04/23/07 Community and Economic Development Committee Minutes (2)

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Community and Economic Development Committee April 23, 2007 Page 2 Substitute Bill Na D7-69: Seven [7] Year Real Property_Ta_x_Abatement Request for Stanz Food Service, I_nc: Council Member Dieter called for a report from the Community & Economic Development Department on Substitute Bill No. 07-61. Bob Mathis of the Community and Economic Development Department reviewed the written report dated April 10, 2007 (copy attached). He noted that the petitioner, Stanz Food Service, is a full-line, food service distribution business with customers throughout northern Indiana and southern Michigan. They use warehouse facilities and distribution facilities which require the storage of dry, refrigerated and frozen foods. Mr. Mathis noted that the confirmatory resolution would be held until the contract information is in place, adding that there was a miscalculation done on the original petition necessitating the substitute bill He Hated that the petitioner meets all of the requirements for a seven (7) year real property tax abatement under Section 2-53.1 of the Soufh Bend Municipal Code. Richard Deahl, an attorney with Barnes and Thornberg, with offices in downtown South Bend made the formal presentation. He noted that two years ago they came before the Council seeking a tax abatement far ten (10) years which was granted. Due to the cost of the development which was double their projections, the current proposal is approximately half of that originally proposed. They would also be acquiring the property adjacent to it. Once contractors are in place, the points which be reassessed and they would be coming back to the Council for review and discussion. In response to questions from Citizen Member Wolfson, Mr. Deah! noted that they have supported many non-profits throughout the community, however the Palais Royale may be a mis-statement. They have contributed in kind also to the South Bend Fire Department and the South Bend Police Department, and to many other organizations. He offered to present a complete listing to the Council at a later time, however they would prefer not to list the actual monetary amounts. With regard to "preferred hiring preference", Mr. Deahl stated that they review census tract information by population and income level and if qualified candidates are found, they are given preference over others. Mark Harman, President of Stanz Cheese Company, Inc., doing business as Stanz Foodservice, Inc. with offices at 1840 North Commerce Drive, South Bend, Indiana 46628, added that the areas where they receive the most turn-over in employment are in sales and in night operations. Council Member Pfeifer requested data on the gender and racial composition also. Mayor Luecke spoke in favor of Substi#ute Bill No. 07-61, noting that Stanz has been a great corporate citizen. The Mayor stated that he believes that the new plan is even