05-12-08 Community & Economic Development Committee

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COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE PAGE #1 OF 2 The May 12, 2008 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by Derek Dieter, Chairperson, Community and Economic Development Committee at 3:34 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Member's Tim Rouse, Oliver Davis, Tom LaFountain, AI "Buddy" Kirsits, Martha Lewis, Bob Matia, Catherine Fanello, Mayor Steve Luecke, Jamie Loo, Rita Kopala, Kathleen Cekanski-Farrand, Don Inks, Robert Jagger, Donna Chamblee, John Voorde, Mark Smith, Catherine Andres Committee Members present, Derek D. Dieter, Chairperson; Ann Puzzello, Member; Karen White, Member BILL N0.08-44 5 Year Real Property Tax Abatement for 1401 S. Main St. -Old Fort Building Supply Called upon by Chairman Dieter, Bob Mathia gave Community & Economic Development's summary of the petition for abatement. He explained this was the second of a 3 phase development project by which Old Fort proposed to build a 13,000 square foot warehouse for their products at a cost of $325,000. The project would create 2 new jobs and help retain 20 existing. In financial terms, the project would generate $55,735 in taxes annually after abatement. Don Inks indicated Old Fort was also pursuing a UEZ tax credit package. Responding to a question from T. Rouse, Inks indicated if the UEZ application were granted the abatement would be withdrawn. Councilmember White made a motion to recommend this bill favorably to full Council. Councilmember Puuello seconded the motion which carried. BILL N0.08-45 5 Year Residential Abatement for the Villas at Lake Blackthorn Section I -Cooreman Real Estate BILL N0.08-46 5 Year Residential Abatement for the Villas at Lake Blackthorn Section I I -Cooreman Real Estate The Community & Economic Development committee agreed to combine the hearing for both abatement petitions. Bob Mathia explained the project review before introducing Donna Chamblee of the Cooreman Real Estate Group who then proceeded to explain the background of the project necessitating what amount to an extension to the abatement eligibility for the Villas project. In Section I she explained 50 lots had been developed over the past 5 years. However 51 lots hoped to be developed would be hindered if the abatement scheduled to expire in November were not renewed. Sec II due to expire in July faced a similar impediment. She went on to indicate that currently the vacant lots generated only $9,000 per year in taxes. Fully developed the project would generate nearly a quarter million dollars annually. Chairman Dieter noted that he owns a home in the project; but has filed a conflict disclosure. Discussion among CouncilmembePs ensued regarding the Council's position on all residential abatement. Given prior discussions relative to imposing a moratorium on abatements the fate of these petitions seemed to hand in the balance. Mayor Luecke suggested the Council may want to pass the designating resolution which would affirm the city's support of the project. Once additional data was available relative to the effects of HEA 1001, the Council could more judiciously consider its residential abatement policy. Rouse, White and Varner concurred. Inks said members to assess a financial impact could be available in a week. Kirsits, Rouse, and Varner indicated Cooreman should not be left hanging and that the Council should indicate a sign of "good faith." To that end, on Puzzello's motion and White's second, both bills were sent favorably to Council.