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HomeMy WebLinkAbout02-27-17 Community Investment O�SpUT$8�� U C W PE y ■ 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER,CITY CLERK COMMUNITY INVESTMENT FEBRUARY 27, 2017 3:35 P.M. Committee Members Present: Gavin Ferlic, Regina Williams-Preston, Oliver Davis, Randy Kelly, Will Smith*, Paul Tipps* Committee Members Absent: None *- Denotes citizen member not yet sworn in Other Council Present: John Voorde, Dr. David Varner, Karen White Other Council Absent: Tim Scott, Jo M. Broden Others Present: Adriana Rodriguez, Aladean DeRose, Kareemah Fowler, Graham Sparks, Brian Pawlowski Presenters: Aaron Kobb, Jeff Smoke, Mark Neal Agenda: Bill No. 17-08- Designating Tax Abatement for GLC Portage Prairie III Bill No. 17-09—Designating Tax Abatement for Hibberd LLC Committee Chair Gavin Ferlic called the Community Investment Committee meeting to order at 3:43 p.m. He then gave the floor to Community Investment to discuss Bill No. 17-08. Bill No. 17-08- Designating Tax Abatement for GLC Portage Prairie III Aaron Kobb, Community Investment with offices on the 14th floor of the County-City Building, stated, This abatement is for GLC Portage Prairie III. They are investing approximately $13.5 million toward the construction of a three hundred fifteen thousand(315,000) square foot commercial and light assembly facility north of Adams Road. The rezone was done at the last meeting so you all are probably pretty familiar with the project. Like Brian mentioned at the last meeting, we are looking at different ways that DCI approaches the incentives of these projects. This is in hope to meet both the needs of the developer and the City. We think the petition before you accomplishes that. After the six (6) year abatement is complete,the project will generate approximately $303,000 of annual tax revenue. Those will go straight into the TIF Fund. Last 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.SouthBend[N.gov JENNIFER M.COFFMAN ALKEYNA M.ALDRIDGE JOSEPH MOLNAR CHIEF DEPUTY/DIRECTOR OF DEPUTY/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK OPERATIONS time we were asked to touch on the overall City-investment percentage, and this project would come in right around thirteen percent(13%). Jeff Smoke, 102 W. Jefferson, stated, It will retain approximately four hundred and sixty (460) jobs and will hire an additional one hundred and fifty(150.) Over the course of two (2) years, these jobs will pay anywhere from $50,000 to $80,000 a year. Committee Chair Ferlic opened the floor to questions from committee and council members. There were none. Committee Chair Ferlic then opened the floor to the public for comments in favor of or in opposition to the legislation. Joseph Shabazz, address unavailable, stated, We've seen many tax abatements. When it comes to plans for inclusions for minorities, it shows up blank. If this application passes, what are your plans for that? Paul Tipps, 1930 Ribourde Dr., stated, Is a six (6) year abatement the same as a nine (9) year abatement? If there is a benefit,what is it and who benefits from that? In the petition for incentives, the developer received eighty four (84)points of credit for supporting a municipal facility. Has the developer ever supported the zoo in the past?If not, what do they plan to do throughout the term of this abatement? Jeff Smoke replied, We have donated to the zoo in the past. Last year we donated ten thousand dollars ($10,000)to the MLK statue right in front of our building. We are committed to the community and the zoo. CTDI will be the tenant so they do the hiring practices. We don't have exact numbers but we can get those to you if you would like. Councilmember Karen White asked, Can we get an actual breakdown of diversity hiring and the pay scale? Mr. Smoke replied, We will most certainly try to get that to you. Brian Pawlowski, Community Investment with offices on the 14th floor of the County-City Building, stated, In this case the company is just announcing the job numbers. From the pool,the hiring of jobs will go through the diversity standards. The six (6) year one hundred percent (100%) and the nine (9) year graduated tax abatements are not the same. The difference is the expenditure of TIF that we do not make. Those funds not spent will be able to be spent on other things. Committeemember Will Smith stated, It states on the SB 1 form that salaries paid to any individual employee are confidential. Councilmember White stated, As we expand to businesses and developers, I think it is important to stick to our diversity and inclusivity plan. I'm not saying this is not already part of the discussion because I hope it would be. 2 I Mr. Pawlowski replied, It most definitely is part of the discussion. When TIF is expended,part of the deal is it goes through the Board of Public Works and there are requirements for diversity through that process. Committeemember Randy Kelly motioned to recommed Bill No. 17-08 favorably to the full Council. This motion was seconded by Committeemember Oliver Davis and carried with a voice vote of four(4) ayes and one (1) nay (Committeemember Regina Williams-Preston.) Committee Chair Ferlic then gave the floor to Community Investment to discuss Bill No. 17-09. Bill No. 17-09—Designating Tax Abatement for Hibberd LLC Mr. Kobb stated, This project invests just over $5 million toward the rehabilitation of a currently abandoned building just south of here, adjacent to Four Winds Field. This will bring a mix of office,retail, and residential into the building. This is a little bit different than the standard. After the five (5) year abatement is complete, this will generate annual taxes of roughly$94,000. Where that revenue stream will go depends on the final design of the project. The residential does not go into TIF, it goes into the general fund like the other taxing units do. As the project evolves, it will change where those revenues go in the future. The City investment is roughly nine percent(9%). Mark Neal, Hibberd LLC, stated, This is a repurpose of a 1926 Industrial Building. As you can see, it is right on Main Street and across from the parking lot of the library, and just south of the AT&T building. The other property is one half(1/2) of the pre-owned car lot. Since the prior owners,taxes have gone from $11,000 to $7,000 today. It used to be a warehouse and retail space. We purchased the building in September of last year. We will be gutting everything and it will be a shell when it's done. This is a very well built building, built in 1926 with cement and steel. It was originally set up for retail on the bottom floor with office space on the second and third floor, and all the printing production facilities were in the back of the building. As part of that design,there is about a three foot grade coming from the front to the back of the building. As we envision it,phase one (1)will be redesigning it into a Mixed-Use space with a public plaza in the front. This will really connect with what is already going on downtown. Committee Chair Ferlic opened the floor to the Committee for questions for the presenter and there were none. Committee Chair Ferlic then opened the floor to the public for those wishing to speak in favor or in opposition to the legislation. Frank Perri, 234 S. Coquillard Dr., stated, I lived at that building when it first went on the market. It was a tough deal and I applaud you. Seeing these drawings of what you're going to do makes me excited to see it actually happen. Mr Tipps stated, I'm also in favor and I think you will be doing a great service to the downtown. Similar question to the first petitioner however, Hibberd takes eighty four(84)points credit on their application for incentives of supporting a municipal facility. What are your plans and who or what will you support? 3 Mr. Shabazz stated, With all these plans, were is the inclusivity? If we could just see your plans we would be very grateful. With no other members of the public wishing to speak on the bill, Committee Chair Ferlic gave the floor back to Mr. Neal for a rebuttal. Mr.Neal stated, It is a tough building and we are excited about it. A lot of the new development is exciting and repurposing these beautiful buildings in the downtown increases the vitality. Being a twenty (20) year resident, and the sole member of Hibberd Development,there are a number of ways we support. We've supported the zoo for a long time, we've been active in the parks department,the YMCA, WNIT, Boy Scouts, and we will continue to do that. Having been a former employee of the City and recognizing the importance of diversity, I will do everything I can to address that in this development moving forward. Committeemember Randy Kelly motioned to recommend Bill No. 17-09 favorably to the full Council. This motion was seconded by Committeemember Will Smith and carried unanimously with a voice vote of five (5) ayes. With no other business on the agenda, Committee Chair Ferlic adjourned the Community Investment Committee meeting at 4:03 p.m. Respectfully Submitted, Gavin Ferlic, Chairperson 4