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contributions to the tax rolls for decades. The Department of Community Investment staff <br /> recommends to the Council the approval of this resolution for a real property tax abatement at <br /> one hundred percent(100%) for six (6) years. When the abatement does finish,the property is <br /> expected to generate up to about $250,000 in tax revenues. <br /> Jeff Smoke, Great Lakes Capital, 112 W. Jefferson Boulevard stated, We are pretty excited about <br /> this project. It is the first office building built in downtown South Bend in a number of years. <br /> Councilmember Davis asked, Who is the developer? <br /> Mr. Smoke replied, Great Lakes Capital is the developer and the owner is an entrepreneur from <br /> Elkhart that is from South Bend originally. <br /> Councilmember Dr. Varner stated, We've been doing abatements on graduated scales. In this <br /> case with the one hundred percent (100%) abatement, I'm becoming uncomfortable with how <br /> much it is getting out of hand. We've spent so much time tilling the public what abatements are <br /> and, now, with these requests, it means no taxes. I'm afraid this will become the standard request <br /> and I will have a difficult time allowing all the tax revenue to walk away. <br /> Mr. Buckenmeyer replied, We do intend to do a deeper investigation on abatements. However <br /> over the years and through the changes, it is the same amount of money abated, it is just a <br /> different duration and different formula. <br /> Mr. Mueller stated, And that shift has come with putting less or even no TIF funds to projects <br /> anymore. <br /> Councilmember Broden asked, Could you please update that employment data? Also, what is the <br /> owner's business plan for the attraction and retention for the retail and office space? <br /> Mr. Smoke replied, The owner is from South Bend originally and he was excited when he saw <br /> the revitalization of South Bend's downtown. He is an entrepreneur launching the business on <br /> the top floor. We will be talking to tenants for the office space. <br /> Councilmember Scott stated, It is all about return on investment. We've put off having a <br /> conversation about abatements just because of timing on agendas, but that will come up. I'm not <br /> a fan of one hundred percent(100%)tiers, but I am a fan of getting this parcel on the tax rolls. I <br /> don't think this will set precedent. <br /> Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor <br /> of or in opposition to the legislation. There were none. He then turned the floor back to the <br /> Committee for further comment or main motions. <br /> Committeemember Randy Kelly made a motion to send Bill No. 17-76 to the full Council with no <br /> recommendation. Committeemember Smith seconded this motion which carried unanimously by <br /> a voice vote of six (6) ayes. <br /> 6 <br />