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REGULAR MEETING September 10, 2018
<br /> RESOLUTIONS
<br /> BILL NO.
<br /> 18-42 A RESOLUTION MODIFYING AND
<br /> RECONFIRMING THE ADOPTION OF
<br /> DECLARATORY RESOLUTION NO. 4461-15
<br /> DESIGNATING CERTAIN AREAS WITHIN THE
<br /> CITY OF SOUTH BEND, INDIANA,
<br /> COMMONLY KNOWN AS 106-110 NORTH
<br /> MAIN ST., SOUTH BEND, IN 46601 AN
<br /> ECONOMIC REVITALIZATION AREA FOR
<br /> PURPOSES OF A (10) TEN YEAR REAL
<br /> PROPERTY TAX ABATEMENT FOR HISTORIC
<br /> JMS BUILDING, LLC
<br /> Councilmember Gavin Ferlic, Chair of the Community Investment Committee, reported that they
<br /> met this afternoon and send these bills forward with favorable recommendations.
<br /> Councilmember Gavin Ferlic made a motion to hear Bill Nos. 18-42, 18-43, 18-44, 18-45, 18-46,
<br /> 18-47, 18-48, 18-49, 18-50, 18-51, and 18-52 together. Councilmember Jake Teshka seconded
<br /> this motion which carried by a voice vote of eight (8) ayes.
<br /> James Mueller, Executive Director of the Department of Community Investment with offices on
<br /> the 14th floor of the County-City Building, stated, Tonight, we'll be looking at the overview of
<br /> these abatements, the economic and process context for why these are coming before you, the
<br /> resolutions themselves and some of the project outcomes and reassessments that we've already
<br /> seen. These are familiar projects: the JMS right around the corner, Holiday Inn south of town,the
<br /> Courtyard Marriott between the Chocolate Caf6 and the Century Center, the Hall of Fame just
<br /> north of that,the Studebaker just south of Four Winds Field, Imagineering Enterprises on Sample,
<br /> and the Liberty Tower just around the corner.
<br /> He continued, The number of abatements has risen since 2010 to 2015, the economic conditions
<br /> have improved, and the business activity, as you can see in the graph on the right (referring to the
<br /> presentation available in the City Clerk's Office) of the downtown building permit values by year,
<br /> you see that 2016-2017 jumps off the page compared to previous years. There were plenty of
<br /> booms and busts that the City experienced where South Bend didn't see this kind of investment
<br /> going on in their downtown. This is really exciting news, and these tax abatements have much to
<br /> do with a lot of this investment downtown. You can also see the difference in the scale of these
<br /> projects. The average in 2010 was $2.4 million in investment per abatement, in 2015 it was $4.5
<br /> million. Projects are getting bigger, there is more investment, and they are also becoming more
<br /> complex. Finally, there is a process issue that we've learned of over time. When we do a tax
<br /> abatement,there is a designation period, but you don't have that assessed value until the Assessor
<br /> actually reassesses the project after the investment, and you have to do that before the designation
<br /> period ends.
<br /> Mr. Mueller referred to the presentation for a summary of the value of private investment from the
<br /> tax abatements over the past seven(7) years, and stated, As you see, 2015 was a high point. All of
<br /> the tax abatements coming before you tonight were from the 2015 and 2016 timeframe. There is
<br /> a significant jump there in what the tax abatement was able to attract in private investment.
<br /> Similarly, here, you see jobs that were announced with that. We are now getting CF-ls showing
<br /> actual job creation and actual investment, now that most of these projects have completed. You
<br /> see the real property tax abatements. We had $85 million of announced, and we've seen $120
<br /> million with personal property tax abatements, $123 million versus $144 million and then the
<br /> investment is a little low right now because a couple of the projects haven't completed. The
<br /> assessed value that we projected was a little higher than what we've seen in the CF-1's so far,but
<br /> that is also as you'll see in a moment, the full assessment. The Assessor does a reassessment on
<br /> January every year, so there is a partial assessment until you get the full assessment on the
<br /> books, we won't see that. The tax abatement timeline, from the process standpoint, is that a
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