08-11-03 Committee of the Whole - Laserfiche WebLink

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r COMMITTEE OF THE WHOLE Monday,August 11,2003 Subject: Compliance with Statement of Benefits Form CF-1 3:30-3:45 p.m. -JRS Enterprises(AAA Tool&Die) 3:45-4:00 p.m.-Masterbilt,Inc. Members in Attendance: Karl King-Chairperson James Aranowski Charlotte Pfeifer Roland Kelly David Varner Ervin Kuspa Karen White Al Kirsits Sean Coleman Kathleen Cekanski-Farrand-Council Attorney Others in Attendance: Terry Bland- South Bend Tribune Michael Beitzinger-Economic Development Representatives-JRS Enterprises(AAA Tool&Die)-John Shirrell Representatives-Masterbilt, Inc.-Robert Michalek,and Mike Wojtysiak 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 JRS Enterprises(AAA Tool&Die) and Masterbilt,Inc. are not presently in compliance. JRS Enterprises representative John Shirrell,stated that,"the business has been sold,and a shift in equipment and employees, in part; Mr. Shirrell keeping the(abated)equipment, and the new owner purchasing new equipment and utilizing the employees. The slow down in the economy has had an effect on businesses everywhere, and some of the work has gone to China. The investment in equipment was made to upgrade and ready the plant for business.There are two less employees at this time. The plant is still using the machinery." Council member Pfeifer asked Mr. Shirrell if he knew all the details of the projections made at the time of the granted abatement,and at what point did it appear that the goals could not be met? Mr. Shirrell stated, "that even though some of the business has been sold, he still believes that business will increase,and the employment goal will increase as well,because they are one of the last two such companies left in the area." Council Attorney Farrand stated that there should be two separate ID numbers for the now separate companies. Council member King stated, "that the Council as a whole will evaluate the new information, and will let Mr. Shirrell know what the next step will be in the process."