05-26-15 Common Council Meeting Minutes

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REGULAR MEETING MAY 26, 2015 Councilmember Gavin Ferlic, Chairperson, Community Investment Committee met this afternoon and send bill 15 -39 to the full Council favorably. Presenter: Chris Fielding, 14" Floor Dept. of Community Investment — Before you have a resolution for a (10) ten year real property tax abatement. This is a partnership between the historic JMS building, LLC, Great Lakes Capital, and Earth Design. They are looking to invest approximately $7.6 million into the building creating 60 -68 apartments above the current commercial space. There will be no office space above the first floor. The return on investment is five (5) years, creating eight (8) new jobs. Total taxes to be paid over the ten (10) year period are $2,121,000, and total taxes to be abated over the ten (10) year period are $630,000. They are currently purchasing three numbers, but only doing the abatement for one number. Petitioner: Frank Perry, 3617 McKinley Ave, South Bend — I own a minority consulting firm, as I am the minority partner. We would be creating 60 -68 apartments, high -end apartments. I am excited about bringing this project. We are in the final stages and looking to deliver apartments around June of next year. Councilmember Oliver Davis — Can you address the parking in that area with 60 new homes coming? Chris Fielding responded the third attachment on your handout highlights the parking to the north of the JMS. Great Lakes owns the parking lot to the east of the building, and have leased spaces from the main street building garage. Councilmember Davis asked what happens with their guest when they come to visit. Chris replied any time after 5pm the parking garages are free, and with two street conversions there will be additional street parking available. Councilmember Dr. David Varner — With regards to the high -end finishes what is the dimensions of the apartment? Frank replied the average will be north of 850 sq. ft., there will be studio and one bedroom apartments. They will run in price from $700 to $1600 depending upon view and space. Councilmember Henry Davis — I think this is a great idea. My question is with all the projects going on when is the last time we did a market study on where we are economically, especially when I haven't seen an influx in new jobs? Where is this money going to come from to support all these new developments? Chris responded we did commission a study in 2012, by a national urban housing establishment, which gave an S.W.O.T. analysis that estimated downtown could absorb 5 downtown housing units. We are still significantly under that number. Urban living is a shift in our culture now, and South Bend plans to capitalize on that. Councilmember Davis stated I don't want our City to end up like what happened to Mishawaka. I'm simply asking these questions to avoid those things. Councilmember Oliver Davis — If all these apartments come downtown, what groceries stores are coming downtown as we don't have a convenient place for them to go? Chris replied there is a grocery store a block from downtown. We have a smaller market down the street. It has always been a question do we build the apartments or the grocery store. We build the living space and businesses will see the opportunity to build. Councilmember Henry Davis, Jr. — Is this the reason why we went to the two -lane streets for $40 million? Was that a part of the market study for new business and how traffic flows downtown? Chris responded they did not recommend that we did that, however it is one of the catalyst for growth downtown, and why you see retail space created under the hotel. I can't give you an answer but it all plays together as part of the vision. Councilmember Davis responded if that is the case then why was it not in the study? Chris replied we had already told them we would be doing the two -way streets, without it we had no reason to do the study. 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 opposition to this bill, Councilmember Mr. Gavin Ferlic made a motion to adopt this resolution. 17