10-14-13 Common Council Meeting Minutes

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REGULAR MEETING OCTOBER 14, 2013 like to specify is the money that is being raised specifically for that project is private money, so we do not sit in an redevelopment area, we don’t sit in a TIF District, we are not part of the Central Business District, the funds that would be utilized will be private funds which is part of the reason why we’re looking for this tax abatement. Councilmember Henry Davis, Jr., sure, could you please give me a brief understanding or run down of the tax credit application process and what is involved in the tax credit application, what do you have to list, yes, that is what I am asking. Nick Surak: Ok, there’s one round held by the State every year to apply for tax credits and applications are due on November 1. From there they take all the applications that are generated and this year so far all indications are that they have 50 of them to review. Those will be reviewed and they will announce awards at the end of February and at that time, if you are selected for an allocation of tax credits then you will start the process of putting together your equity partners and final review of the project and work towards getting permits ready for development. Councilmember Henry Davis Jr., asked if you can get tax credits anywhere in the City of South Bend or State of Indiana. Nick Surak: these tax credits? Councilmember Henry Davis Jr., yeah, I mean is there a requirement to get tax credits. No that’s not the question. Is there a way, can you get tax credits in any corner of the United States of America or the City of South Bend or the State of Indiana? Nick Surak: this particular tax credit is a federal tax credit that is administered by each state. So, every state has an allocation that they can award according to their own criteria. So, yes, no matter where. Councilmember Henry Davis, Jr., what is the criteria for this one? Nick Surak: the State of Indiana has a variety of factors that they assign a point value to, based on that they use that to evaluate which ones they think are most deserving of an award. Councilmember Henry Davis, Jr., what is the criteria for this project? Obviously, you have the? Nick Surak: first of all, it is an adaptive re-use project, it constitutes in-fill development, it is near some recent infrastructure improvements and those are the main things that way into this and also the tax abatement would be useful and they do give you some extra points if there is something like a tax abatement or some other sort of local government funding or contribution to the project. Councilmember Henry Davis, Jr., tax credit programs usually or traditionally are given in areas that should I say underdeveloped. Nick Surak: well again it depends on the State, every state is allow to decide whatever they want and the States that I have had experience with that is not a factor. I would say in Indiana that is the case and that the State authority, Indiana Housing and Community Development Authority does place an emphasis on developing underserved areas or areas that have suffered from disinvestment. Councilmember Henry Davis, Jr., ok, now clearly we had a conversation earlier that again, I don’t necessarily believe and think that it was that bad, honestly, I think that conversation needs to happen and in light of fairness and you know me speaking with you in the hallway as well as Karen here after the meeting, would there be any consideration to develop a community conversation given a two-week delay on this particular matter based upon all of things that we have talked about and things that preceded after the conversation and in light of fairness. 15