06-26-72 Council Meeting Minutes

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REGULAR MEETING JUNE 26, 1972 ORDINANCES, THIRD (CONTINUED) ORDINANCE NO. 5405 -72 AN ORDINANCE TO AMEND SUB - DIVISION (2) OF SUB - SECTION (a) OF SECTION 15 -16 OF CHAPTER 15 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA. This ordinance was given third reading. Councilman Kopczynski made a motion that the ordinance pass, seconded by Councilman Szymkowiak. The ordinance was passed by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and Nemeth). RESOLUTIONS RESOLUTION NO. 309 -72 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA IN THE MATTER OF FIRST BANK AND TRUST COMPANY OF SOUTH BEND, INDIANA, TRUSTEE FOR LAND TRUST #29 -5083, THE OWNER OF SAID LAND TRUST BEING CITY DEVELOP- MENT COMPANY, AN INDIANA PARTNERSHIP. WHEREAS, the First Bank and Trust Company of South Bend as Trustee for Land Trust #29 -5083 has submitted its intention to the Economic Development Commission of South Bend to purchase and rehabilitate the property at 127 North Michigan Street, South Bend, Indiana. This property is within the R -66 Urban Renewal Plan. WHEREAS, the First Bank and Trust Company of South Bend as Trustee for Land Trust #29 -5083 has submitted a statement of public service to the above Economic Development Commission of the City of South Bend and said Commission has forwarded this statement of public service with their approval and comments to the South Bend School Corporation, a copy of which is attached, and WHEREAS, the affirmative response and analysis of the South Bend School Corporation has been received as presented to the Clerk of the City of South Bend and attached, and WHEREAS, the statement of public service by First Bank and Trust Company of South Bend as Trustee for Land Trust #29 -5083 and the Economic Development Commission of the City of South B have been submitted for approval and comments to the Area Plan Commission of St. Joseph County and the affirmative action and comments of the Area Plan Commission have been received by the Clerk of the City of South Bend as attached, and WHEREAS, the requirements of the application as described in the "Municipal Economic Development Act of 1965 of the State of Indiana" as amended have therefore been met to,this point, including a projection of the number of jobs created, the estimated payroll created and the approximation of the cost of the land and construction, and the impact on utilities and fire and police facilities of the City of South Bend with the approvals of the school corporation and the Area Plan Commission having jurisdiction of the area in which the proposed facility is to be built, and WHEREAS, the plan meets the desire of the Redevelopment Commission of the City of South Bend, WHEREAS, now the First Bank and Trust Company of South Bend as Trustee for Land Trust #29 -5083 seeks approximately $75,000.00 from an issue of revenue bonds of the Economic Development Com- mission of the City of South Bend to be signed by its Mayor and by its City Clerk and further desires to enter into a lease of 20 years duration to be known as a net net net lease sufficient to pay the principal and interest of these bonds and obtain title at the end of the lease, and WHEREAS, by virtue of the net net net lease, the First Bank and Trust Company of South Bend as Trustee for Land Trust #29 -5083 indicates its intention to pay all expenses of the operation, maintenance, insurance, property taxes, whatever of the facility, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend that the statement of public service on the part of the Economic Development Commission of the Area Plan Commission and the South Bend City School Corporation be accepted and approved, and THEREFORE, BE IT RESOLVED that the South Bend City Common Council authorize the Economic Devel- opment Commission of the City of South Bend to proceed to make preliminary agreements with the proposed lessee, the First Bank and Trust Company of South Bend as Trustee for Land Trust #29 -5083, in the nature of a conditional commitment to enter into a lease with the First Bank and Trust Company of South Bend as Trustee for Land Trust #29 -5083, and THEREFORE, BE IT RESOLVED that the Economic Development Commission of the City of South Bend shall, as soon as the new lease form is properly prepared, submit the same to the Clerk of the City of South Bend to be prepared by a member of the Common Council as a proposed ordinance for the acceptance of same and issuance of revenue bonds to cover the amount of money needed. /s/ Peter J. Nemeth Member, South Bend Common Council A public hearing was held on this resolution at this time. Mr. Kenneth Fedder, Attorney for the Economic Development Commission, introduced Attorney Allan Schrager who made the presentation. The resolution would authorize revenue bonds for the remodeling of the former Worth's store at 127 North Michigan Street, which will be occupied by Drumville - Guitarland. The amount of the bonds would be $75,000. Mr. Schrager displayed a blueprint to the Council showing the changes which will be made in the building. Miss Virginia Guthrie, of the Civic Planning Association, asked Mr. Karl King, President of the Economic Development Commission, if there is a limit to this type of financing. Mr. King replied that there is and that it is tied to South Bend's unemployment rate. There would be a cut -off of this type of funding if our unemployment rate falls to a certain percentage. The South Bend metropolitan area presently has a4.2/ unemploy- ment figure. Councilman Parent moved for adoption of the resolution, seconded by Councilman Taylor. The resolution was adopted by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and Nemeth).