06-22-15 Common Council Meeting Minutes

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REGULAR MEETING JUNE 22, 2015 attachment pursuant to Indiana Code 6 -1.1- 12.1 -17 and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6- 1.1 -12 et seq. SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. Member of the Common Council Cl Report Presenter: Chris Fielding, 14' Floor Dept. of Community Investment — This is a renovation for the JMS building on Main Street. They are proposing to invest approximately $7.6 million to creating 60 -68 new units on floors 2 -9 on the project. This building does qualify for a ten (10) year real property tax abatement. It would create eight (8) new jobs. Total taxes they would pay $2,121,000, and abatement of $629,000. In all fairness, with this being an historic building the amounts are approximate as what it would cost to repair. Jeff Smoke from Great Lakes is here to answer any questions that you may have. Petitioner: Jeff Smoke, 112 W. Jefferson, South Bend — Director of Development at Great Lakes Capital. We are repositioning the historic asset to 65 multi - family units, and capitalizing on the new two -way streets and new bike lanes. There will be a lot of interest in living downtown. Councilmember Henry Davis, Jr. — With a matter of policy, when did we start to do ten (10) year tax abatements? I have been under the impression the highest that we could go is eight (8); as that was the ceiling. I remember we did special exceptions to help support more than eight (8) years. I could be wrong but that is what I remember happening. In a matter of policy how did we go to ten (10) years and beyond? Chris Fielding responded the tax abatement ordinance was written in 1984, it was always ten (10) years. Councilmember Mr. Gavin Ferlic stated it has always been ten (10) years but it dropped to eight (8) years when we started the metrics. Councilmember Davis, Jr. responded, well then I'm not wrong, it is starting to come offensive when I ask a question and heads shake, when I know I'm right. Councilmember Oliver Davis asked, when, did it become ten (10) years. Chris Fielding responded the ordinance was always ten (10) years. There is a three (3) year base, then you can add seven (7) years to the base, based on scoring. When you see a ten (10) year abatement, which indicates it is a fairly large project, something over $6 -8 million dollars. Where you would receive more points to bump you up to that ten (10) year abatement. 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 Mr. Gavin Ferlic made a motion to adopt resolution 15 -50. Councilmember Derek Dieter seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. 15 -51 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 122 CALLANDER ST., SOUTH BEND, IN 46614 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SIX (6) YEAR REAL PROPERTY TAX ABATEMENT FOR JSK DEVELOPMENT, INC. /IRELAND HOSPITALITY, LLC RESOLUTION NO. le \:7 :Y6] 14&] 0 Kelm 1.1 x0] Jd i!de] 0 IK611] Ry I IES] 21: [a CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 03