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REGULAR MEETING JUNE 23, 2008
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<br />by the airport that was start approximately twelve (12) years ago. Merrillville, Indiana,
<br />has only been in existence for about three years. This is a joint venture with Purdue
<br />University, 30% built out, 70% remaining. This is a 400 acre development and so far the
<br />jobs are over 250, 450,000 square and about 75 million dollar venture. At Portage
<br />Prairie, the Huron Building was built about a one (1) year ago, it is full, it didn’t generate
<br />a lot of jobs, and most of those jobs were in distribution. Mr. Perri noted that the
<br />building was built for distribution, so that should not surprise anyone. It is a building that
<br />does well in the market here in northern Indiana, and they still pay taxes. The taxes are
<br />expected at that built out to pay for any of the infrastructure that the City has invested.
<br />That is roughly 1.6 million to date. Holladay has over 3.5 million dollars invested in
<br />Portage Prairie, and are just beginning. This is a catalyst kind of development and what
<br />is being talked about tonight has a lot to do with that catalyst. Bridgemont, Indiana, New
<br />Albany Indiana, which could technically be called a suburb of Louisville, Kentucky, they
<br />are just going into that venture again with Purdue University as an investor with
<br />Holladay. They are going to put up hotels and other developments in those ventures. Mr.
<br />Perri noted that they have a research park project going in there now. He stated that these
<br />developments all follow a pattern and although you can call them speculative and
<br />investment is speculative to a large degree, you can cover your bets by doing good
<br />planning in good investments. Mr. Perri advised that Holladay Properties has a history
<br />and they know their markets, desires and their roll in this development. He stated that
<br />Holladay’s role is to get out and market this development. Mr. Perri stated that they have
<br />marketed Portage Prairie very well, so well that they are not ready to supply the entire
<br />development scenario because they haven’t completed all the infrastructure and they
<br />haven’t got the traffic flowing just yet. Mr. Perri promised that just as in all the other
<br />projects, the investment that are made whether you call them speculative or not, because
<br />a lot of the development is built to suit, which come about in speculative investing, just
<br />like the type that the Huron is, they look at them as a covered bet, as something that they
<br />think will happen, and that is why they invest in it. He stated that there are not a lot of
<br />financing options available to municipalities today, because TIF is what has been used in
<br />every one of these markets. The other municipalities agree that it has paid off so far, and
<br />that is what is being asked tonight. To include it in the Airport TIF, and in time the
<br />results will be seen. The foundation that will be laid today and tomorrow is going to
<br />benefit for many years to come. Mr. Perri noted that all investments are not equal, and
<br />sometimes you don’t have to make those major investments. They are not asking for a
<br />dollar amount today, just enabling legislation to get to the point of being able to say to a
<br />corporation, to a business, that South Bend can deliver. If you can’t say that then the
<br />development that is just 50 minutes west of South Bend will get the nod in the kinds of
<br />developments that might come this way. Mr. Perri stated that he is speaking on behalf of
<br />everyone at Holladay and being that they are employed here even though they travel a lot
<br />out of the area, they want this to be the place that benefits from their development
<br />expertise. Mr. Perri urged the Council to vote affirmatively to night to add it to the
<br />AEDA area and give it the Tax Increment Financing ability so that this development can
<br />be built out and get the taxes generated.
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<br />Mayor Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd. South Bend,
<br />Indiana, asked the Council to support the expansion of the AEDA to include the Portage
<br />Prairie area. He reflected on as everyone is very narrowly focused right now looking at
<br />Portage Prairie, it tends to make everyone forget that development is happening all over
<br />the city. The City is actively developing the Studebaker Corridor and Eddy Street
<br />Commons, the East Bank, and looking to drive that development all over the City. He
<br />stated that he wanted to make very clear on the record tonight that the City’s priorities for
<br />use of AEDA TIF dollars are first and foremost at LaSalle Square, Studebaker Corridor,
<br />including the mind project and then additional as needed. He stated that he has heard that
<br />message loud and clear from the Council and wanted to go on record stating that he has
<br />no objection to that being included in part of the Resolution tonight as this moves
<br />forward. Secondly, he stated that as they think about Holladay’s planned development
<br />here and the success that they have had in other areas, he reminded the Council of the
<br />investments that Holladay has made in the City of South Bend. Years ago, when it was a
<br />big risk, Holladay built One Michiana Square in downtown South Bend, at a time when
<br />not much else was happening. Holladay has rehabbed existing buildings in downtown
<br />South Bend; Holladay has built apartments and condominiums in South Bend. They have
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