09-23-19 Community Investment - Laserfiche WebLink

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•CITYOFSOUTHBEND OFFICE OF THE CLERK Mr. Joseph Shabazz, 208 Rue Flambeau, South Bend, IN stated, We keep looking at these tax abatement applications, and we see where people are getting eighty-one (81) points for donating to a museum. That's almost triple of what you would get if you did targeted hiring, concentrating on minorities. For the past three (3) decades we have complained about how this is skewed for developers like yourself to go around us and use whoever you want. It's kind of tiresome, it's kind of tired. Committeemember John Voorde stated, The City has done a lot of work lately on identifying qualified contractors. Minority men and women, so you might want to make sure that you're contacting all of the potential contractors. Committee Chair Gavin Ferlic stated, I should note that Committeemember Sharon McBride has joined us,but we still do not have a quorum. So, all bills will go forward, but we cannot provide a recommendation at this time. Bill No. 19-59- Designating Real Property Tax Abatement for R. Ray Real Estate, LLC Dan Buckenmeyer, Director of Business Development for the City of South Bend Community Investment Department, with offices on the 14th floor of the County-City building stated, I'll note that I didn't highlight this in my last slide, but this is a vacant parcel. This next one (1) is on a vacant parcel. The previous one (1) was paying minimal taxes because it was vacant because it's just grass. This one is paying zero (0). So, we will be selling and then activating into the tax rolls what was formerly just a blank property. This one is exciting. It's a company that's been in South Bend for over sixty(60) years. So, second(2nd) and third(3rd) generation. In any event, it's going to combine a business that they've had down on Walnut and Western for a while, along with some others that have been purchased in the last year or so into a new forty-thousand ($40,000) square foot Light Industrial building at the corner of Indian and Kimbell, and what we call Ignition Park South if you will. It's located on the south side of the tracks. At least a 2-million-dollar private investment. Thirty-two (32) new and retained jobs there, but we know that Rob and his company is experiencing significant growth, and we're confident that there will be more. I know he did reach out to you to provide more detail. In a high level, the taxes that will be phased in or will be discounted is about two-hundred sixty thousand ($260,000) or two-hundred sixty-one thousand ($261,000), but he will be paying one hundred-twenty-three thousand ($123,000) as those taxes phase in over the eight (8) year real property tax abatement. I think that sums up the high level, and I'll let Rob jump in and share some more details on Masterbuilt. Rob Mahalik,President of Masterbuilt,325 South Walnut Street, South Bend, IN stated, So,we've been on Walnut Street for about going on sixty (60) years. I've been here for some equipment abatements,but last year we experienced some significant growth. I purchased the shares from my father's portion of the business. So, he had purchased it with a partner from someone else's father and that's why it changed families. Then,towards the end of last year, Precision Piece Parts was a long-standing business in Mishawaka. I met the owner, and he didn't have a succession plan. I acquired the assets of that business at the end of last year. One (1) in Mishawaka, and then the Walnut Street site. So, I need a plan to come together. The first time Dan and I spoke about this to keep us on the near west side. I have employees who bike to work from the west side. So,it would EXCELLENCE ACCOUNTABILITY INNOVATION j INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235 9173 TfD574.235.5567 w w.southbendin.gov 8