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South Bend Redevelopment Commission <br />Regular Meeting —May 9, 2013 <br />6. NEW BUSINESS <br />A. South Bend Central Development Area <br />(1) continued... <br />bridge, which is outside the TIF area. They are getting proposals from a local artist to create <br />a mural on it. <br />Ms. Jones asked who is responsible for the landscaping north of the viaduct, on the east side. <br />Mr. Relos responded that the Parks Department is responsible for that. <br />Ms. Schey noted that although she has not been on the Commission long, and she <br />understands that the decisions that are made are not easy, she has observed a pattern that <br />concerns her. She has noticed that the Redevelopment Commission spends an inordinate <br />amount of money trying to keep businesses in the South Bend area. Not so long ago there <br />were discussions regarding the Bosch Plant and the lucrative arrangements and terms that <br />were put in place to keep those jobs in South Bend. Now, Commission is considering <br />spending $1,100,000 of public money on a parking lot that will benefit Memorial Hospital, <br />the second largest employer in the City. <br />Mr. Relos responded that he views those expenditures in lieu of a tax abatement. In a <br />development agreement Memorial promised to make a certain amount of improvements to <br />their properties; the Redevelopment Commission agreed to support that new development <br />with infrastructure improvements through the TIF district, based on the promise of <br />Memorial's increased assessed value and added jobs. We would make a substantial <br />commitment to a project through tax abatement for similar private investment and jobs. <br />Memorial preferred to have this arrangement in lieu of tax abatement. <br />Ms. Schey noted that Memorial is a non -profit entity and questioned whether they pay taxes <br />at all. <br />Mr. Relos noted that they do pay $1,600,000 a year in taxes. Although they are a non -profit <br />corporation, not all of their properties are tax exempt: it depends on their use. <br />Mr. Varner noted that one example is the Parking Garage where the physicians' offices are. <br />Floors 4, 5, & 6 are taxable. Mr. Relos noted that the the Skyway Building, Navarre Place, <br />the Heart and Vascular Center, and most of the office buildings are taxable as well. <br />Mr. Downes responded that he understands Ms. Schey's concern; however, it is not fair or <br />accurate to compare Memorial Hospital to the Bosch situation. Memorial is not going to go <br />anywhere else. Memorial is a community hospital. It is not only non - profit; Memorial's <br />campus is a gateway to the city. The job that has been done to the parking lots makes it <br />more attractive than those existing buildings that are still there. This is a lot different <br />situation than trying to make concessions to a privately owned business that we're trying to <br />convince to stay in South Bend and retain jobs. <br />0 <br />