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Home My WebLink About03-10-2025 Community Investment Committee Minutes SignedOFFICE OF THE CITY CLERK BI ANCA L. T IRADO, CITY CLERK COMMUNITY INVESTMENT Committee Members Present: Committee Members Absent: Other Council Present: Others Present: Presenter(s): Agenda: MARCH 10, 2025 5:00 P.M. Troy Warner, Karen L. White*, Sherry Bolden-Simpson, Ophelia Gooden-Rodgers, Thomas Gryp, Kaine Kanczuzewski None Canneth Lee, Rachel Tomas Morgan Bianca L. Tirado, Matthew Neal, Bob Palmer Erik Glavich, Caleb Bauer Bill No. 25-1 7 -Confirming Resolution - Real Property Tax Abatement for 254 71 Cleveland Road Bill No. 25-1 8 -Confirming Resolution - Vacant Building Tax Abatement for 425 South Michigan Street Bill No. 25-19 -Confirming Resolution - Real Property Tax Abatement for 425 South Michigan Street Bill No. 08-25 -Authorizing the City to Issue One or More Series of its Taxable Economic Development Tax Increment Revenue Bonds and Approving and Authorizing Other Actions in Respect Thereto in Connection With the J. C. Hart Development Project 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=392508 INTE GRITY I SERVICE I ACC ESS IBILITY Ma1thc1r Neal D EPI.JTY O TY QERK / DIRECTOR OF POLICY Man;,ircl Colsc h DIRECTOR OF SPEGAL PROJECTS EXCELLE NC E ACCOUNTABILITY INN OVATI ON INCLU SION 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 CITY CLERK Committee Chair Troy Warner called to ord er the Community Investment Committee meeting at 5:00 p.m. Bill No. 25-17 -Confirming Resolution -Real Property Tax Abatement for 25471 Cleveland Road Erik Glavich, Director of Growth and Opportunity, with offi ces on the 14th flo or of the County- City Building, stated that Bill No. 25-1 7 is a seven-year (7) real pro perty tax abatement fo r property located at 2547 1 Cleveland Road. The property will be the new headquarters fo r HRP Construction, allowing them to co nsolidate all operations within the region into one (1) location in South Bend . The project will all ow HRP Constru ction to retain fo rty-eight ( 48) full-time jobs and create six (6) new fu ll-time jobs. The property's pre-proj ect estimated annual taxes are six thousand one hundred and forty-two dollars ($6 , 142), whereas after th e proj ect, the estimated annual taxes are one hundred thirty-two thousand three hundred and seventy-five doll ars ($132,375). The petitioner's total investment in the project is seven million three hundred thousand dollars ($7,300,000). Matt Cain, HRP Construction, 5777 Cleveland Road, South Bend, I 46628, was present for questions. Committee Chair Warner held the public hearing and nobody spoke. Committee Chai r Warner thanked the petitioner. Committee Member Sherry Bolden-Bolden Simpson thanked the petiti oner. Coun cil Presid ent Cann eth Lee thanked the petitioner. Committee Vice Chair White thanked the Department of Community In vestment. Committee Member Ophelia Gooden-Rodgers moved to send Bill No. 25-20 to the Full Co uncil with a favorable recommendatio n, whic h was second ed by Committee Chair Warner and carri ed by a vote of six (6) 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 Citizen Me mber Thomas Gryp -Aye Citizen Member Kaine Kanczuzewski -Aye Bill No. 25-18 -Confirming Resolution -Vacant Building Tax Abatement for 425 South Michigan Street Bill No. 25-19 -Confirming Resolution -Real Property Tax Abatement for 425 South Michigan Street Committee Chai r Warner move, without objection to hear Bill Nos. 25-18 and 25-19 together. Erik Glavich, Director of Growth and Opportunity, wi th offices on the 14th floor of the County- City Building, stated that Bill No. 25-1 8 is a two-year (2) vacant building tax abatement for property located at 425 South Michigan Street, and Bill No . 25-19 is a ten-year (10) real property EXCELLENCE ACCOUNTABILITY INNOVATION INCLU SION 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 CITY OF SOUTH BE DI OFFICE OF THE CITY CLERK tax abatement for property located at 425 South Michigan Street. The property is the former 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 . 25-18 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. 25-19 abates new taxes generated by the project for the next ten ( 10) years while still accruing more tax revenue than would be accumulated without the renovation project and tax abatements. Sarah Hill, petitioner, 1512 Wayne Street, South Bend, IN 46615, was present for questions. Citizen Member Thomas Gryp requested information regarding the project. Sarah Hill stated that in the next two (2) years they would like to see the activation of two (2) store fronts , a restaurant, and an art market with the capacity to sell alcoholic beverages. Citizen Member Gryp asked what the total cost would be for the project. Sarah Hill stated that the overall estimated cost for the project is one million four hundred thousand dollars ($1,400,000). Committee Chair Warner held the public hearing and nobody spoke. Committee Member Sherry Bolden-Bolden Simpson thanked the petitioner. Committee Vice Chair Karen White thanked the petitioner. Committee Chair Warner thanked the petitioner. Council President Canneth Lee thanked the petitioner. Committee Member Bolden-Simpson moved to se nd Bill No. 25-1 8 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 Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye Citizen Member Thomas Gryp -Aye Citizen Member Kaine Kanczuzewski -Aye Committee Vice Chair White moved to send Bill No. 25-19 to the Full Council with a favorable recommendation, which was seconded by Committee Member Gooden-Rodgers and carried by a vo te of six (6) 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 Citizen Member Thomas Gryp -Aye Citizen Member Kaine Kanczuzewski -Aye EXCELLENCE I ACCOUN TABILITY I INNOVATION I INCLU 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.southbend1n.gov CITY OF SOU1 H BEND I OFFICE OF THE CITY CLERK Bill No. 08-25 -Authorizing the City to Issue One or More Series of its Taxable Economic Development Tax Increment Revenue Bonds and Approving and Authorizing Other Actions in Respect Thereto in Connection With the J. C. Hart Development Project Caleb Bauer, Executive Director of Community Investment, with offices on the 14th floor of the County-City Building, stated that Bill No. 08-25 authorizes the issuance of taxable economic development tax increment revenue bonds for J.C. Hart's Riverwalk Project. The bonds are developer-backed; therefore, the risk of the bond falls onto the developer rather than the City in the case of a bond default. The Riverwalk project aims to create two hundred and ninety-one (291) apartments as well as a three hundred and ninety-eight (398) space parking garage. The minimum private investment for the project is sixty-one million five hundred thousand dollars ($61 ,500,000). The debt service payments will be funded through the future tax payments of this singular development. J.C Hart anticipates completing construction by the end of 2028. Citizen Member Gryp requested information regarding the developer. Caleb Bauer stated that the owner of the property is Holiday Corporation and they selected J.C. Hart to be the developer of the project. Citizen Member Kanczuzewski asked if there is any uncertainty regarding the Readi Grant funds that have yet to be received. Caleb Bauer stated that he does not have any uncertainty regarding the funds. Committee Chair Warner requested infonnation regarding infrustructure. Caleb Bauer stated that the broader redevelopment of the area will likely exceed the funds received from the Readi Grant; however, the Readi Grant funds should be able to cover the current phase of the project. Council Vice President Rachel Tomas Morgan requested infonnation regarding project based TIFs. Caleb Bauer stated that this is the first (1 st) recent usage of a project based TIF; although, project based TIFs are common throughout Indiana. Committee Chair Warner held the public hearing and nobody spoke. Committee Chair Warner thanked the petitioner. Andy Rampola, Barnes and Thornburg, 201 South Main Street, South Bend, [ 46601 , stated that project based TIFs have become common throughout [ndiana and the risk does not fall ontu the City. Citizen Member Kanczuzewski moved to send Bill No. 08-25 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 Karen L. White -Aye Committee Member Ophelia Gooden-Rodgers -Aye Committee Member Sherry Bolden-Simpson -Aye EXCELLENCE ACCOUNTABILITY I INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 1227 W Jefferson Blvd. I South Bend, Indiana 46601 I p 574.235.9221 If. 574.235.9173 1 www.southbendin.gov I ~ CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Citizen Member Thomas Gryp -Aye Citizen Member Kaine Kanczuzewski -Aye With no further business, Committee Chair Troy Warner adjourned the Community Investment Committee meeting at 5:33 p.m. Respectfully Submitted, ~~ Troy Warner, Committee Chair NOTICE FOR Hf.ARINC AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Scn•iccs ma}' be Available upon Rtt1ucst at No Ch:.in!<'• Please 1,:ivc Reasonable Advance Rct1ucs1 when Pos.siblc EXCELLENCE I ACCOUNTABILITY INNOVATI ON I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W. Jefferson Blvd. I South Bend, Indiana 46601 I p. 574.235.9221 If. 574.235.91731 www.southbendin.gov