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REGULAR MEETING OCTOBER 14, 2013
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<br />Nick Surak: No they do not.
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<br />Councilmember Schey: Is there any other component other than the, cause I think more
<br />important than race and gender is the individual socio-economic status which is why again, and I
<br />have probably said it so many times, it is because there is such a large number of residents in
<br />South Bend living at or below the poverty level that the City is classified as an entitlement City
<br />which makes us eligible for the Community Development Block Grant money that we receive
<br />which supports the NNN. And I apologize, I realize people feel that I am being redundant but I
<br />think that this is a point that bears repeating. The fact that the NNN is a community
<br />development corporation that is and was established as a not-for-profit 501C3 to improve the
<br />physical, social, and economic conditions of our cities neighborhoods and because of the source
<br />of funding that supports the NNN, I feel that this tax abatement is unique and different from the
<br />other tax abatements that have come before us. And I realize that the tax credit that you are
<br />talking about is something different that is an investment vehicle that is sold on the open market
<br />and people buy it, and you would receive like you said up to $8 million dollars or this separate
<br />LLC for-profit LLC will receive the money. But I keep turning back to the NNN and I
<br />appreciate all the neighbors that have come before us because clearly this project will have a
<br />greater impact on their daily life, than residents that don’t live in that neighborhood, but still as a
<br />City Council representative, that oversees the city’s budget of which a portion of the city’s
<br />budget which the Council doesn’t you know have any determination in how much CDBG
<br />money we receive on an annual basis but, it is part of the operating budget, I feel beholden to ask
<br />these questions. People have said that they don’t quite understand why we are asking all these
<br />questions about this tax abatement versus a tax abatement such as Federal Mogul or Tire Rack
<br />those companies are big for-profit that don’t necessarily have the same goals or missions of the
<br />NNN. The reason why the proposed community benefit, and it was proposed, it was, I would
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<br />ideally welcome an opportunity to continue this discussion for October 28, so that we could
<br />have a meeting between now, a Community Investment Committee Meeting, between now and
<br />thst
<br />October 28, which would still get you and your application into the state by November 1. But,
<br />I would welcome an opportunity to discuss a community benefit agreement further to help,
<br />again, not race or gender but those people living at or below the poverty level and how are we
<br />going to get those folks employed, because race and gender is distinct from income and I think
<br />that the CDBG money that funds the NNN is awarded because we have so many people living at
<br />or below the poverty level. So, I close with the fact that I think that this tax abatement could use
<br />some additional discussion and consideration.
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<br />Councilmember Henry Davis, Jr., I want to say thank you to everybody who is here tonight,
<br />listening to this issue and please keep coming out. Thank you for the presentation, I really do.
<br />The reason why is called vetting. The problem is that when we don’t vet the first thing
<br />somebody runs out here and says that Council is just a rubber stamp of the Mayor. And then
<br />when we do vet we are being obstructionists. So I am just trying to figure out where is the happy
<br />medium at, I guess we need to be friends with everybody, well the truth is, and that’s not going
<br />to happen. I think that you know that our job requires us to vet and vet properly. And vet in
<br />such a way that it is a representation of the people who have elected us into office. So don’t take
<br />offense to this, don’t take it personal, it’s part of the process, if you come in here as ask for a
<br />government subsidy, government help, government welfare, that’s what it is really called, when
<br />we get to the lower economical end of the bracket. And so, when we ask for these things to be
<br />clear and understand that you will be asked questions about what you are doing and why you are
<br />doing it. It’s nothing against you, it’s the fact that you are asking for something and in return we
<br />are going to ask as well. And we need to be clear, so, but, I was just looking over this list I have
<br />up here, of like all these different contractors that have gone out of business in the City of South
<br />Bend, it’s well over 100. And, Oliver said something earlier today about the unemployment rate,
<br />our unemployment rate is well over the state average, its well over the five county radius that we
<br />are within, it’s well over the national average. So it would behoove us and we would be remiss
<br />in the opportunity all nine (9) of us, to find out how we can as a Council restore and keep some
<br />of that money back here in the city. We would be almost crazy not to do it. The truth is that 4%
<br />is very small; it’s so small that it is only $320,000.00 of the $8 million dollar project. That’s
<br />how small it is, it’s not even a drop in the bucket, and I can’t even get a street or curbs done for
<br />$320,000.00. I can’t get the sidewalk done for $320,000.00. So that’s how small it is, and so
<br />when you begin to divide that up amongst a company of folks to get a project done, there will not
<br />be enough activity for that company to stay on that job for the duration of the job. And that has
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