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REGULAR MEETING April 8, 2019
<br /> ago and has been with South Bend through that entire time. They have seen significant and
<br /> nationwide growth. With that, they had reason, recently, to consider a departure from South Bend
<br /> in part due to some State tax situations that they face due to the unique nature of their business.
<br /> We have worked diligently with them to give them good reason to stay behind just their desire to
<br /> stay in their birthplace, if you will, and where they have about five hundred (500) plus valued
<br /> employees. These are important jobs to South Bend. I'll note these are consultants and higher
<br /> salary paying jobs that would leave quite a hole if a company like this were to leave. These are
<br /> jobs we cannot readily replace. So, it is very thrilling that we are talking about retaining Press
<br /> Ganey(PG)in this effort directly through this tax abatement which,via a triple-net-lease,wherein
<br /> they, as tenant would pay the property taxes. This is a direct benefit to them. Jeff Smoke is here
<br /> from Great Lakes Capital, who is the developer and builder. My team from PG, who you met this
<br /> afternoon, unfortunately called and they are not able to be here right now. But they send their
<br /> regrets, first(1St) of all,but also their thanks for your consideration. As they said this afternoon, it
<br /> is very critical. It is part of a three(3)-part element. We want to seal this and give the State a little
<br /> kick in the pants to get their incentives in line and solidify this, so we can get ink on this deal.
<br /> Councilmember Regina Williams-Preston stated, I think you had touched on that this is a real
<br /> situation and the gentlemen said in Committee that we really could have lost this opportunity. This
<br /> is a long-standing business with lots of jobs. So, it was really important to make this available for
<br /> them.
<br /> Mr. Buckenmeyer replied, Right, and if you look at this one(1) you'll see it is a heavier incentive
<br /> than we typically do. It pushes the envelope of almost twenty percent(20%)whereas most of these
<br /> we are talking about are below fifteen percent (15%) and closer to ten percent (10%). That is
<br /> through direct conversations with the Mayor and we have been working really hard to make this
<br /> meaningful for PG.
<br /> Councilmember Regina Williams-Preston followed up,The$900,000 public funding, can you talk
<br /> about that?
<br /> Mr. Buckenmeyer replied, Yeah, I'm sorry, I didn't mean to gloss over that. It is unusual to pair
<br /> TIF with a tax abatement. We try not to do that. Sometimes in special situations, we do stack. So,
<br /> the reason this happened here is, again, when you look at this map (referencing a slide in the
<br /> presentation) and the two (2) soon to be three (3) buildings, that was part of a contract done
<br /> between the City and Great Lakes Capital back in 2015. So, that was a development agreement
<br /> that provided $900,000 in TIF incentive for each of the three(3)buildings as they were built. That
<br /> was already baked into this as a bid as PG frankly looked at this site and other sites with other
<br /> developers throughout the City over the last eighteen(18)months two (2)years. It helped this site
<br /> win, quite frankly. But, again, that $900,000 benefit will go to the parking lots, landscaping and
<br /> local public improvements. The tax abatement will go through the owner and then directly benefit
<br /> PG themselves.
<br /> Councilmember Jo M. Broden asked, So, this is a consolidation though, right? Well, it's a move
<br /> but it also brings about a consolidation of some of their different components, correct?
<br /> Mr. Buckenmeyer replied, Yeah, as Mr. Williams said this afternoon, they are kind of spread out
<br /> across about four (4) buildings right now. Some are in disrepair, so, it has affected employee
<br /> morale and so on, other elements,but this brings them all under one (1)roof.
<br /> Councilmember Jo M. Broden followed up, Will this include room for expansion of their
<br /> workforce?
<br /> Mr. Buckenmeyer replied, There is a little room for expansion, yes.
<br /> Councilmember Jo M. Broden then asked, The other buildings, I mean, certainly one (1) of these
<br /> are in a pretty prime spot along our river? Are there any plans for the buildings they are vacating?
<br /> Mr. Buckenmeyer replied, We don't have a signed lease here, so, we don't happen to have those
<br /> conversations yet,but our general consensus is these are riverfront buildings and there will be great
<br /> opportunity there. We are not too worried about them.
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