Chief) - Well, it's been a long standing contract. Councilmember Dieter- Well it needs to be reviewed. Co- Presenter (South Bend Fire Chief) - I understand Councilmember Dieter- Well, I'll go on to the next question Mr. Controller. Are the gifts and donations are those anonymous or those..? Presentation (City Controller) -Well technically those are not anonymous we keep a list of those in the office. Councilmember Dieter- Can we get a list of those as I would like to thank them, because I don't know who donates to the city? So I would be more than happy to write a letter of thanks to the private individuals or businesses and so on and so forth. REGULAR MEETING MARCH 24, 2014 Presenter (Office of City Controller) - We keep contract of the names. Presenter (Office of City Controller) - The $138 for the police grants, what is that? That's a grant that the police department has for the South Bend Street Corporation. I don't know all the details but we received the cash for 2013 but it's a passing grant that goes to the school corporations so we have to reimburse them for that. Councilmember Dieter- Is that for the resource officers or do you know? Presentation (City Controller) - Well to secure our schools grant. I don't know the exact specifics but I know the reimbursement goes to the schools. We received our money in late 2013. Councilmember Dieter - I'll find out from the police department, I've never heard of it. Dr. Ferlic- I just want to say that just because they decided to pay our debts this year, more than likely we paid our debts before that they were doing the city a favor now we're doing them a favor, so now we will renegotiate that contract, if they are consistently going uphill. Thank you we will now provide our guest an opportunity to those wishing to speak in favor of bill substitute 21 -14. Anyone wishing to speak in opposition to bill 21 -14. Resident of P.O. Box 10205- I'm not really in opposition, along with Mr. Dieter I was curious some of these questions should probably be answered before they make plans first, where the money comes from and if that public record so we can go on the website and look up and likely give some donations if they can't give that information to Mr. Dieter can the public be allowed to look at that? Presentation: (City Controller) Answer: With the donation that can be a public donation, we keep very specifics of different component of different donations. We provide a support annually and those we would be happy to submit. Councilmember Oliver Davis made a motion for favorable recommendation for Substitute bill 21 -14. Seconded by Councilmember Dieter. Motion carries by a vote of (9) nine ayes. RISE AND REPORT Council President Oliver Davis made a motion to rise and report to full Council. Councilmember Dieter seconded the motion which carried by a voice vote of nine (9) ayes. ATTEST: ATTEST: John Voorde, City Clerk Karen L. White, 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 7:35 p.m. Council President Oliver Davis, presided with nine (9) members present. rnfflfft�r:ata IINWA1110res BILL NO. 19 -14 THIRD READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING ADDITIONAL FUNDS 0 REGULAR MEETING MARCH 24.2014 FOR CERTAIN DEPARTMENTAL AND ENTERPRISE OPERATIONS IN 2014 OF $106,684 FROM CENTURY CENTER CAPITAL FUND ( #671) This bill had third reading. Councilmember Henry 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. BILL NO. 22 -14 THIRD READING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTY: THE ALLEY TO BE VACATED IS THE FIRST EAST /WEST ALLEY SOUTH OF VINE STREET, FROM THE EAST RIGHT OF WAY OF 20TH STREET, EAST TO THE FIRST NORTH /SOUTH ALLEY FOR A DISTANCE OF 133.5 FEET AND A WIDTH OF 14 FEET BILL NO. 20 -14 THIRD READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FOR BUDGET TRANSFERS FOR VARIOUS DEPARTMENTS WITHIN THE CITY OF SOUTH BEND, INDIANA FOR THE YEAR 2014 This bill had third reading. Councilmember Dieter made a motion to amend this bill as in the Committee of the Whole. Councilmember Scott seconded the motion which carried by a voice vote of eight (7) ayes and (1) nay Councilmember Davis. BILL NO. 18 -14 THIRD READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 4, ARTICLE 4, SECTION 38 OF THE SOUTH BEND MUNICIPAL CODE TO REVISE PROVISIONS FOR LICENSING OPEN AIR BUSINESSES AND TO INCLUDE DONATION BOXES AND OTHER CONTAINERS DESIGNED TO ACCEPT OR TO DISTRIBUTE USED ITEMS BILL NOT HEARD BILL NO. 21 -14 THIRD READING 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 2014 OF $41,919 FROM GENERAL FUND ( #101), $17,100 FROM GIFT, DONATION, BEQUEST FUND (4217),$240,500 FROM CENTRAL SERVICES FUND (#222),$830,000 FROM EMS CAPITAL FUND (#288),$138,060 FROM POLICE GRANTS FUND (9292), AND $217,083 FROM COUNTY OPTION INCOME TAX FUND ( #404) This bill had third reading. Councilmember White made a motion to amend this bill as in the Committee of the Whole. Councilmember Ferlic seconded the motion which carried by a voice vote of eight (8) ayes. Additionally, Councilmember Gavin Dieter made a motion to pass this bill as amended in the Committee of the Whole. Councilmember Scott seconded the motion which carried. The bill passed by a roll call vote of six (7) ayes and (1) nay Councilman H. Davis. RESOLUTIONS BILL NO. 14 -24 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH 7 REGULAR MEETING MARCH 24, 2014 BEND, INDIANA, COMMONLY KNOWN AS 237 NORTH MICHIGAN STREET AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR GREAT LAKES CAPITAL DEVELOPMENT 0 REGULAR MEETING RESOLUTION NO. 4 32- —( MARCH 24, 2014 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 237 North Michigan Street AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR GREAT LAKES CAPITAL DEVELOPMENT WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana requesting that the area located at 710 -712 Niles Avenue which is more particularly described as: Lot 10 P So Bend Lot 2 & N 33.45' Lot 3 0 P And which has Key Numbers 71 -08 -12 -107- 005.000 -026 and 71- 08 -12- 107 -006.000 -026 presently at this point in time, be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1 -12.1 et seq., and South Bend Municipal Cade Sections 2 -76 et seq, and; WHEREAS, petitioner has agreed to and has accepted responsibility to report any changes in the final legal description and to report the final, appropriate Key Number to the Department of Community Investment and to the Office of the City Clerk; and WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code § 6 -1.1 -12.1, et seq., and South Bend Municipal Code Sections 2 -76, et seq., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law: and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. REGULAR MEETING MARCH 24, 2014 NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, m follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6 -1.1 -12.1 et seq., for tax abatement. - SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1- 12.1 -3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably cxpcetod to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits forte completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6 -1.1- 12.1 -3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. 10 SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of ten (10) years as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. This resolution is passed as an exception to the current City Code regarding the applicable deduction percentages for a 10 year abatement for the following reasons: 1. The property has been designated by the Economic Development Commission as an Economic Development Target Area located in the CBD; 2. The property is currently owned by the City Redevelopment Commission and requires annual management and maintenance by the City; 3. The property has been vacant and there has been no realized tax revenue generated from the property for at least ten years; 4. The private investment proposed for the project will exceed three times the amount of the taxes to be abated; 5. The project will pay taxes and those revenues will be net new taxes to the community; 6. The project is aligned with the goals of the SBCDA plan, which specifically targets multi -use projects including support for residential occupancy in the CBD; and 7. There is a significant cost to cure required in the project to make the property functional, conform to the historical nature of the property and return the property to economic viability SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5 -3 -1 and Indiana Code § 6- 1.1- 12.1 -2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Z-A 4_ I y,, PR ' (k' t1 S t �6 lq RC;Y. APPROVED '(4t30PTCD 3 -�. J - t. Cl .� Gt Filed in Clerk' i "A: CITY CLERK, SOUTH BEND, IN I REGULAR MEETING MARCH 24, 2014 Rich Davis- Good Evening full member of the council. I am Rich Davis, I joined you a couple weeks ago as we had a longer discussion regarding Great Lakes Capital Development asking for $9.5 million to assist the city in targeting the formal LaSalle Hotel to rehabilitate that into approximately 60 apartments units with retail. This is a significant project that has been historically known by the city redevelopment commission for many, many years and has been asked to contribute to the tax abatement for this city for at list over 10 years and has been ask, and to make this a productive asset while also meeting the objectives and plans of the central business district to increase living an population and patronage of business downtown. This is a project that will result in initially of a least 9 new jobs as a contract with a represented payroll of approximately $350,000. Overall we will have a representative of over 140 -160 range of contractors working on the project in our 3 weeks construction phases. As the council is aware this is a request for a 10 year abatement that veers slightly from the traditional 10 year phase and schedules and the matter of many features that the council and city have considered towards this project with regards to the exceptions. The primary ones including an investment in a property that has been historically been a liability to the city for maintenance cost to turn this project into a tax producing, contributing property as well as this is a property that has a historic destination and suffers significant jobs, it's not a project that is readily and immediately convertible into a productive asset. There has to be significant investments made to make the property sustainable for future development. Those are the key aspects that separate this project from some other multi - family housing projects that have become before this council. Those are some of the unique assets. I am happy to answer your questions of the council, and again we greatly appreciate the council's consideration moving forward. President Oliver Davis- Any questions from the council? In Opposition: Joseph Shabazz- I am in rising opposition not necessarily of the tax abatement in hand but the way of group of projects are at this point. We examined the practice and application, we found that Great Lakes Capital has indicated that they have affirmative action plan, I'm very concerned about their affirmative action says that minorities have a hard time getting contracts and employees from South Bend. We found out from community investment that no -one verified that they actually had what they planned. We think that's an issue, we think, we are not trying to appeal to anyone's integrity but we live by the axiom to check to verify. We believe that it is totally in the interest of the city to ensure this, that there is an affirmative action in plan in place that can be implemented. For that purpose I would like to humbly suggest that you table it until Great Lakes Capital shows you that affirmative action plan. Rebuttal Great Lakes Capital Development (Co- presenter) - Sure, we appreciate the opportunity President Davis and members of the council. With respect to the abatement application, is the council aware that the council considers the number of years of the abatement based upon the corresponding points scheduled. One of the points, points allocated to this project for electing and selecting unique contractors that have affirmative action plans in place as the council is aware this is a project that is also subject to a development agreement with the redevelopment commission that requires there to be a broad base in essence advertising public and more engaging contractors. Under the abatement, for ordinance the ability to achieve affirmative action plan is a goal and objective to have the level playing field to broaden the field of applicants in order to ensure that there is diversity to those that are engaged in the job. And in this project I know Great Lakes Capital is planning to work with the Michiana building association, organization as well as apply to all of the terms in the development agreement to 12 REGULAR MEETING MARCH 24, 2014 publically post the job parameters in order to receive as many as evaluations as possible. Thank you. Councilmember Scott- I just want to thank Great Lakes for the investment in taking in a dormant building in our downtown and turning it in to something and revitalizing and taking it off the cities responsibility. Councilmember Henry Davis - Thank you for providing that piece of information that I was asking for, I was not trying to be extremely critical of it, but when we are using tax payers dollars, when we are supporting tax abatement and primarily using those incentives, I think it highly encumbering upon us to make sure that there is a public benefit, that sometimes comes back in a way or form of minority contracts, donations to certain organizations in the city and etc... One thing that I'm really nervous about it and I've supported all the way up to this point, so you are going to have my support but as we move further on this matter. I want to make sure that this becomes part of a policy. Obviously, we have not been very good at defining exactly what we are looking for. That's why there seems to be a lot of, the level of clarity that we are looking for is not there and doesn't exist. So as we are moving forward, and I've been on this conversation since I've been on council that these things begin to take root and obviously they have with this particular development and hope that we see something different while the folks are working on the structure of this building but maybe all the project that we have that are assisted with government subsidies, because that's what we are giving out government subsidies to help support of project development. So I will say thank you for your time and I'm looking forward to seeing something on the comer of LaSalle on Michigan Street. Councilmember Schey- We have had several discussions obviously on economic development and the multi -prong approach. So we are all very excited about this development, I think it will bring a lot to downtown. But to address the concern that Mr. Shabazz brought forward, do you feel that true efforts, collaborative efforts giving some job training and apprenticeship programs and maybe the initiatives that we have now in place as well as anything that we can develop in the fixture that we can get to a point, where when we are talking about diversity and exclusivity that we will have a level playing field when we talk about making sure that everyone has the chance to participate? Do you think we are there yet or is there still work to be done? Great Lakes Capital Development (Co- presenter) - The absolutely work still that needs to be done, and we are looking at programs as we mentioned at previous council meeting the smart workforce initiative which is underway created 48 scholarships with new counsel action, helped those to find jobs, jobs that already exist. So a big part of this is define that problem understanding what are those barriers to economic opportunities, and then creating the work program to help people to get in place. There's absolutely work to be done. We will have to take a look at that. Obviously, a big part of that is job creation, job creation helps create those opportunities but we look at the other side and expand on the window of concern. Councilmember Schey- Thank you. I think that approximately now and in the fixture we can hopefully bring more people in so that everyone has that opportunity to practice with you. Dr. Ferlic- Thanks to Great Lakes, I will be saying thanks a number of time tonight. To trusting in South Bend and bringing the jobs to South Bend, I know you could've gone east to Elkhart or Mishawaka or Middlebury and all those cities. Thank you for taking an interest in South Bend and thank you very much. 13 REGULAR MEETING MARCH 24, 2014 Councilmember Ferlic- Thank you for your investment. Councilmember White - Thank you as well. President Oliver Davis - Thank you for listening to their concerns and sharing. Councilmember Scott made a motion to pass this bill. Councilmember Ferlic seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. BILL NO. 14 -17 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 WEST CALVERT STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (10) TEN -YEAR REAL PROPERTY TAX ABATEMENT FOR NOBLE AMERICAS SOUTH BEND ETHANOL LLC 14 REGULAR MEETING RESOLUTION N0, l �3 MARCH 24, 2014 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 West Calvert Street AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF UP TO AN EIGHT (8) YEAR REAL PROPERTY TAX ABATEMENT FOR NOBLE AMERICAS SOUTH BEND ETHANOL LLC WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana requesting that the area commonly known as 3201 West Calvert Street, South Bend, Indiana, and which is more particularly described as follows: Vac Sunset Pk SE Y< Ex Pt Sold to City S & Adj & Mid Pt S1 /2E of Rr Cent 61,834 Ac See 16 -37 -2e and which has Key Number 71- 08 -16. 400 - 002.000 -026, be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6 -1.1 -12.1 ct seg., and South Bend Municipal Code Sections 2 -76 gt M., and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code § 6 -1.1 -111, et seg., and South Bend Municipal Code Sections 2 -76, et LN., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: REGULAR MEETING MARCH 24, 2014 SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6 -1.1 -12.1 et sm., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6 -1.1- 12.1 -3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6- 1.1- 12.1 -3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community and Economic Development Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. REGULAR MEETING MARCH 24, 2014 SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of up to an eight (8) years as shown by the attachment pursuant to Indiana Code 6- 1.1- 12.1 -17. SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5 -3 -1 and hidiana Code § 6- 1.1- 12.1 -2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force mid effect from and after its adoption by the Common Council and approval by the Mayor. PRESEhITED .'S 'Zy —1 1 QS SU. Rol. APPROYE9i wooed[ 3-2,`t-IY O-S 5uwf-4� roiled in Cleric's Ol¢ie E MAR YJI4 CITY CLERI SOUTH BEND. IN Councilmember Vamer made a motion to pass this bill. Councilmember Schey seconded the motion which carried. The bill passed by a roll call vote of eight (8) eight ayes. 17 REGULAR MEETING MARCH 24, 2014 BILL NO. 14 -25 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 WEST CALVERT STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR NOBEL AMERICAS SOUTH BEND ETHANOL LLC IN REGULAR MEETING RESOLUTION N0. q 3 3Z 1 MARCH 24, 2014 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 WEST CALVERT STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR NOBLE AMERICAS SOUTH BEND ETHANOL LLC WHEREAS, a petition for personal property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 3201 West Calvert Street, South Bend, Indiana, and which is more particularly described as follows: Vac Sunset Pk SE' /< Ex Pt Sold to City S & Adj & Mid Pt SI12E of Rr Cont 61.834 Ac See 16 -37 -2e and which has Key Number 71- 08- 16- 400 - 002.000 -026 be designated as an Economic Revitalization Area under the provisions of Indiana Code 6-1.1 -12.1 et sec., and South Bend Municipal Code Sections 2 -76 et seq., and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6- 1.1 -t2.1, et sue, and South Bend Municipal Code Sections 2 -76, et §R., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law, and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: REGULAR MEETING MARCH 24, 2014 20 REGULAR MEETING MARCH 24, 2014 SECTION I. The Common Council hereby determines and finds pursuant to Indiana Code 6- L1- 12.1 -4.5 et M., that: a. The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type; b. That the estimate of the number of individuals that will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed installation of new manufacturing equipment; C. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION 1I. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6 -1.1 -12.1 -4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community Investment, and the Community Investment Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of (5) five years as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5 -3 -1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. 2 REGULAR MEETING MARCH 24, 2014 SECTION VII. This Resolution shall be in full force and effect d after its adoption by the Common Council and approval by the Mayor. i .F iled in aiii'g f'l1fIC� LIAR 16 VA 4 PRESENTEES .ti JOHN VOONDE NA iCPPRUIP3 � CITY CLERK, SPUN BWN'J, IN WwPita 0' Councilmember Schey made a motion to accept to the substitute version this bill. Councilmember Ferlic seconded the motion with carried by a voice vote of eight (8) Ayes. In addition, Councilmember Schey made a motion to be held with Bill 14 -25 for the purpose of a Public Hearing. Councilmember Ferlic seconded the motion with carried by a voice vote of eight (8) Ayes. 22 REGULAR MEETING MARCH 24, 2014 Councilmember Ferlic- the Community Investment sends both of these forward with a favorable recommendation. Presenter (Nobel America Ethanol LLC) - We bring before you the resolutions for Nobel America Ethanol LLC for new operators of the ethanol plant here in South Bend. As we discussed earlier to the committee this is a unique resolution for the public hearing today. This is a situation where when we were negotiating for the purpose of purchase ethanol plant to become the new operator the plant was then assessed as personal property for the books of taxation. Upon completing the purchase and acquisition of the plant and after beginning to make improvements to the plant the assessor made the decision to reassess the property as real property. The presence of the building certainly adds a component to this that the local ordinance say you cannot uphold a building permit in order to receive a real property abatement. Members of the corporate and community investment in the council and the crowd that stands before me, we have given them permission to pull the building permit as it was formerly personal property at that time, so while we are asking for building exemptions in the ordinance in real property abatement up to 8 years in addition to that the approval of tax abatement on personal property up to 5 years. Nobel America's has been a good corporate citizen thus far, plans to invest approximately $32 million in the Ethanol plant to bring it back to the state of our facility, secondly to be here for a long, long time. In the event that personal property tax and the real property tax abatements are granted today, we know that the company is doing their due diligence now, economic forecasting to determine which would be of the most value to the company in the long term then the plan is at that time, choose to accept either the real property abatement or appeal to both the assessor and the state assessor to have it reverted back to personal property. In the event that it is kept as personal property abatement full tax abated over a 5 year period would be $102,000 total taxes paid would be $105,000. If it's a real property tax abatement, total taxes abated would be $1,562,000, and total tax paid would be $4, 443,000, total number of jobs created would be 50 with a guarantee rate between $25 to $27 an hour. None for or against: Councilmember Scott- I want to thank you for your investment. One thing Chris, I want to note that we had a meeting done once this gets turned on, we had a sewer issue with the old ethanol plant, not too much of a water issue, but councilman Davis had to deal with a sewer smell happening in the first district and the second district and I want to make sure that we have those meetings and talk about it. I did verse the subject with Dr. Garner, on the utilities committee but I want make sure we are all on the same page moving forward with that. I am supportive, I appreciate the jobs and investment in the city of South Bend. Councilmember Henry Davis- I am supportive of this because of what is going on with it, however I am very unhappy with the process with our tax abatement to saying how it is being utilized maybe there's some miscommunication or misunderstanding on my end. However based upon, me reading what's going on how it's being structured. I'm going to be unclear in and really unhappy, right now I am reluctant to say yes, I want to yes to it, but we really need to change some of the ways that we are defining who gets what, and how to get it and so that it suggests an output for the city and it's just not necessarily a bad driven approach to getting more jobs and expanding our tax abatement because we may be losing out more than we are actually gaining. We may be spending a lot more on getting variables back and that was one of the conversations that we had earlier today but you have my support on this one, sir it is not your fault. This is a part of the things that have taken place for a number of years that I have gotten to the point where I'm looking forward to a sub- committee meeting with in a month so we can have a very nice discussion on how this going to work. Presenter (Nobel America Ethanol LLC) - I'll just say thank you in the whole manner for your investment and thank you to the community investment. I know the assessor's office has originally said this was personal property tax and when you went back to them they said no it looks like it will be real property when they reassessed the property. Thank you to for being flexible in getting this thing moving that's great work. Thank you. Councilmember White- I would like to say this has been a long time coming a long process. I would like to thank councilmember Oliver Davis and others who have worked very hard to 23 REGULAR MEETING MARCH 24, 2014 ensure that this particular facility would be in position so that when we did have a buyer with that company that we did have an interest. Not only do I appreciate the private investment that the city has invested as well. My comment is that not only will that plant be put back into operation but individuals that have been without work will have opportunity. So it's a win/win for all of us. Thank you to all the hard work and we are just now seeing the results. President Oliver Davis I like the words of council for it being a win/win, because of the fact that we have now been in a position where we have already work to have wells out in that area and now we have jobs coming in the area. So both situations can totally be fixed up and it's being done at the same time so it is a great benefit to the whole city of South Bend, especially for those who live right around the common area in the 6" district, so I'm very thankful, welcome home. ETHANOL LLC Councilmember Dieter made a motion to accept to the substitute version of bill 14 -17. Councilmember Ferlic seconded the motion with carried by a voice vote of eight (8) Ayes. In addition, Councilmember Dieter made a motion to adopt Resolution 14 -17. Councilmember Ferlic seconded the motion with carried by a voice vote of eight (8) Ayes. Councilmember Dieter made a motion to adopt Resolution 14 -25. Councilmember Ferlic seconded the motion with carried by eight (8) Ayes. BILL NO. 14 -26 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1902 WEST SAMPLE STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO (2) YEAR REAL PROPERTY TAX ABATEMENT FOR LIPPERT COMPONENTS MANUFACTURING INC 24 REGULAR MEETING RESOLUTION NO. q332,- MARCH 24, 2014 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 WEST CALVERT STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR NOBLE AMERICAS SOUTH BEND ETHANOL LLC WHEREAS, a petition for personal property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 3201 West Calvert Street, South Bend, Indiana, and which is more particularly described as follows: Vac Sunset Pk SE' /. Ex Pt Sold to City S & Adj & Mid Pt S1 /2E ofRr Cont 61.834 Ac +- Sec 16 -37 -2e and which has Key Number 71- 08 -16- 400 - 002.000 -026 be designated as an Economic Revitalization Area under the provisions of Indiana Code 6 -1.1 -12.1 et 5§q, and South Bend Municipal Code Sections 2 -76 et sec,, and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6 -1.1 -12.1, et M., and South Bend Municipal Code Sections 2 -76, et gq., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: REGULAR MEETING MARCH 24, 2014 SECTION I. The Common Council hereby determines and finds pursuant to Indiana Code 6- 1.1- 12.1 -4.5 gi jeq., that: a. The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type; b. That the estimate of the number of individuals that will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed installation of new manufacturing equipment; C. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and Q, The totality of benefits is sufficient to justify the deduction requested. SECTION Il. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6- 1.1- 12.1A.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community Investment, and the Community Investment Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of (5) five years as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5 -3 -1, said publication providing notice of the public hearing before the Common Council on the proposed oonfinning of said declaration. 26 REGULAR MEETING SECTION VII. This Resolution shall be i the Common Council and approval by the D PRISENTEd '% AOZ TPPROYAl wMPM a MARCH 24, 2014 by Red In t1ji $ ft ri AF 1 G „' i� JOHN YOnRDE CITY CLERK, SOUT!4 JEN„!. !N REGULAR MEETING MARCH 24, 2014 Councilmember Ferlic, Community Investment Committee, reported that this committee held a Public Hearing on this amended bill this afternoon and voted to send it to the full Council with a favorable recommendation. Presenter (Community Investment)- Good Evening Council, the reason to bring before you for resolution for a two year vacant building tax abatement under state code 6 -1.12 this has been another long time coming as council White has stated. This has been a true partnership between IPDC, chamber of commerce, Great Lakes Capital, Holiday Corporation and certainly the great entrepreneurs and future stakeholders of Lippert Industry. So we bring before you a two year tax abatement for the real property total taxes abated would $696,000, total taxes paid over two years would be $400,839, total jobs to be committed to be created during that two year time period would be 200, total jobs committed over a 10 year period are 380. That's it. Councilmember Henry Davis- Was this tax really necessary for this in order for this to happen? Presenter (Community Investment)- Absolutely, this tax abatement and between the old tax abatement these are conversations that are had months sometimes 3 to 6 months in advance to them ever making the decision to build a facility or buy a facility and at no time would a tax abatement nor tax abatement going to give them... These are the incentives that we utilize to attract them to enter into the field. Councilmember Henry Davis- I'm aware of that, what I was wondering if it is a fact that in order of us to show up, we need a tax abatement or do they show up and this is what we can offer you ? Presenter (Community Investment) - No, this facility especially requested it. It's interesting that with this facility the taxes are approximately $500,000 and $600,000 depending on what's the assessment that year. Where the actually advertised lease rate for the building was $1.95. So if you think about it the taxes are almost as much as a potential lease on the building for a year. Sc it makes a huge factor in their decision to take that building in, if they take abatement especially for the first two years, where there in the red for a certain number of months while their still ramping up. They're not even in operations. It absolutely was huge factor in their decision to moving forward. In this situation it's for two years, no longer that two years. Councilmember Dieter- AJ Wright, currently owns the city lease on it right, how much do they still owe? Presenter (Community Investment) - Approximately $354,000 per year for 2022 those numbers might be off, they have seven years remaining. Councilmember Dieter- Also prior to this deal, was there also an outstanding tax bill on that building that was waived? Presenter (Community Investment) - Not that I'm aware of, the building was bought at auction. So maybe the taxes prior to bankruptcy auction that you are speaking about. Councilmember Dieter- Yes, because someone told me that, where would I find that information out? There's $500,000 worth of past previous taxes paid or that were supposedly waived or? Presenter (Community Investment) - Prior to the bankruptcy of Nobel America's, yes at that point. I'm not aware of any outstanding tax for this building that was on the Ethanol plant for the TJX building that I was unaware. And I did check the County Assessor office for those things prior to processing the abatement in town before the City Council meeting. We check that. Councilmember Schey- Just a quick question for you, and may be for the controller. The penalty that AJ Wright are paying are those being paid the redevelopment commission or funds 227? Presenter (Community Investment) - They are paid to 401 $354.000 a year and the other funding on that is used a lot to transfer is made to support the community on the development operations. Councilmember Schey- Is that the same fund as the vouch funds are received? Presenter (Community Investment) - The vouch funds, the primary dollars in that fund have gone M REGULAR MEETING MARCH 24, 2014 to the airport because they expected a lot of money regarding those options. Councilmember White- I would ask this question was asking in the committee meeting and I don't know if it was answered or not in regards to individuals who have been asking when they can start applying for the jobs and do you have a timeframe on when that would start, and where would they go? Presenter (Community Investment) - I'm not aware but we do have representatives here. Present (Lippert Components) - Good evening, as far as jobs we are always having people apply, there are many different ways that they can now, we actually have an email address which is jobskmills.ci. Lcom they can apply through our website, and they can apply in person in Goshen, though not at the new facility yet, we're still getting everything ready. We have human resources department down in Goshen which 1700 Jeffs Drive and they can apply there too. President Davis - Any other questions. Councilmember H. Davis- Well, this is the last one. There was 100 jobs first or 110, a 108 for 2014, then we go to 300 by the end of the tax abatement, if that number is not achieved. There are some penalties associated with them right? Presenter (Community Investment) - Correct, there's actually a two -fold that Councilman Schey is also on the redevelopment commission. So there is a redevelopment commission investment also on top of the tax abatement. So for the tax abatement purposes. Every May the company is required to reporting to both the county clerk and the state to be eligible for the tax abatement, if they fail to meet their committed numbers in compliance then the tax abatement can be removed. In addition for redevelopment commission dollars that are being investment the same fallbacks exist based upon the amount of project investment committed and the number of jobs committed failure to meet either of those projections will result in a fine of 1.59 dollar to investment to project. Councilmember Henry Davis - That's great, I don't understand that let that be on the record. Past practices have led me to believe that we're not best served better than we should be when those fallback are put in to play then we have not been going to, the rebuttal to the answer is that the economy is bad. And so we don't need to penalize folks who brought investment to this area because we have the answer that the economy is bad or the economy is not doing well. And so those penalties are not put on those folks who need to be penalized. So I just want to make sure that, that was out there and they understood that. Presenter (Community Investment) - The number needed to fill, bring all 305 to the best of your ability. Councilmember Henry Davis- I appreciate the best, I just want make sure that part of the business we are making sure we are nodding the guy across the table Presenter (Community Investment)- Just for clarification this is not just for labor components, this is the same basis that we have entered with every single deal with every single employer in the last 6 months and we will continue to use that a template moving forward. Public Hearing. None for or Against: Councilmember Scott made a motion to adopt this substitute Resolution. Councilmember Ferlic seconded the motion which carried and the Resolution was adopted by a roll call vote of 8 ayes. BILL NO. 14 -27 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH 29 REGULAR MEETING BILL NO. 14 -28 MARCH 24, 2014 BEND, INDIANA, COMMONLY KNOWN AS 515 WEST IRELAND ROAD AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR LOCK JOINT TUBE, LLC A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 515 WEST IRELAND ROAD AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF UP TO A (7) SEVEN -YEAR REAL PROPERTY TAX ABATEMENT FOR LOCK JOINT TUBE, LLC In addition, Councilmember Schey made a motion to be held with Bill 14 -28 for the purpose of a Public Hearing. Councilmember Ferlic seconded the motion with carried by a voice vote of eight (8) Ayes. Councilmember Ferlic- Community Investment Committee, reported that this committee held a Public Hearing on this amended bill this afternoon and voted to send it to the full Council with a favorable recommendation. Presenter (on behalf of Lock Joint Tube LLC) - President Davis and members of the council, I'm pleased to join the controller to your request your consideration and approval on the abatement tonight. Thank you for kindly reading both resolutions at the same time, I will described the projects together, this is a proposed investment of between $1.1 and $1.5 in new real estate to improvements including building an approximately 30,000 square feet to latch on to a facility on Ireland Road this will create more space as well as allow me to reconfigure some of their operations and process flows internally. Second investment is investment of more than $3.5 million payable to new manufacturing equipment and logistically distribution equipment to enhance the new product lines and allow them to enter to new product. As the council is aware, Lock Joint Tube is a steel tube manufacturer with businesses in multiple industries including automotive, furniture, constructural construction, and healthcare. This investment will allow them to retain their 193 employees that are on Ireland Road with payroll of over $10.3 million and initially hire and bring on at least 6 to 8 new jobs of a payroll of between $190 and $250,000 approximated numbers. We are happy to answer any questions that the council may have and we appreciate your support. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Scott made a motion to adopt this Resolution 14 -27. Councilmember Ferlic seconded the motion which carried and the Resolution was adopted by a roll call vote of 8 ayes. Councilmember Dieter made a motion to adopt this Resolution 14 -28. Councilmember Scott seconded the motion which carried and the Resolution was adopted by a roll call vote of 8 ayes. BILLS - FIRST READING BILL NO. 23 -14 FIRST READING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTY: THE FIRST EAST/WEST ALLEY SOUTH OF FAIRVIEW STREET FROM THE EAST RIGHT OF WAY LINE OF KALEY STREET TO THE FIRST NORTHEASTLY/ SOUTHWESTERLY ALLEY FOR A DISTANCE OF 360 FEET MORE OR LESS 30 REGULAR MEETING MARCH 24, 2014 Councilmember Henry Davis move that bill 23 -14 go to public hearing for Second and Third reading to Public Works and Vacations Committee. Motion seconded by Councilmember Scott. Motion carried by a vote of (8) Ayes. BILL NO. 24 -14 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 21 OF THE SOUTH BEND MUNICIPAL CODE, ARTICLE 4, INDUSTRIAL DISTRICTS TO EXCLUDE USES ALREADY PERMITTED AS A PRIMARY USE FROM THE SPECIAL EXCEPTION USE SUBSECTION; AND MODIFYING ARTICLE 6, OVERLAY AND SPECIAL USE DISTRICTS, TO ADD ANEW SUBSECTION RELATIVE TO THE APPLICABILITY OF THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA OVERLAY ZONING DISTRICT TO PLANNED UNIT DEVELOPMENTS Councilmember White move that bill 24 -14 be moved to Area Plan. Motion seconded by Councilmember Scott. Motion carried by a vote of (7) Ayes and 1 Nay Councilmember H. Davis BILL NO. 25-14 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 WEST CALVERT STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR NOBEL AMERICAS SOUTH BEND ETHANOL LLC Councilmember Henry Davis made a motion to move bill 25 -14 go to Area Plan Commission. Motion seconded by Councilmember White. Motion carried by a vote of (8) Ayes. UNFINISHED BUSINESS Councilmember Henry Davis made a motion to move Bill Number 08 -14, Bill Number 09 -14, Bill Number 10 -14, Bill Number 11 -14 and Bill Number 12 -14 goes to the Zoning Annexation Committee for second and third reading and public hearing on 4 -14 -2014. I move that it go to public hearing. Motion seconded by Councilmember Dieter. Motion carried by a vote of (8) eight ayes. Councilmember H. Davis made a motion to move Bill Number 14 -23 move to Finance for a second and third reading on 4 -14 -2014. Motion was seconded by Councilmember White all in favor say aye. All were none opposed. NEW BUSINESS Council President Oliver Davis- Monday at 5 o'clock we will have an executive session to discuss some legal matters in a community forum at 5pm and it will be done at the common council. Councilmember Henry Davis- Real quick in your mailboxes when you go back into the office area, I'm doing the South Bend learner serve challenge for 2014 for concerning violence and crime throughout the city. What I have done, I have been able to partner with a number of organizations to offer more or less a way of youth to get involved as opposed to violence. So that what I'm asking that you, that youth between the ages of 12 -14 and youth between the ages 31 REGULAR MEETING MARCH 24, 2014 of 12 -17 come on with a plan, short -term goals, long -term goals solutions for violence. The winning team of 6 gets free concert tickets and a limo ride for this particular event charity, and second place gets a free dinner for 6, and we will be able to use some the information to help with our senior local address up north. And to help produce a positive outcome for the city that they live in. That's one thing that is going on right now, put it in your mind so you will have more information on what is going on and what it looks like. And if you have some the youth that would be interested in doing that and putting a team together of 6, give it to them. The winners will be announced on the 14th and the submission is April 1 Ith and the winners will be announced April 14th. There was a question about jobs that were coming in I don't know how we are going to qualify those needs, positions given to the folks of South Bend. Although, a certain company may bring in 500 jobs does not mean 500 jobs for South Bend, Indiana, and so the last man that was here, God blessed them in their investment but based upon his presentation sounds like they have already taken applications, more so probably in the Elkhart area before jobs even come open in the Elkhart area, naturally those folks that are already applied for those jobs that are on the waiting list from the Elkhart area will already be getting first dibs for the jobs that happen wherever and this time it will probably be in South Bend. So my question is how does that look, for the folks in South Bend and is there a preference that is given to people if you live in South Bend, given the fact that South Bend is subsidizing some of the cost to move to South Bend if that makes sense. Say we do, we got 500 jobs in South Bend and we are growing, well not necessarily if the people of South Bend are not employed with those jobs. So it doesn't have the economic multiplier that we are looking for, so this is a point of reference and a concern as we are doing tax abatement. Council President Oliver Davis- We will be having the next discussion this year on tax abatements. So we look forward to that. I would like thank those who came yesterday who celebrated the birthday of Scott Colfax. I like to thank Deputy Mayor and Mark for being there and Ms. Kelly for being there and our communications person thank you all who took the time to plan and the council for making that an annual event for every year. Dr. Ferlic- Just one more comment about that lake or industry, I believe the reason they came here, I talk to some people about it that one we had the buildings available and two there is a labor shortage in our economy in the Goshen, Elkhart area. And we have a labor surplus, so that's one of the reasons there. Councilmember Henry Davis- I'm concerned with policy, I'm not concerned with why they came. Councilmember Tim Scott thanked Councilmember's Dieter, Oliver Davis, and White for their attendance at the NNRO Meeting. PRIVILEGE OF THE FLOOR Resident of 57112 Peachstone- Good Evening, first I would like to commend the council especially Ms. Schey for the presentation by the young woman by the Jewish Federation and by the invitation provided by our rabbi in the 18 months that I've been attending regularly the council meetings this is the first time I can remember a non - Christian invocation. I would like to encourage the council to do more of those as we certainly have more than just Christians in our community. The second item unrelated to that, I would like to point out while we have Liber Industries that are taking applications in Goshen, I would like to suggest that if the job is here in South Bend that might turn those Goshen residence in to South Bend residence. Thank you. Resident of 2617 W Frederickson St. - Ladies and gentleman of the council, I have some information that I would like to present but I would need some additional time, I would like to ask for 6 minutes to be granted. Councilmember Henry Davis made a motion to grant an additional 3 minutes, seconded by President Davis. Motion passed by voice vote of (8) Ayes. Ladies and Gentleman of the council as well as citizens of South Bend, last year I came before you asking that you would get an investigation started on the legitimacy of our former Chief of 32 REGULAR MEETING MARCH 24, 2014 Police. I present before you as documentation of facts in terms of what I found. What I want to share with you is this, the documents that you have is that they purposely broke the state law. When the Mayor hired Chief as a Chief the first state law states that are some requirements he has to go through in become a Chief, one is you have to complete and executive session, and after being out of police work for so long he has to complete what is called a press reports, there's state required for all police officers, Mayor knows that the chief know that. If you look at the documents, you will see from the beginning as he was sworn as Chief he attempted to get that stuff waved, he attempted that. All police officers myself included we have to get certain training, we have to complete that training that includes our chief of police. Chief Curley thought that he was above the law, Mayor thought that he was above the law, they knew that he did not have the requirements to maintain his duty as chief. The law states that you have a certain amount of time to get these things done, the law is clear that if you fail to get these done you are removed from that position as chief. The law is clear, if you look through the documents you will see especially on page 10, 11, 12, I numbered them. Go to page 10 really quick you will see former Chief asked for a description of the requirements state. If you go to page 11, this is the letter I wrote requesting information to determine if he completed what the state law says what he must complete, if you look on page 12, it is clear this is actually letters from the records of Indiana State Academy which states if you read it, in response to your letter in referring to my letter please be advised once, again that you have received everything that I have pertained to your initial request, you did not recent a copy of a federal completion showing that former chief completed a refresher course because we have no record that the Chief completed it. This is from the director. Former chief did not complete what the state said that he was supposed to complete. Mayor knew that and allowed Chief to continue on in that capacity as police officer as a Chief of police as well, he continues to carry wear badge, he continues to carry gun, and drive a police vehicle, even after the state law says if you do not complete these requirements you must be removed. Our Mayor broke the law, I'm just trying to point it out, but if you ask about it, office of the Mayor will say, well he was given a waiver as an executive director. Well ladies and gentlemen, city of South Bend, citizens there are two parts there's the executive training and theirs the refresher course. Chief received an extension for a waiver for the executive course, he did not receive a waiver for the hourly requirement, it says it right here. Our Mayor and former police chief broke the law and he tried to cover it up. The proof is right here ladies and gentlemen, so what I did I not only that I contacted the department of justice but the Indiana state police and ask them if they would do a formal investigation and two this matter I am seeking that they take the lead on this because crimes were committed by our Mayor he knew this. My question to you as a city council, I request that you on behalf of the citizens of South Bend initiate an additional investigation into our Mayor, because there are crimes that he committed and he knew about it. Citizens of South Bend should know what is going on and that's my request for you. Thank you. President Oliver Davis- Can you please fill out a form? Resident of 2617 W Frederickson St- Yes, I have it right here. President Oliver Davis- With you gives us the direction we should go, Mr. Voorde can you please that on to our training please. Resident of 921 W. Colfax- I apologize for delay and thank you for allowing me to speak today. At a time when money is leaving South Bend shouldn't we be making steps to improve and entice more economic deals rather than opposing more policy and bureaucracy that ties the hands or dissuading the investors to come to South Bend? If we don't have the talent pool capable of the work to be accomplished regardless of race, color, gender, and creed that burden should not fall upon the investor and the free enterprise systems. My question is does the council agree with that, second question as Congressman Davis last week and Mr. Shabazz this week commented the talent pool here in South Bend is not being employed then perhaps the council should work with organizations that are looking for our current state of South Bend's labor force when attracting outside investors not just for the things should or hopefully will come out of the high - tech parks. Councilman and city has done a great job with working with the other University in town Notre Dame, in its Eddy Street commons innovation park in attracting and developing deals that allow opportunities for launching of new high tech and high skilled jobs? My second question is what is this council doing to attract more companies and investors that are looking for the current state of our labor force? Thank you. 33 REGULAR MEETING MARCH 24, 2014 Resident of PO BOX 10205- I just have a couple questions, maybe that our council might able to work me through. I brought some issues up about the sewer insurance program now for 4 years and I was actually issued a cease and assist letter from the city legal department because we had city employees who are public workers out in the streets working and I was told that I can't sit down in the street two blocks away and take photographs as evidence or audio or video tape which I think violates my first amendment anyway but this came right from your law department. And I filed some documents back in April of 2010. A month later, in May 2010 some city people Gary, Sam, Kevin... went in to a board of a public works meeting and tried to change the sewer ordinance which is what I was complaining about and they wanted to know what they can legally change without having it brought before the council. I got this from the reading hearing shows that they came in and talked about this off the agenda and they were told they have to take it through a probationary period and had to announce it to the public and get public input, now this was in 2010 in May, July of 2010 in this cease and assist letter which was a spear factor in the paragraph that was underlined the city of South Bend has instituted a new sewer insurance program in an effort to save taxpayers money. So that tells mein 2010 they already implemented a new program and its under way so and so forth, that program did not get implement until 3 and half years later in November of 2013. I gave you guys a copy of the 23 page new agenda and new insurance program so why does it take so long for anything that is brought before this city so long to be answered, there are so many things that are unanswered from last year's council meeting, when are we ever going to get answer? Resident of P.O. Box 1976- I ask now that Mr. Robinson and Mr. Davis, the people that have come before, the citizens of South Bend told me to serve better than what we are against. All those abates the intention for a year and has been whole another thing all over the United States, all kinds of courts. The citizens have paid a crucial leader of ours and we still have no answers. Are we going to use the abatements, nobody knows, but took our tax money then paid these people to do a job. I'm a taxpayer I like to know what I'm paying for simple as that. Now let me see why the mayor of the city, who is not worthy and currently running this city but you are not doing good at this job. So next year you will be put out of us, soon as we find a candidate that we deem good enough city and look out for all taxpayers. Thank you. ADJOURNMENT There being no further business to come before the Council, President Oliver Davis adjourned the meeting at 8:40pm ATTEST: ATTEST: John Voorde, City Clerk Oliver J. Davis, President 34