HomeMy WebLinkAbout08-25-06 Redevelopment Commission Minutes MinutesSOUTH BEND REDEVELOPMENT COMMISSION
RESCHEDULED REGULAR MEETING
August 25, 2006
10:00 a.m. 227 West Jefferson Boulevard
Presiding: Karl G. King, Vice President South Bend, Indiana
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
Mr. Karl King, Vice President
Mr. Hardie B lake, Jr.
Mr. William Hojnacki
Ms. Marcia Jones, President
Mr. Greg Downes, Secretary
Ms. Cheryl Greene, Esq.
Mr. Shawn Peterson, Esq.
Redevelopment Staff: Mr. Don Inks, Director
Mrs. Cheryl Phipps, Recording Secretary
Mr. Bill Schalliol, Economic Development Specialist
Mr. Timothy Williams, Economic Development Specialist
Mr. Andrew Laurent, Economic Development Specialist
Ms. Jennifer Laurent, Economic Development Specialist
Mr. Nicholas Witwer, Economic Development Specialist
Ms. Sharon Kendall, Executive Director
Others Present: Mr. George Adler, Community Development
Ms. Pam Paluszewski, Legal Dept.
Ms. Jamie Loo, South Bend Tribune
Mr. Marty Wolfson
Ms. Linda Wolfson
Mr. Bernie Feeney, Ullery Development
Mr. Jason Durr, Dept. of Engineering
Ms. Rita Kopala
Ms. Glenda Rae Hernandez
Mr. John Phair
Mr. Paul Phair
Mr. William Egan
Mr. David Smith
Ms. Penny Hughes
Mr. Greg Jones, Indiana Plan
Mr. Robert Humbarger
Ms. Linda Hopkins
Ms. Diana Hess, IUSB
Ms. Phyllis Steele
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
1 ROLL CALL (CONY)...
Others Present continued... Mr. Robert Jagger, Old Fort Building Supply
Mr. Ed Fain
Mr. Brent Kuhn
Mr. Jerry Niezgodski
Mr. King noted a Revised Agenda for the August 25,
2006 meeting. The Revised Agenda differs from the
original Agenda by the addition of Items 6.C.(6), 6.C.(7)
and the change of Neat Meeting Date to September 15,
2006.
Mr. Hojnacki made a motion that the Revised Agenda
be accepted and approved. Mr. Blake seconded the
motion and the Commission approved the Revised
Agenda dated August 25, 2006.
2. APPROVAL OF MINUTES
There were no Minutes for approval.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE REVISED
AGENDA DATED AUGUST 25, 206
Redevelopment Commission Claims submitted August 25, 2006 for approval.
305 SBCDA 2003 BOND
Weaver Boos Consultants LLC $ 110.00
Kaser-Spraker Construction 174,789.31
Walker Parking Consultants 5,301.43
Barnes & Thornburg LLP 1,686.50
324 AIRPORT AEDA
Michael C Machlan, P.E. 290.00
Wightman Petrie Inc. 600.00
Ken Herceg & Assoc. 3,203.00
South Bend Tribune 91.94
Tri County News 122.43
SBD Reprographics 226.58
Boswell Golf Design, Inc. 5,700.00
Abonmarche Consultants of Indiana, LLC 2,246.50
CFH Landscape Service 1,080.00
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
3. APPROVAL OF CLAIMS (CONT.)
414 SAMPLE EWING GENERAL
CFH Landscape Service 5,598.24
420 FUND TIF DISTRICT-SBCDA GENERAL
Indiana Michigan Power 269.22
Downtown South Bend Inc 8,007.50
ComSpect Services Inc. 661.16
South Bend ~Uater Works 163.77
CB Richard Ellis 645.60
Schindler Elevator Corp 1,495.40
Michiana Lock & Key, Inc. 146.50
AEP 156.00
NIPSCO 14.70
CFH Landscape Services 680.00
424 TIF SBCDA Building Operations
Ampco System Parking 25,370.86
CB Richard Ellis 150.00
$ 238,806.64
Upon a motion by Mr. Hojnacki, seconded by Mr. Blake
and unanimously carried, the Commission approved the
Claims submitted August 25, 2006, and ordered checks
to be released.
4. COMMUNICATIONS
Mr. Inks indicated there were five Communications
received related to the Public Hearing on Resolution
No. 2254. He will read or summarize them during the
Public Hearing.
5. OLD BUSINESS
There was no Old Business.
COMMISSION APPROVED THE CLAIMS
SUBMITTED AUGUST 25, 2006, AND ORDERED
THE CHECKS TO BE RELEASED
COMMUNICATIONS TO BE READ OR
SUMMARIEZED DURING THE PUBLIC HEARING ON
RESOLUTION No. 2254
THERE WAS NO OLD BUSINESS
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS
Mr. Inks asked to move Item 6.C.(6) to the top of New
Business so that the bids received could be evaluated
during the meeting and awarded later in the meeting.
There was no objection and Item 6.C.(6) was so moved.
C. South Bend Central Development Area
(6) Opening of Bids for roof repair in the
South Bend Central Development Area.
(LaSalle Hotel)
Mr. Inks opened three bids which arrived by
the 10:00 a.m. deadline.
Ms. Greene noted that all bids were
submitted on the proper form and were
properly executed.
Lawmasters, Inc. Base $8,500
Alt #1 $3,000
Dudeck Roofing & Base $6,100
Sheet Metal Alt #1 $3,975
KRC Roofing & Base $4,900
Sheet Metal, Inc. Alt #1 $2,960
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission referred the bids to staff for a
recommendation.
A.
Public Hearing
(1) Public Hearing on Resolution No. 2254
expanding the boundaries of the Airport
Economic Development Area, expanding
the allocation area for purposes of tax
increment financing and amending the
Airport Economic Development Area
Development Plan.
COMMISSION REFERRED THE BIDS TO STAFF FOR
A RECOMMENDATION.
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Mr. King acknowledged the large number of
people in attendance for the Public Hearing
on Resolution No. 2254. He noted that the
Redevelopment Commission's public
hearings are conducted according to the same
procedures that apply to public hearings
before the South Bend Common Council as
set forth in South Bend Municipal Code
Section 2-11. The following is a summary of
those procedures.
1. A member of the Redevelopment
Department staff will read each resolution by
title only.
2. A formal presentation on the resolution
will be made, which is not subject to a time
limitation.
3. Commission members may ask
preliminary questions of the presenter
immediately following the close of the
formal presentation on the resolution.
4. Members of the public supporting the
resolution shall have the opportunity to
address the Commission
a. Each member of the public shall be
required to state his or her name and
residential address, and
b. Each member of the public speaking
in favor of the resolution shall be limited
to 5 minutes for his or her presentation.
5. Members of the public opposing the
resolution shall have the opportunity to
address the Commission.
a. Each member of the public shall be
required to state his or her name and
residential address.
b. Each member of the public speaking
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
in opposition to the resolution shall be
limited to 5 minutes for his or her
presentation.
c. Also, the total time allowed for
members of the public to speak against
the resolution shall not exceed the time
used by members of the public who spoke
in favor of the resolution or shall be
limited to 30 minutes, whichever is
greater.
6. There shall be an automatic 5 minute
rebuttal period for the person or persons who
made the formal presentation on the
resolution, after which the public portion of
the hearing is closed.
7. Following the public portion, the
Commission portion then takes place where
members of the Commission debate, ask
questions and make motions on the
resolution.
Mr. Inks read the title of Resolution
No. 2254, a resolution of the City of South
Bend Redevelopment Commission
expanding the boundaries of the Airport
Economic Development Area, expanding the
allocation area for purposes of tax increment
financing, and amending the Airport
Economic Development Area Development
Plan.
Mr. Inks noted that the Public Hearing file is
complete, containing: (1) a copy of the
Notice of Hearing; (2) a copy of Resolution
No. 2254; (3) an affidavit from the South
Bend Tribune that the Notice of Hearing was
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
published in that newspaper on August 1 1,
2006; (4) an affidavit from the Tri-County
News that the Notice of Hearing was
published in that newspaper on August 1 1,
2006; (5) a statement from Nicholas Witwer
that a copy of the Notice of Hearing was sent
to affected property owners and registered
neighborhood associations on August 1 1,
2006; (6) a statement from Nicholas Witwer
that he sent a copy of the Notice of Hearing
to affected taxing jurisdictions on August 1 1,
2006; (7) as of 10:00 a.m., August 25, 2006
there were 3 written remonstrances
received related to Resolution No. 2254.
Mr. Inks noted that Resolution No. 2254
expands the Airport Economic Development
Area and TIF Allocation Area No. 1 and will
amend the Development Plan by adding one
property to the Acquisition List. The parcel
to be added to the Acquisition List is located
at 23464 Adams Rd. It will be used as right-
ofway for the extension of Dylan Drive.
This will be Expansion Area No. 21 to the
Airport Economic Development Area. The
expansion meets several goals of the Airport
Economic Development Plan, as well as
being consistent with the land use as
indicated in the South Bend and St. Joseph
County Comprehensive Plan.
Ms. Greene noted that under I.C. 36-7-14-
17.5,the Commission must conduct a Public
Hearing when amending a development plan.
Notice of the Hearing must be provided in
accordance with I.C. 5-3-1, which has been
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
done. The Commission is not required to
have evidence or make findings that were
required for the establishment of the original
development area. However, the Commission
is required to make the following findings
before approving the amendment: (1) The
amendment is reasonable and appropriate
when considered in relation to the original
resolution, plan and purposes ofI.C. 36-7-14,
and (2) The resolution or plan, with the
proposed amendment, conforms to the
comprehensive plan for the City of South
Bend. Resolution No. 2254 includes this
language and accordingly, adoption by the
Commission would satisfy the requirements
of the statute. In addition, the Commission is
required to consider any written
remonstrances that are filed during the filing
period specified in the notice. The
Commission's action on a remonstrance is to
overrule or sustain the remonstrance.
Mr. King asked if the five communications
that Mr. Inks referred to are deemed to be
written remonstrances upon which the
Commission must act? Ms. Greene
responded that a remonstrance for
consideration by the Commission is a
communication that (1) is in writing,
(2) complies with the deadline imposed by
the notice, and (3) is in specific opposition to
the resolution that is before the Conunission.
Sometimes the Commission receives
comments from the public that the person
likes or does't like a particular project or an
aspect of a project, but such communication
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
may simply be considered commentary rather
than a remonstrance against something upon
which the Commission must act. A
remonstrance is a flat out objection to the
proposed amendment. I have reviewed these,
and for those that do purport to be a written
remonstrance to the proposed amendment,
after staff makes a report, then Don will
summarize what has been received. If the
remonstrator is not in attendance, Ms. Greene
suggested the entire communication be read
in Tinto the record.
Mr. King asked if the Commission could
hold its Public Hearing first and then return
to act on each remonstrance.
Ms. Greene responded that the law does not
stipulate the order for the public hearing, so
the Commission may proceed in whatever
order it desires provided that the Commission
does not take final action on the proposed
resolution until the Commission has properly
considered all written remonstrances
The Commission decided to postpone
reading and action on the remonstrances until
after the Public Hearing.
In Staff s presentation to the Commission,
Mr. Witwer noted that Phase I, Expansion
Area No. 21 will open up 162 acres for light
industrial and office development. This will
create an expected 830 jobs, a million square
feet of building space, and an estimated
$22,000,000 of private investment. Phase I
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
is expected to built out by 2017. The
expansion of the Airport Economic
Development Area meets eight of the goals
and objectives of the Airport Economic
Development Area Development Plan: (1) to
stimulate the development of currently
vacant land through the creation of
development sites, (2) to stimulate new
private development in the area, (3) to
increase and diversify the city's tax base,
(4) to create a significant number of job
opportunities for the citizens of South Bend,
(5) to provide new space for the expansion of
South Bend business, (6) to improve roadway
access and circulation in the northwest
portion of the city surrounding the Michiana
Regional Airport, (7) to stimulate increased
use and growth of the Michiana Regional
Airport and (8) to increase user traffic for the
Indiana Toll Road, specifically Exit 72. The
expansion also conforms to the St. Joseph
County Comprehensive Plan by providing
clean industrial development in an area
designated for it that is contiguous and
compatible to existing uses in the area. This
expansion of 162 acres equates to 3.28% of
the size of the existing Airport Economic
Development Area, making this a minor
expansion. Staff recommends approval of
Resolution No. 2254.
Mr. King opened the Public Hearing for PUBLIC HEARING ON RESOLUTION N0.2254
anyone wishing to speak in favor of
Resolution No. 2254.
MR. JOHN PHAIR: President of Holladay
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Properties, 227 S. Main Street, South Bend.
Really, you've heard the facts from Nick, but
there was an article in the South Bend
Tribune a few days ago (most of you
probably saw it) regarding the Portage Prairie
TIF written by Professor Marty Wolfson. I
commend him for taking the time to do it, but
I think that I would like to correct a couple of
things that are pertinent today. Professor
writes, "Including Portage Prairie in the
Blackthorn TIF district means that a portion
of the tax revenue being captured by the TIF
would be used to finance infrastructure
projects in Portage Prairie." And he cites the
Development Agreement. Well, the
Development Agreement that has been
signed between the Commission, the City
and our partnership are really quite clear.
There is no commitment for the city to use
TIF funds to finance infrastructure projects in
Portage Prairie. In fact, we tried to convince
the city to do that and they turned us down. I
just want to be sure that it's clear that there
are no TIF proceeds that have been
committed to Portage Prairie.
Professor Wolfson writes further, "Just how
much tax revenue from the Blackthorn TIF
would be used for Portage Prairie? The
answer can be found in a draft development
agreement negotiated between the City of
South Bend and Waggoner Farms
Development, a limited partnership created
by developer Holladay Corporation. In that
agreement, the city pledges to use $2,058,400
of Blackthorn TIF funds for the Portage
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Prairie development. There is no pledge
from the city to use TIF funds for this phase
or any other phase. The number that is cited
here by Professor Wolfson is, indeed, for
both offsite and onsite improvements
scheduled to be built in that area.
Professor Wolfson writes, "The agreement
between Holladay and the city leaves one
wondering how the Commission is supposed
to incorporate public opinion into its
decision-making." Well, we have had over
thirty public hearings or meetings related to
Portage Prairie, and only broke ground this
past week. The process has gone on almost
eighteen months. At least three of those
public hearings, including one or two here,
were focused entirely on the development
agreement, the use of TIF and related issues.
How many meetings are too many, how
many are too few, I don't have an answer to
that. But there certainly was plenty of
opportunity for input.
Professor Wolfson writes, "The tax subsidy
for the developer, if it is successful for nine-
year abatement on all buildings, is estimated
to be $4,530,027." The agreement does say
that the South Bend Redevelopment
Commission will recommend anine-year tax
abatement for buildings in all of Phase I, that
have an estimated benefit of $4,530,000.
This also means that those same buildings,
which do not exist today, would pay
$4,530,000 during this same time period.
This $4,500,000 is an estimate over a million
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
square feet to be built on a site over the next
decade, and, as Nick mentioned, an estimated
$22,000,000 worth of investment. Professor
Wolfson writes, "Will growth in Portage
Prairie come at the expense of commercial
development in other parts of the city?"
Well, my answer is absolutely not. Neither
we, nor Portage Prairie, make the market
place. Where the public works, lives, and
recreates can be influenced by government
regulation, zoning, planning, and
infrastructure, but developers go where the
people of the area want to be. In fact, the
northwest quadrant of the city and the county
now have more new housing permits being
issued there annually than does the
University Park northeast quadrant of our
county, including Granger. Does South
Bend, once again, want to turn its back on the
direction of growth and watch from the
sidelines? I sure hope not, and I think we're
doing this the right way. Professor Wolfson
writes, "Any increase in tax revenue from
higher assessed property values will not
benefit cities generally. The incremental tax
revenue will have to be used for
infrastructure projects within the confines of
the B lackthorn TIF." As I have stated
earlier, the development agreement does not
allow or require any use of TIF proceeds in
Portage Prairie.
Finally, Professor Wolfson writes, "A new
community organization, a community forum
for economic development, has discussed the
Portage Prairie issue and recommends that if
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
the Redevelopment Commission expands the
Blackthorn TIF northward to incorporate
Portage Prairie, then it should also expand it
southward to include .. .
Mr. King interrupted to let Mr. Phair know
his time was up and to ask Mr. Phair to wrap
up his comments.
MR. JOHN PHAIR: Last thing, even though
Portage Prairie is not a beneficiary of the TIF
proceeds, nor were we successful at
convincing the city to set a TIF district in
Portage Prairie, we believe that the use of the
TIF is an important economic tool for South
Bend and all cities. In fact, it is almost the
only tool that cities have available to them
for this type of use. The addition of this
piece of land that currently has less than
$5,000 of taxes being paid from it and the
possibility of generating millions of dollars
annually, is a legitimate opportunity for
South Bend and any city to create the use of
a TIF. We would recommend you proceed.
Ms. Greene noted that she had prepared a
prompt showing first aone-minute warning
and then the five-minute time expiration and
will serve as atime-keeper for members of
the public wishing to speak.
Mr. King asked if anyone else wished to
speak in favor of Resolution No. 2254.
There was no one else who wished to speak
in favor.
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Mr. King asked if anyone wished to speak
against Resolution No. 2254.
MS. GLENDA RAE HERNANDEZ: 702 E.
South Street, which is located in the Monroe
Park area, an area which was redeveloped by
this Commission some twenty years ago. I
am here to say that I am opposed to including
Portage Prairie in the Airport TIF as the plan
now stands. It has always been my
understanding that the mission of this body is
to redevelop areas of the city which are
unable to turn around on their own without
some assistance from public dollars. It does
not appear to me that this is the case with
Portage Prairie. As increased taxes are
collected in this new area of the city, being in
a TIF means that they will then be spent on
infrastructure in the new area, not an area
needing redevelopment. At the last meeting
of the Commission the staff was asked to
bring a report on the feasibility of including
LaSalle Square in this same TIF. That would
be an appropriate way to spend public dollars
to help a declining area be redeveloped. I
would ask that you table this resolution until
such time as you get the report concerning
LaSalle Square; and I would urge you, then,
to carefully consider that if you are willing to
include Portage Prairie on the outskirts of the
city, in the Airport TIF, that you at least
balance that by also including an inner part
of the city in order that it, too, might benefit
from some of the captured tax revenues, so
that it can be redeveloped into an economic
asset to our city. Thank you.
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
DIANA HESS: 1301 Norwich Ct., South
Bend. I am here representing Community
Forum for Economic Development which we
just heard a few things about a few minutes
ago. Our formal statement: we oppose,
again, as it is written, the inclusion of
Portage Prairie into the Airport TIF. It is our
position that if the Commission expands the
TIF district northward to incorporate Portage
Prairie, that it should also expand it
southward to include areas adjacent to the
TIF on the west side of South Bend such as
LaSalle Square. The specific boundary of
the TIF district and the project that the TIF
would undertake should be decided with
significant input by residents and others in
the area. That is our formal statement. In
addition, I'd like to ditto everything that
Glenda Rae said and sum up by saying that
using TIF money for LaSalle Square is one
way to encourage economic development in
other areas of the city. It provides
opportunity to improve living standards for
all residents of older and inner city
neighborhoods. Thank you.
BILL ELAN: 3402 Scarlet Maple Lane,
South Bend. Now, I've been involved in one
way or another with this situation for...when
it first started. I've been working with
people like Dar Wiekamp, John Brademas,
Franklin Shurz, Jr., and so forth, trying to get
money initially to develop this area by the
airport. So, I have a little perspective along
this line. I also have a little problem here in
that I have the same dilemma as I did when
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
the Common Council was working on the
proposal to change the Human Rights
Commission: I'm not sure whether I'm for
or against. It's one of those things---yes, but.
It's easy, I've seen over the years, to go out
and plow up some cornfields without the
problems. And it's much easier, therefore, to
ignore where the big problems are, as I see it.
In the inner city where the movement of
business and industry is moving out. I would
suggest that at least some of the funds
through TIF should be used to help the inner
city as well as development out here at the
Prairie. I think it should be a combination to
aid both areas which over the long term
works for the welfare of the entire
community, rather than just go out and plow
up the cornfields and go into that.
LINDA HOPKINS: I own property at 1134
Canterbury Drive, South Bend, Indiana. I
was a lifelong resident of South Bend. I'm a
panel chair for the City Plan's Community
Building, Public Health and Safety panel, as
well as I volunteer on numerous boards and
organizations that advocate for at-risk
individuals. One of the things that Mr. Phair
said was that the market goes where people
want to be. There are many people in the
LaSalle Square area, the LaSalle Park area,
the Harbor Homes area, the areas on either
side of Lincolnway West and out into the
area that was acquired by the Airport---
people who have been lifelong home owners
who own property, who are there because
they cannot afford to build homes in the
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Portage Prairie, in Granger and in any of the
other affluent areas. So, I am here advocating
on their behalf and I have some
documentation here for some innovative
answers to the situations that are presented to
these individuals. The program I am here
today to advocate for is called Project
Increment. What I would ask is that if in fact,
this TIF area is founded, and if in fact the
claim goes forward, that funds be allocated
towards jobs and toward infrastructure for
these people who cannot move out of that
area, so they have opportunities that are
afforded to whose who are more affluent.
And, I will read just the formal structure of
Project Impact as the given selection to this
area. I would ask for the Redevelopment
Commission's support in a project such as
this. Here is a quote from Shel Sickerstein, it
says, "This bridge will take you half way
there, the last few steps you have to take
yourself." Through the efforts of Project
Impact, South Bend community ties will be
strengthened. Youth are encouraged to
participate in volunteer activities. Life skills,
parenting, and budgeting classes will be
offered, placing the emphasis on tools for
future success in those areas. We will purse
relationships with our area's leading
employers as well as our local school
corporations and area colleges and
universities, technical institutes and training
centers to promote further education and or
opportunities for gainful employment, which
utilizes the internal strengths of our clients.
We will collaborate with successful local
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
community and service organizations and
will invite those organizations to collaborate
in a provision of services to our clients. We
will strive not to duplicate necessary services
but to enhance those already being offered in
our community. We will strive to be an
anchor to the neighborhood and an active
participant in our community. The principles
that will be applied will be that no two
people learn exactly the same. Innovative
teaching methods and hands-on learning will
be provided. Homework is necessary and
clients must be motivated to apply what they
have learned in their daily lives. Clients
deserve and will work hard to achieve
success. We will help parents and guardians
to be involved in the lives of our children so
that each of those children reaches their full
potential. We will encourage them to work
together to learn how to better their situation.
If our community is serious about narrowing
the achievement gap, minority and at-risk
families deserve and are entitled to special
attention and opportunities. What we are
discussing today could provide them with
those opportunities. All participants are
entitled to be valued and respected as
individuals. A small group of individuals can
change the world. Our goal is to provide the
environment and to help provide the
resources to build and strengthen character
development, to create passion and to supply
whatever additional help our clients will need
to allow them to transform their lives and to
finish their bridge to self sufficiency and
success.
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South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
What we would propose is to take a
demographic within a geographic, which you
can choose Beacon Heights, LaSalle Park,
whatever you would like to choose, take
those families, give them a self sufficiency
plan, matriculate them through an eighteen to
twenty four month system, and provide them
with home ownership opportunities back
within the same geographic from which they
started, so as to build a foundation whereas to
strengthen the entire community. Thank you.
Ms. Greene said that we would mark the
documents that Ms. Hopkins gave and that
they would become part of the public record,
today.
MARTY VVOLFSON: 809 Park Avenue,
South Bend. I am pleased to see Mr. Phair
has read so carefully my Michiana Point of
View in the South Bend Tribune. I will try to
address the main point, and that is, with the
improvements to Dylan Drive and the other
infrastructure projects in Portage Prairie, will
not be using TIF funds. There is $2.058
million that are mentioned in this
development agreement and the point we are
discussing today is the incorporation of the
first phase of Portage Prairie into the Airport
Economic Development Area, which we
know is a TIF increment financing district. If
that $2 million for those local public
improvements are not going to be drawn
from TIF funds, I think it is interesting to
know. My impression was otherwise. If
they are not, I would like to know where they
20
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
are coming from and I think it is interesting
to note, Mr. Phair is saying he is not
intending to be using any TIF funds in the
Portage Prairie Project. I think that is
interesting information.
I will try to address some of the other points
that he raised in a statement that I have
prepared. The Redevelopment Commission
at its July 21 meeting approved a
Development Agreement that promised to
support the use of $2.1 million in Blackthorn
TIF revenue, plus $4.5 million in tax
abatements for the Portage Prairie
Development. The Commission is now
considering Resolution No. 2254, which
would bring the first phase of Portage Prairie
into the Airport Economic Development
Area. I am opposed to Resolution No. 2254
because to focus only on Portage Prairie, and
to subsidize it in this way risks aggravating
the problems of older areas of the city.
Portage Prairie could worsen the problem of
disinvestment in poorer areas of the city as
businesses in these areas suffer from the pull
of new growth on the fringe. It would be
difficult for residents of the inner city
without automobiles to benefit from jobs at
Portage Prairie because of the distance and
the lack of public transportation. Ithink it's
important to note, this is not a position
against growth. This is a position that tries to
take into account the perhaps unintended
consequences of growth in the fringe area of
the city and the possibilities of economic
development in older, core areas of the city. I
21
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
believe that economic development should be
a process that improves living standards and
opportunities for all area residents. So I agree
with the position of the community forum for
economic development as stated by Diana
Hess. If the Commission expands the TIF
District northward to incorporate Portage
Prairie then it should also expand to include
areas adjacent to the west side of South
Bend, such as LaSalle Square. What does
that mean for what the Redevelopment
Commission should do at this meeting?
Obviously, Portage Prairie is a developed
plan whereas ideas for economic
development projects and the potential
expansion of the TIF District on the west side
have yet to be fully formulated. There needs
to be a period of time to develop a plan. If
the Commission approves Resolution No.
2254, it should at the same time, that is
today, formally approve a concept of
expanding the TIF southward to the general
area of LaSalle Square, with a concrete plan
to be developed in a specific period of time.
If the Commission is unable to make such a
commitment it should table Resolution
No. 2254 until such time as it has a fully
formulated plan for the LaSalle Square area.
The formulation of any plan for LaSalle
Square area and the drawing of any expanded
boundaries southward for the Blackthorn TIF
District. There should be significant input
from residents, businesses, neighborhood
organizations, churches and others in the
area. People who live and work there have
ideas for what kinds of projects would
22
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
promote economic development. They
should have the opportunity to shape a plan
that could improve their economic conditions
and opportunities. Redrawing the Blackthorn
TIF boundary to include the LaSalle Square
area is important, but it is only one step.
Other resources and initiatives should be
brought to bear to develop the LaSalle
Square area and other areas suffering from
disinvestment should receive the same
attention. We should build upon and support
the efforts of the many dedicated individuals
who are working to ensure equal
opportunities for all.
Ms. Greene told Mr. Wolfson his time was
up. Mr. King allowed Mr. Wolfson to finish
his paragraph.
MR. WOLFSON: To create an environment
in which all children can grow up to realize
their full potential and, thereby, enrich the
lives of all of us.
PENNY HUGHES:1918 Southern View
Drive, South Bend. I own a number of rental
properties in the city of South Bend and I am
here to speak on behalf of real estate
investors who have been trying to save the
inner city as people have been moving out to
suburbia and abandoning their homes. It has
been the real estate investors who have been
buying up these properties, renovating them
and trying to help the inner city stay vibrant.
We felt we got quite a kick in the teeth when
the City, rather, when the State legislature
23
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
decided to give a $35,000, now $45,000
exemption and nothing to real estate
landlords. So, poor tenants have had to pay
more in the inner city to help cover these
increases in taxes. My own personal taxes
went from $38,000 to $73,000 over night,
and I, as a business person, was expected to
absorb that kind of "hit" on my business. As
a result of that we have in today's paper ten
pages of houses going up for tax sale. We
went to the City Council three or four years
ago when this tax problem first came, and we
said, this is going to happen to the City,
please help us get the State Legislature to
understand what they are doing to us and
either take away all homestead exemptions or
give it to all residential housing. They said,
"we have to study the issue." I guess they're
still studying it because they have never
gotten back to us. Meanwhile, what we said
was going to happen, 40% vacancy between
Lincolnway and Portage and that
neighborhood has happened now, and they
didn't listen to us, and that is the result. So, I
am here to say, I think TIFs are a good thing.
When the Grape Road developers wanted to
develop Grape Road, they wanted South
Bend to do it. South Bend said, no, we are
not going to go to that expense. So, Maggie
Prickett said, "We' 11 do it." And, as a result,
they did, and they improved that, and it has
gone extensively further than they ever
originally planned to do. And, I think
Mishawaka has been the beneficiary of that.
They have, in their wisdom, 15 years ago or
so said, "look, we are going to come down
24
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
main street and help some of our inner city."
We, as real estate investors, would like to see
the City keep in mind that we really do need
either another TIF district or to help that
inner city while we are helping development
on outside areas, which I believe is going to
be a good thing. Expanding the city limits is
a good thing, but let's not forget our inner
city and try to perhaps come down, including
LaSalle Square or that whole area that's been
in trouble, and, not forget them, as well.
Mr. King asked if anyone else wanted to
speak against Resolution No. 2254.
JERRY NIEZGODSKI: 2930 Bonds
Avenue, South Bend. I am not certain that
you received my... (it was acknowledged that
we had) yes, you did. I just want to briefly
read, I know you are going to summarize it,
but, my letter to President Jones and the rest
of the members of the Commission. What we
stated is that we enclosed some petitions with
signatures opposed to this expansion at this
time, and that is very important. We
understand the need for South Bend to grow,
and we also have seen the deterioration of
our inner city neighborhoods. As members of
the Redevelopment Commission, we suggest
you honor your mission to foster growth and
revitalization of all areas of the city, new and
old. One way to accomplish this would be to
not only extend the airport TIF boundaries
northward to include Portage Prairie area, but
to also extend them southward to include
LaSalle Square and adjacent areas along
25
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Lincolnway West. We urge you to table this
vote until you and your commissioners meet
with the stake holders in and around LaSalle
Square area to determine where the
boundaries should be extended to the south
of Lincolnway West. As the enclosed petition
states, "as the gateway to our city,
Lincolnway West and LaSalle Square area
offer the first impression of our town to our
visitors. Infrastructure improvements to
LaSalle Square and the surrounding area will
allow the City to jumpstart revitalization of
the Lincolnway West corridor and LaSalle
Square. The neighbors and business owners
o f the Lincolnway West Gateway
Association look forward to working with
you to make South Bend's west side an area
of which we can all be proud. In the petition
itself, we note, again, that we oppose this at
this time. We are not anti-growth at all. To
reiterate everything you heard, if you are
doing on the fringes, recognize the need and
the opportunities that could be created by
expanding the TIF southward to the LaSalle
Square and Lincolnway West area. Thank
you for your time.
GREG JONES: I work at the Indiana Plan,
315 N. Lafayette Blvd., and I live at 53384
Olive Road. I am just going to reinforce a
couple of points that were made earlier
regarding a transportation plan. When the
Blackthorn Development projects were being
done, the Holy Cross Health Services were
building a building and some of my trainees
from Indiana Plan had to walk a mile from
26
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
the bus. The bus would only go out to
Aucilla Plastics. They had to walk a mile to
get to that project. The State of Illinois just
passed a law recently, in June, that any
development projects have to have
transportation plans associated with them
before being approved. And, I would like to
ask that before this project be approved that a
transportation plan be incorporated as part of
it, and possibly even a hub. Right now,
Transpo has to take an express bus from
downtown, does a loop around Blackthorn. If
a hub were placed maybe at LaSalle Square,
using TIF dollars from this project, maybe
that money would help the transportation. I
am not a transportation expert; I am just
throwing that out there as a possibility. I just
want to make that point about transportation
and the other thing I just made about TIF
being extended south just like they have done
in Mishawaka. Mishawaka has now....they
got out ahead of us on the mall, and they also
got out ahead of us on the TIF, so they have
taken that TIF from the peripheral and
brought it down into the inner city and
brought some really nice statues down there,
a nice park, made it attractive. Maybe the
same sculptor could build some of those kind
of sculptures out in LaSalle Square and make
it attractive. So those are my two points.
Ms. Hughes indicated she wanted to speak.
Mr. King told Mrs. Hughes that we could
only allow each person to speak once. She
said she had forgotten to say one sentence
and perhaps someone else could say it for
27
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
her. He thanked her, and asked if anyone else
wanted to speak against Resolution No. 2254
to come forward at that time. Mr. Eagan
asked if since he didn't use all of his time the
first time if he could use the rest of it at that
time. Mr. King said the statute also states that
each person is only allowed to speak once
and he will revise his notes and be sure to
mention that at the beginning next time. He
was sorry he could not comply with Mr.
Eagan's request.
DAVE SMITH:1312 Kline. I was also going
to mention that there should be a time limit
on these TIFs. They should not last forever.
We know that maybe we get the money back
into the community to help it grow and
develop instead of just expanding the
monster or whatever. I like a lot of the things
that were said this morning.
Mr. King thanked each one who spoke. He
asked if anyone else wished to speak against
Resolution No. 2254. There was no one. Mr.
King closed the Public Hearing for whatever
action the Commission wished to take.
Mr. King asked Mr. Inks to read or
summarize the remonstrances.
Mr. Inks noted that there were five
Communications received related to
Resolution No. 2254. Three of them
expressed opposition to the expansion of the
Airport Economic Development Area to
include Portage Prairie and are, therefore,
remonstrances. They opposed the expansion
READING OF REMONSTRANCES AGAINS
RESOLUTION No. 2254
28
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
unless the LaSalle Square area was also
added to the Airport Economic Development
Area. The other two express the desire to
include the LaSalle Square area to the
Airport TIF area, but don't say they are
opposed Resolution No. 2254.
Communications:
Mr. Jack Daly sent an E-mail to Don Inks on
8/23/06 as follows:
Dear Sir,
Being a working man, I am not sure I'll be
able to attend this Friday morning's meeting
regarding the proposed inclusion of the
Portage Prairie project in a TIF district. I
am extremely interested in this and would
appreciate your passing on my input to the
folks empowered with making the decision on
this question.
I wish to make two points here: (1) The idea
of granting tax abatements and the like to
those interested in developing that area for
their own businesses is one that gives me
pause. The area out there is an attractive
one, evidently. As development in our area
spreads out from the inner city to the
outlying districts, areas like Portage Prairie
will naturally be targeted by companies
seeking to expand their operations. This will
happen with our without the perks gained
from a TIF... to further enhance this business
opportunity with abatements that do nothing
29
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
for the inner city's blighted areas, and, in
fact, removes tax dollars that would be
applied towards rejuvenating those areas,
seems unnecessary. The employment
opportunities touted by developers of
projects such as this are of no use to the
people living closer to the city center without
the transportation system to allow access to
those jobs promised. The tax base that could
go towards upgrading city schools and other
improvements now will include none of that
money. An opportunity for profit is provided
these companies, tax dollars are applied to
enhancing their projects like Portage
Prairie, and the areas of our city that could
use the financial boost those tax dollars
could bring in oNder to upgrade life in the
city are lost.
Which brings me to... (1) One way of
ensuring that the companies reaping a TIF's
benefits also contribute to the improvement
of life here in South Bend and surrounding
areas would be to balance development
outside the city center with a correlated
expansion of that TIF district to include an
area, or areas, severely in need of attention.
If the TIF district can be redrawn to include
Portage Prairie, there should be a
corresponding expansion of the TIF to
include an area such as LaSalle Square,
thereby ensuring that some of the benefits
from the redirecting of tax funds would go to
benefit the people living in our city, and not
just the corporations looking to profit from
our population.
30
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
While working to attract these businesses
into our area, let's work to ensure that the
folks in the city will reap benefits from such
projects, and not just the companies
involved.
Thank you for your consideration of my
thoughts.
Jack Daly
Citizen of St. Joseph County
Mr. Dan Hungerman sent an E-mail to Don
Inks on 8/23/06 as follows:
I am requesting that this communication be
directed to membeNS of the Redevelopment
Commission. I uNge the Commission to
carefully consider whether the benefits of
including Portage PNairie in the TIF exceed
the costs. Should the Commission decide to
expand the TIF to include Portage Prairie, I
agree with many others in the community
that additional expansion of the TIF to less
robust parts of South Bend deserves serious
consideration.
Sincerely,
Dan Hungerman
Remonstrances:
Mr. Joseph Carbone sent an E-mail on
8/25/06 to Don Inks as follows:
I do not favor the inclusion of the Portage
31
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Prairie development into the Airport TIF by
itself. The intent of TIF districts are to fix up
blighted areas. If anything LaSalle Square
should be in a TIF district. LaSalle Square is
an area of the city that needs redevelopment,
and is part of ht eLincolnway corridor. This
area of the city is the first area, which people
see coming form their drive in from the
airport.
I have been attending a subcommittee of the
Community Forum for Economic
Development. We have been discussing TIF
districts and tax abatements. Marty Wolfson
and two representatives from the economic
redevelopment committee of South Bend have
been at these meetings, along with other
concerned citizens and groups, including a
group representing Mental propeNties. I
believe TIF districts serve a purpose, but the
time limits seem too long. TIF districts can
presently exist for 30 years under the present
law. I believe the airport district has no
limit, since it was initiated before the new
law. TIF district taxes can only be used for
infrastructures and not for schools, teachers,
police offices, firefighters, or libraries. As
you can see this is the drawback from TIF
districts. The TIF districts take revenue
away from operational expenses of the city
and county.
I realize that the city probably gets more tax
revenue, but this money is now controlled by
folks who are not voted for. The tax money is
controlled by the recommendations of the
32
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Redevelopment Commission and not any
elected representatives of the city of county.
I would recommend that TIF districts be
restricted to 5 to 10 years in length so as to
build the infrastructure, but not cause a
hardship for the tax payers who are
subsidizing the TIF districts' operational
expenses. These operational expenses to the
city and county government include, but are
not limited to, libraries, police and fire
protection. These costs fall on the shoulders
of the rest of us.
In solidarity,
Joe Carbone
Area representative CI~A4900
Chairperson St. Joseph Valley Project Jobs
with Justice
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission acknowledged receipt of the
remonstrance from Mr. Joe Carbone.
Mr. Martin VUo lfson sent an E-mail to Don
Inks on 8/23/06 as follows:
Dear Don:
Please submit the attached file to the
Redevelopment Commission in reference to
its hearing this Friday. It is the text of the
Michiana Point of View article that appeared
in the Ti^ibune on August I5, 2006, except it
has the title that I submitted (before it was
33
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
changed by the Tribune headline writer).
If you have to categorize it as for or against
Resolution 224, you can count it as against.
Best regards,
1l~arty
The South Bend Redevelopment Commission
is considering a plan to incorporate the
proposed Portage Prairie development into
the Airport Economic Development Area
(also known as the Blackthorn Tax Increment
Financing (TIF) District). It will hold a
public hearing on the issue on August 25.
This issue might seem technical and obscure
to many people. However, because the plan
involves a significant subsidy to the Portage
Prairie "mini-city" in the newly-annexed, faN
northwest corner of South Bend, it raises
important questions about how taxpayer
money is used and whether or not the
downtown and surrounding older areas of
South Bend would be left behind.
Because the Airport Economic Development
Area is a TIF district, the property taxes from
increases in assessed value in the district (the
"tax increment") are "captured" and used
for infrastructure improvements in the
district. They do not go to the regular taxing
~urlsdlctlons, such as the City of South Bend,
St. Joseph County, schools, library, Transpo,
etc.
Including Portage Prairie in the Blackthorn
34
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
TIF district means that a portion of the tax
revenue being captured by the TIF would be
used to finance infrastructure projects in
Portage Prairie.
A lot of money is potentially available. The
Blackthorn TIF generated a X6.2 million tax
increment in 2005, and had X10.6 million in
cash as of December 31, 2005. Although
projects are currently planned within the
present boundaries of the TIF district, it is a
"mature" area; it was established in the
early 1990s and many of the basic
infrastructure projects are already
completed. Projects now under
consideration are arguably of secondary
prtortty, such as the proposed X450, DOD plan
to upgrade the bunkers in the Blackthorn
Golf Course. (This plan was rejected by the
Redevelopment Commission at its July 21St
meeting.)
Just how much tax revenue from the
Blackthorn TIF would be used for Portage
Prairie? The answer can be found in a draft
development agreement negotiated between
the City of South Bend and Waggoner Farms
Development (a limited partnership created
by the Portage Prairie developer, Holladay
Corporation). In that agT^eement, the City
pledges to use $2, 058, 400 of Blackthorn TIF
funds for the Portage Prairie development.
Although the agi^eement recognizes that this
plan is subject to a decision by the
Redevelopment Commission to incorporate
Portage Prairie into the TIF, and approval
35
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
by the Commission of the specific projects,
the nature of such a specific negotiated
agreement between Holladay and the City
leaves one wondering how the Commission is
supposed to incorporate public opinion into
its decision-making.
In addition, the agreement states that
"Developer [Holladay) ...acknowledges
that the ~RedevelopmentJ Commission, in
accordance with this Agreement, will
endorse and support a nine (9) year tax
abatement for the [Portage Prairie)
Project. " The ag~^eement acknowledges that
tcrx abatements are subject to approval by the
Commission and by the South Bend Common
Council. The tax subsidy for the developeN, if
it is successful in its Nequest for 9 year
abatement on all buildings, is estimated to be
$4, 530, 027.
The $2.1 million in TIF tax revenue and the
$4.5 million in tax abatements are only for
Phase One of the Portage Prairie project.
There are nine phases in all, but the City has
thus far only agreed to support the first
phase. Supporting the remaining phases
would obviously imply a much greater tcrx
subsidy.
Proponents of the Portage Prairie
development argue that such large subsidies
are justified because of the increase in jobs
and assessed property value that would be
created. But an important issue is how
broadly these benefits would be shared.
36
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Would the jobs created address the issues of
unemployment and poverty in the inner city?
Portage Prairie is a long way from
downtown South Bend, and there have not
yet been any plans, to my knowledge, to
provide for public transportation to the
development. It took years before bus
se~^vice was established to Blackthorn.
Would growth in Portage Prairie come at the
expense of commercial development in other
parts of the city? It seems likely that the
demise of Kroger's and Target in LaSalle
Square was hastened by the new Wal-Mart
and Meijers stores that opened on Portage
Avenue near Cleveland; they, in turn, were
likely attracted there by the increase in
residential development in the area neaN
Blackthorn.
In addition to these concerns, there is also
the following problem: if Portage Prairie is
incorporated into the Blackthorn TIF district,
any increase in tax revenue from higher
assessed property values will not benefit City
residents generally; the incremental tax
revenue will have to be used for
infrastructure projects within the confines of
the Blackthorn TIF. Indeed, much of it is
likely to be used to benefit the fastest-
growing area in the Blackthorn TIF, Portage
Prairie itself.
What should be done? How can economic
development increase living standards and
opportunities for all area residents?
One idea for achieving this goal has been
37
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
suggested by a new community organization,
The Community Forum for Economic
Development. It has discussed the Portage
Prairie issue and recommends that, if the
Redevelopment Commission expands the
Blackthorn TIF northward to incorporate
Portage Prairie, then it should also expand it
southward to include areas adjacent to the
TIF on the west side of South Bend, such as
LaSalle Square. The specific boundary of the
TIF district, and the projects that the TIF
would undertake, would be decided with
significant input by residents and
stakeholders in the area.
Using TIF money to redevelop LaSalle
Square should not be the end of our efforts,
but simply one way to take on the laNger task
of including all aNeas in the City's
prosperity. It is a positive step to make
economic development work for all.
-- Marty Wolfson teaches economics at the
University of Notre Dame. He is a member
of the Community Forum for Economic
Development and the citizen representative
on the South Bend Common Councils
Committee on Community and Economic
Development.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission acknowledged receipt of the
remonstrance from Mr. Martin Wolfson.
A remonstrance from Jerry Niezgodski was
38
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
received in the office of the Redevelopment
Commission on 8/24/06 as follows:
1l~arcia I. Jones, President
South Bend Redevelopment Commission
227 W. Jefferson, Suite 1200
South Bend, IN 46601
1l~adarne President,
I am writing to you and your fellow
Commissioners regarding your August 25
hearing on expanding the Airport
(Blackthorn) Tax Incremental Finance (TIF)
District to include areas in the newly
annexed Portage Prairie development. I am
enclosing petitions with signatuNes opposed
to this expansion at this time.
We understand the need for South Bend to
grow. We also have seen the deterioration of
our inner city neighborhoods. As members
of the REdevelopment Commission we
suggest you honor your mission to foster
growth and revitalization of all areas of the
city, new and old. One way to accomplish
this would be to not only extend the Airport
TIF boundaries northward to include the
Portage Prairie area, but to also extend them
southward to include LaSalle Square and
adjacent areas along Lincoln Way West.
We urge you to table this vote until you and
your cornrnissioners meet with the
stakeholders in and around the LaSalle
Square area to determine where the
39
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
boundaries should be extended to the south
of Lincoln Way West. As the enclosed
petition states, "As the gateway to our city
from the airport, Lincoln Way West and
LaSalle Square area offer the first
impression of our town to our visitors.
Infrastructure improvements to LaSalle
Square and the surrounding area would
allow the city to jump start the revitalization
of the Lincoln Way West Corridor and
LaSalle Square. "
The neighbors and business owners of the
Lincoln Way West Gateway Association look
forward to working with you to make South
Bend's west side an area of which we can all
be proud.
Sincerely,
Jerry Niezgodski
Chairman
Lincoln Way West Gateway Association
Mr. Inks also read the prelude to the petition.
PETITION FOR ADDING LASALLE
SQUARE AREA TO AIRPORT TIF
DISTRICT
As the gateway to our city fi^om the airport,
Lincoln Way West and the LaSalle Square
area offer the first impression of our town to
our visitors. Infi^astructure improvements to
LaSalle Square and the surrounding area
would allow the city to jump start the
revitalization of the Lincoln Way West
40
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
corridor and LaSalle Square.
We, the undersigned (and attached
signatures) urge the South Bend
Redevelopment Commission to table the vote
to expand the Airport TIF northward to
include the Portage Prairie development at
this time. Further, when the issue is
revisited, if the Commission decides to
expand the Airport TIF boundaries
northward, it should also extend them
southward to include LaSalle Square and the
surrounding area of Lincoln Way West.
We also request the Redevelopment
Commission hold hearings in the LaSalle
Square area to get the input of neighbors,
business owners and all stakeholders as to
where the boundaNies should be extended
south of Lincoln Way.
There were 127 signatures on the petition.
The petition was passed to all
Commissioners for their viewing.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission acknowledged receipt of the
remonstrance from Mr. Jerry Niezgodski.
Mr. King offered staff an opportunity to REBtrrTAL FROM STAFF
rebut the arguments made in the Public
Hearing.
Mr. Inks: There are a couple of points I'd
like to comment on. First of all, it seems that
41
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
while these people have expressed some
concern about the expansion of the Airport
Economic Development Area to include
Portage Prairie, there seems to have been
consensus through the comments that the
objection isn't so much related to the
expansion of Portage Prairie, but to also
consider the inclusion of the LaSalle Square
area as a part of the TIF area expansion.
There are a couple of other points here. The
mission of the Redevelopment Commission
came up in at least two or three of the
comments opposing this resolution. I would
remind people that the mission of the
Redevelopment Commission is at least two-
fold: It has powers not only to redevelop
blighted areas, it also has the ability to
designate economic development areas that
are not blighted areas. They are designated
to create new business opportunities, new
investment, new jobs and provide other
benefits to the communities. So economic
development areas are a part of the
Commission's mission.
I would also point out that we've been
focusing on just the Airport Economic
Development Area, which is one of many
development areas that the City of South
Bend's Redevelopment Commission has
under its jurisdiction. West Washington is a
separate redevelopment area, it is a TIF area,
it is in the inner city, and there have been
significant activities that have been
undertaken there to get rid of blight, to create
42
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
new housing opportunities, new business
opportunities. The Redevelopment
Commission also has the Sample-Ewing
Development Area, also in the inner city,
focusing on the Studebaker Corridor and the
southeast neighborhood. There have been
significant strides made in improvements in
the southeast neighborhood, there have been
millions of dollars committed to the
demolition and reclamation of the land for
Oliver Plow and the Stamping Plant site.
The other inner city projects include the
Northeast Neighborhood Development Area
which was established in the last three or
four years by the Redevelopment
Commission. It is also an inner city
neighborhood, and while that is a TIF area, it
does not generate its own increment. The
progress takes time to build up and, to date,
there has not been enough development to
generate TIF revenue in that area. But the
city, through other resources, has been
providing a half million dollars for the past
years, plus administrative funds for the
Northeast Neighborhood Organization, to
move that project ahead. Properties are
being acquired, plans are being made and
development will be occurring in the near
future. So, that area, again, is in the inner
city and is a Redevelopment Commission
project.
We could go around and, I suppose, cover
the rest of the redevelopment areas. I'm not
sure that's entirely necessary, so I will stop
there unless somebody desires to hear more
43
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
about that.
I think, finally, the mention of LaSalle
Square is a consistent theme in all of the
comments and this Commission did receive a
communication from Charlotte Pfeifer
previously, has responded to that
communication and indicated that by its first
meeting in October staff will bring back a
report on LaSalle Square and make a
recommendation on including that in the
Airport Economic Development Area and in
the TIF allocation area. But, with those
comments, I will conclude.
Ms. Greene noted that the action before the
Commission at this time is simply the
adoption of a resolution that expands the
Airport Economic Development Area.
There's been a lot of commentary by persons
in attendance with respect to other areas.
However, that issue is not before the
Commission today.
Ms. Greene also clarified that action on
Resolution No. 2254 would in no way
preclude the Commission, at a later point in
time, from taking action consistent with some
of the comments that were taken today, if the
Commission wishes. One item that is not
before the Commission is the inclusion of
other areas not referenced in the resolution.
But action on Resolution No. 2254 does not
cancel the process toward including the other
areas} at a future point in time.
44
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
Ms. Greene also pointed out that there is a
clear distinction between an economic
development area and a redevelopment area.
While it is very easy to talk about TIF being
used generally, TIF is used very differently
in those two types of development are. This
is primarily due to the fact that the use of
TIF in each type of development area is
based upon the reasons that the development
area was established originally. Therefore,
the Development Plan imposed for each type
of development area will vary. In a
redevelopment area the Commission's focus
is eliminating blight. The findings on which
such designation of a redevelopment area is
based is that there are deteriorating buildings
and other conditions which cannot be turned
around without government involvement.
Conversely, in an economic development
area, the focus of the Development Plan is
increasing the tax base and creating jobs.
The findings on which the Commission's
designation of the economic development
area is based is that the area lacks the
infrastructure necessary for business
development TIF dollars get spent based on
the Development Plan in place for the
development area. In a nutshell, the
Development Plan for the area depends on
what you are trying to correct -blight or
lack of business development.
Mr. Peterson noted that Resolution No. 2254
expands the Airport allocation area. It really
has nothing to do with the Portage Prairie
project. The developer has already obtained
45
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
the zoning permits, has full authority to build
this project. What was mentioned as far as
the Development Agreement, in that
agreement he consented to us as being the
only owner of the property on which we
desire to build Dylan Drive, consent to this
action by the Commission. He would not
oppose it. This allocation area allows the
Commission to collect taxes off of increased
property values from commercial properties.
It can only be used for local public
improvements and for bonds to make local
public improvements. When you expand an
area, what you hope to do is to increase the
TIF revenue and what this project does, as an
example, is take property with very little
assessed value and building a building on it
which will create additional increment. The
goal is to create new tax revenue to use for
improving the infrastructure in the area.
Now that's helpful in the sense that if in the
future you decide to expand into LaSalle
Square, it does provide additional funds for
that. So, if you are for using more funds, you
need to have more funds to use. Secondly,
with the new tax legislation about the 2%
circuit breaker, the amount of TIF revenue
will likely go down in the area. We have two
bonds outstanding, so for the purpose of
increasing revenue, it's in the best interest of
the City, for the coverage of the bonds, to
expand the area. When you expand a TIF
area to include land that has buildings, as
does LaSalle Square, it has to be thought
through very carefully. It has to be done at
just the right time, because they currently
46
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
have assessed value. If the developer goes in
and tears them down, you could lose current
revenue you already have, which could
impact the payment on the outstanding
bonds. So, there's a big distinction of what
an allocation extension does. All things
considered, what we're doing due to the
agreement we've negotiated before is to be
able to capture that, to make our bond
payments, to do the improvements, and to
help things like other expansions that will
come to play in the future. That's what this
resolution does, and that's all that this
resolution does.
Mr. King noted that there has been a lot of
discussion, a lot of clarifications and rebuttal.
It's now time for the Commission to decide
what it wants to do.
Mr. Blake: I like what you're saying, Shawn,
about the TIF. That kind of ties in with what
John Phair was saying. So, I think John
might want to use one of those parliamentary
procedures to yield back the balance of the
remainder of his TIF. I've got a couple of
commentary things. Do I get more than five
minutes?
Ms. Greene: You are a Commission
member. You get as long as you like.
Mr. Blake: We really do want to talk about
the economic development as opposed to the
redevelopment. Because the economic
development is the real issue. It's not just
47
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
redevelopment, because you cannot eliminate
poverty with just redevelopment. You must
eliminate poverty with economic
development.
Now, John, you made a couple of comments,
and it sounds like, to me, that you would like
to persuade the Commission to exclude
Portage Prairie from the TIF district. And
just include the LaSalle district. According
to what you said, Shawn, that would be a
negative thing. Now, I may be off track on
that.
The primary concern that I have, as well as
the other people that are here, I think, that
were opposing it, is that the inner city,
especially the LaSalle area, or any other part
of the city, whatever is decided here with
approval of the proposal, if we approve that,
the primary concern is that the inner city, that
the LaSalle area does not get forgotten after
this is done. When we approve this and
leave here, that LaSalle and other blighted or
poor, impoverished, undernourished areas get
forgotten. And then there's nothing we can
do about it because no one else cares about it
after we leave here. That's a concern that
that doesn't happen, so I would like
somehow to give a definite assurance that
that won't happen. Now, can the
Commission do that, that it won't be dropped
and forgotten? Because I'm very much
aware that we've got to vote on this. There
are three Commissioners. If I don't vote, or
if I vote against it, then that means you don't
48
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
pass it. I may be a preacher, but I ain't
stupid. Sometimes you get that impression,
though.
Here's some commentary that I would like to
say, what my position is. Infrastructure is
what TIF is to be used for. Brick and mortar
infrastructure has not fixed the problems of
the inner city. The drugs, crime, violence,
poverty cannot be fixed by brick and mortar.
The true infrastructure is the people, that is
people infrastructure: heart, mind, soul and
spirit of the people. The old way of
infrastructure thinking is new wine in old
wine skins. We must not continue to
conform to the old wine skins and the old
world thinking. But we have to transform
through the renewing of the mind. Not just
being conformed to the old way of thinking.
And I say as far as poverty and the `hood is
concerned, and economic development for
the poor....because the poor people are not
going out there to Prairie, Portage Prairie.
So, I'm saying economic development for the
poor...that's part of what we're talking about
when we talk about the LaSalle. We're
talking about economic development for poor
people. Inner city, low and no income.
That's part of the issue that we must address.
And this is the time to do it as well. Portage
Prairie has given us a platform to talk about
that. Thank you, John, I appreciate it. And
we need that sort of platform to be able to
talk about it. The City has come to accept
poverty as just a fact of life, and accepting
poverty as a fact of life, but at the same time
49
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
we expect to eliminate drugs, crime, and
violence, and it ain't going to happen. That
just does not work, when you try to do both
of those things. I believe we should have a
City Plan. We've got one, but I'm saying to
eliminate poverty in the entire City of South
Bend. It is radical to suggest that, but it is
not impossible. ~Ue can create a plan with
the specific purpose of not only diminishing,
but eliminating poverty in South Bend. It
will change the level of thinking if we think
about that. And we will find new solutions
to old problems if we do not believe that we
can do that, then we won't even think about
trying to do it. And so our level of thinking
remains the same.
Another commentary that I'd like to make is
this. Resources generated from TIF and all
taxes, if properly developed, should generate
wealth transference to all succeeding
generations, but time and time again urban
inner city, poor communities, are left without
any meaningful transformation, despite the
hundreds of millions of dollars, as you were
saying, Don, the hundreds of millions of
dollars directed toward various government
driven programs, because the implementation
of each program has been wholly without any
coordinated model, based on the needed
capacity to deliver the services and the ability
to sustain the ultimate bottom line. If and
when achieved, the poor are often left behind
to defend for themselves without the benefit
of city planners who really care about the
poor'styell-being. America's public and
50
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
private sector has spent billions upon the
poor in the form of income support, safety
nets, rental assistance, transitional aid, and
supplemental spending, but these sectors
have rarely invested in the poor, empowered
them with assets, enabled them to own a
piece of their neighborhoods, or encouraged
them to build wealth. Thus, while the U. S.
has succeeded in preventing the vast majority
of poor families from falling through the net,
or through the bottom, it has failed in
offering the asset-building tools necessary to
let those families move from the bottom to
the middle to the top. It ignored them to a
great extent. Our country has an economic
development plan, our state has an economic
development plan, our city has an economic
development plan, but we need to have a
serious economic development plan for the
`hood, for the poor, for those who really
don't have an economic plan, don't have the
ability to develop an economic development
plan, and so we let them fall and they
continue to fall, without the proper care and
concern for the city. If the city does not care
for the poor, who's going to do it. I know we
can say that the church should do it. Well,
you know what? The city is supposed to be a
part of the church, also, or the community, or
at least that's the way....everybody in here is
probably a part of somebody's church.
We're on this committee here. I'm a part of
the church. You guys may or may not be.
But, I'm saying that is a part of it. The
reality, and that's what we do not want to
lose when we leave here. We don't want to
51
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
lose the reality of the necessity of addressing
these specific issues, not just from a
redevelopment side, but also from an
economic side, because you can never
eliminate poverty. I believe the Portage
Prairie Project is exciting. It is an exciting
economic growth for the city of South Bend,
and I am not in opposition to the inclusion of
Portage Prairie in the Airport Economic
Development Area for the TIF. But I
strongly believe that the dialogue currently
taking place to include the LaSalle area in the
Airport Economic Development Area also is
a challenging dialogue, it's appropriate
dialogue, it's exciting, it's advantageous and
opportune, and it's long over due. But if we
never get people to sit in these types of tables
and those that sit down in the Council that sit
down in those tables to talk like this and to
advocate for the poor, they never will get it
changed. It will remain the same. And, we
have to have the John Phairs advocate for the
poor, too. VUe need the corporations to
advocate for the poor, not just to ignore the
poor, but to advocate, to be real, to be
"facial." Do you understand what I mean by
"flClal?" I mean "offlclal". See, We have
three choices if you're going to be "facial".
Either you are official, which is real, or you
are artificial or superficial. And there is too
much artificial, superficial baloney that goes
on in the government and not really
addressing the real issues of the poor, not
addressing them as we should address them,
and so it goes on, and on, and on, and it
never gets addressed. I believe it is possible
52
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
in the inner city, the grassroots, and
financially challenged poor people, given the
proper tools, resources, guidance, training,
support, and compassion to create an
economic plan that will transform the
LaSalle area and any other neighborhood in
our city if we really choose to do it. It was
my plan to suggest that we also include the
LaSalle Square and every other part of our
city that's impoverished, along with this
proposal, this resolution. If we would just
include the LaSalle Square... but if we
weren't going to include this LaSalle
Square...but if we do, also a contingency to
pursue including other parts of it, and to do
that within the next ninety days. But, in
hearing these things, and especially what you
had to say, Shawn, I think it is wiser on my
part, as far as the Council, that we do
improve the TIF. But, it sounds like John
Phair doesn't want that TIF. He said,
"you're not using it forme anyway." I
understand, and I am not in opposition
toward it, so, that's my commentary.
WILLIAM HOJANACKI: I didn't actually
hear anybody who was really opposed to it.
Everything that I heard was in favor of
including the LaSalle Square Area and the
economic areas along Lincolnway West area
there as a part of it. I really do see that, and I
am totally sympathetic about this. This is the
area I grew up in when I was a kid. I' m very,
very sympathetic about doing something
about LaSalle Square, and very sympathetic
about doing something about the entire
53
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
northwest part of the city, and the fact that it
is so linked to Portage Prairie, I think it is
somewhat unfortunate. I do see those as
different kinds of things. There is a
difference between development and
redevelopment, even though that distinction
is often very, very, very thin. So I want to
make it very clear that I am really in favor of
doing something for LaSalle Square, but I
think we ought to approve this resolution as
it is written right now and I would so move
that.
MR KING: OK, let me just make a comment
and then we will see if that motion has a
second. I think the last comments that we
heard, those from Shawn Peterson are
probably best characterize my own thinking,
which is that the approval of this resolution
would help to generate the capability to
achieve the goals that everyone who stood up
and spoke publicly and what Hardie has just
articulated are about. And so I see this not as
an either or situation, it see it as steps in the
right direction. I think that if we approve this
Resolution No. 2254, and it results in the
generation of additional funds that are
available to be used for valid purposes, that
we are actually taking the first step in the
right direction. I think that the comments
made about LaSalle Square are equally valid,
and some of you who have been attending
our meetings on a regular basis know, that at
our previous meeting, the August 12
meeting, this Commission took an action
directing staff to begin a project of research
54
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
A. Public Hearing
() continued...
and preparation of a report back to the
Commission on, in fact, the inclusion of
LaSalle Square into the Airport Economic
Development Area as part of, perhaps, a
future action. I've seen the work plan, it's
well laid out, it's organized, it will deliver
the answers, and best of all, there's a
promised deliver date of our first meeting in
October. I think I see these things not as
mutually exclusive. I see them as steps
leading in the right direction, and, therefore, I
also favor the adoption of Resolution
No. 2254, and in fact, I will second Mr.
Hojnacki's motion.
(2) Commission approval requested for
Resolution No. 2254.
Mr. King thanked everyone who came for
participating in this process. He realized the
difficulty of coming at that time of day, but
their contribution will help the Commission
to do its job better. He encouraged them to
come back.
Upon a motion by Mr. Hojnacki, seconded
by Mr. King and unanimously carried, the
Commission approved Resolution No. 2254
expanding the boundaries of the Airport
Economic Development Area, expanding the
allocation area for purposes of tax increment
financing and amending the Airport
Economic Development Area Development
Plan.
COMMISSION APPROVED RESOLUTION N0.2254
EXPANDING THE BOUNDARIES OF THE AIRPORT
ECONOMIC DEVELOPMENT AREA, EXPANDING
THE ALLOCATION AREA FOR PURPOSES OF TAX
INCREMENT FINANCING AND AMENDING THE
AIRPORT ECONOMIC DEVELOPMENT AREA
DEVELOPMENT PLAN
55
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(1) Commission approval requested for
Resolution No. 2262 approving an
application for real property tax deduction
for property located at 1401 South Main
Street in the Sample-Ewing Development
Area. (BLK,LLC d/b/a Old Fort Building
Supply)
Mr. Schalliol gave the staff report on the
project. Old Ford Building Supply is a major
supplier of construction materials to the
Michiana area. The main product lines are
brick, architectural block, stone, landscaping
pavers, drywall, acoustical ceilings and
related products. The company plans to
renovate a Redevelopment Commission-
owned, vacant lot into a paved and fenced
outdoor storage yard for masonry products.
The additional storage is Phase I of afour-
phase expansion plan at Old Fort. The
estimated cost of the addition is $200,000.
Alternative to the tax abatement, Old Fort
Building Supply may qualify for an
Enterprise Zone Investment deduction. This
new 10-year deduction covers 100% of
assessed value from new investment, but
requires the company to contribute 25% of
savings to the Urban Enterprise Association.
If the company receives the Enterprise Zone
Investment deduction, the tax abatement will
become null and void.
It is estimated that the total project will
create two new, permanent, full-time jobs
representing a new annual payroll of
$60,000. The project will also maintain
nineteen existing, permanent, full-time jobs
56
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
() continued...
and one existing permanent, part-time job
representing an annual payroll of $830,000.
Old Fort Building Supply has not received
any previous tax abatements. The property is
properly zoned for the proposed project. The
property is located in the Sample-Ewing
Development Area, which is a tax increment
allocation area; therefore, the petition for real
property tax deduction must first be approved
by the South Bend Redevelopment
Commission. Although the project qualifies
for afive-year abatement, staff recommends
the Commission grant only athree-year
abatement because the project converts a
vacant lot for outdoor storage with no
building construction.
The estimated cost of the three-year
abatement is as follows:
Estimated Taxes
Over 3 Yrs
Without Abatement $20,577
With 3 Yr
Abatement $4,1161
Estimated Cost of 3
Yr Abatement $16,461
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission approved Resolution No. 2262
approving an application for three years of
real property tax deduction for property
located at 1401 South Main Street in the
COMMISSION APPROVED RESOLUTION N0.2262
APPROVING AN APPLICATION FOR THREE YEARS
OF REAL PROPERTY TAX DEDUCTION FOR
PROPERTY LOCATED AT 14O I SOUTH MAIN
STREET IN THE SAMPLE-SWING DEVELOPMENT
AREA. (BLK,LLC D/B/A OLD FORT BUILDING
SUPPLY)
57
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
() continued...
Sample-Ewing Development Area.
(BLK,LLC d/b/a Old Fort Building Supply)
(2) Commission approval requested for
Resolution No. 2265 approving an
application for personal property tax
deduction for property located at 3605
West Cleveland Road in the Airport
Economic Development Area. (Federal
Mogul Powertrain)
Mr. Schalliol gave the staff report on the
project. Federal Mogul is a manufacturer of
automotive pistons. Customers include most
of the major foreign and domestic
automobile manufacturers. Operations in
South Bend began in 1987. The project will
invest $4,779,000 in new manufacturing
equipment which will be acquired and
installed under four categories: (1) a new
assembly cell line---Chrysler 4.7L (the
Daimler Chrysler 4.7L is new business for
Federal Mogul); (2) productivity
improvement and safety; (3) research and
development and (4) information technology.
The project is not expected to create any new
jobs, but because the Daimler Chrysler 4.7L
is new business for the facility, it will
provide continued employment for
approximately 60 full-time employees when
the pro duct is at full volume in 200 8 . The
project will maintain 445 existing, permanent
full-time jobs representing an annual payroll
of $19,373,000.
58
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
continue ...
Federal Mogul has received nine previous
personal and two previous real property tax
abatements. It is incompliance with all
reporting requirements for those abatements.
The property is properly zoned for the
proposed project. The property is located in
the Airport Economic Development Area,
which is a tax increment allocation area;
therefore, the petition for personal property
tax deduction must first be approved by the
South Bend Redevelopment Commission.
The project qualifies for afive-year personal
property tax abatement under the tax
abatement ordinance.
The estimated cost of the five-year abatement
is as follows:
Estimated Taxes
Over 5 Yrs
Without Abatement $442,675
With 5 Yr
Abatement $151,513
Estimated Cost of 5
Yr Abatement $291,161
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission approved Resolution No. 2265
approving an application for five years of
personal property tax deduction for property
located at 3605 West Cleveland Road in the
Airport Economic Development Area.
(Federal Mogul Powertrain)
COMMISSION APPROVED RESOLUTION N0.2265
APPROVING AN APPLICATION FOR FIVE YEARS OF
PERSONAL PROPERTY TAX DEDUCTION FOR
PROPERTY LOCATED AT 36OS WEST CLEVELAND
ROAD IN THE AIRPORT ECONOMIC
DEVELOPMENT AREA. (FEDERAL MOGUL
POWERTRAIN)
59
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(3) Commission approval requested for
Resolution No. 2266 approving an
application for real property tax deduction
for properties located at 1810,1818,1826,
1834,1844,1852,1860, and 1868 Overlook
Court in the South Side Development
Area. (Ullery Development, LLC/Villas at
Ireland Woods)
Mr. Schalliol gave the staff report on the
project. Ullery Development intends to
construct eight new, single-family homes on
1.98 acres of land on urban infill lots. The
homes will consist of two or three bedrooms
and two baths, ranging in size from 1,463 to
1,906 square feet with basement, a 23 ft x 24
ft attached garage, covered patio, optional
fireplaces, and vinyl siding with stone and/or
brick accents. Each home will be built on a
minimum 66 ft x 138 ft lot. The estimated
price of each home will be between $190,000
and $300,000 (average $243,750).
Ullery Development was granted one
previous tax abatement. It is incompliance
with all reporting requirements for that
abatement. The property is properly zoned
for the proposed project. The property is
located in the South Side Development Area,
which is a tax increment allocation area;
therefore, the petition for real property tax
deduction must first be approved by the
South Bend Redevelopment Commission.
The project qualifies for afive-year real
property tax abatement under the tax
abatement ordinance.
60
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
continue ...
At an assessed value of $179,187, the cost of
the abatement on each house will be
approximately:
Estimated Taxes
Over 5 Yrs
Without Abatement $24,448
With 5 Yr
Abatement $14,232
Estimated Cost of 5
Yr Abatement $10,217
Mr. Shalliol noted that when the South Side
Development Area Development Plan was
adopted, it stipulated that there would be no
tax abatements given in the SSDA. When
that provision was passed, it was intended to
forbid industrial or commercial tax
abatement because of the impact on TIF.
Residential abatement has no impact on TIF
because residential cannot be counted in TIF.
Upon a motion by Mr. Blake, seconded by
Mr. Hojnacki and unanimously carried, the
Commission approved Resolution No. 2266
approving an application for real property tax
deduction for properties located at 1810,
1818,1826,1834,1844,1852,1860, and
1868 Overlook Court in the South Side
Development Area. (Ullery Development,
LLC/Villas at Ireland Woods)
(4) Commission approval requested for
Resolution No. 2268 approving an
application for real property tax deduction
for property located at 104 North Niles
COMMISSION APPROVED RESOLUTION N0.2266
APPROVING AN APPLICATION FOR REAL
PROPERTY TAX DEDUCTION FOR PROPERTIES
LocATED AT 1810,1818,1826,1834,1844,
1852, 186, AND 1868 OVERLOOK COURT IN THE
SOUTH SIDE DEVELOPMENT AREA. ~ULLERY
DEVELOPMENT, LLC/VILLAS AT IRELAND
VUooDS)
61
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
() continued...
Avenue in the South Bend Central
Development Area. (Niles/Washington LP
for the benefit of AM General)
Mr. Schalliol gave the staff report on the
project. The Niles/Washington LP is the
partnership of Holladay Corporation which
owns the building at Niles and Washington
which houses AM General's corporate
headquarters. AM General is a major
supplier to the U.S. military of personnel
vehicles and a builder of sport utility vehicles
for General Motors. The company plans to
construct a 17,500 sft addition and make
improvements to the existing 35,000 sft
building. The construction of the new
addition and improvements to the existing
office building will allow AM General to
remain in South Bend with space to grow as
the market dictates. The estimated cost of
the addition is $2,009,000 with
improvements to the existing building of
approximately $500,000.
The project will create an estimated eleven
new permanent, full-time jobs representing a
new annual payroll of $800,000. The project
will also maintain one hundred four existing
permanent, full-time jobs and one part-time
job representing an annual payroll of
$9,800,000.
Niles/Washington LP has not received any
previous tax abatements. The property is
properly zoned for the proposed project. The
property is located in the South Bend Central
62
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
B. Tax Abatements
() continued...
Development Area, which is a tax increment
allocation area; therefore, the petition for real
property tax deduction must first be approved
by the South Bend Redevelopment
Commission. The project is also in the East
Bank Development Area which has a
different set of qualifications for office
development. The project qualifies for a
eight-year real property tax abatement under
the tax abatement ordinance.
The estimated cost of the eight-year
abatement is as follows:
Estimated Taxes
Over 8 Yrs
Without Abatement $688,392
With 8 Yr
Abatement $299,450
Estimated Cost of 8
Yr Abatement $388,942
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission approved Resolution No. 2268
approving an application for eight years of
real property tax deduction for property
located at 104 North Niles Avenue in the
South Bend Central Development Area.
(Niles/Washington LP for the benefit of AM
General)
COMMISSION APPROVED RESOLUTION N0.2268
APPROVING AN APPLICATION FOR EIGHT YEARS
OF REAL PROPERTY TAX DEDUCTION FOR
PROPERTY LOCATED AT 104 NORTH MILES
AVENUE IN THE SOUTH BEND CENTRAL
DEVELOPMENT AREA. (MILES/WASHINGTON LP
FOR THE BENEFIT OF AM GENERAL)
63
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(1) Commission approval requested for
Authorization for Entry Upon Public
Property for Former Rink Riverside Site
Redevelopment Project.
Ms. Laurent noted that this is an access
agreement which allows the principals of
Eco-Urban Collaborative to contract with a
local engineering firm to conduct a soil
boring analysis on the former Rink Riverside
property. On April 7 staff reported to the
Commission certain weaknesses with the two
proposals that the Commission had received
concerning the purchase and development of
the site. In subsequent communications with
the Eco-Urban Collaborative, staff suggested
three areas needing improvement in its
proposal: (1) a clearer, more detailed project
pro forma, (2) proof of financial backing, and
(3) proven capacity to complete the
development project, whether that be a
partnership with a more experienced
developer, or some other means of bringing
development expertise and accountability to
the project. On May 19 the Commission
directed staff to close conversations with the
two development firms based upon the terms
they had previously presented in their
respective proposals, and to encourage the
two to bring back new proposals. At the same
time, the Commission left open the
possibility that consideration of other
proposals that might be presented. So, Eco-
Urbancontinues to pursue many avenues of
refinement of their original proposal and at
this time they wish to conduct site-specific
due diligence on the site and need the
Commission's permission to do so. They
64
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(} continued...
will fund the soil borings and intend to share
the results with the Commission whether or
not you accept their offer for purchase. Staff
recommends allowing them access.
Upon a motion by Mr. Blake, seconded by
Mr. Hojnacki and unanimously carried, the
Commission approved the Authorization for
Entry Upon Public Property for Former Rink
Riverside Site Redevelopment Project for
Eco-Urban Collaborative.
(2} Commission ratification requested for
Authorization for Entry Upon Public
Property for Gameday Redevelopment
Project.
Ms. Laurent noted that this access agreement
is for the placement of two marketing signs
on the St. Joseph/JeffersonlOt for the benefit
of marketing the Gameday project in
association with Cressy & Everett. This is in
advance of football season and the
Enshrinement Festival. Pre-sales are going
very well and within thirty days we expect
some major announcements in terms of
progress of the project. In the meantime, the
City is doing all it canto help market the
property. This authorization was needed
before the Enshrinement Festival so
Commissioners signed it then and it needs to
be ratified now.
COMMISSION APPROVED THE AUTHORIZATION
FOR ENTRY UPON PUBLIC PROPERTY FOR
FORMER RINK RIVERSIDE SITE
REDEVELOPMENT PROJECT FOR ECO-URBAN
COLLABORATIVE
Upon a motion by Mr. Hojnacki, seconded COMMISSION RATIFIED THE AUTHORIZATION
by Mr. Blake and unanimously carried, the FOR ENTRY UPON PUBLIC PROPERTY FOR
Commission ratified the Authorization for GAMEDAY REDEVELOPMENT PROJECT
65
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
continue ...
Entry Upon Public Property for Gameday
Redevelopment Project.
(3) Commission approval requested for
Petition to the Common Council of the
City of South Bend, Indiana, for the
establishment of an Economic
Improvement District.
Ms. Laurent noted that the City of South
Bend and Redevelopment Commission have
funded Downtown South Bend Inc for
several years in a demonstration Business
Improvement District (BID) aimed at
providing a heightened level of maintenance,
beautification, safety and hospitality services
for downtown businesses and visitors. The
demonstration period had been successful in
proving the value and demand for these
services. Downtown is thriving and the BID
initiative will take this to the next level. A
BID is a true partnership of public and
private interest and the intention is now to
create a special assessment district, allowed
for by state statute as a means of funding
these services going forward. DTSB has
launched an official petition campaign to
begin the legal process of declaring a special
assessment district. A petition signed by
51 % of property owners and representative
of a minimum of 66% of the assessed value
must be presented to the Common Council to
be presented by ordinance. Staff has worked
closely with DTSB to get this initiative off
the ground and congratulates their staff for
the grassroots work they have undertaken in
66
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
continue ...
building support for the BID. The petition
represents the Redevelopment Commission's
voluntary obligation to be assessed at a
percentage amount equal to all other property
owners in the downtown. Staff recommends
the Commission's support.
Mr. Hojnacki asked if this means
Commission-owned property will be
assessed the same as business owners. Ms.
Laurent responded that that is correct. Other
non-profit agencies such as Madison Center
and Memorial Hospital will participate also.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission approved the Petition to the
Common Council of the City of South Bend,
Indiana, for the establishment of an
Economic Improvement District.
(4) Commission approval requested for First
Amendment to Parking Agreement with
South Bend Community School
Corporation.
Ms. Greene explained that the Commission
has an agreement in place with the School
Corporation for their use of two floors of the
Wayne Street garage, related to its new
administrative building. The original
Parking Agreement contemplated that
parking would be controlled through the use
of signs on the top two floors which are
dedicated to the exclusive use of the School
Corporation. It was naive of both parties to
COMMISSION APPROVED THE PETITION TO THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, FOR THE ESTABLISHMENT OF AN
ECONOMIC IMPROVEMENT DISTRICT
67
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
() continued...
think that signs would be sufficient to
actually control parking. In order to provide
for better control of parking for the public
and for the school corporation, I recommend
that the Commission amend the Parking
Agreement with the School Corporation.
What has been worked out tentatively is the
idea of installing a second level of gates on
the upper floors which will work in
coordination with existing gates located near
the exit of the garage. Staff is requesting
Commission approval to prepare an
Amendment to the Parking Agreement and
finalize some terms that are sufficient to
capture that intent.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission Legal Counsel to prepare a First
Amendment to Parking Agreement with
South Bend Community School Corporation
expressing terms agreeable to both parties
(5) Staff report on Commission-owned
property. (201 S. Chapin St.)
Mr. Laurent noted that the Redevelopment
Commission is owner of the property at
201 S. Chapin St. The property is leased to
the Studebaker National Museum for its
newly constructed museum. As part of that
project, the property was acquired by South
Bend Heritage Foundation from a residential
owner. The property was then transferred to
the City. At that time there were some back
COMMISSION AUTHORIZED LEGAL
COUNSEL TO PREPARE A FIRST
AMENDMENT TO PARKING AGREEMENT WITH
SOUTH BEND COMMUNITY SCHOOL
CORPORATION
68
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
continue ...
taxes owed. It also appears there were some
levies made in error while that property was
owned by anon-profit agency and the City.
Staff and legal counsel have been working on
this for several months, trying to get this
error corrected before the property goes for
tax sale. Since the tax sale is fast
approaching, the best action at this point
seems to be a Petition of Waiver of Taxes.
Staff requests the Commission's direction to
draft that petition to be submitted to the
appropriate bodies.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission directed staff and legal counsel
to draft a Petition of Waiver of Taxes and
submit to the appropriate bodies for property
located at 201 S. Chapin St.
(6) Opening of Bids for roof repair in the
South Bend Central Development Area.
(LaSalle Hotel)
Mr. Williams reported on the bids submitted
earlier in the meeting. KRC Roofing was the
lowest responsible bidder at $4,900 (base
bid) and $2,900 for the alternate. The
combined total is $7,860. Staff recommends
accepting the bid of KRC Roofing.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission accepted the bid of KRC
Roofing in the amount of $7,860 for roof
repairs to the LaSalle Hotel.
COMMISSION DIRECTED STAFF AND LEGAL
COUNSEL TO DRAFT A PETITION OF WAIVER OF
TAXES AND SUBMIT TO THE APPROPRIATE
BODIES FOR PROPERTY LOCATED AT 2O I S.
CHAPIN ST.
COMMISSION ACCEPTED THE BID OF KRC
ROOFING IN THE AMOUNT OF $7,860 FOR ROOF
REPAIRS TO THE LASALLE HOTEL
69
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(7) Commission approval requested for
Authorization for Entry Upon Public
Property for property located at 211
Colfax Avenue.
Ms. Laurent noted that the City partners each
year with Downtown South Bend, Inc. in the
sponsorship of Art Beat which highlights our
downtown and local artistic talent. This is an
access agreement which allows DTSB to
direct aesthetic and safety improvements to
the property on the northwest corner of Hill
and Colfax. The vacant lot will be the scene
of a musical stage. Work estimated at
approximately $4,000 will be funded through
TIF as a donation to Art Beat, however the
work done will be a needed improvement of
lasting benefit. Many City departments offer
in-kind services to this event. Staff
recommends approval of the agreement.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission approved the Authorization for
Entry Upon Public Property for property
located at 211 Colfax Avenue.
D. Sample-Ewing Development Area
(1) Staff report on acquisition of property in
the Sample-Ewing Development Area.
Mr. Schalliol noted that staff had presented
to the Industrial Revolving Fund a purchase
offer in the amount of $147,000 for the
Kokoku Wire property at 1217 Walnut
Street. The Industrial Revolving Fund has
COMMISSION APPROVED THE AUTHORIZATION
FOR ENTRY UPON PUBLIC PROPERTY FOR
PROPERTY LOCATED AT 211 COLFAX AVENUE
70
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
D. Sample-Ewomg Development Area
() continued...
presented a counter offer. They accept the
price, but have set some restrictions on how
they would like the sale proceeds to be
distributed. Staff recommends accepting the
counter offer, as presented by the Industrial
Revolving Fund.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission accepted the counter offer from
the Industrial Revolving Fund for property
located at 1217 Walnut Street.
(2) Staff report on property to be acquired by
the Redevelopment Commission (1217 S.
Walnut)
Mr. Schalliol noted that this item relates to
asking staff and legal counsel to draft a form
of petition for tax relief as well as directing
legal counsel to file the petition once the
property acquisition for 1217 Walnut St. is
completed.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Blake and unanimously carried, the
Commission directed staff and legal counsel
to draft a form of petition for tax relieve for
property located at 1217 Walnut St. and to
file that petition when the Commission
received title to the property.
E. Airport Economic Development Area
There was no business in the Airport Economic
Development Area.
COMMISSION ACCEPTED THE COUNTER OFFER
FROM THE INDUSTRIAL REVOLVING FUND FOR
PROPERTY LOCATED AT 121 ~ WALNUT STREET.
COMMISSION DIRECTED STAFF AND LEGAL
COUNSEL TO DRAFT A FORM OF PETITION FOR
TAX RELIEVE FOR PROPERTY LOCATED AT 121 ~
WALNUT ST. AND TO FILE THAT PETITION WHEN
THE COMMISSION RECEIVED TITLE TO THE
PROPERTY
71
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
6. NEW BUSINESS (CONT.)
F. South Bend Medical Services District
There was no business in the South Bend Medical
Services District.
G. West Washington-Chapin Development Area
There was no business in the West Washington-
ChapinDevelopment Area.
H. South Side Development Area
There was no business in the South Side
Development Area.
I. Northeast Neighborhood Development Area
There was no business in the Northeast
Neighborhood Development Area.
J. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
7. PROGRESS REPORTS
There was no report.
8. NEXT COMMISSION MEETING
PROGRESS REPORTS
The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING
scheduled for Friday, September 15, 2006 at 10:00 a.m.
72
South Bend Redevelopment Commission
Rescheduled Regular Meeting -August 25, 2006
9. ADJOURNMENT
There being no further business to come before the
Redevelopment Commission, Mr. Hojnacki made a
motion that the meeting be adjourned. Mr. Blake
seconded the motion and the meeting was adjourned at
12:12 p.m.
Donald E. Inks, Director
EXECUTIVE SESSION
August 25, 2006
The South Bend Redevelopment Commission met in Executive Session on Friday,
August 25, 2006, at 8:45 a.m. The meeting was held in Room 1200 County-City Building, 227
West Jefferson, South Bend, Indiana, for the purposes specified in I.C. 5-14-1.5-6.1(b}(2)(D}.
Commissioner's Present: Karl King, Vice President; Hardie Blake, Bill Hojanaki. Others
Present: Sharon Kendall, Executive Director, Community & Economic Development, Don Inks,
Director, Economic Development, Attorney Cheryl Greene, Robert Mathia, Bill Schalliol, Tim
Williams, Andy Laurent, Jennifer Laurent, Nick Witwer, Pam Paluszewski and Shawn Peterson.
The Commission certifies that no topic was discussed other than the subject matter specified in
the Public Notice. The Executive Session was adjourned at 10:00 a.m.
Donald E. Inks, Director
Marcia I. Jones, President
ADJOURNMENT
Marcia I. Jones, President
73