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REGULAR MEETING MAY 14, 2007 <br />That was in the context of the building owner doing everything possible to move the <br />project ahead in a way that met the requirements of all current tenants of the building and <br />also consistent with their lease as obligation to them. One of the significant elements of <br />this project is that the top four floors will be leased to Baker and Daniels, they have <br />signed along-term lease a fifteen year lease but it has not required relocation of any other <br />tenant out of the building and will really bring this building up to just about 100% <br />occupancy. He stated that that is very very significant, it is a very significant benefit to <br />the downtown, but it obviously causes some issues. He will file with the City Clerk John <br />Voorde tonight a construction schedule that shows and eighteen week timetable. That <br />effectively means that if all things go well in mid December they will be able to move <br />into the space. Mr. Hill also has a letter confirming that his fum's termination date for <br />their current space is January 31, 2008, so that while he believes that this was an error it <br />was in the context of The Hinman Company as building owner really trying to move the <br />project ahead and accommodate the needs of both their current tenants and also Baker <br />and Daniels as their new tenants. Mr. Hill again requested the Council's favorable <br />consideration. Mr. Hill also mentioned that the investment alone in construction cost, <br />fixtures and furniture and equipment by Baker and Daniels is 4 million dollars. They <br />have signed a fifteen year lease, and expect to add additional professionals and continue <br />to bring additional professionals into the community. They have been in the position that <br />they have really not been able to expand their legal staff as they otherwise would. They <br />haven't been able to do that because they haven't had the space to put their people. They <br />have as part of the abatement application indicated that they would expect to have at least <br />a 7 percent growth each year in terms of employees at all levels, attorneys, paralegals, <br />support staff, etc. <br />Mr. Don Inks, Department of Community & Economic Development, 1820 Portage <br />Avenue, South Bend, Indiana spoke in favor of this resolution. <br />Mr. Inks stated that he is speaking on behalf of the Redevelopment Commission. Mr. <br />Inks stated that the Commission is in support of this project. It has been a long road to <br />get to this point, but it represents more than just a tax abatement, more than just a waiver <br />related to pulling permits before the abatement application. This project represents a <br />significant investment in a downtown building, it represents not only the retention of a <br />major law firm in the State of Indiana and in the downtown of South Bend, but keeping <br />other tenants in that building as well as providing better space for them as they continue <br />to locate in that facility. There are a number of benefits to the community and he <br />strongly support the project. The Commission has taken action to support the waiver <br />request and would ask the Council to do so as well. <br />Gary Gilot, Director, Public Works, 13~` Floor County-City Building, South Bend, <br />Indiana, acting as the Executive for the City of South Bend. Mayor Luecke in is <br />Washington D.C., attending the National Police Memorial Ceremony. <br />Mr. Gilot advised that the Mayor wants to go on record to support this waiver. The <br />administration believes that the Council's rules with regard to tax abatement timing <br />versus building permits being pulled are good rules, but for every rule there is <br />extenuating circumstances and a reason for an exception where you don't open a wide <br />door for a lot me too's. There was good Council dialogue on that early, and the <br />administration thinks the Council has that issue addressed. On behalf of the Mayor, Mr. <br />Gilot expressed support for sending a signal to this important downtown business that the <br />City of South Bend is friendly and open for business. <br />There being no one present wishing to speak to the Council either in favor of or in <br />opposition to this Resolution, Councilmember White made a motion to adopt this <br />Resolution. Councilmember Dieter seconded the motion which carried and the <br />Resolution was adopted by a roll call vote of eight (8) ayes. <br />Councilmember Varner stated that at some point and time they have to take measures as <br />to how the Council is going to conduct business. The issue to point out here is that the <br />amount is 5% of the project, 95 % of the project would still remain eligible for tax <br />abatement. If the Council is looking for something of a good faith effort to show support <br />for the project, he stated that they should point to the $400,000 that the City is going to <br />24 <br />