09-26-11 Common Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 26, 2011 BILL NO. 61-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING THE SUM OF $1,498,700 FROM ECONOMIC DEVELOPMENT INCOME TAX (EDIT) FUND #408 FOR INFRASTRUCTURE INVESTMENT Councilmember Varner, Chairperson, Public Works and Property Vacation, reported that this committee met on this bill and sends it to the full Council with no recommendation. th Mr. Gary Gilot, Director, Public Works, 13 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Gilot advised that Steel Warehouse located at Riverside Boulevard and Angela Street in South Bend, Indiana, has decided, after weighing other options, to expand its facility at its South Bend site. This expansion will retain the existing labor force and will add new positions in south Bend. It is desirable for South Bend to provide infrastructure improvement to accommodate the Steel Warehouse expansion consisting of lining and strengthening an existing 96” CSO trunk sewer pipe (360 feet.) This bill will allow for the appropriation to cover the cost of that infrastructure. Mr. Dave Lerman, 3210 Miami Street, South Bend, Indiana, CEO, Steel Warehouse. Mr. Lerman stated that this is an important area to Steel Warehouse. They have been growing at this location quite a bit. They started doing specialty cutting of steel approximately 12 or 13 years ago, they put into the building on Riverside which was pretty much empty and was previously occupied by Lock Joint Tube. He stated that when they put in their first cutting equipment they had approximately eight or nine employees at that location, today they employ approximately 100 employees. He stated that every piece of equipment that has been put in since then is state of the art equipment, it strengthens the company in many ways in particular most of the customers that they have that they burn the steel for are customers that they are selling steel to, and have asked them to provide this extra service. In many cases, had they not done this, they would have lost that business to someone who would do that. He stated that they have been putting a lot of effort into the success of this project. Recently, over the last year they have added a bunch of equipment and have run out of space there. So, they need this addition to take care the business that their customers are going to give them through this coming year. In fact over the last year, they have added approximately 40 people in this facility to run this special burning equipment. It is all state of the art laser equipment and plasma equipment. Councilmember Dieter stated that they were told that this project wouldn’t be presented st until after the 1 of next year 2012. He questioned why it was being presented now. Mr. Lerman stated that it is good news. Some of the key customers for this equipment are John Deere, Case, these companies are supplying a lot of agricultural equipment and are quite busy and they have pushed them to meet some new higher volume schedules. So they are trying to respond to their customers. Councilmember Dieter stated that he is glad to hear the news, but wanted some clarification on why the project was being presented tonight instead of after the first of the year. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Mr. Tony Trinca, 139 Camden, South Bend, Indiana, stated that he would be in favor of the City moving forward with to help Steel Warehouse, because he is aware as a citizens of this town that they are a big employer and have been in town and spend a lot of money in this town. Mr. Trinca stated for that reason he is in favor of helping them out in anyway that they can. 8