HomeMy WebLinkAbout07-25-2022 Community InvestmentOFFICE OF THE CITY CLERK
D AW.\! M.JONES, CrT v CLERK
COMMUNITY INVESTMENT
Committee Members Present:
Others Present:
Presenters:
Agenda:
JULY 25, 2022, 4:25 P.M.
Rachel Tomas Morgan, Henry Davis Jr., Eli Wax,
Kaine Kanczuzewski, Tomas Kurzhal
Dawn Jones*, Victoria Trujillo, Justin LePla, Bob
Palmer
Mark Bemenderfer, Pam Myers,
Angela Smith, Tim Corcoran, Deborah Peters, Ron
Gatton
Bill No. 22-35 -Tax Abatement for 505 S. Michigan
St., South Bend, IN , Monreaux, LLC.
Bill No. 22-31 -A Resolution of the Common
Council Approving and Adopting the Near West
Side Neighborhood Plan (Substitute)
Members marked with an asterisk(*) are present digitally
Please note the attached link for the meeting recording:
https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=356035
Committee Chair Tomas Morgan called to order the Community Investment Committee
meeting at 4:27 p.m.
Bill No. 22-35 -Tax Abatement for 505 S. Michigan St., South Bend, IN, Monreaux, LLC.
Mark Bemenderfer, Manager of Business Development, with offices on the fourteenth ( 14th) floor
of the County-City building, presented Bill No. 22-35. The petitioner requested a tax abatement
for a sixty-five thousand square-foot (65,000) building on an empty plot on the comer of Michigan
and Monroe Streets. The plot was donated by the city. The four (4) story building would house
commercial property on its first floor and apartments on all other floors. The development is a
fourteen million-dollar ($14,000,000) investment and the developer is also seeking state tax
credits. Eight (8) full-time positions would be created, averaging two-hundred-seventy thousand
dollars ($270,000) in payroll. The housing units will be made up of seventy-seven percent (77%)
affordable housing, broken up as follows:
• Twenty percent (20%) for tenants at thirty percent (30%) area median income (AMI).
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CITY OF SOUTH BE~D OFFI CE OF THE CLERK
• Eighteen percent ( 18%) for tenants at fifty percent (50%) AMI.
• Twenty-three percent (23 %) for tenants at sixty percent (60%) AMI.
• Seventeen percent (17 %) for tenants at eighty percent (80%)AMI.
Committee Chair Tomas Morgan requested questions from the Committee.
Committee Vice Chair Davis Jr. asked how affordability is calculated.
Mark Bemenderfer responded that rents are based on the AMI.
Committee Member Wax asked about rent increases and if the project would continue if the state
tax credits were not granted.
Deborah Peters, 6700 South Crandon A venue, Chicago, Illinois, 60649, representing the
developer, responded that the rent would increase only if the AMI increased. As affordability is an
important project aspect, an additional tax credit application would be submitted prior to
considering other options.
Citizen Member Kurzhal asked if the lot purchase price has been discussed and if there are fa9ade
and material requirements for the area.
Pam Myers, Chief Neighborhood Officer, advised that the land parcels, appraised at one hundred
seventy-seven thousand dollars ($177,000), would be transferred to the developer for one thousand
dollars ($1,000) each.
Angela Smith responded that the area is zoned as an NC neighborhood center and has minimum
transparency requirements and mandated material and fa9ade standards.
Committee Chair Tomas Morgan asked about the project timeline.
Pam Myers responded that the tax credits would be announced in mid-November 2022, and the
project would commence on July 1, 2023 , to be completed by November 2024.
Committee Chair Tomas Morgan requested questions from the Council.
Councilmember Niezgodski asked if the company is women-owned and operated and requested
additional infonnation on the health and other benefits requirements.
Deborah Peters responded that most employees are women.
Ron Gatton, l 044 East 49 Street, Chicago, Illinoi s, 60615, representing the developer, advised that
the primary loan is insured by the Federal Housing Administration which requires meeting certain
construction standards. Once the tax credits are approved, the project will enter a tender process.
The Davis Bacon Act mandates providing benefits or a cash equivalent to laborers without.
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.crrv OF SOUTH BEND OFFICE OF THE CLER K
Committee Chair Tomas Morgan asked if anyone from the public wished to speak in favor of
or in opposition to Bill No. 22-35.
Clerk Jones responded that no one ( l) from the public wished to speak in favor of or in opposition
of the bill.
Committee Chair Tomas Morgan asked for final questions from the Committee.
Committee Member Davis Jr. asked if any of the affordab le housing COVID federal funds wou ld
cover the project, if the city provided monetary support, and if local contractors would be
considered.
Pam Myers responded that the city would provide one point five million dollars ($1,500,000) in
support. ft is unclear if any COVID funding would support the project. Local contractors would
be considered.
Committee Member Davis Jr. motioned to send Bill No. 22-35 to the full Council with a
favorable recommendation, which was seconded by Citizen Member Kanczuzewski and
carried by a vote of five (5) ayes.
Committee Chair Tomas Morgan-Aye Committee Member Wax-Aye
Committee Member Davis Jr. -Aye Citizen Member Kurzhal-Aye
Citizen Member Kanczuzewski-Aye
Bill No. 22-31-A Resolution of the Common Council Approving and Adopting the Near
West Side Neighborhood Plan (Substitute)
Committee Chair Tomas Morgan entertained a motion to accept the substitute Bill No. 22-31. A
roll call was not required.
Committee Member Wax motioned to accept Substitute Bill No. 22-31, which was seconded
by Citizen Member Kurzhal and carried, as none (0) opposed.
Tim Corcoran, Director of Planning, with offices on the fourteenth ( 14) floor of the County-City
building, advised that the history museum area was updated with graphics and revisions were made
to the brownfield language in response to Committee and resident environmental concerns. A
brownfield is land previously developed that may be contaminated and may only be used as parks,
redeveloped, or redeveloped with restrictions, such as Ignition Park. Boundaries were added to
identify properties of concern such as the 1500 Washington site.
The neighborhood plan encompasses a five (5) to twenty (20) year period and acts as a guide for
decision-makers. It is based on community engagement and includes infrastructure, housing, parks
and open spaces, zoning, and specifics requested by residents. Images are only indicative.
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.CI TY OF SOUTH BEi\"D OFFI CE OF THE CL ERK
The engagement process commenced in March 202 l with more than thirteen hundred (1300)
mailers distributed, several stakeholder meetings, and an online engagement platfonn. The main
principles identified were that the neighborhood should be urban and walkable, attractive, healthy,
equitable, and sustainable.
The plan includes traffic calming zones, trail expansions, bicycle infrastructure, possible
expansion of the historic district which would facilitate federal repair grants, and zoning
amendments. The latter infonns future Council action and would be completed separately from
the neighborhood plan. Revisions include rezoning from U l to U2 to allow multiple family units
and NC to UF to allow a mix of family use, commercial, and office spaces.
Committee Chair Tomas Morgan requested questions from the Committee.
Citizen Member Kanczuzewski asked about the timing for the separate zoning process and
requested examples of William Street improvements.
Tim Corcoran responded that the separate zoning process required notifying property owners and
may be completed by early 2023. The William Street improvements could include beautification,
lighting, and traffic-calming. Resident consultations will be held.
Committee Chair Tomas Morgan requested questions from the Council.
Councilmember White thanked the planners for addressing the brownfield concerns, as her family
grew up in the area and a sister passed away from brain cancer at nineteen ( 19) years of age and
asked what prompted the language revisions.
Tim Corcoran responded that the language revisions were a result of the concerns heard from the
public and the Council. Although the planners felt that an explanation was provided, perhaps the
language was not sufficiently explicit, and the industrial reuse was not adequately explained.
Councilmember Lee asked about the estimated economic impact.
Tim Corcoran responded that although a figure could not be provided, the investment would
facilitate population growth and support local businesses.
Committee Chair Tomas Morgan asked if anyone from the public wished to speak in favor of
Bill No. 22-31.
Anne Mannox, 724 West Washington, South Bend, Indiana, 46601 , president of the Westside
Neighborhood Association, requested that parks and traffic-calming zones be included. Regarding
environmental concerns, the planners collaborated with the Association, and a meeting with Fannie
Mae will be held on July 26, 2022. The test results are pending.
Jim Bogner, 807 West Washington Street, South Bend, Indiana, 46601, reiterated the need for
urgency in addressing environmental concerns. Sites determined to be contaminated thirty (30)
years ago are still undergoing remediation.
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CIT Y OF SOUTH BEND OFFICE OF THE CLERK
Jonathan Nicoletti, 701 West Lasalle Avenue, South Bend, Indiana, 46601 , advised that he
supports the plan as a new resident.
Committee Chair Tomas Morgan advised that two (2) letters of support were received for the bill
and thanked Anne Mannox and the residents who participated in the consultations.
Committee Chair Tomas Morgan asked if anyone from th e public wished to speak against Bill
No . 22-31.
Clerk Jones responded that no one (1) from the public wished to speak against Bill No. 22-31 .
Committee Chair Rachel Tomas entertained a motion to send Bill No. 22-31. to the full
Council with a favorable recommendation.
Committee Member Wax motioned to send Bill No. 22-31 to the full Council with a favorable
recommendation, which was seconded by Citizen Member Kurzhal and carried by a vote of
five (5) ayes.
Committee Chair Tomas Morgan-Aye Committee Member Wax-Aye
Committee Member Davis Jr. -Aye Citizen Member Kurzhal-Aye
Citizen Member Kanczuzewski-Aye
With no further business, Committee Chair Rachel Tomas Morgan adjourned the Community
Investment Committee meeting at 5:35 p.m.
Respectfully Submitted,
Rachel Tomas Morgan, Committee Chair
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