06-23-08 Common Council Minutes - Laserfiche WebLink

Home Browse Search

REGULAR MEETING JUNE 23, 2008 such a narrow view of Tax Incremental Financing, as what has been said this evening, there would not be the kind of development in Mishawaka that they have. He stated that City is looking at a serious cash crunch with respect to real estate taxes in St. Joseph County, and are one of two counties that are exempted from the caps that were enacted. As a commercial owner, he understands what that has done to his taxes on his properties; they have gone up 150 % in one case and 135 % in another case, in just one year. This is a very serious problem, an immediate problem and a problem that we all have to face. In particular in St. Joseph County, many of the other counties don’t have this problem. What has to be done is create more tax base. Portage Prairie is an ideal area to create that tax base. The prioritizing of LaSalle Square and the Studebaker Corridor are going to remain in tact. He urged the Council to act as statesmen tonight and look to the future because unless we start importing actual commercial properties that pay property taxes in this area and only continue to import non-profits in this area, the City if going to be out of tax revenues. He noted that the Council needs to look to the future and give credence to the fact that it is impossible to develop this project and the scope of this project without and interchange on the by-pass which is a very expensive proposition. He stated that he hates to keep using Mishawaka as an example, but everyone can see what they have done out there with the use of TIF funds. Mr. Jerry Niezgodski, 2910 Bonds Avenue, South Bend, stated that he can’t believe that he is here tonight to speak in favor of this bill. He stated that he is probably going to make a few people angry, but he has done a lot of sole searching about this. He stated that LaSalle Square is in the heart of his neighborhood and is very concerned about future funding. But the more he thought about this, he kept thinking about the future. He is concerned about LaSalle Square and is very thankful that the language is being added to commit to LaSalle Square. This is an investment, and this area needs to be invested in. He noted that he is usually a proponent to any development outside of the inner-city. Mr. Niezgodski stated that he is looking into the future and does not want South Bend to miss an opportunity for future growth and expansion, because development will just go somewhere else. He stated that a lot of communities are doing the same thing and moving quickly because of House Bill 1001 and if you think long term this is a good investment. He noted that he is concerned with some of the revenue; perhaps in the future if legally possible after this development is built out it could be its own TIF District. He doesn’t want this project to stop and sacrifice a future that is out there and the future revenue stream that will come with the development. Mr. Niezgodski stated that he doesn’t want to see South Bend lose out on this opportunity and have the development go to Mishawaka or to Portage, Indiana. He urged the Council to vote in favor of this Resolution. The following individuals spoke in opposition: Ms. Linda Wolfson, 809 Park Avenue, South Bend, Indiana, stated that she has worked with a lot of people who are very dedicated to building a vibrant community in South Bend. These people are visionaries; they are not stuck in the present and are looking to the future, but have very legitimate concerns and questions about the particular action that is being considered tonight. That action is the use of Tax Increment Financing in this situation. In the past she has applauded some views and positions that have been taken, especially when the Airport Economic Development TIF was expanded to include some areas of the city that had been neglected. She stated that was a very righteous decision, a correct decision. There was a source of revenues available that could be used to build the infrastructure that would attract the kind of economic development that is needed in areas of the city where people have access to jobs, the people that need the jobs could get the jobs. That is only beginning and is absolutely laudable that the Council has changed the proposal as to protect that particular use of the revenue. However, this particular use of tax increment financing does not come without a price, the price is revenue streams that are attached, limited, that could only be used for infrastructure. Even if there are little things done to expand, they are basically to be used for infrastructure, a kind of development as complex as being described will take a tremendous number public safety individuals. TIF funding cannot be used for public safety individuals. The stations can be built, you might be able to buy a fire truck, but you cannot pay the fireman or the policeman. There is already a situation where libraries are closed on the weekend that is 28