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Home My WebLink About10-14-2024 Community Investment Meeting Minutes (Signed) pUTH B��O d� al S,l ve.4ce ;`y x x �81�5 i OFFICE OF THE CITY CLERK BIANCA L. TIRADO, CITY CLERK COMMUNITY INVESTMENT October 14, 2024, 3:20 P.M. Committee Members Present: Troy Warner, Rachel Tomas Morgan, Ophelia Gooden-Rodgers, Sherry Bolden- Simpson, Kaine Kanczuzewski*, Thomas Gryp Others Present: Bianca L. Tirado, Elivet Quijada-Navarro, Matthew Neal, Talia Thornton, Bob Palmer, Canneth Lee Presenter(s): Eric Glavich Agenda: Bill No. 24-31 —Confirming Resolution— Real Property Tax Abatement 619 Sherman Avenue, 620 Sherman Avenue, and 1201 %2 - 1023 I/z Lincoln Way West Bill No. 24-32—Designating Resolution— Real Property Tax Abatement 321 West Wayne Street Bill No. 24-23—Designating Resolution— Real Property Tax Abatement 123 North Dr. Martin Luther King Jr. Boulevard Members marked with an asterisk (*) are in virtual attendance. Please note the attached link for the meeting recording: htti)s:Hdocs.southbendin.2ov/WebLink/browse.asox?dbid=0&mediaid=386359 Committee Chair Troy Warner called to order the Personnel& Finance Committee meeting at 4:35 p.m. Bill No. 24-31 —Confirming Resolution—Real Property Tax Abatement 619 Sherman Avenue, 620 Sherman Avenue, and 1201 V2 - 1023 V2 Lincoln Way West Erik Glavich, Director of Growth and Opportunity on the 14th floor of the County-City building, presented a multi-family residential tax abatement request for Property Bros LLC, which owns INTEGRITY I SERVICE I ACCESSIBILITY Ehvet Quijada-Navarro Matthew Neal Taha J.Thonitoli Q-IIEF OF STAFF/GUEF DEPUTY QTY CLERK DEPUTY QTY CLERK/DIRECTOR of POLICY DIRECTOR of SPECIAL PROJECTS EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Blvd.1 South Bend,Indiana 46601 1 p.574.235.92211 f.574.235.9173 1 www.southbendin.gov CITY OF SOUTH BEND OFFICE OF THE CITY CLERK properties at 619 Sherman Avenue, 620 Sherman Avenue, and 12011/2 - 1023`/z Lincoln Way West. This project will enable the petitioner to construct four duplexes at a cost of one point four million dollars ($1,400,000). The Council approved tax abatements for Property Bros in 2023. Currently, the vacant lots generate only six hundred and forty-six dollars ($646) in annual taxes, but following the project, they are estimated to yield a combined annual tax revenue of fourteen thousand eight hundred and seventy-four dollars ($14,874). During the abatement period,the total estimated taxes would amount to one hundred eighteen thousand nine hundred and ninety dollars ($118,990), with one hundred and three thousand one hundred forty-seven dollars ($103,147) in taxes abated and fifteen thousand eight hundred forty-three dollars ($15,843)to be paid. Committee Chair Warner held the public hearing, and nobody spoke. Committee Member Sherry Bolden-Simpson motioned to send Bill No. 24-31 to the Full Council with a favorable recommendation, which was seconded by Committee Vice-Chair Rachel Tomas Morgan and carried by a vote of five (5) ayes with one (1) committee member abstaining. 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-Abstain Bill No. 24-32—Designating Resolution —Real Property Tax Abatement 321 West Wayne Street Erik Glavich, Director of Growth and Opportunity on the 14th floor of the County-City building, stated that the space, formerly known as the "Spenner Garage," has been vacant for some time. Currently owned by Historic Hearthstone LLC, the 17,000-square-foot property aims to undergo rehabilitation to transform it into a family-oriented restaurant with entertainment, as well as office spaces for Indiana Landmarks and South Bend Tradeworks. Indiana Landmarks will retain its three (3) current employees, while South Bend Tradeworks operates with volunteers. The restaurant is expected to create twenty (20) full-time positions, offering an hourly wage of seventeen dollars and eighty-four cents ($17.84).The estimated taxes after the project would be fifty-five thousand three hundred ninety-six dollars ($55,396). Regina Emberton, petitioner at 615 West Colfax Avenue, South Bend, IN 46601, stated that she purchased the property in February and is excited to transition it from its previous use as automotive space to a restaurant and office space. The lower level will be converted into the restaurant area, which will be known as Ivy Alley Brewhouse and will feature duck pin bowling—an exciting addition that is unique to the region. Committee Member Ophelia Gooden-Rodgers asked why the abatement is for ten(10)years. Eric Glavich stated that the ten-year(10)period is intended for the city to implement a more aggressive and longer tax abatement strategy that aligns with city match-up policies. Committee Vice-Chair Tomas Morgan Rachel Tomas Morgan asked if the project would be able to move forward if it were not awarded READI grant funds. 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 ('I1'Y OF SOti'I'Il BEND OFFICE OF THE CITY CLERK Regina Emberton stated that while the project would continue, it might involve scaling back construction. However, the READI grant would help facilitate the start. Councilmember Canneth Lee inquired about the type of restaurant that would be in the building. Regina Emberton clarified that she would not be operating the restaurant, but it will feature a pizza kitchen. Committee Chair Warner held the public hearing, and nobody spoke. Committee Member Gooden-Rodgers motioned to send Bill No. 24-32 to the Full Council with a favorable recommendation, which was seconded by Committee Vice-Chair 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 Bill No. 24-23—Designating Resolution—Real Property Tax Abatement 123 North Dr. Martin Luther King Jr. Boulevard Erik Glavich, Director of Growth and Opportunity on the 14th floor of the County-City building, announced a proposed nine-year(9)year tax abatement for the DoubleTree Hotel located at 123 North Dr. Martin Luther King Jr. Boulevard. The owners,AFP I I I Corp, aim to renovate the guestrooms, bathrooms, restaurant spaces, ballrooms, and meeting rooms. Currently, the hotel employs one hundred and ten (110) full-time staff, and it is anticipated that all will be retained, with the addition of five (5) new positions. Pre-project taxes are estimated at three hundred thirteen thousand and twenty-three dollars ($313,023), while post-project taxes are projected to rise to four hundred forty-eight thousand three hundred eighty-three dollars ($448,383). Over the nine-year(9) abatement period, total estimated taxes will amount to four million thirty-five thousand four hundred and fifty dollars ($4,035,450), with one hundred twenty-two thousand one hundred and twelve dollars($122,112) in taxes abated and three million nine hundred thirteen thousand three hundred and thirty-eight dollars ($3,913,338)to be paid. Michael Hinks, petitioner with offices at 9 Park Place, Great Neck, NY 11024, expressed his gratitude to the council for their consideration. He emphasized that the hotel is a cornerstone of the downtown area and highlighted its strong relationship with the Notre Dame athletic department. Citizen Member Thomas Gryp inquired whether the hotel has previously received a tax abatement from the City. Erik Glavich replied that,to his knowledge, it has not, but he would investigate further. Citizen Member Kaine Kanczuzewski asked how the new machinery is categorized on the application. Erik Glavich explained that new additional audiovisual equipment is listed to assess any updates 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 'Vk ('I'1'Y OF S0171'I 111EIND OFFICE OF THE CITY CLERK needed for fair value. Councilmember Lee then asked how soon the project would begin. Erik Glavich indicated that he believed it would start in the new year. Michael Hinks added that they aim to have everything completed by next fall, ideally by July or mid-August at the latest, with construction beginning in the second week of February. Committee Chair Warner held the public hearing, and nobody spoke. Committee Chair Warner motioned to send Bill No. 24-23 to the Full Council with a favorable recommendation which was seconded by Committee Vice-Chair 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 With no further business, Committee Chair Warner adjourned the Personnel & Finance Committee meeting at 4:58 p.m. Respectfully ubmitted, Troy Warner, Committe air NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services may be Available upon Request at No Charge. Please give Reasonable Advance Request when Possible 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