09/10/07 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 10, 2007 SECTION IX. Pursuant to Indiana Code 6-1.1-12.1-2, the rehabilitation must meet all local code standards for habitability as a specific condition of having such property designated as a residentially distressed area. SECTION X. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. slTimothy A. Rouse Member of the Common Council Councilmember Dieter, Chairperson, Community and Economic Development Committee reported that this committee held a Public Hearing on this bill this a~ernoon and gave it due diligence by hearing the pros and cons and voted to send it to the full Council with a favorable recommendation. Mr. Derek Spier, AICP, Abonmarch Consultatnts, LLC, 750 Lincolnway East, South Bend, Indiana, made the presentation on behalf of the owner Kendall-Weiss, LLP. Mr. Spier advised that Kendall-Weiss intends to construct six (6) new, single-family homes on approximately 0.96 acres of land. The homes will consist of approximately 1,800 square feet and will include three bedrooms, a basement, and an attached two car garage. The average cost of the homes will be approximately $175,000. There will be possible infrastructure improvements that will consist of new curbs and sidewalks, replacement of water service taps, and asphalt resurfacing of the alleys. Mr. Gary Gilot, Director, Public Works, 13th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, spoke in favor of this bill. Mr. Gilot advised that the Council heard earlier in Committee from Jeff Gibney, Interim Director, Community & Economic Development that this is the kind of housing project that they are encouraging in the City and welcome this housing development. Mr. Gilot stated there will be infrastructure assistance from the Public Works Department. There is the long standing good neighbors program to help with 50% of the cost of curbs and sidewalks. In this instance Mr. Gilot stated that this project is an example of smart growth for their utilities. So some of the money that has been earmarked for extensions and replacements of water and sewer lines that otherwise would grow out into the unincorporated area under smart growth they would rather densify this inner-city neighbor with some new housing product that people want. Mr. Gilot noted that they use the extension and replacement money to replace old lead service lines or old lateral lines to the sewer that might not be in great condition. So it takes some of the risk away from the home builder to use an old lot in the city without having to worry about how much money they are going to have to spend for that service line that is out under the street. They have offered up to $5,000.00 infrastructure assistance for the service line and lateral within the public right of way for each of these six (6) homes or a maximum of $30,000.00 assistance for that infrastructure. The alley work will be done with private capital. Councilmember Dieter asked Mr. Gilot with the $5,000.00 that the City is giving each homeowner what would the total cost be to move the line for each home? Mr. Gilot advised that it could easily be that much or more if you run into a deep line under a public road and having to replace the curb, it depends on what they run into, so this is the right amount of money for the first few risk takers doing infill housing in the City, and to get some incentive from the administration to help with this infrastructure risk factor. This could be 50 to 100% of the cost. Mr. Gilot stated that they will learn as they go with the first few of these, eventually when the pump is primed and there is a lot of this kind a infill housing product going on the risk will be lower because the knowledge base will be greater. Councilmember Puzzello asked Mr. Gilot if the City has tried a project like this before in the Northeast Neighborhood? 21