12-13-99 Council Meeting Minutes

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REGULAR MEETING DECEMBER 13, 1999 ($400,000.00). The Mayor stated that it was felt that the City should budget for the Hall cautiously. Rates can go up or down but if the trends remain then the City will be in the year in an amount similar to what the City is asking the NFF to contribute. The Mayor asked for the Council's favorable consideration of this budget. Mr. Bernie Kish, Executive Director, College Football Hall of Fame, 111 South St. Joseph Street, South Bend, Indiana, informed the Council that the budget submitted today is essentially the same as presented to them on September 8, 1999 with a few changes. Mr. Kish reviewed some of the figures in the operating revenue such as the restaurant, Press Box and enshrinement. In conclusion he noted that the operating revenue is $1.64 million dollars and the operating expenses are $1.62 million dollars for a plus of twenty -seven thousand dollars ($27,000.00). Mr. Kish thanked all members of the Council for their continued support of the Hall. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Mr. Jim Cierzniak, 1156 East Victoria, South Bend, Indiana, spoke in opposition to this bill. Mr. Cierzniak indicated that it has been three (3) months and the same budget is being submitted today. He indicated that he believed there would be some tough negotiating with the NFF and the City would come back with something much better but this is the same budget. Mr. Cierzniak further indicated that in 1999 the NFF was to give the Hall four hundred fifty thousand dollars ($450,000.00) which it did not receive as well as dollars from corporate sponsors. The Hall continues to lose $1 million dollars on the operational side. In conclusion, Mr. Cierzniak stated that the only thing the Hall has been good at is getting tax money which is over $2 million dollars at the present time. - Ms. Joyce Boaler, 1606 Hillsdale Road, South Bend, Indiana, spoke in opposition to this bill. Ms. Boaler indicated that the budget submitted today is essentially the same as submitted in September. She noted that taxpayers were assured that not a penny of taxpayers money would be spent on the Hall and she knew it was a lie and it is. She congratulated Mr. Cierzniak for keeping on top of the Hall's failure and expenses. She further stated that it is believed that the Studebaker Museum will also lose money and suggested that the Studebaker collection be moved to the Hall of Fame building. She also indicated that she believes the City will lose money on the new water park. Mayor Luecke, in rebuttal, informed the Council that the City expects to receive three hundred fifty thousand dollars ($350,000.00) from the NFF before the end of the year for 1999. He stated that the City must pay for the building and that is why he is trying to negotiate with the NFF. In the year 2006 principal payments start and he is trying to cut the City's costs in the long run. There was no one else present wishing to address the Council in opposition to this bill and there was no one present wishing to address the Council in favor of this bill. Councilmember Varner stated that he thinks it is a good idea that the City is looking at some new arrangement with the NFF. While that is up for discussion, the fact of the matter is that the City still has to deal with the situation at this point and time. He noted that he did not believe the City should be supporting the Hall but the City is stuck to a degree and he is therefore prepared to make a motion to begin to work on that deficit. Any contribution beyond that which is absolutely necessary is probably too much in that the City will contribute six hundred thousand dollars ($600,000.00) in the form of hotel motel tax and sports development funds in addition to the six hundred thousand dollars ($600,000.00) proposed in TIF money or general fund money. Therefore, Councilmember Varner made a motion to take a step toward reducing the deficit to a point which the City's contribution is no greater than that of the NFF which is approximately three hundred fifty thousand dollars ($350,000.00) at least on the tax side from TIF funds. To accomplish that, Councilmember Varner suggested the elimination of the line item of one hundred fifteen thousand dollars ($115,000.00) for upgrade in memorabilia which are the exhibits which go into the Hall. The marketing budget in excess of three hundred fifty thousand dollars ($350,000.00) for the last three (3) years has been $1 million dollars ($1,000,000.00) total. This line item could be reduced from three hundred fifty thousand dollars ($350,000.00) to two hundred seventy -five