06-11-73 Council Meeting Minutes

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REGULAR MEETING JUNE 11, 1973 COMMITTEE OF THE WHOLE MEETING (CONTINUED) use must be known before an area could be rezoned. Councilman Miller felt this was a very diffi- cult situation under the existing laws. Council President Nemeth asked if there were plans to widen McKinley. Mr. Wells indicated that there would be some work down to Manchester. Council President Nemeth asked if this would involve buying property, and Mr. Wells answered that it would not. Mr. Dunfee indicated that, as far as the doctor's office on Ironwood being compared as similar, it was a different situation because the property owners were not opposed to it and the doctor wanted to use considerable space in the front for parking. Councilman Parent made a motion that the ordinance go to the Council as unfavorable, seconded by Councilman Horvath. A roll call vote was requested. The motion lost by a roll call vote of four ayes (Councilmen Miller, Parent, Taylor and Horvath) and five nays (Councilmen Serge, Szymkowiak, Kopcaynski, Newburn and Nemeth). Councilman Kopczynski then made a motion that the ordinance go to the Council as favorable, seconded by Councilman Serge. A roll call vote was requested. The motion lost by a roll call vote of four ayes (Councilmen Serge, Szymkowiak, Kopczynski and Nemeth) and five nays (Councilmen. Miller, Parent, Taylor, Horvath and Newburn). Council President Nemeth suggested that, since the Council was undecided regarding the proposed rezoning, the Council pass on to the next item on the agenda and take action on the ordinance in the Council portion of the meeting. ORDINANCE AN ORDINANCE PROVIDING FOR THE RECEIVING AND CONVEYING OF A GIFT OF REAL PROPERTY TO THE CIVIL CITY OF SOUTH'BEND, INDIANA (MORRIS L. MORRISON). This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given an opportunity to be heard. Mr. Charles Lennon, Executive Director of the Department of Redevelopment, made the presentation for the ordinance. He explained that the property in question was referred to as a street island at the intersection of Twyckenham and Eckman. The property had been put up for sale because of delinquent taxes, by the County Commissioners in February of 1966, at which time Mr. Morrison bought the property. He purchased the property in order to keep it as open space and had not intended nor paid any taxes on the property, which amounted to $707.16 as delinquent taxes. Mr. Lennon indicated that the Park Department has kept up the property. It was Mr. Morrison's wish that the city accept the land and satisfy the back taxes and possibly make the area a "pocket park "; however, that would not be a stipulation. Miss Virginia Guthrie, Executive Secretary of the Civic Planning Association, asked if anyone coulc buy property without intending to pay taxes on the land. Mr. James Roemer, City Attorney, felt that would be immaterial. He indicated that it was not proper but it could be done. He explained that the city could either accept the property and wipe out the taxes or refuse the gift. Miss Guthrie indicated that the Park Department had kept up the property, and she felt other people might try and do the same thing when purchasing property. Mr. Lennon indicated that he could only speak on Mr. Morrison's behalf in that he wanted to give the property to the city. Mr. Lennon indicated that he could not say whether or not Mr. Morrison never intended to pay the taxes. Miss Guthrie indicated that Mr. Lennon had stated just that, and she asked how much work had been done on the property by the Park Department. Mrs. Janet Allen, 125 West Marion Street, questioned whether or not Mr. Morrison actually owned the land if he had not even paid any taxes on the property. Mr. Lennon indicated that Mr. Morrison had purchased the property for open space and now wanted to give it to the city. Councilman Parent asked if Mr. Morrison could not deduct the value of the property from his income tax because he was making it a gift to the city. Mr. Roemer felt Mr. Morrison would be subject to normal accounting procedures. Councilman Parent indicated that the Council was being put into an unusual situation. Councilman Kopczynski indicated that the land was triangular and in the middle of the street. He questioned making the area a mini -park. Mr. Lennon indicated that Mr. Morrison only suggested that perhaps a bench be put on the island. Council President Nemeth asked if the city would have to pay the taxes on the property, and Mr. Lennon indicated that, if the city applied to the state and accepted the propert, no taxes would have to be paid. If the Council did not accept, the property would go back onto th4 tax roll. Councilman Miller indicated that if no one bought the land, it should be taken care of by the county. Councilman Szymkowiak asked how the area was zoned. Councilman Miller made a motion that the ordinance go to the Council as favorable, seconded by Councilman Taylor. The motion carried. Council President Nemeth indicated that he felt this property should be accepted by the city because the city would be taking care of it anyway. Councilman Parent opposed. ORDINANCE AN ORDINANCE AUTHORIZING THE EXECUTION OF A LEASE, TRUST INDENTURE, ECONOMIC DEVELOPMENT REVENUE BONDS AND THE FORMS AND TERMS OF THE LEASE AND TRUST INDENTURE AND BONDS AND THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS PERTAINING TO INTERNATIONAL BAKERS SERVICES, INC. This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given the opportunity to be heard. Mr. Karl G. King, President of the Economic Development Commission, introduced Mr. Arthur Diamond, the attorney representing International Bakers. Mr. Diamond indicated that International Bakers manufactures bakery flavorings and is a wholesale corporation. He indicated that the requested amount of the bonds to be issued was in the amount of $250,000. Miss Virginia Guthrie, Executive Secretary of the Civic Planning Association, asked about the total amount involved for these bonds, and Mr. King indicated that, in 1972, bonds were issued in approximately $10,000,000 and in 1973, the city is around that same amount for the first five months. He indicated that the Economic Development Commission is proud of the quality of all the applications. Mr. David Wells of the Engineering Department asked if a utility could take advan- tage of this type of loan, and Mr. King answered that it could on the basis that the liquidation of the bonds would be taken care of by payment of charges. Councilman Szymkowiak made a motion that the ordinance go to the Council as favorable, seconded by Councilman Taylor. The motion carried.