07-13-15 Common Council Meeting Minutes

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REGULAR MEETING JULY 13, 2015 NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. The sale of property located at 51190 and 51270 Mayflower Road, South Bend, Indiana is in the best interests of the City of South Bend, Indiana, and the South Bend Common Council hereby authorizes the Board of Public Works to take any and all lawful steps necessary to dispose of the Property pursuant to and in accordance with the terms of Ind. Code 36- 1- 11 -4.2. Section II. The Common Council hereby designates and confirms the following persons to execute and accept, and to witness the execution and acceptance, respectively, those documents necessary for the consummation of the transaction contemplated by this Resolution. Party to Execute Documents: Gary Gilot, President Board of Public Works Party to Attest to the Execution of Documents: Linda Martin, Clerk Board of Public Works Section III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Member. Common Council Councilmember Mr. Gavin Ferlic made a motion to combine bills 15 -58, 15 -59, & 15 -62 together for purposes of public hearing. Councilmember Derek Dieter seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember Gavin Ferlic, Chairperson, Community Investment Committee met this afternoon and send these three (3) bills to the full Council favorably. Presenter: Chris Fielding, 14" Floor Dept. of Community Investment — First I would like to thank Kathy Cekanski- Farrand for helping assisting in this. As this was the first time going down this path as an economic development tool and she was a great help. Thank you Kathy. Before you, you have a multi- faceted development project where we request a favorable recommendation for the Redevelopment Commission for a development agreement and a master lease that will be taking place on Thursday. That master lease will allow us to partner with Great Lakes Capital to allow us to build a 200,000 sq. ft. spec building on Ameriplex on lot no. 7 approximately a 22 acre site. The second part is a tax abatement on that building as the city's redevelopment commission will be entering into a master lease for five (5) years. It only makes sense to number one (1) that we don't pay taxes and number two (2) that the tax abatement will already be in place to attract tenants to the building so the abatement can already be in place. Upon approval of the building the period for the tax abatement is an eight (8) to ten (10) year tax abatement. The total taxes that they would pay on that would be $1,157,000. Total taxes to be abated would be $734,000. On the master lease for the incentive package is a maximum out of pocket for the Redevelopment Commission tiff funding of $1,674,000 over a of five (5) year period, if the building is not leased. We have every belief in our efforts that the building will be leased within 12 -24 months. Our goal is to be leased before the building is done. 20