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The October 24,2001 joint meeting of the Community and Economic Development Committee was
called to order by its Chairperson Council Member Roland Kelly at 3:07 p.m. in the Council
Informal Meeting Room.
Persons in attendance included Council Members Varner, King, Coleman and Kelly; Michael
Beitzinger, Kevin Hunter, Director of Community and Economic Development Jon Hunt, Tony
Mroczkiewicz of the Indiana Regional Council of Carpenters and Millwrights, and Kathy
Cekanski Farrand, Council Attorney.
Council Member Kelly welcomed everyone to the meeting which is aimed at continuing the
discussion of the review of the tax abatement ordinance and its proposed changes. He noted that
the Council Attorney has prepared a memo(copy attached) which addresses an introductory section
which would summarize the basic categories of abatement and addresses "safety net" language. It
would supplement Mr. Beitzinger's draft ordinance if agreed upon by the Committee.
Mr. Beitzinger noted that there has been discussion to consider having three (3) years as the base
abatement with the different items being added together to add additional years of abatement.
Council Member King voiced concern since he thought all proposed amendments would be kept in
one document. He also noted that he thought that points would be awarded based on certain
thresholds being met based on a point system.
Council Member Kelly noted that the proposed system is becoming too voluminous.
Council Member King stated that at the June 6th Committee meeting we discussed incorporating
the requirement of a legally binding agreement concept. He noted that just because something
becomes difficult should not mean that we do not do it. Better accountability is also one of the
goals of revamping the current ordinance. He suggested that we focus on the definitions, then
address the tentative point values,and then address the thresholds.
Council Member Varner noted that we should be mindful that the overall goal of a tax abatement
system is to create assessment. He further noted that both Mr. Inks and Mr. Beitzinger voiced
concern about having a user-friendly ordinance which was understandable.
Mr. Hunt noted that the Project Future website was receiving twenty (20) hits a month and now it
is receiving one (1) hit a month;and that there is nothing in the pipe line for 2002. The City needs
to have base abatements which are big enough to act as an incentive.
Mr. Hunter stated that South Bend has given more tax abatements than anyone else in the State of
Indiana. He further stated that he likes the 3-year base abatement and then develop the tiering
system.
Mr. Hunt suggested that we focus on the Chart on page 12 of the draft ordinance, and consider
using 3,4,and 5 years as the base abatement periods.
Council Member Coleman agreed with Mr. Hunt's suggestion that we should focus on the grid on
page 12 and build upon that. For example considering the size of the overall project with more
incentives for larger projects. Establishing proper thresholds will also be critical.
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Community and Economic Development Committee
October 24, 2001
Page 2
Council Member Kelly stated that there appears to be agreement that we use 3, 4, and 5 years as
the base abatements.
Mr. Hunt summarized that if this concept is used there is a significant statement being made. He
noted that better accountability based on the suggested changes would be summarized as follows:
Current abatement period: 3 years 6 years 10 years
Proposed abatement(base periods): 3 years 4 years 5 years
Discussion then took place on the role of public works incentives. Council Member King noted
that the City of Indianapolis reviews projects which have public works incentives in light of
possible tax abatement consideration so that there is a return;and it further requires a Memorandum
of Understanding (MOU). Mr. Hunt noted that infra-structure investments are currently being
considered and analyzed, for example:
Public Investments Public Benefits of a Proposed Project
All costs in which are of a public nature 150 jobs created in the 1st phase(ex)
Land acquisition&tax abatement EDIT &COIT $$which would be generated
Sales &Use taxes which would be generated
At this point in the meeting there was a recess due to a weather emergency.
Council Member Kelly resumed the discussion focusing on the proposed definitions. There was
agreement that the definitions should not be overly broad and should not be so specific that the
process would slow down even further because of the detail.
Council Member Kelly requested Mr. Beitizinger to continue to work on the proposed draft so that
discussion by the Committee could continue at the next meeting scheduled for Wednesday,
November 7th at 3 p.m.
Respectfully submitted,
Council Member Roland Kelly, Chairperson
Community and Economic Development Committee
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