HomeMy WebLinkAbout05-26-15 Community InvestmentCOMMUNITY INVESTMENT MAY 26, 2015 4:10 P.M.
Committee Members Present: Gavin Ferlic, Henry Davis, Dr. David Varner (xab),
Dr. Fred Ferlic
Citizen Members Present: Bob Emery lab), Patrick Mullin lab)
Other Council Present: Tim Scott, Valerie Schey (xab), Oliver Davis (xab), Karen White,
Derek Dieter (xab)
Others Present: Brock Zeeb, Chris Fielding, Jacob Alexander, Brian Pawlowski,
Stan Blenke, Sarah Heintzelman, Frank Perri, Randy Rompola,
Rob Miholich, Steve Stokely, Anat Patel
Agenda: Bill No. 15 -31 Des. Tax Abatement —JSK Development Inc.
111 S. St. Joseph St. (2 Year)
Bill No. 15 -32 Des. Tax Abatement —JSK Development Inc.
120 St. Joseph St. (9 Year)
Bill No. 15 -33 Des. Tax Abatement — Tampico Developments
Crescent Oaks, Section 3 (5 Year)
Bill No. 15 -37 Des. Tax Abatement — Schafer Industries Inc.
4701 Nimtz Parkway (5 Year)
Bill No. 15 -38 Des. Tax Abatement— Masterbilt Inc.
325 S. Walnut St. (5 Year)
Bill No. 15 -39 Des. Tax Abatement— Historic JMS Building LLC
110 N. Main St. (10 Year)
Bill No. 15 -41 Amend Resolution No 4339 -14 Approving
Economic Development Facilities for Nobel
Americas South Bend Ethanol LLC
With a quorum present Community Investment Chair Gavin Ferlic called the meeting to order with six
abatement bills on the agenda.
Gavin began by asking the substitute versions of bills 15 -31 and 15 -32 be accepted and that they be
heard together for purposes of a public hearing.
Dr. Ferlic so moved. Gavin seconded and all approved.
Both bills were abatement requests filed by JSK Development were for properties at 111 and 121 S. St.
Joseph St. Bill 15 -31 was a request for a two year tax abatement on a building that was eligible because
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it was vacant. This is the College Football Hall of Fame. The City proposes to sell the building to the
developer to convert it into corporate office, restaurant, and event space in conjunction with a nine
story hotel to be built next door. The hotel abatement request was for nine years. The hotel would cost
an estimated $9.25 million to build having 120 rooms and retail space as well.
Chris Fielding from Community Investment made the presentation. Anat Patel from JSK Development
was present to answer questions.
Henry Davis asked the appraised value and the selling price of the Hall of Fame. Chris said the building
was appraised at $2.4 million and sold for $1.2 million or a 50% discount. This bothered Henry who was
annoyed that Chris would not own up to the fact that $1.2 was left on the table.
Dr. Fred Ferlic asked if there were any other offers. Chris said there was one for the Hall of Fame at $1.5
million but was not parlayed with a hotel.
On motions to send favorably by support from all both bills were forwarded favorably.
Gavin said the nest bill 15 -33 would be continued until June 81" at the request of the petitioner. Proper
motions without dissent sent this request to full Council favorably.
Bill 15 -37 was a request for a five year personal property abatement filed by Schaefer Industries at 1701
Nimtz Parkway. As presented by Brock Zeeb from Community Investment and Stan Blenke from
Schaefer the request for abatement was to offset the $2.5 investment in new machinery to meet
growing business. Sarah Heintzelman from Community Investment added detail to the request.
Following brief Council Q & A, Dr. Ferlic moved for a favorable recommendation Gavin Ferlic seconded.
There was no dissent.
Bill 15 -38 was a request for a five year personal property abatement filed by Masterbilt Inc. of 325 S.
Walnut. They manufacture parts primarily for the aerospace industry. The $600,000 investment in
equipment would keep six jobs and create four more. Rob Miholich a VP at Masterbilt was present to
answer questions subsequent to Chris Fielding's presentation.
After brief discussion Dr. Ferlic motioned for a favorable recommendation Gavin Ferlic seconded. There
was no dissent.
Bill 15 -39 was a 10 year real property abatement request from the Historic JMS Building LLC. Chris
Fielding with the help of Frank Perri, one of the partner developers, described a $7.6 million investment
in the building to convert the office building into 60 -68 market rate apartments.
The project qualifies for abatement in that it is part of the CBD.
Following discussion about the size of the apartments and their rental rate, the proper motions were
made again by the Gavin and Dr. Ferlic and when voted upon to send favorably, passed without dissent.
The final agenda item, bill 15 -41 was explained by Randy Rompola, attorney representing Noble
Americas South Bend Ethanol Plant. He said the previously Council approved inducement resolution in
the amount of $25 million now needed to be in the amount of $50 million. The most important aspect
of the revenue bonds represented here was that the city was not in any way liable should the bonds
default. It was only a state requirement that the city act as a conduit for the issuance that the measure
came before the Council
Steve Stokely, the ethanol plant manager, who was present to answer questions assured Tim Scott the
odors associated with the sludge effluent had been addressed effectively.
Proper motions sent the bill favorably to Council.
Gavin adjourned the meeting at 4:44 p.m.
Respectfully Submitted,
Gavin Ferlic, Chairperson
Community Investment Committee