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Home My WebLink About07-22-2024 Community Investment Meeting MinutesOFFICE OF THE CITY CLERK BIANCA L. TIRADO, CITY CLERK COMMUNITY INVESTMENT Committee Members Present: Committee Members Absent: Others Present: Presenter( s): Agenda: JULY 22, 2024 4:40 P.M. Troy Warner, Rachel Tomas Morgan*, Ophelia Gooden Rodgers, Sherry Bolden- Simpson, Kaine Kanczuzewski, Thomas Gryp None Bianca L. Tirado, Elivet Quijada-Navarro, Matthew Neal, Samuel Turck, Bob Palmer, Canneth Lee, Sheila Niezgodski Caleb Bauer, Jeb Reece Bill No. 33-24 -Economic Development Loan-Lincoln Park Project (Substitute) Bill No. 34-24 -Economic Development Loan-Southeast Neighborhood Project Bill No. 24-24 -Declaratory Resolution - Real Property Tax Abatement 711-713 Leland Avenue Members marked with an asterisk (*) are in virtual attendance. Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=382880 Committee Chair Troy Warner called to order the Community Investment Committee meeting at 4:00 p.m. Substitute Bill No. 33-24 -Economic Development Loan-Lincoln Park Project Committee Member Sherry Bolden-Simpson motioned to accept the Substitute Bill No . 33-24, seconded by Committee Member Rachel Tomas Morgan and carried by a vote of six (6) ayes. Elivc t Quijada-Nawm o CJ IIEF DEPCTY CITY (1.rnK INTEGRITY I SERVICE I ACCESS IBILITY Matthew Neal D EPCTY / DIRECrOR OF POLICY Samuel Turck DIRl'CTOR OI' SPEC I.IL OF PROJl•:crs EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W Jefferson Blvd. I South Bend, Indiana 46601 I p. 574.235.9221 I f. 574.235.9173 1 www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CLERK Committee Chair Troy Warner -Aye Committee Vice Chair Rachel Tomas Morgan -Aye Committee Member Ophelia Gooden Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye Committee Member Kaine Kanczuzewski -Aye Committee Member Thomas Gryp -Aye Caleb Bauer, Executive Director of Community Development, with offices on the 14th floor of the County-City Building, spoke regarding Substitute Bill No. 33-24. This plan would allow for ninety-two (92) homes to be built in the Lincoln Park Neighborhood. All of these homes are going to be built on vacant lots. A CDC named Intend Indiana will build the houses. The loan from the City would be five million dollars ($5 ,000,000) over five years paired with twenty-five million dollars ($20,000,000) of private investment. Jeb Reece, Associate Director of Land Banking and Strategic Planning at Intend Indiana, with offices at 1704 Bellefontaine St., Indianapolis, IN 46202, spoke in support of Substitute Bill No . 33-24. -- Citizen Member Kaine Kanczuzewski asked about the price of the homes, whether there is a commitment to build all ninety-two (92) homes, and whether the income-dependent homes will be built first. Caleb Bauer stated that the 40 income-qualified homes will be front-l oaded, but there is not a specific order as of now. Jeb Reece stated that the first bracket of homes are being sold at one hundred and thirty-five thousand dollars ($135 ,000). The second income bracket is sold at one hundred and seventy-five thousand dollars ($175,000). Ben Harris, Director of Real Estate Development at Intend Indiana, with offices at 1704 Bellefontaine St., Indianapolis, IN 46202, spoke in support of Substitute Bill No. 33-24. Ben Harris stated that Intend Indiana has contacted the Lincoln Park Neighborhood and is preparing resources for the community to receive these homes. Citizen Member Kanczuzewski asked for clarification on the investment. Jeb Reece answered that they will be seeking additional loans from local banks. Citizen Member Thomas Gryp asked if Intend Indiana has found a general contractor. Jeb Reece answered no. Citizen Member Gryp asked when the project would start. Jeb Reece answered sometime around Halloween. Citizen Member Bolden-Simpson asked if the project would use union labor. Caleb Bauer stated that union labor is not required, but there is a verbal agreement to use local contractors. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W. Jefferson Blvd. South Bend, Indiana 46601 p. 574.235.9221 f. 574.235.9173 www.southbendin.gov CITY OF SOUTH BEND OFFICE OF THE CLERK Citizen Member Kanczuzewski stated that it would be very difficult to use an entire urnon workforce on a project of this size in South Bend. Caleb Bauer stated that the majority of unionized labor is focused on commercial construction. With unprecedented levels of commercial construction happening in the City, local union labor does not have the capacity to add on a project of this size. Committee Member Gooden Rodgers thanked the petitioners and welcomed them to the 2nd District. Committee Member White thanked the petitioners for providing affordable housing that matches the neighborhood. Ben Harris stated that if communities are going to build generational wealth, it is important for their homes to look like the rest of the neighborhood. Councilmember Canneth Lee requested a copy of the presentation and asked if the homes would be distributed evenly throughout the neighborhood. Caleb Bauer stated that lower-income families prosper when in mixed-income neighborhoods. Councilmember Lee asked about education about acquiring these homes and good homeownership practices. Jeb Reece stated that Intend Indiana has not identified what organizations it will partner with. The goal is to have these classes in central locations like neighborhood centers or churches. The homeownership classes would start as soon as construction begins. Committee Member Gooden Rodgers asked where these classes will be located. Ben Harris answered that locations have not been selected. Committee Member Bolden-Simpson stated that Intend Indiana should contact the faith community. Councilmember Niezgodski asked about the layout of the homes. Caleb Bauer stated that eight (8) different models with different sizes of homes are currently approved. This will allow for some other styles of homes while still blending into the neighborhood. Committee Chair Warner held the public hearing and nobody spoke. Committee Vice Tomas Morgan motioned to send Substitute Bill No. 33-24 to the Committee of the Whole with a favorable recommendation which was seconded by Committee Member Gooden Rodgers and carried by a vote of six ( 6) ayes. Committee Chair Troy Warner -Aye Committee Vice Chair Rachel Tomas Morgan -Aye Committee Member Ophelia Gooden Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye Committee Member Kaine Kanczuzewski -Aye Committee Member Thomas Gryp -Aye EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W. Jefferson Blvd. South Bend, Indiana 46601 p. 574.235.9221 f. 574.235.9173 www.southbendin.gov CITY OF SOUTH BE D OFFICE OF THE CLERK Substitute Bill No. 34-24 -Economic Development Loan-Southeast Neighborhood Project Committee Member Sherry Bolden-Simpson motioned to accept the Substitute Bill No. 33-24, seconded by Committee Member Rachel Tomas Morgan and carried by a vote of six (6) ayes. Committee Chair Troy Warner -Aye Committee Vice Chair Rachel Tomas Morgan -Aye Committee Member Ophelia Gooden Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye Committee Member Kaine Kanczuzewski -Aye Committee Member Thomas Gryp -Aye Caleb Bauer, Executive Director of Community Development, with offices on the 14th floor of the County-City Building, spoke regarding Substitute Bill No. 34-24. This plan would allow thirty (30) homes to be built in the Lincoln Park Neighborhood. All of these homes are going to be built on vacant lots. The homes will be built by a local CDC named 466 Works. The loan from the City would be three and a half million dollars ($3,500,000) over three (3) years paired with five million and two hundred thousand dollars ($5,200,000) of private investment. Charlotte Pfeifer, a Board Member of 466 Works, 1013 W Washington Street, South Bend, IN 46601 , spoke in support of the resolution. Ann Mannix, 724 W Washington Street, South Bend, IN 46601 , spoke in support of the resolution and stated that people are excited about these homes. Ann Mannix noted that over fifty percent (50%) of the applicants of these homes are in the low-income bracket. Caleb Bauer stated that loans like this grow the City economy and benefit local employers. Committee Member Gryp asked about the cost of building the homes. Ann Mannix stated the homes are about two hundred fifty thousand dollars ($250,000) per home and thanked the Council for considering this loan, as this is the first project of its kind to possibly receive a loan. Charlotte Pfeifer stated that the community is continuing to grow. Committee Member Bolden-Simpson asked if the homes would have basements. Ann Mannix stated yes. Citizen Member Kanczuzewski asked about what the homes will cost. Ann Mannix answered one hundred and seventy thousand dollars ($170,000). Committee Chair Warner opened the public hearing and nobody spoke. Citizen Member Kanczuzewski motioned to accept the Substitute Bill No. 34-24, seconded by Committee Member Gooden Rodgers and carried by a vote of five (5) ayes and one (1) Committee Member absent. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W. Jefferson Blvd. South Bend. Indiana 46601 p_ 574.235.9221 f. 574.235.9173 www.southbendin.gov CITY OF SOUTH BEND OFFICE OF THE CLER K Committee Chair Troy Warner -Aye Committee Vice Chair Rachel Tomas Morgan -Absent Committee Member Ophelia Gooden Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye Committee Member Kaine Kanczuzewski -Aye Committee Member Thomas Gryp -Aye Committee Chair Warner motioned to send Bill No. 34-24 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Member Bolden-Simpson, and carried by a vote of five (5) ayes, and one (I) Committee Member absent. Committee Chair Troy Warner -Aye Committee Vice Chair Rachel Tomas Morgan -Absent Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Sherry Bolden-Simpson -Nay Committee Member Kaine Kanczuzewski -Aye Committee Member Thomas Gryp -Aye Bill No. 24-24 -Declaratory Resolution -Real Property Tax Abatement 711-713 Leland Avenue Erik Glavich, Director of Growth and Opportunity with offices on the 14th floor of the County- City Building, spoke regarding Bill No . 24-24. When it is completed, the new tax benefit from this property will go from two thousand seven hundred twenty dollars ($2,720) to eleven thousand eight hundred and seventy-six dollars ($11 ,876) per year. The petitioners intend to turn this home into a breakfast restaurant and residential unit. Amanda Shutts-Crowne, 701 Portage Avenue, South Bend IN 46616, owns this parcel. This location will be a walkable market for the surrounding neighborhood. Committee Member Bolden-Simpson stated that the petitioners should contact the Pastor of Saint Paul Bethel Missionary Baptist Church, which abuts the property, and asked where the residents will park. Amanda Shutts-Crowne stated that the parking would be in the carriage house in the rear. Councilmember Lee asked when the construction would start. Amanda Shutts-Crowne stated as soon as possible. Committee Chair Warner held the public hearing and nobody spoke. Citizen Member Kanczuzewski motioned to send Bill No. 24-24 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Member Bolden-Simpson and carried by a vote of five (5) ayes and one (1) Committee Member absent. Committee Chair Troy Warner -Aye Committee Vice Chair Rachel Tomas Morgan -Absent Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Sherry Bolden-Simpson -Nay Committee Member Kaine Kanczuzewski -Aye Committee Member Thomas Gryp -Aye Committee Chair Warner requested that Caleb Bauer give the details of Bill No. 24-23 revoking the tax abatement for 300 E LaSalle Avenue. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W. Jefferson Blvd. South Bend, Indiana 46601 p. 574.235.9221 f. 574.235.9173 www.southbendin.gov CITY OF SOUTH BEND \ OFFICE OF THE CLERK Caleb Bauer stated that the bill proposes revocation of the 300 E LaSalle tax abatement due to noncompliance with the abatement terms we had sent forward. In the thirty (30) day cure period allotted by municipal code, the developer did not contact the City. On the thirty-first (31st) day, contact was made, and the developer will meet with the City prior to the next Common Council meeting. With no further business, Committee Chair Troy Warner adjourned the Community Investment Committee meeting at 5:35 p.m. Respectfully Submitted, Troy Warner, Committee Chair NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Olhcr Scn·icc5 may he A,·ailablc upon Request al No Charge. Please gi\•c Rcasonahk Ad,,ancc Request when Polliblc EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W Jefferson Blvd. South Bend. Indiana 46601 p. 574.235.9221 f. 574.235.9173 www.southbendin.gov