HomeMy WebLinkAbout04-28-97 Community & Economic Development 676Ynnuu i 6449146:
Community and Economic Development Committee
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The April 28, 1997 meeting of the Community and Economic Development Committee was
called to order by its Chairperson, Councilmember John Broden at 4:28 p.m. in the
Council informal meeting room.
Persons in attendance included Council Members: Kelly, Aranowski, Pfeifer, Broden,
Varner, Udjak, Coleman, Hosinski, Sniadecki; Attorney Bruce Bancroft, Jon Hunt, Ann
Kolata, Mayor Steve Luecke, Citizen Member Sue Hodgson, Ted Fodey, Richard Hill,
Don Porter and Kathleen Cekanski-Farrand.
Councilmember Broden noted that the first item on the agenda was Bill No. 34-97 which
would authorize the issuance of County Economic Development Income Tax Revenue
Bonds in the amount of Eleven Million, Nine Hundred and Sixty Thousand Dollars for the
purpose of financing an Economic Development project. He also noted that Bill No. 35-97
which is the appropriation of the sale of those bonds would also be heard this evening. For
purposes of the committee hearing, both Bills were heard together. Ann Kolata made the
presentation. She noted that the project includes a 640 space garage and a 40 space surface
parking lot. Additionally,there would be two buildings, four stories each, constructed and
known as the Trammel Crow Memorial Facility. The latter building would be requesting a
10 year real property tax abatement. Ms. Kolata noted that currently there is 65,000 square
feet of the 900,000 square feet of Class A office space now vacant. There will be eight
retail spaces which will front Michigan Street. She noted that with the combination of the
surface parking lot and part of the garage, 109 spaces will be earmarked for Teachers
Credit Union to satisfy a legal obligation of the City going back to 1984. She also noted
that over a 20 year period the bond issue would be paid off at a rate not to exceed 10% and
would be paid solely from the Economic Development Income Tax. She also noted that the
owners will not own the ground but the City will lease the ground to them in order to
construct the buildings. There will be a significant common area with a cost to be charged
to each of the owners. Over twenty years, there should be approximately ten million
dollars of revenue generated from all sources. Over a forty year period between twenty-
four and twenty-five million dollars should be generated and over a fifty year projection
approximately thirty-three million dollars should be generated in fees from parking,rental
and common area charges.
Ann Kolata also noted that if the Council acts favorably on both Bills this evening,that the
sale of the bonds will take place in June with construction to begin on June 23, 1997. In
response to a question raised by Councilmember Varner, it was noted that the projections
include a 70% parking occupancy for the first year with hours from 6 a.m. to 9 p.m. and
that currently the parking garages owned by the City have monthly parkers at an 88 %
ratio. She also noted that the projections include an 80% occupancy for the retail space.
In response to a question raised by Councilmember Broden,it was noted that the lessor for
Community and Economic Development Committee
April 28, 1997
Page 2
the retail spaces would be the City of South Bend with the Redevelopment Department
handling all leasing and marketing.
Councilmember Hosinski questioned how much of the Colfax garage would be impacted
by the earmarking of spaces for Teachers Credit Union. Ann Kolata did not have a
response at that time but agreed to check into this matter further.
Following further discussion, Citizen Member Sue Hodgson made a motion, seconded by
Councilmember Sniadecki that Bills No. 34-97 and 35-97 be recommended favorably to
Council. The motion passed.
There being no further business to come before the Committee,the meeting was adjourned
at 5:55 p.m.
Respectfully submitted,
Councilmember John Broden,
Chairperson
Community and Economic Development Committee
Attachments
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