09-11-06 Community & Economic Committee

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Community and Economic Commitkee Meeting 2448 South Bend Gom~non Council The September 11, 2006 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by Chairperson, Council Member Roland Kelly, at 3:55 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Varner, Kuspa, White, Rouse, Kelly, and Puzzello; Citizen Member Martin Wolfson, Community and Economic Development Executive Director Sharon Kendall, Crystal McCain, Martha Lewis, City Clerk John Voorde, Tom Skarbek, Bernie Feeney, Bill Schalliol, Building Commissioner Don Fozo, Timonty A. Baker, Brian Culp, Mrs. Kopala, Beth Leonard, Jamie Loo of the South Bend Tribune, and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly noted that the Committee members include Council Members: Puzzello, Kirsits, Kuspa and himself; and Professor Martin Wolfson as the citizen member. Bill No. 06-93 Eight {8) Year Real Property Tax Abatement Request for 1.05 North Niles Avenue: Council Member Kelly called for a report from the Department of Communi#y and Economic Development on Bill No. 06-93 which is a request for an 8-year real property tax abatement for the property located at 105 North Niles Avenue filed by NileslVllashingtan LP flblo AM General. Bill Schalliol of the Department of Community and Economic Development reviewed the August 31, 2006 multi-page report (copy attached) which concluded that the petitioner meets the qualifications for an 8-year real property tax abatement under South Bend Municipal Code § 2-78.1 addressing "Office Developments Within the East Bank Development Area and Tax Abatement Impact Areas". He noted that the location is the site of the AM General corporate headquarters who plan to construct a 17,5000 square foot addition and upgrade the existing 35,000 square foot building. The estimated cost for the addition is $2,090,000 and for the upgrade of an additional $500,000. Eleven (11) foil-time jobs are projected to be created and 104 existing full-time jobs will be retained. Timothy A. Baker, Executive Vice-President of Holladay Properties with offices located at 227 South Main Street, Suite 300, in downtown South Bend made the formal presentation. He noted that they currently pay $90,000 per year in real estate taxes and the similar amount in personal property taxes. AM General has agreed to a lease extension for the location for an additional fifteen (15) years. He sees this as a significant commitment to our community.