HomeMy WebLinkAbout01-09-17 Community InvestmentOFFICE OF THE CITY CLERK
KAREEMAH FOWLER, CITY CLERK
COMMUNITY INVESTMENT JANUARY 9, 2017 4:45 P.M.
Committee Members Present: Gavin Ferlic, Regina Williams- Preston, Oliver Davis,
William Smith (Citizen Member), Paul Tipps (Citizen
Member)
Other Council Present: Tim Scott, Dr. David Varner, Karen White, John Voorde,
Jo M. Broden
Others Present: Kareemah Fowler, Alkeyna Aldridge, Aladean De Rose,
Adriana Rodriguez, Aaron Kobb
Agenda: Bill No. 16 -85 — Declaratory (9) nine -year property tax
abatement for GLC SBDC II, LLC
Bill No. 17 -02 — Declaratory (10) ten -year property tax
abatement for Commerce Center
Bill No. 05 -17- Eddy Street Commons Phase II Bond
Issuance
Committee Chair Gavin Ferlic called the meeting to order at 4:45 p.m. with three (3) items on
the agenda. He welcomed Citizen Members, Paul Tipps and William Smith, to join the Council
and opened the floor to the Department of Community Investment to introduce Bill No. 16 -85.
Bill No. 16 -85 — Declaratory (9) nine -year property tax abatement for GLC SBDC II, LLC
Aaron Kobb, Department of Community Investment, with offices on the 14th floor of the
County -City Building, introduced the project as a $1.7 million investment in a new facility in the
Ameriplex Industrial Park. Throughout the life of the abatement the investment will generate just
above $1 million in tax revenue, and post- abatement tax revenue will be an additional $290,000
annually.
Jeff Smoke, GLC SBDC II, LLC, explained the project is a construction of a distribution facility
that attempts to spur additional investment and construction in distribution centers in the region
that support other businesses that require the support of distribution centers. This is the second
phase of a partnership with the City to support this level of infrastructure.
455 County -City Building • 227 W. Jefferson Boulevard • South Bend, Indiana 46601
Phone 574- 235 -9221 • Fax 574- 235 -9173 • TDD 574 - 235 -5567 • www.SouthBendfN.gov
JENNIFER M. COFFMAN ALKEYNA M. ALDRIDGE JOSEPH R. MOLNAR
CHIEF DEPUTY/ CHIEF OF STAFF DEPUTY/ DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK
Chairperson Ferlic thanked the presenter and petitioner for their presentations and turned the
floor to Council questions.
Committee Member Paul Tipps asked why we were allowing the petitioner to award themselves
forty -one (4 1) points for job retention when this is a speculative project with no current jobs to
retain.
Mr. Kobb responded that he couldn't share much about the details, but that those jobs are a
reflection of additional jobs coming with a business partnership in relationship to this project.
With no further questions from Council, Chairperson Ferlic opened the floor for public hearing.
There were none to speak in favor or remonstrance on Bill No. 16 -85.
Committee Member Oliver Davis motioned to send Bill No. 16 -85 to full Council favorably. The
motion was seconded by Committee Member Regina Williams- Preston and it carried
unanimously.
Bill No. 17 -02 — Declaratory (10) ten -year property tax abatement for Commerce Center
Committee Chairperson Ferlic welcomed a presenter on Bill No. 17 -02.
Aaron Kobb, Department of Community Investment, with offices on the 10 floor of the
County -City Building, introduced the petition as a $35 million investment for a mixed used
building adjacent to the current Commerce Center site. Over the life of the abatement the project
will generate approximately $385,000 in tax revenue. Throughout the post- abatement period, the
project will generate an additional $626,000 in annual tax revenue.
Velvet Canada, designer with Matthews, LLC. at 401 E. Colfax St., discussed the changes to the
project particularly as it relates to the height reduction to one - hundred and twenty -seven (127)
feet. She also added that the project would bring approximately eighty -four (84) jobs to the
downtown.
Chairperson Ferlic thanked the presenter and petitioner and turned the floor to public hearing.
Rolanda Hughes, 1025 Riverside Dr. asked a question related to the general tax abatement
strategy and how it works.
Mr. Kobb addressed Ms. Hughes' question by stating the abatement is a financial incentive to
businesses.
Brian Pawlowski, Interim Director of the Department of Community Investment, with offices on
the 14th floor of the County -City Building, echoed that the abatement is a tool to spur and
support job growth within the City.
Committee Member Paul Tipps expressed staunch opposition to the petition citing that the City's
unprecedented financial support of the Commerce Center proposal is not a sound economic
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decision since the City will not realize a return on investment (ROI) for over eleven (11) years.
Even then, the upfront investment of taxpayer money compared to private dollars is a skewed
ratio. Committee Member Tipps submitted his typed comments to the Office of the City Clerk
for the record.
With no further comments on Bill No. 17 -02, Chairperson Ferlic entertained a motion from the
committee. Committee Member William Smith motioned to send Bill No. 17 -02 to full Council
favorably. Committee Member Oliver Davis seconded the motioned which carried by a vote of
three (3) ayes to two (2) nays (Committee Members Regina Williams- Preston and Paul Tipps).
Bill No. 05 -17- Eddy Street Commons Phase II Bond Issuance
Brian Pawlowski, Interim Director of the Department of Community Investment, with offices on
the 14th floor of the County -City Building, introduced Bill No. 05 -17 as the second phase of the
Eddy Street Commons project. He mentioned a typo in the presentation citing that this phase will
represent four hundred and thirty -one (43 1) new units not four hundred and one (401). The bond
issuance will cover infrastructure and construction costs related to the project. Mr. Pawlowski
highlighted that this project will pay for itself through TIF revenues.
Matt Gavit, Indianapolis, IN with Kite Realty Group discussed the design portion of the project.
The aim of the project is to increase density in the area, all parking will be underground and
surface parking is included in the scope. Kite Realty is bringing work -live spaces to the second
phase that will serve as residences year -round and there are several affordable housing lots
provided in collaboration with the NNRO.
Committee Member Davis shared that he appreciates the community selling points such as
additions in affordable housing and flex spaces.
Committee Member Williams- Preston mentioned there's some talk about which grocery store
will be brought in —names like Kroger have been mentioned.
Mr. Gavit responded Kite has definitely been in conversation with Kroger among others, but
would prefer a smaller specialty grocer that fits the scale of the development.
Committee Member Tipps asked where the hotel is located since it's not shown on the site plan,
and whether or not this project is tax exempt since the land is owned by Notre Dame.
Mr. Gavit responded that the hotel is north on Angela which is just outside of the site plan. He
went on to say the only tax exempt use on the site is the Robinson Community Learning Center
which will remain exempt as a non - profit; all others are tax generating entities.
With no further questions from Council, Chairperson Ferlic opened the floor for public hearing.
There were none to speak in favor or remonstrance on Bill No. 05 -17.
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Committee Member Davis made a motion to send Bill No. 05-17 to the full Council for public
hearing and final vote on January 23rd. The motion was seconded by Chairperson Ferlic and
passed unanimously.
With no further business before the Committee, Committee Chair Gavin Ferlic adjourned the
meeting at 5:12 p.m.
Respectfully Submitted,
Gavin Ferlic, Chairperson
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