12-15-75 Council Meeting Minutes

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REGULAR MEETING DECEMBER 15, 1975 RESOLUTIONS (CONTINUED) A public hearing was held at this time on the resolution. Councilman Serge indicated he felt the biggest issue facing cities at this time was the possibility of the loss of revenue sharing funds. He indicated this concern was expressed by many city officials at the National League of Cities Convention held recently in Miami Beach. He was of the opinion that at least 75% of the cities would be in financial trouble if the funds were no longer available. He suggested that the congressmen for the various states be urged to vote for the continuation of revenue sharing funds for the municipalities. Councilman Taylor indicated that the concept of revenue sharing meant decentralization. If this concept failed, he felt Congress would go back to the 1960 type of block grant approach and the local legislative branches of government would only have the authority to say "yes" or "no" to the receipt of these funds. He felt revenue sharing was the only way to have a true decentralization of decision making power in the country. He indicated that copies of the resolution should also be sent to the Governor and all senators. Councilman Nemeth referred to the resolution and the second Whereas clause, where "libraries" were allowed. He wondered if this would be permitted in the coming years as far as the expendi- ture of revenue sharing funds. Council President Parent explained that the resolution was merely a resolution of intent urging the continuation of revenue sharing funds and was similar to the resolution adopted by the Council last year. He supported the concept of revenue sharing and felt South Bend had been diversified in utilizing the funds. Councilman Serge made a motion to adopt the resolution, seconded by Councilman Taylor. The resolution was adopted by a roll call vote of nine ayes (Councilman Serge, Szymkowiak, Miller, Taylor, Kopczynski, Horvath, Nemeth, Newburn and Parent). Council President Parent directed the City Clerk to send copies of the resolution to the senators and representatives, and Councilman Nemeth suggested that copies be sent to all the congressmen in Indiana. Council President Parent indicated that he would discuss this matter further with the Clerk's office. ORDINANCES, FIRST READING ORDINANCE NO. 5935 -75 AN ORDINANCE APPROVING THE FORM AND TERMS OF LEASE AND TRUST INDENTURE AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO CRESSY AND EVERETT, INC. This ordinance had first reading. Councilman Kopczynski made a motion to suspend the rules and take action on the ordinance, seconded by Councilman Horvath. The motion carried by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Taylor, Kopczynski, Horvath, Nemeth, Newburn and Parent). The ordinance then had second reading. Mr. Kenneth Fedder, attorney for the South Bend Development Commission, made the presentation for the ordinance. He indicated that Cressy and Everett, Inc., was a realty firm in South Bend. A $125,000 expansion program was planned with the issuance of the bonds. He stated that, December 5, the commission approved the financing agreements. He indicated that the building would be located near the existing facility on Ironwood and McKinley. An additional 12 persons would be added to the work force. He introduced Mr. Alex Cholis, attorney representing the firm, and Mr. Clem Miller, secretary of the corporation. Mr. Gene Evans, Executive Secretary of the Civic Planning Association, brought to Mr. Fedder's attention an error which appeared in page 2 of the ordinance in Section IV. The bonds were not to exceed $125,000, and the word "exceed" had been omitted. Councilman Taylor made a motion to amend the ordinance to insert the word "exceed" in Section IV, seconded by Councilman Newburn. The motion carried. Councilman Horvath made a motion to pass the ordinance as amended, seconded by councilman Newburn. The ordinance passed by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Taylor, Kopczynski, Horvath, Nemeth, Newburn and Parent). ORDINANCE NO. 5936 -75 AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, NOTE AND MORTGAGE AND INDENTURE OF TRUST AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO CHAR -KING, INC. This ordinance had first reading. Councilman Taylor made a motion to suspend the rules and take action on the ordinance, seconded by Councilman Miller. The motion carried by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Taylor, Kopczynski, Horvath, Nemeth, Newburn and Parent). The ordinance then had second reading. Mr. Kenneth Fedder, attorney for the South Bend Development Commission, made the presentation for the ordinance. He introduced Mr. Kevin Butler, attorney for the firm. He asked that the Council accept a new ordinance in place of the one previously filed. He submitted it for their consideration. He indicated that the new ordin merely contained certain requirments not included in the ordinance filed. Mr. Butler presented photographs and sketches to the Council members concerning the new facility. Councilman Miller made a motion to amend the ordinance from the title on down with the acceptance of the new ordinance submitted by Mr. Fedder, seconded by Councilman Nemeth. The motion carried. Mr. Fedder recognized Mr. Fox, general counsel, Mr. Lee Harper, representative of Char -King, and David Travelstead, representative of Char -King. Hevn.d.ieated-that the project would be constructed in the mall area downtown, and he felt it would definitely be an asset to the downtown. He sub- mitted an additional document to the Council regarding the loan agreement and memorandum and in- dicated that the handwritten document would amend the agreements at various sections. Councilman Miller made a motion to accept the handwritten notes as amendments to the documents, seconded by Councilman Nemeth. The motion carried. Councilman Miller expressed wholehearted support of the project. Councilman Szymkowiak made a motion that the ordinance pass, as amended, seconded by Councilman Taylor. The ordinance passed by a roll call vote of nine ayes (Councilman Serge, Szymkowiak, Miller, Taylor, Kopczynski, Horvath, Nemeth, Newburn and Parent). Councilman Nemeth asked about the completion date of the project, and Mr. Fedder indicated it would be some time in October of 1976.