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REGULAR MEETING <br />MARCH 24, 2014 <br />Rich Davis- Good Evening full member of the council. I am Rich Davis, I joined you a couple <br />weeks ago as we had a longer discussion regarding Great Lakes Capital Development asking for <br />$9.5 million to assist the city in targeting the formal LaSalle Hotel to rehabilitate that into <br />approximately 60 apartments units with retail. This is a significant project that has been <br />historically known by the city redevelopment commission for many, many years and has been <br />asked to contribute to the tax abatement for this city for at list over 10 years and has been ask, <br />and to make this a productive asset while also meeting the objectives and plans of the central <br />business district to increase living an population and patronage of business downtown. This is a <br />project that will result in initially of a least 9 new jobs as a contract with a represented payroll of <br />approximately $350,000. Overall we will have a representative of over 140 -160 range of <br />contractors working on the project in our 3 weeks construction phases. As the council is aware <br />this is a request for a 10 year abatement that veers slightly from the traditional 10 year phase and <br />schedules and the matter of many features that the council and city have considered towards this <br />project with regards to the exceptions. The primary ones including an investment in a property <br />that has been historically been a liability to the city for maintenance cost to turn this project into <br />a tax producing, contributing property as well as this is a property that has a historic destination <br />and suffers significant jobs, it's not a project that is readily and immediately convertible into a <br />productive asset. There has to be significant investments made to make the property sustainable <br />for future development. Those are the key aspects that separate this project from some other <br />multi - family housing projects that have become before this council. Those are some of the <br />unique assets. I am happy to answer your questions of the council, and again we greatly <br />appreciate the council's consideration moving forward. <br />President Oliver Davis- Any questions from the council? <br />In Opposition: <br />Joseph Shabazz- I am in rising opposition not necessarily of the tax abatement in hand but the <br />way of group of projects are at this point. We examined the practice and application, we found <br />that Great Lakes Capital has indicated that they have affirmative action plan, I'm very concerned <br />about their affirmative action says that minorities have a hard time getting contracts and <br />employees from South Bend. We found out from community investment that no -one verified <br />that they actually had what they planned. We think that's an issue, we think, we are not trying to <br />appeal to anyone's integrity but we live by the axiom to check to verify. We believe that it is <br />totally in the interest of the city to ensure this, that there is an affirmative action in plan in place <br />that can be implemented. For that purpose I would like to humbly suggest that you table it until <br />Great Lakes Capital shows you that affirmative action plan. <br />Rebuttal <br />Great Lakes Capital Development (Co- presenter) - Sure, we appreciate the opportunity President <br />Davis and members of the council. With respect to the abatement application, is the council <br />aware that the council considers the number of years of the abatement based upon the <br />corresponding points scheduled. One of the points, points allocated to this project for electing <br />and selecting unique contractors that have affirmative action plans in place as the council is <br />aware this is a project that is also subject to a development agreement with the redevelopment <br />commission that requires there to be a broad base in essence advertising public and more <br />engaging contractors. Under the abatement, for ordinance the ability to achieve affirmative <br />action plan is a goal and objective to have the level playing field to broaden the field of <br />applicants in order to ensure that there is diversity to those that are engaged in the job. And in <br />this project I know Great Lakes Capital is planning to work with the Michiana building <br />association, organization as well as apply to all of the terms in the development agreement to <br />12 <br />