06-22-15 Community Investment - Laserfiche WebLink

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COMMUNITY INVESTMENT JUNE 22, 2015 3:53 P.M. Committee Members Present: Gavin Ferlic, Henry Davis (XAB), Dr. David Varner, Dr. Fred Ferlic Citizen Members Present: Bob Emery, Pat Mullin (AB) Other Council Present: Tim Scott, Valerie Schey, Oliver Davis, Karen White, Derek Dieter Others Present: Brock Zeeb, Pam Meyer, Chris Fielding, Bernie Feeney Agenda: Bill No. 27 -15 Establish an Economic Development Target Area —1MS Building and Adjacent Parking Lot Bill No. 15 -51 Designating Tax Abatement forJSK Development /Ireland Hospitality 122 Callander - 6 Year Real Property Bill No. 15 -52 Approve Extension of St. Joseph County Housing Consortium The Community Investment Committee chaired by Gavin Ferlic showed three bills on its agenda. The first bill 27 -15 presented by Brock Zeeb from the Cl Department asks the Council to designate the JMS building and the adjacent parking lot an economic development target area. This request was supported by the Economic Development Commission and the city as necessary to attract investors to re- purpose the building. This historic office building built in 1910 now sits 75% vacant suffering from a lack of upkeep. The plan is to re- purpose the building to become an apartment building. Investors can get tax benefits for committing to the project. Valerie Schey asked if this was in a TIF area and if so when abated to other government units suffer. Brock said a baseline assessment would defer tax gains; but not lower current distributions. Ultimately upon motions by Dr. Ferlic and Dr. Varner supported by all, the bill was forwarded favorably. Bill 15 -52 which asked the Council to approve an agreement extending the St. Joseph County Housing Consortium was presented by Pam Meyer, Director of the Community Development Department. Pam said this approval would allow local government units to receive federal funds through various programs. Pam added that the existing consortium in place since 1991 has brought over 14 million dollars to the City. Responding to Valerie Schey's questions, Pam said administration costs were capped at 20% by the feds. Dr. Varner motioned to approve. Dr. Ferlic seconded and all affirmed. The last item bill 15 -51 was an abatement for JSK development. JSK intends to build an 81 room Holiday Inn Express at 122 Callander on 3.73 acres just south of Ireland and Michigan. The project would cost over 6 million dollars.