02-13-14 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting — February 13, 2014 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) continued... Mr. Varner asked whether Noble Americas will expect tax abatement. Mr. Fielding responded that they will expect tax abatement. However, we've made no indication that we will allow any exceptions to the ordinance. Over the life of any abatement they would still be paying almost 52 -54% of what they would without abatement, so there would be a tremendous upside. Mr. Varner suggested providing a cash flow sheet that shows how much would be paid in taxes even with tax abatement. Otherwise the public will only hear the $2,000,000 investment number. Mr. Fielding responded that they will certainly provide those numbers at the time the tax abatement is considered. He noted that in addition to the tax value, there is the additional value of 50 jobs that will pay $55- 60,000 per year. The ethanol plant is also one of the biggest users of the city's sewer, so the city will receive money from that source also. Ms. Jones raised the environmental impact of the ethanol plant when it was in production before. She wondered how much of the improvements they make will improve that negative impact. Mr. Fielding responded that simply the plant's coming back into production will result in improvement. Mr. Horvath of Public Works is working diligently on the permanent well solution. Noble has been very gracious with us. They immediately signed our utilities agreement. The pump that we've always had running there to address those issues will continue to run until the plant starts or the well starts. The indication is that even if they lower the amount of ground water being pumped by the plant on a daily basis it would still address nearly all of those issues, minus the wells. There is a permanent solution being put into place. Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried, the Commission authorized staff to proceed with preparation of a development agreement with Noble America for the former ethanol plant, based on the terms described in the staff report. D. West Washington- Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area.