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REGULAR MEETING February 22, 2015 <br />through a corporation he works for and he doesn't get to go back and charge more after the fact. <br />There are bigger issues in this city than the zoo. There are children going to be starving in our <br />community every night. There are people who are still sleeping in our streets every night. So $22 <br />million dollars allocated for the zoo is not something the city needs to focus on. The City needs <br />to stop funding special interests. <br />Samuel Brown, 222 S. Navarre St., spoke against the bill. He stated he is for the zoo but is not <br />for the tax. The Wheel Tax turned him off to taxes in this county. There has to be another way to <br />fund this zoo because it is an important asset to the community. <br />Mark McDonnell, 17180 Wheatrdidge Ct. Granger, he stated he has owned a fine dining <br />restaurant in South Bend for twenty five (25) years. He stated he has no enmity towards the zoo <br />and was a member of the zoo for a time. Restaurants have seen and fought these taxes across the <br />nation for various reasons. There is nothing fair about a single industry tax, an industry where <br />everyone knows its really hard to stay in business and to make money. To make two percent <br />(2 %) profit before interest is a monumental achievement, every single percentage is important. <br />These taxes do not sunset once they are imposed and usually just increase. The zoo is a local <br />attraction and this tax is not a tourist tax. On average, eighty -seven percent (87 %) of these taxes <br />are paid by local people. Mr. McDonnell asked why not tax all retail instead of just one industry <br />or tax groceries which are not taxed. It is not just or fair to tax one industry. <br />Kurt Janowski, 828 E. Jefferson Blvd., 828 E. Jefferson Blvd, echoed what Mr. McDonnell said. <br />He voiced his support of the zoo and the wonderful things they do and their master plan but he <br />does not support industry specific taxes. The only example of an industry specific tax that gets <br />large portions of support are Hotel /Motel taxes because those are indeed tourist taxes and not <br />paid by residents by and large of the community. If the Council decides this is such an amenity <br />that needs public support then it should find its way back into the City's budget. To levy an <br />industry specific tax, despite his support for the zoo, does not makes sense to him. This County <br />already has a higher than average property tax rate, so adding to that already high tax burden is <br />unnecessary. <br />Councilmember Randy Kelly pointed out that this was the spirit of this resolution, to have this <br />discussion on the pros and cons of a food and beverage tax. The zoo has spearheaded this <br />discussion and deserves recognition for the good work that they do every day. To be clear, this <br />resolution does not target the zoo specifically. There was in the County resolution but this one <br />simply states the City is interested in researching this tax as a potential development tool, what <br />entities might develop from it, and looking at other viable alternative options for funding. This <br />resolution is meant to start that conversation. <br />Councilmember Regina Williams- Preston stated she is interested in exploring this and learning <br />more about the options for this tax in addition to the zoo like sidewalks and different things <br />along those lines. Maybe this tax makes sense, maybe it doesn't but it certainly deserves a <br />conversation. <br />Councilmember Randy Kelly wanted it to be known that this is not a new idea or proposal and <br />over twenty (20) counties and municipalities have a food and beverage tax. There is precedence <br />for this kind of tax. <br />Councilmember Jo M. Broden added that she has a mixed mind on this given the lack of data or <br />discussion in terms of the impact that this tax would have on industries that do operate on tight <br />margins. She expressed her interest in continued research but is not sure of how much influence <br />this resolution is going to have down state. <br />Councilmember Dr. David Varner stated he does not understand the purpose of the resolution in <br />general. If the intent is to take it to the state legislature to learn more that is not something he is <br />in support of. A tax solution should not be the first option vetted, the resources the City has <br />already include a number of taxes already in existence which are intended to support these types <br />of programs. Some of the capital needs of the zoo could possibly be listed under economic <br />development which would make them available for TIF money. Perhaps there should be some <br />type of non - reverting fund set up which may help this situation as well. These options should be <br />10 <br />