HomeMy WebLinkAbout04-27-2022 Community Investment,c. )C ~'¢1
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OFFICE OF THE CITY CLERK
D AWN M.joNEs, CrTY CLERK
COMMUNITY INVESTMENT
Committee Members Present:
Others Present:
Agenda:
APRIL 27, 2022, 5:30 P.M.
Rachel Tomas Morgan, Henry Davis Jr., Kaine
Kanczuzewski, Thomas Kurzhal, Eli Wax,
Dawn M. Jones, Bob Palmer, Michael Divita, Kylie
Connell, Kenneth Hardy, Allison Mynsberge,
Alkenya Aldridge, Caleb Bauer, Gemma DiCarlo,
Kathy Schuth, Santiago Garces, Brian Donoghue,
Marlaina Johns
Call to Order and Introductory Comments
Briefing -Department of Community Investment
2021 Annual Report
Questions
Community Investment Leadership Transition
Comments and Sending Forth
Members marked with an asterisk(*) are present digitally
Please note the attached link for the meeting recording:
h ttps ://docs.sou th bendin.gov /W ebLink/browse.as px? dbid=O& mediaid=354568
Committee Chair Rachel Tomas Morgan called to order the Community Investment
Committee meeting at 5:30 p.m.
Briefing -Department of Community Investment 2021 Annual Report
Executive Director of the Department of Community Investment for the City of South Bend,
Santiago Garces, noted the macroeconomic impacts of the COVID-19 pandemic. In 2021 ,
efforts began to recover from the pandemic which included the restoration of the economy.
Between 2020 and 2021, thirty-nine (39) business licenses were not renewed as the businesses
permanently closed due to the pandemic's impact.
The unemployment rate is lower than pre-pandemic levels according to the Oxford Economics
data; however, there has also been a reduction in labor force participation due to factors such
as illness, death, retirement, or lack of child care access. It was noted that the pandemic
affected approximately five (5) years of growth, though the City of South Bend's GDP has
recovered in the past year. The main constraining factor regarding growth is population, as
more people will positively impact growth.
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CITY OF SOUTH BEND OFFICE OF THE CLERK
Caleb Bauer noted that the innovation grants for restaurants was developed in partnership with
the South Bend Regional Chamber of Commerce to reimburse restaurants that purchased
items or equipment to keep customers and employees safe during the pandemic. Restaurants
in the South Bend region were sent a letter to inform them of the program, and in-person
outreach was also done. A total of one hundred and thirty-eight ( 138) grants were awarded
with a two-thousand-dollar ($2,000) grant for each eligible restaurant. Most grants were
utilized for cleaning products, carryout support, or to establish new safety protocols. It was
noted on the report that fifty-six (56) of the one hundred and thirty-eight (138) restaurants are
owned by women. Two (2) videos are available on YouTube that highlight two (2) restaurants
that were awarded the grant.
The COVID-19 recovery revolving loan fund program was initiated by funding of seven
million dollars ($7,000,000) million from the Economic Development agency. The loan will
be distributed to businesses impacted by the pandemic and the funds should be distributed by
the end of the summer. Approximately two hundred and three (203) businesses have applied
for the loan; however, several businesses revoked their application as they preferred a grant
instead of a loan which must be repaid. New frameworks were developed to lend to smaller
businesses, and observations from the program will be implemented in the opportunity fund
and other programs. Approximately less than one million dollars ($1 ,000,000) remains, as the
majority of the loan has been distributed.
Highlights of the recovery revolving loan fund program were shared:
• Supported CJs Pub with extending the new Pub Sauce line of business
• Sunrise Cafe: building acquisition and improvements
• Meraki Beauty: acquisition of property and improvements
• Chimichurri: acquisition of property and improvements
• Neveria Tres Mangos: a fifty-thousand-doll ar ($50,000) loan towards working capital
• Supported improvements and growth in: South Main St, Mishawaka, DTSB, Western,
Lincolnway West, and other locations.
The third (3 rd) program is the Linden Avenue pop-up markets to promote local businesses.
Approximately five hundred (500) residents attended the markets with an average amount of
eleven dollars ($11) spent. Additional pop-up market events wi ll be held on June 11, July 16,
September 10, and October 8, 2022.
Questions
The floor was opened to questions or comments regarding the annual report.
Councilmember Eli Wax noted that there have been significant changes to the Department of
Community Investment over the last several years and inquired how code enforcement is
managed.
Caleb Bauer noted that code enforcement has been renamed to neighborhood services and
enforcement and it is under the neighborhoods team jurisdiction. Pam Myer, the Director of
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CITY OF SOUTH BEND OFFICE OF THE CLERK
Neighborhoods, oversees the neighborhoods team which consists of neighborhood services
and enforcement and the neighborhood development team.
Santiago Garces noted that there are several properties around the City that are in violation of the
code due to zoning and other issues. Regular meetings are held to discuss the issues, and outreach
has been done to match people with housing issues with programs that could assist them. A pilot
program will be developed to assist people in disposing their trash correctly and efficiently.
Councilmember Eli Wax inquired if outreach has been effective in reducing code violations.
Santiago Garces responded that there have been atypical trends in code violations in the past
several years due to the pandemic, including an increase in illegal discarding of waste. Data
illustrating the impact of new measures to mitigate code violations should be avai lable next year.
It was noted that there are assigned staff that conduct housing and structural inspections and staff
that conduct environmental inspections.
In a response to an inquiry, Santiago Garces noted that landlord registration is a program that has
been paused due to a legal challenge. Enforcement actions have been undertaken for RSVP despite
the pause in the landlord registration program. With a resident's consent, an inspection is done
after residents report unsafe conditions. If landlord has not rectified a safety issue, fines are issued.
Unpaid penalties can be sent to collections or legal action can be initiated. The City of South Bend
can foreclose or place a lien on a property on a case-by-case basis.
Councilmember Kaine Kanczuzewski inquired about the development of pre-designed homes for
vacant lot infill.
Caleb Bauer responded that the pre-approved plans will be released in the summer of 2022 and the
planning team has been developing proposals for various types of housing. The plan should reduce
architecture costs and streamline the approval process for zoning.
The pre-approved plans were developed in conjunction with contractors, and it has been used in
cost estimations for the construction of new housing.
Councilmember Hamann highlighted feedback she received regarding the infilling of homes. It
was noted that the two hundred-thousand-dollar ($200,000) cost is beyond affordable housing and
smaller models were preferred. She inquired if additional plans can be obtained to reduce costs
and whether multiple builds can be implemented per city lots.
Santiago Garces noted that the team will be working on a two-townhome (2) model. The value
that a person is willing to pay is lower than the property value which has been an issue.
Affordability is also a challenge. Most new constructions have attempted to address the appraisal
gap. The team has focused on building houses with several units to generate multiple income
streams. The zoning code permits up to four units in a lot plus an accessory dwelling unit. AARP
looks for accessory dwelling units to support seniors, as it allows independent living in close
proximity to other family members.
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CIT Y OF SOUTH BE D OFFIC E OF THE CLERK
Councilmember Hamann inquired if the pop-up market events can be done more frequently to
address the needs of certain communities.
Santiago Garces responded that requests have been sent to the mayor and other officials requesting
assistance to build infrastructure to accommodate pop-up markets. Several businesses that had
started as pop-up markets could potentially become established and support retail stores or
restaurants on Linden A venue.
In response to an inquiry, Santiago Garces noted that there are opportunities to identify strategies
to mitigate dumping and discarding of waste.
Community Investment Leadership Transition
Caleb Bauer wi ll assume the Executive Director's responsibilities upon Santiago Garces'
departure. The selection of the next Executive Director wi ll be at the mayor's discretion. The
Director of Business Development has resigned, and the position title has changed to the
"Director of Growth and Opportunity". The position has been posted on the City of South
Bend's website.
Comments and Sending Forth
Councilmember Hamann thanked Santiago Garces for his patience and thanked him for his
contributions. Councilmember Eli Wax extended his well wishes to Santiago Garces on his
next endeavor. Councilmember Kaine Kanczuzewski thanked Santiago Garces for his
contributions to the City of South Bend. Committee Chair Rachel Tomas Morgan thanked Santiago
Garces for his leadership and contributions during the pandemic and acknowledged their
accomplishments over the past two years.
Santiago Garces expressed his gratitude to the Council, Community Investment Committee,
and community.
With no further business, Committee Chair Rachel Tomas Morgan adjourned the Community
Investment Committee meeting at 6:24 p.m.
Respectfully Submitted,
Rachel Tomas Morgan, Committee Chair
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