10-25-04 Community & Economic Development

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The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee The October 25, 2004 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 3:30 p.m., in the Council Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Kelly, Puzzello, Varner, Kuspa, Coleman, Kirsits, and White; Mayor Stephen J. Luecke, City Clerk John Voorde, Building Commissioner Don Fozo,Ann Kolata,Bill Schalliol, Terry Lang,Bernie Feeney, Andy Laurent,Gladys Kopola and Kathleen Cekanski-Farrand,Council Attorney. Council Member Kelly noted that the Committee members include Council Members Coleman,Kuspa,Kirsits and himself. Council Member Kelly noted that he called the Committee meeting so that a presentation on the Studebaker Corridor SEC/CDBG Proposal could be made by Ann Kolata. Ann Kolata stated that within the next few weeks an application will be submitted for a $21 million Section 108 loan. In 1999, the Mayor appointed an advisory steering committee "Developing Concepts". The Redevelopment Commission and the Council adopted a strategy in 2000-2001 which addressed three (3) main sections: A = south of Sample Street; B = north of Sample Street, and C = Oliver-Plow property. The goals included aggressively going after financing. The time period was projected to be 5-10 years at a cost of$13- $33 million. The biggest unknown costs would address demolition costs and environmental remediation. Ms. Kolata stated that to date $4.3 million in grants have been received, as well as $655,000 in CREED dollars from the State of Indiana. An application has been submitted to HUD for $2 million for brownfield monies which go hand in hand with the Section 108 loan package. In response to a question from Council Member Kelly,Ms. Kolata stated that HUD loans assume that they will be repaid with CDBG monies,however the City Administration would like to use tax incremental dollars, CREED dollars or COIT,but not CDBG monies. Ms. Kolata stated that the City is not eligible for$21 million of Section 108 loans unless it receives two (2) waivers from Congress. The City Administration is working with Senator Bayh's office and are requested a "slum and blight" classification because it offers more flexibility. Three(3)steps over a 4-5 year period would be involved: Step 1: $11.2 million, Step 2: $6.5 million and Step 3: $3.5 million. City can apply for grants but if resources show that it could not be repaid then the Administration will scale the numbers back. The projected demolition costs for the stamping plant are $5.5-$6.5 million, and are projected to take two (2) years to complete. Area B is being deferred and includes the Abe Marcus building. Community and Economic Development Committee Meeting of October 25,2004 Page 1