06-23-08 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING JUNE 23, 2008 been a great partner; they have been a partner in the planning of East Bank Village. Holladay’s investment is not just in Portage Prairie, but really again across the City of South Bend. Mayor Luecke stated that one of the questions that was raised by the Council this afternoon was that of the longevity of the TIF district. The Airport Economic Development Area was created before there were any time limitations were placed on TIF districts. House Bill 1001 is a complex bill, and to be honest he has had varying advice on what that means for those grandfathered older TIF districts. He stated that he has had legal advice which has said that they believe those districts will now be subject to a time limitation, as all new districts would be. Mayor Luecke stated that he has had discussion with the Indiana Associations of Cities and Towns staff that they believe that the grandfathering continues. He stated that he cannot give a specific answer to that question tonight. But understanding that the time limitation issue is a concern for the Council, they would certainly commit themselves to working together to place a time limitation on this expanded TIF area, if that is the Council’s desire as this moves forward. He stated that he can’t tell what the vehicle will be to be able to do that right now, but he hears and understands that concern being raised and looked to be able to address that. But the time is right to expand into the Portage Prairie area now, a portion of the Portage Prairie area is already included within the Airport Economic Development Area which allowed the City to create Dillon Drive opening up 100 acres for new investment and new jobs in this community. He believes by including the rest of the area, it will provide the City the opportunity in conjunction with development; they will not be willy nilly in making infrastructure investments without real development ready to happen. In conjunction with development it will be then that the City will be able to make some of the infrastructure necessary to help this area reach its full potential and generate additional tax dollars that can be used throughout the entire airport development area including LaSalle Square and the Studebaker area. He urged the Council’s full support of this resolution. Mr. Inks advised to the Council that if there is any suggestions to improve the language in the resolution that would be most welcome, but suggested that in between items #2 and #3 that a new #3 be inserted to read: First priorities for the AEDA TIF funding remain LaSalle Square and Studebaker Corridor, including the nano-technology mind project. And renumber #3 to #4. Mr. Inks also stated that for internal working purposes there is 2 million dollars that is allocated this year and $500,000 allocated next year, and if the Council wants to put 2.5 million dollars for LaSalle Square that could be done. Mayor Luecke stated that they don’t have a specific commitment made to the Studebaker Corridor at this point. They have had discussions with the NRI, the State and the University of Notre Dame, and talked about levels and types of investment. He stated that he doesn’t believe that they have a number that they would want to insert into the bill at this particular point. In particular, he doesn’t want to be in the position of saying that they have to spend every last dollar here, before we can spend something else there. The planning process is something that is generally such that there will be needs in several places during a period of time, and that they would allocate dollars, some to Studebaker, and certainly the 2.5 million that they are committing to LaSalle Square. But potentially if the need arises for some infrastructure in Portage Prairie at that time, that makes sense because it is going to open up new development and bring new jobs and opportunities there. He would prefer to not put any dollar amount for the Studebaker Corridor, but know that it is a key priority for this administration and can appreciate the Council’s support in this regard. Councilmember Oliver Davis questioned why this development could not be in its own TIF district. Mayor Luecke stated that they could have established a separate TIF for Portage Prairie, and chose not to when the area was first annexed into the City for a number of reasons. First, a new TIF doesn’t have any income to be able to invest in infrastructure or to be able to commit to bonding to pay for infrastructure. So to be part of an existing TIF that has a revenue stream that allows a jump start that area, it is an easier investment and a bond issue that is more likely to be sold in the bond market. So that is really the primary reason that it is more a matter of planning and convenience and the ability to move 26