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HomeMy WebLinkAbout07-27-09 Community and Economic Development Committee~C_ ~'-4' "'~.. ~i ~---~'~ COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE Chairperson Rouse called the July 27, 2009 meeting of the Community and Economic Development Committee to order at 3:00 p.m. The following Committee Members were present: Henry Davis; Jr. -Vice-President; Ann Puzzello; Karen White; Steve Cooreman, Citizen Member Other Councilmember's Present: Tom LaFountain; Derek Dieter; David Varner; Oliver Davis; Al "Buddy" Kirsits Other's Present: Gary Gilot; Paul Phair; Bob Matia; Bill Schalliol; Rita Kopala; Martha Lewis; Marti Wolfson; Jeff Parrott; Charlotte Pfeifer; Mayor Steve Luecke Agenda: Bill No. 09-48 -Tax Abatement -Waggoner Farm Development, L.P. (Ontario Partners, L.P.) Bill No. 09-55 -Amendment AEDC Bill No. 09-56 -Amendment SBCDA Bill No. 09-48 -Tax Abatement -Waggoner Farm Development, L.P. (Ontario Partners, L.P.) This is a petition filed by the Holladay Corporation fora 9 year real property tax abatement. The project is an evolutionary development of their Portage Prairie Waggoner Farm Development. Committee Chair Rouse asked Bob Mathia to give the staff report. He noted the proposed construction, estimated to cost $5,000,000, was for a $157,000 sq. ft. building. The building was to be leased to a company for uses yet to be determined. Bob further reported that while the petitioner has requested a nine year abatement the Community & Economic Development staff calculated the abatement should be 6 years. This was based on the Public Benefit Point System. Chairperson Rouse allowed the petitioner, in the person of Paul Phair, to make a presentation. Phair explained the proposed spec. bldg. was to mirror an earlier spec. bldg. built with a 9 year abatement now totally leased. The abatement previously enjoyed and now requested would allow Holladay to market to prospective occupants more competitively. Front end costs for both the developer and the occupant would be spread out. In answer to questions from both Timothy Rouse and Karen White, Phair said the fu119 years was necessary for a level competitive playing field. Six years would not work. He said it would be difficult to proceed with a six year abatement. Councilmember Varner commented that on a net lease the occupant would pay the lower abated taxes helping the start-up lessee. Opening the public comment portion Chairperson Rouse found none in support; but several ready to oppose the abatement. Chris Springer representing the Carpenter's Union said that over the last three years the Holladay Corp. has sub- contracted construction work to HRG, a company which does not pay union wages. Brad Murphy representing 850 carpenters echoed Springer's claims. Marti Wolfson said the usual criteria the Council uses to evaluate abatement requests did not apply here. Spec. projects, he said do not allow the Council any measurable benefits to consider. He called this abatement corporate welfare for the Holladay Corp. Chairperson Rouse allowing rebuttal gave Mr. Phair the chance to defend these claims. Phair said their developments typically use 70-90% union labor. Then he reiterated the 9 year abatement was necessary to compete along the toll road corridor. Chairperson Rouse reminded the Committee that the issue was not union vs. non-union, but was prevailing wage paid. Henry Davis then moved for sending the bill to Council with no recommendation. Karen White seconded and all supported save Steve Cooreman, one of the citizen members of the Community and Economic Development Committee. Bill No. 09-55 -Amendment AEDC This bill would add properties to the acquisition list allowing the orderly expansion of Ivy Tech over the next 20 years. Handouts detailed the area Chairperson Rouse recognized David Relos from the City's Community and Economic Development Department to make the presentation. Relos said this bill simply allowed the city to expand the boundaries of the AEDA so that properties could be purchased using TIF money. These parcels would allow the needed expansion of the IVY Tech campus. He added similar measures had already been approved by both the Redevelopment Commission and the Area Plan Commission. Chairperson Rouse turned to the Committee recognizing Henry Davis who asked how TIF projects were prioritized. He asked if this would negatively impact progress in LaSalle Square. The Mayor responded saying over $2 million was and continues to be set aside for LaSalle Square development. David Relos said development opportunities therefore funding priorities rise and fall. Councilmember White suggested the Council needed a LaSalle Square development update saying commitments were made and more than a one time infusion was needed. Councilmember White then motioned the bill be sent favorably. It was seconded by Councilmember Puzzello and supported by all. Bill No. 09-56 -Amendment SBCDA Chairperson Rouse recognized Bill Schalliol of the Community and Economic Development Department to make the presentation. Schalliol reported that the South Bend Redevelopment Commission conducted a study of the Central Development Area concluding five additional properties be added to the Coveleski Park Planning Area. This would allow orderly development of the area. Schalliol provided a map of the area. Councilmember Puzzello motioned approval. Councilmember White followed with a second and all supported a favorable recommendation. There being no further business to come before the committee, Chairperson Rouse adjourned the meeting at 3:58 p.m. Respectfully Submitted, ~?~~ Timothy A. Rouse, Chairperson Community and Economic Development Committee