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HomeMy WebLinkAbout07-28-03 Community & Economic Development Qommtttee . sport Community ara (eottomte 0elopmettt °Committee The July 28, 2003 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Karl King at 4:02 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Aranowski,Kelly,Pfeifer, King, Varner, White, Kirsits and Kuspa; Assistant Director of Economic Development Michael Beitzinger, Marco Mariani, Bill Schalliol, Robert Case, Steve Cooreman, Marsha Hillaman, Don Inks, Anne Bruneel, Terry Bland of the 0010 Ifetttr tribune and Council Attorney Kathleen Cekanski- Farrand. Council Member King called for a presentation on Bill No. 03-75 which is a request for a five (5) year residential real property tax abatement for the City of South Bend Board of Public Works for the properties commonly known as 130,530, 621,630, 636, and 726 East Broadway Street. Michael Beitzinger then reviewed his report dated July 15, 2003 (copy attached). He noted that American Home Dreams, Inc. would construct six (6) homes valued at $ 110,500 each for a total project investment of$663,000. This is the 9th time that they are before the Council requesting an abatement. The report concluded that the petitioner meets the qualifications for a five (5) year residential tax abatement under § 2-77.1 of the South Bend Municipal Code addressing "Single Family Real Property Abatement". Marco Marian of Community and Economic Development made the presentation. He noted that he is the property manager for the project. He noted that the six (6) homes would be constructed on fifteen (15) lots. He noted for the record that a replat of the area has been recorded consistent with the recommendation of the Council Attorney, and then presented her with a copy of the recorded "Southeast Neighborhood,Broadway&Marietta Replat"(copy attached). No one from the public spoke in favor or in opposition to the Bill. Council President White inquired about the number of homes which American Home Dreams, Inc. Mr. Mariani stated that they constructed 55 homes prior to this petition. Dr. Varner inquired whether all of the homes are sold. Mr. Mariani stated that one (1) is currently in foreclosure but will be worked out,with all others being sold. Council Member Pfeifer stated that the neighborhood park is"adorable". Mr. Mariani stated that a ball diamond will be added with today being the"soft opening"for the park with the grand opening being scheduled for August. Following discussion, Dr. Varner made a motion, seconded by Council Member Kuspa that Bill No. 03-75 be recommended favorably to Council. The motion passed. Council Member King noted that the Council should have received a letter dated July 24, 2003 from Michael Beitzinger noting that Bill No. 03-76 needs to go before the Redevelopment Commission prior to coming before the Council. Accordingly, he requested that the Bill be continued until August 11th. Council Member Kuspa then made a motion, seconded by Dr. Varner, that Bill No. 03-76 be Community and Economic Development Committee July 28, 2003 Page 2 continued until August 11th per the letter request. The motion passed. Council Member King called for a presentation on Bill No. 03-77 which is a request of Cooreman Real Estate Group, Inc.,for a five (5) year residential real property tax abatement for the properties commonly known as the Villas at Lake Blackthorn for the properties: 6719 Blackthorn Drive or 4803 Portside Drive, 6727 Blackthorn Drive, 6735 Blackthron Drive, 6747 Blackthorn Drive or 4838 Orange Road, 6743 Blackthorn Drive or 4736 Orange Road, 6732 Blackthorn Drive, 6724 Blackthorn Drive,6716 Blackthorn Drive or 4739 Portside Drive. Economic Development Specialist Michael Beitzinger then reviewed his report dated July 23, 2003 (copy attached). Mr. Beitzinger stated that the project is an expansion of one which was approved for abatement in December 2002 when 105 single family residential lots were approved. The project is located on 56 acres directly north of Brick Road and west of the US 31 Bypass. The 2nd phase of the development will contain eight (8) new homes with a new investment to exceed$ 1.6 million. The report concluded that the petitioner meets the qualifications for a five (5) year residential tax abatement under § 2-77.1 of the South Bend Municipal Code addressing "Single Family Real Property Abatement". Steve Cooreman, President of Cooreman Real Estate Group, Inc., made the presentation. He noted that 114 villas were proposed with 105 already receiving tax abatement consideration. The Area Plan Commission is requiring a replat. The villas will range in price from $ 150,000 to $ 400,000. He noted that tax abatement has been a"tremendous marketing tool". In light of the new jobs being created in Blackthorn the residential proposal would be a great compliment. Mr. Cooreman then introduced Marsha Hillaman who is the Marketing Director for the project. No one from the public spoke in favor or in opposition to the Bill. Council Member Aranowski spoke in favor of the project and noted his appreciation for the growth on the northwest side of the city. He also noted that the bridge renovation in the area is "gorgeous". Following discussion, Council Member Kelly made a motion, seconded by Dr. Varner that Bill No. 03-77 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on three (3) bills which would have separate motions after a combined public hearing this evening. The three (3) bills were: Bill No. 55-03 which would appropriate the proceeds derived from the St. Joseph County Economic Development Income Tax in the amount of $ 1,000,000 within the State Grants Fund (Fund 210) for the purpose of financing the costs of rehabilitation of property connected with the Robert Bosch Corporation Retention Project; Bill No. 56-03 which would appropriate the proceeds derived from the Robert Bosch Braking Corporation in the amount of$ 1,500,000 within the State Grants Fund (Fund#210) for the purpose of financing the costs of rehabilitation of property connected with the Robert Bosch Corporation Retention Project; and Bill No. 57-03 which would appropriate the proceeds derived from the Indiana Development Grant Fund in the amount of$ 1,000,000 within the State Grants Fund (Fund # 210) for the purpose of financing the costs of rehabilitation of property connected with the Robert Bosch Corporation Retention Project. Robert D. Case, Senior Economic Development Planner, made the presentation on the Bills. He noted that Bill No. 56-03 involved part of the$4 million loan to Bosch and that Bill No. 57-03 if Community and Economic Development Committee July 28, 2003 Page 3 from the company's EDIT funds for the next three (3) years . He noted that the three (3) bills represent a total of$3,500,000 in appropriations form Fund#210 related to the Bosch project. No one from the public spoke in favor or in opposition to the three(3) Bills. Dr. Varner inquired if there is anything significantly different in the three (3) Bills. Mr. Case stated that only the$ 1.5 million with every thing being run through the Board of Public Works. Dr. Varner then made a motion, seconded by Council Member Kuspa that Bill Nos. 55-03, 56-03 and 57-03 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-78 which would provide preliminary approval of the issuance of bonds for the purpose of providing certain economic development facilities for Kite Capital,LLC Erskine Village Project. Donald E. Inks, Director of Economic Development, made the presentation. He noted that the proposed resolution would approve the issuance of up to $ 6 million in economic development revenue bonds for the Erskine Village project. The bond proceeds would be used for Phase I of the project including the demolition of the former Montgomery Wards buildings, and would address utility relocation and site improvements. Repayment of the bond would be from Tax Increment Financing (TIF) funds generated from the project. Phases II through IV would be financed by similar bonds int he future. The total project will have 510,000 square feet of retail and restaurant development. Mr. Inks stated that any shortfall would be assumed by the bond buyers. He noted that attorney Anne Bruneel and Bill Scalliol were also present to address questions. No one from the public spoke in favor or in opposition to the Bill. Dr. Varner inquired about the purchase arrangement. Ms. Bruneel stated that it is structured similar to an IRB which would be handled by the Economic Development Commission. Bonds proceeds would be loaned to the developer. Repayment would be through TIF. In no event would the City of South Bend be responsible for any defaults. Dr. Varner noted that he is in favor of development in his District and receives countless numbers of questions on the project on a daily basis. Following discussion, Dr. Varner made a motion, seconded by Council Member Kelly that Bill No. 03-78 be recommended favorably to Council. The motion passed. Bill Schalliol stated that the fencing was delivered today and the demolition work should begin by the end of this week or the beginning of next. The next Target store will have its grand opening on July 25, 2004. Council Member King then called for a presentation on Bill No. 03-79 which would amend the lease with the City of South Bend Building Corporation for the construction and equipping of a new fire station and the renovation and expansion of a police station and related matters. Anne Bruneel, an attorney with Baker and Daniels, made the presentation. She noted that the resolution would ratify the sale of lease revenue bonds to fund the police and fire facilities. The Community and Economic Development Committee July 28, 2003 Page 4 previously approved amount of the bonds was $ 26 million. The aggregate principal bond amount however has been determined to be $ 21,335,000 with a net interest cost of 4.459 % which is lower than the 7% rate used to calculate the maximum lease rental under the lease. Closing will take place tomorrow. No one spoke in favor or in opposition to the Bill. Following discussion, Council Member Kelly made a motion, seconded by Council Member Kuspa that Bill No. 03-79 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, Council Member King adjourned the meeting at 4:22 p.m. Respectfully submitted, Council Member Karl King, Chairperson Community and Economic Development Committee KCF:kmf Attachments