Loading...
HomeMy WebLinkAbout03-22-99 Community & Economic Development Comintttts Zeport: Community and Economic Development Committee �0 tbjs common frontal of he E ttv of ioutUj :0: The March 22, 1999 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:31p.m. in the Council informal meeting room. Persons in attendance included Council Members: Aranowski, Kelly, Pfeifer, King, Varner, Ujdak, Sniadecki, and Coleman; Mayor Stephen Luecke, Nancy Van Scoyk, Robert Hunt, Jean Troutman-Poole, Terry Bland, Elizabeth Leonard, Eugenia Schwartz, Jon Hunt, Rhonda Brown, John Humphrey, Richard Hill, Ken Fedder, and Kathleen Cekanski-Farrand. Council Member Kelly noted that the first item on the agenda was to review Bill No. 21-99 which would approve a lease for certain public improvements between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission, and would authorize the use of EDIT revenues by the Commission for the payment of rentals. Beth Leonard made the presentation. She noted that the Council authorized the application for § 108 Loan Funds in November of 1997. However because these§ 108 loan funds are now being repaid with EDIT and TIF revenues and NOT Community Development Block Grant Funds (CDBG), Common Council action is required for the repayment of the § 108 loan. A total of$ 600,000 of the § 108 loan will be paid through CDBG funds and the remaining$ 1.8 million will be repaid through the use of EDIT and TIF funds. The monies will be used for land assembly, development of a new downtown office complex, and the Studebaker Museum. Ms. Leonard noted that since HUD required additional security for the repayment of the§ 108 loans, the City of South Bend hired Baker and Daniels to prepare the proper legal documents. Richard Hill of Baker Daniels noted that if the pledge is provided in the wrong way, it would be considered a city debt. The city does not want to recommit TIF where it was already committed. Dr. Varner requested further explanation of the relationship between the Redevelopment Authority and the Redevelopment Commission on this matter. Mr. Hill noted that that Indiana Supreme Court has ruled that improperly pledged EDIT would result as a general obligation of the City. For example, a lease arrangement is NOT considered a debt to the city. He then briefly explained an informal pledge of TIF vs. a formal pledge of TIF. The overall goal is to not make TIF funds unavailable for existing commitments. Ms. Leonard noted that interest would be due before the project is completed. Council Member King question § 3 of Bill No. 21-99 where"unavailable" is used three(3) times in the same sentence and found it to be confusing. Mr. Hill recommended that the language stand as proposed. Dr. Varner requested information on the sum total of the payments. Mr. Hill noted that the annual amount per the schedule would constitute that amount. Community and Economic Development Committee March 22, 1999 Page 2 Council Member Ujdak questioned what the net amount would be which would be pledged. It was noted that with the proposed arrangement, the city could finance new issues and that there would be no future encumbrances. The commitment is tied to the lease schedule. Following further discussion, Council Member Ujdak made a motion, seconded by Council Member King, that Bill No. 21-99 be recommended favorably to Council. The motion passed. Council Member Kelly noted that the next item on the agenda was to review Res. No. 99- 16 which is a five(5)year personal property tax abatement request for the property located at 3520 Westmoor Street for Aircraft Landing Systems, AlliedSignal,Inc. Nancy Van Scoyk, Economic Development Specialist, reviewed the March 17, 1999 report (copy attached). The petitioner is in the business of designing, testing, manufacturing and servicing of aircraft landing systems which include aircraft wheels, brakes and landing gear systems. The estimated cost of the project is $ 45.1 million. Twenty (20) new permanent full-time jobs would be created representing a new annual payroll of$926,001.00. The project would also maintain 940 existing full time and part- time jobs representing a payroll of$59,662,368.00. Citizen Member Jean Troutman-Poole inquired as to whether the Petitioner would go elsewhere if the tax abatement would not be granted. The Petitioner stated that they are committed to continue to expand in this area so long as there was a qualified work force. The Allied Signal Expansion Project handout is attached. Following discussion, Council Member Ujdak made a motion, seconded by Citizen Member Troutman-Poole that Bill No. 99-16 be recommended favorably to Council. The motion passed. The Committee then reviewed Res. No. 99-15 which is a proposed resolution requested the formation of a living wage study committee. Council President Coleman noted that he and Council Member Kelly has had ongoing discussion with concerned citizens in the area and recommend that a committee be established by the Mayor to see if an ordinance should be considered. He noted that the forum would allow the local community to "weigh in"on the issue. He further noted that the resolution is basically modeled after the casino gambling study committee. Citizen Member Jean Troutman-Poole questioned why the resolution is silent on the number of committee members. Council President Coleman stated that the listing of groups in proposed § II is not all-inclusive. The number was left open to give discretion to the Mayor in this area. Council Member Kelly noted that a good cross-section of the community should be represented on the Committee. Mayor Luecke stated that he too would like a good cross-section of the community but also wants a committee size which is workable. Citizen member Jean Troutman-Poole questioned if financial resources would be made available to the Committee. Mayor Luecke stated that his office paid for the copying of the r Community and Economic Development Committee March 22, 1999 Page 3 report which the casino-gambling study committee had and would make that same offer to this committee if established. He also noted that his office offered to pay for expenses directly related to the Committee activities such as out-of-pocket expenses when they visited casino sites, however most committee member paid for such expenses with their own funds. Council Member King noted that financial reviews and impacts should also be a part of the committee's report when considering whether an ordinance is needed. Council President Coleman hoped that there would be latitude with the six (6) month provision as there was with the casino-gambling study committee. Citizen Member Jean Troutman-Poole suggested that there be diversity in gender and minority participation on the proposed committee. Eugenia Schwartz suggested the sister jurisdictions also be considered since they were in the casino-gambling study committee, and she hoped that the entire County would be considered. Mayor Luecke noted that he has made preliminary contact with County and Mishawaka officials on this matter and would invite their participation. Council President Coleman noted that a rally on this measure was planned by the building traded now. Following discussion, Council Member King made a motion, seconded by Council Member Ujdak, that Res. No. 99-15 be recommended favorably to Council. The motion passed. Under miscellaneous business, Attorney Ken Fedder noted that Res. No. 99-11 which would approve the reissuance$ 12,920,485 of Multifamily Housing Revenue Refunding bonds (The Pointe at St. Joseph Project) will be withdrawn. He presented a letter to that effect to the Council(copy attached) He further noted that this matter would be re-filed as an ordinance. There being no further business to come before the Committee,the meeting was adjourned at 5:05 p.m. Respectfully submitted, Roland Kelly, Chairperson Community and Economic Development Attachments