10/22/07 Council Meeting Minutes

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REGULAR MEETING OCTOBER 22, 2007 Mr. Gilot advised that the City is partnering with Douglas Road Retail Partners, L.P. Holladay Properties on improvements along the Douglas Road gateway to South Bend. The City, in partnership with Holladay, has designed through Abonmarche Consultants and bid plans for improvements to Douglas Road from SR 23 to the Mishawaka City limits. Holladay has worked with the City to expedite design and right of way acquisition and provisions for stormwater so that this two lane road can be transformed to two lanes in each direction plus center turn lane as needed and two dedicated left turn lanes at SR 23 and Douglas. Mr. Gilot noted that the overall project is $2 million with a plan to repay infrastructure loans from the Douglas TIF economic development area taxes. The TIF is anchored by the existing Memorial Home Care building. Holladay is the owner of that $4.75 million development with Memorial as the long term tenant of the building and the taxpayer. Holladay has further agreed to construct additional projects in the TIF valued at $3.3 million. The taxes will be sufficient to repay the $ 1 million Major Moves loan at 5% and the $1.1 million ($100,000 as contingency for transaction expenses if needed) private loan at 5% through Wells Fargo guaranteed by Holladay. The taxes on the economic development projects in this TIF will repay the loan sources plus interest to enable the infrastructure to be built sooner rather than later. Mr. Gilot stated that the early action is important to public safety and as a catalyst for this area to develop the way we would all like to see it. The two land road is in bad shape and has a lack of proper drainage. In this state the road is an impediment to seeing full development potential of this area flourish. Mr. Gilot encouraged the Council's support for the appropriation of the loaned capital from the smaller Major Moves distribution in Fund 202. He advised that it is consistent with the City's policy to use Major Moves for road preservation and economic development related road investment. Councilmember Rouse asked Mr. Gilot how long it will take to repay the loan. Mr. Gilot advised that the repayment schedule is being negotiated; however he believes that the 15-20 year range would be the worse case scenario. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill as amended. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 66-07 PUBLIC HEARING ON A BILL ESTABLISHING THE URBAN HOMESTEADING PROGRAM (DOLLAR HOUSE PROGRAM) AND OTHER RELATED MATTERS Councilmember Dieter, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and sends it to the full Council with a favorable recommendation. Ms. Pam Meyer, Director, Community and Economic Development, 1200 County-City Building, South Bend, Indiana, made the presentation for the bill. Ms. Meyer advised that this bill would allow for one element in the development of the City's program to address vacant and abandoned homes, commonly referred to as the Dollar House Program. The ordinance establishes an urban homesteading program in accordance with Indiana Code 36-7-17 and designates the Board of Public Works (BPW) as the agency charged with administering the Dollar Program. The bill also provides that the BPW is authorized to contract with entities with experience in neighborhood and housing development to complete the program. Contracts with South Bend Heritage Foundation (SBHF), Near Northwest Neighborhood (NNN), and the Northeast Neighborhood Revitalization Organization (NNRO) have recently been approved. 6