South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-06-09
.SEEBIRT REJECTS.
PROPOSAL TO BUY
GOLF LINKS SITE
Declares City's Finances Pre-
vent Acquisition of New
Public Park.

-ity's bonded debt limitation, were
siven as reasons for a definite re-
'usal by Mayor Seebirt, Thursday, in
declining the offer made by the
tudebaker-Fish interests. proposing
TO sell 10 the city for park and golf
purposes a 97-acre tract, a parcel
OF the ]. NJ. Studebaker farm.
Representative of the owners re-
Gently approached the mayor on the
proposition OF selling 20 the city the
tract for 5000 900 IN letters to L.
j. Ollier and G. NJ. Witwer, the
mayor reviewed the financial condi-
ton OF the city, setting out that need
ed improvements approximating
$775,000, alone would run the mar
gin Of constitutional Indebtedness TO
point within 1925, 900. OF the limit
presently allowed Added TO chic,
he told Mr.. Witwer, was 20 be con-
sidered an approximate expenditure
by the city Of $500. 900, for the re-
moval from Division St OF the Grand
Trunk railroad tracks
Lease Not Favored.
The tract of land which was rep
resented by the interested parties as
desirable for park purposes and
"a golf course. lies between the pres
.ent Grand Trunk right-of- way and
jefferson blvd. and is bounded on
the west by Eddy ST. Its eastern
boundary is Greenlawn av. The
price Of 100000 offered on the ex-
pressed condition the city would re-
tain title 20 the land for an addition
TO the city's park system.
IN setting out his specific reasons
for not recommending a purchase
OF the tract, the mayor made mem
ton Of the undesirability of a lease
contract, which would permit the
tenancy of the land by the city for
a period Of 20 years and at the eX-
piration Of that time its purchase at
the same figure.
Il do not see that this would solve
the situation" reads the letter TO
Mr.. Witwer on this point. declaring
the question of law would remain
and that bond houses would reserve
the purchase price as applicable TO
the total amount sought for by the
city or already obtained in their
purchase OF bonds covering future
improvements
The letter to Mr.. Witwer. which
extended the reasons for refusal.
follows:
Il am herewith returning 10 you
the offer made by Hon. Frederick
5. Fish under date of May 18th.
1922, whereby he on behalf of the
owners. offered for sale 10 the City
of South Bend a tract Of 81 acres on
F. jefferson blvd 70 be used for
park purposes only at a purchase
price Of 100000.
II have taken considerable time
10 consider this matter and TO ad-
wise with others and I am convinced
that II would be very unwise for the
city to incur this obligation at this
time
I'm brief. the financial condition
OF the city is this: The constitu-
ton OF Indiana provides that no
municipal corporation snail ever be-
come indebted in any manner or for
any purpose to an amount in the
aggregate exceeding two per centum
on the value of taxable property
within such corpotation. and all
bonds or obligations in excess OF
such amount are void
The net taxables OF the city at
the present time are s131,11S.36O.00.
Two per centum on this amount
fixes the limitation OF our indebted
ness at S2.622.367.0O. The bonded
debt of the city at the present time
is S1.532.500.00 and the unfunded
Indebtedness of the city. which IS
made up principally of park con-
tracts amounts 10 over 500. 100000;
which means that the city has an
unused portion OF this limitation IN
the amour. of approximately ST.
600. 10000. Every one will concede
that &c would be very unwise financ-
ing on the part Of the officers Of
the city II wa should put the city
in debt TO the full amount OF the
constitutional limit. 4 margin o.
approximately 100000 90 ought 10
be maintained at all times 20 meet
emergencies that might very easily
tGfall the city. This leaves about
$500 10000 which we have TO ex-
PEND IN making additions, improve
ments and betterments 20 city prop
erty 10 keep abreast OF the great
growth OF our city. and IL must 5e
remembered that during the period
Of expansion in the last four years,
the city consumed over $1,000. 0OO.-
90 making extensions OF property 10
meet the growth OF the city.
'I want 20 call your attention 10
some OF the pressing needs of the
city and the amount OF money that
they Will require.
Water works stations
and extensions $500. 900. 90
Fire and police alarm
systems ......... 100000
New police station and
court building ..... 100000
New trunk sewer sys-
TENS .-....-..... --.-.. lOV,OOO.OO
New fire station and
equipment ......... 5000. 90.
Total ...-.......... S115, 100000
L might add 10 this amount OF
S775.OOO.OO an additional sum OF ap-
proximately S4O0.O00.00 which the
city may be required 20 Obligate
Itself for within the near future in
order 10 make a binding contract
with the Grand Trunk Western
railway company for the removal OF
its tracks from Division street.
1T has been suggested 10 me that
the city might purchase this land
by a lease contract whereby II
shall not obligate itself TO pay any
thing but the annual rent and at
the end OF twenty year period
shall obtain title 20 the land I do
not see that this would solve the
situation In the least as The nues-