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South Bend edevelopment Commission <br />Regular Meeting - February 20, 1981 <br />5. OLD BUSINESS <br />There w4s no old business to present to the <br />Commission <br />6. NEW BUSINESS <br />a. Com ission consideration requested for a tax abate- <br />men request relative to an area commonly referred <br />to s 404 South Columbia Holladay Corporation). <br />Mr. McMahon: The first item relates to a tax abate- <br />meni request that we received with respect to 404 <br />Sou h Columbia. The project is being developed by <br />the Holladay Corporation. Mr. John Phair is with us <br />thi morning. As you know, Mr. Phair has also been <br />inv lved in the development of the River Glen., Office <br />Building adjacent to this property. This is a piece <br />of 1roperty that is located between the River Glen <br />Off ce Building and Lowe's, and it is the last remain- <br />ing parcel on Block 6. <br />The recommended action by the Commission is before <br />you I would direct the Commission to the second <br />pagE of this report. As we note in the explanation <br />section, the Staff has reviewed the information that <br />has been submitted by Columbia Place Associates with <br />res ect to the impact of tax abatement on their pro <br />for a or their ability to do the project. We have <br />fou d that the granting of tax abatement will have <br />a significant impact upon their ability to set po- <br />tential rents within that structure at a reasonable <br />figure that might be pursued in South Bend success- <br />fully at this point in time. We also note the im- <br />pact of industrial revenue bond financing on the <br />rent structure. In our opinion we feel that the <br />gra ting of tax abatement will affect those rents <br />by approximately $1.00 per square foot, and we feel <br />that is rather substantial. We feel that the cur- <br />rent package without tax abatement or IRB will leave <br />then with.a figure of roughl -.r $13.00 per square <br />foot, and we would agree that is rather difficult. <br />The suggestion made by Columbia Place Associates is <br />that "without tax abatement or IRB financing, in all <br />lik lihood, the project would not take place, at <br />least at this time under these economic conditions ", <br />and we would not dispute that based on our review <br />of tihat information. <br />4 <br />THERE WAS NO OLD BUSI- <br />NESS TO PRESENT TO THE <br />COMMISSION <br />