02-11-08 Community and Economic Development

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Community and Economic Development Committee February 11, 2008 Page 2 Council Member Puzzello made a motion, seconded by Council Member White that Bill No. 09-08 be recommended favorably to Council. The motion passed. Bill No. 08-13: Ten (101 Year Tax Abatement Request for McKinley Apartments Housing, LP: Council Member Dieter called for a formal presentation on Bill No. 08-13 which is a request of McKinley Apartments Housing Partners, LP for a ten (10) year real property tax abatement for the property known as the old Target Store Retail Complex located on the north side of McKinley Avenue, west of Hickory. Bob Mathia, Economic Development Assistant Director reviewed his multi-page report dated January 28, 2008 (copy attached). He noted that: • Petitioner proposes to construct 208 1, 2, 3, and 4-bedroom apartment units in two (2) phases • 13 apartments will be set aside for disabled residents • Taxes to be paid of the ten (10) year period are estimated to be $1,952,324 • Taxes to be abated are estimated to be $1,913,666 • Petitioner meets the qualifications for a ten (10) year real property tax abatement under Section 2-77 of the South Bend Municipal Code entitled "Multi-Family Residential Developments" William J. Hollingsworth of Equal Development, LLC with offices located at 12557 Blandford Street, Carmel, Indiana made the formal presentation. He noted that the proposed development with be a quality development and that he will own the development 100% (See McKinley Apartments Ownership Structure flow-chart) In response to questions from Dr. Varner, Mr. Hollingsworth stated that the proposed development is designed to be a market leading affordable property for long-term competitiveness and viability. The buildings will be two-stories. Rents will be based on income and will be a part of a tax credit program resulting in monthly rents running from $350 to $850. He noted that the property in question has been vacant for a significant period of time. In response to questions from Council Member Kirsits, Mr. Hollingsworth noted that their development on SR 23 does have a community building and that one is proposed for the McKinley development. Council Member Puzzello noted that it is somewhat unusual to act upon the tax abatement request prior to the zoning being finalized. She noted that if the zoning is not approved that the tax abatement would not be valid.