Notes for Upcoming Meeting

SOUTH BEND COMMON COUNCIL MEETING on Monday is to request 11 TAX ABATEMENTS and take out a NEW BOND for $4.2M for a Zoo Entrance.

NOTE: In the past 7 years there have been $117M in TAX ABATEMENTS given. The Mayor granted TAX ABATEMENTS of
$36M in 2017
$25.6M in 2016
$19M in 2015
$15.4M in 2014
$18.4M in 2013.
There were 64 $0 / 10 year Abatements up to 2018, which means they pay ZERO taxes for a decade, so the impact will be for a long time.

COMMUNITY INVESTMENT - Councilman Gavin Ferlic, Chairperson, James Mueller, Community Investment Director
1. Bill # 18-42 Modifying and Reconfirming Resolution for Historic JMS Building - 8 New Jobs, 10 YEAR TAX ABATEMENT
2. Bill # 18-43 Modifying and Reconfirming Resolution for JSK Development (Ireland
Hospitality/Holiday Inn Express) - 17 New Jobs Got 2 YEAR TAX ABATEMENT and now wants 6 more YEARS TAX ABATEMENT
3. Bill No# 18-44 Modifying and Reconfirming Resolution for JSK Development (Southhold/Courtyard
Marriott Downtown) - 38 New Jobs, 9 YEAR TAX ABATEMENT and now wants an ADDITIONAL 3 YEAR TAX ABATEMENT
4. Bill # 18-45 Modifying and Reconfirming Resolution for JSK Development (Southhold/Hall of
Fame) - 2 Year VACANT BUILDING ABATEMENT - (HALL OF FAME BUILDING) 
5. Bill # 18-46 Modifying and Reconfirming Resolution for RDistrict One (Studebaker Building 84) - 19 New Jobs, 10 YEAR TAX ABATEMENT and now wants 2 MORE YEARS TAX ABATEMENT
6. Bill # 18-47 Modifying and Reconfirming Resolution for Imagineering Enterprises (Personal
Property) - 5 YEAR TAX ABATEMENT
7. Bill # 18-48 Modifying and Reconfirming Resolution for Imagineering Enterprises (Real Property) - 25 New jobs, 6 YEAR TAX ABATEMENT
8. Bill #. 18-49 Modifying and Reconfirming Resolution for Tower at Washington (Hotel) - 45 New Jobs, 10 YEAR TAX ABATEMENT
9. Bill # 18-50 Modifying and Reconfirming Resolution for Tower at Washington (Parking Garage) - Jobs ?, 10 YEAR TAX ABATEMENT
10. Bill # 18-51 Modifying and Reconfirming Resolution for Tower at Washington (Retail) - Jobs ?, 10 YEAR TAX ABATEMENT
11. Bill # 18-52 Modifying and Reconfirming Resolution for Tower at Washington - Jobs ?, 10 YEAR TAX ABATEMENT

The Assessor's process is to have all Form 11 Assessment requests by January 1st. If they submit the request after that date, they Assessment will be for the following year. These companies did not file their Form 11's on time and now want exceptions and 6 to 10 year Tax Abatements.

NOTE: ROI (Return on Investment) Reports were NOT included in the meeting packets and NO DOLLAR AMOUNTS stating the tax decrease impact were included in the packet which would inform the Council and Citizens on the financial impact. 
Also, under Section 2-84-14(h) the company is to repay the abated taxes if they do not meet the agreed upon goals within 90 days after being notified.
After careful research, we found many companies did not produce over 10 jobs and 140 Abatements given created NO NEW JOBS at all. We do not know if the City has used this "claw back" clause to get back the taxes owed to the Citizens.
It is "best practice" to give Abatements - OR - TIF (Tax Incremental Financing) where the developer gets millions of tax dollars to rehab an area, not both. When TIF monies have been given the Taxpayer has already given and the taxes is where they get their return.
TIF Funds are currently showing DEFICIT AMOUNTS. If TIF is not payable, the secondary source of repayment is Property Taxes.
You can see the analysis and copies of the original City reports at: www.michianaobserver.com/abatement-reports.html

Bill #42-18 Appropriating Additional Funds
Bill #43-18 Department Budget Transfers

Bill # 44-18 The City wants to issue a Bond for a Debt amount of $4,205,000 to put a new entrance at the Zoo. The Zoo is now a seperate 501(c)3.
NOTE: PARKS recently received millions in funding in 2017 and now want to add another Bond.

OTHER NEWS:
At this time the Mayor has informed the NRC, Neighborhood Resources Connection, Funding will be cut in half to $50K leaving NRC to cut back on its programs for the neighborhoods.

The real cost of "Smart Streets" is $34M when you add in the interest and annual payments of $1.7M until 2037. $21M was what was available after the bond was issued. There was an additional $1,429,996 charged in Capitalized Interest since the City did not pay on the Bond for 2.5 years, which reduced the amount available to use on the project down from $25M.
For a complete report: http://www.michianaobserver.com/debt-service-smart-streets.html

A winter amnesty program for the Homeless has not been finalized, but there have been several community meetings.

TUESDAY there will be a **SPECIAL** Council meeting to discuss City debt, Cash Reserve decreases ($87M in 3 years) and the $60M+ Deficits. County-City Building 4th Floor at 5 pm.