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HomeMy WebLinkAbout09-10-2018 Tax Abatement Resolutions Bill Nos. 18-42—18-52: Modifying and Reconfirming resolutions for tax abatements September 10, 2018 Department of Community Investment 1 Agenda Overview Economic and Process Context Resolutions Project Outcomes and Reassessments 2 Bill No. 18-42: Historical JMS Bill No. 18-43: JSK Development/Ireland Hospitality – Holiday Inn Express Bill No. 18-44: JSK Development/Southhold-Courtyard Marriott Bill No. 18-45: JSK Development/Southhold-Hall of Fame Bill No. 18-46: Rdistrict One (Studebaker 84) Bill Nos. 18-47—18-48: Imagineering Enterprises (Personal and Real Properties) Bill Nos. 18-49—18-52 Tower at Washington Hotel Garage Retail Apartments Overview of Projects 3 Post-recession recovery and increase of business activity 2010 – 2 RPTA and 6 PPTA 2015 – 12 RPTA and 9 PPTA Projects’ scale & complexity and private investment increase 2010 - $2.4M average private investment per tax abatement 2015 - $4.5M average private investment per tax abatement Full assessment lag Project was completed but full assessment of new value not received in time Economic and Process Context 4 Economic and Process Context 5 Economic and Process Context 6 From 2017 Tax Abatement Report Economic and Process Context 7 From 2017 Tax Abatement Report Economic and Process Context 8 Tax Abatement Timeline Economic and Process Context 9 Economic and Process Context Example 18-month project with abatement approved in October Project continues 10 Resolutions 11 Project Outcomes 12 Project Assessments 13 Appendix: Policy Goals (From December 2017 Presentation) Growth of wages, gross municipal product, assessed value, population, etc. Productivity—dense, vibrant neighborhoods; workforce development and upskilling; entrepreneurship and business acceleration; regulatory/permitting/zoning efficiency Inclusion—inclusive professional networks; access to affordable housing, childcare, transit options, etc. Placemaking—quality of place and culture that attracts and retains talent and jobs Sustainability—robust infrastructure; long term stewardship of resources 14 Appendix: Need for Tax Incentives (From December 2017 Presentation) Mitigate risk to enable project financing Close finance gaps arising from better urban design and quality (e.g parking, stormwater management, façade, quality of materials/construction) Incentivize a larger investment or a more valuable use of land that generates more tax revenue over time Maintain competitiveness for tradeable sectors Further promote policy goals 15 Appendix: Benefits of Tax Abatement versus TIF (From December 2017 Presentation) Lower risk to the taxpayer Scales with new investment level and added assessed value, which can only be estimated in advance Only goes into effect if and when project investment occurs Not limited by geography or in competition with other supported projects Frees up TIF funds for other investments like neighborhood plan implementation 16 JMS Building 106-110 N. Main Street Appendix 17 Holiday Inn Express & Suites South Bend 210 Callander Street Appendix 18 Courtyard Marriott South Bend Downtown 121 S Dr. MLK Blvd. Appendix 19 Hall of Fame Appendix 20 Studebaker 84 Building 635 S. Lafayette Blvd. 21 Appendix 21 22 Appendix 22 Tower at Washington (Hotel, Parking, Retail and Apartments) 211 W. Washington St. Appendix 23