02-28-83 Human Resources & Economic Development

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CammtUn fond tZlo Ile Qlrnnuwn elounri! of IIir d uIg of fnndlp Srnb HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The February 28, 1983 meeting of the Human Resources and Economic Development Committee was called to order at 5 :30 p.m. in the Council informal meeting room, by its Chairman Councilman Robert Taylor. • Persons in attendance included Councilmen Harris, McGann, Taylor, Szymkowiak, Beck, and Crone; Jon Hunt, Colleen Rosenfeld, Richard Muessel, Eugenia Schwartz, and Kathleen Cekanski-Farrand. Councilman Taylor noted that the purpose of the meeting was to discuss Bill No. 14-83, Resolution No. 9-B and Resolution No. 9-C. Colleen Rosenfeld then passed out a substitute version of Bill No. 14-83 which would transfer $22,503 among various accounts within the division of community development. The dollar amounts would remain the same within . the Bill. Following discussion by the Committee, Councilman Beck made a motion seconded by Councilman Harris that substitute Bill No. 14-83 be recommended favorably to Council. The motion passed unanimously. Mrs. Rosenfeld then reviewed Resolution 9-C which would authorize the Mayor to submit to the Department of Housing and Urban Development an application for 1983 Community Development Block Grant Funds. Mrs. Rosenfeld gave. a brief summary of the activities and the reduction which is anticipated. Councilman Taylor noted that the Council has had several meetings regarding proposed activities and has reviewed the many memorandums sent to the Committee. Following discussion Councilman Harris made a motion seconded by Councilman Beck that Resolution 9-C be recommended favorably to Council. The motion passed unanimously. Resolution 9-B was then discussed. This is a declaratory resolution designating 3511 Gagnon to be an urban. development area for purposes of real property tax abatement. It was noted that on February 25 , 1983 the Redevelopment Commission approved the petitionfor tax abatement. The' petitioner is Kawneer Company of Niles, Michigan the owner of South Bend Screw. Mr. Ken Knootz, the local manager explained that they are moving to Phase IV of the Airport Industrial Park due to the development of the East Race area. By this move they would be- retaining 20 hourly personnel and 5 salaried jobs. Without abatement the project would be $197;.105 , and with abatement $99,537, with the total amount to be abated of $97,568. The average annual cost would be $9,757. Following several questions by Councilman Szymkowiak, Councilman Beck made a motion seconded by Councilman Harris that Resolution 9-B be recommended favorably to Council. The motion passed unanimously. Councilman Taylor then called upon Richard Muessel who indicated that at 4 :45 p.m. he received a telephone call from Mr. Andrew Laveene of Kalamazoo, Michigan. He is the owner of Ihnmans and several other hotel/motel chains. Mr. Muessel noted that Mr. Laveene had expressed interest last year in developing the Quality Inn as a hotel and spent a considerable period of time reviewing its plans and looking through its structure. He gave further background and summarized that his financial assistance would be here tomorrow to review the Quality Inn prospect. His second potential purchaser, Mr. John Walz has decided not to pursue the project. The Committee members had several questions and invited Mr. Muessel to update the entire Council at the regular council meeting. rate racer a0611r •U• S•MIM4 CO.