01-09-12 Community & Economic Development

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COMMUNITY AND ECONOMIC DEVELOPMENT 01 -09 -12 Committee Members Present: Henry Davis; Karen White; Gavin Ferlic; Dr. Fred Ferlic Other Council Members Present: Tim Scott; Oliver Davis; David Varner; Derek Dieter; Valerie Schey Others Present: Mayor Pete; Dick Nussbaum; Leslie Kleppe; Andrew Nemeth; Terry Miller; Catherine Andres; Thomas Butler; James Lee; Kathy Cekanski - Farrand; Rita Kopala; Mike Schmuhl; Kevin Allen; Henry Davis, Sr., Satish Gabahawala Agenda: Bill No. 12 -01 Tax Abatement Steel Warehouse Bill No. 81 -11 Appropriate Chase Tower Newly appointed Chairperson of the Community and Economic Development Committee, Henry Davis, Jr., called his full committee to task at 4:37 p.m. The first item on the agenda Bill No. 12 -01 was a request for a 5 year personal property tax abatement for equipment to be purchased by Steel Warehouse operating at 1400 West Riverside Drive in the former Lock Joint Tube Plant. Don Inks provided the eligibility for abatement analysis prepared by the Redevelopment staff. The report was very positive. While just over $150,000 in taxes would be abated over the 5 year period over $146,000 new tax dollars would be generated. Additionally, 10 new jobs would be created and 20 retained. Chairperson Henry Davis, Jr., asked the petitioner Jerry Lerman to state his case. Mr. Lerman gave a short description of the machinery's manufacturing application. He stated too that Steel Warehouse had applied for numerous abatements in the past and had always met or exceeded employment projections. There was no one, save Inks, to speak in favor or against. On a motion to send favorably by Councilmember Gavin Ferlic, seconded by Councilmember White and affirmed by all the bill was sent to Council. The second item on Mr. Davis' CED Agenda was a request to appropriate money to assist with the rehabilitation of the Chase Tower. This controversial issue proved to be contentious from the outset. To capture the essence of what was at stake please refer to three attachments. One from Dick Nussbaum, an attorney hired by the City to negotiate a development agreement for the Chase project. A second from Henry Davis entitled Chase Tower Fact Sheet outlining what was at stake. The third is a letter from the Mayor requesting continuance until February 27, 2012. Chairperson Henry Davis, Jr., opening the hearing outlining the "rules of engagement" allowing each would have an opportunity to state their case. Mayor Buttigieg was recognized first. He promptly asked for a continuance until February 27, 2012. Chairperson Henry Davis was intent on pushing forward with a public hearing.