REGULAR MEETING October 9, 2017
<br /> 17-68 A RESOLUTION SETTING A PUBLIC
<br /> HEARING TO CONSIDER SUPERSEDING A
<br /> CONFIRMATORY RESOLUTION AND
<br /> MODIFYING AND CONFIRMING THE
<br /> ADOPTION OF A DECLARATORY
<br /> RESOLUTION DESIGNATING CERTAIN
<br /> AREAS WITHIN THE CITY OF SOUTH BEND,
<br /> INDIANA, COMMONLY KNOWN AS 23464
<br /> ADAMS ROAD, SOUTH BEND, IN 46628 AS
<br /> AN ECONOMIC REVITALIZATION AREA FOR
<br /> PURPOSES OF A REAL PROPERTY TAX
<br /> ABATEMENT FOR GLC SBDC II, LLC
<br /> Councilmember Gavin Ferlic, Chair of the Community Investment Committee, reported that they
<br /> met this afternoon and send this bill forward with a favorable recommendation.
<br /> Dan Buckenmeyer, Director of Business Development,the Department of Community
<br /> Investment,with offices on the 14th Floor of the County-City Building, South Bend, IN, served
<br /> as the presenter of this bill. Mr. Buckenmeyer stated, This is a different flavor than what we have
<br /> been talking about. We are asking for a modification of an existing tax abatement. We always
<br /> want to use the best tool in our tool box in our efforts to attract, retain, and expand businesses in
<br /> South Bend,bringing in investment and job opportunities. About a year ago, a tax abatement was
<br /> approved for this site. The tax abatement followed an old model that was the only model we had
<br /> in use at that time. Since that time, as the Council knows, we have updated some of our
<br /> methodologies and some more aggressive tax abatement tools, so we want to implement that best
<br /> tool, since this site, in that time since the old abatement was granted,has not built upon. We
<br /> really want to excelerate that to get a critical piece of real estate inventory, here in South Bend.
<br /> We did have an instance,just a few months ago, where a potential manufacturer was looking at
<br /> us—we were one (1) of the finals—and they announced recently that they're going to help
<br /> Alabama, where they have a ready facility to move into. It's a great opportunity to have this
<br /> available. It would be a unique piece of inventory. It would be instrumental in bringing the next
<br /> business to South Bend. DCI proposes a modification of the current nine (9) year tax abatement
<br /> into a six (6) year tax abatement that's a little more aggressive. During this time, the petitioner
<br /> will recognize tax savings of over$1,000,000,but on about a$10,000,000 investment. The
<br /> petitioner will,though,pay about$250,000 in taxes during that term of the abatement.
<br /> Jeff Smoke, Great Lakes Capital, 112 West Jefferson Boulevard, South Bend, IN, thanked the
<br /> Council and stated, We look to capitalize on the success and the momentum out there.
<br /> Councilmember Jo M. Broden asked, If you could address—and you did this in committee,
<br /> but—the missed opportunities, but then also, in layperson's terms, the financial hiccup that you
<br /> ran into with regard to this project.
<br /> Mr. Smoke responded that engaging with banks without a tenant is difficult to do and that the tax
<br /> abatements help banks feel more secure in lending for the project.
<br /> This being the time heretofore set for the Public Hearing on the above bills, proponents and
<br /> opponents were given an opportunity to be heard.
<br /> There were none from the public wishing to speak in favor of or opposition to these bills.
<br /> Councilmember Dr. David Varner stated, The money that will be paid over that time is
<br /> inconsequential because the TIF is quite honestly flush with cash. Going forward, I think we are
<br /> pushing an envelope that I'm not sure I want to go much further upon. So, when you speak with
<br /> your development partners about opportunities in the future, I'm not trying to throw this on the
<br /> table all the time, as a Redevelopment Commissioner. Councilmember Dr. Varner stated that
<br /> twenty-five (25) years prior, tax abatements were the only way to attract development. He stated
<br /> that there comes a point,though,where the City should be an attractive enough entity to render
<br /> the use of tax abatements unnecessary.
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