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Purchase
<br />Assessed Price at
<br />Spaces Value of 3 times
<br />Area Provided Land & B Assessment
<br />Parcel 1. The east side of the 100 block of
<br />South Main Street adjacent to the
<br />Odd Fellows Building on the north,
<br />and Business Systems, Inc., on the-
<br />south, running east to the alley. 24,090 72
<br />Parcel 2. The east side of the 100 block of
<br />North I-lain Street bounded on-the
<br />north by Colfax Ave., on the east
<br />by the alley, and on the south by
<br />the alley at mid-block. 32,010 108
<br />Total Cost of Property
<br />Black Top on Parcel I.,
<br />Black To-o on Parcel 2.
<br />Meters at $90 each.
<br />Total Cost
<br />$lo6,88o $320,640
<br />154,,370 L'6 3 ,11 0
<br />$783,750
<br />2,660
<br />3,500
<br />16,200
<br />cM6, iio
<br />It is proposed that the land be leased to the Doi-mto-vrn South Bend Council, a
<br />L,
<br />nonpro fi t organization, (or to some newly organized nonprofit corporation to be owned
<br />by the downtown businessmen) at an annual rate sufficient to liquidate the bonds over
<br />a period of 20 years and pay the interest thereon. This plan appears to be feasible,
<br />since our calculations show that revenue bonds totalling $810,000 carrying an interest
<br />rate of 5% per annum could be liquidated in twenty equal annual installments of
<br />$65,000 each. The estimated income to the non-profit organization is estimated at
<br />$50,500 per year and is based on the following premises:
<br />a. 50% usage (slightly lower than Barton-Aschman rate.).
<br />b. 9 hours per day, 6 days a week, for 112 weeks each year.
<br />c. 200 per hv,�tx parking fee (recoy—rended by Barton- As ch-m-an . )
<br />On the basis of the above cor�p U utations, it should be noted th_z the estimated —annuzal
<br />U
<br />installments exceed the estimated annual income by X15,000® it also
<br />should be noted that 655 usage provides a brealre-,ien. it should be further noted tat-
<br />the President -f `-he Do,.-7�atoi,,n South Bend Council izidi c,---d the ic,!, usage would
<br />approximate 7 5� - The income estimate also may be conservative in, t"aat no atllowance,
<br />or income, ha,-:-, been anticipated for niglattti,,e parking. In any event, we believe the
<br />stockholders in the nonprofit coa:-.poration should guarantee re-pa�yment of the bonds.
<br />At the end of the 20-year -period-, the City would own the two lots anzq_
<br />In the event the bonds are liquidated over a 30-year 'period, the annual
<br />installments would be approximately $53,000. Or, the extended period could be
<br />utilized to cover additional expenditureso which might be incurred in connection
<br />with the implementation of theproject.
<br />In view of the importance of the project to the downtown community, it appears
<br />reasonable that the Downtown South Bend Council would underwrite any possible
<br />relatively small amount involved. It should be mentioned also that the additional
<br />annual revenue resulting from changes in curb parking time limits and fees estimated
<br />at $47,000 would make the project self-supporting and provide the coverage normally
<br />required-for parking revenue bonds.
<br />The free enter -rise system was not overlooked in arriving at this decision.
<br />Quite to the contrary, it was thoroughly reviewed end discussed but-bo workable
<br />solution meeting the requirements of the Barton -Aschman recommendations resulted.
<br />The flexibility offered by ownership of the non-profit corporation by the
<br />merchants offers many ways for the merchants to promote use of these lots by their
<br />customers so that sufficient revenue will be generated to pay o:'f the bonds. More-
<br />over, this plan would cost the taxpayer nothing and would provide sufficient space
<br />to meet present parking needs in the downtown South Bend core area. Should additional,
<br />parking space be needed in the future, a multistory facility could be erected on one,
<br />or both, of the lots.
<br />It is the opinion of the Committee that this reco=.,endation be made a part
<br />of the comprehensive plan for the improvement of the Central District of South Bend
<br />resulting from the studies made by Hamer & Co. Associates, and BliLir & Stein
<br />Associates, Inc. It is also the opinion of the Committee that its recommendation,
<br />if accepted., be implemented as soon as all necessary legal and financing details
<br />can be worked out.
<br />Mayor Bruggner's Committee
<br />South Bend Patking
<br />A. J. Port8., Chairman
<br />M. L. Milligan
<br />R. E. Whiffen
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