10-27-08 Community and Economic Development

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COMMUNITY AND ECONOMIC DEVELOPMENT OCTOBER 27, 2008 Committee Members Present: Derek D. Dieter, Chairperson; Ann Puzzello; Henry Davis, Vice Chairperson; M. Catherine Andres, Citizen Member; Mark Smith, Citizen Member Other Council Present: Timothy A. Rouse; David Varner; AI "Buddy" Kirsits; Tom LaFountain Others .Present: Martha Lewis; Ann Kolata; Marti Wolfson; Dale Devon; Mayor Stephen Luecke; Chuck Leone; Gary Gilot; Don Inks; Kathleen Cekanski-Farrand; Jamie Loo; Derek Spier BILL N0.08-94 -ABATEMENT FOR LAFAYETTE FALLS PHASE IV At Chairperson Dieter's request, Bob Matia of Community & Economic Development described the request by Kendall-Weiss for 5 year residential abatement. The project encompasses 29.1 acres with room for 98 homes. Over the five year period $652,581 would be abated~and $189,895 in taxes would be paid. A detailed report from C&ED is attached. Derek Spier from Abonmarche was present to answer questions. On a motion by Councilmember Puzzello to send favorably followed by a second from mark Smith, Citizen Member, the bill received favorable support. Henry David voting nay explained misgivings about the need of an incentive to develop the property. With past sales good were we giving incentives that were not really needed? If that be the case the City was giving away too much. BILL NO.08-95 TAX ABATEMENT FOR 1019 NOTRE DAME AVENUE At the Chair's request, Bob Mathia from C&ED described the project and rveiwed the departments findings. The proposed single-family home costing $350,000 would generate over $2200 in taxes over the five year period, abating over $24,000. The C&ED report is attached. Dale Devon, the builder, was present to answer questions. President Rouse asked if the lot was in a TIF District. It is. Citizen Members M. Catherine Andres and Mark Smith motioned to send favorable. All supported except Henry Davis. BILL NO. 08-97 -APPROVE APPLICATION FOR AN EPA BROWNFIELD ASSESSMENT GRANT Senior Redevelopment Specialist Ann Kolata explained the city's application fora $200,000 grant to continue the site testing funded by earlier grants. Mark Smith motioned and Henry Davis seconded followed by unanimous support to send to Council favorably. MISCELLANEOUS Bob Mathia asked the Council if they would consider granting a special exception fora $1.5 million dollar flex building located at Bendix & Lathrop. The special exception was needed in that the North American Industry Classification System code for uses did not fall under qualified uses. This issue let to a lengthy discussion initiated by Tim Rouse asking whether abatement is in the best interest of the city. He emphasized the need to assess the effects of HEA 1001 on revenue forecasts ultimately begging the question, does abatement work? Having recently attended workshops focusing on the need for acots/benefit analysis when considering abatement, Rouse called for a review of the criteria for abatement in the current ordinance. Seeing abatement as but one tool for development its use should be designed to benefit South Bend first. Councilmember Varner defended the current abatement standards recounting what when into the current bills design. Rouse countered, saying we faced a new paradigm requiring a responsible review of who pays taxes and the effect of abatement on them. M. Catherine Andres echoing