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REGULAR MEETING October 9, 2017 17-68 A RESOLUTION SETTING A PUBLIC HEARING TO CONSIDER SUPERSEDING A CONFIRMATORY RESOLUTION AND MODIFYING AND CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 23464 ADAMS ROAD, SOUTH BEND, IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A REAL PROPERTY TAX ABATEMENT FOR GLC SBDC II, LLC Councilmember Gavin Ferlic, Chair of the Community Investment Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Dan Buckenmeyer, Director of Business Development,the Department of Community Investment,with offices on the 14th Floor of the County-City Building, South Bend, IN, served as the presenter of this bill. Mr. Buckenmeyer stated, This is a different flavor than what we have been talking about. We are asking for a modification of an existing tax abatement. We always want to use the best tool in our tool box in our efforts to attract, retain, and expand businesses in South Bend,bringing in investment and job opportunities. About a year ago, a tax abatement was approved for this site. The tax abatement followed an old model that was the only model we had in use at that time. Since that time, as the Council knows, we have updated some of our methodologies and some more aggressive tax abatement tools, so we want to implement that best tool, since this site, in that time since the old abatement was granted,has not built upon. We really want to excelerate that to get a critical piece of real estate inventory, here in South Bend. We did have an instance,just a few months ago, where a potential manufacturer was looking at us—we were one (1) of the finals—and they announced recently that they're going to help Alabama, where they have a ready facility to move into. It's a great opportunity to have this available. It would be a unique piece of inventory. It would be instrumental in bringing the next business to South Bend. DCI proposes a modification of the current nine (9) year tax abatement into a six (6) year tax abatement that's a little more aggressive. During this time, the petitioner will recognize tax savings of over$1,000,000,but on about a$10,000,000 investment. The petitioner will,though,pay about$250,000 in taxes during that term of the abatement. Jeff Smoke, Great Lakes Capital, 112 West Jefferson Boulevard, South Bend, IN, thanked the Council and stated, We look to capitalize on the success and the momentum out there. Councilmember Jo M. Broden asked, If you could address—and you did this in committee, but—the missed opportunities, but then also, in layperson's terms, the financial hiccup that you ran into with regard to this project. Mr. Smoke responded that engaging with banks without a tenant is difficult to do and that the tax abatements help banks feel more secure in lending for the project. This being the time heretofore set for the Public Hearing on the above bills, proponents and opponents were given an opportunity to be heard. There were none from the public wishing to speak in favor of or opposition to these bills. Councilmember Dr. David Varner stated, The money that will be paid over that time is inconsequential because the TIF is quite honestly flush with cash. Going forward, I think we are pushing an envelope that I'm not sure I want to go much further upon. So, when you speak with your development partners about opportunities in the future, I'm not trying to throw this on the table all the time, as a Redevelopment Commissioner. Councilmember Dr. Varner stated that twenty-five (25) years prior, tax abatements were the only way to attract development. He stated that there comes a point,though,where the City should be an attractive enough entity to render the use of tax abatements unnecessary. 26