01-05-81 Human Resources & Economic Development Committee

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Z .J 16 flznmmittn arpor# On the !lmmnwn QIounril of the gang of Onutti rnd: Your Committee HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The January 5, 1981 meeting of the Human Resources and Economic Develop- ment Committee was called to order at 4 :30 p.m. in the Informal Meeting Room by its Chairman, Councilman John Voorde. Persons in attendance included: Councilmen: Serge, Beck, Crone, Voorde, Taylor, and McGann; Citizen members : Marc Bramer and Chris Davey; Kevin Horton; Steve Queior of the Chamber of Commerce; Pat Mahon; and Kathleen Cekanski-Farrand, Council Attorney. Chairman Voorde announced that the purpose of the meeting was to discuss the tax abatement procedures presently being followed by the City pursuant to Ordinance No. 6763-80; and whether any changes or amendments should be pursued. Pat McMahon of the Redevelopment Department then was called upon for comment. Mr. McMahon explained that the City Administration' s position on tax abatement was that it should be a tool for development in distressed areas for anyone who wishes to locate in such distressed areas. He saw it as an incentive for people to move into an area in order to make it "healthy again" . Mr. McMahon then reviewed a handout which developed this theory further. It suggested: (1) Establishment of Primary Urban Development Areas (a) Downtown, East Bank, Monroe/Sample, Ethanol site, and Stude- baker Corridor. (b) Each would have tax abatement for five (5) years, with review by the Council after that period. (2) Other Urban Development Areas (a) Same basic criteria now found in the present ordinance except that a minimum of 10 acres of 5 contiguous lineal blocks would be required, or proof by the petitioner establishing that development would not take place without abatement, and a filing fee of $50. 00 (3) Participants in Future Tax Increment Areas Prohibited From Filing For Taxy:Abatement The handout prompted considerable discussion by the Committee. Council- man McGann stated that the Council has reviewed the designation of certain geographic areas previously, and that he was against it then and now. He was against the concept of signing a "blank check" . Councilman Szymkowiak questioned whether business like Kreamo Bakers, Inc. would qualify under the proposal, and was told it would not unless it met the second set of criteria. He then pointed out several other areas in the 2nd District, as well as the City at large which should qualify for tax abatement. FREE PRESS .,See PUBLISHING CO.