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Home My WebLink About12-09-2024 Community Investment Meeting Minutes 4 UTH q PEACE U b'. w a 1865 OFFICE OF THE CITY CLERK BIANCA L. TIRADO, CITY CLERK COMMUNITY INVESTMENT DECEMBER 9, 2024, 5:45 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): Joseph Molnar Agenda: Bill No. 24-42—Confirming Resolution— 530 South Michigan Street Vacant Building Tax Abatement Bill No. 24-43 —Confirming Resolution— 530 South Michigan Street Real Property Tax Abatement Members marked with an asterisk (*) are in virtual attendance. Please note the attached link for the meeting recording: https:Hdocs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=388622 Committee Chair Troy Warner called to order the Community Investment Committee meeting at 5:45 p.m. Bill No. 24-42—Confirming Resolution —530 South Michigan Street Vacant Building Tax Committee Chair Warner motioned to hear Bills No. 24-43 and 24-43 together, 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 INTEGRITY I SERVICE I ACCESSIBILITY Elivct Quijada-Navarro Matthew Neal Talia J.Thormott QREF OF STAFF/Q-QEF DEPUTY QTY CLERK DEPUTY QTY CLERK/DIREcfoR of POLICY DIREcroR of SPEQAL PRolEcrs EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Blvd.I South Bend,Indiana 466011 p.574.235.92211 f.574.235.91731 www.southbendin.gov CITY OF SOUTH BEND OFFICE OF THE CITY CLERK Joseph Molnar, Vice President of the Board of Public Works, with offices on the 131h floor of the County-City building, stated the property is a vacant old historic building bult in 1923 located on the south part of downtown. The business is seeking a vacant building tax abatement for two (2) years and a mixed-used development real property tax abatement for eight(8)years, which would incentivize renovating the building for a commercial kitchen food market and hotel chain, creating at least eight (8) new full time employees and investment worth one million, six hundred thirty- one thousand,five hundred dollars($1,631,500).The vacant building tax abatement will lower tax by eleven thousand, one hundred nineteen dollars ($11,119)over two (2)years and the mixed-use development real property tax abatement would lower tax by ninety-three thousand,seven hundred twenty two dollars($93,722)over eight(8)years. The abatements would incentivize rehabilitating the building, which is not believed to be able to survive the next few years if it does not receive this investment.After ten(10)years,the city will see taxes increase from one hundred six thousand, nine hundred thirty-four dollars ($106,934)to two hundred ninety seven thousand, seven hundred seventy three dollars ($297,773) with the abatement of the project going forward as planned. Citizen member Thomas Gryp enquired about consequences relating to the abatement if the developer is unable complete the project. Joseph Molnar stated there is no consequence for the mixed-use development real property tax abatement and there would be a loss of eleven thousand, one hundred nineteen dollars ($11,119) in value from the vacant building tax abatement if the project is incomplete, but the risk is worth the investment to rehabilitate the building. Committee Chair Warner stated the building is near demolition in the next decade and tax abatements are some of the best economic tools for the city to spur development as it does not require the city to spend tax dollars. Joseph Molnar stated helping individuals bring life back into troubled properties is why the vacant building tax abatement was designed. Committee Member Sherry Bolden-Simpson enquired about the petitioner's progress in application for the READI grant program. Joseph Molnar stated the READI 2.0 grant is a state grant program that leverages public-private partnerships to help development projects across Indiana.The petitioner submitted the application with support from city staff and a letter from the Mayor's Office. The issue date for the grant is December 18, 2024. Committee Chair Warner stated the READI grant requires the local government to match twenty percent(20%)of the state's grant. The tax abatement value can be used toward that match amount. Committee Vice-Chair Rachel Tomas Morgan enquired about the timeframe for construction. Joseph Molnar stated the designation period for the real property tax abatement is three (3)years. Committee Vice-Chair Tomas Morgan enquired if there was already funding from the Redevelopment Commission for this project. 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 'tk CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Joseph Molnar stated that portion of the development is not ready yet, but TIF funding will likely be requested from the Redevelopment Commission. Committee Chair Warner held the public hearing, and nobody spoke. Committee Vice-Chair Rachel Tomas Morgan motioned to send Bill No. 24-42 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 Committee Member Ophelia Gooden Rodgers motioned to send Bill No. 24-43 to the Full Council with a favorable recommendation, which was seconded by Committee Vice-Chair 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 With no further business, Committee Chair Warner adjourned the Personnel & Finance Committee meeting at 5:52 p.m. Respectfully Submitte , 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