RM 04-08-83 - Laserfiche WebLink

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South Bend Revelopment Commission Regular Meet ng - April 8, 1983 6. NEW BUSIIMS (Cont.) i. Continued... it w�uld be debatable whether or not it fits the riteria for tax abatement. Mr. tiasecki questioned why Whiteford waited unti the last moment to find a new location. Mr. Kusnierek answered that back in 1979 they had im original plan and they went for an in- dustrial revenue bond and had the financing in place. They had"cbntracts from two banks to carry the revenue bond and all of a sudden the -oof went off the interest market and one national bank and one local bank pulled the financing out of the project. Now they look at t1ie price of revenue bonds, and they find that revenue bond financing is no longer a viable alternative. It's true we owned the property, but they came from a 71% mortgage and they are looking at 132% mortgage. They are ooking at the fact that they have not been able to raise prices for the last two year in the transportation industry, prices are n fact not only being held but they:are being slas ed. If we want a viable business, they have to look under every corner, internally and ext ally, to cover themselves. Ms. uburn asked if Whiteford is going to build on that land without the tax abatement. Mr. usnierek said that would need to be re- cons'dered. He could not say yes or no. Their prof ctions were based on the factor that would incltide tax abatement. Ms. Auburn asked how the tax rate on that Western Aven e property compares with what they are cur- rent y paying for taxes. Mr. usnierek stated the current taxes are about half of the new taxes. Upon a motion made by Ms. Auburn, seconded by Mr. Diasecki and carried, the report was sent to tie Common Council without recommendation. Mr. Robinson and Mr. Donaldson voted against the i notion. -10- MOTION WAS MADE: TO REFER A TAX ABATEMENT FOR 4600 WESTERN AVENUE TO THE COM- MON COUNCIL WITHOUT RECOM- MENDATION