06-27-05 Community & Economic Development

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� L Community and Economic Development which she then asked Mr. Schaffer to briefly summarize. Tedd Schaffer, an Economic Development Specialist, first reviewed his report dated June 17, 2005 (copy attached) addressing "Real and Personal Tax Abatement Designation Increase for Steel Warehouse Co., Inc." He noted that the Council adopted Resolution No. 3381-04 on September 27, 2004 for a real property abatement addressing a 25,000 square foot addition to their operations at 2722 West Tucker Drive which would expire on September 13, 2006. he then summarized his June 17, 2005 report (copy attached) addressing the personal property tax abatement originally adopted on September 27,2004 (Resolution No. 3380-04) which addressed new equipment ranging from $638,000 to $$1,300,000 for their operation located at 2722 West Tucker Drive. The last report summarized was also dated June 17, 2005 and referenced the 5-year personal property tax abatement approved by the Council on September 27, 2004 (Resolution No. 3382-04) for the acquisition and installation of new machinery costing between $935,000 to $2,000,000. Timothy D. Hernly,an attorney with offices at 600 1st Source Building in downtown South Bend noted that he has filed three (3) amended Statement of Benefits forms along with the Substitute Reconfirming Resolution in light of the new investment by his client. Gerald F. Lerman of Steel Warehouse stated that if the resolution is adopted that their company will be able to purchase a new laser which will have one (1) new operator per shift; new plasma equipment which will have three (3) new operators per shift plus administrative personnel. As of 12-31-04 at the Riverside operation, they have gone from 11 employees to 34. Mr. Lerman stated that he believes this trend will continue since there are opportunities in this particular area. The Council Attorney noted that meetings were held prior to today's meeting with Don Inks, Tedd Schaffer,Janice Talboom, Council Member Pnz7ello and herself. In response to a question from Council Member White, the Council Attorney state that she also had numerous discussions with Mr. Hernly and that the substitute bill is the result of all of those discussions. Council Member Rouse thanked Mr. Lerman for his outstanding verbal report, and that this company is state of the art. However he noted that he does not have copies of signed SB-1's. The Council Attorney suggested that Mr. Hernly double check with the Office of the City Clerk to make sure that there are three(3) signed SB-1's on file before tonight's 7 p.m. meeting. Citizen Member inquired what the base pay would be for new employees. Mr. Lerman stated that each person's base pay would be $27,000, with the opportunity to earn gain share which could add up to 40%to their pay plus benefits. Dr. Varner stated that Mr. Lerman and his company are a great example of knowing when to purchase new equipment and keep it running to the max for the greatest amount of efficiency. June 27,2005 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 2-