04-23-12 Community & Economic Development

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square foot building costing at least $6,500,000. In addition to an estimated $240,000 in new taxes generated the project would create 30 new full time jobs. Matt Edmonds from Tire Rack was present to respond to Council questions. Based upon the facts presented along with the strong approval of the Economic Development Department the Committee unanimously forwarded the bill favorably after motions by Karen White and Dr. Ferlic. The next item, Bill No. 12 -34, was presented by Pam Meyer, Director of Community Development. This bill would approve the extension of an agreement among government entities to continue the St. Joseph County Housing Consortium. The Consortium exists so that more funds can be applied for from HUD for housing activities than can be applied for if the three governmental units (South Bend, Mishawaka, and St. Joseph County) applied separately. Each legislative body must agree to act collectively while authorizing the Mayors and Commissioners to continue the Housing Consortium for a period of 3 more years. This seemingly routine approval request prompted spirited commentary during the public portion. Mr. Joseph Shabazz claimed the City was violating Sec. C -3 of HUD requirements that a portion of the money received from the feds directly benefit low income people through jobs and contracts. Pam Meyer refuted the violation claim citing the department's history of compliance and accountability with all federal regulations. Though the response was challenged Dr. Ferlic motioned the bill go to Council favorably. Citizen member Pat Crowley offered a second and all affirmed. The next agenda item Bill No. 12 -35 would approve a tax exemption for certain IT equipment in the new data center under construction in Ignition Park. This request from exemption is the first since the Council passed a resolution last year supporting the exemption for investments in IT equipment. The resolution helped the passage of a state law allowing the exemption so that Indiana could compete for IT development investments that were going to surrounding states. This particular exemption approval request items from the new data center in Ignition Park. The total investments is $14.2 million of which $6 million is the equipment eligible for exemption Mr. Rich Carlton making the presentation for the data center said it was this exemption that tipped the scales in favor of investment here. During the public portion Murray Miller said he remembered the data center saying they would not seek abatement. Mr. Carlton and Don Inks both stated the promise was not to apply for abatement on the land or building. In other words $8.2 million in new value would be fully taxable. After Council follow - up Karen White motioned for approval. Dr. Ferlic seconded and all approved. The final agenda item was Bill No. 12 -27 an amendment to the use of Certified Tech Park Funds. The presentation to Council was made by Don Inks. Don provided for illustrative purposes a two page report on the use of Tech Park Funds originally submitted and approved by the Redevelopment Commission. (Attachment filed in the Office of the City Clerk) The report outlines the background, current status, the uses of funds and the proposed changes in the