Northeast Neighborhood Development Area Housing Program Plan Presentation

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Northeast Neighborhood Development Area Housing
Program Plan Presentation

• Robinson Community Learning Center
• May 30, 2007

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Meeting Agenda

• Introduction
• Purpose of Meeting
• Definitions
• History of Development Area
• Proposed Housing Program Plan
• Next Steps
• Questions

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Introductions

• Bill Schalliol, South Bend Dept. of CED
• Don Inks, South Bend Dept. of CED
• Phil Byrd, South Bend Heritage Foundation
• Greg Hakanen, University of Notre Dame
• David Compton and Ashley Ottesen, Kite Realty
  Group
• Other community representatives

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Purpose of Meeting

• To discuss and get input related to the
  development and designation of a Housing Program
  within the Northeast Neighborhood Development
  Area
• To discuss procedures and the process to enable
  redevelopment in the Northeast Neighborhood Area
  versus talking about the projects that are
  enabled by the procedures and processes

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Definitions

• Redevelopment Area
• Tax Increment Finance (TIF) Allocation Area
• Housing Program

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Redevelopment Area

• Redevelopment Area is an area that has been
  designated by the Redevelopment Commission, the
  Area Plan Commission and the Common Council for
  the purpose of removing blighting factors and
  creating new growth opportunities
• IC 36-7-14-15

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Tax Increment Finance (TIF) Allocation Area

• Tax Increment Finance (TIF) Allocation Area is an
  area within a development area in which tax
  increment is collected and used for a variety of
  purposes
• Tax increment generated from new or improved
  commercial, industrial, and some formats of
  multifamily development is eligible for collection

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Housing Program

• Housing Program is an allocation area format that
  allows for the collection of new and improved
  single and low density residential increment in
  addition to tax increment generated from new or
  improved commercial, industrial, and multifamily
  development
• IC 36-7-14-46

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History of Development Area

• Northeast Neighborhood Development Area (NNDA) is
  a 620 acre redevelopment area located in the
  northeast quadrant of the City of South Bend
• The NNDA was designated in 2003
• Creation of a Development Area Plan
• The boundaries of the NNDA have been expanded
  twice and contracted once
• Designated with one TIF Allocation Area

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Proposed Housing Program Plan

• Enabled by IC 36-7-14-46
• Proposing to designate the Northeast Neighborhood
  Development Area Housing Program Area or
  Allocation Area 2
• As part of designation process, a Housing Program
  Plan must be created and adopted
• The plan must detail goals and objectives of the
  proposed planning area and illustrate statutory
  compliance

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Allocation Area 2
Allocation Area 1
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Eddy Street Commons
Phase 2
The Triangle
Five Points
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Goal and Objectives

• Eliminate blighting, deteriorated and
  deteriorating areas
• Eliminate blighting, deteriorated and
  deteriorating influences
• Maximize new and existing opportunities for the
  development of affordable housing
• To benefit the public health and welfare by
  protecting the economic value of surrounding
  properties
• To overcome existing barriers to development by
  creating opportunities to fund the construction
  of basic public improvements
• Create new job opportunities for the project area

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Goal and Objectives (2)

• Encourage and stimulate economic development in
  the project area
• Phase out incompatible structures and land uses
• Redevelopment of parcels to be in accordance with
  the Northeast Neighborhood Development Area
  Development Plan
• Encourage residential, commercial, and retail
  redevelopment
• Support and stimulate further growth of
  residential, commercial, retail uses consistent
  with the Development Plan Amendment
• All other goals and objectives previously noted
  in the Development Plan for the Northeast
  Neighborhood Development Area

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Statutory Compliance

• (1) Not more than twenty-five (25) acres of the
  area included in the Allocation Area has been
  annexed during the preceding five (5) years.
• A total of 11 acres of the total 58 acre area in
  Allocation Area 2 has been annexed into the City
  of South Bend in the past five (5) years
• (2) No area within the allocation area has been
  annexed within the preceding five (5) years over
  a remonstrance of a majority of the owners of
  land within the annexed area.
• No area in Allocation Area 2 has been annexed
  within the preceding five (5) years over a
  remonstrance of a majority of the owners of land
  within the annexed area.

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Statutory Compliance (2)

• (3) The program cannot be accomplished by
  regulatory processes or by the ordinary operation
  of private enterprise because of
• (A) the lack of public improvements
• While the area, in which the Housing Program will
  be located, is served by public roadways and
  utilities, the general conditions of the
  infrastructure are not at a general level
  considered as acceptable within the City of South
  Bend.
• (B) the existence of improvements or conditions
  that lower the value of the land below that of
  nearby land or
• There are a variety of blighting factors within
  and adjacent to this area, in which the Housing
  Program will be located, that have and are still
  causing the decline of this redevelopment area.

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Statutory Compliance (3)

• (C) other similar conditions.
• In addition to the variety of physically
  blighting factors in this area, in which the
  Housing Program will be located, the area is
  replete with a variety of similar blighting
  social and economic factors that continue to
  decline this area.

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Statutory Compliance (4)

• (4) The public health and welfare will be
  benefited by accomplishment of the program.
• The focused attention of this Housing Program
  with the expected residential and commercial
  development will eliminate the blighting
  influences in this area and serve as a momentum
  factor in improving adjacent areas.

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Statutory Compliance (5)

• (5) The accomplishment of the program will be of
  public utility and benefit as measured by
• (A) the provision of adequate housing for low and
  moderate income persons
• The Triangle Residential Project is proposed to
  be a multi-economic and diverse housing program
  area that will create new housing opportunities
  for low and moderate income persons.

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Statutory Compliance (6)

• (B) an increase in the property tax base or
• The proposed residential and commercial
  development will be of substantial increase
  compared to the existing property tax base. But
  for the increased property tax revenue projected
  to be generated from both the residential and
  commercial developments, redevelopment of this
  area would be an economic impossibility.
• (C) other similar public benefits.
• The creation of the Eddy Street Commons
  commercial area will serve as not only a
  neighborhood focal point as well as a retail
  destination location. The residential aspects of
  this entire project will serve as a tremendous
  opportunity to improve the housing stock of the
  City of South Bend for a variety of income
  levels.

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Statutory Compliance (7)

• (6) At least one-third (1/3) of the parcels in
  the allocation area established by the program
  are vacant.
• Of the 171 parcels in Allocation Area 2, 81
  (47.4) are presently vacant.
• (7) At least seventy-five percent (75) of the
  allocation area is used for residential purposes
  or is planned to be used for residential
  purposes.
• At least seventy-five percent (75) of Allocation
  Area 2 is used for residential purposes or is
  planned to be used for residential purposes.

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Statutory Compliance (8)

• (8) At least one-third (1/3) of the residential
  units in the allocation area were constructed
  before 1941.
• Of the 75 residential units in Allocation Area
  2, 40 (53.3) were constructed before 1941.

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Statutory Compliance (9)

• (9) At least one-third (1/3) of the parcels in
  the allocation area have at least one (1) of the
  following characteristics
• Of the 171 parcels in Allocation Area 2, 82
  parcels or 48 of the parcels have at least one
  (1) of the following characteristics
• (A) The dwelling unit on the parcel is not
  permanently occupied.
• 38 parcels have a dwelling unit that is not
  permanently occupied.

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Statutory Compliance (10)

• (B) The parcel is the subject of a governmental
  order, issued under a statute or an ordinance,
  requiring the correction of a housing code
  violation or unsafe building condition.
• 63 parcels are the subject of a governmental
  order, issued under a statute or an ordinance,
  requiring the correction of a housing code
  violation or unsafe building condition.
• (C) Two (2) or more property tax payments on the
  parcel are delinquent.
• 7 parcels are two (2) or more property tax
  payments delinquent.
• (D) The parcel is owned by local, state, or
  federal government.
• 9 parcels are owned by local, state, or federal
  government.

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Statutory Compliance (11)

• (10) The total area within the county or
  municipality that is included in any allocation
  area established for a housing program under
  section 45 of this chapter does not exceed one
  hundred fifty (150) acres.
• The total area of Allocation Area 2 is 58 acres.

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Next Steps

• Revisions based upon review and input
• Redevelopment Commission will be asked to approve
  a Declaratory Resolution on June 8th
• Area Plan Commission will be asked to approve a
  Declaratory Resolution on June 19th
• Common Council will be asked to approve a
  Declaratory Resolution on June 25th
• Redevelopment Commission will be asked to approve
  a Confirming Resolution on July 6th

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Questions

• Questions related to Housing Program
• Follow-up Information
• Bill Schalliol
• City of South Bend
• Dept. of CED
• Direct 574-235-5842
• E-mail bschalli_at_southbendin.gov
• http//www.southbendin.gov/business/economic_devel
  opment/land_development__assistance.asp