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Home My WebLink About11-25-2024 Community Investment Committee Meeting Minutes O4SpUTH 8 � U` O W ,a r' a 1865 OFFICE OF THE CITY CLERK BIANCA L. TIRADO, CITY CLERK COMMUNITY INVESTMENT November 25, 2024, 3:40 P.M. Committee Members Present: Troy Warner, Rachel Tomas Morgan, Ophelia Gooden-Rodgers, Sherry Bolden- Simpson, Thomas Gryp, Kaine Kanczuzewski Others Present: Bianca L. Tirado, Elivet Quijada-Navarro, Matthew Neal, Talia Thornton, Bob Palmer, James Luk Presenter(s): Michelle Adams,Joe Molnar, Chris Dressel Agenda: Bill No. 24-38- Resolution Denying the Issuance of a Scrap Metal Dealer License Application for Pegasus National Bill No. 24-39- Designating Resolution- 530 South Michigan Street Vacant Building Tax Abatement Bill No. 24-40- Designating Resolution- 530 South Michigan Street Real Property Tax Abatement Bill No. 24-41 - Resolution Approving an Order of the South Bend Plan Commission Approving Certain Declaratory Resolutions and Amended and Restated Development Plans Adopted by the South Bend Redevelopment Commission Members marked with an asterisk (*) are in virtual attendance. Please note the attached link for the meeting recording: https:Hdocs.southbendingov/WebLink/browse.aspx?dbid=0&mediaid=388371Hdocs.southbendingov/WebLink/browse.aspx?dbid=0&mediaid=388371 Committee Chair Troy Warner called to order the Community Investment Committee meeting at INTEGRITY SERVICE I ACCESSIBILITY Elivet Quijada-Navarro Mattliew Neal Talia J.Thoniton CUHEF OF STAFF/GIIEF DEPUTY QTY CLERK DEPUrY CITY CLERK/DIRECroR of POLICY DIRECTOR of SPECIAL PRojECTs EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Blvd.I South Bend,Indiana 466011 p.574.235.92211 f.574.235.9173 1 www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK 3:40 p.m. Bill No.24-38-Resolution Denying the Issuance of a Scrap Metal Dealer License Application for Pegasus National Michelle Adams,Business License Administrator,with offices on the 131h floor of the County-City building, stated that Pegasus National Inc., located at 1201 S. Sheridan Street, South Bend,IN,has submitted a new application for a Scrap Metal Dealer License. The application is currently under review by the South Bend Police Department (SBPD), the Fire Inspection Bureau,Neighborhood Resources, and the Zoning Department. During the review, Neighborhood Resources identified that the property does not meet the fencing requirements outlined in Section 4-51 L2B of the Construction Standards& Specifications.Additionally,the location is within one thousand(1,000) feet of another business, raising further compliance concerns. The Zoning Administration classified the proposed activity as heavy industrial use. Therefore, Pegasus National Inc. must apply for a special exception to proceed. This special exception requires approval from both the Board of Zoning Appeals and the Common Council before the license can be issued. Bob Palmer, Council Attorney,with offices on the 4`h floor of the County-City building, stated that an appeal process would be available if the bill is denied; however, he clarified that he would not be involved in handling that process. Citizen Member Thomas Gryp inquired whether Pegasus National Inc. operates a scrap metal business at any other location. Michelle Adams responded that, to her knowledge, they do not. Citizen Member Kaine Kanczuzewski then asked whether Pegasus is the property owner or a subtenant. Erik Glavich, Director of Growth and Opportunity, with offices on the 14th floor of the County- City Building,explained that while two(2)businesses currently operate on the property,their exact relationship remains unclear. He emphasized, however, that the scrap metal license is specifically affiliated with Pegasus National Inc. Committee Chair Warner held the public hearing, and nobody spoke. Committee Vice-Chair Rachel Tomas Morgan motioned to send Bill No. 24-38 to the Full Council with a favorable recommendation, which was seconded by Committee Member Sherry Bolden- Simpson 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. 24-39- Designating Resolution - 530 South Michigan Street Vacant Building Tax Abatement and Bill No. 24-40- Designating Resolution - 530 South Michigan Street Real Property Tax Abatement 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 CITY CLERK Committee Chair Warner stated that Bill Nos. 24-39 and 24-40 would be heard together unless there were any objections. Joe Molnar,Vice President of the Board of Public Works, with offices on the 13th floor of the County-City building, stated that EmpowerHer Development is dedicated to revitalizing the Monroe Park neighborhood through a significant investment in the historic Hope Rescue Building, located at 530 South Michigan Street. Originally built in 1923, the project will unfold in two phases with a total private investment of one million, six hundred thirty-one thousand, five hundred dollars ($1,631,500). In the first phase, a portion of the building will be renovated to create a shared commercial kitchen and food market. The second phase will focus on converting the remaining square footage into a boutique hotel. This redevelopment aims to boost the local economy, with businesses operating in the space expected to hire at least eight(8)new full-time employees and retain three (3) existing full-time positions. To support this initiative, the project will benefit from two tax abatements: a two-year(2-year)Vacant Building Tax Abatement and an eight-year(8) Mixed-Use Development Real Property Tax Abatement. These abatements represent significant savings, allowing EmpowerHer to focus more resources on the renovation. For comparison, the total investment of one million, six hundred thirty-one thousand, five hundred dollars ($1,631,500) is projected to bring substantial long-term economic benefits to the Monroe Park area, including increased employment opportunities and a revitalized historic landmark. Jasmine Bradley, the petitioner representing 530 South Michigan Street in South Bend, expressed her enthusiasm for addressing food access in the community through this project. She emphasized that the development will be particularly beneficial for local entrepreneurs and farmers, and the food market will accept WIC and SNAP benefits, making it accessible to low-income residents. Committee Member Ophelia Gooden-Rodgers inquired about the timeline for the project. Jasmine Bradley explained that they plan to begin Phase One (1) in the fall of twenty 2025, with Phase Two (2), involving commercialization, set to conclude by the fall of 2027. Committee Member Gooden-Rodgers congratulated Jasmine on her progress and success, she also asked for clarification on the concept of a boutique hotel. Jasmine Bradley explained that a boutique hotel offers a smaller, more unique lodging experience compared to traditional hotels. Committee Vice-Chair Tomas Morgan thanked Jasmine for her investment in the community and inquired about the relationship between Herstoric and the other building on the property. Jasmine Bradley noted that Herstoric already owns the Monard Building and has partnered to purchase the Hope Building, with plans to develop the space together. Committee Vice-Chair Tomas Morgan also asked whether there would be a request for redevelopment funds. Jasmine Bradley confirmed that she has applied for the READI grant and intends to seek additional funding. 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 v` CITY OF SOUTH BEND OFFICE OF THE CITY CLERK Joe Molnar added that if the READI 2.0 grant is awarded, there will likely be city involvement through Tax Increment Financing (TIF) dollars. Citizen Member Thomas Gryp asked how the private funds are being organized. Jasmine Bradley stated that while they have secured a few private investors, they are still actively seeking additional investment. When asked if the project would remain viable without the READI 2.0 grant, she assured the committee that they are pursuing alternative funding through loans and other grants to ensure the project's sustainability even if the grant is not awarded. Committee Chair Warner held the public hearing, and nobody spoke. Committee Member Ophelia Gooden-Rodgers motioned to send Bill No. 24-39 to the Full Council with a favorable recommendation, which was seconded by Citizen Member Kaine Kanczuzewski 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 Committee Member Bolden-Simpson motioned to send Bill No. 24-40 to the Full Council with a favorable recommendation, which was seconded by Citizen Member Kaine Kanczuzewski 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. 24-4I - Resolution Approving an Order of the South Bend Plan Commission Approving Certain Declaratory Resolutions and Amended and Restated Development Plans Adopted by the South Bend Redevelopment Commission Chris Dressel, Senior Planner, with offices on the 141h floor of the County-City building, stated that Tax Increment Financing (TIF) is a financial tool used to fund economic development, infrastructure improvements,and community projects.It allows the city to capture future increased tax revenue generated by developments within a designated TIF district. These funds are then reinvested into eligible projects to further stimulate growth. TIF districts are periodically adjusted to fund new priorities,capture value from ongoing developments,and extend retail and community opportunities. Being within a TIF district or on the Acquisition List does not mean property taxes or tax rates will increase, nor does it indicate the city intends to purchase the property. The zoning and permitted use of the property will also remain unchanged. Inclusion on the Acquisition List simply gives the city greater flexibility in negotiating with property owners if necessary. Public information meetings will be held on December 10 and 11, 2024 at various locations in South Bend. These sessions will cover the TIF adjustment process, proposed expansion areas, and their impact on the community.Residents can attend at the NNN Community Center,German Township Library, River Park Library, and Innovation Park at Notre Dame. For more information, contact 574.235.5847 or email planning@southbendin.gov. 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 CITY CLERK Citizen Member Kanczuzewski inquired about any long-term plans for the expiration of the River West TIF district. Chris Dressel clarified that the current amendments to the TIF district do not introduce new expiration dates; the existing expiration dates remain unchanged. Citizen Member Kanczuzewski also asked whether the River West TIF district will expire at the end of 2024. Matt Eckerle, from Baker Tilly Municipal Advisors, with offices at 8365 Keystone Crossing Suite 300, Indianapolis, IN 46240, confirmed that the expiration date for the River West area will not be altered by the proposed changes. Citizen Member Gryp asked about any new building plans related to the timeline of the Bill. Chris Dressel responded that while there are no new plans now, the team remains confident that development will occur soon. Citizen Member Gryp also raised a question regarding Portage Manor, to which Chris Dressel stated there were no updates related to that property in the current TIF district update. Committee Chair Warner held the public hearing. Jorden Giger, 302 S. Falcon Street, South Bend,IN 46619, asked for the justification for including areas with no planned development in the TIF update. Chris Dressel explained that the expansion is necessary to add properties to the Riverfront Development District. A total of two hundred (200) parcels are being included in this update, and these areas have been assembled over several months before being brought to public hearings. Jorden Giger also inquired about why unused funds from the TIF district do not go into the City's general fund. Chris Dressel clarified that the funds are directed toward infrastructure and community needs,such as road improvements, rather than being allocated to the general fund. Committee Member Bolden-Simpson asked about the total acreage of the TIF district. Chris Dressel admitted he did not have the exact figure but stated he would bring that information to the 7 PM meeting. Committee Vice-Chair Tomas Morgan motioned to send Bill No. 24-41 to the Full Council with a favorable recommendation,which was seconded by Committee Chair Troy Warner 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 BEND i OFFICE OF THE (1"11-CLERK With no further business, Committee Chair Warner adjourned the Personnel & Finance Committee meeting at 4:18 p.m. Respectfully Submitted, Troy Warner, Committee Chair 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