08-25-03 Committee of the Whole - Laserfiche WebLink

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COMMITTEE OF THE WHOLE Monday,August 25,2003 Subject: Compliance with Statement of Benefits Form CF-1 3:30-3:45 p.m.-JTG Development,Inc. 3:45-4:00 p.m.-Lock Joint Tube,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-Patti O'Brien,JTG Development,Inc. Representatives-Tim Hernly and Mr. Strzelecki,Lock Joint Tube,Inc. 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 JTG Development, Inc and Lock Joint Tube,Inc.are not presently in compliance. JTG Development,Inc. representative Patti O'Brien, stated that, "the business has been holding its own,the economy is much different today then it was in 1999 when they applied and received tax abatement. Their employee status was 94 at that time,and is now at 51,and have hired 11 new employees. Ms. O'Brien stated that the company has actually gone over budget in building its new building; $766,000 instead of$600,00 that they had planned. With the slow down in the economy,JTG experienced a 50%drop in sales from 1999 thru 2002. 2003 has seen an incline in sales, with projections looking much better. Labor and materials costs have risen as well. The company had to make"survival decisions"in order to stay viable. Next year JTG will be on the tax rolls in full, staff is at full time now. JTG appreciates the assistance that the abatement has given, and feel that the slow economy was beyond their control. JTG is confident that the outlook is much better not only for their company,but for those they do business with. Council President, Karen White asked what % JTG projects for next year in sales and staffing. Ms. O'Brien stated that they should see a 10%or better increase with staffing at 65 now, and an additional 10 to 15 more to be hired before the end of the year;they are union employees.