06-27-01 Community & Economic Development

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Qommitteu wort: ctommuttitp anti trottontir Ittin loputintt tommittet The June 27, 2001 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:05 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members: Coleman, Kelly, and Varner; Don Inks, Kevin Hunter, Michael Beitzinger, Terry O'Brien, Jon Hunt, Marty Wolfson, Greg Jones; and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly thanked everyone for coming and noting that the meeting was called to continue the discussion and review of the City's tax abatement procedures. He then called upon Don Inks to make a presentation. Don Inks provided an 11-page handout (copy attached) which he then highlighted. He summarized the previous tax abatements from 1998 to 2001 under current regulations and proposed guidelines. He noted that the proposed guidelines are based on the premise that the goals of tax abatements should be to encourage investment, increase the assessment and the overall tax base. Kevin E. Hunter provided a 2-page memo outlining his areas of concern(copies attached) Mr. Hunt noted that philosophical and policy issues must be carefully considered when considering the proposed guidelines. He noted that the State of Michigan offers "Renaissance Zones" whereas the State of Indiana can offer the "Edge Program", but it cannot be offered to retain jobs. Mr. Hunt stressed that the growing areas of concern are when consultants become involved and get footloose in showing potential areas for development. Mr. Inks then reviewed the proposed changes and assumptions for the proposed changes and then applied them to specific petitioners such as GTA Container, Rink Building, Koontz-Wagner, USF Holland, Batteast,Tire Rack,Lock Joint Tube, and Exacto. Mr. Beitzinger noted that USF Holland will be coming back to the Council to request an extension in light of the down turn in the economy. Kevin Hunter inquired whether South Bend gives out more abatements than anyone else in the State of Indiana. He also inquired as to why a hotel or motel would ever get tax abatement. Council Member Coleman stated that the City of South Bend does market its quality of life when seeking new or expanded development within the city. Mr. Hunt noted that Blackthorn is the marketing name whereas the Airport Economic Development Area (AEDA) is the legal name. He also noted that there are three redevelopment areas which constitute the blighted areas. Mr. Hunt noted that hotel/motel developments are part of the overall plan for the East Bank, the downtown and Blackthorn, noting that the city has been trying for over ten(10) years to get a hotel in Blackthorn. He further noted that there are over 250 firms located in Blackthorn which need more amenities. Council Member Kelly noted that financing is difficult for hotel/motel projects and that Grape Road is now considered a"safe investment"for such development.