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HomeMy WebLinkAbout05-29-18 Community Investment U b \P�E1ACEa X x OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK COMMUNITY INVESTMENT MAY 29, 2018 4:36 P.M. Committee Members Present: Gavin Ferlic, Regina Williams-Preston Committee Members Absent: Oliver Davis, Sharon L. McBride Other Council Present: Tim Scott, Jo M. Broden, John Voorde, Karen White Other Council Absent: None Others Present: Kareemah Fowler, Bianca Tirado, Graham Sparks, Bob Palmer, Casey Colvin Presenters: James Mueller Agenda: Update-Potential TIF Area Adjustments- James Mueller, Community Investment Committee Chair Gavin Ferlic called to order the Community Investment Committee meeting at 4:36 p.m. He introduced members of the Committee and announced the lack of a quorum, rendering the Committee incapable of taking official action on legislation. He then gave the floor to the presenters. Update- Potential TIF Area Adjustments-James Mueller, Community Investment James Mueller, Executive Director of Community Investment with offices on the 14th floor of the County-City Building,stated,Here(referencing a presentation available in the City Clerk's Office) is the overview of the presentation. We have a bunch of policy goals.The Tax Increment Financing is a major tool. We have Tax Abatement, Tax Increment Financing (TIF), we have an Industrial Revolving Fund but, as you know, TIF is a major part of implementing our neighborhood plans and a lot of other economic development activities we do. We set up a designated area for the increment. An increment of taxation of property tax is generated and that goes back into the Fund that the Redevelopment Commission is then able to allocate to different economic development projects. As we've looked at before, the key to remember is even if the TIF area is expanded, you are still only collecting the increment that is created. So we aren't taking away taxes from somebody, we are only capturing things that are generated. Mr. Mueller continued, We have a few focus areas we are looking at particularly. The first (Is� one (1) is looking at Mishawaka Avenue and Potawatomi Zoo. We are also looking at annexing the Chocolate Factory Expansion site. There is also the central part of the River West TIF and fourth(4th) is the South East and South sides of the City. So the proposals that are being looked at so far includes adding the right of way for Eddy Street,Potawatomi Park and Zoo,the Mishawaka INTEGRITY1 SERVICES ACCESSIBILITY JENNIFER M.COFFMAN BiANCA L.T m4Do JOSEPH R MOLNAR CHIEF DEPUTY1DIILECFOR OF OPERATIONS DEPCTIY/DntECFOR OF POLICY ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Blvd.I South Bend,Indiana 466011 p 574.235.92211 f 574.235.9173 1 www.southbendin.gov ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Avenue Corridor and then down. There is potential there with the My SB Parks & Trails Plan. That is a new piece we have seen come online in the last couple of months. Gold is River East, green is River West, and the light colored things are the things we are contemplating adding. That totals one hundred and nineteen(119) acres. Mr. Mueller went on, For the River West North, the recently annexed property is being looked at to be added to the River West TIF. Number two (2) is the Chocolate Factory annexation. In the upper left corner, we are proposing to remove that piece. To the East of that area is the Portage Prairie and all the development is. We have done a full sewer study analysis and we will not be able to support that with our infrastructure without a major investment. Then the big area below that you see are the Airport Runways. In the bottom right corner is the Airport and Terminal Drive and those will still be included. It is just taking out the broader build out. That totals 1,467 acres. Committeemember Regina Williams-Preston asked, So we are taking that out because, what,they don't pay taxes on the runway stuff? Mr. Mueller replied, It doesn't generate anything so we are just making the map smaller. Mr. Mueller continued, Here is one that gets really interesting. So the first section you see are the commitments we made in 2014 to include the City Cemetery, the Museum Campus and Leeper Park as part of the River West TIF. That is one-a(I a), one-b (I b) and one-c (I c)respectively. We also are looking at the Portage Avenue shops that have come out of the Portage/Elwood visioning section. Then four(4), five(5)and seven(7)are pieces out of the West Side Main Streets Plan that weren't included in the TIF area to resource them. As we are looking to implement the developments coming out of the West Side Main Streets Plan, we are proposing to add those in. There was a Lincoln Park Plan, too, prior to the West Side Main Streets Plan that was also contemplated. There are also pieces eight (8) and nine (9) which are the expansions of the City Cemetery area that is contemplated in the City Cemetery Master Plan. Mr. Mueller went on, I know there had been confusion about some expenditures out of the West Washington TIF for City Cemetery. Those are all in the purple area and none of those TIF dollars from West Washington have gone into the City Cemetery or those proposed areas. Those monies still stayed within the West Washington TIF and,as you see,the City Cemetery Master Plan moves beyond just the City Cemetery. Councilmember John Voorde stated, I've sent an email asking about a little parcel that has a body shop, a gas station and vacant lot. Right on the corner of Portage and Angela. Why wouldn't that be part of that economic development area? Mr. Mueller replied, This is early on in the process. There is plenty of time to talk about additions and substractions. Committeemember Williams-Preston asked,Why did you not decide to expand the TIF on Linden. Mr. Mueller replied, We have not discussed that and, again,this is early on in the process. Mr. Mueller continued, Then the other pieces, six (6), eleven (11), ten (10) and twelve (12) are kind of advancing the My SB Parks & Trails. So you will see LaSalle Park, Pulaski Park, the one EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD574.235.5567 www.southbendin.gov 2 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK (1)part of the river front trail in six (6)that is not in a TIF area right now, and ten(10) is the Coal Line trail. So that is the thinking here. Councilmember Karen White stated, So when you look at LaSalle Park,Pulaski Park and the Coal Line,those particular initiatives are not a part of the Park Bond. Is that what you are saying? Mr. Mueller replied, Part of them are. For an example, for the Charles Black Center, it ended up being about$4.5 million. The 2015 Park Bond covered$3 million and the River West TIF covered $1.5 million. We don't need to expand it because the park services the TIF area so we were still able to use the TIF funds. It is just cleaner to incorporate the parks into the TIF areas. Councilmember White followed up, And the West Washington TIF, the monies in that particular TIF,what are the plans for those?And have you engaged the various neighbors and neighborhood association to talk about what happens with the historical parts and the crossing over? Mr.Mueller replied,We had a good dialogue at the budget input meeting last week.We are looking at different ways of connecting downtown all the way into the West Washington District. On the docket, so far, is money for the street conversion just south of the Cemetery. We want to convert it from one (1) way to two (2) way. There is also in the works, nothing confirmed or done yet, but assistance with getting the Washington Colfax Apartments. Mr. Mueller went on, In addition to adding Mishawaka Avenue to the River East TIF, we are also looking at the Miami Street Corridor to the River West TIF which is about thirty-six (36) acres. We also have some potential options where we swap some area with the South Side TIF. Option one (1) would be moving the South Side TIF into the southern part of the Miami Street corridor. This would allow for the South Side TIF to fund some of the South East Master Plan which would include the Calvert Boulevard. It would also help with the Miami Hills Apartments.And then there is also the plan to expand the South Side TIF to cover the entire South East Master Plan area. One (1) of the benefits of this is even though the River West TIF is the largest TIF and it generates the most, it is also strained by a lot of debt service and other things. Whereas the South Side TIF, we are doing as many proactive things there and there is a significant funding stream that if we are able to utilize the South Side for it to help implement the South East Master Plan, that would unlock the River East for future plans. Mr. Mueller continued, In summary, we are looking to complete the 2014 River West commitments. There is a declaratory resolution from the REC. Our thought has been doing as much as we can all together just to save on different pieces but, if there is a desire to do the 2014 commitments clean, we can do that as well. There are also the corridor plans,the implementation of the active plans,the development on the City's edge, and the potential net reduction of total TIF area. Committee Chair Ferlic opened the floor to members of the public for comment. Jim Bognar, 807 W. Washington Street, stated, In a recent South Bend Tribute article about Dr. David Varner,the following questions were posed to him and he gave interesting answers. You've complained repeatedly over the years, the City has placed too much property in the Tax Incremental Financing Districts, keeping new property tax revenue from much needed parts of City Government such as neighborhoods, streets,curbs and sidewalks,and funding Police and Fire EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 M574.235.5567 www.southbendin.gov 3 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Departments. Is that something you regret not being able to change and Dr. Varner answered, "Somebody should really look at the economic conditions of the TIF Districts because it is extraordinary. Either make the TIF Districts smaller or use the TIF District money, where there is excess, more liberally. If all the money is just going to stay in the TIF District, I think it is unfair to the City. It is not that there is too much money there, it is that the City has been too protective of it when there is excess.Mayor Steve,the former mayor, and I'm sure Mayor Pete,weren't going to use TIF money for Fire Stations or Combined Sewer Overflows. That wasn't part of their plan. I think we made some progress there." Mr. Bognar went on, There are couple things about West Washington that I want to talk about. It is now the oldest and the only original TIF District in the State of Indiana. It was the first TIF District, founded in 1979, and fought in the courts until 1985. It was established before July St, 1990 so I would like this Council to know it is a legacy TIF District that has a termination date of June 30th, 2025. This gives us a seven (7) year life span left on this district. It includes three (3) Council districts in the first (1St), second (2nd) and sixth (6th) as well as our At-Large folks. It was scheduled to be eliminated in the 2014 reorganization plan. Mr. Bognar continued, Beginning in 2015, under a previous Administration, tax revenues were to be used for street lighting, sidewalks and curbs, outside grants and private investment. This was all based on a 2014 Indiana University Public Policy Paper A Brief Look at TIF Districts in Indiana where it said eighty percent(80%) of all TIFs were used for infrastructure improvements. I would also like you to know, since the TIF reorganization in 2014, $1.254 million is floated in the West Washington Street TIF. There have been two (2) unlisted amounts of sixty-three (63) almost $4 million in August and September of 2017 and $77,500 between January and February of 2018. Mr. Bognar went on, Council did pass a resolution last year asking for biannual TIF District updates. Quoting from the resolution, "It is believed that biannual updates being made on all these plans,though similar as they are developed,would be beneficial. It is recommended that the timing of such updates be incorporated into and advanced with preparation and the approval process of the annual City budget." If not now, when? We do have a disagreement. I do believe the three (3) parcels have had a resolution that has passed Council. I believe that it fulfills the 2014 commitment to have Leeper Park,the City Cemetery and the Museums put in separately. If we are not going to honor our resolutions then why do we have them?This may seem as though we are at opposition. Mr. Mueller and I have spoken at times and I am obviously passionate about my district. Mr. Bognar continued, I will say one (1) other thing. Over fifty percent(50%) of the residents in the West Washington Street TIF are below the poverty line. Again, we've had this since 1985. Somebody has said that the 1200 block of West Washington and the three hundred (300) block of Chapin has changed. That was thirty (30) years ago. We've had no curbs and sidewalks. The Washington Colfax apartments never should have gotten to where they are. This is not being done to be in front of the media or anyone else,but I think there is a wall.I've said this at William Street. And there are people that say, and even in Community Investment's own paperwork, rampant blight. When the City uses the term rampant blight it is hurtful to us and our neighborhood. Mr. Bognar went on, What we want is concrete evidence of what we are going to do with this money. And to Council, the smallest and simplest TIF District is us and it is simple to look at where the money is going. I can't tell you, when you look at the other ones, how confusing it is. I EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227W Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 i f574.235.9173 j TTD 574.235.5567 i www.southbendin.gov 4 CITY OF SOUTH BEND I OFFICE OF THE CLERK think before a budget is ever approved, all this TIF and what it means is critical. The reason why the three (3)were done and why they were separate was to make a deal to pass the reorganization. I think it is incumbent upon Council to fulfill that resolution. Thank you very much. Sue Kesim, 4022 Kennedy Drive, stated, I'm really disappointed. Obviously, I'm on the South Side and you're going to, once again, take money from the South Side and shove it somewhere else. We need things on the South Side and we haven't seen anything. I think that is unfair to do that. I don't like it. I am on the South Side. I want that money to stay there and I want it to help develop my part of town. With no further business, Committee Chair Ferlic adjourned the Community Investment Committee meeting at 4:56 p.m. Respectfully Submitted, Gavin Ferlic, Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 i TM574.235.5567Iwww.southbendin.gov 5