12/10/07 Council Meeting Minutes

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REGULAR MEETING DECEMBER 10, 2007 essentially allow the funds to flow to the Redevelopment Commission, so that to the degree that the City itself advances funds, essentially all they would really need to have is that agreement between the Redevelopment Commission and the City through the Board of Works identifying and creating a record that there is an expectation of those funds coming back to the City through the Redevelopment Commission Fund. Mr. Don Inks stated that the 4.1 million dollars of revenue takes care of the debt service on the bonds and the payments on the City loans to the project and after those two are taken care of there is an annual $477,000.00 extra. In terms of the infrastructure for this project everything in Phase I and the Triangle area will essentially be new infrastructure that should be lasting the 25 year time period. Mayor Luecke stated that TIF revenue from the Triangle is not included in that 4.1 million either, so there will be additional dollars generated there and as development is looked at further south which is anticipated as this is built out, there will then be additional TIF as well, so if there is additional investment that needs to be made at that point, there will be additional TIF revenue to support that. Councilmember Kirsits asked if Mr. Compton if Kite Realty has taken a lot of heat by agreeing to put in the fire sprinklers? Mr. Compton stated that he has gotten a few e-mails. Councilmember Kirsits thanked Kite for agreeing to put in the fire sprinklers. He noted that they do save lives and with a project of this magnitude, it really is a good thing. The following individuals spoke in favor of this bill: Mr. Jim Lyphout, Vice President, Business Operations, University of Notre Dame,415 Main Building, Notre Dame, Indiana, stated that he is here tonight to offer support from the University for the TIF financing program proposed for the Northeast Neighborhood. He noted that is has been almost thirty (30) years since the Northeast Neighborhood Council began to restore the vibrancy that this area once possessed. This request for TIF financing to allow the development of the Eddy Street Commons and Redevelopment of the Triangle Residential Area is a culmination of the Northeast Neighborhood Council's efforts and those of it many allies. Notre Dame has not always been as engaged in the affairs of the City of South Bend as it is now, and in this particular effort. He noted that as both have grown it has been noted that they have become intertwined. Father Monk Malloy has encouraged through faith that Notre Dame become a good neighbor and partner. This is currently enforced and continues under the guidance of Father John Jenkins, the current President. He stated that if South Bend does not thrive, then Notre Dame cannot achieve it's aspirations. With this in mind, it is that Notre Dame has joined South Bend and other institutions to create the Northeast Neighborhood Revitalization Organization. The University has contributed over 1 million to its operation to date, since 2000, the NNRO has worked hand in hand with the Northeast Neighborhood Council, on a plan to revitalize this area. The TIF proposal before the Council tonight is essential to bring forth these effort to fruition. TIF will finance two elements vital to success of the neighborhood, infrastructure for the parking garage and streets and the infrastructure for the renovation of the triangle. The infrastructure for the triangle will replace a blighted area with new single family housing of which thirty (30%) percent which will be reserved for low to moderate income families and sold under affordable housing programs. Notre supports these efforts because of the vital role that the Northeast Neighborhood plays in the life of the University. They want to see this area redeveloped and revitalized. They want to see a vibrant commercial and residential life for this area. They need this project to succeed because it is crucial to the University and Community. TIF will pay for future infrastructure installed today with future tax increments that would not exist without this project. They feel that this is an appropriate contribution from the City which will enhance the contributions already made by the University. Contributions to the City include voluntarily annexing into the City and putting on the tax rolls land that had been previously part of the campus. This was in anticipation of the Eddy Street Commons. They have straightened Angela & Edison at a 12