HomeMy WebLinkAbout10-25-04 Community & Economic Development The South Bend Common Council's Standing Committee Report from the
Community and Economic Development Committee
The October 25, 2004 meeting of the Community and Economic Development
Committee was called to order by its Chairperson, Council Member Roland Kelly at 3:30 p.m.,
in the Council Informal Meeting Room.
Persons in attendance included Council Members Pfeifer, Kelly, Puzzello, Varner,
Kuspa, Coleman, Kirsits, and White; Mayor Stephen J. Luecke, City Clerk John Voorde,
Building Commissioner Don Fozo,Ann Kolata,Bill Schalliol, Terry Lang,Bernie Feeney, Andy
Laurent,Gladys Kopola and Kathleen Cekanski-Farrand,Council Attorney.
Council Member Kelly noted that the Committee members include Council Members
Coleman,Kuspa,Kirsits and himself.
Council Member Kelly noted that he called the Committee meeting so that a presentation
on the Studebaker Corridor SEC/CDBG Proposal could be made by Ann Kolata.
Ann Kolata stated that within the next few weeks an application will be submitted for a
$21 million Section 108 loan. In 1999, the Mayor appointed an advisory steering committee
"Developing Concepts". The Redevelopment Commission and the Council adopted a strategy in
2000-2001 which addressed three (3) main sections: A = south of Sample Street; B = north of
Sample Street, and C = Oliver-Plow property. The goals included aggressively going after
financing. The time period was projected to be 5-10 years at a cost of$13- $33 million. The
biggest unknown costs would address demolition costs and environmental remediation.
Ms. Kolata stated that to date $4.3 million in grants have been received, as well as
$655,000 in CREED dollars from the State of Indiana. An application has been submitted to
HUD for $2 million for brownfield monies which go hand in hand with the Section 108 loan
package.
In response to a question from Council Member Kelly,Ms. Kolata stated that HUD loans
assume that they will be repaid with CDBG monies,however the City Administration would like
to use tax incremental dollars, CREED dollars or COIT,but not CDBG monies.
Ms. Kolata stated that the City is not eligible for$21 million of Section 108 loans unless
it receives two (2) waivers from Congress. The City Administration is working with Senator
Bayh's office and are requested a "slum and blight" classification because it offers more
flexibility. Three(3)steps over a 4-5 year period would be involved: Step 1: $11.2 million, Step
2: $6.5 million and Step 3: $3.5 million. City can apply for grants but if resources show that it
could not be repaid then the Administration will scale the numbers back.
The projected demolition costs for the stamping plant are $5.5-$6.5 million, and are
projected to take two (2) years to complete. Area B is being deferred and includes the Abe
Marcus building.
Community and Economic Development Committee Meeting of October 25,2004 Page 1
The South Bend Common Council's Standing Committee Report from the
Community and Economic Development Committee
Dr. Varner inquired whether the city would be required to levy a tax. Ms. Kolata stated
that there is a general obligation clause involved, however she noted that the Administration is
pursuing action against Allied Products for environmental costs and is also pursuing Studebaker
insurance dollars.
Dr. Varner asked for a proforma for the project, noting that many Council Members are
concerned about real property taxes.
Ms. Kolata stated that it is currently in draft form but would bring a completed
document identifying sources of funds for the Council.
Mayor Luecke stated that it is a dilemma of the chicken and the egg. CREED dollars are
not substantial until there is development. Rose Fuel is in and five of the six lots are currently in
negotiations. He stated that more detailed information will be shared with the Council.
Council Member Pnnzello noted that she and Council Member Dieter were not on the
Council when the project began and suggested that more information including a map be
provided to them.
Ms. Kolata then provided a copy of Volume 1, 2002 Studebaker/Oliver Redevelopment
"From Plan to Action" and a one-page"Property Sales Sheet"(copies attached). She added that
she would provide more formal information for Council Members Puzzello and Dieter.
There being no further business to come before the Committee, Council Member Kelly
adjourned the meeting at 3:52 p.m.
Respectfully submitted,.
Council Member Roland Kelly,Chairperson
Community and Economic Development
KCF:kmf
Attachments
Community and Economic Development Committee Meeting of October 25,2004 Page 2