City of Bloomington, Indiana Economic Development Commission, 17 Jul 2020

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From YouTube: Bloomington Economic Development Commission, July 17, 2020

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meeting agenda: https://bloomington.in.gov/onboard/meetingFiles/download?meetingFile_id=7195

A

All right, so um I'm gonna call to order this meeting.

A

Of the city of bloomington economic development, commission meeting.

A

It's wednesday july 15 2020 and I have about 4 4, 16 p.m.

A

In the afternoon- and the first thing I like to do is do a roll call, so first.

A

We'll do the commission members and then everybody.

A

Else in attendance, I'm curt zorn.

B

Jeff mckim vanessa, vanessa mcclary all right. I think that.

A

Covers that and how about the other folks.

C

Kate, I think joined us as well, and malcolm is just joining us, so kate.

C

I don't know we could.

A

C

Are you there hi yep, I'm here great, okay, malcolm we're doing introductions, so you.

A

Want to introduce yourself just say: you're, a malcolm hi, malcolm webb. I'm.

A

Here, okay and kate, you want to just.

A

Say your name, I mean, I think it's important. We just go around and say our names: okay, yep, kate, rosenberger, hi,.

D

Okay, don't be shy. Larry come on larry allen for legal.

A

And I see keisha goodman is that right, acacia yeah. So let me introduce.

C

So this is uh so it's alex kelly, I'm gonna, consider goodman is new to the.

C

Economic, sustainable development team. She just started two days ago, so we're.

C

Going to hand the meeting over to her that's exactly and then you you in the.

C

Background uh martina, patrick, is also a new member.

C

Relatively new member of the teams, we last met she's running the um the.

C

uh Meeting for us today, so those are two esd.

C

Faces that you'll see at some point and then of course,.

E

All right, that's yeah, yep, so I think we're all set.

A

So, let's move to the next part of the agenda, which is the approval of the.

A

December 18 2019 minutes, so anybody have any.

A

Comments corrections, if not a motion move. We.

A

Approve do I have a second I'll. Second.

A

All right move and approve any discussion, if not.

A

All in favor say aye aye anybody opposed can say, nay. I guess.

B

Actually, point of order, I hate to say it, but we're required to do roll call votes.

B

For all um all right.

A

Okay, I'm new at the zoom stuff. uh We I haven't been eating before we've taken.

A

Votes so well, I have but the meeting I have with faculty.

A

Athletics rep: it's we do it sort of informally all right. So we do a roll call vote. So um jeff, yes or no.

A

Yes, vanessa, yes, um it's kate, so is kate. A member.

A

Alex because I'm not sure who the new members are kate is a new member. Kate is.

A

Yes, she's the represent city council. Sorry, kate, didn't know that. So no.

D

Problem, it's totally fine yeah. This is my first meeting because I think it's the first one of the year. um Yes, I'm good with the minutes. Okay,.

A

Malcolm you, gotta mute yourself, malcolm malcolm.

A

We love watching your mouth move, it's better. We can hear the sound coming out of it. He was giving a whole speech there. That's right, foursquare.

A

I uh I'm abstaining, because the minutes show that I wasn't there, which.

A

Is weird because I remember this conversation, but I'm wondering if it was for a different project that we were running. We were authorizing.

A

Renovations no, this this is. This was a an update. We had.

A

Talked about this in a previous meeting, um I don't know how.

A

Long ago, but then this was sort of an update after some.

A

Things occurred so right, then. That's really my point. No.

F

I don't think I don't. I don't um vote on minutes that I said I wasn't.

G

Here, so all right, I'll just insane if it, unless you need it.

A

No, that's fine and I've got an affirmative vote, so we're all set up.

A

With that, so we have no old business, but we do have new.

A

Business, and are you serious that you're going to make case engagement? I was going to say: that's not very nice.

A

I'm assuming jane's going to take the lead on this right, alex.

A

Well so uh so you know jane, actually, I think her.

C

First, one of her first meetings was in december and so.

C

uh We're gonna ease her into the economic development uh commission.

C

um That this is a little bit of a of a new thing for for for jane. So so what.

C

What I thought I would do is take us through the present.

C

uh Today um and and then uh jane certainly has familiarized herself.

C

A lot with going on in the background, we'll certainly pick it up from here, but.

C

It might be easier to do that for a little continuity turns out compliance.

E

Is a little less predictable during um covid.

E

Yeah so to that point, uh what I wanted to do.

C

Was so what we for everybody else, who's new or who hasn't been through this.

C

uh Once a year, we report out to you and then with our recommendations about.

C

The tax abatements that have that are underway. We also share with you.

C

Things that have expired, and we share with you things that are on their way that haven't actually started to hit. Yet.

C

um And then a cup and any other items that that the.

C

uh That we've undertaken with you, as well as the council.

C

So we do that once a year and then we um we present the with your recommendation.

C

Assuming you recommend it, we present it to council, all of which has to be done with a certain period of filing.

C

Forms that are done annually by recipients of tax evasions.

C

So what this is today is a presentation of the status um I'll. Give you a little.

C

Background uh I'll go through the active ones.

C

What's different about today and to jane's point is we have had the darndest time, as has the county.

C

uh Getting our hands on certain filings that uh either have been sent and and.

C

Somehow didn't end up where they were supposed to end up in with the county.

C

uh uh Or uh people were not sure about deadlines. The whole thing became a.

C

Little bit of a mess, so we've been scrambling a little bit. So what we need.

C

uh To cover with you today is, we can do this in one of two ways we can.

C

Either defer our aggregate recommendation.

C

um And and wait until those final pieces of.

C

Document documentation come in or we recommend we, we ask for your approval.

C

Of our recommendations for the known quantities.

C

And we follow up with you with the ones that are trickling. It.

C

We can maybe decide that after we've gone through the presentation, but I just wanted to lay that out for you, because that's kind of the decision we need to make and it will require us actually to have.

C

A special meeting, I think, larry between now and.

C

And close the business tuesday of next week, so we're going to have to.

C

Reconvene quickly, if either way, because again, we need to be able to close the.

C

Loop on these before we go to the council on wednesday and make our presentation to them, so I apologize for the extra meeting. I.

C

Apologize for this process, this has been uh hampered in part by.

C

The some of the pandemic issues and people, not offices, have been a little.

C

Bit uh hit or miss so a a second larry. A second meeting is.

A

Required a special meeting, we can't do something where we.

A

Approve it contingent on or something along those.

A

Lines um that is a way of handling it uh as long as the contingency.

G

Has two requirements uh you could you can approve it contingent on staff.

G

Review as long as whatever you approve gets.

G

Disseminated and included with the next meetings minutes.

G

So you can handle it that way. If you don't want to handle a special meeting.

G

If you want to consider the material, though and scrutinize it.

G

Before it goes to council, then a special meeting would be the most.

G

Expedient way to go so you do have those two options.

A

We can talk about this after the presentation, but I was thinking.

A

If we can do a contingent, maybe we can see the updates whatever we get by email.

A

And, and if there are any questions concerns then we could convene a meeting. If not we could. I I don't know if it's.

A

Allowable but maybe affirm it via email instead.

A

I'm just trying to avoid everybody's got busy schedules. That's all, but.

A

I'm just throwing that out you can. You can mull that over larry, why.

A

Alex is going forward how's that okay sounds good.

C

So this is gonna, be a little bit dry, uh so I um you know.

C

Hang in there with me and we'll go through it by all means, uh so I'm going to share a screen by all means jump in ask questions along the way.

C

And uh we'll take it from there all right.

C

So you'll see, can everybody see the screen? Okay,.

C

Yes, okay, so you'll see I've noted this report.

C

As being draft all the way through, because it the way that it works it, it.

C

Needs to kind of roll up all the data needs to roll up and we're missing some data. So we didn't want to mix bad data with good data in this case. So what we're doing again is the the july.

C

15 presentation to you all and then on tuesday.

C

Wednesday, the 22nd we'll present to the common council with recommendations and.

C

This is uh the annual tax abatement summer.

C

um So in the presentation I'll go through an introduction.

C

I'll talk about the economic impacts of of the.

C

um Of the tax abatements, uh we actually don't have any residential projects, pure.

C

Residential projects right now, so this section is empty, uh but we do have.

C

Mixed use projects, commercial projects and then we've grouped the cat. The.

C

Couple of um tax abatements that have that, where the filing was not received.

C

Together and we'll talk about those and then uh other projects that are in.

C

Progress uh beyond tax abatements, uh by the way we will publish this to.

C

All of you and to the website, uh so you don't have to take notes if.

C

You don't want to, but again it will be updated before we.

C

We finalize it for counseling, so tax abatements, uh as you know,.

C

uh Probably are are phased in uh for new property taxes and they are.

C

All or part of new assessed value that becomes exempted in some way from.

C

Paying property, tax um and, and just to note, this is only for.

C

uh Added assessed value, not cumulative assessed value, including what was there.

C

Before from improvements, only in other words,.

C

The tax abatements can go from one year to ten years.

C

um It's uh typically a sliding scale from a hundred percent.

C

uh Down to zero, but uh the the uh alternative deduction schedule became.

C

Allowable and so really it's wide open. These can.

C

These can be all over the map when it comes to what kind of percentages off uh per year are applied and it becomes a negotiation based on.

C

What the petitioner is, bringing as community benefit.

C

So basically, the way that this works is uh it's. You know it's a local economic.

C

Development tool and the the city authorizes the tax.

C

Abatement but the county administers it uh because it is on on property.

C

The evaluative criteria that are used- and that was.

C

Adopted by in 2010 um looks at.

C

The creation of full-time permanent living wage jobs.

C

The creation of capital investment to enhance the tax base.

C

And then also looks at quality of life and environmental and sustainability.

C

Impacts, affordable housing, community service and.

C

Community character, the council requires that the economic.

C

Development commission passes along a recommendation and then.

C

It accepts that recommendation or not at the at their review, so uh alex I'm sorry yeah. Can you go back.

B

To that so the the um this body did come up with.

B

A recommendation for a news structure for evaluative criteria has that not.

B

Gone anywhere, it has gone almost all the way.

C

To the end, uh I talked to that at the end of this presentation.

F

Okay, all right cover it quickly. Then, okay,.

C

So this is how it works uh at first, uh our department.

C

Economic, sustainable development receives an application.

C

um And a statement of benefits and the statement of benefit comes in the form.

C

Of what's called uh indiana form sb1, which essentially lies lays out.

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uh What commitment the the petitioner is making, either in.

C

Capital investment or in new jobs and new salaries um that sb1.

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Becomes the anchor against which future criteria are evaluated.

C

um And then, at the time the submission is made economic development.

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Commission, uh you know is, is presented a recommendation.

C

Has to establish an economic revitalization area.

C

And then, in some cases, economic development target area, if appropriate,.

C

And the abatement term and the schedule of the abatement is determined.

C

And, and and and recommended by, the economic development commission.

C

In a in a resolution, then that is passed along the common council.

C

They review that same, they have their own resolution, but they they.

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uh Review it, they uh then uh have a public hearing and, at the end,.

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Of the process they have what was called a confirmatory resolution.

C

Which, which is following the uh a certain interval for the public to.

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Comment um and and then either it confirms or.

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Modifies uh what was presented or rescinds, and so.

C

That's the general process. um Now I I will note again.

C

Due to code, 19 deadlines for submissions of cf ones were delayed, so they are.

C

Typically, due on may 15, they were moved 30 days out to june 15th.

C

That created a little confusion and then governmental.

C

Offices were inconsistently staffed in the process. I think.

C

So that that that just made this whole period pretty hard to.

C

To nail down exactly what paperwork had been received or sent, and so anyway.

C

It's a little bit of a muddle, but we're getting through it. um Basically, what.

C

Happens as a process, though, is in normal.

C

Circumstances and and in these as well a uh essentially.

C

What the petitioner has to compare actual.

C

Results against what they said, they were going to do and the way that they they certify what they, what the actual results are.

C

Is self-certification through a form called the cf1.

C

Cf1 is an annual form that is uh filed with a county auditor.

C

And and then it's also copied to the city clerk.

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uh For reporting the common council, so that form becomes an annual submission.

C

As long as the tax abatement is on is active, that form has to be received.

C

Each year, that's the form where we've been a little hit or miss getting our hands on on some filings.

C

uh The council um then has given the esd the economic, sustainable.

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Development department, the responsibility to compile.

C

And report to you and then forward and afford it along to council for any.

C

Action any questions I'll keep going.

C

So um now sort of section two, uh so the economic impacts.

C

Of the tax abatement, so what we've done here is we've looked at all of the tax.

C

Abatements only the ones that are active and only.

C

The portions of the ones that are active, so there are a couple of instances where you have either a real estate. That's.

C

What re stands for, or a personal property.

C

uh Tax abatement: there are at least two instances where one portion of the tax.

C

Abatement has been activated, but not the other, and so just to be clear. These numbers on the sb1.

C

Layout, all of the commitments that they've made, but under the actual.

C

Investments, it's only those things that they have certified.

C

That they are that they are underway. So it's not a complete picture.

C

Of what's going on in the case of of uh the shortfall.

C

From commitment to actuals in commercial real estate, for example, this is.

C

Catalan's 2019 tax abatement and they have uh they have done they're.

C

They're doing it out in phases for a total commitment.

C

Of uh of a certain number they've only gone.

C

A certain portion of that way, so they've developed, delivered one phase.

C

Of that project, rather than the entirety of the commitment, so that that's what's.

C

Going on here, but nonetheless, you'll note that in the.

C

Proposed new investments, there's a lot of uh investment uh being.

C

Proposed and we're well along the way of of having that investment um uh met. uh We we have a lot more to go.

C

But but we are confident that that's gonna happen.

C

So I've broken it up: commercial, real estate, commercial.

C

Personal property, uh mixed use and um and residential and again there's.

C

No residential this year there have been in the past.

C

So when you look at the economic impacts and the progress towards the new.

C

New jobs and the salary um proposed new jobs of 286 for proposed.

C

New salaries of 17 18, 17 million 452 000.

C

uh That is all the sb1 portions, so this is what they said. They were going to do.

C

Which was which equals a as an average uh proposed new salary of 61.

C

000 um at 21, what's actually happened is 1 114 new jobs with an average salary.

C

Or actual cumulative salary of 69 million.

C

248 917, which is an average of 62 162., so 62 162 dollars.

C

Yep, can I ask you a question: is that okay.

D

um Okay, so this is catalan and is that what you're saying.

C

Yeah we'll go into what rolls into these numbers, but what's driving that one.

C

Largely is catalan, just exploding, okay, that's.

C

What I was gonna ask like: how can they be so far off.

D

What they thought they were gonna bring in. It really is like new jobs, and it's.

D

Not like somebody coming and then them replacing it. It's like new roles.

D

New positions right, like they're, actually employing.

D

1100 people- okay, thanks! So, um and that's not just this latest.

C

Push kate: this is the you know. The latest push is, obviously you know they have. They have two uh coveted um projects covered related.

C

Projects underway, but they were also on a tear before that started so.

C

There's there's a lot of stuff going on over there.

C

The last number here is that it adds the one.

C

Thousand one one, four, with the actual commitment to retain jobs as well. For.

C

Cumulative 2673 jobs and 158.9 million dollars, which is.

C

uh I'm sorry, you know what this is a typo. This should be 59.

C

458 I I figured that I will update that.

C

So um these are, this is a chart. That's a little different.

C

In that, it's actually looking at the uh the.

C

Assessed values, as opposed to the invested values.

C

So you know it's it's a different number uh than.

C

What you'll see here um and and the assessed values also includes.

C

You know uh uh it does not include lands, but it only includes the improvements.

C

So we are at 147.7 on that. The bottom line is tax abatements. You.

C

Know are are helpful in driving investment they're helpful, driving job growth. um We certainly are very.

C

Careful about when to use them and whatnot we've turned people away. We went away recently so uh we're not we're.

C

Not suggesting let's go on a on a on a tax abatement spending spree here.

C

What we're suggesting is when, when they're well used, and we believe.

C

They have been well used, they uh they yield some positive results.

B

So basically, you're saying that these projects that are described in here.

B

Have resulted in the increase in assessed value of 148 million dollars.

B

Or whatever that number came out, yeah.

C

And that's a number that that will be. That will be one of the numbers that.

C

Will change because we are not, including in those counts, nor in any of the.

C

Roll-Ups any of the benefits that stem from cf.

C

Ones that we have not yet received, so we are waiting for that, uh so we.

C

Wanted to try to keep the two buckets clean of each other.

A

And alex you did say it was the improvement of sus value. Only.

A

Right, not the land, not the land,.

C

So um I'm going to quickly uh go through these.

C

uh Starting with the mixed use projects uh urban station.

C

On 403 south walnut, this was council resolution 1612. So.

C

You could recognize from the numbers. The first two digits are the year that it.

C

Passed so six 2016 was when this went through city.

C

Council and what we have is basically us listing.

C

For each of these uh and I'll go through this pretty quickly, you can go through them yourselves, but the the statement of benefits. This is a summary of what they put in during the.

C

Sb1 step where, in this case, it was a 10-year.

C

Real estate uh abatement, new investment of 11.5.

C

11 million 500 000 uh retaining 10 employees.

C

Creating five new with a with a retained, 400, 000 salaries, estimated new salaries.

C

Of 115 000- and this was gonna- this is a.

C

Construction of uh of a mostly a housing complex, but it had the.

C

Chocolate moose on the first floor, uh if you, if you recall.

C

And that that there was a set aside of of workforce housing and.

C

uh Units uh for with a 99 year, duration period.

C

In this project, um and so what's happened,.

C

uh So a couple things have happened in this case which have complicated things number one. This this property has been sold twice since.

C

It went through tax abatement. uh There was a recent acquisition last.

C

Month uh by virgin health, I think they're called so uh so there's a little bit of a there's.

C

Been some hiccups related to this, but it does also um mean that it's a.

C

Little it's hard to compare apples um and.

C

Apples here the retention of employees.

C

Was um associated with the management company.

C

That uh built the product and and uh obviously virgin held, is not is not.

C

Submitting their own, you know, company, employee,.

C

Account uh associated with this property, so you have a pretty significant discrepancy in terms of retained.

C

Employment, uh they did shed one job so that that's a net loss of one job.

C

However, the actual new investment, uh which was uh 12.6 million.

C

Exceeds the 11.5, so you know and and the assessed values.

C

Actually grown significantly year over year, so that's that's.

C

That's a interesting dynamic that we saw coming out of uh year-over-year.

C

Comparisons of assessed value, so you know this is all this was a.

C

Little close, but we do recommend that they've substantially complied.

C

With this, the statement of benefits again, it's an apples and oranges.

C

Comparison and if you look at it in a pure way, they've largely held up, uh you know an employment number that they.

C

Committed to and they've exceeded an investment number.

C

That they committed to- and we are deriving from an assessed.

C

Value perspective, we are deriving, uh you know very positive yields from it. So.

C

So we felt like uh that this was worth a recommending.

B

So so this gets back to my question earlier about the.

B

Structure of the of the criteria for uh granting abatements. This is.

B

This is where we start, you know: square peg and round hole where we're trying to.

B

Fit housing abatements into uh a structure.

B

Meant for employment, and it doesn't always make.

B

Sense I mean this one makes a little more sense, because there is, I mean you have the chocolate mousse. There is some employment associated with.

B

It, but still this is a housing project and you know.

B

Trying to justify a housing project based on keeping on a.

B

Maintenance person or or something like that, just doesn't make.

B

Any sense it makes sense if what you're trying to do is build housing right so, and I know you said you're going to talk.

B

About that, at the end, this is just my frustration with the structure of the.

B

uh Of the criteria yeah and one of the units that we added.

C

One of the layers of criteria was actually the create creation of affordable housing units which has been you know.

C

Very a focus of the tax evasion in the last couple of years so totally makes.

C

Sense- and I think we just need to kind of clean that up and get it in front of council and be done with it in the meantime. That's fine! That's why.

C

We didn't sweat the job loss a little too. You know too much because that again.

C

It was the that's not really the point of it right.

C

And they have been delivering against their affordable housing commitments and.

C

And they assess you know the investment exceeded. What it originally was intended.

C

To so, we felt comfortable recommending this one exactly okay,.

C

The foundry so you'll see uh this is now now we're treating this as a commercial.

C

Project everybody knows that that or not everybody, but I assume you know that uh there are floors of the foundry that.

C

Are not that are residential and um and they're and they're floors of.

C

The foundry that are commercial and then there's sort of.

C

Private privately held uh top floor stuff. This.

C

Is only applicable to uh the commercial and the the.

C

Residential uh in terms of the tax abatement, but really.

C

You'll see a lot of the a lot of the.

C

Property side of this is is really really into the commercial side, so we.

C

Kind of called this one commercial probably could go either way, but but that's largely where the the personal property is coming into play.

C

So it's both a real estate and a personal property improvement again. This.

C

Was done in 2014, so the previous administration.

C

uh The foundry took a while to build itself out.

C

Real estate was for five years and personal property was for ten years.

C

The estimate new uh investment on real estate was eleven five at the time.

C

This is again their sb one. This is what they committed to.

C

And the new uh investment on personal property was four hundred thousand.

C

They, uh uh you know said they would retain forty.

C

Fifty four employees and add 11 new ones retaining 3.6 million dollars in.

C

Salaries and adding 825 000 more dollars and again the the.

C

Tax abatement does not include the top floor residential units.

C

But it does have commercial space on the first and second floor. That's folded in.

C

On the compliance um uh they're actual, so so the person the I.

C

Should clarify that real estate improvements have been.

C

Completed and are being booked. This is another.

C

This is one of those cases where the personal property has uh not yet fully been purchased to be able to have them trigger that.

C

Portion of it so they purchase some, but they haven't. They have not submitted to trigger that portion of it. So in terms of real estate.

C

They've invested 18.875 876 on the on the real estate side, which.

C

Well exceeds the amount they originally thought.

C

They have obtained the 54 employees and the salaries associated with those.

C

And added um new 11 new, with the with a salary number that actually exceeds the.

C

The other one and the assessed value for that property right now is 15.9.

C

So we find that uh you know they're they're hanging in there solidly. They.

C

Have not completed the personal property side of things, uh but that they.

C

From a real estate perspective um that they have met.

C

The you know the compliance uh criteria that we expected to see.

C

And this is uh in the first year of of the five for real estate and again, the.

C

The personal property is not yet started. I have a couple questions. Yep.

D

uh What okay, what is the personal property.

D

Here so technology equipment, um if you go back to the to the.

C

Original resolution, which I have pulled here for our reference.

C

Basically, what they have committed to doing is.

C

Purchasing new information technology equipment.

C

And they have a they've described it in their application.

C

And so that that equipment uh is associated with the businesses that are.

C

Sitting inside of the uh of the lower portion of.

C

D

Okay, technology equipment- and so I'm just trying to figure this out so.

D

I don't know a lot about this property. Is the people the people who own it.

D

Live in the top two units is that we're planning on.

D

Our planning on that is that right, yeah, I think those are. I.

C

I those were excluded because those I believe were set aside to be owner.

C

Owner-Occupied units and that doesn't count for the real estate.

D

Improvements, that's correct. Those are kind of luxury.

C

Condominium type, uh you know, uh set-aside.

C

At the time I'm new here, okay yeah, so what.

D

I mean I would consider all of these units luxury, but I actually I've been in.

D

Some of the regular ones- and I have looked at one of the top floor ones.

D

I get it's like a different price point for sure.

D

I don't know, can you just explain how that's not so real estate is different.

D

Than some kind of luxury real estate that we.

D

Like that, we look at for economic development. Is that.

C

I have to tell you this is also before my time.

C

uh Kate, so it's hard it's hard to piece it together. What I do know.

C

Is that um off, you know in the current administration.

C

We do not, uh we do not uh like to provide tax abatement.

C

Unless there is a very distinct um you know, sort of carve out of things.

C

That we don't think qualify so often, you know if someone is putting.

C

Affordable units on on the table and those are, as you know,.

C

They're also market rate um and they're, not being you know, then.

C

Often, what we'll do is we'll only proportionately.

C

Create a percentage structure that that applies to the portable units.

D

Okay, yeah, that makes sense like, even though these condos are expensive, as.

D

Is the two on top are definitely in a different world, so the.

D

Former administration was also like this is a different you're, not getting a tax.

D

Abatement for these two units- I don't have- I don't- have perfect.

A

Recall but when we talked about this years ago,.

A

I don't recall as making any distinction at our level, but when it went in front.

A

Of the council, I believe they carved out those two top.

A

Units and exclude them from the abatement, if that, if I remember correctly, that's the way it, it transpired.

A

Yeah in the interest in resolution 1415, section c3, it says the two penthouse.

C

Condominium units proposed for the top floor of this project shall not be.

C

Eligible for a tax again, so they've carved those out, specifically okay, yep. That makes sense. Thank you. That makes sense. There was.

B

Extensive debate in city council about about this project.

B

At the time related to this very project, now I have to say you know I. I certainly.

C

Don't mean to to second-guess what happened back then, because I have to say that number one I mean that that there's some very good strong, dense employment right on the bee line.

C

In a you know, uh great, you know, good-looking building and and.

C

So you know, I think, no at that time alex you're right. I mean.

A

This this was a viral cross. It was a very strong project and.

A

The the 50 some jobs were kind of very important jobs. If I remember correctly,.

A

Quite a quite well established technology company again.

A

My memory's not perfect, but there were really good arguments for tax.

A

Abatement for the the majority of the project.

A

Yeah, so uh I keep moving here anything else on the foundry, so the next.

C

One is catalint, you might know it as cook pharmaco.

C

Dba calendar, so I'm just just to start. There are actually two catalan uh tax abatements one for some work that was done started back in.

C

2015 and then there was a new one for the additional work, that's being.

C

Done uh you know, and that was approved by.

C

Council in 2019, so this is the 2015 one. It is only.

C

Personal property for 10 years estimated investment of 25.

C

Million retaining their baseline of 550 jobs and.

C

Adding 70 new jobs for 3.2 million dollars in incremental.

C

Salary, so this is very straightforward: uh personal property abatement against a.

C

Generation of new jobs, there's no real estate implication uh no.

C

Real property, real estate implication and basically at.

C

The time they were making investments in the building, including machinery and equipment, to expand.

C

Formulation and filling and packaging of uh vials and syringes.

C

And so they have uh exceeded the number of of.

C

Of dollars invested in in personal properties, so instead of 25 million.

C

They've invested 31.8 uh nine thirty one point: nine million of.

C

Course retain those jobs, as they said, they've also created 686. So this is.

C

uh Kate, I think you were asking this earlier.

C

This is before this whole coven related surge that was going on. They were.

C

They were doing a lot of hiring they they well exceeded the numbers.

C

Off and we sort of pegged them to this 19 uh 2015.

C

Resolution so there are 686 new employees with a 37.1 million dollar.

C

Salary uh was was, of course, you know really really much higher than we.

C

Thought, and so we recommend again in this case, substantial compliance.

C

And the abatements in the second of 10 years.

C

So this is the second abatement uh since year.

C

2019- and um this is this- is the one that has the two.

C

Parts and I'm gonna, uh I'm gonna, really focus on the.

C

Personal property, one because the real estate one hasn't uh hasn't, kicked in yet or they haven't.

C

Filed for that yet- um and so but this is a combination, real estate.

C

And personal property for 10 years, uh with an 85 million.

C

Personal property, investment and a 40 million dollar uh real estate investment, uh as you may know, the building that they have of.

C

The the cattlemen building is the former the former pharmaca building.

C

And then, before that, it was an rca building, a lot of empty space, and so.

C

The our our strategy at the time was hey. If we can help them do a little build.

C

Out start the build out process of this excess capacity. This becomes a.

C

Substantial center for biologics in their network- and I.

C

Think we're seeing that play itself out now with this uh emphasis they put in.

C

Bloomington for some of the the covid related work.

C

That's being done right now and they're hiring they're on a on a you know: hiring um spree right now, trying to fill in the.

C

Jobs for that work, so we feel like it's actually kind of.

C

Playing out the way we'd hoped it would play out um with a retention of 839 uh employees and uh 43.9 million dollars. They.

C

Estimated at the time that they would grow by 200 again, this is pre-coveted, so.

C

200 additional employees with new salaries of 13.3 million.

C

At at the time of the filing they'd, been.

C

They'd added 397 employees uh with retaining that baseline, their investment.

C

Of of 40 million of I'm sorry, 85 million uh has has they've made 34 million of.

C

That investment, but again this is phase one of a multi-phased investment that is.

C

Anchored, that is, that is hooked to this uh tax payment, so we feel like they are on schedule: they're, certainly exceeding their their employee accounts. I'm sorry and.

C

And that we see this playing itself out very positively, so we're recommending.

C

Compliance against the phase approach of.

C

Of their statement of benefits, this is the first year that they're.

C

They're going after the personal property.

C

Who's, your energy, you may know this building down at the south side of town.

C

uh It's a real estate, only tax abatement for 10 years.

C

Estimated 20 million investment retaining 116 employees.

C

With 11.1 million dollars of retained salaries and no new employees, forecasted.

C

At the time it's a really glorious building. If you haven't been in it leeds certified, 80, 000 square foot headquarters.

C

um And in terms of compliance, so this is they put this through in terms of.

C

Compliance they are, they are.

C

Slightly exceeding the investment that they said by 800 000.

C

They have retained those 116 employees, they've added 16, new employees with.

C

5.8 5.9 million dollars in new salaries, um and so we feel like this is.

C

Compliant with the statement.

C

So this section is about filing that we have not yet received.

C

um There are two one: is the union at crescent.

C

uh That was uh council resolution 1730, so it was 2017.

C

um They were actually they they're in progress.

C

On the development- and they were, uh they had submitted an appeal.

C

For their assessment, they got this year, property assessment.

C

And so that delayed them in filing the necessary tax payment.

C

Paperwork, they decided to retract that appeal.

C

Just recently- and we received them this week, indicating that they would be.

C

Intending to file their paperwork for the tax abatement, we.

C

Do not yet have it in hand, and uh this is one of the ones we're.

C

Gonna have to circle back with you on the problem. uh uh With this one and and.

C

Willary, for that matter, is that we have never, unlike others, that.

C

Came in at the last minute, where we had previous years and we could assume.

C

Safely that that they had, they would not have uninvested.

C

For example, in the real estate stuff, like that in this case, in both of these.

C

Cases they're the first time, we'd be receiving their uh cf ones. So we don't really have a sense of comfort that we can. We can.

C

You know assume anything on it, so we are waiting for.

C

Union crescent and woolery mill, both of which.

C

uh Intend to file late in the case of the woolery mill. uh They.

C

uh Told us that they had actually uh filled out and mailed the form to the.

C

County's uh office, uh it was not received by the.

C

County, so we have no idea what happened, but I did uh receive and we we both received a scanned version of it.

C

Upon request today, so we have that in hand and we'll be able to.

C

uh Process it um and and start these two up, the union crescent. We have not yet.

C

Received but we we've asked them for it uh immediately.

C

So I'm not gonna spend a lot of time on these, but uh this is the union crescent.

C

It's a you know, 10-year real estate uh tax abatement, 17.6 million.

C

Dollar, new investment and it's affordable housing, so I mean that's.

C

Really to jeff's earlier point: this is this is how we've been using tax payments in this case and then in uh willary mill. You all are.

C

Probably familiar with that, um but there's an employment component.

C

To it, this is a real real estate, 10-year real estate tax abatement and they've renovated the the limestone.

C

Mill down there, and so it's it's pretty cool project.

C

This has been a little bit convol coming through because they had to extend the.

C

Original tax payment- it's just the project- has taken forever.

C

And then there's one that's just hanging out there. That uh was not supposed to.

C

File and hasn't filed this is a milestone, is also called southern knoll.

C

It's pretty close to the uh cemetery over on the on the west side,.

C

Of town- uh and we were just this- is we're tracking this one for, for.

C

Probably a filing uh next year, this is a 4 million.

C

10-Year tax abatement and again affordable housing focused.

C

uh We have carved out this is the real estate portion.

C

Only of the 2019 catalan, so you have the details broken out.

C

We just put it in in progress mostly to remind ourselves to look for it next.

C

Year so so this is a carve out of that.

C

um Last section here is other edc activity.

C

uh So you I'll go through this quickly, but but uh the first part of that is the.

C

Housing bond uh approvals that we've done and the second part of the tax abatement uh guidelines that jeff was referring to.

C

Before so, you may recall there been several bonds.

C

That have been approved through the economic development commission. These are really pass-through bonds. So, if they're not impacting to.

C

The city or its ability to bond, um but but in both cases, uh the value.

C

That we're bringing is really to be able to.

C

You know, have the bonds occur at a lower fee.

C

Structure to the petitioner than they might be able to get.

C

Elsewhere, which has real value to them, so in a sense it's.

C

You know it's something that we can do that costs us very little, uh but that.

C

Actually uh goes straight to the straight to the uh project, so in this case uh the limestone.

C

Crossing project is a real rehabilitation of what was.

C

Formerly known as canterbury house, um and it was about 26 million 208 units.

C

And they are all focused at 60 of the area median.

C

Income and so they're redoing roofs and trash enclosures parking lot.

C

uh Enhanced site lighting and uh accessibility.

C

And then inside they're doing new flooring and countertops, uh you know.

C

That the whole the whole uh renovation uh inside so.

C

This is great great project kind of rehabilitating.

C

Units to put them back on the market uh for lower income use.

C

And then this is a bloomington housing authority project at walnut woods and.

C

Reverend butler and they're doing also um they're doing.

C

It's complicated but they're doing what's called a rad conversion over there, essentially they're they're um acquiring.

C

Public housing and and uh and and putting it into a 501c3, that's been.

C

Stood up for that and as part of that process, they're renovating their units uh they're going to be several phases of.

C

This this is the first phase um and uh they're doing 116 units and.

C

Again, we just were doing a bond, a pass-through for that and then.

C

56 units with the reverend butler apartments.

C

um And so this is, this is a great project. It's it's wrapped up in a much.

C

Larger a program that uh bloomington housing authority uh has has undertaken, but in both cases we.

C

Had we had a role in it uh and an important role, uh and- and you.

C

Know it helps very literally I mean we've been told a number of times that.

C

The money that they saved goes directly into the unit renovations, they're, able.

C

To as a result to more units, so that's great alex. Can I point out on.

E

The limestone crossing that you we picked up.

E

20 more uh affordable units, so it was previously 80 at sixty percent.

E

Ami and with the new bond, it's now all one hundred percent affordability, that's great.

C

Jeff, you know you mentioned this. These are the the tax abatement guidelines.

C

uh I'm going to kind of fly through this, it's a little bit of a reminder to.

C

Everybody uh why don't I just go to the kind of the key slide, which is this last one um and and the recommendations to edit.

C

The review criteria, which is, I think, what you were talking about.

C

Right now, very geared towards jobs and and kind of the more of the commercial.

C

Side of things, whereas we've been using it substantially for.

C

um Affordable housing in recent years and so.

C

So the process that we went through in late uh 2018 and into 19 was to.

C

Essentially, look at those criteria reset them or add.

C

To them basically and um and then.

C

You know that will make it easier to judge the success of tax abatements in.

C

The future, because the criteria will be a little bit more aligned with.

C

In the cases of affordable housing, um tax abatements.

C

The criteria and the and the and the certifications will be.

C

More easily alignable.

C

So you know the the uh for the men. You know.

C

The creation of affordable housing units is a very specific thing that was added.

C

uh Also uh permanent living wage jobs um uh with benefits was was was added.

C

um And then also um increases in wages for the existing, so those are.

C

Those are the new things that were added in and that you did not see previously uh in the.

C

In the um the way that evaluative measures were taken on.

C

Tax payments: oh: go ahead: kate! Okay, thanks uh with the criteria we.

D

Didn't really look at the environmental and sustainable sustainability criteria in the start, but is there anything in there already.

D

About you know, transportation, infrastructure or.

D

Right, I mean now with affordable housing or with um not affordable housing, but.

D

New housing developments and with the land use committee we tend to.

D

Also, look at right, new bus lane, new bus routes or increase bus frequency.

D

When we're looking at adding apartments or condos and spaces so.

D

Can you talk a little bit about that? The environmental and sustainability criteria.

D

Yeah I mean it's pretty uh it's pretty broad right now, so it's not very.

C

Specific to things like transportation, but that is where you would put it right.

C

So people do to that in the sections that currently this is like going back to the beginning, kate. If, if you can see.

C

Of the uh application, the existing ones have.

C

You know quality of life and environmental and sustainability impacts.

C

And so you know um we're not getting so.

C

Prescribed that we're saying uh we're going to have we're going to have a criteria or criteria associated specifically with transportation.

C

We are going to evaluate that as they come in and those that do or don't.

C

um Will you know be judged partially as a result of that.

C

So I feel like I understand what you're saying, and I know that that's really.

C

Important, it's actually come up in a number of instances in projects that have come through to look carefully at that, and I think that.

C

That's um that's well worth doing.

C

um I'm not sure that we want to get so specific that we start to list out.

C

Criteria by at that level of of specificity.

C

Does that make sense it does, it does make sense.

D

um I mean as a newbie here. Where can I look at all of the criteria.

C

So everything that so uh well, the larry's is the best place for kate.

C

To familiarize herself with that, in the um ordinance.

G

So there's actually a there is a tax abatement.

G

Website to the city's website that has this document.

G

And pdf form, so you can see the criteria.

G

Some of them this is an enhancement over the statutory criteria.

G

A little bit because there are certain statutory elements: affordable, housing.

G

Is one of them there's minimum threshold for affordable housing that you have to.

G

Consider or whether it be in a economic development target area or.

G

Economic development area, but um yeah, thank you jane, that's exactly it.

G

So jane has just shared the website in the chat and there there.

G

Is a pdf form that shows a rundown of this.

D

Criteria of these criteria.

D

Yeah I'll read through those.

C

Okay, thanks uh larry all right, so there's uh that's it! That's.

C

The presentation I'm gonna unshare the screen.

C

And go back to the group, so we have any comments for alex and.

A

Jane and then so what do? What? What I'm sorry go ahead.

A

Jeff well, okay, so the the two pieces of.

B

Information that we're missing, uh you're, missing union crescent and.

B

Woolery are those the only two that's correct: okay and you've. You've.

B

Got the woolery information you just haven't had a chance to.

B

To deal with it and uh and then and union and crescent is still missing.

B

That's correct, okay, and so what we've seen so far other.

B

Than those two you don't have any uh problems with.

B

Recommending um finding of compliance on.

B

Any other than those two which we don't have information on yet is that correct.

B

Yep, that's right. Okay, so my take is that I would have no problem.

B

Kurt you mentioned fi a contingent compliance.

B

I would I would be comfortable with a contingent finding of compliance for.

B

Everybody, if the information received on those two.

B

Missing abatements were in strict compliance.

B

With what uh with what they had promised, I think, if they're not.

B

Then I think personally, I would want to review it again, but that's.

B

That's my thought. I think that makes sense.

A

You know, in other words, I think, alex jeff correct me if I'm wrong.

A

Our the first example you gave us there was some.

A

Areas that were very strong other areas that there was.

A

Deficiency right than than not the non-applicable to the.

A

Retained jobs right so that would raise some flags. I think, but.

A

If you look, if we get something like catalan, which is.

A

Fairly obvious that they've gone above and beyond what they.

A

Had estimated in their benefits, that would be an easy.

A

One for us to uh to approve by email, I think right, jeff.

A

Is that what you're thinking um yeah I'm I'm thinking yeah, I'm thinking we could.

B

Approve everybody that we've already that we've received the information for right now and then yeah and then just do a.

B

Contingent, I don't know if we're allowed to technically do it by email, yeah,.

A

It's really up to you larry, it's! It's that that's I'm looking at you larry.

A

So yeah you wouldn't be able to vote by proxy by email. What we could do is.

G

Approve it by contingency with a mandate that the staff includes.

G

Any approved materials in the in the future minutes that way we keep everything public uh just because this isn't a non-profit.

G

Board a typical non-profit board. Unfortunately, you can't vote by proxy.

F

Which would prohibit any votes.

A

So alex, do you want? Do you understand what we're trying to do.

A

Yes, absolutely uh so, basically, uh it's going to be.

C

There are, there are jobs and there are investment numbers.

C

And- uh and I what I hear you saying just to make sure I understand it is.

C

As long as we, uh they meet uh the threshold of both minimally.

C

uh Or exceeded, uh then you all would be comfortable if the cf.

C

Comes back and it matches against the those two criteria when it comes to.

C

um The the against the sp1s, in both cases, you would be comfortable.

C

uh Sort of saying it his you know contingent on that it has been approved if either one of.

C

Those is not as clear-cut as that like in the.

C

Case of uh of um urban station.

C

Where the jobs the jobs got funky, uh then then.

C

Then you would want to see that um and be able to review that.

C

Before we go to council, that represents my position. Yeah now.

B

There are three other members that haven't I haven't heard, uh but that that.

A

Represents my position: yep, kate, vanessa, malcolm how you feel.

D

I'm okay with that I am too yeah. Sorry, I had done.

D

Unu, yes, I'm fine with it as well. Okay, malcolm.

A

Okay and then we will then follow up with the actual.

C

Supporting documentation at the next meeting.

C

As part of the packet to as we confirm that judgment, should we not get together.

C

Between now and then right, so I'm assuming we need a motion.

A

That jeff has basically made we need a second to that.

A

uh To prove all second, all right.

A

All right jane, do you, I I assume I see you looking down. You must be trying to.

A

Take notes on this, so are you comfortable.

E

With what marnina is yeah marnina is, and it's recorded too so.

E

Okay, okay, okay! So any discussion so.

A

Basically, the way I understand it is you'll you'll use your best judgment if.

A

It looks like it's in compliance, we'll be all set. If you think we need to have.

A

A meeting you'll, let us know correct, right, alex okay,.

A

That's that's basically what I want to do, I'm trying to avoid having a meeting just for the sake of having a meeting if everything comes across. I agree with.

B

That all right, so um any other discussion on.

A

The on the motion- um I don't all right.

E

I think this should go in the motion necessarily, but should we talk about.

E

What the course would be if, if the um cf ones are not in compliance.

A

I think then we have to have. We have that we have. My understanding is we'd.

F

Have to have that meeting before the 20 seconds.

A

So we can decide whether we want to include them in our report or.

A

Exclude them, okay! So that's the way! I understand it.

A

Everybody else understand that way: go ahead. Yeah, kate, uh kate, has a good.

C

Suggestion, which is, let's maybe uh vote on on your on your.

C

Current disposal, but then at before we wrap up if we can set aside tentatively some time uh for that.

C

Final for a meeting early next week, just we've got it. We can just just not do it.

C

If we don't need it, yeah sounds sounds like a good good plan.

A

Excellent suggestion all right, so we have that motion on the floor.

A

We understand where we're going um as jeff said.

A

With zoom meetings you gotta do a roll call, so we will do a roll call.

A

And uh let me see if I can figure out how to do. Alphabetically.

A

Let's see mclary mckim, I think vanessa you're first.

A

Yes, jeff, yes, and now it looks like kate.

A

Yes, malcolm yes, it's unanimous.

B

Don't have too many z's in our.

A

I usually never paid attention when I went alphabetical because I always knew it was. I was going to be last, so I just you know, let people go off and do it.

C

For this unfortunately, you're you're lucky.

C

um So I will uh then ask if we can quickly do a.

C

A look at a calendar and see if we can pick up.

C

uh We wouldn't need probably more than 30 minutes.

C

On on either monday or tuesday morning um that that you might have some time.

B

So I'm available for either if we need to.

D

So I'm available for either as well. Okay same.

A

I'm available for either but earlier. Well, let's put it this way on tuesday.

A

I'm available up until 9 30 on monday, I'm available up until about.

A

10 30. 10 30 in the morning. Yes,.

C

But not in the afternoon uh the afternoon on monday is.

A

Well, I don't I don't you guys, probably don't know, but I've been appointed. The.

A

Acting vice provost, so my schedule has gotten completely hijacked so uh tuesday afternoon. I'm okay. After.

A

About two well, would anybody be, uh would everybody be able to do 8 30 on.

C

Tuesday morning.

A

I am that works for me. I can.

C

Let's hold that time: 30 minutes 8 30 to 9 a.m.

C

Tuesday morning, uh hopefully it doesn't come to that, but if it does we'll have.

C

That set aside- and we will try to make it as quick in.

C

And out as possible, with any discussions about uh discrepancies that we see in the in the final two filings and by the way.

C

If they don't file, they're out of luck and uh and we'll just move on without it, so we're not gonna hold up the process.

A

Can I ask a favor yeah, I apologize that uh I think I owe you an email, curt.

A

And maybe you as well alex while we're talking about meetings and.

A

Calendars, could we discuss the possibility of.

A

Moving the normal permanent day for this meeting.

A

I think I shared with you that we picked the the.

A

One day a month in the middle of the week that my girlfriend has off.

A

And still it always destroys a chance for us to do something.

A

Yeah we did talk about this at our last meeting. I thought.

C

So it's really not uh it's not it's not the.

C

When's the fact that it's wednesday, it's the fact that this it's this particular.

C

Wednesday, it's literally it's the fact that it's, the third wednesday of the.

A

Month said, my girlfriend works in a dentistry.

A

Office and the third thursday of the month is when they do.

A

Surgery, you work out of the surgery center, and so she has that day off.

A

Yeah one of the things that we looked at, I think at the time.

C

There's a there are two: there are two challenges. One is scheduling, just people.

C

On this in the group, and then there's also a conference scheduling, the latter of which is a moot point right now, so I.

C

I think that was the hold up to moving it to a different.

C

uh Wednesday, uh you know same time and and because that's not an issue.

C

Right now, uh I guess, would anybody object if we move this to.

C

The second wednesday.

B

I would not object, that'd be great, I I don't object contingent on the fact.

A

That my assistant doesn't object, so I hate I hate to make it sound.

A

Bureaucratic but she's she she warned me not to do anything.

A

With my calendar, so so, if you could send out a meeting.

A

Maker or whatever they call those, um I can get you an answer. Real.

A

Quick right, we'll send a note out uh just.

C

Asking people to confirm so it would be the second wednesday of the month. 4 15 uh and um you know again, zoom calls all the.

C

Way through until things change but, um and so like eds staff is okay with.

D

That, because that is also buea right, I mean.

D

You would just be preparing for two you're, fine, it's just too many games or.

D

E

Managed yeah, kate you're on both is that a.

C

Are you or is that too many commission meetings for one day.

D

No, it's okay! For me. Okay,.

A

Very good, all right anything else. No! Thank you for your time. Your patience.

C

And uh we will follow up and larry. You have something.

G

Yeah actually, sorry because this is actually the first meeting of the year, there are some annual matters just to take care of.

G

uh Electing a slate of officers, uh which normally we would do at the top of the.

G

Meeting uh we've had the same slate of officers.

G

I think I think now for a year and a half, uh because.

G

There was no meeting this year, so there does need to be an election of slave.

A

Officers- and I will just note- there also needs to be.

G

uh Conflict of interest forms. I don't believe that those are sent out.

G

At the beginning of the year, we usually do that as a distribution in the first.

G

You know first month when you have the meetings I'll I'll email, those each to.

G

You or jane will one of the two will get together and have those just sent to you. Those are pretty quick, quick and dirty that you can. uh You can fill them out and sign them and get them.

G

Back to us, but uh the only annual thing that we need to take care of at this moment is just an election of officers.

G

uh You can continue the same slate. If that's the motion that you.

G

Prefer, I believe, kurt you're, the president, as I recall,.

G

Malcolm is the vice president. I believe vanessa is the secretary.

G

um No, I am not the secretary. Are you the vice president of vanessa? I'm sorry.

D

G

And malcolm secretary, yes, thank you. Thank you for questioning, so.

A

Vanessa, if you want to switch that's fine, if somebody else wants to.

D

Yeah no, but thank you.

B

Okay, I I move. I, I nominate uh kurt zorn as president.

B

Vanessa mcclary, as uh vice president and malcolm webb, as secretary.

F

B

Wait for that to die for once.

A

So is there any discussion and then, if not according to jeff, we have to do a.

A

Roll call vote, so you know the order, don't don't make me.

A

Go through the alphabet again.

G

Yes, chef. Yes, yes,.

A

All right, I think, we've got you and emily on this.

A

Fantastic, thank you all and you'll send the cop.

A

You said you'll send the conflict of interest. Yes I'll, send you the conflict.

G

Adventure shortly all right. Well, it's always good to ask.

A

If there's any more business because we did have more business, so that's good um anything else. If not it's good, seeing everybody even.

A

If it's not in person, hopefully sometime in the not too.

A

Distant future, we can actually huddle together in that little.

A

Conference room, I didn't didn't- think I'd yearn for those days as.

A

Much as I could you know, the walk down to the city hall, but.

A

Dang, I really do I want to see you guys kind of want to shake your hands or at.

A

Least, bump elbows or the heck we're supposed to do these.

C

Things all right, congrats thanks everyone, two on your on.

C

Your appointment, well thanks. Congratulations! Yeah! Thanks.

A

That's great all right: we uh we stand adjourned.

A

Thanks. Thank you. Thank you. Thank you.

F

F