09-23-02 Community & Economic Development

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COMMITTEE REPORT SOUTH BEND COMMON COUNCIL COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE MEETING SEPTEMBER 23, 2002 The September 23, 2002 meeting of the South Bend Common Council Community and Economic Development Committee was called to order by its Chairperson Karl King in the Council's informal meeting room. Members of the Committee in attendance were Ervin Kuspa,Al "Budy" Kirsits, and David Varner. Absent was citizen member Kevin Hunter. Bill No. 02-74 was introduced to the Committee by Mr. Mike Beitzinger, Economic Development Division ofthe South Bend Community and Economic Development Department. Mr. Beitzinger stated that this was a five year residential real property tax abatement for Garden Homes g Y p p Y o homes of approximately 1 036 L. Inc. The abatement is for a total of seven new, one story y , by E. rY Pp Y square feet. Each home has three bedrooms and two bathrooms and is valued at between$95,000- which has received prior tax 110 000 per home. These particular homes are part of a larger project p $ p P p abatement treatment by the Council. The owner is in full compliance with all the tax abatement requirements. None of the properties in this ordinance is located in a redevelopment area, and the annual tax savings to the homeowner will be $1,500 (capped by state law) resulting in a five year overall savings of about$7,600. Garden Home by E.L.,Inc.'s representative Michael E. Urbanski was also present for questions by members of the Committee. Neither the Committee members nor the public had any questions or comments,and Council Member Kirsits moved to send Bill No.02- 74 to the full Council with a favorable recommendation. The motion was seconded by Committee/Council Member Varner and passed unanimously by the full Committee. Ann Kolata accompanied by Attorney Alan Feldbaum presented Bill No. 02-75 to the Committee. This Bill is a resolution authorizing the Council to conduct remediation activities at the Frederickson Park site; to issue bonds for the cost of such remediation; and to pledge a portion of the City's COIT Tax revenues to secure the bonds. Ms. Kolata of the Economic Development Division of the City's Community and Economic Development Department explained that this particular resolution is required by the Indiana Development Finance Authority (IDFA) which administers the $1,000,000 Brownfields Clean-up Revolving Loan that the City received from the Indiana Department of Environmental Management(IDEM). According to Ms.Kolata IDFA requires assurance that monies received and,retained under this loan in prior years will not be used for other purposes. Ms. Kolata noted that Bill No. 02-75 which the Committee was reviewing is actually a substitute Bill that incorporates three or four minor changes required on late notice by IDFA. Council/Committee Member Varner moved to send Bill 02-75 to the full Council with a favorable recommendation and Council/Committee Member Krisits seconded the motion. Council/Committee Member Varner then questioned the pledge of COIT revenue. Mr. Feldbaum explained that the resolution is not the equivalent of a general obligation clause and that the loan is to be repaid from general revenue and COIT to the extent COIT revenues are available. In the public portion of the meeting, Public Works Director Gary Gilot explained that this financing arrangement is highly beneficial to the City because 10%of the loan will be forgiven,i.e.