04-23-18 Community Investment - Laserfiche WebLink

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®CITY OF SOUTH BEND I OFFICE OF THE CLERK Committeemember Davis made a motion to send Bill No. 18-16 to the full Council with a favorable recommendation, with the understanding he would receive his information. Committeemember Sharon L. McBride seconded the motion which carried by a voice vote of four(4) ayes. Committeemember Davis then made a motion to hear Bill Nos. 18-18 and 18-19 together for purposes of public hearing. Committeemember Williams-Preston seconded the motion which carried by a voice vote of four(4) ayes. Bill No. 18-18-Designating Property Tax Abatement Petition: Franklin Street Technology Park,LLC Bill No. 18-19-Designating Property Tax Abatement Petition: Wharf Partners, LLC Dan Buckenmeyer, Director of Business Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building, stated, These two (2) projects, in total, bring in over $22 million of private investment to the community. Through the abatement period, even though some taxes will be abated, we estimate over $1.6 million will be paid in that period. We are looking for less than $900,000 to be abated in total. Both are spec in nature. Mr. Buckenmeyer continued, This first rendering (referencing a slide in the presentation available in the City Clerk's Office) is an early concept but it is what is proposed on the corner of Sample and Franklin. It used to be known as the Hamilton Towing Block. This will eventually become, after three (3) phases, three (3) buildings divided up for Light Industrial or Tech utilization. The first phase is about 30,000 square feet. It will be divided into 5,000 to 15,000 square foot sections depending on how the rent prospects are looking as it is built. It will be a total of$3 million in private investment over about four (4) years on land that was purchased from the City's Redevelopment Commission at $84,000. That price was reached by our normal procedure. While there won't be direct jobs,this is a spec building so it will be built for future tenants. We anticipate that at least sixty (60), if not more,jobs will be created or retained in the South Bend area as a result of building this. DCI is recommending an eight (8) year phase-in tax abatement. So the abatement amount will lessen over those eight(8)years and will result in$439,000 of abated taxes with an estimated $138,000 taxes paid in that same period. Ann Hayes, Franklin Street Technology Park with offices located at 814 Marietta Street, South Bend, stated, I think Dan gave a great overview of this project. We started working with Dan and other members of the City several months ago as this project developed. We really worked together in the Ignition Park PUD to compliment the currently existing buildings that are there. The first phase will encompass a 30,000 square foot building and we plan to start construction on that soon after closing on the property this summer. Committee Chair Ferlic opened the floor to questions on Bill No. 18-18 from Committee and Council Members. Councilmember Dr. David Varner asked, If this building is loaded up with all sorts of communications and utilities, what other taxes to you anticipate as personal property tax? At one (1) point in time there was an exemption for tech equipment. I don't recall where that is. When EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld 1 South Bend,Indiana 46601 p 574.235.92211 f574.235.91731TTD574.235.55671www.southbendin.gov 3