07-24-06 Council Meeting Minutes

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REGULAR MEETING JULY 24, 2006 SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Timothy A. Rouse Member of the Common Council Councilmember Kelly, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Mr. Frank Perri, Holladay Properties, 227 South Main Street, South Bend, Indiana, made the presentation for this bill. Mr. Perri advised that Huron Partners will be constructing a $5,000,000 development known as the “Huron.” It is a speculative, 150,000 square-foot, light industrial building that will house multiple tenants performing a variety of business functions, such as medical supply company, data storage facility, or printing company. The building will be constructed using pre-cast concrete panels. The building will be the first improvement of the Portage Prairie project, which expects to produce over $350 million in private investment. It is extremely important that the first building be successful, as it will provide momentum for the Portage Prairie project, which has an expected built out of 12 to 15 years. Total taxes abated during the (9) year period is $847,679. Councilmember Pfeifer stated that she wishes the project every success. She hopes that the developers understands that the Council has to be very conscious of where the tax dollars are taken from in terms of development inside and outside of the City. Councilmember Pfeifer stated that Mr. Phair made a promise that they would not be enticing any businesses already existing in the City of South Bend. In addition to that, the Council has to look at leveraging tax dollars to help development. She stated that she has some concerns about speculative buildings. Councilmember Kelly stated that the spec building concept and what it means to have buildings like this available for companies who might be looking to locate and see nothing on the horizon. Obviously, this is a benefit to the developer and to the community. Mr. Perri reiterated that Holladay embarked on a couple of previous large speculative projects totally 180,000 square feet and found three new businesses to the South Bend Community. Companies from Chicago, Cleveland and one from further west, Nebraska. The came into the community and over 100 jobs were produced from those companies. Also an expansion from a company that was already here. Mr. Perri stated that what he believes will happened here, is that they will start to see some growth in building this building and risking the speculative nature of this project with no tenants. They hope to meet what is called a market demand, and the high quality nature of the building is just hopefully going to raise the bar a little bit for the community called Portage Prairie, which they hope to bring more development to everyone’s attention in the future. Mr. Perri thanked the Council for all of their support, and hope that they can replicate what they have been able to do in other buildings for the City and it’s citizens. Councilmember Rouse stated that this is the type of thing that this Council and this City must be prepared to do. He stated that they must reach across the bar, not make the same mistakes that were made at University Park Mall, by putting their heads in the sand and say well, it will go away. These kinds of risk need to be taken and what the City needs is more partners like the Holladay Corporation that is willing to partner with the City and go out and find new and innovative ways to find partners to bring jobs and people into 15