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REGULAR MEETING JUNE 23, 2008
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<br />Donald Inks, Director, Economic Development, 12 Floor County-City Building, South
<br />Bend, Indiana, made the presentation for this bill.
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<br />Mr. Inks advised that this bill would expand the Airport’s Economic Development Area
<br />to include the balance of the Portage Prairie Development Area that is not already a part
<br />of the Airport Economic Development Area. The total Portage Prairie Development
<br />Area is 450 acres and currently about 120 acres are within the boundaries of the Airport
<br />Economic Development Area, the remaining acreage in excess of 300 acres is still within
<br />the City, but not currently within the TIF area. The issue tonight is really about keeping
<br />important local issues within the control of local decision making. Under House Enrolled
<br />Act 1001, (HB 1001) as of 7-1-08, the City will no longer be able to make a decision like
<br />the one before the Council tonight at the local level. Under HB 1001, a local finding in
<br />order to expand the boundaries of a development area, and that finding that the resources
<br />of the area are not sufficient to meet the obligations of the area. The Airport Economic
<br />Development Area has a fairly healthy TIF Area in terms of revenues and even with
<br />losses that are anticipated by the circuit breaker, and don’t have a definitive number on
<br />those revenues, but even guessing high and taking into consideration the outstanding
<br />indebtedness of the Airport Area, he does not believe that they would be able to make
<br />that finding locally that the Airport could not meet it’s obligations. There should be more
<br />than sufficient funds to make all the debt service payments. Under those conditions, the
<br />legislation that would take effect July 1, 2008 would take that decision out of the local
<br />hands then and put into the hands of the Indiana Economic Development Commission.
<br />He believes that it is an important Local Decision that ought to be kept at the local level.
<br />By including Portage Prairie, it keeps that option at the local level. If not, it may be
<br />found to be precluded from making certain investments in the Portage Prairie area,
<br />investments that may be made for the betterment of South Bend. This Resolution does
<br />not talk about financing, it only talks about expanding the boundaries, and so there is no
<br />commitment here to provide funding for Portage Prairie, but it does leave that door open
<br />should the local community decide if that is what is appropriate. Portage Prairie is a 450
<br />acre, 380 million dollar mixed use development, all 450 acres have been voluntarily
<br />annexed into the City, and prior to the change in State Law, were already approaching
<br />this project on a case by case basis as new projects came in for development in the
<br />Portage Prairie area, they would have looked at possibly expanding the TIF area to take
<br />those into account. Under the new State Law, the local level will no longer have that
<br />option to look at it over time. Mr. Inks stated that at this afternoon’s committee meeting,
<br />many Councilmember’s expressed concerns primarily about LaSalle Square and the
<br />Studebaker Corridor and whether those would remain as funding priorities for the City of
<br />South Bend. Mr. Inks stated that he is here tonight to state that those will remain the
<br />main priorities, LaSalle Square, Studebaker Corridor, including the nano-technology
<br />efforts and Mind Project.
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<br />Mr. Paul Phair, Holladay Properties, 227 S. Main Street, South Bend, Indiana, advised
<br />that Portage Prairie is a 450 acre project and ranges in uses from retail to light industrial
<br />to everything in between. It has significant investment opportunities for the City and has
<br />huge financial implications. The overall project is 378 million dollars in private
<br />investment and that is just a number for vertical development that does not go into the
<br />personal property investment, once the developments locate into the park. Mr. Phair
<br />noted that they anticipate 3,800 to 4,400 jobs at full build out, and expect 6.8 million
<br />dollars in real estate taxes. County income tax is projected at 1.1 million dollars, hotel-
<br />motel taxes at 415,000 and state income taxes at 5.3 million and sales taxes at 14 million
<br />at full build out. Mr. Phair stated that it is a long build out at 15 years, but everything
<br />that is worth waiting for takes time. He understands that it is difficult to visualize but the
<br />benefits of this development will be worth waiting for.
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<br />Mr. Frank Perri, Holladay Properties, 227 S. Main Street, South Bend, Indiana, advised
<br />that Holladay Properties was founded in 1952 in Washington D.C., the Midwest
<br />headquarters is located in Downtown South Bend and it is a bit of anomaly today because
<br />they have larger developments than what they have in St. Joseph County, in Marion
<br />County and soon in Porter County. The reason for stating this is because Holladay
<br />currently has five planned mixed use developments, including Portage Prairie, that have
<br />different ages and acreage. In Indianapolis there are 1,500 acres on the Southwest side
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