HomeMy WebLinkAbout02-24-03 Community & Economic Development (tont1t1tttt .port
Qtontmunttjj anb. ( onumtt atiozlopitorat Commits t AMENDED
The February 24, 2003 meeting of the Community and Economic Development Committee was
called to order by its Chairperson, Council Member Karl King at 5:00 p.m. in the Council Informal
Meeting Room.
Persons in attendance included Council Members Varner, Pfeifer, Coleman, Kirsits, Aranowski,
King, Kuspa and White; Citizen Member Isabelle Gonzalez, Michael Beitzinger, Marco Mariani,
Bruce Yerry, Ann Mannix, Andy Laurent, Terry Bland of the 'out Netts iGr tt=Ct' and
Kathleen Cekanski-Farrand, Council Attorney.
Council Member King began the meeting noting the absence of Jon R.Hunt, Executive Director,
and stating that "he will be missed a great deal..."
Council Member King then called for a presentation on Bill No. 03-22 which is a ten(10) year real
property tax abatement request for Rescue, Inc. and Hope Housing L.P. For the property located
at 432 S. Lafayette Street.
Michael Beitzinger, Assistant Director of Community and Economic Development, reviewed his
report dated February 18, 2003 (copy attached). He noted that Rescue, Inc. is the owner of the
property where the former Ries Furniture store was located. They plan to completely renovate the
building so that it will become a new shelter for families and be known as the "Family Life
Center". Part of the building will be leased to Hope Housing L.P. which will own thirty-four(34)
units which will be dedicated to transitional housing. The limited partnership would then be
entitled to receive funding through the Low Income Housing Tax Credit Program. Real property
taxes will be the responsibility of Hope Housing and the abatement will be on that portion of the
building. The current assessed valuation of the real property is estimated to be$111,300;and after
the rehabilitation the market value is estimated to be $5,300,000. The report concluded that the
petitioner meets the qualifications for a ten (10) year real property tax abatement under § 2-77 of
the South Bend Municipal Code addressing"Multi-Family Real Property Tax Abatement".
Mr. Bruce W. Yerry, Executive Director of Hope Rescue Mission, then made a presentation and
provided a 8-page handout to the Committee (copy attached). He noted that the Family Life
Center will be separate from the men's center on Michigan Street. He then reviewed a series of
preliminary floor plans prepared by The Troyer Group. Mr. Yerry stated that the present parking
lot would become a garden and playground area with screening to the street on the west. There
will be a small cafe on the first floor. The lower level will be the educational areas and will house
the home management resources and the New Beginnings Program. The 2nd floor will have the
transit living space with the north section dedicated to single women with families; the 3rd floor
north will have living quarters for male head of households and the 3rd floor south will have
housing for single women with children; and the 4th floor north will have housing for single
women.
Council President White inquired about the areas designated for smoking. Mr. Yerry noted that all
areas will meet OSHA regulations.
Council Member Kirsits inquired about sprinkling. Mr. Yerry stated that the facility would have
sprinklers throughout with remodeling to begin in March 2003.
Dr. Varner inquired about the not-for-profit status and the need for tax abatement. Ann Mannix
Community and Economic Development Committee
February 24, 2003
Page 2
presented a 1-page handout(copy attached) which detailed how the Family Life Center which will
be owned by Rescue, Inc will leave the thirty-four (34) transitional apartments to Hope Housing,
L.P. With Hope Housing L.P. Being responsible for real property taxes. She added that the Ice
Miller law firm development the overall tax strategy for the entities; and that tax credits in the
amount of$1.7 million have been applied for on the project.
Mr. Beitzinger noted that he discussed this arrangement with Mr. John Lentz in the County
Auditor's Office and it was found to be acceptable.
Council Member Kuspa noted that the corner where the playground is proposed is a high traffic
area. Mr.Yerry stated that the playground area will have fencing and that additional landscaping
will be facing I afayette.
No one from the public spoke in favor or against the Bill.
Council Member Pfeifer noted that she is not a member of the Committee, however the proposed
project will be located in the 2nd District. She commended Hope Rescue for their undertaking.
She noted that she took a tour of the facility approximately one year ago, and is most excited about
the transitional apartments and all of the programs which will be offered to the residents.
Following discussion, Council Member Kuspa made a motion, seconded by Dr. Varner that Bill
No. 03-22 be recommended favorably to Council.
Council Member King then called for a presentation on Bill No. 03-23 which is a proposed
resolution which would authorize the Mayor to submit an application for a Brownfields Site
Assessment Grant.
Economic Development Specialist Andy Laurent made the presentation. He noted that the
resolution would authorize Mayor Luecke to submit the application to the Indiana Development
Finance Authority. If awarded the funds would be used to conduct environmental assessment
services at the former South Bend Stamping property. He noted that the maximum grant amount is
$50,000 which may entitle the City to receive another$200,000.
Council Member King noted that the proposed Resolution just addresses the submission of the
application and if it is awarded there would be an appropriation ordinance later. Mr. Laurent stated
that that was correct.
Following discussion, Dr. Varner made a motion, seconded by Council Member Kuspa that Bill
No. 03-22 be recommended favorably to Council.
Under unfinished business, Council Member King requested that Committee minutes of February
10th be amended to reflect that he adjourned the meeting. Council Member King then adjourned the
meeting at 5:18 p.m.
Respectfully submitted,
Council Member Karl King, Chairperson
Community and Economic Development Committee
KCF:kmf Attachments