2 Minutes 11/29/12 meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting—November 29, 2012 businesses are located at Innovation Park, employing 81 people with an annual payroll of $4.7 million. Two of the small businesses started at Innovation Park have graduated to the next stage of growth. Data Realty has relocated to its new facility within Ignition Park. F Cubed is making an interim move to the former St. Joseph High School and will ultimately locate at Ignition Park. Staff requests authorization to submit the Recertification Application to the State of Indiana. Mr. Varner noted that the city has spent significant funds purchasing and clearing the site at Ignition Park. He prefers the Data Realty model where ownership of the building is put in the hands of the business. He believes that makes good sense. He hopes that is the model we follow for the proposed multi-tenant,multi-use building. It doesn't increase the tax base for South Bend if the city builds and owns the buildings. He would like to see the multi-tenant building be built by a private developer or at least in partnership with a private developer. Mr. Davis agreed with Mr. Varner. He asked how helpful Senate Bill 443, approved here locally,has been as a selling point for tech companies to locate here. Mr. Inks responded that the information technology tax exemption has certainly been a helpful tool. It was used with Data Realty. He was not aware of any other conversations that staff had with those types of businesses,but other folks in the community have had conversations with companies in the information technology business and the abatement is a key part of those conversations. He expects that it will play a significant role in helping to attract those types of businesses to Ignition Park. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried,the Commission approved the State Certified Technology Park Recertification Application. A. Housing 1) Subordination Agreement of mortgage with Michael E. Malinowski to Indiana University Credit Union. Mr. Inks noted that this South Bend Home Improvement Program(SBHIP) loan is being refinanced for a lower interest rate and lower monthly payments. There is no equity being taken out. As the refinancing proceeds, without subordination, we would end up in first position. We are being asked to continue our subordination to the primary lender. Mr. Varner asked if this was a loan we never intended to recover. Mrs. Trowbridge responded that we are currently in second position to this first mortgage. Mr. Malinowski is making payments and has paid off a little more than half of what the original loan was. It was a 50% grant, 50% loan. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Subordination Agreement of mortgage with Michael E. Malinowski to Indiana University Credit Union. B. South Bend Central Development Area 4