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F U C w DACE a Y Y 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER,CITY CLERK COMMUNITY INVESTMENT FEBRUARY 13, 2017 3:40 P.M. Committee Members Present: Gavin Ferlic, Regina Williams-Preston, Oliver Davis, Randy Kelly Committee Members Absent: None Other Council Present: Tim Scott, Jo M. Broden, John Voorde, Dr. David Varner, Karen White Other Council Absent: None Others Present: Adriana Rodriguez, Aladean DeRose, Kareemah Fowler, Graham Sparks Agenda: Tax Abatement Briefing-Aaron Kobb and Brian Pawlowski, DCI Committee Chair Gavin Ferlic called the Community Investment Committee Meeting to order at 3:40 p.m. Having no bills to discuss on the agenda, Committee Chair Ferlic gave the floor to the presenters from the City's Department of Community Investment. Brian Pawlowski, Department of Community Investment, handed out a memo to all council members present at the meeting. He stated, This will be a brief update on the changes to the terms Community Investment uses over time. The memo outlines the changes to the state law that happened in 2013 that didn't get discussed at that point. The Council has done some things because of that state law change but I just wanted to codify it a bit more and give an opportunity to answer any questions that you may have,with an example or two (2.)Essentially, prior to 2013,the State had a schedule set for abatements that pertains to both years and percentages. At 2013,the State did away with the percentages portion of the law in the schedule. What that meant was each abatement became its own abatement, weighed on its own merits, its own year time frame. For example,the Chase Tower abatement the Council did a few years ago did not have a set normal schedule, it was much more aggressive. Community Investment has been calling that a modified abatement. In reality, it's just an abatement because there is no standard and there's no modification. There are different schools of thought on this but when we realized the flexibility it gave us and the Council, we figured out that there may be ways to utilize these abatements in a bit more of an aggressive way up front that does a couple things: instead of a nine (9) year period of tax abatement you could do a five (5) year abatement at a higher percentage. That doesn't have the petitioner paying any taxes at all for those years but allows the 455 County-City Building•227 W.Jefferson Boulevard•South Bend,Indiana 46601 Phone 574-235-9221 -Fax 574-235-9173•TDD 574-235-5567-www.SouthBendIN.gov JENNIFER M.COFFMAN ALKEYNA M.ALDRIDGE JOSEPH MOLNAR CHIEF DEPUTY/DIRECTOR OF DEPUTY/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK OPERATIONS