HomeMy WebLinkAbout06-27-01 Community & Economic Development Qommitteu wort:
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The June 27, 2001 meeting of the Community and Economic Development Committee was called
to order by its Chairperson, Council Member Roland Kelly at 4:05 p.m. in the Council Informal
Meeting Room.
Persons in attendance included Council Members: Coleman, Kelly, and Varner; Don Inks, Kevin
Hunter, Michael Beitzinger, Terry O'Brien, Jon Hunt, Marty Wolfson, Greg Jones; and Kathleen
Cekanski-Farrand, Council Attorney.
Council Member Kelly thanked everyone for coming and noting that the meeting was called to
continue the discussion and review of the City's tax abatement procedures. He then called upon
Don Inks to make a presentation.
Don Inks provided an 11-page handout (copy attached) which he then highlighted. He
summarized the previous tax abatements from 1998 to 2001 under current regulations and
proposed guidelines. He noted that the proposed guidelines are based on the premise that the goals
of tax abatements should be to encourage investment, increase the assessment and the overall tax
base.
Kevin E. Hunter provided a 2-page memo outlining his areas of concern(copies attached)
Mr. Hunt noted that philosophical and policy issues must be carefully considered when
considering the proposed guidelines. He noted that the State of Michigan offers "Renaissance
Zones" whereas the State of Indiana can offer the "Edge Program", but it cannot be offered to
retain jobs. Mr. Hunt stressed that the growing areas of concern are when consultants become
involved and get footloose in showing potential areas for development.
Mr. Inks then reviewed the proposed changes and assumptions for the proposed changes and then
applied them to specific petitioners such as GTA Container, Rink Building, Koontz-Wagner, USF
Holland, Batteast,Tire Rack,Lock Joint Tube, and Exacto.
Mr. Beitzinger noted that USF Holland will be coming back to the Council to request an extension
in light of the down turn in the economy.
Kevin Hunter inquired whether South Bend gives out more abatements than anyone else in the
State of Indiana. He also inquired as to why a hotel or motel would ever get tax abatement.
Council Member Coleman stated that the City of South Bend does market its quality of life when
seeking new or expanded development within the city.
Mr. Hunt noted that Blackthorn is the marketing name whereas the Airport Economic Development
Area (AEDA) is the legal name. He also noted that there are three redevelopment areas which
constitute the blighted areas. Mr. Hunt noted that hotel/motel developments are part of the overall
plan for the East Bank, the downtown and Blackthorn, noting that the city has been trying for over
ten(10) years to get a hotel in Blackthorn. He further noted that there are over 250 firms located in
Blackthorn which need more amenities.
Council Member Kelly noted that financing is difficult for hotel/motel projects and that Grape Road
is now considered a"safe investment"for such development.
Community and Economic Development Committee
June 27, 2001
Page 2
Kevin Hunter suggested that the City also needs to focus its attention on those areas which are
truly blighted. Incentives must be created to stimulate development in such areas. He further
noted that character in the community as well as the individual is critical to success.
Terry O'Brien noted that additional incentives in blighted areas is worth discussing, noting also
that limited transportation to Blackthorn should also be addressed.
Jon Hunt stated that TRANSPO has received a three-year demonstration grant for a buss line to
Blackthorn, however the current problem appears to be a shift issue. Mr. Hunt suggested that the
Council consider a matrix of smaller buildings in blighted areas and larger buildings in Blackthorn
type areas,
Council Member Coleman noted that the new jail will become the anchor for the Studebaker
Corridor, however the 10-year limitation for abatement does pose an overall limitation when tear
downs are necessary.
Mr. Hunt stated that the Enterprise Zone permits companies to be exempt from the state's inventory
tax and provides employer incentives, tax incentives and on-the-job training enhancements. The
Community Revitalization Enhancement District will provide a 25 % incentive in such areas as
Oliver Plow but there are no "silver bullets". Projected cost to tear down current buildings in the
area is estimated between$ 16- $30 million.
Council Member Kell y noted that success in the Southeast Area with Ivy Tech and new housing
developments.
Dr. Varner noted that more business development results in more assessment and therefore lower
taxes,and this is need in light of the fact that South Bend has the second(2nd) highest property tax
in the State of Indiana.
Council Member Kelly stated that we are collectively looking for the best possible plan with the
next step to review Don Ink's handout in greater detail and then discuss it.
Council Member Coleman suggested that we consider various multipliers in certain categories. He
noted that category 5 D addressing a "significant financial sponsorship" of a city park or other
public amenity should include years of sponsorship as well as relocations.
Mr. Hunt stressed the need for a matrix which focuses on retention and as well as new
developments.
Council Member Kelly urged everyone to study the document and return on July 11th at 4 p.m. He
thanked Mr. Inks for his fine work and then adjourned the meeting at 5:30 p.m.
Respectfully submitted,
Council Member Roland Kelly,Chairperson
Community and Economic Development
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