The focus of the meeting concerned two pieces of legislation — ordinance 15-01 and resolution 15-01 — that, if passed, would grant special tax designations to Big O Properties.
Resolution 15-01 would designate Big O Properties an Economic Development Revitalization Area and grant the real estate company tax abatement, or delay on property taxes that are due to the city.
Big O is asking for the tax abatement because of changes in their original plans that would increase the worth of their property on 338. South Walnut St., which would lead to an increase in their property taxes.
In addition, the resolution also is proposing EDRA.
Indiana law allows for ?cities and other municipalities to designate places as EDRA for the purpose of encouraging development in less-than-desired locations.
Asked to attend the city council meeting for discussion of the pieces of legislation concerning Big O Properties was Danise Alano-Martin, director of economic development, and Jason Carnes, assistant director of small business relations.
Alano-Martin and Carnes both recommended the city council pass the resolution and ordinance.
“The previous project by Big O Properties and this project will create additional density in this area that would support additional retail in this area and create more activity to support the existing businesses that are there and news businesses that will be there,” Alano-Martin said.
Big O also owns the building next to their proposed project, which Alano-Martin was referring to, at 340 S. Walnut St.
Councilman Marty Spechler said he does not support proposed abatement for Big O Properties. Fearful of establishing a precedent, he encouraged the council to vote now on the proposed legislation.
Others on the council said they support the proposal, including members Dorothy Granger, Susan Sandberg and Chris Sturbaum.
In addition, Big O is seeking its 338 S. Walnut St. location to be designated an Economic Development Target Area through ordinance 15-01.
Big O was founded in 1985 as a property management company. Mary Friedman is the principal owner of Big O. Friedman, who spoke up at the meeting, said the abatement would help her company work to do more services for future tenants.
The property in question is already located in Bloomington’s Tax Increment ?Financing district.
As of now, Big O tax obligation is $4,000 to the city, but after their plans to build a three-story mixed use building are completed, their taxes are set to rise to $40,470.
In addition to Big O’s petition to the city council, two bond ordinances — 15-02 and 15-03 — were on the docket at the meeting.
The Indiana Bond Bank is an entity that helps finance operations for cities and towns at a low cost.
The ordinances both concerning the city refinancing bond with the Indiana Bond Bank one sewage, the other concerning waterworks.
Brad Bingham, lawyer for the bond bank, said although the ordinances are separate, they’re similar.
If passed, the ordinances are predicted to save the city an estimated $520,000 on sewage works and $368,000 on waterworks.
