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HomeMy WebLinkAbout02/12/07 Community and Economic Development Committee Minutes~~ .: .a,-~ ~~ Community and Economic Development Committee ~OQ7 aauth Beni Camm~n ou~~~~ The February ~, ~g~~ meeting of the Cornrnunity and ~conon~ic Development Committee of the South Bend Corn~non Council was called to order by its Chairperson, Council Member Derek ~. Dieter at ~:g p~n~. in the Council's Informal Meeting Poom. Persons in attendance included Council Members Pfeifer, 1larner, Kupa, ~irsits, Rouse, Dieter, UUhite and Puz~ello; Citizen lUlember Phil Panzica, Citizen Member Martin 1lvolfon, City Controller llll. Catherine Fanello, Don Inks, Martha Lewis, Bill Schalliol, Bob Nlathia, Stanley J. Blenke, Rich Deahl, Bill Hollinsworkh, Beth Leonard, John Piraccini, Any Laurent, Paul J. Meyer, Liz iaradik, City Clerk John Voorde, Jamie Loo of the Socv~h ~er~d Tr~r'burre and l~athleen Cekansl~i-Farrand, Council Attorney. Council Mer~ber Dieter noted that the Committee members include Council Members ~Celly, Puzzello, ~Il~hite, and himself; and Phil Panzica Marty Vl~olfsan serge as citizen mer~ber, Bill o. 08-07 Pro used ~~ ~~~ A ro riation Frorn Fund # 2~~; Council Ienber Dieter tailed for a presentation on Bill No. 08-~1 which i a request to appropriate 4,g~o from Fund # ~, the Community and Bconornic Development Fund for consultant services in the Departr~ent of Community & Bconornic Development. City Controller M. Catherine Fanello stated that Jeff Gibney has requested this appropriation to cover the costs of consultant services to assess the organizational structure and activities of the Department of Community and Bconornic Development. Council lUle~nber Dieter requested that a copy of the consultant's findings be sent to the Council. Council Member Vl~hite inquired about the process and what input the Council would have with the consultant, Ms. Fanello stated that the consultant has been used by South Bend Heritage, and that the contract with them was signed today, subject to financing. She added that the term of services would be from January ~ , SOD?' through December 1, ~g~~t Comaunity and ~ca~a~nic ~e~e~~~ent ~or~mittee February ~ ~, ~~~~ Page ~ Council l~resjdent Rouse suggested that new section be added to the ordinance which would address the concerns raised that the Council would be contacted periodically and that the Council would receive a copy of their report~s~, llll. Fanella stated that she would see that a substitute bill would be ready far this evenings meeting. Council lUlember Ill~hite rude a motion, seconded by Council IVlember Pu~zelly that Bill IVo. ~S~~l as to be amended by a substitute bill be recommended favorably to Council= The motion passed. Bili Ida. ~7-~~ - ear Residentiai Real Pro a Tax A~~a~eme~ Re oast of SFi1LDl Par~nersi far ~3Q ~2 ~3~8 aid ~ ~a~ Court Council Nlernber Dieter called far a presentation an Bill No. ~l-~~ which i a request b 1=11L~1 Parknersl~ip to declare ~a, ~~, 8 and ~~ ~a~ Court as residentially distressed areas for purposes of a #year residential real property tax abatement. Bill Schallivl of the Department of Camrnunity and Economic Development reviewed the January ~, ~Q~~ multiWpage report from his department ~capy attached}. Ike Hated that the properties in question are located in Southfield Subdivision, Section ~~ The total price of the project is estimated to be 1~~~~~~~ The report concluded that the petitioner qualifies for the requested 5~year residential real property tax abatement under Section ~-11.1 addressing "Single Farily Residential Construction" of the ou~~ ~e~d ~lur~icipa! o~'e. Richard J ~ Deahl, of Barnes & Thvrr~burg, LLP with offices located at OD North Michigan in downtown South Bend nude the formal presentation, He noted that the proposed faur~4} single-family villalcondorninium units would range in value from ~ a,~~~ to ~4a,000, The area that they would b constructed on is a small col-de~ sac and with the abatement it would assist in marketing them In response to a question from Council IVlen~ber Dieter, IUIr, Deahl stated that it maytake up to a year to move the properties, Hating that they are located in Centre Township with a 5,1 °lo tax rate. Dr. Varner Hated that almost all of the recent residential development in the south end of the city has received residential tax abatement consideration, Council 11~ember Pu~~ello rr~ade a motion, seconded by Council ll~rnber 1hite that Bill No. ~1-~`~ be recommended favorably to Council. The nnotion passed. Community and Econoic ~avalopme~t C~~n~nit~ae February ~, X00? Pale 3 Bill No. ~~-~8 ~- ear Personal Pro ~ Tax Ahatemer~t Re oast of ohafer ear'Vl~orks lnc, for 4~'~~ Nitz Parka Council Member Dieter called for presentation on Bill No. D7~ far a five ~b~ year ersonal ra arty tax abatement request of Schafer Gear vlforks, Inc, located at ~47g~ ~ ~~ Nit~tz Parkray. Bill Schalliol of the Department of Community and Bconomic Development revievued the Janus 15, ~~gl multi~page report from his department copy attached}. I-le noted that rY the cast of the nevu equipment « projected to be 843,og0, Total taxes pard over the ~~ ear errod v~rould be ,~~~; and the an~aunt of taxes requested to be abated v~rould y ~ ~, be $51,~gi The report concluded that the petrtioner qual~f~e far the requested b-}rear ersonal ra art tax abatement under Sectian -84~ addressing "Tangible Personal p ~ ~ Property Tax Abatement" of the au~~ ~erraf l~r~~cipal Code. tanleLvr(/ J. Blenke, Executive 11ice~Preident of Schafer Gear vl~orks, Inc. made the Y ~ farrnal resenttion. Ile Hated that the company plans to purchase o ~~ pieces of p e u~ n~ent ~rh~ch consist of a gear gr~nd~ng machine ~vith autor~atran and a hob q p char ever. One {~~ neuv, permanent, full-time fob ~rould be created vuhrch ~rould have a p sale of 4,30; and the project uwrould assist in maintaining the 7 existing full-time fobs v~hich have an annual payroll of $~,72~,~03. U on uetionin by Council Member Pfeifer, it gas noted that Schafer Gear vllarks, p q l Inc. rnaved from the former Tepe~s locatian on Main Street to their current location on imtz Park~va . Although jab goals have Hat arrays been met in the past due to ]r outside rr~rket forces; Mr~ Blenke stated that he has "no doubt" that the nevwr hire v~ould be hired. He added that the efficiency of the equipment in question and employment retention is also critical to remain competitive. Council MemberVl~hite made motion, seconded by Council Member Puzello that Bill No. 07-8 be recommended favorably to Cauncil. The motian passed. Bill ~Vo~ ~~=~9 ~ D- ear Read Pro art Tax Abateet Re oast of Prairie art~nents ~leusin Partners LP for the l~aoat ~and'~Ilest of Brr~o~s Pizza on the south side of Paairie Arrenue Council Member Dieter called far presentation on Bill No. 079 uwrhich is a request for a 0- ear real property tax abatement request of Prairie Apartments I~lousir~ Partners, ~ y ~ LP to be located on the vacant land immediately vuest of Bruna~s Pizza on the south side of Praire Avenue vest of Locust Load and east of the by-pass. Communi~~r end ~ca~a~ic Deve~aprr~ent Comittee i=ebr~ary ~ ~, ~DO~ gage 4 Bab l~athia of the Department of Community and I~conon~ic Development reviewed the January ~, ~aa?multi-page report fram his department copy attached}. He noted that the petitioner plans to construct a g8-unit, rnulti-family hauling project vuhich vuill have an estimated cast of ~ ,g~ 3,~~. ~"atal taxes to be paid during the ~ g-year period are estimated to be ~ ~g,~~; and the etir~ated taxes requested to be abated are Bill Hallings~vorth of equal Development, LLC v~rith offices at ~~~1 Tradd Street in Carmel, Indiana made the formal presentation. He noted that the project would be done in phases and that the Hauling Assistance office of t. Joseph County would be managing the project. In response to a question from Dr, Varner, ~Ilrw Hoilingwarkh stated that there vtirould be an extensive buffer to the residential area and that there would be an emergency entrance far public safety. In response to a question from Citizen lUlembr UVolfsan, it vuas Hated that the rent utirou~ld range from $0 to g0 per month, depending on income. Caancil lUlember uspa Hated that the proposed development ~vould be iacated in his Councilmanic District. He believes itvuould bring life to this area and vuould be an asset to the community, Council 1~ernber Pu~zello made a rnatian, seconded by Council Member Illlhite that Bill No. Dl-~ be recommended favorably to Council. The motion passed. Substitute Bill ~~~ ~~- ~ ~- ear deal Pro ~'ax Abatement Re uet of the youth Bend iinia, ~l~P~ youth Bend ~A~ I~P and dd~y Property e~relopment, PLC for the property iocated at ~~ ~ forth add Street Council lUlen~br Dieter called far a presentation vn Substitute Bill Na~ g7~0 ~rhich is a request of the South Bend Clinic far a -year real property tax abatement far the property located at ~ ~ forth eddy Street, Bab ll~athia of the Department of Community and canamic Develapn~ent reviewed the January ~, ~00~ multi-page report fram his department copy attached}. He noted that the petitioner is asking for a special exception because the application does Hat meet the general standards far a real property tax abaterrjent. He added that discussions tank place Frith the staff and the petitioner and that the Community & ~conamic o~~unity~ar~d E~onom~c Development Comittee l=ebruary 1 , ~~~1 Page ~ Development staff reca~nmends favarably~ on the special exception. The tats! amount of taxes to be paid during the -year period is estimated to be 1, Dag, ~ ~ to , ~ 4, 0~, Paul ~. Meyer, Executive Director and s~lanagr of the South Bend Clinic made the formal presentation. He Hated that the Clinic plans to add a three~story ~a4,0a grass square ~aot addition to their exjsting medical fiacility; ~vhich was detailed to the Council in an earlier meeting pith a power-paint presentation. The project would accan~modate growth in new physicians by the Clinic and would replace and expand current ambulatory surgical fiacilities. The project i estin7ated to cast between ~Q million to 3~ million. Rich Deahl added in response to Council lVlen~ber Puzzella' inquiry that the legal description was changed thus requiring a substitute bill. The location does Hat meet the current business district boundaries therefore the special exception request i being made. Taxes will be approximately aa,aa0 per year, Hating that the physicians are the awner~ Citizen ~len~ber 'Ullolfson complimented the petitioners on the thoroughness of their answer on affirmative action. Council president Rouse inquired about the TiF District to Dan Inks, noting that the Council needs to see the TIF Districts an a map and that their impact needs to be studied in light of carrying out the Council's fiduciary duties, Illlr. Inks stated that TIF brought in approximately million. If there would Hat have been TIF areas the overall tax rate of the city vuauld have been lower. He Hated that TlF afl:ects the tax rate, as apposed to the tax levy. Council l~ernber vllhite agreed with the comments of Council President Rouse and suggested that a special meeting be called in the near future to discuss this topic in detail. Council Member Pfeifer suggested that such a meeting be the Committee of the Ullhale a apposed to a ca~nmittee meeting. Council lVler~bers ~Nhite and Rouse thanked the South Bend Clinic for their continuing investment and commitment to the City of Bauch Bend Council ll~ember ~uzzello, the District Council ~len~ber where the Routh Bend Clinic is located noted that the Northeast Neighborhood has a tremendous need for the services provided by the South Bend Clinic. Community and ~cono~~c D~ve~opmen~ ~m~ttee r~~g~ ~ In response to ~ question from Council Member I~u~~ello, it was noted that this location i not located in the proposed BID districts Council Member ~irits inquired whether the 7-~ location was being considered to be taken over by the Clinic, and was advised that it was nat. l~r. Inks stated that the South Bend Clinic has made a tremendous commitment to Routh Bend and h recommended ghat the Committee take favorably actian on tl~e special exception request far the 3~year abatement. 1=allowing discussion, Council 1Ulember Puzelio made a notion, seconded by Council lUlember Ill~hite that Substitute Bill 1'Vot 07`-0 be recomr~ended favorably to Council. The matian passed. Bili No~ ~~- ~~ ~ uet to Auth~r~ae the i~la ~r to u~r~it An A iicat~an for A ~etr~leur~ Re~n~diatiort grant Council illlember Dieter called far a presentation on Bill No. al-~~ which would authorise IUlayor Luecke to submit an application to the Indiana Department I`inance ~4uthority far a grant from the petroleum Remediation Grant Incentive grogram far ~~ Portage Avenue. Lip ll~aradik, a Planner with the Department of Community ~ Economic Development made the formal presentation, She Hated that the maximum grant amount would be ~~a,a0a and thatthe Departn~entof orr~rr~unity and Ecanamic Development. There was no pudic input on the Bill. Council lUlember White made a r~otian, seconded by Council Member Pu~zella that Bill hlo. aT-~ be recernmended favorably to Cauncil. The matian passed. Rresentation on tie an ~eWE~rn ~evel~ ment Area: Council IUlernber Dieter then called upon Don 1nl~s to provide an update on the Sample Ewing Develaprnent Area. Don Inks introduced Andy Laurent, Project IUlanager, who provided apowr-point presentation on the "State of the BBDA.aa~l" ~CopY of ~ -page power-paint handout attached}. The Sample~Ewing Development area encompasses the Sautheast Neighborhood, the Stu~debal~er Corridor, the Rum Village i~leighbarhood, Routh Gateway an~mercial Corridor, and the Sample, Calverfi and Glive Street industrial corridors. The EDA T11= gill be consumed by debt seruice through ~a~. Cammur~ity aid ~co~omic Developrnr~t Co~nr~ittee February ~ ~~~1 tae 7 tudebakerlGliver is funded by Ioans, grants and RD revenue and is projected to be million under funded. BUD section ~ ~~ Ioans are backed by TIF and ~~D dollars. Grants from the U nviranmental Protection Agency, ~' and lFA are also involved. There are several lavusuit pending in the insurance recovery area where the city i using outside legal counsel from Indianapolis, along r~ith the pity Attorney's Office who have been working an such cases far the past six ~~~ years 3 of ~' properties have been acquired v~ith all properties projected to be acquired by February of X08. There are three ~'} phases to den~aliticn, f~llo~ved by environmental cleanup, infrastructure and then marketing and development TlA1P~ expects to have a ground breaking in the spring of X008, auncil l~ernber Pfeifer inquired about the process to nnerge ecanon~ic deveiopment districts, and was advised by Don ln~CS that areas have been merged in the past and v~ould inval~re the council. Council l~lember Dieter thanked Andy and Don far the information they have shared; and then formally introduced Phis Panzica to the committee, a local architect uwrha will serve as one of the Cornrittee' citizen members. There being na furkher business to come before the committee, Council Illlember Dieter adjourned the meeting at 4:3 p,m. Repectf submitte Councii Member Derek D. Dieter, chairperson Con~n~unity and economic Deveiopr~ent omrr~ittee Attachments