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

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Page 2 Council Member Karl King asked if the buy-out of the Chicago plant and relocation to South Bend had utilized those employees here, and again it was stated that those employees had been offered positions at the South Bend facility, but did not accept,therefore, new people were hired to fill the vacant positions. Council Member Charlotte Pfeifer asked why Schafer Gear Works had made the 2002 projections if their customer base decline began in 2000. Stan Blenke replied that the customer base was slow,however,they were confident it would recover,and they were not alone in experiencing a slow down. Schafer Gear Works was forced to offer customers increased capacity to enable the customers to use their plant for"different ventures." Council Member Pfeifer also asked Blenke if he could tell Council Members how many of his employees reside in St. Joseph County. Stan's reply was that he felt that the majority of Schafer's employees do reside in St.Joseph County. Pfeifer would like to have a list of where their employees live. Honeywell International representative,Roberta Baxter, presented Honeywells reasons for not attaining their projections as stated on their CF-1 form. They are basically airline industry providers. The September 11,2001 attack on the U.S., devastating the airline industries,the war in Iraq,SAARs outbreak globally,and a very slow economy,has hit many industries as well as their own, and a time frame for"recovery"is still uncertain. Honeywell has been hit hard. Council Member David Vamer asked if the investments they requested tax abatement on is now in place. Ms. Baxter stated that they are; $8 million plus in 2001, $20 million plus in 2002, and another$21 million plus yet in 2003. Council Member Karl King asked if Honeywell's "research and technology" was moving ahead,and Ms. Baxter stated that it was. Council Member Charlotte Pfeifer asked where Honeywell's employees live, and if they reside in St. Joseph County. Ms. Baxter said that they will get back to the Council with that information. Council Member Karl King thanked both companies and their representatives for informing the Council, and that the Council will.get back to them soon. Discussion by Council Members ensued: Council Member White stated that the Council will need a report from Mike Beitzinger stating that recipients of tax abatement are either"in or out"of compliance,and why. Council Member King said that the Council must be kept informed. A review of each abatement will need to be based on State law, making judgements on circumstances for non attainment. The Council has"discretionary privilege"to decide whether to accept or reject reasons for non attainment. Council Member Varner stated that unfortunately, Schafer Gear Works buy-out, and closing of the Chicago Company,helped keep Schafer going. Council Member Pfeifer asked, "how do we know that the companies are living up to their projections or not?" Mike Beitzinger replied that his department"keeps tabs"on the companies, but stated that "how do we know what they say is fact? We have the right to inspect records if misrepresentation is apparent,and we can make them accountable." Chairman King thanked everyone and adjourned the Committee of the Whole at 4:00 p.m. Respectfully submitted, Loretta J.Duda,City Clerk