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Home My WebLink About17-04 Resolution Supporting the Commerce Center Development227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 January 3, 2017 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT Mr. Tim Scott, President South Bend Common Council 4th Floor County -City Building South Bend, IN 46601 RE: Commerce Center Dear President Scott: PHONE: 574/235 -9371 FAX: 574/235 -9021 Filed in Clerk's Office KAREENMAH FOWLER CITY CLERK, SOUTH REND, IN Attached for the Common Council's consideration is a resolution which outlines the Council's support of the compromise agreement reached between the City and David Matthews on the Commerce Center project. The agreement provides for a nine story maximum building height with increased public /green space along the East Race area and a parking garage. The City will ask for Council approval of a ten year tax abatement and request $5 million in TIF from the Redevelopment Commission. The City has determined that this agreement is the most effective and financially viable compromise available. This resolution, in conjunction with Council support for the tax abatement, will serve as a notice of the Council's support for the agreement, including the height of the structure, when it goes before the Area Board of Zoning Appeals for approval of the height variance required for the project. Thank you for your consideration. I will attend the Committee and Council meetings to address any questions. Sincerely ows PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ADMINISTRATION & FINANCE ECONOMIC RESOURCES TIM CORCORAN PAMELA C. MEYER BRIAN PAWLOWSKI ELIZABETH LEONARD INKS AARON KOBB 17 Y1�1 [I700131 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, SUPPORTING THE COMMERCE CENTER PROJECT LOCATED AT 401 COLFAX AVENUE, 230 AND 228 SYCAMORE STREET, AND 312 LASALLE AVENUE IN THE CITY OF SOUTH BEND, INDIANA WHEREAS, Commerce Center Development, LLC (the "Company ") owns certain real property and improvements located at 401 Colfax Avenue, 228 and 230 Sycamore Street, and 312 LaSalle Avenue (collectively, the "Site ") in the City of South Bend (the "City "), upon which the Company has proposed to construct a mixed -use development (the "Project "); and WHEREAS, the proposed Project is subject to all applicable laws, including zoning and land use laws; and WHEREAS, in compliance with applicable laws, the Project is expected to require certain zoning approvals before it may lawfully be constructed, including, without limitation, a variance from limitations on the height of any building constructed on the Site; and WHEREAS, the Common Council of the City of South Bend (the "Common Council ") is vested with powers and duties to effectuate the purpose of the City of South Bend Zoning Ordinance (the "Zoning Ordinance ") regarding the implementation of the Comprehensive Plan for the City of South Bend, and the Board of Zoning Appeals (the "BZA ") has the power and duty to hear and determine all variances from development standards of the Zoning Ordinance; and WHEREAS, during its regular meeting on December 12, 2016, the Common Council expressed its support for the Project and requested that the City and the Company reach a compromise height less than the twelve (12) stories proposed by the Company in its Planned Unit Development District Ordinance (Bill No. 41 -16); and WHEREAS, on the Company's current real property holdings, the Project is only financially viable at nine (9) stories or higher; and WHEREAS, the Common Council desires to reiterate its support for the Project, specifically at the proposed compromise height of nine (9) stories, or approximately one hundred twenty -seven (127) feet above street level and one hundred forty -three (143) feet with mechanical units; and WHEREAS, the Common Council desires to express its support for the expeditious approval by the BZA of a height variance for the Project prior to the June 15, 2017 final submission deadline for the Northern Indiana Regional Development Authority's review of the $4,909,604 allocation awarded to the Project through the Indiana Regional Cities Initiative; and WHEREAS, the Common Council desires to express its present intention to consider reasonable alterations to the East Bank Village Master Plan — Phase 1, dated June 10, 2008 (the "East Bank Plan ") and the Zoning Ordinance concerning building height limitations so as to promote development in the City and to protect the public interest; and NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. The Common Council hereby states that it supports the expeditious approval by the BZA of a height variance for the Company's Project at the proposed compromise height of nine (9) stories, or approximately one hundred twenty -seven (127) feet above street level and one hundred forty -three (143) feet with mechanical units. Section II. The Common Council hereby states that it intends to consider reasonable alterations to the East Bank Plan and the Zoning Ordinance concerning building height limitations so as to promote development in the City and to protect the public interest. 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 Member, Common Council 4000.0000089 46138163.001 r'kt )LN i LG NOT APPROVED DOPTO Member, Common Council Member, Common Council Filed in Clerk's office pds; LER CITE( CLERK SOUIi EN,D, IN oil Agreement • Roughly $35 million investment on the Commerce Center site, including a grocery store, parking garage and apartments, that account for roughly % of the total. investment outlined in the East Bank Plan • Layout of garage and mixed use building consistent with the East Bank Plan • $4.9 million Regional Cities grant from the State • $5 million in TIF from Redevelopment Commission (RDC) • 100% tax abatement for first five years, 95% tax abatement for next five years • Reduced height at street level from 12 stories, roughly 159' (or 175' with mechanical units) to 9 stories, roughly 127' (or 143' with mechanical units) • Increased green, open space between building and East Race area • Continued efforts to refine final design Process to Meet Regional Cities Deadline • January 9 —Common Council passes resolution supporting project at 9 stories and sharing its intention to update plan and zoning ordinances • January 9 —Common Council passes declaratory resolution on tax abatement • January 10 —City files height variance with Board of Zoning Appeals (BZA) • January 12— RDC approves $5 million of TIF for project • January 23 —Common Council passes confirming resolution on tax abatement • February 1— BZA approves height variance • June 15 —Final submission deadline for the Northern Indiana Regional Development Authority's review of the project's Regional Cities grant • Summer— Common Council updates plan and amends zoning ordinances Filed in Clerk's Ci iced WF_ _EE iAFk � 6W LER CITY OLE K, OUTH EMEND, IN