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Home My WebLink About03-13-2023 Community Investment MeetingOFFICE OF THE CITY CLERK D AWN M.JONES, CITY CLERK COMMUNITY INVESTMENT Committee Members Present: Committee Members Absent: Others Present: Presenters: Agenda: MARCH 13, 2023, 4:30 P.M. Rachel Tomas Morgan, Eli Wax, Troy Warner*, Kaine Kanczuzewski Tomas Kurzhal, Henry Davis Jr. Dawn Jones, Victoria Trujillo, Justin LePla, Bob Palmer Erik Glavich, Brian Henry, Olivia Cimo Bill No . 23-03 -A Resolution Designating a Tax Abatement for Property Located at 2652 Jaclyn Court and 3 161 Youngs Court, South Bend, Indiana Bill No. 23 -09 -A Resolution Confirming a Tax Abatement for Property Located at 536 South Main, South Bend, Indiana Bill No . 23-1 0 -A Resolution Designating a Tax Abatement for Property Located at 7 468 Voorden Parkway, South Bend, Indiana Members marked with an asterisk(*) were present digitally Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=363895 Committee Chair Tomas Morgan called to order the Community Investment Committee meeting at 4:30 p.m. Bill No. 23-03-A Resolution Designating a Tax Abatement for Property Located at 2652 Jaclyn Court and 3161 Youngs Court, South Bend, Indiana Erik Glavich, Director of Growth and Opportunity, with offices on the fourteenth (14th) floor of the County-City building, advised of the Robert Henry Corporation's request for a declaratory resolution for a six (6) year abatement for two (2) properties. The petitioner has been in the Howard Park neighborhood since 197 4 and is seeking to expand their facilities . The project is a six-point-five ($6,500,000) million-dollar investment for a truck maintenance EXCELLENCE ACCOUNTAB ILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W. Jefferson Bvld South Bend. Indiana 46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov CITY OF SOUTH BEND I OFF ICE OF THE CLERK facility, new offices, and a training lab . Current taxes are eight-hundred thirty-three ($833) dollars per year. If the abatement is granted, first-year (1 st) taxes would be one-thousand two hundred ($1,200) dollars, which would increase to six-hundred thousand ($600,000) over six (6) years and to four-point-seven ($4,700,000) million over twenty (20) years. Brian Henry, 404 South Frances Street, South Bend, Indiana, 46617, advised that the corporation is a third-generation family business and that the current facility limits its growth. Committee Chair Tomas Morgan requested questions from the Committee. Citizen Member Kanczuzewski asked if the current facility would be sold. Brian Henry responded that the current facility would be sold. Committee Chair Tomas Morgan asked when the new facility would be completed. Brian Henry responded that the new facility would be completed by summer 2024. Committee Chair Tomas Morgan requested questions from the Council. Councilmember Lee asked if any jobs would be created. Brian Henry responded that the aim is to grow the workforce. Councilmember Hamann praised the company's workforce diversity and asked Erik Glavich to explain the job creation point system. Erik Glavich responded that they would confirm the point system with the municipal code but that removing job creation points would not lower the abatement. Committee Chair Tomas Morgan held the public hearing. Peter Agostino, 131 South Taylor Street, South Bend, Indiana, 46601 , advised that he appreciates the recognition of a long-term family business that created two hundred and ten (210) union jobs. Committee Member Wax motioned to send Bill No. 23-03 to the full Council with a favorable recommendation, seconded by Citizen Member Kanczuzewski and carried by a vote of four (4) ayes, with one (1) committee member absent. Committee Chair Tomas Morgan-Aye Committee Member Wax-Aye Committee Member Warner -Aye Citizen Member Kurzhal-Absent Citizen Member Kanczuzewski-Aye Committee Member Henry Davis Jr. -Absent Bill No. 23-09-A Resolution Confirming a Tax Abatement for Property Located at 536 South Main, South Bend, Indiana EXCELLENCE ACCOUNTAB ILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W. Jefferson Bvld South Bend. Indiana 46601 p 574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 2 CITY OF SOUTH BEND I OFFICE OF THE CLER K Erik Glavich advised that the petitioner invest more than two ($2,000,000) million dollars to convert a vacant eight (8) unit apartment building affected by fires into a twelve (12) unit complex. Some units will be reserved for low to moderate-income households. Two hundred and ten thousand ($210,000) dollars would be abated during the eight (8) year abatement period. Two hundred fifteen thousand ($215 ,000) dollars would be collected in tax annually after ten ( 1 0) years. Councilmember Hamann asked about the oversight for commitments to retain local contractors. Erik Glavich responded that no formal monitoring system exists, but discussions are ongoing with petitioners regarding commitments. Committee Chair Tomas Morgan held the public hearing, and nobody spoke. Citizen Member Kanczuzewski motioned to send Bill No. 23-09 to the fu ll Council with a favorable recommendation, seconded by Committee Member Wax and carried by a vote of four (4) ayes, with one (1) committee member absent. Committee Chair Tomas Morgan-Aye Committee Member Wax-Aye Committee Member Warner -Aye Citizen Member Kurzhal-Absent Citizen Member Kanczuzewski-Aye Bill No. 23-10-A Resolution Designating a Tax Abatement for Property Located at 7468 Voorden Parkway, South Bend, Indiana Erik Glavich advised that the petitioner, California-based chemical distributor Coast Southwest Inc., wishes to relocate their distribution center to South Bend and is requesting a ten (10) year abatement for a vacant lot. The petitioner would invest eight-point-two ($8 ,200,000) million dollars in a one-hundred thousand ($100,000) square foot faci lity. First- year taxes would be thirteen hundred ($1 ,300) dollars, in comparison to nine hundred forty ($940) dollars without the abatement. Three-point-two-five ($3 ,250,000) million dollars in taxes would be collected after twenty (20) years. Olivia Cimo, 7468 Borden Parkway, Coast Southwest Inc.'s General Manager, advised that the company is a third-generation family business founded by her grandfather in 1985. She, her brother, and her father graduated from the University of Notre Dame. Committee Chair Tomas Morgan requested questions from the Committee. Committee Member Wax asked how many jobs would be created during the second expansion phase. Olivia Cimo responded that between forty (40) and fifty (50) would be possibly added. Committee Chair Tomas Morgan requested questions from the Council. Councilmember Hamann asked if additional infrastructure is required, such as utility connections or roads. EXCELLENCE ACCOUNTABILITY INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227W. Jefferson Bvld South Bend. lndiana46601 p 574.235.9221 f574.235.9173 TTD574.2355567 www.southbendin.gov 3 CITY OF SOUTH BEND I OFFICE OF THE CLERK Olivia Cimo responded that the local construction company retained advised that no additional infrastructure would be required. Committee Chair Tomas Morgan held the public hearing, and nobody spoke. Committee Member Wax motioned to send Bill No. 23-10 to the full Council with a favorable recommendation, seconded by Committee Member Warner and carried by a vote of four ( 4) ayes, with one (1) committee member absent. Committee Chair Tomas Morgan-Aye Committee Member Wax-Aye Committee Member Warner-Aye Citizen Member Kurzhal-Absent Citizen Member Kanczuzewski-Aye With no further business, Committee Chair Rachel Tomas Morgan adjourned the Community Investment Committee meeting at 5:02 p.m. Rachel Tomas Morgan, Committee Chair NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Aux.iliary Aid or Other Scn•kcs may I~ Available upon Request at No Chari.:c. Please i;vc Reasonable Advance Rcc1ucst whim Possible EXC ELLE NCE I ACCOUNTABI LITY INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227W. Jefferson Bvld South Bend. Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 4