HomeMy WebLinkAbout02-27-12 Community & Economic Development CommitteeCOMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 27, 2012
Committee Members Present:
Henry Davis, Karen White, Gavin Ferlic
Citizen Members:
Zachary Raymond. Pat Crowley
Other Council Present:
Tim Scott, Valerie Schey, David Varner, Oliver Davis
Others Present:
Don Inks, Mayor Pete Buttigieg, Mike Schmuhl, Sherri Miller - Story; Kathleen Cekanski-
Farrand; Kevin Allen
Agenda: Bill No. 8 1 -11 Chase Tower
Bill No. 8 1 -11 — Appropriation for Garage Interest in the Chase Tower
Chairperson Henry Davis, Jr., began his committees hearing with three of four
Committee Member's present as well as both newly appointed citizen members Pat
Crowley and Zachary Raymond.
Chairperson Henry Davis acknowledged receipt of a request from the Mayor that this bill
be withdrawn. Nonetheless, Henry proceeded to recount some personal involvement
aimed at committing over 5 million dollars of public money combined with close to 14
million dollars pledged by a private investor to acquire and restore the Chase Tower
Bldg. in downtown South Bend. Henry dates his efforts to make this happen to last
September. He said while the building is currently 74% occupied it is in dire need of
rehabilitation citing serious problems with both the elevators and parking garage. He
noted while the receiver of the property had originally set the value of the building at 6.5
million dollars, a judge has se the value at 8.5 million, given the fact that he saw an
investor ready, willing, and able to acquire the building if the city would commit 5
million toward repairs, why was he rejected. This is the question he asked the Mayor.
Mayor Pete Buttigieg said the bill before the Council was moot because the potential
investor had stepped away. The Mayor went on to say several potential investors had
called his office asking for information on the building. Unfortunately his office could
only refer inquiries to the receiver who until recently controlled access to all information.
The Mayor added that the building had recently been listed meaning information could be
asked of the listing broker. The Mayor added he wanted to keep the Chase viable. He
was willing to use any incentives available, local, state, or federal to partner with a
legitimate qualified buyer as long as it was in the best interest of the taxpayers. He also
said in that safety and code violations had been found by the SBFD and Code
Enforcement he was asking the court to require the current owner to insure fixes.
Councilmember Henry Davis then allowed citizen members to comment. Pat Crowley
cautioned the City taking an equity position in the building which would open the
potential of liability. Zach Raymond wanted to know more about the legitimacy of
parties who had contacted the Mayor.
The Mayor repeated that until recently when the building was listed for sale information
to provide potential investors was not available. Now, inquiries can be forwarded to and
evaluated by the listing broker.
Councilmember Varner said if safety violations have been found that in itself is in the
interest of public safety should compel the court to order the owners fix the faults.
Councilmember Oliver Davis asked for a list of problems found and the Mayor said that
would be provided.
Councilmember Henry Davis asked if the Mayor had attempted to resurrect the initial
investment proposal. The Mayor said he had not and had not been contacted by that
investor.
Councilmember Henry Davis summed up the discussion expressing dismay why the
original investor was rebuffed and not encouraged to put a new proposal together.
Councilmember Oliver Davis agreed saying a letter of appreciation/apology in this case
should have been appropriate now and in the future.
At that Karen White moved to accept the request to strike the bill. Gavin Ferlic
seconded. All but Henry Davis, Jr., supported the strike referral to full Council.
Under miscellaneous, Henry asked if Don Inks, Finance Director of the Development
Office was prepared to report current city owned property currently listed for sale with
whom, the listing terms, and length of listing contract. Don Inks provided a list of
properties currently listed (attached.)
Councilmember Schey expressed a preference for developing downtown retail.
Councilmember White said private entities as opposed to non - profits were preferred to
expand the tax base.
Councilmember Varner asked about future contractually specified dates relative to the
future of the Football Hall of Fame. The Mayor said the City needed to declare its
intentions to the National Football Foundation by April 1 and a joint agreement was due
by October 1St
Chairperson Henry Davis, Jr., before adjourning asked Don Inks if the City pays
management fees for its properties and also suggested the brokers hired by the City were
not performing adequately.
To this Mr. Inks generally disagreed.
There being no further business to come before the Committee at this time, Chairperson,
Henry Davis, Jr., adjourned the meeting at 5:23 p.m.
Res ectfull mitted,
Henry Davis, Jr., Chairperson
Community & Economic Development Committee