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South Bend Redevelopment Commission <br />Regular Meting - October 5, 1979 <br />6. NEW BIAS I <br />h. cohtinued... <br />Ms. Auburn: What is the ten year tax abatement <br />worth monetarily for the people who are going <br />to develop the project? <br />Mr. Szarwark: I presume it has been costed out <br />but I don't have the figures with me. <br />Mr. Ellison: Ms. Auburn, I don't believe there <br />is any question that an abatement is probably necessary <br />in the large part to cause development to happen. The <br />problem we have.as a community, and are going to continue <br />to have, is that we are offering many incentives often <br />used in combination, and I don't believe we always <br />know what their total impact will be. Tax abatement <br />is an incentive that is paid for locally by local <br />taxpayers. To that extent, abatement is some - <br />think that we will have to control to a greater <br />degree. In order to do that, we will need to have <br />a smoother process that allows for more lead <br />ti e. In response, I have drafted an ordinance <br />to try to establish a procedure in the abate- <br />ment process that provides more lead time <br />for evaluation of abatement requests. I say <br />this not to suggest that a tax abatement not <br />be given in this particular project, because <br />I feel the Council should give the abatement <br />de ignation. But, as we continue down the <br />ro d over the next several months and years, <br />I Jo think we need to be sure we evaluate the <br />im act of an abatement as well as public <br />ex enditures for amenties such as the East <br />Ra a that would further enhance that <br />pa ticular property. In other words, we <br />ne d to know the cost benefit of all the <br />pu lic incentives and improvements and to <br />th t extent, we need a longer time frame process <br />fo evaluation. Everybody recognizes the <br />gr wing unemployment in the country and that <br />em loyment creation from private sector invest - <br />me is is a necessary stimulant, whether you are <br />in downtown South Bend, Indiana, or in Goshen, <br />In Tana. It is absolutely essential. I don't <br />think that this community will ever shut off <br />ab tement, or do something else that would act as <br />a Jeterrent to the private sector, but we do have <br />a ublic responsibility to understand the effect <br />of the process. <br />-13- <br />