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HomeMy WebLinkAbout01-12-09 Common Council Minutes REGULAR MEETING JANUARY 12, 2009 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, January 12, 2009 at 7:00 p.m. The meeting was called to order by Council President Dieter and the Invocation and Pledge to the Flag were given. ROLL CALL COUNCILMEMBERS: Present: Derek D. Dieter 1st District, President Henry Davis, Jr. 2nd District Thomas LaFountain 3rd District Ann Puzzello 4th District, Chairperson Committee of the Whole David Varner 5th District Oliver Davis 6th District, Vice-President Timothy Rouse At-Large Al “Buddy” Kirsits At-Large Karen L. White At-Large 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 December 8, 11, 29, 2008 and the January 5, 2009 meetings of the Council and found them to be correct. Therefore, we recommend the same be approved. s/Timothy A. Rouse s/David Varner s/Derek D. Dieter Councilmember White made a motion that the minutes of the December 8, 11, 29, 2008 and the January 5, 2009 meetings of the Council be accepted and placed on file. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine ayes. SPECIAL BUSINESS RESOLUTION NO. 3935-09 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PUBLICLY HONORING AND THANKING COUNCIL MEMBER AT LARGE TIMOTHY A. ROUSE FOR SERVICE AS COUNCIL PRESIDENT IN 2006, 2007, AND 2008 Whereas, the Common Council of the City of South Bend, Indiana, is proud to recognize that Timothy A. Rouse has diligently and effectively served on the South Bend Common Council as a Council Member at Large since 2006; and 1 REGULAR MEETING JANUARY 12, 2009 Whereas, the Common Council notes that Council Member Rouse is a native of South Bend; a US Marine Corps veteran; and in addition to his many duties on the South Bend Common Council has served as the Pastor of the First African Methodist Episcopal Zion Church since 1990; and Whereas, Council Member at Large Timothy A. Rouse served as Council President in 2006, 2007 and 2008 and during his three (3) years of leadership often recommended that the Common Council utilize Stephen R. Covey’s The Seven Habits of Highly Effective People which lists seven (7) principles aimed at achieving greater interdependent effectives, namely: 1.Be Proactive 2.Begin with the End in Mind 3.Put First Things First 4.Think Win/Win 5.Seek First to Understand, Then to be Understood 6.Synergize 7.Sharpen the Saw th with an 8 Habit later being developed namely “From Effectiveness to Greatness”; and Whereas, during his three (3) year tenure, Council President Rouse re-instituted Council Retreats; organized tours of the city and community partnership centers so that the Council Members could interact directly with members of the public and see first hand some of the challenges facing the City of South Bend; co-authored an ordinance which created the Community Campus Advisory Coalition which has fostered the opportunity for residents, community and college officials to discuss concerns and develop proactive solutions; and has continually stressed the need to view matters from new paradigms. Now, Therefore, be it resolved, by the Common Council of the City of South Bend, Indiana, as follows: Section I. On behalf of all of the citizens of the City of South Bend, Indiana, the Common Council hereby publicly thanks and commendsCouncil Member At Large Timothy A. Rouse,for his three (3) years of dedicated service as the President of the South Bend Common Council in 2006, 2007, and 2008 Section II. The South Bend Common Council is especially proud to recognize , and honorCouncil Member At Large Timothy A. Rouse who has provided leadership and vision as a Council Officer. The Common Council wishes Tim and his wife, Hazel, the very best in the years ahead and looks forward to continuing to work closely with him on issues which are in the best interest of the citizens of South Bend. Section III . This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. st s/Derek D. Dieter, 1 District s/Al “Buddy” Kirsits, At Large nd s/Henry Davis, Jr., 2 District s/Timothy A. Rouse, At Large rd s/Thomas LaFountain , 3 District s/Karen L. White, At-Large th s/Ann Puzzello, 4 District th s/Dr. David Varner, 5 District th s/Oliver J. Davis 6 District s/Kathleen Cekanski-Farrand, Council Attorney th Attest: Adopted this 12 day of January, 2009 s/John Voorde, City Clerk s/Stephen J. Luecke, Mayor of South Bend 2 REGULAR MEETING JANUARY 12, 2009 City Clerk John Voorde, made the presentation for this Resolution by first offering his comments and then reading the Resolution in its entirety and presenting it to Councilmember Rouse. A Public Hearing was held on the Resolution at this time. There was no one present wishing to speak to the Council either in favor of or in opposition to this Resolution. Councilmember Rouse thanked the Council for this honor. He stated that it has been a pleasure to work with the entire Council. And, that he was reminded that there are 9 Councilmember’s and the need for communication to all. He reiterated that it has been a pleasure to work with everyone and looks forward to a busy 2009. Additionally, Councilmember’s Henry Davis, Varner, Puzzello, White Oliver Davis, LaFountain, offered commends and thanked Councilmember Rouse for his years as Council President. Councilmember Varner made a motion to adopt this Resolution by acclamation. Councilmember White seconded the motion which carried. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:10 p.m. Councilmember Henry Davis made a motion to resolve into the Committee of the Whole. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember Puzzello, Chairperson, presiding. Councilmember Puzzello 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 Puzzello stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. PUBLIC HEARINGS BILL NO. 63-08 PUBLIC HEARING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 921 NORTH BENDIX DRIVE, SOUTH BEND, IN 46628, COUNCILMANIC DISTRICT 2 IN THE CITY OF SOUTH BEND, INDIANA Councilmember Oliver Davis, Vice-Chairperson, Zoning and Annexation Committee, 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 Ms. Christa Nayder, Staff Member, Area Plan Commission, 11 Floor County-City Building, South Bend, Indiana, presented the report from the Area Plan Commission. Ms. Nayder advised that the petitioner is requesting a zone change from CB Community Business District to MF2 High Density Multifamily District to allow Multifamily dwellings. She noted on site is a vacant lot. To the north are single family homes zoned SF2 Single Family and Two Family District. To the east is a restaurant and a vacant commercial building zoned CB Community Business District. To the south is a multi- tenant retail center zoned CB Community Business District. To the west is the LaSalle Branch of the St. Joseph County Pubic Library zoned CB Community Business District. The MF2 High Density Multifamily District is established to protect promote and maintain the development of high density multifamily dwellings and to provide for 3 REGULAR MEETING JANUARY 12, 2009 limited public and institutional uses that are compatible with a multifamily residential neighborhood. The development standards are designed to promote the establishment of multifamily dwelling projects with on-site amenities. The site plan shows a 20,547 square foot apartment building. This 4 story, 72 unit building will cover 23.9% of the site. Fifty-five parking spaces, covering 28,711 square feet, are shown. Open space, including patios covers the remaining 36,712 square feet. This site, as a part of the LaSalle Square area, had requested rezonings, in 2001 and 2002. Both were withdrawn. On October 3, 2008, the South Bend Redevelopment Commission accepted the LaSalle Square Plan. Ardmore Trail is a two lane road with a center turn lane. The site will be served by municipal utilities. Board of Zoning Appeals variances for the height of the building, recreational open space, and number of parking spaces have been filed for the November 20, 2008 meeting. She noted that City of South Bend City Plan dated November 2006 Objective H 1 Ensure that an adequate supply of housing is available to meet the needs, preferences, and financial capabilities of households now and in the future. Policy H 1.4: Encourage the development of a variety of housing types and care choices for seniors and disabled persons. The future Land Use Map shows this area in general as Mixed Use. She noted that the LaSalle Square Area Redevelopment plan Five Year Outlook Recommendation #3: Work with a senior housing developer to come into the Square. This development seems ideally suited to be situated in the vacant parcel to the immediate east of the LaSalle Library, which will preserve the frontage on Bendix Drive to be used for retail development. Bringing in a new development will quickly add residents, improving the likelihood of new retail development for the area. The proposed rezoning is in conformance with these policies and plans. The current site is an empty field. The most desirable use of this site is a mixed use of residential and commercial. The surrounding property values should not be affected. It is responsible development and growth to follow previously approved land use plans. Based on information available prior to the public hearing, the staff recommends that the petition be sent to the Common Council with a favorable recommendation. Ms. Nayder advised that a significant effort has been put forth into the planning for the LaSalle Square site though the South Bend Comprehensive Plan, City Plan, and more recently the LaSalle Square Redevelopment Plan. This rezoning is consistent with both those plans. Mr. John VanMeeter, Director of Development, Sterling Development, LLC, 3900 Edison Lakes Parkway, Suite 201, Mishawaka, Indiana made the presentation for this bill. Mr. VanMeeter advised that the property sought to be rezoned is located at 921 North Bendix Drive, South Bend, Indiana. The owners are Faith Apostolic Temple, Inc. and the contingent purchaser is Sterling Development, LLC. He stated that it is desired and requested that this property be rezoned from “CB” Community Business to “MF2” High- Density Multifamily District to allow multifamily dwellings (Independent Living Senior Development) He advised that the project will consist of 72 units of senior independent living, in a four (4) story structure with an estimated 7.4 million dollars in development costs. Mr. VanMeeter stated that the development will be restricted to age 55 and older. He stated that this development will be allowed through the low income housing tax credit and the affordability period will be for a thirty (30) year period. This development will be constructed with energy efficiency in mind for the resident as well as the owner. He also noted that all utilities will be included in the rent except electric. The site is approximately 1.92 acres situated between the LaSalle Branch Library and some retail located along Bendix Drive, just south of Ardmore Trail. He also noted that there will be only one entrance into each building, it will be secured with personnel during operating hours and monitored with a security camera. The parking lot will also be monitored with a security camera. Mr. VanMeeter noted that after hours the camera will monitor and be backed up on a DVR. Mr. Lance Swank, 14297 Avondale, Granger, Indiana, advised that they will have a monitoring system in each unit just in case one of the residents should fall or need assistance. It will be on a pull string and a call button that would be relayed to a monitoring system. Mr. Swank noted that the parking would be open. He noted that storage for each unit will be located on each floor. 4 REGULAR MEETING JANUARY 12, 2009 Councilmember Henry Davis urged the developer to use local contractors. Mr. VanMeeter stated that they seek out qualified developers however; they do have budget constraints, and will do everything possible to seek out local contractors who are qualified. Councilmember Henry Davis asked if this project would be a catalyst to the area as it relates to retail. Mr. VanMeeter stated that with the prior developments that they have been involved with and in some instances it does help generate retail development by virtue of the rooftops being built, such as the senior development. However, he stated that his firm is not going to be developing retail. He stated that the project could help, but thinks that it is going to take a community effort and there are going to have to be like minded investors willing to commit dollars for new retail. Councilmember Oliver Davis asked what the official name of this development is going to be. Mr. VanMeeter advised that it will be Heritage Place at LaSalle Square. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. The following individuals spoke in favor of this bill. Mr. Jerry Niezgodski, 2930 Bonds Avenue, South Bend, Indiana, advised that he is the Chairperson of the Lincolnway West Gateway Association and also a member of the LaSalle Square Steering Committee. Mr. Niezgodski stated they support this development. He questioned whether or not it would be a catalyst for retail to development. He advised that the local Farmer’s Market that was started at LaSalle Square this past summer will return this year. He stated that the market provides a vital need to the residents of the area and it is a starting place for the need for retail. He also noted that if nothing is done at LaSalle Square it will sit idle for quite a long time. He stated that if anything comes out of this it will be getting Beacon Heights cleaned up and correct the problems there. th Mayor Stephen Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, stated that he rises in support of this development and commended everyone involved in this project. He noted that partnerships go a long way and with all the hard work that has gone into rejuvenating LaSalle Square there have been victories. Some of the successes have been the petitioning of keeping the LaSalle Square Branch Library open and the expansion of that library. He stated that this development is very supportive of the plan that has been put in place for this area and believes that it will be a positive step toward further development of the LaSalle Square area. He encouraged the Council’s favorable consideration. Mr. Mark Smith, 1601 N. Fremont, South Bend, Indiana, stated that he has raised eight (8) children in this neighborhood and has watched the decline over the years in that area. Abandoned houses and businesses leaving have left the LaSalle Square Shopping Area blighted. Mr. Smith stated that to see the current energy put in the neighborhood and the surrounding area is overwhelmingly exciting for him as his children continue to grow up and attend school in the area. He is hoping that this development could be the catalyst for future retail and investment in the community. Mr. Michael Guljas, 51560 Hollyhock Road, South Bend, Indiana, stated that he is a member of the LaSalle Square Steering Committee and works at the Michiana Regional Airport. He stated that the LaSalle Square area is the first impressions of South Bend that people get who are coming into the City. This rezoning is one of the first steps in revitalizing the area. He urged the Council to vote favorably on this bill. 5 REGULAR MEETING JANUARY 12, 2009 Ms. Linda Wolfson, 809 Park Avenue, South Bend, Indiana, stated that she is a member of the LaSalle Square Steering Committee. She stated that she has communicated to the Council through numerous e-mail of her support for this development. She stated that as a member of the steering committee it was a goal to solicit support from residents in that area. She stated that at their final meeting on December 20, 2008, the weather was cold, icy and she commended all the people in attendance for coming out and asking the hard questions and getting them answered. She stated that she believes that the majority of the community is in support of this development and encourage the Council to support this particular development. th Mr. Jeff Vitton, Staff Member, Community & Economic Development Department, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, stated that it has been a pleasure to work with Councilmember Henry Davis and the LaSalle Square Steering Committee on this project. He believes that it has been a very transparent project and one of the beautiful aspects is getting people involved. He stated that over 70 people attended each of the public hearings on the planning process. He also commended the steering committee for organizing the local farmer’s market to set up at LaSalle Square. He noted that Beacon Heights was invited to participate in this project, the property manager was invited and was copied on all the e-mails that were circulated, but did decline to participate in the process, and wanted it on record that that olive branch was extended. Mr. Vitton stated that this development won’t be the answer to all the issues that surround this area; but it will certainly be a step in the right direction. The following individuals spoke in opposition to this bill. Mr. Henry L. Davis, Sr., 215 N. Sheridan Avenue, South Bend, Indiana, stated that if history and experience have taught us anything about new development housing and the effects that it has on a neighborhood, take look at West Washington Street, when they built that compound of low income housing in that area it is depleted with no retail. They say that rooftops bring retail, those people need to drive down West Washington Street between Elm and Walnut Streets and see how depleted that area is. He stated that there were residents of Beacon Heights who attended the planning meetings, there may have not been a member of the management there, but there were residents who participated and expressed their concerns regarding the development. Mr. Davis noted that it was expressed that Beacon Heights is a high crime area. He stated that the entire City of South Bend has become a high crime area. This development is not going too attracted anymore retail than the West Washington Street Development did. This is a poor area and the residents of this area need local places to shop. Those residents are forced to take their dollars elsewhere to shop and that is just not acceptable. Mr. Davis stated that better planning needs to take place in South Bend and this project is a big mistake. Councilmember Henry Davis, Jr. advised that he is not for or against this project, but that it is his job to collect all the information available and ask the questions and determine nd what is best for the residents of the 2 District. He stated that he did not appreciate the way this development was presented to the steering committee. It was confusing to the residents and those who attended the planning meetings. This is where the concept of rooftops bring retail was initiated and where the confusion came from. He stated that he has a great concern of the undeveloped land at the site and would like to be reassured that soil testing has taken place and checked for any ground contamination. Councilmember Davis stated that he would like to see the stigma of the west side eliminated. He noted nd that people say that the residents of the 2 District want this or they want that; or they don’t know what they want or it is chaotic over there. He stated that the residents need to rid themselves of negative things like that and put into place measures that will arrive at measurable outcomes. Councilmember Puzzello stated that she voted against this project at the Area Plan Commission and believes that she was the sole opposition vote. She stated that she read the e-mails, listened to the phone calls, and heard the people at the committee meeting and this evening’s meeting and now realizes the majority of the residents want this project to come to fruition. Councilmember Puzzello stated that she will be voting in favor of this bill. 6 REGULAR MEETING JANUARY 12, 2009 Councilmember Dieter made a motion 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 eight (8) ayes and one (1) nay (Councilmember Henry Davis, Jr.) BILL NO. 83-08 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CLOSING WATER LEAK INSURANCE FUND NO. 644, TRANSFERRING THE BALANCE TO WATER WORKS OPERATING FUND NO. 620, AND REPEALING ARTICLE 6 OF CHAPTER 17 OF THE SOUTH BEND MUNICIPAL CODE Councilmember LaFountain, Chairperson, Personnel and Finance 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 Ms. Catherine Fanello, City Controller, 12 Floor, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Fanello stated that this bill will close the Water Leak Insurance Fund No. 644 and repeal applicable portions of the South Bend Municipal Code. Mr. Gilot advised the Indiana Utility Regulatory Commission’s (IURC) most recent decision concerning the City of South Bend’s water rates, directed the City to cease charging a separate water leak repair/replacement fee, and to include that cost as part of the general rate. With this IURC decision, there is no further need for separate Water Leak Insurance Fund No. 644. The monies in that Fund should be transferred to Water Works Operating Fund No. 620, and the South Bend Municipal Code provisions pertaining to repair and replacement of water lines Chapter 17, Article 6, should be repealed as unnecessary. For accounting purposes, this process should be effective as of December 31, 2008. This ordinance would approve these internal accounting adjustments, and which has an effective date of December 31, 2008. The Controller will provide the Council with year-end accounting of the monies in Fund No. 644 to be transferred to Water Works Operating Fund No. 620. Mr. Gilot noted that he answered a couple of questions at the committee meeting this afternoon and went back to research his answers and would like to clarify them. First, the water leak insurance fund has not deductible. The one with the $500.00 deductible is the sewer. The second, is that it is $2.00 a month for all customer’s of the water utility to get leak insurance and the question that was raised was does that cover commercial/industrial, and the fact is that it applies to all service lines for those that are under 2” it covers everything from the main to the foundation wall of the building. For those that are over 2” diameter or greater it covers from the main to the property line only. There is no equivalent meter charge. 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 Varner asked if it would be able to segregate the cost, so that if it comes time that it has to be changed, it will be able to be justified. Mr. Gilot stated that they will be able to track this. Ms. Fanello stated that they still have the controls in place to be able to track all of the revenue expenses separately. 7 REGULAR MEETING JANUARY 12, 2009 Mr. Gilot stated that this fund has not broke even for a number of years and has been subsidized out of the general fund of the water utilities so the entire cost of the account will be accounted for separately in the water general fund. Councilmember Rouse asked if there were any intentions of raising the rates through the IURC. Mr. Gilot responded not at this time. He noted that the next time that the rate is up for review it would probably make sense for it to break even. (Councilmember Henry Davis, Jr. left the Council Chambers at this time.) 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. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. (Councilmember Henry Davis, Jr. returned to the Council Chambers at this time.) BILL NO. 87-08 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING AN ADDITIONAL $500.00 FROM SOLID WASTE CAPITAL FUND NO. 611, AND AN ADDITIONAL $75,000 FROM SEWER INSURANCE FUND NO. 640 Councilmember Dieter made a motion to hear the substitute version of this bill. Councilmember Varner seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember Oliver Davis, Chairperson, Utilities Committee, reported that this committee held a meeting this afternoon and it was the consensus of the committee to send this substitute bill to the full Council with a favorable recommendation. th Ms. Catherine Fanello, City Controller, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Fanello advised that additional funds are needed for expenditures in budget year 2008 consisting of Five Hundred Dollars ($500.00) for the Solid Waste Capital Fund No. 611 and the sum of Seventy-Five Thousand Dollars ($75,000.00) for Sewer Insurance Fund No. 640. She noted that both of these are Enterprise Funds. 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 Dieter made a motion for favorable recommendation to full Council concerning this bill as substituted. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. 8 REGULAR MEETING JANUARY 12, 2009 BILL NO. 88-08 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING AN AMORTIZED REPAYMENT SCHEDULE OUT OF TAX INCREMENT FINANCE (TIF) FUNDS OF THE LOAN FROM MAJOR MOVES FUND (#412) FOR THE DOUGLAS ROAD EXPANSION PROJECT Councilmember Varner made a motion to strike this bill from consideration at the request of the petitioner. Councilmember Dieter seconded the motion which carried by a voice vote of nine (9) ayes. RISE AND REPORT Councilmember Varner made a motion to rise and report to the full Council. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. ATTEST: ATTEST: _________________________ _________________________ John Voorde, City Clerk Ann Puzzello, 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 8:05 p.m. Council President Derek D. Dieter presided with nine (9) members present. BILLS – THIRD READING ORDINANCE NO. 9895-09 AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 921 NORTH BENDIX DRIVE, SOUTH BEND, IN 46628, COUNCILMANIC DISTRICT 2 IN THE CITY OF SOUTH BEND, INDIANA This bill had third reading. Councilmember White made a motion to pass this bill. Councilmember Varner seconded the motion which carried. The bill passed by a roll vote of eight (8) ayes and one (1) nay (Councilmember Henry Davis, Jr.) 9 REGULAR MEETING JANUARY 12, 2009 ORDINANCE NO. 9896-09 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CLOSING WATER LEAK INSURANCE FUND NO. 644, TRANSFERRING THE BALANCE TO WATER WORKS OPERATING FUND NO. 620, AND REPEALING ARTICLE 6 OF CHAPTER 17 OF THE SOUTH BEND MUNICIPAL CODE This bill had third reading. Councilmember Varner made a motion to pass this bill. Councilmember LaFountain seconded the motion which carried. The bill passed by a roll vote of nine (9) ayes. ORDINANCE NO. 9897-09 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING AN ADDITIONAL $500.00 FROM SOLID WASTE CAPITAL FUND NO. 611, AND AN ADDITIONAL $75,000 FROM SEWER INSURANCE FUND NO. 640 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 nine (9) ayes. Additionally, Councilmember Oliver Davis made a motion to pass this bill as amended. Councilmember Varner seconded the motion which carried. The bill passed by a roll call vote of nine (9) ayes. RESOLUTIONS BILL NO. 09-02 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 3511 – 3615 VOORDE DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR FORTIS PLASTICS, LLC BILL NO. 09-03 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 3511 – 3615 VOORDE DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE-YEAR REAL PROPERTY TAX ABATEMENT FOR AIC VENTURES (FORTIS PLASTICS, LLC – LESSEE) Councilmember White made a motion to combine these bills for purposes of Public Hearing. Councilmember Varner seconded the motion which carried by a voice vote of nine (9) ayes. 10 REGULAR MEETING JANUARY 12, 2009 RESOLUTION NO. 3936-09 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 3511 – 3615 VOORDE DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR FORTIS PLASTICS, 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 3511 - 3615 Voorde Drive South Bend, Indiana, and which is more particularly described as follows: Land Situated in the State of Indiana, County of St, Joseph, City of South Bend. PARCEL I: A portion of the East ½ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, and a part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at the Northeast corner of the Southeast ¼ Section 33, thence South 0 degrees, 07 minutes, 29 seconds West, along and with the East line of said Southeast Quarter of Section 33, a distance of 815.52 feet; thence North 89 degrees 40 minutes 09 seconds West, a distance of 1,348.23 feet to the intersection of the Northerly Right-of-Way line of Voorde Drive and the Westerly Right-of-Way line of proposed Progress Drive, said point being the point of beginning; thence North 0 degrees 19 minutes 51 seconds East, along and with the said Westerly Right-of-Way line of proposed Progress Drive, a distance of 455.00 feet; thence North 89 degrees 40 minutes 09 seconds West, along a line parallel with the Northerly Right-of-Way line of Voorde Drive, a distance of 250.00 feet; thence South 0 degrees 19 minutes 51 seconds West, a distance of 455.00 feet to a point on the Northerly Right-of-Way line of Voorde Drive; thence South 89 degrees 40 minutes 09 seconds East, along and with the Northerly Right-of-Way line of Voorde Drive, a distance of 250.00 feet to the place of beginning. PARCEL II: A portion of the Southeast ¼ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, in and part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at a brass plug at the center of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian; thence South 0 degrees 01 minutes 14 seconds West, a distance of 814.60 feet to the North line of Voorde Drive projected West; thence South 89 degrees 40 minutes 09 seconds East, on and along the said North line of Voorde Drive, a distance of 737.20 feet to the point of beginning; thence North 0 degrees 18 minutes 51 seconds East, a distance of 455.00 feet; thence South 89 degrees 40 minutes 09 seconds East, a distance of 302.21 feet; thence South 01 degrees 18 minutes 51 seconds West, a distance of 455.00 feet to the North line of said Voorde Drive; thence North 89 degrees 40 minutes 09 seconds West, a distance of 302.21 feet to the place beginning. EXCEPTING THERE FROM the following described real estate: A portion of the Southeast ¼ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, in and part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at a brass plug at the center of Section 33, 11 REGULAR MEETING JANUARY 12, 2009 Township 38 North, Range 2 East of the Second Principal Meridian; thence South 0 degrees 01 minutes 14 seconds West, a distance of 814.60 feet to the North line of Voorde Drive projected West; thence South 89 degrees 40 minutes 09 seconds East, on and along the said North line of Voorde Drive, a distance of 737.20 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 217.02 feet, along the West property line of Norman F. Ernsberger and LaVern D. Jessup, a General Partnership; thence South 89 degrees 40 minutes 09 seconds East, a distance of 30.24 feet to the Northwest corner of a existing building, said Northwest corner being the point of beginning for this description; thence continuing South 89 degrees 40 minutes 09 seconds East, along the North wall of said existing building, a distance of 161.00 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 134.28 feet; thence North 89 degrees 40 minutes 09 seconds West, a distance of 161.00 feet; thence South 0 degrees 18 minutes 51 seconds West, a distance of 134.28 feet to the point of beginning. PARCEL III: A portion of the Southeast ¼ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, in and part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at a brass plug at the center of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian; thence South 0 degrees 01 minutes 14 seconds West, a distance of 814.60 feet to the North line of Voorde Drive projected West; thence South 89 degrees 40 minutes 09 seconds East, on and along the said North line of Voorde Drive, a distance of 737.20 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 217.02 feet, along the West property line of Norman F. Ernsberger and LaVern D. Jessup, a General Partnership; thence South 89 degrees 40 minutes 09 seconds East, a distance of 30.24 feet to the Northwest corner of a existing building, said Northwest corner being the point of beginning for this description; thence continuing South 89 degrees 40 minutes 09 seconds East, along the North wall of said existing building, a distance of 161.00 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 134.28 feet; thence North 89 degrees 40 minutes 09 seconds West, a distance of 161.00 feet; thence South 0 degrees 18 minutes 51 seconds West, a distance of 134.28 feet to the point of beginning and which has Tax Key Numbers New Parcel 71-03-33-401-006.000-026 (Parcel I), New Parcel 71-03-33-401-007.000-026 (Parcel II) and New Parcel 71-03-33-401-008.000-026 (Parcel III) presently, be designated as an Economic Revitalization Area under the provisions of Indiana Code 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, the Department of Community and Economic Development 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 and Economic Development 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: SECTION I. The Common Council hereby determines and finds pursuant to Indiana Code 6-1.1-12.1-4.5 et seq., that: 12 REGULAR MEETING JANUARY 12, 2009 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 II. 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 and Economic Development, and the Community and Economic Development 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 five (5) years. 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. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council 13 REGULAR MEETING JANUARY 12, 2009 RESOLUTION NO. 3937-09 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 3511 – 3615 VOORDE DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE-YEAR REAL PROPERTY TAX ABATEMENT FOR AIC VENTURES (FORTIS PLASTICS, LLC – LESSEE) 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 3511 - 3615 Voorde Drive, South Bend, Indiana, and which is more particularly described as follows: Land Situated in the State of Indiana, County of St, Joseph, City of South Bend. PARCEL I: A portion of the East ½ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, and a part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at the Northeast corner of the Southeast ¼ Section 33, thence South 0 degrees, 07 minutes, 29 seconds West, along and with the East line of said Southeast Quarter of Section 33, a distance of 815.52 feet; thence North 89 degrees 40 minutes 09 seconds West, a distance of 1,348.23 feet to the intersection of the Northerly Right-of-Way line of Voorde Drive and the Westerly Right-of-Way line of proposed Progress Drive, said point being the point of beginning; thence North 0 degrees 19 minutes 51 seconds East, along and with the said Westerly Right-of-Way line of proposed Progress Drive, a distance of 455.00 feet; thence North 89 degrees 40 minutes 09 seconds West, along a line parallel with the Northerly Right-of-Way line of Voorde Drive, a distance of 250.00 feet; thence South 0 degrees 19 minutes 51 seconds West, a distance of 455.00 feet to a point on the Northerly Right-of-Way line of Voorde Drive; thence South 89 degrees 40 minutes 09 seconds East, along and with the Northerly Right-of-Way line of Voorde Drive, a distance of 250.00 feet to the place of beginning. PARCEL II: A portion of the Southeast ¼ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, in and part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at a brass plug at the center of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian; thence South 0 degrees 01 minutes 14 seconds West, a distance of 814.60 feet to the North line of Voorde Drive projected West; thence South 89 degrees 40 minutes 09 seconds East, on and along the said North line of Voorde Drive, a distance of 737.20 feet to the point of beginning; thence North 0 degrees 18 minutes 51 seconds East, a distance of 455.00 feet; thence South 89 degrees 40 minutes 09 seconds East, a distance of 302.21 feet; thence South 01 degrees 18 minutes 51 seconds West, a distance of 455.00 feet to the North line of said Voorde Drive; thence North 89 degrees 40 minutes 09 seconds West, a distance of 302.21 feet to the place beginning. EXCEPTING THERE FROM the following described real estate: 14 REGULAR MEETING JANUARY 12, 2009 A portion of the Southeast ¼ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, in and part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at a brass plug at the center of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian; thence South 0 degrees 01 minutes 14 seconds West, a distance of 814.60 feet to the North line of Voorde Drive projected West; thence South 89 degrees 40 minutes 09 seconds East, on and along the said North line of Voorde Drive, a distance of 737.20 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 217.02 feet, along the West property line of Norman F. Ernsberger and LaVern D. Jessup, a General Partnership; thence South 89 degrees 40 minutes 09 seconds East, a distance of 30.24 feet to the Northwest corner of a existing building, said Northwest corner being the point of beginning for this description; thence continuing South 89 degrees 40 minutes 09 seconds East, along the North wall of said existing building, a distance of 161.00 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 134.28 feet; thence North 89 degrees 40 minutes 09 seconds West, a distance of 161.00 feet; thence South 0 degrees 18 minutes 51 seconds West, a distance of 134.28 feet to the point of beginning. PARCEL III: A portion of the Southeast ¼ of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian, in and part of the City of South Bend, in St. Joseph County, Indiana, more particularly described as follows: Commencing at a brass plug at the center of Section 33, Township 38 North, Range 2 East of the Second Principal Meridian; thence South 0 degrees 01 minutes 14 seconds West, a distance of 814.60 feet to the North line of Voorde Drive projected West; thence South 89 degrees 40 minutes 09 seconds East, on and along the said North line of Voorde Drive, a distance of 737.20 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 217.02 feet, along the West property line of Norman F. Ernsberger and LaVern D. Jessup, a General Partnership; thence South 89 degrees 40 minutes 09 seconds East, a distance of 30.24 feet to the Northwest corner of a existing building, said Northwest corner being the point of beginning for this description; thence continuing South 89 degrees 40 minutes 09 seconds East, along the North wall of said existing building, a distance of 161.00 feet; thence North 0 degrees 18 minutes 51 seconds East, a distance of 134.28 feet; thence North 89 degrees 40 minutes 09 seconds West, a distance of 161.00 feet; thence South 0 degrees 18 minutes 51 seconds West, a distance of 134.28 feet to the point of beginning. and which has Key Numbers New Parcel 71-03-33-401-006.000-026 (Parcel I), New Parcel 71-03-33-401-007.000-026 (Parcel II) and New Parcel 71-03-33-401-008.000-026 (Parcel III) presently at this point and 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 Code Sections 2-76 et seq., and; WHEREAS, the Department of Community and Economic Development 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 and Economic Development Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. 15 REGULAR MEETING JANUARY 12, 2009 NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as 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 expected to yield benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration, 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. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of five (5) years. 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. 16 REGULAR MEETING JANUARY 12, 2009 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. s/Derek D. Dieter Member of the Common Council Mr. Ty Scopel, Vice President & General Manager, Fortis Plastics, LLC., 2965 LaVanture Place, Elkhart, Indiana, made the presentation for these bills. Mr. Scopel advised that Fortis Plastics and AIC Ventures are proposing to renovate and equip an approximate 92,250 square foot building for the manufacture of plastic components used in a variety of industrial and consumer applications. The building has been vacant over one year. It is owned by AIC Ventures and will be leased to Fortis Plastics. Fortis uses both injection molding and extrusion production systems to produce its plastic products. The company is weighing the consolidation of its existing Elkhart operations to South Bend or to Henderson, Kentucky. The South Bend site requires renovation of the building and installation of equipment. The renovation includes the installation of docks, office build out/remodeling, new sprinkler system installation, electrical upgrades, HVAC improvements and reception area build out. The equipment to be purchased includes new and used plastic injection mold machines and extruders, computers, IT infrastructure and servers. The used equipment would be acquired from outside the State of Indiana. He stated that the total cost of the renovation is estimated at $1,277,000 and the equipment is estimated at $2,218,900. A Public Hearing was held on these Resolutions at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to these Resolutions. Councilmember Rouse made a motion to adopt Bill No. 09-02. Councilmember LaFountain seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. Councilmember Oliver Davis made a motion to adopt Bill No. 09-03. Councilmember Varner seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. RESOLUTION NO. 3938-09 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 1728 NORTH IRONWOOD DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A THREE-YEAR REAL PROPERTY TAX ABATEMENT FOR ROBERT R. LEE (C.E.LEE COMPANY, INC.) 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 1728 North Ironwood Drive, South Bend, Indiana, and which is more particularly described as follows: 17 REGULAR MEETING JANUARY 12, 2009 Part of the Northeast Quarter (1/4) of the Southeast Quarter (1/4) of Section 32, Township 38 North, Range 3 East, described as beginning at a point three hundred five (305) feet North of the South one-eighth (1/8) corner of the West boundary of said Section; thence East one hundred ninety-four (194) feet; thence South sixty (60) feet parallel to the West boundary of said Section; thence West one hundred ninety-four (194) feet to the West boundary of said Section; thence North sixty (60) feet to the place of the beginning; and which has Key Number 024-1001-0410 presently at this point and 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 Code Sections 2-76 et seq., and; WHEREAS, the Department of Community and Economic Development 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 and Economic Development 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: 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 expected to yield benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration, the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits 18 REGULAR MEETING JANUARY 12, 2009 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. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of three (3) years. 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. s/Derek D. Dieter Member of the Common Council Councilmember Timothy A. Rouse, 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 a favorable recommendation. Mr. Robert R. Lee, 19410 Edinburgh Drive, South Bend, Indiana, made the presentation for this bill. Mr. Lee advised that he is proposing to construct a new retail facility to be leased by C.E. Lee Company, Incorporated. C.E. Lee Company, a retail decorating center, has been established in South Bend since 1872. They sell several different brands of pain, window treatments, and wall coverings. Customers consist of individual homeowners as well as many paint contractors and maintenance accounts. He advised that on April 22, 2008, their retail store at 1728 North Ironwood Drive was destroyed by fire. Mr. Lee noted that his local insurance agent failed to provide accurate replacement cost estimates, and found himself underinsured after the fire. He advised that replacement costs for the building, equipment, and inventory total $687,000. The company has received $485,000 in insurance proceeds and intends to finance the remainder of the project with a loan from st 1 Source Bank. The new building will be built on the old site but the size of the building will be doubled to allow for a projected increase in both sales and staff. He stated that the new building will be approximately 6,800 square feet in size and will have two stories; the old building contained approximately 2, 700 square feet all on one level. Mr. Lee noted that the special exception is because the additional cost to rebuild due to being underinsured is $205,000 and the revenue loss resulting from the fire was over $100,000. He noted that they had discussed moving to another location but preferred to stay in South Bend at the present site where they have been a part of the City for 136 years. 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 Kirsits made a motion to adopt this 19 REGULAR MEETING JANUARY 12, 2009 Resolution. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. RESOLUTION NO. 3939-09 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 719 AND 725 TURNOCK STREET AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A (5) FIVE-YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR NORTHEAST NEIGHBORHOOD REVITALIZATION ORGANIZATION, INC. AND WEISS HOMES, INC. WHEREAS, a Statement of Benefits and a petition for residential real property tax abatement have been submitted to and 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 719 and 725 Turnock Street, South Bend, Indiana, and which is more particularly described as follows: A part of the West half of the Southeast quarter of Section 1, Township 37 North, Range 2 East, Portage Township, City of South Bend, St. Joseph County, Indiana, more particularly described as follows: Lots D and E of Turnock’s subdivision of a part of Turnock and Mack’s addition to the City of South Bend as recorded in Plat book 9, page 82, in the Office of Recorder of said county. Also including the North 7 feet of a 14 foot wide alley being the first east-west alley lying south of Kalorama Street between Turnock Street and the first North-South alley east of North St. Louis Boulevard. Subject to rights-of-way, easements, covenants, and restrictions of record. , and this property has Tax Key Numbers 18-5034-1224 and 18-5034-1225be designated as a Residentially Distressed Area under the provisions of Indiana Code 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS, the Department of Community and Economic Development has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as a Residentially Distressed 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 and Economic Development Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as a Residentially Distressed Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I . The Common Council hereby determines and finds that the petition for real property tax abatement and the Statement of Benefits form meet the requirements of Indiana Code 6-1.1-12.1 et seq., for tax abatement. 20 REGULAR MEETING JANUARY 12, 2009 SECTION II. The Common Council hereby determines and finds that the area meets one of the following conditions as formally established in Ordinance No. 9394-03, which was passed on February 10, 2003: A. The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or B. Any dwellings in the area are not permanently occupied and are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or C. Parcels of property in the area: i. have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or ii. are owned by a unit of local government; or D. A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or E. A significant number of dwelling units within the area are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or F. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the areas are owned by Indiana or the United States; or, G. The area (plus any areas previously designated under this subsection) will not exceed ten percent (10%) of the total area within the Council’s jurisdiction. SECTION III. The Common Council also hereby determines and finds the following: A. That the description of the proposed redevelopment meets the applicable standards for such development. B. That the estimate of the value of the redevelopment is reasonable for projects of this nature; C. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment; and D. 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. E. The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability. F. The deduction will not be allowed unless the dwelling rehabilitation is completed within five (5) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION IV. The Common Council hereby determines and finds that the proposed described redevelopment can be reasonably expected to yield benefits identified in the Statement of Benefits and the petition for real property tax abatement consideration and that the Statement of Benefits form prescribed by the State Board of Accounts are sufficient to justify the deduction granted under Indiana Code 6-1.1-12.1-3. SECTION V. The Common Council hereby accepts the report and recommendation of the Community and Economic Development Committee that the area herein described be designated as a Residentially Distressed Area and hereby adopts a Resolution designating this area as a Residentially Distressed Area for purposes of real property tax abatement. SECTION VI. The designation as a Residentially Distressed Area shall be limited to five (5) calendar years from the date of the adoption of this Resolution by the Common Council. 21 REGULAR MEETING JANUARY 12, 2009 SECTION VII. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of five (5) years. SECTION VIII. 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 IX. Pursuant to Indiana Code 6-1.1-12.1-2, the rehabilitation must meet all local code standards for habitability as a specific condition of having such property designated as a residentially distressed area. SECTION X. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Timothy A. Rouse, 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 a favorable recommendation. Mr. Derek J. Spier, AICP, Abonmarche Consultants, LLC., 750 Lincoln Way East, South Bend, Indiana, made the presentation on behalf of the owner Northeast Neighborhood Revitalization Organization, Inc., and the contingent owner Weiss Homes, Inc. Mr. Spier advised that the Northeast Neighborhood Revitalization Organization, Inc., and Weiss Homes, Inc. intend to construct to 1,300 square foot, single-family, owner- occupied homes. Each home will have three bedrooms and two to two and a half- bathrooms plus a two car attached garage. The homes will have basements which may be finished or unfinished depending on the buyer’s preference. The cost of the two homes will be approximately $140,000 each. The homes will be urban in-fill type. Mr. Spier noted that the homes are not located in the residential TIF district of the Northeast Neighborhood Development Area. 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 Oliver Davis made a motion to adopt this Resolution. Councilmember Varner seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. RESOLUTION NO. 3940-09 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROVING AN INTERLOCAL AGREEMENT WITH THE CITY OF MISHAWAKA, INDIANA CONCERNING THE CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS TO DOUGLAS ROAD WHEREAS, Indiana Code §36-1-7-1 et seq. (“interlocal Cooperation Act”) provides that a power that may be exercised by an Indiana political subdivision and by one or more other governmental entity may also be exercised by one or more entity on behalf of the other or jointly, upon the entities entering into a written agreement that has been approved by proper resolution; and 22 REGULAR MEETING JANUARY 12, 2009 WHEREAS, the City of South Bend (“South Bend”) and the City of Mishawaka (“Mishawaka”) are each municipal corporations existing and operating as political subdivisions of the State of Indiana as defined by Ind. Code §36-1-2-13 and are authorized enter into a interlocal agreement pursuant to Ind. Code §36-1-7-4; and WHEREAS, Mishawaka and South Bend now desire to enter into an agreement providing for road improvements on Douglas Road at the corporate limits of the cities of South Bend and Mishawaka (“Project”) which agreement is attached hereto and incorporated herein as Exhibit “A”; and WHEREAS, the Agreement meets the requirements of Ind. Code §36-1-7-3. NOW, THEREFORE, AND IN ACCORDANCE WITH THE AUTHORITY GRANTED BY THE CITY OF SOUTH BEND INDIANA, UNDER INDIANA CODE 36-1-7-1 ET. SEQ., BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: Section 1. The Common Council of the City of South Bend has considered and hereby approves and ratifies the Interlocal Agreement By and Between the City of South Bend, Indiana and the City of Mishawaka, Indiana related to the Douglas Road Project that is attached hereto as Exhibit “A” and authorizes the Mayor or the City Controller to execute the Interlocal Agreement on behalf of the City of South Bend. Section 2. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Varner, Chairperson, Public Works and Property Vacation 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. Don Inks, Director Economic Development Department, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Inks advised that the bill would approve the Interlocal Agreement between South Bend and Mishawaka for the widening of Douglas Road. Financing for this project is in part coming from a loan from Mishawaka in the amount of $1,150,000. This loan will be repaid over 20 years with 5% interest from TIF revenues generated by development in the Douglas Road TIF area. Mishawaka will also provide $250,000 for payment of project expenses directly related to Mishawaka. City of South Bend Major Moves funds in the amount of $1,000,000 and $700,000 of South Bend Sewer Capital will also be used to fund this project. The Major Moves funds are to be reimbursed with 5% interest form the area’s TIF revenues. Mr. Inks advised that when this TIF area was established it was for the purpose of stimulating development and to pay for the widening of Douglas Road which was necessary to spur the development. 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 Puzzello made a motion to adopt this Resolution. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. (Councilmember Kirsits left the Council Chambers at this time.) 23 REGULAR MEETING JANUARY 12, 2009 BILLS, FIRST READING BILL NO. 01-09 FIRST READING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 2013 FORD ST., SOUTH BEND, IN 46619, COUNCILMANIC DISTRICT 6 IN THE CITY OF SOUTH BEND, INDIANA This bill had first reading. Councilmember White made a motion to refer this bill to the Area Plan Commission. Councilmember Puzzello seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 02-09 FIRST READING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 744 SOUTH MAIN STREET, COUNCILMANIC DISTRICT SIX (6) IN THE CITY OF SOUTH BEND, INDIANA This bill had first reading. Councilmember Puzzello made a motion to refer this bill to the Area Plan Commission. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. (Councilmember Kirsits returned to the Council Chambers at this time.) BILL NO. 03-09 FIRST READING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTIES: THE ALLEYS TO BE VACATED ARE DESCRIBED AS THE FIRST EAST- WEST 14 FT. WIDE ALLEY NORTH OF MONROE STREET, RUNNING EAST FROM THE EAST RIGHT-OF-WAY LINE OF SOUTH MAIN STREET, FOR A DISTANCE OF APPROXIMATELY 165 FEET + AND THE FIRST NORTH- SOUTH 14 FOOT WIDE ALLEY EAST OF SOUTH MAIN STREET, RUNNING NORTH FROM THE NORTH RIGHT-OF- WAY LINE OF MONROE STREET FOR A DISTANCE OF APPROXIMATELY 198 FEET + LOCATED DIRECTLY NORTH AND EAST OF LOTS 28, 29 AND 30. THE STREET TO BE VACATED IS A PORTION OF MICHIGAN STREET, SOUTH FROM WESTERN AVENUE APPROXIMATELY 250 FEET This bill had first reading. Councilmember Puzzello made a motion to refer this bill to the Public Works and Property Vacation Committee and set it for Public Hearing and Third Reading on January 26, 2009. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. UNFINISHED BUSINESS 24 REGULAR MEETING JANUARY 12, 2009 REPORTS FROM BOARD OF ZONING APPEALS BILL NO. 09-96 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A PETITIONER OF THE SOUTH BEND BOARD OF ZONING APPEALS FOR THE PROPERTY LOCATED AT 1713 AND 1717 BURDETTE STREET, SOUTH BEND, INDIANA, 46637 Councilmember Varner made a motion to accept the substitute version of this bill as on file in the Office of the City Clerk. Councilmember White seconded the motion which carried by a voice vote of nine (9) ayes. Additionally, Councilmember Varner made a motion to refer this bill to the Zoning & Annexation Committee and set it for Public Hearing and Third Reading on January 26, 2009. Councilmember LaFountain seconded the motion which carried by a voice vote of nine (9) ayes. NEW BUSINESS Council President Derek Dieter advised that he would like to ask Councilmember Karen White, Chairperson, Health and Public Safety Committee to hold a committee meeting regarding the calls for service to the Beacon Heights Apartment Complex. He stated that from 2007 to 2008 there have been one-thousand (1,000) calls. PRIVILEGE OF THE FLOOR There was no one present wishing to address the Council at this time. ADJOURNMENT There being no further business to come before the President Derek D. Dieter adjourned the meeting at 8:43 p.m. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Derek D. Dieter, President 25