10-14-13 Common Council Meeting Minutes

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REGULAR MEETING OCTOBER 14, 2013 Nick Surak: the Near Northwest will form a for-profit LLC, to be the general partner and a member of that LLC will be Near Northwest. Councilmember Schey as a for-profit LLC what, the mission I would image of the for-profit entity would be slightly different than the mission of the not-for-profit community development corporation so do you anticipate that you would be beholden to the same sort of standards that a not-for-profit would? Karen Ainsley: Our mission is specific to affordable housing right now, revitalization and stabilization of the area, so it aligns perfectly with our existing mission. Nick Surak: It’s a single purpose LLC and that’s the purpose of having an LLC is to limit your liability and that is why it would be separate for Near Northwest is to limit liability as any business that organizes would opt to do the same thing. As a matter of fact non-profits are very active in tax credit developments and some of the biggest national developers are organized as non-profits. Councilmember Schey: Karen for this limited partnership other than yourself who would be on the board. Karen Ainsley: We haven’t organized it yet. We won’t organize it until the tax credits are awarded. Councilmember Schey: So back to the abatement request and I apologize to those you have already been here this afternoon but I will be redundant on the abatement request that is before the Council is a separate and distinct issue from the tax credits so I don’t want to confuse the two. So with the tax abatement request that is before the Council tonight there was a request made that would the NNN be willing to enter into an agreement which ensures that this project provide some sort of benefit to our community. We certainly realize that any new building ultimately increase the amount taxes collected but we are looking for a more direct benefit. If this project goes forward can we move a couple of South Bend residents from the unemployment line to the employment line? Karen Ainsley: As we talked to you earlier we said that there is a 4% commitment to minorities, to women, to veterans and so 4% of the project which is a substantial dollar amount will be allocated to that. So we will commit that to you. Councilmember Schey: Ok. The issue raised earlier by members of the minority community is that commitment has been made in the past and has not been met. Council Attorney Kathleen Cekanski-Farrand asked for a point of order. The controlling sections of the City Code in particular the Community Investment Department gave a recommendation upon reviewing the ¼ inch of material that the abatement petition before us meets the qualifications for a three to six year real tax abatement under Section 2-77 Multi- Family Residential Developments and other criteria with regard to a minimum amount of investment with regard to a 20% units made available for low and moderate income and that the base abatement would be 3 years and then there is a potential for add on abatements. So that is the criteria under the city code. There is no mechanism to add, there are MOA’s that can be added. Again, only what is in the City Code or under Title 6 Indiana Code. And I would also like to add that I have discussed my opinion with Corporation Counsel and she concurs with me. Councilmember Schey: Thank you for that additional information. As a Councilmember I still that I have the right to ask the question. So the members of the community that had come forward had said that commitment has been made in the past, but not met. So how do you anticipate that this project will be different? Karen Ainsley: I don’t have knowledge of what they are referencing in the past, I can only speak to this project that we have before you. And for this project before we have before you we are saying we will commit to 4% being representative of minorities, women and veterans. 18