Designating Tax Abatement - Vacant Land Adjacent to 3305 Lathrop Drive - Gateway Plaza Real Estate, LLC

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(10/22/2008) Janice Talboom - Re_ Tax Abatement Petition From Gateway Plaza Real Estate, Inc_ _ Page 1 From: Timothy Rouse To: RMATHIA@SouthBendlN.Gov Date: 10/22/2008 9:43 AM Subject: Re: Tax Abatement Petition From Gateway Plaza Real Estate, Inc. Attachments: City%20of%20Madison%20Tax%20Abatement%20Guidelines[1].doc CC: DDIETER@SouthBendlN.Gov,DINKS@SouthBendlN.Gov,JGIBNEY@SouthBendlN. Gov,JT... Bob, You have raised some very good points that add credence to the on going discussion that our Tax Abatement Ordinance needs review and updating. Also I agree that Banks have tightened their lending practices, and it seems to me that this is not an in appropriate time to "loosen" the parameters of the ordinance i.e. special exceptions. I don't believe the current requirements of our tax abatement ordinance is any more restrictive that most documents of that nature. However, there may well be some serious disagreement as to our objective that is the purpose, end in mind as to what we want to achieve in the process. I would hope that we partner with businesses working to maximize economic development for both business and the community (the City of South Bend); if that is not the case or is not possible all parties may well be better off if they (petitioner) does "move on to another location and by pass us." Note, there is a difference in economic development and economic growth. Although they are often related economic development involves doing what we do better whereas, economic growth addresses economic expansion. What I mean by my statement "abatements given by South Bend must be negotiated to benefit South Bend residents" is that I want to "maximize the benefits to residents; you made a point of the construction project being estimated at $1,480.180.00 creating construction jobs in the area. From my point of view if the construction project does not contract South Bend companies, the jobs that are created are not employing South Bend residents then the process does not maximize the benefit to South Bend residents and I think that this is too often over looked. I know there are very specific limitations in accomplishing that, but I'm not convinced it is even on the table. There is a huge difference between "benefiting residents and maximizing the benefits of residents." In regards to the concept maximizing the benefits of tax abatements to South Bend Residents, I really don't think it is currently part of the mindset of those representing the city to seek such requirements and I think that it is greatly the way the ordinance is worded and structured. I have attached an ordinance from Madison, Indiana my understanding is that many Indiana Economic Development Experts consider this to be a model ordinance. 1 think they try to maximize the benefit the to the residents of City of Madison and then Jefferson County, Indiana and then out of State. I know that Jefferson County'is different than Saint Joseph County and I'm not suggesting that we should adopt their ordinance verbatim. But I do believe it has some very good points we should look at. As I made mention of before there has been two very good educational seminars presented at the Century Center in the last 3-4 weeks and I was surprised and disappointed that no one from our CED Dept. was in attendance. I would like to see prompt discussion on this petition. Derek, will you arrange to address this on Monday under miscellaneous matters? If so, Janice, please copy these emails to all Council Members. Bob, thanks for your comments and research. Please don't take my comments to mean I don't appreicate the work you do. Tim »> Robert Mathia 10/21/081:33 PM »> Dear Rev. Rouse,