10-24-01 Community & Economic Development

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totttutiUti *port: QCommunttt attb ee0114MiC ] tiopment ommitt Fez The October 24,2001 joint meeting of the Community and Economic Development Committee was called to order by its Chairperson Council Member Roland Kelly at 3:07 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Varner, King, Coleman and Kelly; Michael Beitzinger, Kevin Hunter, Director of Community and Economic Development Jon Hunt, Tony Mroczkiewicz of the Indiana Regional Council of Carpenters and Millwrights, and Kathy Cekanski Farrand, Council Attorney. Council Member Kelly welcomed everyone to the meeting which is aimed at continuing the discussion of the review of the tax abatement ordinance and its proposed changes. He noted that the Council Attorney has prepared a memo(copy attached) which addresses an introductory section which would summarize the basic categories of abatement and addresses "safety net" language. It would supplement Mr. Beitzinger's draft ordinance if agreed upon by the Committee. Mr. Beitzinger noted that there has been discussion to consider having three (3) years as the base abatement with the different items being added together to add additional years of abatement. Council Member King voiced concern since he thought all proposed amendments would be kept in one document. He also noted that he thought that points would be awarded based on certain thresholds being met based on a point system. Council Member Kelly noted that the proposed system is becoming too voluminous. Council Member King stated that at the June 6th Committee meeting we discussed incorporating the requirement of a legally binding agreement concept. He noted that just because something becomes difficult should not mean that we do not do it. Better accountability is also one of the goals of revamping the current ordinance. He suggested that we focus on the definitions, then address the tentative point values,and then address the thresholds. Council Member Varner noted that we should be mindful that the overall goal of a tax abatement system is to create assessment. He further noted that both Mr. Inks and Mr. Beitzinger voiced concern about having a user-friendly ordinance which was understandable. Mr. Hunt noted that the Project Future website was receiving twenty (20) hits a month and now it is receiving one (1) hit a month;and that there is nothing in the pipe line for 2002. The City needs to have base abatements which are big enough to act as an incentive. Mr. Hunter stated that South Bend has given more tax abatements than anyone else in the State of Indiana. He further stated that he likes the 3-year base abatement and then develop the tiering system. Mr. Hunt suggested that we focus on the Chart on page 12 of the draft ordinance, and consider using 3,4,and 5 years as the base abatement periods. Council Member Coleman agreed with Mr. Hunt's suggestion that we should focus on the grid on page 12 and build upon that. For example considering the size of the overall project with more incentives for larger projects. Establishing proper thresholds will also be critical.