Loading...
HomeMy WebLinkAbout07-09-18 Community Investment SpUTH 8 U r� w a \PEACE -; 186 OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CCITY CLERK COMMUNITY INVESTMENT JULY 9, 2018 3:30 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, Jake Teshka, Karen White Other Council Absent: None Others Present: Kareemah Fowler, Bianca Tirado, Graham Sparks, Bob Palmer, Casey Colvin, Gabriel Murei, David Boling, Elivet Navarro Presenters: Dan Buckenmeyer, Anne Mannix Agenda: Bill No. 18-29-Designating Residential Real Property Tax Abatement: Historic Lincoln Way West Homes, L.P. Bill No. 18-30- Designating Multifamily Real Property Tax Abatement: Historic Lincoln Way West Homes, L.P. Committee Chair Gavin Ferlic called to order the Community Investment Committee meeting at 3:30 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. Committeemember Regina Williams-Preston made a motion to, for purposes of public hearing, hear Bill No. 18-29 and Bill No. 18-30 together. Committee Chair Ferlic seconded this motion which carried by a voice vote of two (2) ayes. Bill No. 18-29-Designating Residential Real Property Tax Abatement: Historic Lincoln Way West Homes, L.P. Bill No. 18-30- Designating Multifamily Real Property Tax Abatement: Historic Lincoln Way West Homes, L.P. Dan Buckenmeyer,Director of Business Development with offices on the 14''floor of the County- City Building, stated, As I'm sure you are all aware, the Department of Community Investment (DCI) regularly supports tax credit applications for local and national developers to bring affordable housing through the Indiana Housing Community Development Authority. This last . INTEGRITY1 SERVICES ACCESSIBILITY JENNIFER M.COFFMAN BLANCA L.TmADo JosEPH R MOLNAR CHIEF DEPUTY/Dm aroR OF OPERATIONS DEPuTY/DrRFCrOR 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 round of applications had three (3) developers that proposed projects. One (1) of them was the Fat Daddy's Project, for example. All three (3) of those were denied but the highest scoring one (1) was for Historic Lincoln Way West Homes. DCI has worked with them to fine tune the project to reapply for the current round of tax credits. It is important to note that the tax abatement we are proposing is contingent upon the tax credit being won at the State level. It is an exciting project for the West Side. It is on and surrounds Lincoln Way West. Specifically,the former Brewery that is now Classic Beauty at 1636 Lincoln Way West will be redone. You might recognize that (referencing a presentation which is available in the City Clerk's Office). The project cost is slated to be about $7 million total. The output of the project will be twenty-two (22) apartments and we are asking for a real property tax abatement for ten (10) years and it will be phased in. The estimated total taxes possible over that ten (10) year period would be about $665,000. The taxes abated would be about$538,000 and the remaining$127,000 would be paid over that ten(10)year period. Mr. Buckenmeyer continued, Then part two (2) of this abatement is a residential tax abatement and that asks for a designation of a residentially distressed area.It is actually fourteen(14)different lots. It is about a$3.8 million project.It is a request for a five(5)year one hundred percent(100%) tax abatement. The estimated total taxes possible over that five (5) year period would be about $105,000. We are asking to abate about $67,000 with the remaining $38,000 to be paid over that five (5) year period. Both projects have three (3) years to start and be completed. They are also being supported with $1 million of TIF funds. Committee Chair Ferlic asked, Is the development contingent on the tax credits being granted for both projects or is that only for the larger project? Ann Mannix, 724 W. Washington Street, replied, We are getting Historic Tax Credits on this building and then low-income housing tax credits on both buildings. Those are due July Oth. If we leverage additional funds then we have a higher priority. This (referencing the presentation) is the before picture. It has a design of a castle so when it's done we hope to accentuate those with big lights. This is the rendering of what it will look like after it is done and it is consistent with the historic appearance of the building. We will be ripping the whole addition off so it can go back to how it used to look. It is a nice building and it has a lot of different levels. There will be a couple lofts. We hope some young people will think they are cool. There will be fourteen (14) Single- Family homes. They will be on lots where houses were torn down through the blight elimination program. They will be on the streets between Lincoln Way West, Elwood, Olive and Allen. It will be $7.09 million to rehab the old Brewery. It needs a whole lot of work and tech pointing, a new roof and everything else. The houses are $3.8 million. Ms. Mannix continued, We have several funding sources including low-income housing tax credits,a grant from the Federal Home Loan Bank,TIF funds,and Historic Credits. We got a small grant from 1St Source Bank and are putting some of our developer fee back into it as well. The target market is low and moderate income individuals and familes. The tax credit program has changed and we can go up to eighty percent(80%) of area median income so it is not as restrictive as it used to be.It will be one hundred percent(100%)affordable as the rents will be between$225 and $675 per month. We are going to provide housing for seven (7) homeless individuals or families and twelve (12) intellectually or developmentally disabled persons. That will give us EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.91731 TTD 574.235.5567 l www.southbendi n.gov 2 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK higher priority in the scoring. We are working with the Logan Center and Oaklawn and will probably also work with the Center for the Homeless. There will be four(4) families in the houses and three(3)homeless individuals living in the Brewery. That gives us higher priority.Also if you are going to spend a lot of public money, you might as well house the most vulnerable people. In regards to things we are doing to improve the project, I talked about having lights on the Brewery. They will kind of be like the lights by the river but they will be small and less expensive. As part of the Mutual Homes Cooperative, that project has been very successful and the Co-op is very active. South Bend Heritage will do the property management and this is an outgrowth of the West Side Main Streets Plan. Committee Chair Ferlic asked, So to clarify, if you do not receive the Historic but you receive the low-income tax credits, will you proceed with the homes portion? Ms. Mannix replied, Well we will get the Historic ones. All you have to do is have it be a historic structure and it is. So that is guaranteed. However if we don't get the low-income tax credits, we will just reapply. That application is for both. You get more points if you do new construction and historic buildings. Mr. Buckenmeyer stated, The reason it is two (2) on our side is because it is a real property tax abatement on the brewery side but a residential tax abatement for the other side. Committee Chair Ferlic then opened the floor to Committee and Council Members. Councilmember Karen White asked, What size apartments will there be? Ms. Mannix replied, Efficiency, one (1) and two (2) bedroom. The efficiency would start at $225 and go up to $525, the one (1) bedrooms would start at $435 and go up to $550, and the two (2) bedrooms would start at $515 and would go up to $650. Councilmember Tim Scott stated, Two (2) weeks ago we were heading out of town and my wife said to me, literally, hey it would be great if someone did something with that building. I like the look of it. I don't have so much concern on this apartment building. This is definitely what we are talking about with the revitalization of Lincoln Way. It has come up many times in other subject matters. The homes will be owner-occupied, correct? Ms. Mannix replied, They will be part of the co-op. Councilmember Scott followed, Alright. I was worried about the value and depreciation of those homes. Ms. Mannix interjected, We will have to work with the neighborhood. We tried to select lots that had good neighbors but it is block by block and we are going to have to work on that. Councilmember Scott stated, And I will talk more about it later but one (1) of those streets is on my list for improvement. The architectural look of the housing,will it fit within the neighborhood? Ms. Mannix replied, Yes but I want to get some renderings and work with the architect a little bit to make sure it fits.None of them will be modern looking at all. The size and arrangement will be similar to the surrounding homes. 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 1TTD574.235.55671www.southbendin.gov 3 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor of, or in opposition to,the legislation. Sue Kesim, 4022 Kennedy Drive, stated, Today my question is not my own. Someone texted me a question so I'm going to relay it. Historically, Lincoln Way West homes appears to have a cost three (3)times as much as it would be to build a small home on the West Side, and also more than it will eventually be appraised for. Are there manufacturing or constructing methods available that are less expensive than stick build on site that will result in the same size and quality of dwelling? If so, what is there to implement using them? Zoning, building codes, etcetera?Not my question, I am just relaying.And I think they look really nice and it is nice to see some progress on the West Side. Committee Chair Ferlic closed the floor to members of the public and offered the floor to the presenter for response. Ms. Mannix stated, We could use modular housing but our Design Team didn't feel the cost savings would be that great. It's just expensive and there are not a lot of contractors available at this point and the available ones are very busy. That is just what new homes cost. Committee Chair Ferlic turned the floor back to the Committee and Council Members. Councilmember John Voorde stated, We should get a report from South Bend Heritage on everything they are doing. It seems they manage an awful lot of properties. Committeemember Williams-Preston stated, This is a project we have been talking about for a couple of years. I am really excited about how this is going because as everyone has said, that building needs a lot of work and a lot of help.This is a great way to do it. It is a really cool building. It might end up being the jewel of the corridor but it is also an anchor for continued development. When people start seeing this come to life, it will be something that draws more people. I'm also excited about this building to be a space to hit some of our targets like identifying homeless people and helping people who are developmentally challenged. Really, as a City, this is a great opportunity to keep people in the neighborhood. The infill hits our targets. Anne was very intentional about hiring minority contractors to work on this project. That is one (1)thing I would like on the record. The developer is doing a lot to support the things we want to see happen as the City of South Bend. Councilmember Scott stated, I know the developer built a home in the first (I1� district that was a home for special needs folks and that was ADA accessible. Are there any plans for that, here? Ms. Mannix replied, Yes. Ten percent(10%) of the units, so there will be five (5) of those. Due to the lack of quorum, both bills were automatically sent to the Council with no recommendation. With no further business, Committee Chair Ferlic adjourned the Community Investment Committee meeting at 3:46 p.m. Respectfully Submitted, Gavin Ferlic, Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173]TTD574.235.5567I vwvw.southbendin.gov 4