04-11-83 Human Resources & Economic Development

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Page 2. Human Resources and Economic Development Committee The Commission further questioned whether the project would go forward without tax abatement. Councilman Taylor noted that the company, namely Whiteford Kenworth, Inc. was being involuntarily relocated' in light of the Olive-Sample overpass. Attorney Warren McGill explained that the project :without tax abatement would total ,$354 ,,;790, and with tax abatement would total $179,169, with the total amount abated being $175,621. The average annual cost of abatement would be $17,562. He noted that this company, employs 250 employees and that 50 jobs would be directly related to this project. A fact sheet was then handed out (copy attached) . Mr. McGill stressed that their first choice was to remain in -South Bend and that additional construction jobs would be created. A total of 3 new jobs and a savings of 50 jobs would be the result if tax abatement, was granted- representatives of Whitefore .Kenworth, Inc. were then introduced to the Committee. Attorney John Gorley spoke in opposition to the tax abatement. He noted that they were properly compensated when the land was taken by the County. He gave the analogy to the Economic Development Bonds which were misused. Councilman Taylor stated that he was "bullish" on tax abatement when jobs are at stake. Councilman Voorde stated 'that, each petition for tax abatement consideration must be weighed on its own merits. He then quoted from a March 12, 1981 South Bend Tribune article where the Mayor views tax abatement more conservatively. Councilman Voorde called for an open meeting of the Council and Redevelopment to discuss the underlying policies and procedures regarding tax abatement for real and personal property. Upon questioning it was noted that a Goshen contractor would be involved inconstruction and that local concrete people and blacktop people would be used. Councilman Serge stated that he was in favor of the tax abatement. Councilman Taylor stated that the Council should "walk the extra mile" since they were "kicked out of their location by local people" . Following further discussion Councilman Beck made a motion seconded by Councilman Serge that Re solution 9E be recommended favorably to. Council. The motion .passed unanimously. Councilman Taylor then called upon the Council Attorney to review Bill No. 28-83 which would amend the present scrap and junk yard ordinance. Mrs. Cekanski-Farrand explained that the bill would allow 'the - Council to review on a case by case basis any new application for a junk yard license which specifically did not meet the 1,000 foot restriction. The Council by a separation Resolution could waive the 1, 000 foot limitation if it found that the new project would be located at least one-half of the distance away, or that a majority of the affected property owners gave approval or that the majority of the business would be located within an enclosed structure. It was noted that this would allow companies like the Swedish firm which would like to locate in South Bend, to do so. All other scrap and junk yard regulations regarding inspections, buffer strips, etc. would be in force. Following discussion, Councilman Beck made:`a motion snuonded by Councilman Serge that Bill No. 28-83 go to Council favorably. The motion passed unanimously. There being no further business to come before the Committee the meeting was adjourned at 5 :55 p.m. Robert Taylor, Chairman