05-11-92 Human Resources & Economic Development

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To err &port HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE alo the f lnuusw t Olountil of the Mug of Suuilil lira: The May 11, 1992 meeting of the Human Resources and Economic Development Committee was called to order by its Chairperson Council Member Roland Kelly at 4:45 p.m. in the Council Informal meeting room. Persons in attendance included Council Members: Luecke, Coleman, Puzzello, Washington, Kelly, Slavinskas, Zakrzewski, Duda, Ladewski; Ann Kolata, John Fonash, Ernest J. Szarwark,Don Porter, and Kathleen Cekanski-Farrand. Council Member Kelly noted that the first item to be reviewed was Bill No. 30-92 which would amend Section 2-151 of the South Bend Municipal Code by designating additional areas within the City as an economic development target area. Mr. S zarwark gave the presentation. He noted that Massachusetts Mutual Life Insurance Company the owner of Scottsdale Mall is planning to substantially upgrade the area. It would include a multiplex theater complex, upgrading parking and several improvements within the mall itself. Currently 60% of the mall is filled. He also noted that there have been complaints of one of the subcontractors who is no longer being used. Between 70% to 80% of the dollar volume of contracts are going to Union contractors. The mall also intends to use local labor when doing the upgrading. Thirty-six and one-half(36.5) billion dollars are spent in an eleven P count area of which 12 billion billion dollars are spent ' t in St. Joseph ose h Co unt Only 30% of this 12 Billion dollar figure goes to South Bend. Massachusetts Mutual plans to make a substantial impact on that dollar. Mr. John Fonash then reviewed the Economic Development Commission report of April 24, 1992. It was noted that because of the declining occupancy due to deferred renovation and deferred maintenance that the area has become undesirable. Following further discussion Council Member Slavinskas made a motion seconded by Council Member Washington that Bill No. 30-92 be recommended favorably to Council. The motion assed. There Committee mittee then reviewed Resolution request for real property tax abatement for Massachusetts Mutual Life Insurance Company on behalf of Scottsdale Mall. Mr. John Fonash reviewed the report. Council Member Zakrzewski questioned whether there would be rent restructuring and was advised that there would be a rent pass-through to offset the "death spiral" currently ly being experienced by the mall. It was also noted that new tenants are interested, and that a fourth major anchor is being pursued. Mr. Szarwark noted that in working with the Council Attorney that a substitute version of the Resolution has been prepared which further details many of the factual findings set forth in the Department of Economic Development's report of May 6, 1992 as to why the area in question meets the special exception provision of the municipal code. Council President Luecke noted that Section V. sets forth the specific findings which the committee would be making to qualify the area for a ten year real property tax abatement. Following further discussion Council Member Slavinskas made a motion seconded by Council Member Duda that Substitute Resolution No.92-40 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 31-92 which would approve the lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. Ii11