Laserfiche WebLink
1 <br />REGULAR MEETING RECONVENED(Continued <br />Mr. Jerry Hammes <br />President <br />South Bend Economic Development Commission <br />230 West Jefferson Boulevard <br />South Bend, Indiana 46601 <br />Re: Application of Carter Lumber of Indiana, Inc. for issuance of <br />City of South Bend Economic Development Revenue Bonds <br />Dear Mr. Hammes and Commission Members: <br />The undersigned representatives of the lumber and building material suppliers of St. Jo <br />County including South Bend, Mishawaka and Osceola, object to the application forissuan <br />of City of South Bend Economic Development REvenue Bonds for the construction of a lumb <br />and building supply facility for Carter Lumber of Indiana, Inc. <br />h <br />We have examined the application and facility proposed to be constructed by Carter Lumber <br />of Indiana, Inc. in Osceola, Indiana and firmly believe that the construction of such a <br />facility utilizing revenue bond financing will have an adverse competitive effect on other <br />facilities already constructed and operating in Osceola, Mishawaka, South Bend and St. Joseph <br />County. <br />There exists a limited and currently depressed market for building materials in St. Joseph <br />County and the surrounding market area, which market is currently shared by more than fifteen <br />lumber and building material suppliers. The entrance of yet another building supplier into <br />this market will not increase the market as a whole but will serve to diminish the market share <br />of each of the lumber and building material suppliers already operating in St. Joseph County. <br />It is respectfully submitted that the proposed economic development facility will not i <br />employment in South Bend, Osceola or St. Joseph County. Approximately one -third of the <br />of the undersigned building material suppliers are on economic lay -off due to the depre <br />of the building supply industry. If the application for Economic Development Revenue B <br />financing for Carter Lumber of Indiana, Inc. is approved by your Commission and the pro <br />facility is constructed, it is likely that additional employees of the undersigned will <br />with loss of their jobs. <br />As the South Bend Economic Development Commission is aware, the Indiana legislation and <br />you operate contains a provision at I.C. 1971, 18 -6- 4.5.14 requiring you to consider wh <br />a proposed economic development facility may have an adverse competitive effect on Simi <br />facilities already constructed and operating in the city or county. The intent of the <br />legislature was to protect against the very adverse economic impact that will be create <br />Carter Lumber of Indiana, Inc. obtains the favorable financing arrangements available t <br />the issuance of economic development bonds. <br />crease <br />employee: <br />sed stat( <br />nd <br />osed <br />be faced <br />r which <br />ther <br />ar <br />ndiana <br />if <br />rough <br />The undersigned respectfully request that you do not approve the issuance of City of So th Bend <br />Economic Development Revenue Bonds for the construction of the Carter Lumber of Indiana, Inc., <br />facility. <br />Attached hereto as Exhibit A and incorporated herein is the previous letter of objectio to the <br />Carter Lumber of Indiana, Inc. application, filed on behalf of the representatives of t e lumber <br />and building material suppliers. <br />Sincerely, <br />/s /Arthur A. Taelman /s/ Peter H. Mullen /s /Thomas M. Foley <br />President, Circle Lumber President, Eckler -lahey Lumber Co. President, Big C Lumber <br />/s /Edward D. Nowak /s /Erhart A. Strohm /s /Merrill C. Crull <br />General Manager, Scotmar Lumber President, McKinley Lumber Secretary- Treasurer <br />Henderson & Crull <br />/s /Irvin L. Morse /s/ James F. Kuykendall /s /Paul M. Lehner <br />Secretary- Treasurer Manager, Wickes Lumber President, Rose Fuel <br />R. J. Corlett & Sons <br />/s /Pierce Williams /s /Dennis Sedam /s /George C. Makris <br />President, William Home Center General Manager President <br />Old Fort Supply Company Moeller- Makris Builders' <br />He indicated that there were two technical defects in the inducement resolution. He said that <br />this resoluuion binds the CIty to issue bonds in the event the Commission approves thei <br />application. He said the address of 1701 Lincolnway West does not exist. He indicated this <br />should at least be tabled until the address matter is corrected. He indicated that another <br />competitor into the depressed market will cut into the existing lumber yards' profits. Council <br />Attorney, Kathy Cekanski - Farrand, indicated this resolution should be amended in the title <br />by stating "An inducement Resolution:; and change Section 3, making it Section 4, adding a new <br />Section 3 to read "The liability and obligation of the Common Council of the City of Sotith <br />Bend, Indiana, shall be limited solely to good faith efforts to consummate such proceedings <br />and issue such Bonds, and neither the Common Council of the City of South Bend nor the City <br />of South Bend, Indiana, or their officers or agents, shall incur any liability whatsoev r if <br />for any reason the proposed issuance of such bonds is not consumated:" Council Member aylor <br />made a motion to amend the resolution, seconded by Council Member Dombrowski. The moti n <br />carried. Council Member Taylor made a motion to adopt the resolution, seconded by Council <br />Member Serge. The resolution was defeated by a roll call vote three ayes (Council Members <br />Serge, Taylor and McGann) and six nays. <br />