HomeMy WebLinkAbout05-12-08 Community & Economic Development CommitteeCOMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE PAGE #1 OF 2
The May 12, 2008 meeting of the Community and Economic Development Committee of the
South Bend Common Council was called to order by Derek Dieter, Chairperson, Community and
Economic Development Committee at 3:34 p.m. in the Council's Informal Meeting Room.
Persons in attendance included Council Member's Tim Rouse, Oliver Davis, Tom LaFountain, AI
"Buddy" Kirsits, Martha Lewis, Bob Matia, Catherine Fanello, Mayor Steve Luecke, Jamie Loo,
Rita Kopala, Kathleen Cekanski-Farrand, Don Inks, Robert Jagger, Donna Chamblee, John
Voorde, Mark Smith, Catherine Andres
Committee Members present, Derek D. Dieter, Chairperson; Ann Puzzello, Member; Karen
White, Member
BILL N0.08-44
5 Year Real Property Tax Abatement for 1401 S. Main St. -Old Fort Building Supply
Called upon by Chairman Dieter, Bob Mathia gave Community & Economic Development's
summary of the petition for abatement. He explained this was the second of a 3 phase
development project by which Old Fort proposed to build a 13,000 square foot warehouse for
their products at a cost of $325,000. The project would create 2 new jobs and help retain 20
existing. In financial terms, the project would generate $55,735 in taxes annually after
abatement. Don Inks indicated Old Fort was also pursuing a UEZ tax credit package.
Responding to a question from T. Rouse, Inks indicated if the UEZ application were granted the
abatement would be withdrawn. Councilmember White made a motion to recommend this bill
favorably to full Council. Councilmember Puuello seconded the motion which carried.
BILL N0.08-45
5 Year Residential Abatement for the Villas at Lake Blackthorn Section I -Cooreman Real Estate
BILL N0.08-46
5 Year Residential Abatement for the Villas at Lake Blackthorn Section I I -Cooreman Real
Estate
The Community & Economic Development committee agreed to combine the hearing for both
abatement petitions. Bob Mathia explained the project review before introducing Donna
Chamblee of the Cooreman Real Estate Group who then proceeded to explain the background of
the project necessitating what amount to an extension to the abatement eligibility for the Villas
project. In Section I she explained 50 lots had been developed over the past 5 years. However
51 lots hoped to be developed would be hindered if the abatement scheduled to expire in
November were not renewed. Sec II due to expire in July faced a similar impediment. She went
on to indicate that currently the vacant lots generated only $9,000 per year in taxes. Fully
developed the project would generate nearly a quarter million dollars annually. Chairman Dieter
noted that he owns a home in the project; but has filed a conflict disclosure. Discussion among
CouncilmembePs ensued regarding the Council's position on all residential abatement. Given
prior discussions relative to imposing a moratorium on abatements the fate of these petitions
seemed to hand in the balance. Mayor Luecke suggested the Council may want to pass the
designating resolution which would affirm the city's support of the project. Once additional data
was available relative to the effects of HEA 1001, the Council could more judiciously consider its
residential abatement policy. Rouse, White and Varner concurred. Inks said members to assess
a financial impact could be available in a week. Kirsits, Rouse, and Varner indicated Cooreman
should not be left hanging and that the Council should indicate a sign of "good faith." To that end,
on Puzzello's motion and White's second, both bills were sent favorably to Council.
MISCELLANEOUS
PAGE #2 OF 2
CouncilmembePs Rouse and White urged the need for residential abatement policy review. To
that end on Councilmember White's motion and Catherine Andres second, it was decided policy
review should precede any residential abatement consideration.
There being no further business to come before the Committee, Chairperson Derek D. Dieter
adjourned the meeting at 4:21 p.m.
espectfully ub ' ted,
Derek D. Dieter, Chairperson
Community and Economic Development Committee