Amending Chapter 2 Economic Development Target Area to Article 13

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Cole Associates Inc. proposes to construct a 13 ,000 square foot addition to its existing headquarters facility and also to improve a portion of those facilities with the proceeds of a $1 ,500 ,000 . 00 City of South Bend Economic Development Revenue Bond. This project would create 45 new permanent jobs with an additional estimated annual payroll of $1 , 125 ,000 . 00 . However, in order for Cole Associates Inc. to be able to obtain the issuance of an Economic Development Revenue Bond, it is necessary for the real estate located at 2211 East Jefferson Blvd. to be declared an Economic Develop- ment Target Area. Without the designation of this property as an Economic Development Target Area and without the issuance of an Economic Development Revenue Bond the project would not be economically feasible for Cole Associates Inc. Indiana Code § 36-7-11 . 9-4 defines an Economic Develop- ment Target Area as an area that: "Has become undesirable or impossible for normal development and occupancy because of a lack of development , cessation of growth, deterioration of improvements or character of occupancy, age , obsolescence , substandard buildings , or other factors that have impaired values or prevent a normal development of property or use of property." (Emphasis added) It is the opinion of Cole Associates Inc. that this area qualifies as an Economic Development Target Area for the following reasons : First, there has been a lack of develop- ment and growth in the area. In fact , this project is the only project that has been proposed for this area for some time. In addition, since this property is owned by Cole Associates Inc. and since Cole Associates Inc. has its corporate headquarters on this property it is highly unlikely that any other party would be able to develop this real estate. Third, it is not economically feasible for Cole Associates Inc. to proceed with this project without the issuance of an Economic Development Revenue Bond. Finally, and most importantly, it should be noted that this property was purchased prior to the enactment of the Target Area Statute. Most likely, the Dugdale Estate would have qualified as an Economic Development Target Area at the time of the original construction. Given the original intentions of Cole Associates Inc. regarding expansion and the nature and condition of the real estate prior to its acquisition by Cole Associates Inc. , this is the type of development that should have been "grandfathered" in the Target Area Statute. It is the opinion of Cole Associates Inc. that this is exactly the type of "other factors" contemplated by the State Legislature when it passed the Target Area Statute. Cole Associates Inc. has provided the City of South Bend with substantial benefits as a result of the location of its