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HomeMy WebLinkAbout01-14-08 Community and Economic Development Committee~_ ', , , .. ~~` - J _. ! ~,, Community and Economic Development Committee 2008 South Bend Common Council The January 14, 2008 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by its Chairperson Council Member Derek Dieter at 3:30 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Dieter, Varner, Davis, White, Kirsits, LaFountain, Davis, Rouse and Puzzello; Acting Mayor Charles Leone, Mrs. Kopola, Martha Lewis, Bob Mathia, Marty Wolfson, Derek Spier, Ann Kolata, Jamie Wade Ruic, Alison Levey, Jay Walters, Joe Grable, unidentified members of the public, Jamie Loo of the South Bend Tribune and Kathleen Cekanski-Farrand, Council Attorney. Council Member Dieter noted that the Committee members include Council Members Henry Davis, Ann Puzzello, Karen White and himself as Chairperson. Bill No. 07-80: Resolution Confirming a 9-Year Real Property Tax Abatement for Key SB, LLC, the Hlnman Company: Council Member Dieter called for a presentation on Bill No. 07-80 which would confirm the adoption of a declaratory resolution declaring 202 South Michigan, Floors 1,2,4,5,9 and 11 to 14 as an economic revitalization area for purposes of a 9-year real property tax abatement for Key SB, LLC, the Hlnman Company. Bob Mathia of the Economic Development Department noted that the Council approved the Declaratory Resolution this past summer, and that negotiations on the Memorandum of Understanding have been ongoing. The MOA has been approved by all parties (copy attached). Mr. Mathia then summarized his report of May 1, 2007 (copy attached) which noted that the rehabilitation project will total $5,951,680. The project will create four (4) new permanent full-time jobs in the first year with a new annual payroll of $406,000. The project will maintain forty-nine (49) existing, full-time jobs which have an annual payroll of $2,986,470. Jamie Wade Ruic, an agent for the Hinman Company, made the formal presentation. She noted that Key Bank will be 90% occupied once the project is completed, compared to a 65% occupancy prior. They are working to backfill the former space in the old 1St Source Building. She noted that tax abatement has made this all possible. Dr. Varner inquired about the taxes to be abated, noting that in the past approximately 50% would be abated for such projects. He asked for written substantiation of the figures set forth in the May 1, 2007 report. Community and Economic Development Committee January 14, 2008 Page 2 In response to a question raised by Council Member White, Ms. Ruic stated that they have a prospective out-of-town tenant for about '/z of the space in the old 1St Source Bank Building. Approximately 10,000 square feet is available in total and she will verify the numbers this evening. Their goal is to have 100% backfilled. In response to a question from Council Member Oliver Davis, Ms. Ruic stated that a Letter of Intent will be forthcoming on the space which they are backfilling. Council President Rouse requested that Mr. Mathia file the documentation requested by Dr. Varner prior to the 7 pm meeting so that the Council may have time to review it. There was no one from the public to speak in favor or in opposition to the Bill. Council Member Puzzello made a motion, seconded by Council Member White that Bill No. 07-80 be recommended favorably. The motion passed. Bill No. 08-02: Declaratory Resolution fora 5-year Residential Real Property Tax Abatement For Kendall-Weiss, LLP for properties in Lafayette Falls, Phase III, § 3: Council Member Dieter called for a presentation on Bill No. 08-02 which is a request from Kendall-Weiss, LLP fora 5-.year residential real property tax abatement for various properties located on Mackey Court, Stewart Drive, Stadium Drive, and Brick Drive located in Lafayette Falls, Phase III, Section 3. Bob Mathia, Economic Development Assistant Director reviewed his December 5, 2007 report. He noted that Kendall-Weiss plans to construct sixteen (16) homes in Phase II, Section Three of the Lafayette Falls addition. Each home would have an estimated $10,217 abated over the five (5) years while paying $6,380 per home. Total taxes to be paid for the sixteen (16) homes is estimated to be $102,080. He noted that the petition meets the qualifications fora 5-year residential tax abatement pursuant to Section 2-77.1 Single Family Residential Construction of the South Bend Municipal Code. Derek Spier, AICP, of Abonmarche Consultants, LLC with office located at 750 Lincoln Way East in downtown South Bend made the formal presentation. He presented a 1- page map (copy attached). He noted that the sixteen (16) lots are located on the south side of Kern Road. Homes would run from 1,200 to 2,500 square feet, with the total project construction cost being $2,816.800. He noted that this is their 7th abatement request with 215 prior lots having been approved for abatement. Mr. Spier stated that tax abatement assists in the selling of the lots. Community and Economic Development Committee January 14, 2008 _ Page 3 In response to a question from Council Member White, Mr. Spier stated that the area marked "Future Sections" on the map are for future developments in the project and that there may be multiple phases. In response to a question from Dr. Varner, Mr. Spier stated that the loop-area along Stewart Drive on the map are neo-traditional design with rear alleys. Four (4) have been constructed to date on Stewart. There was no one from the public to speak in favor or in opposition to the Bill. Counci{ Member White made a motion, seconded by Council Member Puzzello, that Bill No. 08-02 be recommended favorably to Council. The motion passed. Bill No. 08-03: Declaratory Resolution fora 5-year Residential Real Property Tax Abatement For Brian & Alison Levey for property located at 918 N. St. Peter: Council Member Dieter called for a presentation on Bill No. 08-03 which is a request from Brian and Alison Levey for a five (5) year residential real property tax abatement request from 918 North Saint Peter Street located in the 4th Councilmanic District. Bob Mathia, Economic Development Assistant Director, reviewed his report dated December 3, 2007 (copy attached).He noted that the petitioners plan to construct a 2,200 square foot home with a 3-car garage. The estimated value of the home will be $325,000. Taxes to be paid over the 5-year period is $23,760.08, with taxes to be abated totaling $10,262.19. The petitioners meet the requirements fora 5-year abatement under Section 2-77.1 Single Family Residential Construction under the South Bend Municipal Code. Alison Levey, the petitioner, made the formal presentation. She stated that they are designing a traditional bungalow style home. Her husband is a professor at the University of Notre Dame, but they are too far down on the university's list, and are going forward on their own. They are currently renting a home on Angela. Professor Marty Wolfson commended the South Bend Common Council for providing full documentation on each Bill on their website. Dr. Varner stated that he also is please with the upgrades which have been made which are provided for informational purposes. He noted that the Office of the City Clerk has been instrumental in seeing that these upgrades are being made, and that the Clerk's staff is doing all of the input for the web for the Council. Community and Economic Development Committee January 14, 2008 Page 4 Council Member Puzzello made a motion, seconded by Council Member White that Bill No. 08-03 be recommended favorably to Council. The motion passed. Bill No. 08-04: Declaratory Resolution fora 6-Year Real Property Tax Abatement for Ryan Fire Protection, Inc. located at 3950 William Richardson Court Council Member Dieter called for a presentation on Bill No. 08-04 which is a request from Ryan Fire Protection, Inc. fora 6- year real property tax abatement for the property located at 3950 William Richardson Court. Bob Mathia, Economic Development Assistant Director, reviewed his report dated December 17, 2007 (copy attached). He noted that the petitioner intends to construct a 30,000 square foot building which will have an estimated cost of $1,103,650. Over the six (6) year period, the petitioner will pay $93,552 in taxes, with $132,786 being abated over this period of time. Fifteen (15) new full-time permanent jobs will be created in the first year who will have an estimated payroll of $904,000. Seventeen (17) existing, permanent, full-time jobs will be maintained which have an annual payroll of $1,160,000. Mr. Mathia stated that the project meets the qualifications fora 6-year real property tax abatement under Section 2-82 of the South Bend Municipal Code addressing "Industrial Development City-Wide". Jay Walters, a Site Selection Specialist, with Bingham Economic Development, located in Noblesville, Indiana made the formal presentation. He stated that the petitioner has three (3) facilities located in Indiana. The South Bend facility serves northern Indiana, Illinois, and Michigan. With the abatement they will be able to double their workforce. He noted that the facility will also have the opportunity for expansion up to an additional 50,000 square feet. Council Member White inquired about the response of the petitioner to question # 16 which inquires about full-time and part-time minority employees. Mr. Walters stated that they plan to work with Workforce Development and be a part of the state training program. They. are a union shop and will also work with those representatives. He added that he will provide additional information on minority recruitment. In response to a question from Council Member Puzzello, Mr. Walters stated that the petitioner is a leader in the engineering, design and construction of fire prevention systems, especially fire sprinkler systems throughout the country. Dr. Varner inquired about the percentage of abatement to which Mr. Mathia stated he utilizes the state law percentages. Community and Economic Development Committee January 14, 2008 Page 5 In response to a question from Council .President Rouse, Mr. Mathia noted that the petitioner got zero points in response to question # 16. Council Member Puzzello made a motion, seconded by Council Member White that Bill No. 08-04 be recommended favorably to Council. The motion passed. Council Member White added that she is also most interested in receiving the updates on the hiring procedures for new employees this evening. Mr. Walters stated that the petitioner will also provide data with their CF1 reports on this topic. Bill No. 08-06: Resolution Authorizing the Mayor to Submit to the Indiana Finance Authority an Application for a Site Assessment Grant Council Member Dieter called for a presentation on Bill No. 08-06 which is a request to authorize Mayor Luecke to submit to the Indiana Finance Authority an application for a site assessment grant in the amount of $92,386 for property located at 731 West Chippewa Avenue. Ann E. Kolata, Senior Redevelopment Specialist made the presentation. She apologized to the Council in not getting the resolution to them earlier. She noted that the application was prepared by Quality Environmental Professionals, Inc. and was submitted on behalf of the property owner. The grant has already been awarded. She provided a 1-page map of the area (copy attached). She noted that a separate appropriation ordinance will be the next step to be acted upon by the Council. She again apologized for the delay in the submission of the resolution. Joe Grable of 202 Lincoln Way East in Mishawaka noted that Indiana Land Trust is the prospective purchaser. They are a high tech recycling center which has been detailed earlier to the Council. Over $100,000 has been spent on environmental costs to date and that they are developing an action plan for further clean up. He noted that IDEM has stated that this is the largest clean up in the State of Indiana. Council President Rouse inquired about the Miami project. Mr. Grable stated that they have been involved in the grant application process for the past ten (10) months. He stated that it is a long, slow process. There was no one to speak in favor or in opposition to the Bill. Community and Economic Development Committee January 14, 2008 Page 6 Council Member White made a motion, seconded by Council Member Puzzello that Bill No. 08-06 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, Council Member Dieter adjourned the Committee meeting at 4:06 p.m. Respectful ubmitt \. Council Member Derek D. Dieter, Chairperson Community and Economic Development Committee Attachments