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®CITY OF SOUTH BEND I OFFICE OF THE CLERK the trend is that we are not building houses anywhere near the rate that we were pre-recession. In fact, we have a gap opening up where we need to start building more housing. But fundamentally for South Bend there is this reality of a slower pace of aggregate population growth since the recession. This has an influence on how conservative or aggressive we are going to be. That is something we have to keep in mind as well as where we are seeing the activity. We always have to think about the impact of Notre Dame. We always have to think about college students and game day impacts. We know a significant number of people ride the train to take part in the game day experience. We need to know how that comes into play. We need to bring all these pieces into play. Mr. Foyle went on, One (1) of the things I always like to do is put things into context. So for me, I always like to understand,from retail,office and industrial markets,how quickly we are building and occupying space as well as adding jobs. All things being equal, I would love a world where I am adding jobs and occupying space faster than I am adding new construction. That would point to healthy markets. Since 2010,we've been adding our ability to occupy space a lot faster than we are building it,which speaks to a very healthy market. Since 2010,unsurprisingly, office has been a weak sector for the Midwest. It is a lot harder to build an office building than it used to be. We are now having less office space per worker. It used to be around two hundred and fifty (250) square feet and now it is down to about one hundred and fifty(150). We have significantly reduced our demand for office space across the board. This has been a big change. Retail is, without a doubt, the most complex sector. I was just looking at a mall yesterday that had a Carson's, Burlington Coat Factory and a Sears, and it is in trouble. We have three of those stores that are in bankruptcy or at least soon will be. We are going to see big changes. I think the retail conversation is something to keep in mind as we are buying retail differently from what we used to. That has to be factored into this analysis. Mr. Foyle continued, One (1) of the things that was important to me was to put the reduced travel time into Downtown Chicago into context. I think this is where working closely with the transportation team to be clear about the opportunity of getting an under ninety (90) minute commute time was critically important. If you look at the Metro System that connects Downtown Y p Y Y Chicago to a very large multi-county region, it is not unrealistic to talk about a segment of people who would live here and work Downtown. Again, it is not a huge number, but it is a realistic conversation that I don't think we can have today because of the travel time. That gets you into a conversation about those people moving here and living here. What we wanted to do was try to find a rational framework to have a conversation about the amount of development we could anticipate in these different locations. For Honeywell, we acknowledged the reality of two (2) different trajectories. One (1) was more of an industrial trajectory and the other was more of a Mixed-Use trajectory. I think one (1) of the things we worked closely with the City on was how much vacant industrial land we have as well as the extent to which we would explicitly choose to preserve the industrial development at Honeywell. I think it is,perhaps,the fifth largest contiguous piece of industrial land in the City. So again, over time, that could be an important reason to consider continued industrial use versus over a higher value residential use. We are ultimately trying to understand the existing use and then obviously the value of that space. There is a category in here called industrial which includes flex and that is office-showroom, so, fifty percent (50%) office and fifty percent(50%)warehouse. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson BvldI South Bend,Indiana 46601Ip574.235.9221If574.235.9173ITM574.235.5567 lwww.southbendin.gov 6