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Community and Economic Development Committee
2009 South Bend Common Council
The June 8, 2009 meeting of the Community and Economic Development Committee of
the South Bend Common Council was called to order by its Chairperson Council
Member Timothy A. Rouse at 4:53 p.m. in the Council's Informal Meeting Room.
Persons in attendance included Council Members Dieter, Varner, Henry Davis, Jr.,
White, LaFountain, Rouse, Oliver J. Davis, and Puzzello; Mayor Stephen J. Luecke,
Public Works Director Gary Gilot, City Controller M. Catherine Fanello, Rita Kopola,
Martha Lewis, Catherine Andres. Steve Cooreman, Bernie Feeney, Bill Schalliol, Ryan
Chasey, Kate Love-Jacobson, John Hamilton, Gladys Muhammad, Pamela C. Meyer,
other members of the public, and Kathleen Cekanski-Farrand, Council Attorney.
Council Member Rouse noted that the Committee members include Council Members
Henry Davis, Jr., Karen L. White, Ann Puzzello and himself, as Chairperson.
Bill No. 09-41 Waiver Request of Conditions Precept re~ardine 4406 Ashard
Drive
Bill No. 09-42 Five (5) Year Residential Real Property Request for 4406 Ashard
Drive
Council Member Rouse called for a report from Economic Development on the proposed
requests set forth in Bill Nos. 09-41 and 09-42.
Bob Mathia, Economic Development Assistant Director, reviewed his multi-page report
of May 22, 2009 (copy attached). He noted that the petitioner, Cleland Builders, has
already constructed a house on Lot # 77, which has been used as a model home and sales
office by the Petitioner. The Petitioner is applying for a waiver of the building permit
precondition which is addressed in Bill No. 09-41, and a five (5) year residential real
property tax abatement for the subject property, which is addressed in Bill No. 09-42.
Mr. Mathia further noted among other things that the house construction was $137,000.
Because the house on Lot # 77 was being used as a model homes and sales office it
prevented the sale of the property to a private buyer prior to the expiration of the 2003
abatement for Jade Crossing, section I. In 2008, the Petitioner re-applied for tax
abatements on Lot # 77 along with ten (10) other lots; and then removed Lot # 77
because of the issuance of the building permit for it. If the building permit has not been
issued and the house had not been constructed, the project would have met the
qualifications for a five (5) year residential real property tax abatement.
Community and Economic Development Committee
June 8, 2009
Page 2
Mr. Mathia noted that a "final inspection" of the home in question on Lot # 77 was completed in
January 2008. Several deficiencies were noted and a Certificate of Occupancy was withheld as a
result. As of the date of the report, Mr. Mathia reported that the Petitioner had not contacted the
Building Department to re-inspect the home in question.
The report concluded that if the building permit had not been issued, the petition would have met
the qualifications for a five (5) year residential tax abatement under Section 2-77.1 of the South
Bend Municipal Code addressing "Single-Family Residential Construction". The Committee
could recommend to the Common Council that if the waiver set forth in Bill No. 09-41 is
approved, then the Council could go forward with the Declaratory Resolution set forth in Bill
No. 09-42. The Common Council could then withhold action on the Confirmatory Resolution
pending the submission of evidence by the Petitioner to the Building Department that all
deficiencies have been addressed and corrected; and evidence that a Certificate of Occupancy
was been issued for the subject property by the Building Department.
J. Bernard Feeney of Lang, Feeney & Associates, Inc., with offices located at 715 South
Michigan Street in downtown South Bend made the formal presentation. Mr. Feeney confirmed
that the petitioner Cleland Builders, Inc. used the property in question as a model home. He
noted that they now have a contingent purchasers for the property, subject to approval of the tax
abatement. Mr. Feeney further noted that the Building Department inspected the property today,
and that a certificate of occupancy would be issued by the Building Department on Tuesday.
In response to a question from Council Member Rouse, Mr. Feeney stated that the home in
question was built in 2006.1
In response to a question from Council Member White, Mr. Feeney stated that all deficiencies
have been addressed.
Council Member Rouse stated that he has lots of questions with regard to the two (2) resolutions.
He suggested that the Bills be sent to the Council without recommendation, and that in light of
the time restraints that all questions be held until the 7 p.m. Council meeting. He stated that he is
concerned that minimum taxes have been paid since the house was constructed; that it has been
used as a business office for that period of time; and now the Petitioner is seeking even more tax
relief.
No public hearings on the Bills were held due to the lateness of the hour with the Committee
meeting starting over an hour later then the scheduled starting time.
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June 8, 2009
Page 3
Council Member Rouse made.a motion, seconded by Council Member Henry Davis, Jr.,
that Bill Nos. 09-41 and 09-42 be sent to the Council without recommendation. The
motion passed.
Bill No. 09-40 Request to Approve an Order of the Area Plan Commission, a
Redevelopment Commission Declaratory Resolution and Amendment to the West
Washington-Chapin Development Area Development Plan:
Economic Development Planner Bill Schalliol made the formal presentation. He noted
that at the May 26, 2009 Common Council meeting when Bill No. 09-40 was initially
heard by the Council, and then continued until today. The Council requested that two (2)
primary concerns be addressed, namely whether there was support from the
neighborhood for the proposed joint venture between the city and the University of Notre
Dame for the former Hansel Center to be rehabilitated so that it could house the Notre
Dame Center for Art and Culture; and sought more information on the Redevelopment
Commission's investment for the proposed project.
Mr. Schalliol stated that the Near West Side Neighborhood Organization passed a
resolution in support of the renovation and reuse of the Hansel Center on May 26, 2009,
the same date as the last Common
Council meeting. In his June 3, 20091etter to Council President Dieter he attached a June
2, 2009 letter from Catherine D. Hostetler, Director of the Historic Preservation
Commission supporting the project (copy attached). He also attached a copy of the
resolution from the Near West Side Neighborhood Organization to his June 3`d
communication (copy attached). Mr. Schalliol noted that several members of the public
are now present at this committee meeting who support the project.
Council Member Henry Davis, Jr., the District Council Member for the area in question,
stated that he never got a meeting about the neighborhood organization meeting. He
asked why he was not invited.
Mr. Schalliol stated that there must have been a lapse in communication.
Council Member Rouse then stated that he would take limited public comment in light of
the time, since there is another Bill scheduled for hearing and that the Committee is also
scheduled to have a presentation on High Performance Government (HPG) Network who
have travelled from Fort Wayne to give that presentation.
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Gladys Muhammad of 808 North Ironwood in South Bend, and an employee of South
Bend Heritage Foundation stated that about thirteen (13) people were present at the
Colfax Center when the neighborhood group took action on the resolution supporting the
renovation and reuse of the Hansel Center. She stated that this would be an excellent use
of the facility and of the monies and resources made available.
John Hamilton of 913 West Colfax stated that the University of Notre Dame has been the
city's neighbor since 1842. That their willingness to partner with the city on this project
would result in an enhancement of the neighborhood.
Council Member Rouse stated that all further comments could be heard at the 7 p.m.
Council meeting.
Council Member Henry Davis, Jr. suggested that Bill No. 09-40 be sent without
recommendation in light of the many concerns which he has, and in light of not having
sufficient time to address those concerns during the committee meeting. He noted that
full discussion of those concerns should be addressed before a formal recommendation is
made.
Council Member White made a motion, seconded by Citizen Member Catherine Andres
that Bill No. 09-40 be sent to the Common Council with a favorable recommendation.
The motion passed with Council Member Henry Davis, Jr. voting against the motion.
Bill No. 09-47 Request to Approve an Agreement Extending the St. Joseph County
Housing Consortium:
Pamela C. Meyer, Community Development Director made the formal presentation. She
noted that the St. Joseph County Housing Consortium was established in 1991. The cities
of South Bend and Mishawaka and St. Joseph County operate under aninter-local
agreement. Since 1991, approximately $13 million HOME dollars have been brought
into these communities for low-income assistance.
Ms. Meyer noted that the current inter-local agreement will expire at the end of this year.
The Department of Housing and Urban Development (HUD) requires that all renewal
agreements be for periods of three (3) years, and that they be approved by resolution of
the legislative bodies. She added that as a result of all three (3) governmental units
working together, that they have been able to leverage more dollars for the communities.
The deadline for compliance is June 30~`.
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Council Member Rouse noted that he contacted Ms. Meyer this afternoon. As a result of
that call, Ms. Meyer prepared the 3-page memorandum addressing the 2009 meting
schedule of the consortium, the consortium members and staff and the 2007 through 2009
HOME .Program projects, activities and funding. Council Member Rouse thanked Ms.
Meyer for her quickness to his request.
Council Member Puzzello made a motion, seconded by Council Member White that Bill
No. 09-47 be recommended favorably to Council. The motion passed.
In response to a question from Council Member Oliver Davis, Ms. Meyer stated that the
Mishawaka Common Council has already adopted a similar resolution, and that the St.
Joseph County Council will take action on a similar resolution at their meeting on
Tuesday.
High Performance Government (HPG) Network Presentation:
Chairperson Rouse introduced Ryan Chasey and Kate Love-Jacobson, from High
Performance Government (HPG) Network Presentation.
Mr. Chasey, President High Performance Government (HPG) Network advised that local
government is comprised of talented, dedicated employees who often have not been
provided with the tools, training, or technology to improve performance at their
workplace. Local leaders have the opportunity to create more effective government by
making improvement a priority and providing a performance system for employees. He
noted that belief in that was the impetus for the creation of the High Performance
Government Network. The Indiana Chamber, Indiana University School of Public And
Environmental Affairs, Indiana Association of Cities and Towns, and City of Fort Wayne
each made a 3 year commitment to help found the High Performance Government
Network. In 2008, the Verizon Foundation joined as a corporate sponsor and the Ball
Brothers Foundation funded a six month program for local government officials in
Muncie and Delaware County that is being co-facilitated by the Ball State Bowen Center
for Public Affairs. The HPG Network now boasts a solid core membership compromised
of local governments large and small across Indiana. Each member and their 2008
accomplishments are detailed in a report (see attachment.) Mr. Chasey advised that
every member organization has taken positive strides towards completing the 10 Steps to
High Performance. Their efforts will encourage innovation and effectiveness among
employees. Mr. Chasey highlighted the 10 Step Program: Step 1 Promote a Learning
Organization culture. Establish leadership and management training in addition to
ensuring that employees at every level have access to training and resources to
continuously hone their skills and competencies. Step 2 Build a share vision:
Organization Values; Pro-Investment Focused Priority (Innovate); High Performance
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June 8, 2009
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Focused Priority (Perform); establish a "Vision Statement" and "Mission Statement";
Step 3. Cultivate systems thinking: have employees across divisions and departments
develop aorganization-wide strategic plan. Mayor meets with division directors and
department heads to strategize and strengthen communication between those divisions
and departments. Step 4. Develop a strategic plan to drive business goals: Customer
Focused; Pro-Investment Focused and High Performance Focused. Step 5. Utilize
scientific methods: i.e. Lean Six Sigma, Action Work-out, Activity-Based Management
and Human Performance Improvement methodologies to meet organizational challenges.
Step 6. Provide outcome-based training: The strategic plan prioritizes customer service
and leadershiplmanagement training. Step 7. Foster strategic partnerships: training
resources, establishing leadership development programs. Step 8. Share tools and
resources: utilizing HPG Network to host a monthly "High Performance Government
Executive Overview." Share information and resources with other government agencies
to promote continuous improvement in local government and participates in HPG
Network activities designed to promote sharing of best practices. Step 9. Track results
through metrics: develop a system to track and report progress on strategic goals. Step
10. Instill systems of accountability: use City Plan as a reporting structure to enforce
accountability. Mr. Chasey advised that recommendation for next steps would follow.
He stated that they evaluated every single item in each department and prioritize those
services and what was needed and what was wanted. Citizen input was implemented by a
questionnaire rating how important those services are and which ones could be
eliminated.
Council President Dieter asked how do you come to a mutual agreement on what the City
Administration sees as a priority as opposed to what the citizens see as a priority.
Mr. Chasey stated that they combined those needs and then were re-evaluated by the
Mayor. He stated that some could be agreed on by cost. He used the City of Indianapolis
and when their newly elected Mayor, became an HPG Network member, they established
the "Indy Stat" program to measure department deliverables and develop accountability.
He stated that the City has partnered with local businesses to use proven business
methodologies like Lean Six Sigma to make improvements in city processes. In order to
maximize these efforts, the city utilized the HPG Network to develop strategic priorities
around which they can focus improvement efforts. They get feedback from the
departments as what the needs are for their department. Performance Plan -HPG is
helping them prioritize and implement strategic performance plan measures and goals.
Core services vs. non-core services. Internal Lean Six Sigma implemented by the Deputy
Controller. 5% of staff participation in the review process. Long term planning mixed
with short term results.
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June 8, 2009
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Council Member Oliver Davis asked how the decided what was core vs. what was non-
core services.
Mr. Chasey stated that the City Administration and Departments met and discussed what
their customers and citizens feel are core services and those that are non-core or vital to
the everyday operation of the department.
Get employees involved in the reporting process.
Mr. Chasey stated that the cities are examples and customized to what works for their
individual city. Effective, efficient, services are the common goal. Partnership, network,
get in touch with the community to determine those core operations vs. non-core
operations. In closing he stated that the bottom line is being an effective organization,
during budget constraints trying to do more with less. He stated that municipal
employees are excellent workers and need training to be able to understand what their
new responsibilities are and what is expected. He stated that they need to help the
employees feel empowered and not afraid of the changes that are taking place.
Citizen Member Steve Cooreman asked is this the first step?
Chairperson Rouse stated that he and Council Member Henry Davis drove to Ft. Wayne
to see HPG in Ft. Wayne and then asked for HPG to come here to give the presentation to
the entire Council and City Administration.
Chairperson Rouse stated that there is a 3 year commitment to join HPG and there is a
service fee involved.
Council Member Puzzello asked how the Park Departments faired in the Core vs Non-
Core services.
Ms. Love-Jacobson stated that they used the City's Comprehensive Plan to determine
those core services as well as prior budgets. Some things were eliminated and some were
kept.
Mr. Chasey stated that he remembers that one of those services that was let go was that of
closing a neighborhood pool. Also, tree trimming in City Parks. He stated that this past
winter the City of Ft. Wayne experienced a really bad ice storm, and by not keeping up
on tree trimming those limbs fell and cut power lines and the City really lost on that by
having to clean up all those limbs. So this year they are looking at brining back some
tree trimming services.
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June 8, 2009
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Chairperson Rouse thanked Mr. Chasey and Ms. Love-Jacobson for making their
presentation.
There being no further business to come before the Committee, Council Member Rouse
adjourned the meeting at 6:15 p.m.
Respectfully submitted,
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Council Mem r Timothy A. Rouse, Chairperson
Community and Economic Development Committee
Attachments