02-07-77 Council Special Meeting Minutes

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1 SPECIAL MEETING FEBRUARY 7, 1977 Council Member Serge indicated he was under the assumption that the entire Studebaker collection was to be displayed, but he had read only a portion of it was going to be displayed. Mr. Lloyd Taylor, member of the Discovery Hall Advisory Board, indicated a museum to house the collection would require 25,000 square feet, and their square footage is 12,000. He said there are 48 or 49 vehicles in the collection, along with other industrial equipment of significance. He said in order to display this well, they were not certain they would be able to use all the vehicles. Mr. Serge suggested a rotating system could be used. Mr. Taylor indicated that the basis of the museum was the Studebaker Collection, and they wanted to utilize to the best of their ability the space available in the museum to portray the industrial and economic history of the community. Mr. Serge asked about the percentage of honorable pledges. Mr. Rosenthal indicated he felt that 90% were good bonified pledges, and that figure amounted to $3,400,000. He stated there were 1.6 million in good pledges left to cover the 1.4 million needed to complete the structure. Mr. Serge asked how much money was set aside for promotion. Mr. Ed Stanek, President of the Hotel -Motel Tax Board, indicated that the convention work had been contracted by the Convention Bureau of the Chamber of Commerce. He indicated this board was created by State law. He said there were eleven members, six appointed by the mayor of South Bend, three by the mayor of Mishawaka, and two by the County Commissioners. He said that income was derived from a transient room tax. He indicated their income has gone up to $175,099. He indicated the County Auditor invests this tax money at the highest possible interest rate. He said that his board had made the following recommendations; more rest room facilities, storage areas, and the addition of a. freight elevator. He said that provisions had been made at no, or very little extra cost to the taxpayer, for these items. Council President Parent asked why a freight elevator was not included in the present plan. Mr. Stanek indicated that the reason the freight elevator was not installed for the opening was that it was found that the bookings schedu for the oncoming two years there was only one that would possibly need such an elevator. He said that the cost of the elevator would be $65,000. He said that provisions have been made for the installation of the elevator. Council President Parent stated that the only reason for his con- cern was that they did not install a freight elevator in the County -City Building and no provisio: were made for one, and now one is needed badly. Mr. Stanek indicated that the convention facilit, was not meant to accomodate just any kind of convention. Council Member Kopczynski questioned the size and capacity of the elevators. Mr. McMahon said there were three elevators, one for passenger usage, and two for freight. One is 7' x 7' and the others are 11' x 71. He said the Hotel -Motel Tax Board was concerned about bringing very large objects into the lower courtyard area, and in order to do this there would have to be an over- sized elevator; however, provisions have been made to add such an elevator in the future if the need exists. Mr. Stanek indicated they had six strong candidates for the executive director position. He said the Century Center Board of Managers is in the process of securing a caterer, and convention promotion was contracted with the area Chamber of Commerce. He said a contract was signed with an advertising firm and they have picked up twenty -four interested organizations for future book- ings. He said the Convention Bureau has twenty bookings confirmed and teMtive for Century Centel as of this date. Council Member Taylor asked if the cash balance on hand at this time was ap- proximately over a half million dollars. Mr. Stanek indicated it was. Council Member Taylor asked what they planned to do with this money. Mr. Stanek indicated a good amount should go for promotion of the facility. He said his board will be picking up some of the furnishings. Mr. Taylor asked if the only two items the Board would agree to pick up were furnishing expense and promotional expense. Mr. Stanek said there were others and if Mr. Taylor wanted a copy of the budget he would furnish it to him. He said moneys were set aside for a convention manager, but those funds will not be touched until duties of the executive director are established. Council Member Adams indicated she had assumed that they would also be furnishing the kitchen equipment and furniture and asked when those would be installed. Mr. Stanek indicated that he did not say they would be furnishing the kitchen in its entirety, the convention portion they would fur- nish, and they would aid in the rest. Council Member Adams indicated the convention furnishings would cost an estimated $170,000, and asked if this would include the entire Convention Center. Mr. McMahon indicated it would, but it does not include the museum or other portions. He said the only section left is the theatre. Council Member Adams asked Mr. Stanek if the Board was committed for the entire amount. Mr. Stanek indicated he was not able to commit to the $170,000 figure, because it was only a projection. Mrs. Jane Swan, 2022 Swygart, asked how many elevators were in the building and what are there exact uses. Mr. McMahon indicated there were three, two freight and one passenger. Mrs. Swan asked the capacity of the passenger elevator. Mr. McMahon indicated it would hold fifteen to twenty people. He said the elevator was meant for the disabled and people unable to negotiate the stairs. Mrs. Swan asked about the private fund drive pledges, and wanted to know if the City would be liable for the remainder of the 1.4 million dollars. Mr. Rosenthal indicated the pledges were good and the bank has honored them. He said the City would not be jeopardized for the $1.4 million. He said the pledges were adequate to lend against and the foundation -could borrow directly from the bank if need be. He said that possibly one way would be for the City to borrow the money on a tax free basis at half the interest rate. Mrs. Swan asked if anyone knew what the parking rate would be. Mr. Mullen indicated it had not been determined. Mrs. Swan indicated the area residents were paying for the Art Center in three different ways, city taxes, school taxes and county taxes. She asked if the Art Center cannot make rental payments, would the City pick up their portion of the rent. Mr. McMahon indicated that there was a pro- vision in the lease between the Center and the City that if the City stops supporting the Art Center, the Center would be allowed to drop out of the building. Mr. John Underhill, 61625 Druid Lane, indicated he felt that the 360 parking spaces would not be enough, and if events were scheduled in the middle of the week the parking garages would be full from people working downtown. Mr. McMahon said studies have been made of what various areas would be used at what time of day. He said it was found that for convention purposes the number of close hotels and motels could furnish the parking for the out -of -town people. He said in addition 360 spaces will be provided just south of the building, over and above the 360 already provided. Mr. Underhill questioned the availability of labor to set up events and if those peopl( had to be union., Mr. McMahon indicated there was no agreements with any union. He said nego- tiations should be underway by summer.