HomeMy WebLinkAbout07-13-15 Community InvestmentCOMMUNITY INVESTMENT JULY 13, 2015 3:30 P.M.
Committee Members Present: Gavin Ferlic, Henry Davis (XAB), Dr. David Varner, Dr. Fred Ferlic
Citizen Members Present: Bob Emery (AB), Pat Mullin (AB)
Other Council Present: Tim Scott, Valerie Schey, Oliver Davis (AB), Karen White,
Derek Dieter
Others: Chris Fielding, Richard Deahl, Brock Zeeb, Scott Ford,
Jeff Spoonhower. Matt Powell, Jeremy McClintock,
Randy Rompola, Beth Leonard
Agenda: Bill No. 15 -57 Designating Tax Abatement — Jeffrey & Mary
Spoonhower 824 N. St. Peter St. (5 Year Res.
Abatement)
Bill No. 15 -58 Designating Tax Abatement— GLC Portage
Prairie (8 Year Real Property)
Bill No. 15 -59 GLC Portage Prairie, Lease with South Bend
Redevelopment Commission
Bill No. 15 -60 Confirming Resolution Tax Increment for
Erskine Village in 2016 May be Allocated other
Respective Taxing units
Bill No. 15 -61 Approve Issuance of Lease Rental Revenue
Refunding by SB Redevelopment and Eddy
Street Commons Project
Bill No. 15 -62 Approve the Disposition of Real Property
Located at 51190 & 51270 Mayflower Rd.
Gavin Ferlic, Chair of the Community Investment Committee, called the hearing to order, recognized a
quorum present and began with bill 15 -57, the first of six bills scheduled for review.
Bill 15 -57 was a petition for a 5 year residential tax abatement for a home to be built at 824 N. St. Peter.
Brock Zeeb from the Community Investment Department made the presentation. He confirmed all
abatement requirements had been met by the petitioner Jeff Spoonhower. Mr. Spoonhower was
present to answer any questions.
Only Valerie Schey had a question. She wondered if homes to be built in this area were eligible for
abatement. Brock assured her they were.
With no other questions Dr. Varner motioned the bill be referred favorably. Dr. Ferlic seconded and all
supported. Bill 15 -57 was sent favorably.
Gavin suggested bill 15 -58, 15 -59 and 15 -62 be heard together for purposes of presentation and
consideration. These bills are related to a spec built distribution facility of 200,000 sq. ft. for GLC
Portage Prairie representing an investment of over $7.25 million.
Chris Fielding from the Cl Department presented the particulars warranting an 8 year real property
abatement. The abatement petition itself was contained in bill 15 -58.
Bill 15 -59 was a resolution requesting a 5 year lease between GLC and the City.
Mr. Fielding was assisted by Richard Deahl, an attorney representing GLC. They explained the lease with
the City at a greatly reduced rate per sq. foot, significantly below market rate was necessary to mitigate
the risk for GLC. Typically lenders are reluctant to lend money on spec buildings such as this without the
guarantee of a lessee. According to Chris Fielding there is a ready market for this type of space. As it is
leased the City portion will be lessened ultimately to zero.
Bill 15 -62 a companion to the others represents the Council giving approval to the Board of Public Works
to sell the City owned parcels on which the distribution facility would be built.
At the committee level only one set of motions was required to forward all three bills.
Dr. Ferlic made the initial motion to forward 15 -58, 15 -59 and 15 -62 favorably to full Council. Gavin
Ferlic offered a second. All supported.
Brock Zeeb made the presentation for the next bill on the agenda 15 -60. This was a resolution to meet a
state law requirement of TIF funds to the various taxing units in Erskine Village allocation area 3.
After the brief presentation there being no questions Dr. Varner motioned a favorable recommendation.
Dr. Ferlic followed with a second which all supported.
The final item on the agenda was bill 15 -61 which was a bond refinance request for approval.
Randy Rompola, an attorney representing the Redevelopment Authority explained that if these 2008
Eddy Street Bonds were refinanced the savings due to the lower interest rate over the remaining 18 year
life of the bond would be over 3 million dollars.
Again Dr. Varner made the motion to send favorably. Dr. Ferlic seconded and all affirmed.
There being no other business, Gavin Ferlic adjourned at 4:02 p.m.
Respectfully Submitted,
Gavin Ferlic, Chairperson
Community Investment Committee