04-19-18 Community Investment - Laserfiche WebLink

Home Browse Search

CITY OF SOUTH BEND I OFFICE OF THE CLERK be another economic downturn at some point. And then, ultimately, we want to take that information and put it into a question of economic impact. Essentially we want to take this new value of construction, factoring some reasonable assumptions for inflation, and that will give us new built value over time. What you see here is this notion of the anticipated capital costs for our different station locations relative to our expectations of what could be the value of new real estate development. We also assess the resulting possible tax proceeds that could flow over a ten (10) year period from these different locations. There are a few things I think that are important to comment on. There is a large amount of vacant land around the airport that is subject to FAA guidance in terms of land use. There is not as much vacant land around the airport as one would think. Our laser focus here is a quarter to half mile radius of study area around each station location. The beauty with Downtown, of course, is we don't need a very large parcel to build a significant amount of housing. Again, it is a very different density conversation. The key with Downtown versus Honeywell, the Downtown station is a much more expensive station to build. So while we see a significant premium in real estate value, it is a significantly more expensive station. That is why we get to a conversation about Honeywell being less expensive to build with relevant real estate development. We have had people say that our assumptions for Honeywell might be a little bit optimistic so I think that is also part of the conversation as well. Mr. Foyle went on, To summarize these things, for Amtrak specifically, the home values are modest. That is not a bad thing it is just how it is. I think getting to our airport station,there is not necessarily a lot of land available in immediate proximity. We would be losing parking as well. The FAA is one (1) of those unique federal agencies that actually cares what kind of trees you plant next to an airport. Those are trees that don't encourage birds. Development around airports is not a casual thing and we want to think about that. We tried to summarize all the variables to understand our expectations. This is all based on facts on the ground as we see it. There is a decision to make regarding an industrial trajectory versus a retail or mixed-use trajectory. They offer different implications for value.Again,we need to understand the comparison to alternatives from a cost standpoint. We need to evaluate these different scenarios from a cost standpoint and what they mean. There are realities of different assumptions for each one (1) in terms of private owner developer plans. There is a lot of other adjacent land needing to be unlocked for each of these station locations. I Council President Scott opened the floor to public comment from the Administration. Mayor Pete Buttigieg,Mayor of the City of South Bend with offices on the 14th floor of the County- City Building, stated, First of all, I would like to thank the team from AECOM for all the analysis that went into this. The full report and technical documentation has been circulated and I think it has been made available online too. This is the first time I've seen it in this form but we have been going back and forth with the team a lot. I want to own up to the fact of having publicly said we had hoped to see this in February. One (1) of the main reasons that it is a few weeks later than that is because we kept asking questions and they had to continue going back to the study to double check things with their data.I think it was worth it and would like to thank the Council for weighing in on the issue because really, it was out of a desire to be responsive to the Council Resolution that we ask for this study. Obviously there is a ton of information here and, I think as a community,we will all be taking it in for a little while. I would like to share some of my main takeaways that I see in it before others from the community share theirs. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TTD 574.235.55671 www.southbendin.gov 8