03-23-15 Common Council Meeting Minutes

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REGULAR MEETING MARCH 23, 2015 Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee met this afternoon and send bill 15-16 to the full Council favorably. th Presenter- Brock Zeeb, Offices on the 14 Floor of this building- The three parcels before you are a part of the 2014 South Bend mutual homes Lincoln Park neighborhood development that was approved. These three parcels were inadvertently left off of that proposal. As a refresher this is a 24 single-family home, approximate accessed value of $641,520. The new project taxes created are $84,324, estimated taxes to be abated over the five (5) year period are $24,350, and total taxes to be paid over the five (5) year period are $59,974. I will answer any questions that you may have. Councilmember Henry Davis, Jr – People that are a part of this program will they be defined as renters or homeowners? Ann Mannix, 724 W. Washington – They will be members of a co-operative. They will purchase a share of the non-profit organization managing the development, they will vote on property managers. So it will be a combination of renter/homeownership. For the first fifteen (15) years it will be owned by a limited partnership due to some of the finances for the property. Councilmember Davis, Jr. asked what will happen after the first fifteen (15) years. Petitioner responded the co-op then will have the option to purchase it to own their share. Councilmember Davis, Jr. responded they will have an option to be shareholders, will they receive dividends? Ann responded they are paying off a mortgage of $10,000 per unit, they will be very inexpensive. They have control over their housing, with rent as low as $250 per month, we already have 20 application without any publicity. Councilmember Davis, Jr. asked what is the difference between subsidized housing from the government versus the amounts in the co-op? Ann responded the board sets their monthly cost per unit versus the government being in charge of the pricing. Councilmember Dr. Varner – So the people in the houses are paying the rent and no equity is accruing to them personally. Petitioner responded correct the term would be limited equity in return for their low monthly cost with a very inexpensive place to live. City Clerk John Voorde – Can they not sell their share as the group evolves? Petitioner responded we will have the group determine that. However, if you sell it, the next person will have to buy it, as the money has to come from somewhere versus keeping it affordable and keeping the price the same. This is a counter market strategy to keep the cost down. Thank you all for your support. We are having a ground breaking in May. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion to adopt 15-16. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. 15-13 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, VOICING CONCERNS OVER MANY OF THE ASSESSMENTS OF LAND IN THE CITY AND SEEKING AMICABLE SOLUTIONS OF THESE CONCERNS WHICH ARE IN THE BEST INTERESTS OF THE TAXPAYERS th Councilmember Dr. Varner requested a motion to continue bill 15-13 to April 13. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. BILLS - FIRST READING BILL NO. 20