HomeMy WebLinkAbout03-10-14 Community InvestmentCOMMUNITY INVESTMENT MARCH 10, 2014 3:30 P.M.
Committee Present: Gavin Ferlic, Valerie Schey, Henry Davis, Derek Dieter
Other Council Present: Tim Scott, Dr. Fred Ferlic, Dr. David Varner, Oliver Davis, Karen White
Others Present: Scott Ford, Jitin Kain, Cecil Eastman, John Murphy, Eric Segal, Don Fozo,
Brad Toothaker, Rich Deahl, Chris Fielding, John Voorde
Agenda: 1. Bill No. 15 -14 Approving Resolution South Bend Economic
Development Commission, Target Area (Hill & Colfax)
2. Bill No. 16 -14 Approving Resolution South Bend Economic
Development Commission, Target Area (LaSalle Hotel)
3. Bill No. 14 -18 Designating Abatement (10 Yrs.)
237 N. Michigan St. —Great Lakes Development
4. Bill No. 14 -17 Designating Abatement (10 Yrs.)
Noble Americas South Bend Ethanol LLC.
Gavin Ferlic, Community Investment Committee Chair, with a quorum present opened the meeting
recognizing Scott Ford, Director of Community Investment Department. Scott addressed the Committee
asking if bills 16 -14 and 14 -18, both dealing with the LaSalle Hotel project could be presented and
considered together. Gavin granted permission. Scott briefly described the project describing it as a
complicated public /private collaboration to restore the LaSalle to an apartment building having 59 units
and commercial /retail space on the first two floors. He said the City owned property vacant for 10 years
and underutilized for two decades before that now could be returned to the tax rolls, continuing recent
investment momentum in the Central Business District. Part of the public /private collaboration was the
agreement by the City to offer a tax abatement. To do a abatement the Council was being asked on bill
16 -14 to approve the LaSalle site as eligible for abatement. Bill 14 -18 would follow asking Council's
approval of a 10 year abatement schedule tailored to be the project.
The project and process involved was described in detail by Rich Deahl, an Attorney representing the
developer, Great Lakes Development. Further details were provided by Brad Toothaker, the principal of
Great Lakes. Basically the $9 million dollar project would ask the City to contribute $1.8 million dollars
to the project. The benefit to the City would be the re -use of significant downtown building, jobs to
repurpose the building, jobs to service the building and additional assessed value among others.
In the public portion, Eric Segal, Carol Davis and Don Fozo spoke urging Council approval.
During the Council portion Henry Davis asked whether the jobs created would use local labor. Brad
Toothaker pledged 75% of the project would be local. Not quite satisfied, Henry moved for no
recommendation. There was not a second. Valerie Schey moved to send favorably, Gavin seconded and
all agreed except Henry. Both bills were sent favorably in this manner.
Moving next to bill 15 -14, Gavin recognized Jitin Kain from Community Investment to make the
presentation. Jitin explained the need for the Council again to designate an area at Hill and Colfax as
eligible for abatement. The contingent proposal was, one to build a new apartment building on the site.
The prospect of an abatement was seen vital to the developer going ahead.
On a motion by Valerie Schey, seconded by Gavin Ferlic and this time affirmed by all, the bill was sent to
full Council favorably.
The final bill 14 -17, was a request to approve a 10 year tax abatement for Noble Americas South Bend
Ethanol LLC.
Gavin noted a letter from the petitioner had been received asking Council consideration be delayed until
March 24, 2014.
On a motion by Valerie Schey, seconded by Henry Davis and agreed to by all, the bill was continued until
March 24, 2014.
Gavin adjourned the meeting at 3:57 P.M.
Respectfully Submitted,
G%
Gavin Ferlic, Chairperson,
Community Investment Commission