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Home My WebLink About02-24-2025 Community Investment Committee Minutes SignedOFFICE OF THE Cr-fY CLERK BI ANCA L. T IRADO , CITY CLERK COMMUNITY INVESTMENT Committee Members Present: Committee Members Absent: Other Council Present: Others Present: Presenter(s): Agenda: FEBRUARY 24, 2025 4:45 P.M. Troy Warner, Karen L. White, Ophelia Gooden-Rodgers, Sherry Bolden-Simpson None Dr. Oliver Davis Bianca L. Tirado, Elivet Quijada-Navarro, Matthew ea!, Bob Palmer Erik Glavich Bill No. 25-14 -Designating Resolution - Vacant Building Tax Abatement for 425 South Michigan Street Bill No. 25-15 -Designating Resolution - Real Property Tax Abatement for 425 South Michigan Street Bill No. 25-16 -Designating Resolution - Real Property Tax Abatement for 254 71 Cleveland Road Please note the attached link for the meeting recording: h ttps :// docs.south bendin.gov/Web Link/browse.aspx? dbid=0&mediaid=391908 Committee Chair Troy Warner called to order the Community [nvestment Committee meeting at 4:45 p.m. Bill No. 25-14 -Designating Resolution -Vacant Building Tax Abatement for 425 South Michigan Street Bill No. 25-15 -Designating Resolution -Real Property Tax Abatement for 425 South Michigan Street INTEGRITY I SERVICE I ACCESSIBILITY Matthew Neal D EPlJTY 0TY QERK I D IRECTOR OF POU CY M;m~~u"CI Colsch D IRECTOR OF SPEOAL PROJECTS EXC ELLEN CE ACCO UNTABILITY INNOVATION ! INCLUSION EMPOW ERMENT 455 County-City Building 1227 W. Jefferson Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov (~ CITY OF SOlTirI BEND I OFFICE OF TI-IE CITY CLERK Committee Chair Warner move, without objection to hear Bill Nos. 25-14 and 25-15 together. Erik Glavich, Director of Growth and Opportunity, with offices on the 14th floor of the County- City Building, stated that Bill No. 25-14 is a two-year (2) vacant building tax abatement for property located at 425 South Michigan Street, and Bill No. 25-15 is a ten-year (10) real property tax abatement for property located at 425 South Michigan Street. The property is the fonner Inwoods building, which was purchased in 2022 by Penny Hill Homes LLC, a female-owned company based in South Bend. The building has been vacant since 1999, and the project will provide a mixture of creative and commercial spaces. Bill No. 25-14 will allow the petitioner to invest in their project the majority of the annual six thousand seven hundred and sixty-four dollars ($6 ,764) they would pay in taxes. Bill No . 25-15 abates new taxes generated by the project for the next ten ( l 0) years while still accruing more tax revenue than would be accumulated without the renovation project and tax abatements. Sarah Hill, petitioner, 1512 East Wayne Street, South Bend IN 46615, was present for questions. Committee Vice Chair Karen White requested information regarding the petitioner's experiennce owning the Monroe Street Art Studios building. Sarah Hill stated that they have been able to fill vacant store fronts and also provide space for local artists for many years. Committee Chair Warner asked if the petitioner would be ready for the scale of the project. Sarah Hill stated that she has rennovation experience and the building is structurally sturdy. Committee Member Ophelia Gooden-Rodgers requested information regarding the project timeline. Sarah Hill stated that they hope to acti vate the first (1 st) floor within two (2) years. Committee Member Sherry Bolden-Simpson asked how detenninations are made regarding what is salvageable. Sarah Hill stated that the first (1 st) step is removing debris. Committee Chair Warner held the public hearing and nobody spoke. Committee Chair Warner thanked the petitioner. Committee Member Gooden-Rodgers moved to send Bill No. 25-14 to the Full Council with a favorable recommendation, which was seconded by Committee Vice-Chair White and carried by a vote of four ( 4) ayes. Committee Chair Troy Warner -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye Committee Member Bolden-Simpson moved to send Bill No. 25-15 to the Full Council with a favorable recommendation, which was seconded by Committee Vice-Chair White and carried by a vote of four (4) ayes. EXCELLENC E ACCOUNTABILITY INNOVATION INCLUSION EMPOWERM ENT 455 County-City Building 1227 W Jefferson Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 1 f. 574.235.9173 1 www.southbendm.gov CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Committee Chair Troy Warner -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye Bill No. 25-16-Designating Resolution -Real Property Tax Abatement for 25471 Cleveland Road Erik Glavich, Director of Growth and Opportunity, with offices on the 14th floor of the County- City Building, stated that Bill No . 25-16 is a seven-year (7) real property tax abatement for property located at 25471 Cleveland Road. The property will be the new headquarters for HRP Construction, allowing them to consolidate all operations within the region into one (1) location in South Bend. The project will allow HRP Construction to retain forty-eight ( 48) full-time jobs and create six (6) new full-time jobs. The property's pre-project estimated annual taxes are six thousand one hundred and forty-two dollars ($6,142), whereas after the project, the estimated annual taxes are one hundred thirty-two thousand three hundred and seventy-five dollars ($132,375). The petitioner's total investment in the project is seven million three hundred thousand dollars ($7,300,000). Jered Baker, petitioner, 5777 Cleveland Road, South Bend, IN 46628, stated that HRP Construction is a local company that has been in South Bend since 1980. This project is a great opportunity to consolidate HRP Construction's operations. Nancy Knapik, petitioner, 5777 Cleveland Road, South Bend, IN 46628, stated that HRP Construction plans on remaining within South Bend. Committee Member Gooden-Rodgers asked how many employees they have, and requested information regarding the pay rate of their positions. Nancy Knapik stated that they currently have forty-eight ( 48) full time employees, and is looking to add four ( 4) to eight (8) new jobs. The minimum pay rate for office workers is eighteen dollars an hour ($18/hr), and the pay rate for operators is forty-six dollars and ninety cents an hour ($46.90/hr). Committee Member Bolden-Simpson requested information regarding HRP Constructions operations. Jered Baker stated that HRP Construction 1s an excavating company that does site work excavations, and sewer installations. Councilmember Dr. Oliver Davis asked what the petitioner believes has led to their growth. Jered Baker stated that they have seen growth as South Bend has seen growth and as their competition has begun falling off due to a barrier of entry and restrictive audits. Nancy Knapik stated that HRP Construction's good reputation has also led to their growth. Councilmember Dr. Davis asked if HRP Construction has worked with South Bend schools. Jered Baker stated that HRP Construction has not worked with South Bend schools. Councilmember Dr. Davis asked if HRP Construction offers internships or apprenticeships. EXCELLENC E ACCOUNTABILITY I INNOVATI ON INC LU SION EMPOWERMENT 455 County-City Building 1227 W. Jefferson Blvd. I South Bend, Indiana 46601 Ip 574.235.9221 If. 574.235.91731 www.southbendin.gov (~) Cn-Y OF SOUTH BEND I OFFICE OF THE CITY CLERK ·:...:.,,;, Nancy Knapik stated that HRP Co nstruction is continuously looking for new young workers, and would appreciate a contact with the South Bend school system . Committee Chair Warner held the public hearing and nobody spoke. Committee Chair Warner thanked the petitioner. Committee Member Gooden-Rodgers mo ved to send Bill No. 25-16 to the Full Council with a favorable recommendation, which was seconded by Committee Member Bolden-Simpson and carried by a vote of four ( 4) ayes. Committee Chair Troy Warner -Aye Committee Vice Chair Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye With no further business, Committee Chair Troy Warner adjourned the Community Investment Committee meeting at 5: 10 p.m. Respectfully Submitted, Troy Warner, Committee Chair NOTICE 1-'0R HEARING AND SIGHT IMPAIRED PERSONS Auxili:1ry Aid or Other Services may Ix-A,·ailablc upon Rct1ucst at No Char<,!C. Please give Reasonable Advance Request when Possible EXC ELLENCE I ACCOUNTABILITY INNOVATI ON INC LU SION I EMPOWERMENT 455 County-City Building 1227 W. Jefferson Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 I f. 574.235.9173 1 www.southbendin.gov