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HomeMy WebLinkAbout03-07-05 Community & Economic Development Community and Economic Development Committee 2005 South Bend Common Council The March 7, 2005, meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Ann Pi weello at 3:06 p.m. in the Council Informal Meeting Room. Persons in attendance included: Council Member Puzzello, Citizen Member Martha Lewis, Sharon Kendall, Executive Director of the Department of Community and Economic Development; Don Inks, Ann Kolata, Andy Laurent, Tedd Schaffer, Rita Kopala, Deputy City Clerk Janice Talboom and Kathleen Cekanski-Farrand, Council Attorney. Council Member Puzzello noted that she called this meeting so that discussion could take place on compliance procedures with the Department of Local Government Finance (DLGF). She noted that the Office of the City Clerk has brought to her their concerns regarding timeliness. Deputy City Clerk Janice Talboom stated that she speaks to Belinda in the Auditor's Office on a regular basis with regard to CF-1's. Sixty(60)days after the year end is one deadline. She noted that she speaks with Tedd Schaffer in the Department of Community and Economic Development with regard to compliance issues. If it is determined by the administration that there may be a compliance concern, then those abatements are referred to the Council's Community and Economic Development Committee. Mr Schaffer noted that there are other deadlines of March 1st and May 15th. It appears that some forms may have been sent by the Auditor's Office to the state which were not signed. Sharon Kendall, Executive Director of the Department of Community and Economic Development noted that with the change of administration at the state level, that there may be new procedures which are being implemented. She stated that since their department has a data base that they should take the responsibility of follow-up. Ms. Kendall suggested that Ms. Talboom, and Mr. Schaffer meet with Belinda and discuss this matter further. The Council Attorney suggested that in keeping with Ms. Kendall's suggestion, that perhaps a form letter be prepared by the Department of Community & Economic Development after a confirmatory resolution is approved by the Council on a requested abatement. It would be sent to the petitioner and would highlight the next steps which are to take place and would note the requirements of the CF-1 filings. Copies would be routed to the Office of the City Clerk and the Auditor. Mr. Inks stated that discussion needs to take place by the committee with regard to what constitutes compliance. He noted that when the"scale of a project" changes that that may affect compliance. The Council Attorney suggested that the focus should also focus on job creation and expenditures and if there is a deviation of more than 25% in either category, that in those instances the matters would be automatically referred to the Council's Community and Economic Development Committee. March 7,2005 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 1- Discussion then took place on these suggestions, with favorably comments being made. It was also noted that Beth Leonard is preparing this year's Tax Abatement Annual Report which is due on March 31st. Council Member Puzzello noted that this Committee will meet on March 14th to review the companies from 2004 who were initially determined by the Administration not to be in compliance. The Council Attorney noted that seven (7) entities are involved and that each will be identified by name when formal action is taken at the March 14th committee meeting. Ms. Kendall stated that the Administration is tracking pending legislation with the Indiana General Assembly. She noted that "it would be terrible" if abatements would be automatic, as one of the pending bills is proposing. She added that Mayor Luecke and Gary Gilot will be going to the IAC meeting next week. Council Member Puzzello stated that she may be proposing in the near future an amendment to the current tax abatement regulations which would require the filing of a map showing the subject property in relation to the surrounding neighborhood with cross-streets being identified. She added that Council Member Rouse has also expressed a desire for such information as it pertains to residential tax abatements. Mr. Schaffer noted in response to comments from the Council Attorney that an overall map of the city could be prepared for the Council which shows all residentially distressed properties. Ann Kolata then presented information under miscellaneous matters. She noted that the city sold the Colfax Garage to TRANSPO for $4 million. There will be a lease back arrangement from TRANSPO for a 20-year period at $200,000 per year. At the end of the 20-years, the city has the option of paying $1 for the property. The City will complete the renovations and improvements and will use the parking revenues to fund the sinking fund for repairs. If there is anything left, it will be divided 50150 between the city and TRANSPO. She noted that from the public standpoint, there will be no real difference, but the city will get $ 4 million. Ms. Kolata stated that TRANSPO to promote the trolleys and parking garages. Mr. Inks stated that this is a similar arrangement as the one dealing with Leighton Plaza. Ms. Kolata then noted that they are in the process of selling the old stamping plant consisting of 39 acres for $1 to TRANSPO. TRANSPO will spend $4 million on demolition. Awarding of the demolition contract is projected for July with agreements being worked on currently. There will be a lease back at $200,000 per year for 20-years. TRANSPO would like to use ten (10) acres for a maintenance building with the remaining 29 acres then being sold for industrial development. Andy Laurent stated that since TRANSPO have monies for Amtrak and the garage, they did not want to not be able to use the $8 million,which would have been lost without these March 7,2005 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 2- arrangements. Environmental clean-up as needed will also take place. Actual demolition will probably not begin before October. The arrangement appeared to be a win-win for all parties. Mr. Inks noted that the first $4 million is included in the capital budget pending before the Council. Action after that would require the Administration coming back to the Council. Council Member Puzzello thanked everyone for coming to the meeting. There being no further business to come before the Committee, Council Member Puzzello adjourned the meeting at 3:50 p.m. Resp- ly submitte, / / 10/ 1 oun ember A nn P 'ello, Chairperson Community and Economic Development Committee KCF:kmf Attachments: SBMC 2-76--2-85 Table of Contents for Tax Abatement Procedures Indiana Code 6-1.1-12.1-5-6 --9 Compliance provisions March 7,2005 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 3-