HomeMy WebLinkAbout03-25-10 Community & Economic Development Committee---~~~' ~
.r<~ ~~r
~ ~ COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
MARCH 25, 2010
Committee Members Present: Timothy Rouse, Chairperson; Ann Puzzello,
Karen White;
Other Council Members Present: Derek Dieter, David Varner, Oliver Davis,
Tom LaFountain, AI "Buddy" Kirsits, Henry Davis (Late)
Others Present: Mayor Stephen Luecke, Rita Kopala, Jeff Gibney,
Don Inks, Gregg Zientara, Catherine Toppel
Chairperson Rouse called the meeting to order at 6:00 p.m. to discuss the following agenda
items:
Agenda
Summary of TIF Areas
Councilmember Tim Rouse, Chairperson, Community & Economic Development Committee
began his scheduled special meeting by providing an agenda (attached) outlining what was to be
accomplished. The two main items were: 1. A philosophical discussion of the goals and
objectives of the City of South Bend related to job training. 2. Discussion of Common Council
priorities for potential Tax Increment Financing (TIF) projects for calendar year 2010.
Holding to the agenda, with all Councilmember's save Henry Davis in attendance, Chairperson
Rouse thanked those attending briefly mentioning Bill No. 10-12 which designated South Bend as
a "Recovery Zone" allowing the development tool "recovery bonds" to be added to the city's
economic development arsenal. Mr. Rouse also referenced the recent funding discussion at a
Redevelopment Commission meeting concerning "Project Impact." This is a Hardie Blake
conceived program for ex-offenders geared to assisting them in acquiring the social acclimation
and job training necessary to become productive members of the community. Chairperson
Rouse ten introduced Jeff Gibney, Director of Community & Economic Development to describe
the city's history with job training. Jeff said the city does not have a long history of involvement
with job training. Most job training are either federally funded such as those that go back to the
"Model Cities" programs of the 1960's as a part of the "Great Society" programs or even before
that the post-WWII Veterans GI bill benefits. State programs have tended to provide tax breaks
for business' that locate in Urban Enterprise Zones providing training and employment for UEZ
residents.
Nonetheless, Jeff recalled meeting with Hardie Blake back in 2009 about funding for his "SCARS"
program. This idea now morphed into "Project Impact" still run by Hardie Blake is typical of local
initiatives tenuously funded especially on along-term basis. Jeff went on to say that the city is
now looking for ways to fund job training from the pool of TIF money available to the city.
Typically, TIF funds have been spent on eligible bricks and mortar projects, seldom soft-cost
loaded programs like job training. However, Jeff sees two ways TlF money could be used for job
training. One way would be to provide money for employers to train hirees. The troub{e here is
that Hardie Blake's people do not have jobs. The other way would be in UEA areas for job
training paid directly to programs like Project Impact. "Work One" has been the recipient of the
former example. Project Impact now that Jeff has committed to support them to the tune of
$350,000 the latter. Jeff commits this money to PI with at least three provisions: First, the
development of outcome measures. Second, to reduce the percent of dollars going to
administrative salaries. Usually 10% of total funding, P.I.'s significantly exceeds this proportion.
Third, is the pledge form both the city and Hardie Blake to seek other sources of funding. The
key for future funding consideration will be measures developed to gauge the programs
effectiveness.
At this point Tim Rouse spoke to the need for programs like Project Impact if ex-offenders are to
have a fighting change of turning over a new leaf. Rouse cited unemployment levels at 11.9°/a for
these folks with over 400 offenders released to society each year in St. Joseph County resulting
in over 280 referrals to Project Impact already. He echoed the need to provide more structure
and outcome measures.- Public funds require public accountability.
Mayor Luecke stated that though the need for job training and re-entry assistance is real, he
questions the city's role given it's budget crisis.
In response to Tim Rouse's questions about establishing measures, echoed by Derek Dieter who
also spoke to the transparency of dollars pledged to P.I. type programs, Jeff Gibney said his
department was committed to working with P.I. and Hardie Blake. To that end, he instructed
Chris Dressel a planner in his department to spend up to 28 hours a week helping P.I. Not to spy
on them but to help them develop measures of effectiveness and structure.
Councilmember Varner asked Jeff how long a commitment the city has made to Project Impact.
The answer was one year beyond which the progress of P.I. would be re-considered.
Councilmember Varner also warned that other agencies may want TIF dollars to address social
concerns and would demand equal consideration.
Councilmember Rouse cautioned that funding for P.I. might open a Pandora's Box of funding
requests. Jeff said the city has a social responsibility to faster job training and could not foresee
a time when such agencies would be totally weaned from public dollars.
The second main topic of discussion was to list and evaluate the priority of projects potentially
funded by TIF dollars suggested by the Council.
Don Inks then provided for Council review a bound summary of 2010 TIF areas. This all-
comprehensive document serves as a balance sheet and income statement for each TIF area.
He also referenced a 5-year proposed work plan annually reviewed by the Redevelopment
Commission. In terms of money available Inks said there was up to $40 million carry over from
earlier years and up to $23 million that will be generated in 2010. He said the Commission would
welcome Council input.
Councilmember White said the Council needs to know how projects are prioritized and advanced.
The Mayor said the most successful economic development projects are those that partner with
the private sector. In these cases public dollars can be an effective vital catalyst to development.
Councilmember White also brought up the need to review the city's pledge to develop LaSalle
Square. When and how was this commitment to be honored? She also said the animal shelter
needs more discussion with the neighbors to its new proposed location.
Councilmember Kirsits said programs need to be considered and prioritized based upon getting
the biggest bang for the buck in return.
Approaching his desire to limit this meeting to one hour Chairperson Rouse adjourned the
meeting at 7:00 p.m.
Respectfully Submitted,
c
Timothy Rouse, ~C irperson
Community an conomic Development Committee