07-28-03 Committee of the Whole - Laserfiche WebLink

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COMMITTEE OF THE WHOLE Monday,July 28,2003 Subject: Compliance with Statement of Benefits Form CF-1 Schafer Gear Works,Inc. Honeywell International Members in Attendance: Karl King-Chairperson James Aranowski Charlotte Pfeifer Roland Kelly David Varner Ervin Kuspa Karen White Al Kirsits Kathleen Cekanski-Farrand-Council Attorney Others in Attendance: Terry Bland-South Bend Tribune Michael Beitzinger-Economic Development Representatives- Schafer Gear Works,Inc. Representatives-Honeywell International Committee of the Whole Chairperson,Karl King welcomed all in attendance and called the meeting to order at 3:30 p.m.. Council Member King stated the purpose of the meeting by saying that the meeting is an"informal information gathering session," to review the progress of the two companies in comparison to the CF-1 Tax Abatement Forms information that existed at the time of the awarded abatements, and the status of those statements today, and to determine what level of non-compliance they are experiencing according to the guidelines set forth by the State of Indiana, and the review and determination of the Common Council. "The Council will not take any action today." Opening statements by Michael Beitzinger,Economic Development,reported that according to state guidelines and CF-1 statements,it appears that both Schafer Gear Works and Honeywell International are not presently in compliance. Schafer Gear Works,Inc. representative Stan Blenke, stated that their base business has not been what had been anticipated,customers have been seeking products produced out of country, and the events nationally and globally has had an effect on businesses everywhere. The 3 million plus invested in equipment was made to upgrade and ready the plant for business promised. That has not yet materialized, therefore the equipment is now idle, but ready. Schafer Gear Works anticipate that the project will still happen, but the events that have happened was beyond their control. Stan Blenke further stated that they closed the Elkhart facility and moved it to South Bend. They also closed their facility in Chicago and like wise moved it to South Bend. Employees were offered employment here but declined. Some hiring was done locally. Their staffing is up,but not as projected. • Council President Karen White asked Mike Beitzinger about the"reporting status"under state regulations,and if it was possible to get information sooner on abatement recipients that appear to experience problems in meeting projections as stated on the CF-1 forms. Also,Council Member White asked Stan Blenke what their employment status is at this point, and he stated that in 2002 they were at 80,now 87 people are employed with Schafer Gear Works.