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HomeMy WebLinkAbout10-22-18 Community Investment 1,7 PEACE OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK COMMUNITY INVESTMENT OCTOBER 22, 2018 3:30 P.M. Committee Members Present: Gavin Ferlic, Sharon L. McBride Committee Members Absent: Regina Williams-Preston, Oliver Davis Other Council Present: Tim Scott,John Voorde, Karen White, Jake Teshka (late), Jo M. Broden (late) Other Council Absent: None Others Present: Kareemah Fowler, Bianca Tirado, Graham Sparks, Bob Palmer Presenters: Pam Meyer, Suzanna Fritzberg, Austin Gammage, Vandna Patel, Dan Buckenmeyer, Angelina Billo, James Mueller, Rob Winks, Debra Futa, Phil Faccenda, Rose Meissner Agenda: Bill No. 18-62- Approval of Grant for CDBG- Disaster . Relief II Funds Bill No. 18-63- Approval of Grant for Lead Hazard Reduction Demonstration and Healthy Homes Supplemental Funds Bill No. 18-64-Nilkanth, LLC Designating Tax Abatement Bill No. 18-66- South Bend Ethanol, LLC Designating Tax Abatement Update: St. Joseph County Public Library(15 minutes) Committee Chair Gavin Ferlic called to order the Community Investment Committee meeting at 3:30 p.m. He introduced members of the Committee and announced the lack of a quorum,rending the Committee incapable of taking official action on legislation. He then gave the floor to the presenters. Bill No. 18-62- Approval of Grant for CDBG- Disaster Relief II Funds Bill No. 18-63- Approval of Grant for Lead Hazard Reduction Demonstration and Healthy Homes Supplemental Funds INTEGRITYI SERVICE1 ACCESSIBILITY --- JENNIFER M.COFFMAN ---- - BIANC.4 L.TIRADO JOSEPH R.MOLNAR - CHIEF DEPUTY/DIRECTOR OF OPERATIONS DEPUTY/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Blvd.I South Bend,Indiana 46601 I p 574.235.9221 I f 574.235.9173 I www.southbendin.gov CITY OF SOUTH BEND 1 OFFICE OF THE CLERK Pam Meyer, Director of Neighborhood Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building, stated, These two (2)together are the total of a grant received by the City of South Bend from the State for lead work in homes in the City of South Bend. It is approximately$672,857 split by the State into these two (2) funds. Together they make one (1) grant. The resolutions are required as part of the grant agreement we are signing and giving back to the State. It says we understand that we have received the reward and we will administer this program. It will provide us funds for approximately forty (40)homes and, as a lot of the public information has covered,they are homes that have primarily been built before 1978 and the priority is for homes with children six(6) years old or under. Committee Chair Ferlic opened the floor to questions and comments from Committee and Council Members. Councilmember Karen White stated, We are really appreciative of receiving the grants and the work Community Investment has done. You mentioned you will only support forty (40) homes. Do you have a sense of the remaining homes? Those numbers, and how those may be addressed? Ms. Meyer replied, I don't know if we have that number. Suzanna Fritzberg, Deputy Chief of Staff to the Mayor with offices located on the 14th floor of the County-City Building, replied, About eighty percent (80%)of our housing was built before 1980. Maybe sixteen percent (16%) of that was built before 1960 and I want to say we have 45,000 housing units across the City. So someone could do the math but it is an excellent question raised. Truly, we may never get to the bottom with this. This is a good resource and we will make sure it has the most effect it can but really we need to be much smarter about teaching people how to live safely with lead rather than rely on funding to get it out of their homes. Councilmember Jo M. Broden arrived at the meeting at 3:34 p.m. Councilmember Tim Scott asked, Could you share the process of how someone applies to this? Ms. Meyer replied, Generally,right now, you could come to our office and get a paper application. We will then send that downstate. You could also apply directly to the State. You can get applications through the St. Joseph County Health Department and there are some community partners that have applications to assist people with applying online. The State does the applications first (Pt) and then they send them back out to the separate recipients. At that point, we are in communication to let people know we have received an application from the State but that we are preparing an actual application package that will go out to each of the applicants within the next four(4) to six (6) weeks. That will be the income qualifications and that is similar to our other Federal programs. We then send those downstate for them to approve and they then send it back to us telling us whether or not it is ok to proceed. Right now we have thirteen(13)applications and it is a combination of homeowners and renters and I told them they will get this packet sometime before the end of the year but that work and activity will not happen until 2019. EXCELLENCE 1 ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building;227 W.Jefferson BvldSouth Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 2 ®CITY OF SOUTH BEND OFFICE OF THE CLERK Councilmember Scott followed up,Thank you. The lead issue is quite large in the first(1St)District so I appreciate seeing all the work and funding that goes to it. Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor of or in opposition to these two (2) bills. There were none. Due to a lack of quorum, Bill Nos. 18-62 and 18-63 were sent to the full Council with no recommendation. Bill No. 18-64-Nilkanth, LLC Designating Tax Abatement Austin Gammage, Business Development Manager for the Department of Community Investment with offices located on the 14th floor of the County-City Building, stated, I am speaking on behalf of Nilkanth LLC and their proposal for a Dairy Queen Grill 'N Chill at 4836 Western Avenue. That is right between the Burger King and Key Bank, I believe. We are really excited about this project and are suggesting a seven (7) year real estate property phase-in tax abatement. We are excited because it will be bringing more jobs to the west side. Over $1.6 million will be invested between the land,property and equipment. Currently, the parcel is not generating any taxes. After the investment and build out, in about a ten (10) year span, we are looking at $126,000 paid in taxes. Just a few other highlights about the project (referencing a slide in a presentation which is available in the City Clerk's Office), the parcel is about one (1) acre and the building will be approximately 3,000 square feet. They are looking to break ground as soon as possible and it will take about three (3) months to build, weather p-linitting. Again, there is $1.1 million invested in the land and about$500,000 invested in machinery so that is over$1.6 million in investment. This slide shows the breakdown in investment. Again, there are no taxes being generated at this time. You will see the amount abated there but there will be over$60,000 in taxes paid on this property. Again, we are excited about the job creation. We are looking at twenty (20) full-time jobs and twenty-five(25)part-time.This will be open year-round and in the summer time that number may be even higher. Vandna Patel, 10100 Pemburry Drive, Granger, IN, stated, Austin has covered pretty much everything. We are ready to break ground. We already have a small Dairy Queen with a walk-up window that was built in the 1950s and it still exists. I have a lot of people that have approached me for a job but being a very small store, I can only accommodate five(5)to seven(7)people and that is pretty much it. The amount of applications and inquiries I've gotten, I have offered jobs at other locations but transportation has been a problem. So putting it here would put it within walking distance for a lot of these folks, making it easier for them. Committee Chair Ferlic opened the floor to questions or comments from Committee and Council Members. Committee Chair Ferlic stated, I know retail typically falls outside of our tax abatements. What makes this unique? Councilmember Jake Teshka arrived at the meeting at 3:40 p.m. Mr. Gammage replied, The opportunity for development along Western Avenue is huge. I know we had the Martin Luther King Jr. Center two (2) years ago but this is an opportunity to increase EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD 574.235.5567 www.southbendin.gov 3 CITY OF SOUTH BEND OFFICE OF THE CLERK this small footprint that is already there. It is going to be new development and it will be a very nice restaurant. I think it will be exciting and that people will have a lot of pride in working at this location. Again, it will also eliminate the barrier of transportation of a lot of these folks to get to work. Ms. Patel employs a lot of high school students and it is one (1) of their very first (1St)job opportunities. We are very excited about the location and hopefully it will spur other development. Councilmember White stated, When we look at tax abatements, we did have Martin's but this is somewhat unique since I have been on the Council. Also, I understand and support having a Dairy Queen on that side of the community because what we have now, I know you will probably close that facility down so moving down further and having the space to do so makes good sense but the tax abatement is something different for us for retail. So,what would happen if we would not grant this tax abatement? Ms. Patel replied, Well, it will make it difficult, since it is a bigger investment, to move forward in the timeframe we have. We know the construction costs are high and getting higher going into the critical months of construction. I've gotten one (1) bid and it is already higher than would be expected. So the cost is going to go up more than what we have anticipated so this will help tremendously. It would make it more difficult to move forward without it. Councilmember Scott asked, Besides Martin's, has there been any other new development on Western Avenue? Dan Buckenmeyer, Director of Business Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building, stated, The few things are the redevelopment of the old Martin's that is now the laser-tag where the Linden Grill is. That was fairly recent. But new construction-wise, no. This is unique in new construction. Councilmember Jo M. Broden stated, I have a couple questions. Since this has not been considered before, the tax abatement relative to retail, why has that been the case? And what will be the parameters moving forward in terms of future tax abatements relative to retail? Second (2°1), on the scorecard for this particular application there were eighty-four (84) points awarded for donations to a municipal facility,Friends of Granger Paths, I don't know if that qualifies as a South Bend Municipal facility and maybe you could clarify that. Mr. Gammage replied, As we looked at the ordinance, it didn't know that we would not be able to grant a tax abatement for retail, especially a franchise. So it is within the law, if you will. Angelina Billo, Business Development Manager for the Department of Community Investment with offices located on the 14th floor of the County-City Building, stated, With this application, they actually qualified for the maximum eight(8) years total but we gave them seven(7) years. James Mueller, Executive Director for the Department of Community Investment with offices located on the 14th floor of the County-City Building, stated, We can assure Council you won't be seeing a rush of retail tax abatements in the future. As we have talked earlier, the compelling narrative here was that there was an equity play as well as an active corridor play that we are trying to get to. Also the transportation issue was huge. If there are other compelling cases like that, you may see that,but generally we would stick to that policy in the past. I think that is out of fairness. There hasn't been this kind of construction there in a long time. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 4 •CITY OF SOUTH BEND OFFICE OF THE CLERK Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor of or in opposition to this bill. Sue Kesim,4022 Kennedy Drive, stated, I would like to point out that last year, Council gave$117 million in abatements. I would also like to know if this is the same Patel that has done the Marriot downtown and, if so, that was already given millions of dollars. I think Dairy Queen's franchises make millions of dollars. I would just like to point out you've given an awful lot of abatements. Committee Chair Ferlic gave the floor to the petitioner for a rebuttal. Ms. Patel replied,No,we are not the same Patel's. We are not even related, we only know we live in the same town. That is how we know each other and there is no relation whatsoever. This is our first (is) tax abatement for my company, or me as an owner. Dairy Queen as a franchise would not benefit from this if the tax abatement is granted because whatever my agreement with Dairy Queen is, I have to pay them. Dairy Queen as a franchise would not benefit from this because this is individually owned. Councilmember John Voorde stated, We have given tax abatements to projects that end up having retail space in them, so, there is that. Due to a lack of quorum, Bill No. 18-64 was sent to the full Council with no recommendation. Bill No. 18-66- South Bend Ethanol, LLC Designating Tax Abatement Mr. Buckenmeyer stated, This one (1) is exciting as it is a significant expansion at South Bend Ethanol. If you have been following the history you will know they went through some tough times in years past. They were recently purchased by Mercuria and are looking at a substantial retooling and expansion to expand their production capabilities. We are looking at a$30 million investment in new capital equipment. This is a personal property tax abatement and is not real estate based. It will expand the manufacturing capacity from sixty-five(65)million gallons to one hundred (100) million gallons per year. Some of the side benefits include a great ripple effect in our region. An additional twelve and a half(12.5) million bushels of corn will be purchased from local farmers from around the region in addition to what is already trucked in there on a daily basis. All the other ripple effects, they anticipate about $140 million of direct local economic benefit. Sixty-six (66) jobs will be retained and five(5) more will be added over the next two (2) years. The bottom line here is even after the abatement,they will contribute over$8 million in taxes over the next ten(10) years. They are a substantial contributor and I think we are well justified in providing a little bit of support to help them invest in our community. Rob Winks, 50946 Hawthorne Meadow Drive, South Bend, IN, stated, This project is basically a continuation of what Noble had started. Noble basically came in and mandated the place and kept it running at sixty-five (65) million. Mercuria bought it through a distressed asset sale and now is taking the volume up to the one hundred (100) million level and we need to basically go back and the most important part is reliability. Boilers needed to be replaced and that is the biggest problem we have. We are having to go out there and replace them at $10 million. We have to also change all the permutation tanks because we can only fill those up to sixty percent(60%)due to structural integrity issues. We analyzed these problems to get this process manufactured. In able to get to EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD 574.235.5567 www.southbendin.gov 5 CITY OF SOUTH BEND OFFICE OF THE CLERK one hundred (100) million, we need to do some basic starting projects. At the end of this whole process, we are actually wanting to add more capacity for our DVG. That is the solid portion we have left after grinding up an ear of corn and turning it into ethanol. DVG is actually sold overseas. We create very good DVG that is used for export. The only problem is we transport it from the State, send it to some other state and then they export it to the rest of the world. We are actually going to invest in a containerized loading facility here and will be able to ship directly out of South Bend. That means we will have international sales from the standpoint of the DVG. That is quite significant. Committee Chair Ferlic opened the floor to questions and comments from Committee and Council Members. Councilmember Tim Scott asked, What will the pay range of those five(5) new jobs be? Mr. Winks replied, Those will be in the Grains Department partment a n d they will be in the twenty to twenty-five dollar an hour($20 -$25/hr.) level. Councilmember Scott followed up, Are you shipping out by railcar? Mr. Winks replied, We are currently railcar and also by truck. Councilmember Scott followed up, And what percentage is the DVG of the revenue? Mr. Winks replied, The DVG itself accounts for twenty-two percent(22%) of the overall revenue. Councilmember Scott stated, That is good for scrap. It is always good to repurpose scrap. Councilmember Jake Teshka asked, At what point will this break even? Mr. Buckenmeyer replied, The amount being abated is only$483,000. Councilmember Teshka followed up, So my understanding of this is we are gaining ground on day one(1), right? Ms. Billo replied,With the current taxes,they paid over$800,000 of taxes for 2017. So this is only going to be abated for the new assessed value but the company will continue paying taxes on all existing tax value. Councilmember Teshka then asked, And what if this tax abatement was not granted? What would that do to your corporation? Mr. Winks replied, Actually, that would increase the cost of the overall project but it would not stop us from going forward. This is a two (2) year project so we have to make the decision about economics and the choice was to go forward regardless of receiving this abatement. Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor of or in opposition to this legislation. Jim Bognar, 807 W.Washington Street, South Bend,IN,stated, I'm not so much speaking in favor, though I think this is good,but I would like to ask a question. Are you folks intending on applying for the opportunity zone tax incentive? I do believe your area falls into that and that is a significant tax savings and I was just curious if that was a part of your plans. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 1574.235.9173 TTD574.235.5567 www.southbendin.gov 6 •CITY OF SOUTH BEND OFFICE OF THE CLERK Committee Chair Ferlic gave the floor back to the petitioner. Mr. Winks stated, At this point in time, we have no indication from our Tax Department if we were going to take advantage of that or not. We would need to go back and look at it and decide if we should or should not take advantage of it. Thank you for your help. Due to a lack of quorum, Bill No. 18-66 was sent to the full Council with no recommendation. Update: St.Joseph County Public Library (15 minutes) Debra Futa, Executive Director of the St. Joseph County Public Library with offices located at 304 S. Main Street, South Bend, IN, stated, I want to begin by talking about the role of the public library these days (referencing a slide in a presentation which is available in the City Clerk's Office). I think it is natural that when you think of books you think of the public library. Digital, paper and audio will always be a big part of what we offer and that will never go away, but we also serve in a lot of other ways. As an economic development agent, we address literacy, technology skills, small business development and quality of life. As a digital literacy provider and trainer, we are helping people find and use digital content. Our digital lab helps people turn their creative ideas into a reality and our community uses our connectivity to help them live their lives. The Learning Center is really about learning for a lifetime. We are involved with everything from helping parents interact with their young children to providing training, classes and information programs. One(1)of the most recent programs is how to identify fake news. We have Spanish language classes that are full, we do sign language classes, yoga classes and so much more. And as a commons, it is really a place for people to meet and discuss and to come together. That is probably one (1) of the most important things we do, right now, where everyone is welcome. She continued, I wanted to also talk about usage. When people think nobody uses libraries anymore, these (referencing a slide in the presentation) are our 2017 numbers and I wanted to do this just really quickly. 114,000 people have a library card. Of those, 68,000 live in South Bend. Our fast Wi-Fi means people can come and do all kinds of things. That is a piece of the digital inclusion that we partnered with the City on for digital inclusion sites. 423,000 people used our Wi-Fi last year and those were from devices they were bringing in. In addition to that, 178,000 computer hours were used where people were coming in and using a library computer to do something. We had 1,070 programs and 3,200 groups met in the library in 2017 and that is really where we need the space. She went on, Library programs begin almost from birth. We provide 'Talk with the Baby' programs and you can see the pike on the upper right(referencing a slide in the presentation),there were four hundred and thirteen(413)story hours last year that 14,000 preschool children attended. We included the Local Feeding Kids, Growing Minds because we wanted to say we don't just serve people at the Main Branch of the Library. Feeding Kids, Growing Minds is a program we recently piloted at the LaSalle branch. We have kids who come in after school and stay until we close. So these kids are staying until 6:00 p.m. or 8:00 p.m. and they don't eat. They are hungry. Hungry kids can't learn and they act out. So what we've done is partner with a local hotel where they drop off healthy snacks after school on their way to the airport and it is working.We are going to turn that into a program that works at other locations as well. This was the pilot. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 7 •CITY OF SOUTH BEND OFFICE OF THE CLERK She continued, This is showing you(referencing a slide in the presentation) that it doesn't matter where someone lives in the City, they are using the Main Branch Library. This breaks it down by Councilmanic District. So, in Councilmember Scott's district, thirty-nine percent (39%) of the people registered in his district are using Main library. They also use other locations but no matter where people live in the City, they are going to use Main. It is also showing that people move around the City. If you use one(1)branch,you may also use another branch on errands or whatever they may be doing. Main Library is our destination location and it serves a different function than our branches do. It was built in 1960 and renovated in 1989 and it was never built to host the programs, training and gatherings that we are doing these days. I also wanted to say that in 2007 we made a deliberate decision to invest in the neighborhoods. We invested$15 million in that area. We added square footage and redid four (4) City branches as well as added two (2) new City branches. It was always our intent to return to a Main Library project when those were paid off in 2019. She went on, We spent a year asking the community what they wanted in their Main Library and how they wanted to use it. We did interviews, focus groups, surveys and stakeholder meetings. The data we got back was that people wanted an inviting and intuitive building that was welcoming. They wanted designated areas for activity as well as quiet. The biggest complaint is that libraries are not quiet anymore. We love that but we also need quiet spaces back. People are also asking for outdoor space. We have also been asked for engaging spaces for young children and teens to really activate them. Accessible meeting rooms were also asked for to accommodate group collaboration of all kinds of things. You can find the full report on our website if you would like to under the `About' tab but this is what it showed. In the first (1St) part of 2018 we hired Robert A.M. Stern Architects, or RAMSA, to really work on a Master Plan concept and come up with a vision with the way Library block can function in a downtown. This was a partnership between the City, the Community Foundation and the Library. We chose RAMSA because they have some outstanding experience in library design. She continued, I would now like to go through the concepts of what we are thinking about for this new plan. We want to imagine what it could be. The first (1St) one (1) we want to show you is children spaces. So the major photograph on the right (referencing a slide in the presentation) is really for toddlers and is designed for crawling space. You can see it has a small wall to keep kids safe but it also lets the kids do a lot of manipulatives that are along the back wall. It is colorful. There is sit on the ground play space. One (1) of the things we are finding is that parents need a place to come together, too. So while their kids are involved, the parents are talking and getting information. When we asked our teens about what they thought of the Main Library they said 'What teen space in the Main Library?' So what we want to give them is some hangout space, some creative space and some space to have some really cool technology. This(referencing a slide in the presentation)is what it might look like.We also have some 3D printers that are being heavily used but they are not in the teen space. We also talked about a community living room or commons and this (referencing a photo on a slide in the presentation) is kind of what we mean. Again, this is a RAMSA design and it is made for people to gather, be together and talk. If you come into the Main Library now, we have a small space that does that and does it really well. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601,p 574.235.9221 (574.235.9173 TTD 574.235.5567 www.southbendin.gov 8 CITY OF SOUTH BEND OFFICE OF THE CLERK She went on, We do a lot with workforce development because we are teaching people how do make resumes and how to apply for jobs online. Most of the job applications are online these days. We support small business with all of our small business services.You could really start a business at the library with all the support people have, and people do. Finally, we want an outdoor space. The photo you see here (referencing a photo on a slide in the presentation) is the National Public Library which is also a RAMSA design. We are looking for a secure courtyard where we could do all kinds of things. This year when we rolled out the summer reading kick-off in our parking lot we had eight hundred(800)people. Last year seven hundred people came so that is growing. Also, last year with the eclipse, we had five hundred (500) people come to the parking lot and we had an eclipse party in the parking lot. We would love to have more outside space to be able to also hold events. So, here (referencing a rendering on a slide in the presentation) is the big plan. This is the RAMSA concept we have been working with and you will see the current Main Library looks pretty much like it does right now except for that wall of windows along the east side. What this doesn't show you is that we are doing a complete renovation of the existing building to get everything on the right floor and in the right place. You'll see two (2) connectors which will be digital technology space. That will be open to the street with its own separate entrance and can do programs before or after hours. Then the new section will really be a community learning center. We will be able to do all kinds of training, collaboration, meetings and events there, things we don't have the spaces for. We turn people down all the time for meeting spaces because we just don't have the space. She continued, We think this will be about a$38 million project in scope and we see it as a unique opportunity to create a transformational library that will serve this community for generations to come. It has become a possibility only through the idea of partnerships. The Community Foundation is strongly with us.We think the momentum in the City is unparalleled. In my lifetime, I've never seen anything like what is going on in the City right now. We are talking about a library for generations to come. We really think public libraries are needed,perhaps now,more than they ever were. They are just needed in different ways. The only reason we exist is to make people's lives better through education, learning, technology and bringing our community together. Phil Faccenda, Barnes & Thornburg with offices located at 100 N. Main Street, South Bend, IN, stated, We serve as bond counsel to the Library. The Library is embarking on, as Deb mentioned, a$38 million project. The new facility will run somewhere in the neighborhood of$15 million to $20 million. The renovations of the Library, the new courtyard and other improvements will run roughly about$18 million additional.The Library currently has a bond issue that is rolling off next year in 2019 and they are approving, currently through their Board as well as the County Council, the Library's budget and their subsequent bonds.The County Council has approved this$5 million bond issue so they will be moving ahead and issuing that yet this year. It is contemplated that they would issue a much larger bond next year, as much as $15 million, in order to finance the portion of the overall project the Library will be paying for. You may ask why we are before the City and it is because there are currently negotiations going on between the City, the Library and the Community Foundation on financing the remainder of the project. The Community Foundation has pledged up to $10 million as equity contribution. They see this project as transformational for our community. We are currently negotiating with the City to finance the remainder of it. The original request was $10 million and we do not believe that will be the final number, but we are EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 9 CITY OFSOUTH BEND OFFICE OF THE CLERK currently negotiating that. We are talking about it being a possible TIF finance. If that is the case, it is contemplated that the City would move ahead at this time and be brought before the Council for approval. If it is a TIF financing, it is contemplated that the bonds would not be issued for a few years as we know there are other TIF obligations the City is undertaking. That would allow for this financing to be weaved into the other obligations the City has outstanding. One (1) last thing is, and we mentioned this at the County Council, the existing bond issue that is rolling off for the Library, the 2017 debt service levy would be the highest this new level will be at. Both of these bonds will not exceed the 2017 debt service levy. Rose Meissner, President of the St. Joseph County Community Foundation with offices located at 205 W. Jefferson Boulevard, South Bend, IN, stated, I just want to say that this is a conversation that I started having with Deb over two (2) years ago. The Community Foundation knows that every word she described in teens of the role the Main branch is playing is true. We've been a long-time fan of the library and few organizations have as broad a mission as the Library and I would argue one (1) of those is the Community Foundation. So we see the need for this. We dare to dream a little bigger than what would normally be produced by tax dollars alone. The Community Foundation doesn't have$10 million to hand over to this project but we are committed to raise the money on behalf of the Library, provided it comes together with the scale and quality that we are looking at right now. Committee Chair Ferlic opened the floor to questions and comments from Committee and Council Members. Councilmember Scott asked, How many jobs will this create? Have you done any impact studies on how this would increase membership? Ms. Futa replied, I think we see ourselves as meeting the needs of the new downtown because of all the energy going into all the spaces downtown. I don't know if we see job creation. We are dealing with the fiscal curb like everyone else is. With no further business, Committee Chair Ferlic adjourned the Community Investment Committee meeting at 4:14 p.m. Respectfully Submitted, Gavin Ferlic, Committee Chair EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 I I D574.235.5567 www.southbendin.gov 10