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HomeMy WebLinkAbout02-23-09 Common Council Minutes REGULAR MEETING FEBRUARY 23, 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, February 23, 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 February 9, 2009 meetings of the Council and found them to be correct. Therefore, we recommend the same be approved. s/Derek D. Dieter s/David Varner Councilmember Puzzello made a motion that the minutes of the February 9, 2009 meetings of the Council be accepted and placed on file. Councilmember Henry Davis, Jr. seconded the motion which carried by a voice vote of nine ayes. SPECIAL BUSINESS WELCOME BOY SCOUT TROOPS 505 AND 555 Council President Dieter welcomed Boy Scout Troop 505 from St. Joseph Church, South Bend, and Boy Scout Troop 555 from St. Pius Church, Granger, Indiana. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:04 p.m. Councilmember White made a motion to resolve into the Committee of the Whole. Councilmember LaFountain 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. 1 REGULAR MEETING FEBRUARY 23, 2009 PUBLIC HEARINGS BILL NO. 04-09 PUBLIC HEARING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTY: 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 Councilmember Varner, Chairperson, Public Works and Property Vacation 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. Councilmember Puzzello disclosed that she is a member of the Northeast Neighborhood Revitalization Organization (NNRO) and after discussion with Council Attorney Kathleen Cekanski-Farrand it was determined that there is no conflict of interest regarding this bill. Mr. Derek Spier, Planner, Abonmarch Consultants, LLC., 750 Lincoln Way East, South Bend, Indiana, made the presentation for this bill. Mr. Spier advised that he had sent a letter and map to Mr. & Mrs. Weymon and hand delivered copies to the Council and Clerk addressing the concerns that were brought up at the February 9, 2009 Council Meeting, regarding the proposed alley vacation. Mr. Spier stated that essentially there will be continued access to the Weymon’s garage at 720 N. St. Louis Boulevard via the 14’ wide north-south alley located immediately east of the Weymon’s property. The vacation of this alley will prevent the Weymon’s from accessing Turnock Street from the alley to be vacated. However, there is another alley located approximately 150’ south of the alley to be vacated which provides easterly access to Turnock Street. This vacation would allow two new homes to be construction upon the vacant lots to the north of the vacated right-of-way. Without the vacation, only one new home could be constructed due to the narrow lot widths. Mr. Spier indicated that with the construction of the two new homes would be a greater benefit to the neighborhood. It has the potential to increase adjacent property values and spur additional residential development with the neighborhood. Mr. Spier reiterated that the homes are being developed through a partnership between Weiss Homes, Inc., The South Bend Heritage Foundation, and the Northeast Neighborhood Revitalization Organization. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There was no one present wishing to speak to the Council in favor of this bill. The following individual spoke in opposition to this bill. Mrs. Delois Weymon, 720 N. St. Louis Boulevard, South Bend, Indiana, spoke in opposition to this bill. Ms. Weymon advised that she is against the closing of this alley. She stated that it would be an inconvenience to her and her husband. She also indicated that the construction of two homes would make the area too congested. In Rebuttal, Mr. Spier reiterated that the vacation of this alley benefits not only Weiss Homes, the NNRO and South Bend Heritage but the entire neighborhood has the potential as well. 2 REGULAR MEETING FEBRUARY 23, 2009 Councilmember’s Oliver Davis, White, Rouse and Henry Davis express their displeasure with the way Mr. Spier handled this situation. The advised that at the last Council meeting Mr. Spier was advised to contact the Weymon’s to discuss a possible resolve. However, they felt that the issue at hand was not properly address. Mr. Spier apologized to the Weymons and the entire Council. He reiterated that he had sent a letter to the Weymon’s and asked for them to call him with any questions regarding the letter and map. Mr. Spier then advised that Mr. Brian Miller from Weiss homes was to contact the Weymons’ as a follow up. Mr. Spier asked for a continuance of this bill until the March 9, 2009 meeting of the Council. He stated that he would set up a meeting th date and time with Mr. & Mrs. Weymon and Councilmember Puzzello, 4 District, and anyone else who would like to meet to discuss a resolution to this vacation. Councilmember Dieter made a motion to continue this bill until the March 9, 2009 meeting of the Council at the request of the petitioner. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 05-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $43,500.00 FROM COUNTY OPTION INCOME TAX (COIT) FUND #404 TO PROVIDE RENT SUPPLEMENT TO THE FAMILY VIOLENCE/SPECIAL VICTIMS UNIT Councilmember LaFountain, Chairperson, Personnel & Finance Committee, along with Councilmember White, Chairperson, Personnel & Finance Committee reported that these committees met jointly this afternoon and it was the consensus of the two committees to send this bill to the full Council with a favorable recommendation. Councilmember LaFountain disclosed that he used to work for Mr. Dvorak in the St. Joseph County Prosecutor’s Office, Division of the Family Violence/Special Victims Unit and after discussion with Council Attorney Kathleen Cekanski-Farrand it was determined that no conflict exits on this issue. th Mayor Stephen J. Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mayor Luecke advised that The Family Violence/Special Victims Unit (FV/SVU) is a valuable community resource, located in South Bend, which, among other things, helps victims of family violence obtain civil protective orders. Unfortunately, the FV/SVU’s full funding ended December 31, 2008, and while FV/SVU procured a funding grant in 2009, it does not cover the FV/SVU’s rent for its building at 711 E. Colfax Avenue. Mayor Luecke stated that this bill would allow for the appropriation of $43,500 to cover half the FV/SVU’s rent expense in 2009. Mayor Luecke also stated that this ordinance represents an effective partnership with St. Joseph County government which is sharing with South Bend half the 2009 rental expense of the FV/SVU. th Mr. Michael Dvorak, St. Joseph County Prosecutor, 60 Judicial Circuit, St. Joseph th County, Indiana, 7 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana. Mr. Dvorak stated that the activities of the St. Joseph County Prosecutor’s Office directly impact public safety and the welfare of our community and as such affect the quality of life for citizens in all parts of the County, including constituents in South Bend. Mr. Dvorak advised that throughout his administration, he has made efforts to improve the efficiency and effectiveness of complex investigations, including those of rape/sexual assaults, domestic violence, and child abuse. He stated that he has worked with the South Bend, St. Joseph County, and Mishawaka Police Departments to reorganize the “STOP Unit” into the Family Violence/Special victims Unit. The FV/SVU includes 25 3 REGULAR MEETING FEBRUARY 23, 2009 county/city employees: 5 deputy prosecuting attorneys, 2 paralegals, 3 clerical support staff, 2 victim advocates, 2 prosecutor’s investigators, and 11 police detectives from South Bend, St. Joseph County, and Mishawaka Police Departments. He noted that of the eleven police detectives assigned to the FV/SVU, seven are assigned by the South Bend Police Department. In 2007, the FV/SVU investigated a total of #,676 cases, of which 2,354, or 64%, originated in the City of South Bend. The statistics for 2008 are still being complied; however, the percentage of cases originating in South Bend is consistent with previous years. Mr. Dvorak noted that the FV/SVU is funded by a grant through the Indiana Criminal Justice Institute, prosecutor’s diversion/deferral user fees, and taxpayer dollars. It is important to note that consolidating these investigations into one Unit was done without increased cost to county or city taxpayers. This consolidation of government services is consistent with the recommendations of the Kernan-Shepard report, published earlier this year. We have co-located highly trained investigators and prosecutorial staff members in a single unit, dedicated to the investigation and prosecution of these crimes against women and children. Until 2007, the FV/SVU was housed on the second floor of the CASIE Center Building, at no cost to the County or Cities. However, the space became and remains insufficient for the staff of the FV/SVU. With the receipt of the President’s Family Justice Center Initiative grant award, the FV/SVU was able to relocate, without incurring rent costs, to the Family Justice Center building. The Family Justice Center secured a two-year lease of the former United Health Services building located at 711 East Colfax Avenue, South Bend, Indiana. This lease included space for the FV/SVU on the second floor of the building; the terms of the lease expired at the end of December 2008. The Family Justice Center spent over $105,000 in grant funds to make the building compliant with ADA standards, to add a medical exam room, and to install telephone and network cables necessary for the staff to perform their work tasks. Additionally, a $25,000 security system was installed, at no labor cost, by the Notre Dame Security Police Department. The FV/SVU has grown, due to an increase in the number of these cases reported in St. Joseph County: in 2003, there were 3,177 cases investigated and in 2007, there were 3,676 cases investigated, a 15.7% increase. It is perhaps because of the co-location of police detectives, from the three major police departments, with deputy prosecutors and support staff that it has not become necessary to increase the number of staff at the rate that the caseload has increased. Members of the FV/SVU are dedicated to conducting thorough investigations and prosecutions of those crimes that affect the most vulnerable members of our community. They continue to do so while seeing an increase in the number of cases referred by local law enforcement. Mr. Dvorak noted that on December 16, 2008, in a public hearing, in a 7-0 vote, the St. Joseph County Council passed Ordinance 112-08, appropriating $43,500 from the “Rainy Day” fund to pay rent for the FV/SVU for 2009. On December 23, 2008, the St. Joseph Commissioner approved the ordinance in a 3-0 vote. In the ordinance, Section 2 reads: “This ordinance shall be in full force and effect contingent upon an appropriation from the City of South Bend for $43,500 from and after its passage and approval as required by law.” The St. Joseph County Council and Commissioners, under the terms of their Ordinance, cannot issue a check to the owner of the building located at 711 East Colfax to pay rent for the FV/SVU until and “Appropriation” is made by the City of South Bend. Mr. Dvorak urged the Council to pass this bill. He stated that now they are at a crossroads, needing funding to pay the rent in order for the FV/SVU to remain in their offices. He stated that to regress by dismantling the FV/SVU, would led to not having the quality of investigations that have lead to successful prosecutions. He stated that the safety of women and children in the community depends on the success of the FV/SVU in partnership with the not-for-profit Family Justice Center. Councilmember’s Varner and Dieter expressed their concerns that the City of Mishawaka is holding up their end of the bargain. They stated that they have a stake in this unit also and it is their responsibility to pay their contribution to this joint unit. Councilmember’s Varner and Dieter stated that they would be voting in favor of this bill, however, the very emphatically express to Mr. Dvorak that other revenue streams would have to be looked at for the next year. They explained that due to HB 1001, the City is looking at a deficit and will be cutting funding to various departments. 4 REGULAR MEETING FEBRUARY 23, 2009 Councilmember Henry Davis asked if the Prosecutor’s Office has prioritized this division as a want or a need. Councilmember’s Rouse, Puzzello and Dieter stated that they believe the FV/SVU is a great credit to the City of South Bend and St. Joseph County. Councilmember Oliver Davis stated that as a Social Worker in the community this unit is a great asset to St. Joseph County and the City of South Bend and Mishawaka. He advised that he would like to see the City of Mishawaka pitch in and pay for their share of the service that this unit provides. He stated that Mayor Rea advised that during budget time the City of Mishawaka was in good financial shape and did not need LOIT for funding of their 2009 or 2010 budget. He stated that if this was the case then they should have no problem with coming up with their portion of the rent payment. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There was no one present wishing to speak in favor of this bill. The following individuals spoke in opposition to this bill. Kelly Havens, 12023 Timberline Trace, Granger, Indiana, spoke in opposition to this bill. She stated that because of the local government levying taxes and putting that burden on the tax payers to pick up the deficits that the County and Cities are creating this kind of appropriation should not be allow. She questioned the size of the FV/SVU unit. She asked does an entity of this nature need to be this large? She urged the Council to vote against this bill. Rita Kopala, 66559 Ivy Road, Lakeville, Indiana, stated that she watches Politically Speaking on public television. She advised that they make fun of South Bend Politics and all their frivolous spending. She stated that the City needs to prioritize and make the tough decisions on what is really important. She stated that she doesn’t agree with this bill. In Rebuttal, Mr. Dvorak reiterated that this unit protects the most vulnerable in this community, women and children. He noted that 13% of the cases were for domestic violence alone, and noted that this percentage does not include, rape, batteries and child abuse. He urged the Council’s favorable consideration. Councilmember Dieter made a motion for favorable recommendation to the full Council concerning this bill. Councilmember LaFountain seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 09-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $25,000.00 FROM THE MORRIS PERFORMING ARTS CENTER IMPROVEMENT FUND FOR THE PURCHASE OF NECESSARY SERVICE, REPAIR, AND REPLACEMENT OF THE HOT WATER HEATER AND 120 GALLON STORAGE TANK IN THE MECHANICAL ROOM OF THE MORRIS PERFORMING ARTS CENTER (FUND NUMBER 416) Councilmember Puzzello, Chairperson, PARC Committee reported that this Committee held a public hearing on this bill this afternoon and sends it to the full Council with a favorable recommendation. 5 REGULAR MEETING FEBRUARY 23, 2009 Mr. Dennis Andres, Executive Director, The Morris Performing Arts Center, 211 N. Michigan Street, South Bend, Indiana, made the presentation for this bill. Mr. Andres advised that this bill would allow for the appropriation of $25,000 within the Morris Performing Arts Center Improvement Fund (Fund 416). Mr. Andres noted that revenues from this fund are generated by the ticket surcharge and the fund is used exclusively for capital improvements such as renovation, remodeling, and specifically. Mr. Andres stated that this appropriation would allow for the service, repair, and replacement of the hot water heater and 120 gallon storage tank in the mechanical room of the Morris Performing Arts Center. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There was no one present wishing to speak to the Council in favor of this bill. The following individual spoke in opposition to this bill. Kelly Havens, 12032 Timberline Trace, Granger, Indiana, spoke in opposition to this bill. Ms. Havens questioned how important is a Performing Arts Center when the City of South Bend’s budget is millions of dollars short for 2009 and 2010. She stated that this is one area that the City needs to look at to see if funding should be cut. In Rebuttal, Mr. Andres reiterated that the funds are generated by the ticket surcharge that is paid at the time tickets are purchased. He stated that no tax dollars are used in this fund, it is strictly revenue from the surcharge on the tickets sold. Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Kirsits seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 10-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $59,850.00 PLUS ADDITIONAL NOMINAL INTEREST FROM GENERAL GRANT FUND (#250) FOR ART IN PUBLIC PLACES, AND CLOSING FUND #250 Councilmember Puzzello, Chairperson, PARC Committee reported that this Committee held a public hearing on this bill this afternoon and sends it to the full Council with a favorable recommendation. Beth Leonard, Director, Financial & Program Management, Community & Economic th Development, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Leonard advised that this bill would allow for the appropriation of $59,850.00 from the General Grant Fund (#250) to carry out the purpose of the original grant from the Goheen Trust, namely to create and support Art in Public Places in the City. These funds were originally granted for various public art uses, but $59,850 remains. The intended uses include approximately $9,850 in additional art work in Jon Hunt Plaza in from the Morris Performing Arts Theatre and $50,000 to the Community Foundation in support of the year-long exhibit of the South bend native George Rickey’s sculpture on the sidewalks of downtown. Rickey is an internationally known kinetic sculptor whose work combines the technical expertise of an engineer with an artist’s vision to celebrate fluidity and movement. The exhibit is an extremely exciting event for the community and was conceived through the collaboration of the South Bend Museum of Art, the Snite Museum of Art, the Community Foundation, and the City of South Bend. 6 REGULAR MEETING FEBRUARY 23, 2009 This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to 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. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 11-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $350,000 FROM THE MAJOR MOVES FUND NUMBER 412 FOR THE ACQUISITION OF PROPERTY NEEDED FOR CONSTRUCTION OF THE AUTEN ROAD CONNECTOR Councilmember Varner, Chairperson, Public Works and Property Vacation Committee, reported that this Committee held a Public Hearing on this bill this afternoon and sends it to the full Council with a favorable recommendation as amended. Kathleen Cekanski-Farrand read an amendment into the record. She stated that this amendment should be added to the end of Section I: Said appropriation must be reimbursed in full from AEDA TIF monies upon the completion of the acquisition of the Mayflower Road property by the City. Councilmember White made a motion to accept the amended version of this bill. Councilmember LaFountain seconded the motion which carried by a voice vote of nine (9) ayes. th Mr. Don Inks, Director, Economic Development, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Inks advised that this bill would allow for the appropriation of $350,000 from the Major Moves Fund (Fund #412) to allow the purchase of property in the right of way for the Auten Road Connector. He stated that the parcel is about 10 acres, immediately east of Mayflower Road, the address is 51270 Mayflower. This is the first section that is needed for the Auten Road Connector. He stated that they are pursuing the acquisition at this time because the property was voluntarily put up for sale and if they waited to pursue this at a later date they would be a new owner in the property a family that would be moved out and inconvenienced and an additional cost to the City. Mr. Inks stated that he believes it is a good move to take care of it now while it was voluntarily up for sale. He stated that they have no interest in pursuing other right of way at this time for the Auten Connector, there are other pieces of the transportation network for Portage Prairie that they are pursuing and think that there is additional development that is needed before the Auten Connector should be moved any further along. Mr. Inks noted that this action will help to complete the Portage Prairie transportation network and reiterated that it is $350,000 for the acquisition, title work, appraisal and any other related cost for the acquisition and the amendment that was read into the record indicates that TIF would be reimbursing the Major Moves Fund #412 for all of the expenditures up to the $350,000 authorized here and in doing so immediately upon completion of the acquisition. Mr. Rouse asked if the Redevelopment Commission has already authorized the reimbursement from TIF to Major Moves. Mr. Inks indicated that yes indeed the Redevelopment Commission had already appropriated the money earlier this year. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to heard. 7 REGULAR MEETING FEBRUARY 23, 2009 Mr. Paul Phair, Holladay Properties, 227 S. Main St., South Bend, Indiana, spoke in favor of this bill. Mr. Phair advised that this bill would improve and extend Auten Road to provide for increased economic development in the City of South Bend and improve the safety of the residents. He noted that he understands that the Auten Road Connector’s completion is several years away from being complete, until development justifies that construction. He urged the Council’s favorable consideration of this bill. The following individuals spoke in opposition to this bill. Rita Kopala, 61559 Ivy Road, Lakeville, Indiana, spoke in opposition to this bill. She stated that if she understands it, Holladay bought this property for $280,000. It went through Redevelopment and then it turned out to be $300,000 and now its $350,000. She stated that the City for the next three (3) years is going to be in bad financial situations and stated that this is just another bad decision. Ms. Kopala stated that developers all over the country are having problems with the sluggish economy trying to make ends meet. She advised that the City doesn’t have money to just throw away on this kind of development. Ann Jentz, 51312 Mayflower Road, South Bend, Indiana, spoke in opposition to this bill. She stated that her property is located just south of the proposed Auten Road Extension. She stated that she was never approached about selling her property and would gladly sell the house, barn and 11 acres for $350,000 lock, stock and barrel today. She also noted that her neighbor directly south of her Mr. Joseph Lichtner was not contacted to see if he was willing to sell, but said that he certainly would sell his 18 acres for $350,000. Ms. Jentz stated that bottom line that the Council needs to table this and do some negotiations because the City is being taken and it is her tax dollars in the Major Moves and TIF money that is going into this project. She urged the Council to be a little bit more careful on their decisions. Ms. Jentz stated that she doesn’t see why this developer should get this money; she stated “frankly, if Mr. Phair wants this project then why the hell isn’t he donating it.” She stated that Holladay purchased this property and she doesn’t think that the taxpayers should be on the hook for this. This road doesn’t need to be constructed, because the development is going no where. Blackthorn isn’t filled and there are many other projects in South Bend that are not filled yet either. She questioned why is the City coming out to the extreme north end and adding yet another development that is never going to be filled. Tom Zmyslo, 51042 Prairieview Way, South Bend, Indiana, spoke in opposition to this bill. Mr. Zmyslo urged the Council to vote against Bill No. 11-09 to allow $350,000 in Major Move’s monies to be spent for the Auten Road extension. He stated that no matter where the money comes from whether it’s TIF or Major Moves, or stimulus money, would be better spent to rejuvenate the infrastructure in the inner city of South Bend. Sewer lines, waters, line, curbs, sidewalks, streets, electric lights, bridges etc. He stated that President Obama stated that politicians need to be held accountable for their actions. He stated that he tries to follow that and believes that he does a good job doing that. He stated that the City of South Bend is really being neglected. This money should not be used for pet projects for a road going nowhere and for a developer. He stated that when Blackthorn was constructed back in 1990 on 3,500 acres and was supposed to be the center of industrial employment in northern Indiana by the year 2010, and it is a far cry from that. There is substantial land out in Blackthorn for sale by a realtor that has been trying to peddle this land for years and hasn’t been too successful. He stated that he took pictures of 52 signs with land, or buildings, or leases on properties between Lincolnway and Cleveland and between Olive Rd. and Bendix Dr. The residents of German Township do not want their township divided in half by the City. The people of South Bend deserve better and their monies should be spent on police, fire and infrastructure improvements in the inner city. He stated that if the Council truly represents the citizens of South Bend, they need to look at the vacate property in the inner city for sale. He stated that he drove around when Blackthorn was being expanded to the west and the inner City was bad already at that time and it’s gotten a whole lot worse. If it wasn’t for relocations of businesses from the inner city to Blackthorn, it would probably be a 8 REGULAR MEETING FEBRUARY 23, 2009 complete failure. That is the only reason that Blackthorn has any buildings today is because of businesses like Schaefer Gear Works, Tire Rack, the list goes on and on. He stated that the Council is missing the boat on this; projects like Portage Prairie and Blackthorn are not working. He stated that the Council should have researched all the vacant land in Blackthorn before ever approving Portage Prairie. The police and fire are stretched to capacity and cannot handle any more. Mr. Zmyslo stated that the City Administration is talking about cutting police and fire protection due to HB 1001. He stated that his folks live in the City and this past winter their street wasn’t even snow plowed. He stated that they live on Edison Avenue on the West Side of town off of Western Avenue. He stated that he went to pick up his mom to take her to her doctor’s appointment and could not turn down her street because the snow plow had not been down the street. He advised that he had a heck of a time trying to get his mom out to the street because the snow was so high and piled up and not plowed. He stated that when he did eventually see a plow truck, they were in tandem, following each other sometimes 4 or 5 trucks right in a row all day long going back and forth in Blackthorn. Once again neglecting the inner city by not taking care of what we already have. Mr. Zmyslo urged the Council to vote against this bill. Kathie Bieschke, 24440 Adams Road, South Bend, Indiana, spoke in opposition to this bill. She stated that this is an inappropriate use of funds. Using TIF dollars to support a project that is not going to benefit the taxpayers is a misuse of funds. Ms. Bieschke stated that this bill is like a bailout for Holladay Corp. She stated that she revisited Holladay’s development in Indianapolis recently and there has been no new development in that area. Ms. Bieschke stated that Portage Prairie has no new development in it and the construction of this road is not going to bring new business either. She urged the Council to reject this bill. Jerry Niezgodski, 2930 Bonds Avenue, South Bend, Indiana, stated that he supported the expansion of the Airport TIF area to include the Portage Prairie Development. He questioned the current tax revenues of this property; once the City buy’s it how much of those revenues are going to be lost as a result of that purchase. He stated that he has a problem with using TIF funds, when Major Move’s monies were ideally suited to be used for road construction. He questioned the reimbursement of Major Move’s monies with TIF monies for this road expansion. If seems like since the expansion of the Airport TIF Area, it’s the golden goose, the golden egg, and using it for every little thing that comes along. Mr. Niezgodski reiterated that this property recently sold for $280,000 and now the City is going to pay $350,000, does the Council really think that property value have gone up that much in the City? He urged the Council to table this bill and try to negotiate with the developer. Kelly Havens, 12032 Timberline Trace, Granger, Indiana, stated that this is another one of those kinds of project that needs to be looked at and ask is this really needed, and the timing of it is horrible. Not only because it is one of those projects that is visionary at best. She stated that there are 2 exits to the by-pass already out there. She stated that there has not been any new development in the Portage Prairie complex and given the economic stimulus of the country there won’t be any new development for some time. Ms. Havens stated that to stimulate the economy the money needs to be put back into the hands of the taxpayers and can be done by the cities lowering taxes. Ms. Havens stated that back in 1979 the City of South Bend did reduce property taxes by doing well on their investments and paid off projects. She stated that this could be done again if the City would quit spending money. She stated that given HB 1001 it could be done by “just reducing spending.” She stated just don’t do it, say no! Rebuttal, Mayor Luecke stated that Major Move’s dollars came to the City as a distribution of money from the lease of the Indiana Toll Road and comes with some restrictions from the State and how they are able to be used, generally for infrastructure and support of Economic Development activity. Clearly this meets that requirement the purchase of right-of-way for an important arterial to be fit into a transportation plan that makes sense for not only South Bend, but for the greater community. He stated that in South Bend, it was decided to put some of those funds into a trust fund, to be able to take 9 REGULAR MEETING FEBRUARY 23, 2009 advantage of those monies for a longer period of time, so that they would generate interest that then could be used to supplement the paving program in the City of South Bend, year after year after year. That is why that when ever they can, the look to replenish dollars in the Major Moves fund so that they can maintain the principle in that fund and to continue to generate interest that helps to support on-going paving program in the City of South Bend. Don Inks stated that he wanted to clear up a few questions. The first being the price of the property and hear comments about bailing out Holladay, and this is in no way a bail out for Holladay. Over a year ago this property became available on the real estate market by the owner. Mr. Inks stated that it was listed at $280,000. He stated that he spoke to Holladay and the City had an interest in buying this as right-of-way for the Auten Connector, the City was not in a position to act on it, the property was in the County, not in the city, not in the TIF area, and the City did not have a way of acquiring the property. He stated that after talking to Holladay they agreed to buy the property and agreed to have it annexed into the city, and agreed to expand the TIF area to bring the property into the TIF area and use TIF to acquire this parcel from Holladay not to exceed $300,000. That $300,000 price was a combination of the $280,000 or the actual price that they paid for the property, plus any additional acquisition costs, whether that was title or survey or any appraisals that might have been done, and he believes that there was a small interest amount in there as part of the holding costs as well. But in no event were those cost to exceed $300,000 to the City. This is not a case of Holladay going out and buying property and coming back to the City and saying you need to buy this from us. This is a case that the City and Holladay agreeing that they wanted to buy this right-of- way, and Holladay facilitating that transaction because the City could not and now the City if coming forward trying to complete the transaction that they anticipated over a year ago. Regarding the taxes on the property, that is assuming that the assessed value was the same as the sale price of approximately $280,000 at 1% the taxes on an annual basis might be $2,800. In this case, he hopes that as part of the right-of-way, when the eventual Auten Road connector is done it will be part of a $300 million dollar investment in Portage Prairie that will be generating significantly more than the $2,800 dollars that this property was paying. The comments regarding inner city development versus development in Blackthorn, he stated that for some time now the City’s policy has been to develop inside the inner City as well as at the fringe of the City and both of those are necessary. Inner City development can be very expensive, if you take a look at the Studebaker Corridor Buildings that the City has been demolishing, they will spend millions of dollars reclaiming those inner city properties for new development. He stated that when the AJ Wright building was being built in the inner City, a great project for the inner city, they now have 470 jobs at that location, but it was a costly project. There were a number of other businesses that were brought and relocated to make that happen in the inner city. It is necessary for the City to have green space at the fringe for development. Schaefer Gear was mentioned as a business that moved out of the city and moved into Blackthorn. It wasn’t just a case of Schaefer Gear deciding that they wanted green space and nice hedges and to get out of the inner city, it was a case of Schaefer Gear expanding twice at their location in the inner city, until they just out grew it and were land locked and needed to expand again, and had a choice of locating within the City of South Bend on the fringe in Blackthorn or moving to another location in Illinois where they owned another business. Fortunately, this community has the foresight to develop Blackthorn and create alternatives for businesses that need to expand. To create opportunities for new businesses that want to come to this community. He stated that he doesn’t think that the City has anything to be sorry for doing, these were all things that were in the best interest of the City and significant growth has occurred in the Blackthorn area. That is one of the reason’s that the Airport TIF has as much money as it does to proceed with project in the inner city like LaSalle Square and moving on to Studebaker Corridor and taking care of some of those issues there as well. Not to mention other development opportunities that are coming along with the MIND stuff and the University of Notre Dame certified Tech Park, Innovation Park, Ignition Park, all of these are connected, all are important to the future of the City. He stated that it is projects like this and the foresight here that goes into getting those things done. 10 REGULAR MEETING FEBRUARY 23, 2009 Councilmember Rouse asked Mr. Inks if there were any remonstrators at the Redevelopment Commission Meeting. Mr. Inks responded that off the top of his head he did not recollect any remonstrators. Councilmember Varner asked Mr. Inks to clarify the appreciation from $300,000 to $350,000. Mr. Inks noted that the $350,000 dollar amount includes the not to exceed the $300,000 dollar amount and the City’s related costs to acquire the property, it was necessary to do an appraisal, title work, survey work. Mr. Inks stated that he did not think that would come any where near the $50,000 dollars and what ever is not used remains in the Major Moves Fund. He stated that there will be some cost related to the City acquiring the property and that is the difference between the $300,000 and $350,000 dollar amounts. He stated that there is a Resolution that is going to be heard this evening for the acquisition of the property and the acquisition price in that Resolution is $300,000 and not to exceed that amount. Councilmember Dieter made motion for favorable recommendation to the full Council concerning this bill as amended. Councilmember LaFountain seconded the motion carried by a voice vote of eight (8) ayes and one (1) (Councilmember Henry Davis) Councilmember Henry Davis stated that his nay vote is because he would like to see the development in the inner city and not on the fringe. BILL NO. 12-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING THE SOUTH BEND MUNICIPAL CODE AT CHAPTER 2, ARTICLE 14, TO ESTABLISH ONE ADDITIONAL FUND NAMELY, FUND NO. 454, AIRPORT ECONOMIC DEVELOPMENT AREA/ URBAN ENTERPRISE ZONE SPECIAL ZONE FUND Councilmember Rouse, Chairperson, Community and Economic Development and Councilmember Tom LaFountain, Chairperson, Personnel & Finance, reported that these committees held a joint Public Hearing on this bill this afternoon and send it to the full Council with a favorable recommendation. Beth Leonard, Director, Financial & Program Management, Community & Economic th Development, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Leonard advised that this bill would allow for the creation of a new fund for the deposit of excess proceeds derived from parcels located in the Airport Economic Development Area that are also located in the Urban Enterprise Zone. These funds will be used for programs in job training, job enrichment and basic skill development primarily for residents and employers in the Urban Enterprise Zone. 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. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. 11 REGULAR MEETING FEBRUARY 23, 2009 RISE AND REPORT Councilmember Henry Davis made a motion to rise and report to the full Council. Councilmember Tom LaFountain 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 8:45 p.m. Council President Derek D. Dieter presided with nine (9) members present. BILLS – THIRD READING ORDINANCE NO. 9903-09 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $43,500.00 FROM COUNTY OPTION INCOME TAX (COIT) FUND #404 TO PROVIDE RENT SUPPLEMENT TO THE FAMILY VIOLENCE/SPECIAL VICTIMS UNIT This bill had third reading. Councilmember Oliver Davis made a motion to pass this bill. Councilmember Varner seconded the motion which carried. The bill passed by a roll call vote of nine (9) ayes. ORDINANCE NO. 9904-09 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $25,000.00 FROM THE MORRIS PERFORMING ARTS CENTER IMPROVEMENT FUND FOR THE PURCHASE OF NECESSARY SERVICE, REPAIR, AND REPLACEMENT OF THE HOT WATER HEATER AND 120 GALLON STORAGE TANK IN THE MECHANICAL ROOM OF THE MORRIS PERFORMING ARTS CENTER (FUND NUMBER 416) This bill had third reading. Councilmember Varner made a motion to pass this bill. Councilmember White seconded the motion which carried. The bill passed by a roll call vote of nine (9) ayes. 12 REGULAR MEETING FEBRUARY 23, 2009 ORDINANCE NO. 9905-09 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $59,850.00 PLUS ADDITIONAL NOMINAL INTEREST FROM GENERAL GRANT FUND (#250) FOR ART IN PUBLIC PLACES, AND CLOSING FUND #250 This bill had third reading. Councilmember Puzzello made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of nine (9) ayes. ORDINANCE NO. 9906-09 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $350,000 FROM THE MAJOR MOVES FUND NUMBER 412 FOR THE ACQUISITION OF PROPERTY NEEDED FOR CONSTRUCTION OF THE AUTEN ROAD CONNECTOR This bill had third reading. Councilmember Puzzello made a motion to amend this bill as in the Committee of the Whole. Councilmember White seconded the motion which carried by a voice vote of nine (9) ayes. Additionally, Councilmember Puzzello made a motion to pass this bill as amended. Councilmember Kirsits seconded the motion which carried. The bill passed by a roll call vote of seven (7) ayes and two (2) nays (Councilmember Oliver Davis, Henry Davis) ORDINANCE NO. 9907-09 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING THE SOUTH BEND MUNICIPAL CODE AT CHAPTER 2, ARTICLE 14, TO ESTABLISH ONE ADDITIONAL FUND NAMELY, FUND NO. 454, AIRPORT ECONOMIC DEVELOPMENT AREA/ URBAN ENTERPRISE ZONE SPECIAL ZONE FUND This bill had third reading. Councilmember Puzzello made a motion to pass this bill. Councilmember Rouse seconded the motion which carried. The bill passed by a roll call vote of nine (9) ayes. RESOLUTIONS BILL NO. 09-15 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 2001 WEST WASHINGTON STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A THREE-YEAR REAL PROPERTY TAX ABATEMENT FOR ROYAL HOLDINGS, INC. 13 REGULAR MEETING FEBRUARY 23, 2009 BILL NO. 09-16 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 2001 WEST WASHINGTON STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR ROYAL HOLDINGS, INC, D.B.A. ROYAL ADHESIVES Councilmember Varner made a motion to combine these bills for purposes of Public Hearing. Councilmember Henry Davis seconded the motion which carried by a voice vote of eight (8) ayes. RESOLUTION NO. 3949-09 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 2001 WEST WASHINGTON STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A THREE-YEAR REAL PROPERTY TAX ABATEMENT FOR ROYAL HOLDINGS, INC. D.B.A. ROYAL ADHESIVES 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 2001 West Washington Street, South Bend, Indiana, and which is more particularly described as follows: PARCEL I: Lots Numbered Sixty-seven (67), Sixty-eight (68), Sixty-nine (69), Seventy (70), Seventy-one (71), Seventy-two (72), Seventy-three (73) Seventy-four (74), Seventy-five (75), Seventy-six (76) and Seventy- seven (77) as shown on the recorded Plat of Clement Studebaker’s Oak Grove Subdivision in the City of South Bend, recorded in Plat Book 7, page 4 in the Office of the Recorder of St. Joseph County, Indiana. PARCEL II: Lots Numbered One (1), Two (2), Three (3), Four (4) and Five (5) as shown on the recorded Plat of Hosinski’s Subdivision of Lot Numbered 43 in College Grove Addition to the City of South Bend, recorded April 6, 1920 in Plat Book 10, page 103 in the Office of the Recorder of St. Joseph County, Indiana. PARCEL III: Lots Numbered Twenty-eight (28), Twenty-nine (28), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), inclusive and Lots Numbered Forty-four (44), Forty-five (45), Forty-six (46), Forty- seven (47) and Forty-eight (48) as shown on the recorded Plat of College Grove and Addition to the Town, now City of South Bend and Lot “A” as shown on the recorded Plat of Clement Studebaker’s Oak Grove Subdivision in the City of South Bend, recorded in Plat Book 7, page 4 in the Office of the Recorder of St. Joseph County, Indiana. PARCEL IV: The vacated Grant, Johnson and Brookfield Streets running from the North line of Washington Avenue and the South line of Orange Street; also the vacated Colfax Avenue running from the West line of Jackson Street to the West line of Lot 48 in College Grove Addition 14 REGULAR MEETING FEBRUARY 23, 2009 extended North; also the vacated alley lying West and adjacent to Lots 1, 2, 3 and 5 Hosinski’s Subdivision. PARCEL V: An easement for ingress and egress in, upon and over the following described real estate: Beginning at a point 4-1/2 feet West of the Northeast corner of Lot Thirty (30) in College Grove Addition; thence North on a line parallel to the East line of Lot 30 a distance of 10.00 feet; thence East on a line parallel with the North lines of Lots 29 and 30 a distance of 105.00 feet; thence South on a line parallel to the West lot line of Lot 29 a distance of 10.00 feet to a point on the North line of Lot 29, said point being 37.00 feet East of the Northwest corner of Lot 29; thence West on and along the North line of Lot 29, extended across vacated Johnson Street, and the North line of Lot 30, a distance of 105.00 feet to the point of beginning. and which has Key Number 18-2003-0032 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 15 REGULAR MEETING FEBRUARY 23, 2009 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 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 RESOLUTION NO. 3950-09 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 2001 WEST WASHINGTON STREET AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR ROYAL HOLDINGS, INC, D.B.A. ROYAL ADHESIVES 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 2001 West Washington , Street South Bend, Indiana, and which is more particularly described as follows: PARCEL I: Lots Numbered Sixty-seven (67), Sixty-eight (68), Sixty-nine (69), Seventy (70), Seventy-one (71), Seventy-two (72), Seventy-three (73) Seventy-four (74), Seventy-five (75), Seventy-six (76) and Seventy- seven (77) as shown on the recorded Plat of Clement Studebaker’s Oak Grove Subdivision in the City of South Bend, recorded in Plat Book 7, page 4 in the Office of the Recorder of St. Joseph County, Indiana. 16 REGULAR MEETING FEBRUARY 23, 2009 PARCEL II: Lots Numbered One (1), Two (2), Three (3), Four (4) and Five (5) as shown on the recorded Plat of Hosinski’s Subdivision of Lot Numbered 43 in College Grove Addition to the City of South Bend, recorded April 6, 1920 in Plat Book 10, page 103 in the Office of the Recorder of St. Joseph County, Indiana. PARCEL III: Lots Numbered Twenty-eight (28), Twenty-nine (28), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), inclusive and Lots Numbered Forty-four (44), Forty-five (45), Forty-six (46), Forty- seven (47) and Forty-eight (48) as shown on the recorded Plat of College Grove and Addition to the Town, now City of South Bend and Lot “A” as shown on the recorded Plat of Clement Studebaker’s Oak Grove Subdivision in the City of South Bend, recorded in Plat Book 7, page 4 in the Office of the Recorder of St. Joseph County, Indiana. PARCEL IV: The vacated Grant, Johnson and Brookfield Streets running from the North line of Washington Avenue and the South line of Orange Street; also the vacated Colfax Avenue running from the West line of Jackson Street to the West line of Lot 48 in College Grove Addition extended North; also the vacated alley lying West and adjacent to Lots 1, 2, 3 and 5 Hosinski’s Subdivision. PARCEL V: An easement for ingress and egress in, upon and over the following described real estate: Beginning at a point 4-1/2 feet West of the Northeast corner of Lot Thirty (30) in College Grove Addition; thence North on a line parallel to the East line of Lot 30 a distance of 10.00 feet; thence East on a line parallel with the North lines of Lots 29 and 30 a distance of 105.00 feet; thence South on a line parallel to the West lot line of Lot 29 a distance of 10.00 feet to a point on the North line of Lot 29, said point being 37.00 feet East of the Northwest corner of Lot 29; thence West on and along the North line of Lot 29, extended across vacated Johnson Street, and the North line of Lot 30, a distance of 105.00 feet to the point of beginning. and which has Tax Key Number 18-2003-0032 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: 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 17 REGULAR MEETING FEBRUARY 23, 2009 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 Councilmember Rouse, Chairperson, Community and Economic Development Committee reported that this committee held Public Hearings on these bills this afternoon and voted to send them to the full Council with a favorable recommendation. Gary Stenke, C.F.O. Royal Holdings, Inc., 2001 W. Washington Street, South Bend, Indiana, made the presentation for these bills. Mr. Stenke advised that Royal Adhesives is a maker of specialty adhesives for use in industrial and commercial settings. The Petitioner is proposing to: (a) demolish an old O’Brien Paint building and replace it with an 8,294 square foot factory building; (b) equip the new building for a state of the art specialty adhesive mixing operation; and (c) add a 22,525 square foot warehouse to support the operation. The total cost of the construction portion of the project is estimated at $1,127,543. Mr. Stenke stated that the equipment to be purchased includes mixers, raw material storage tanks, various pilot mixers for development work and testing equipment associated with the production and 18 REGULAR MEETING FEBRUARY 23, 2009 testing of specialty adhesives. Some equipment may be used; however, all used equipment would be acquired from outside the State of Indiana. It is estimated that the project will create twenty-eight (28) new, permanent full-time positions with an annual payroll of $1,390,806. The project will also maintain one hundred sixteen (116) existing permanent full-time positions, including 25 existing permanent full-time minority employees, with a total annual payroll of $6,137,614. A Public Hearing was held on the Resolutions 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 Henry Davis made a motion to adopt Bill No. 09-15. Councilmember Rouse seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. Councilmember Varner made a motion to adopt Bill No. 09-16. Councilmember Rouse seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. RESOLUTION NO. 3951-09 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING ACQUISITION OF AND DESIGNATING THE BOARD OF PUBLIC WORKS TO PURCHASE PROPERTY NEEDED FOR CONSTRUCTION OF THE AUTEN ROAD CONNECTOR WHEREAS, the Common Council of the City of South Bend, Indiana, has determined by separate Ordinance (Bill 11-09) that a true and real need exists for the acquisition of certain properties located in the Auten Road corridor to be used for the construction of the Auten Road Connector; and WHEREAS, Holliday Properties is the owner of a parcel of land located at 51270 Mayflower Road, South Bend, Indiana, (the “Property”) which is in the Auten Road corridor; and WHEREAS, Holliday Properties has agreed to sell the Property for a price not to exceed Three Hundred Thousand Dollars ($300,000.00) which is within the Council's approved appropriation of Major Moves Funds for this purpose (Common Council Bill 11-09); and WHEREAS, the Common Council of the City of South Bend, Indiana, believes that the acquisition of the Property is in the best interests of the City of South Bend and its residents; and WHEREAS, the Common Council of the City of South Bend, Indiana, has determined that the Board of Public Works of the City of South Bend, Indiana is the appropriate entity to purchase the property. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. Acquisition of property located at 51270 Mayflower Road, South Bend, Indiana, is in the best interests of the City of South Bend, Indiana, and the South Bend Common Council authorizes the South Bend Board of Public Works to take the steps necessary to purchase this property for a price not to exceed Three Hundred Thousand Dollars ($300,000.00). 19 REGULAR MEETING FEBRUARY 23, 2009 Section II. The Common Council hereby designates and confirms the following persons to execute and accept, and to witness the execution and acceptance, respectively, those documents necessary to the consummation of the transaction contemplated by this Resolution. Party to Execute Documents: Donald E. Inks, Member Board of Public Works Party to Attest to the Execution of Documents: Linda Martin, Clerk Board of Public Works Section III. 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 sends it to the full Council with a favorable recommendation. th Mr. Don Inks, Director, Economic Development, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Inks advised that this resolution would approve the purchase of property located at 51270 Mayflower Road. This is the companion to Bill #11-09 that was just heard appropriating the funding necessary to carry out this acquisition. This 10 acre parcel is needed for right-of-way as it sits in the middle of the Auten Connector path. The Auten Connector is part of the planned Portage Prairie transportation improvements, and will eventually connect with Portage Avenue. Mr. Inks stated that the Board of Public Works only has authority to purchase right-of-way not to exceed $25,000.00 anything over that must come to the Council for approval. This $300,000 acquisition accordingly is for the Auten Road Connector for obtaining parcels for right-of-way for that and the funding will be reimbursed by TIF funds back to the Major Moves as soon as the transaction is complete. A Public Hearing was held on the Resolution at this time. Mr. Paul Phair, Holladay Properties, 227 S. Main St., South Bend, Indiana, spoke in favor of this bill. Stated that Holladay is the developer of Portage Prairie and this acquisition is for future infrastructure planning. He urged the Council’s favorable consideration. There was no one else present wishing to speak to the Council in favor of this bill. The following individuals spoke in opposition to this bill. Tom Zmyslo, 51042 Prairview Way, South Bend, Indiana, stated that there was a question brought up earlier in the meeting by Councilmember Tim Rouse who asked if there was anyone opposed to the Portage Prairie Development at the Redevelopment Commission Meeting that was held. He noted that Mr. Inks answered no. Mr. Zmyslo stated that there were at least twenty-five (25) people in attendance at that meeting that were opposed. Ann Jentz, 51312 Mayflower Rd., South Bend, Indiana, stated that she would like to encourage the Council to really think about this development. Because by putting $300,000 to $350,000 dollars into something that is going to be sitting there idle, she 20 REGULAR MEETING FEBRUARY 23, 2009 maintains that there is other property available that the City could buy at a later date and just hold off. This doesn’t need to happen right now. She stated that she would sign paperwork right now and say that she will sell her land when the City is ready and she knows that the guy that owns the property south of her is shopping his property around that has no buildings on it that would have to be torn down. His name is Joe Lichtner; he owns 18 acres and blow straight through. She stated that the City is jumping the gun on this, there are plenty of people who have land there who would sell it much cheaper because there are no buildings on the property. She stated that the City is jumping the gun and haven’t done the homework and this is a huge mistake. Kathie Bieschke, 24440 Adams Road, South Bend, Indiana, stated that the point that Ms. Jentz is making that this is not a rush, rush deal. She stated that there is only one building out their at Portage Prairie and it is only being half used by a company that needed some overflow storage/warehouse space. She stated that there is not a line of businesses rushing to build in Portage Prairie, so why spend the money on this kind of project now. Rita Kopala, 66559 Ivy Road, Lakeville, Indiana, stated that she is opposed to this bill. Jerry Niezgodski, 2930 Bonds Avenue, South Bend, Indiana, stated that he knows that this is a forgone conclusion, but he still wants to know why the City is using TIF money for this instead of Major Moves money. He stated that according to the Mayor’s description of what Major Moves is to be used for is ideal for this type of development. He stated that the money should not be used from TIF. In Rebuttal, Mr. Inks clarified the question asked by Councilmember Rouse about remonstrators, he assumed that the meeting in question was the appropriation hearing at the beginning of this year, not going back to June of 2008, when the Redevelopment Commission expanded the area to include Portage Prairie, so if the meeting in question was the Portage Prairie expansion meeting in June, Mr. Zmyslo is correct, there were several remonstrators there. If the meeting in question was the appropriation meeting held earlier this year, in which they set aside funds for this project, he stated that he doesn’t recall any remonstrators being for there at that meeting. Councilmember Rouse stated that he was asking about the $350,000 that was appropriated from TIF money in the Redevelopment Commission. He stated that he was speaking specifically of that issue. Mr. Inks noted that to answer the question regarding TIF versus Major Moves money, is that City policy states that they keep the principle amount of Major Moves money and just use the interest coming off of that to fund projects. In this case because the benefit if for a TIF area, and when the agreement with Holladay was initially put into place, it was envisioned using TIF money, it seems appropriate at this point to proceed on the original basis with the exception that the state law had changed and cannot use TIF money initially, so they went to use the Major Moves money on a very short interim basis and then use the TIF to reimburse it, thus conserving the major moves principal, that is consistent with City policy and also for fulfilling the intended use of TIF per the agreement of almost a year ago that that would be the source of funding for this property. Mr. Rouse stated that there seems to be some confusion, as he understands what they are talking about, the Redevelopment Commission had entered into some type of agreement or negotiation with Holladay Corp. to purchase this property. Mr. Inks stated yes, that is correct. Mr. Rouse stated that then later the TIF money would be used after Major Moves would reimburse them for the investment that they have already made in the property. Is that correct. Mr. Inks stated that in general that is correct, the Commission did have an agreement with Holladay that dates back to February 2008, that was at a time when the law allowed the Commission to amend its development areas without going throughout any other 21 REGULAR MEETING FEBRUARY 23, 2009 processes other than the public hearing process required by state statute. It was completely in control by the Redevelopment Commission at that point. Subsequently the law changed and now any amendment that requires Common Council approval now required IEDC approval and he thought that a more expeditious process would be this process acquiring through the Board of Public Works and then reimbursing with TIF. Mr. Rouse stated that the agreement was already made several months ago, this is not something that is being done now, it like kind of closing the door on an agreement that was made back in 2008. Mr. Inks stated that is correct. Councilmember Varner asked for clarification on the Sheehan property. He stated that the property was on the market and had been advertised on the market which is why the approach was made to the Sheehan’s. He stated that there was no solicitation for the property. He questioned whether the City approached the Lichner or the Jentz. Mr. Inks stated that there was no solicitation of property. He stated that the alignment path for the Auten Connector had already been pretty much set and the Sheehan property was right in that alignment path, so it was a combination of the City needing the right-of- way for the connector and the property that was needed coming on the market and being available. Councilmember Varner made a motion to adopt this Resolution. Councilmember LaFountain seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes and one (1) nay (Councilmember Henry Davis) RESOLUTION NO. 3952-09 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE ISSUANCE AND SALE OF SOUTH BEND REDEVELOPMENT AUTHORITY LEASE RENTAL REFUNDING BONDS (MORRIS PERFORMING ARTS CENTER PROJECT) WHEREAS, the Common Council of the City of South Bend, Indiana (the "Common Council") is the fiscal body of the City of South Bend, Indiana (the "City"); and WHEREAS, the South Bend Redevelopment Commission (the "Commission") is the governing body of the South Bend Redevelopment District (the "District"); and WHEREAS, the South Bend Redevelopment Authority (the "Authority") has been created pursuant to Indiana Code 36-7-14.5 as a separate body, corporate and politic, and as an instrumentality of the City to finance local public improvements for lease to the Commission; and WHEREAS, the Authority previously entered into a lease with the Commission dated as of May 1, 1997, as amended (the "Lease"), which Lease was heretofore approved by this Common Council and pursuant to which Lease the Authority leased to the Commission certain local public improvements, namely the Morris Performing Arts Center, which includes the Morris Civic Center and certain portions of the Palais Royale facility and related improvements; and WHEREAS, the Authority previously issued its Lease Rental Revenue Bonds of 1998 (Morris Performing Arts Center Project) (the "Prior Bonds") for the purpose of acquiring, constructing, renovating and equipping the Morris Performing Arts Center; and 22 REGULAR MEETING FEBRUARY 23, 2009 WHEREAS, the Authority previously adopted its Resolution No. 162 at a meeting of the Authority held on January 16, 2008, in which the Authority determined to issue and sell its lease rental refunding bonds in an aggregate principal amount not to exceed Eight Million Dollars ($8,000,000) (the "Refunding Bonds") for the purpose of currently refunding the Prior Bonds to provide a savings; and WHEREAS, the Authority was not able to sell its Refunding Bonds at interest rates which would provide sufficient savings prior to July 1, 2008, due to market conditions; and WHEREAS, Section 164 of P.L. 146-2008 added § 6-1.1-17-20.5 to the Indiana Code effective as of July 1, 2008, which now requires that the Common Council, as the fiscal body of the City, approve of the issuance of the proposed Refunding Bonds by the Authority; and WHEREAS, as a result of the issuance of the Refunding Bonds and the corresponding reduction of rental payments due under the Lease, the Commission will achieve significant annual savings; and NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: Section I. The issuance of the Refunding Bonds by the Authority for the purpose of refunding the Prior Bonds, which will permit the Lease to be amended to reduce the rental payments due thereunder by the Commission to the Authority, thus achieving a savings to the Commission, is hereby approved. Section II. This Resolution shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor as provided by law. s/Derek D. Dieter Member of the Common Council th Mayor Stephen Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mayor Luecke advised that the Resolution would approve the issuance and sale of Lease Rental Refunding Bonds pertaining to the 1997 Lease between the South Bend Housing Authority and the South Bend Redevelopment Commission for the Morris Performing Arts Center, the Palais Royale and other related improvements. Mayor Luecke stated that the approval of this Resolution and the consequent issuance of the requested Refunding Bonds will permit amendment of the affected Lease, a reduction in rent payments due to the Authority, and overall savings. 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. BILLS – FIRST READING BILL NO. 13-09 FIRST READING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 2517 & 2521 WESTERN AVENUE, COUNCILMANIC DISTRICT 2, IN THE CITY OF SOUTH BEND, INDIANA 23 REGULAR MEETING FEBRUARY 23, 2009 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 nine (9) ayes. BILL NO. 14-09 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING FUNDS FOR CAPITAL AND PROGRAM EXPENDITURES FOR THE FISCAL YEAR 2009 INCLUDING, $298,000 FROM THE PARKS NON-REVERTING CAPITAL FUND, $115,000 FROM THE COVELESKI STADIUM FUND, $100,000 FROM THE NON-REVERTING RECREATION FUND, $4,000 FROM THE EAST RACE WATERWAY, $1,500 FROM THE CEMETERY TRUST FUND This bill had first reading. Councilmember Puzzello made a motion to refer this bill to PARCS Committee and set it for Public Hearing and Third Reading on March 9, 2009. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 15-09 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: AMENDING ARTICLE 11 – DEFINITIONS TO DEFINE THE BOARD OF ZONING APPEALS AS THE AREA BOARD OF ZONING APPEALS AND THEREBY ESTABLISHING THE AREA BOARD OF ZONING APPEALS AS THE BOARD OF ZONING APPEALS FOR 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 Varner seconded the motion which carried by a voice vote of nine (9) ayes. UNFINISHED BUSINESS REPORT FROM THE AREA PLAN COMMISSION: BILL NO. 02-09 AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 744 SOUTH MAIN STREET, COUNCILMANIC DISTRICT SIX (6) IN THE CITY OF SOUTH BEND, INDIANA Councilmember Varner made a motion to set this bill for Public Hearing and Third Reading on March 9, 2009 and send to the Zoning and Annexation Committee. Councilmember Oliver J. Davis seconded the motion which carried by a voice vote of nine (9) ayes. NEW BUSINESS There was no new business to come before the Council at this time. 24 REGULAR MEETING FEBRUARY 23, 2009 PRIVILEGE OF THE FLOOR COMMENTS REGARDING SCHOOL CROSSING GUARDS Sandy Dreibelbeis, 209 E. Eckman, South Bend, Indiana, spoke regarding the crossing guards. Ms. Dreibelbeis questioned how long the crossing guards would be employed until the end of the 08/09 school year or calendar year? Councilmember White stated that the crossing guards would be employed until the end of the 08/09 school year. COMMENTS REGARDING ECONOMIC DEVELOPMENT IN SOUTH BEND Jerry Niezgodski, 2930 Bonds Avenue, South Bend, Indiana, stated that Economic Director Jeff Gibney showed on a pie chart that the City will need to cut the Police Department by 50%. Mr. Niezgodski stated that doesn’t need to happen, the City of South Bend needs to increase its tax base. The only way to do that is by getting jobs to South Bend. He urged Mr. Gibney to do just that. Mr. Niezgodski also stated that he would like to see a change in the tax abatement ordinance to allow for an incentive for rehabbing homes in the inner city. ADJOURNMENT There being no further business to come before the President Derek D. Dieter adjourned the meeting at 9:23 p.m. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Derek D. Dieter, President 25