08-26-13 Common Council Meeting Minutes

Home Browse Search

REGULAR MEETING AUGUST 26, 2013 about the city employees that we support. But not only that, other entities will be able to gain a strong hold on the increase of dollars, the infusion of dollars. Now I’m not saying doing in an irresponsible way, I understand a certain percentage would go to the school corporation, a certain percentage go to the libraries, city etc. But what I am saying is that because of over 40% of our city gets locked up in TIF districts, chances are we might be able to rebound at a higher rate and a faster rate because of that by de-tiffing we can stretch the Airport TIF District all over the city. Clearly this is hurting us, it is not working for us, it is hurting us, and the people make the bigger gain off of it is the developers that usually don’t live here. So we have to re-think the way we are doing stuff. De-tiffing is the way to go and we will be talking more about this. We have to return the money to the taxpayers. Mayor Buttigieg stated that he certainly welcomes the opportunity to have a discussion when it is appropriate to retire a TIF. He stated that he does think that it is important to have public understanding, he was sure that the Council understands, but some people might not be aware because they hear statistics that 40% of South Bend is in a TIF and they think that means that 40% of our assessed value is being diverted into TIF. It is really closer to 10%, some folks don’t follow it as closely as we do might not be aware of that and he wanted to make sure that was understood. There is certainly an attraction to retiring TIF’s that have out lived their usefulness. Because it can free up resources for schools and libraries. The city according to the last estimate he heard would only see about 40 cents on the dollar so, it is also the case that the overall city incoming resources would shrink if we were to do that. But of course it would remain in the community going through our libraries and schools. He stated that his view on TIF is that it is the most flexible and powerful job creation resource that we have. Most of the ten plus million dollars in private investment and hundreds of jobs that have been announced this year for example through the work of the Department of Community Investment have been connected to projects that have been backed with TIF dollars. Those they are certainly being put to use, in order to create jobs. That’s why we have them, but I certainly welcome the idea. Councilmember Henry Davis stated that he challenges the Mayor on that. The numbers don’t lie, we are at a 12% unemployment rate, we have been since early spring and it continues to do this (he raises his hand up) so we have to look at what is going on. Mayor Buttigieg reiterated that the job creation that has taken place has been associated with TIF backed investments in many cases. Certainly open to a dialogue on what the right level is and whether we should set some kind of target. That we shouldn’t go above or below on how much of our assessed valuation is reserved for TIF. But he hoped that we don’t deny ourselves as a City the effectiveness and flexibility that comes with TIF as a job creation tool. He welcomed that dialogue. Councilmember Scott stated that this is more of a comment than really a true question. He stated st that the Mayor did shake up the 1 District with the announcement of two-ways streets proposal. Especially, with Leeper Park, the one thing that has happened in the conversations that I have st had with 1 District members is more of not understanding, so I am glad that you guys put up on the website the whole presentation and I hope that there is opportunity to present to us again a st new meeting but also to the public working with Scott on trying to do something in the 1 as well. Seek to understand, I know that it is a complicated subject matter. He stated that he definitely would like to see financials on how this is going to roll out, if it is going to roll out, and what the proposal is financially. So, I look forward to more information on the two-way street program, I think it is essential to downtown and outer-lying areas, but we all need to understand that it is not an easy solution, it is a complicated matter that we all need to address. Council President Dieter asked how much time was left. Councilmember Scott stated 2 minutes. Council President Dieter stated that his questions are much more in depth. He thanked the Mayor, and reminded the Council that if they have questions and want dialogue with the Mayor you may contact him 24/7. Mayor Buttigieg stated call his cell phone. 5