05-29-84 Human Resources & Economic Development

Home Browse Search

OIlemmtUrn Rrpuri (Uu Il a Gammon alounrtl of tilt O it4 of etmdli Tirnb: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The May 29, 1984 meeting •of the Human Resources and Economic Development Committee was called to order by its Chairman, Councilman Eugenia Braboy at 4 : 00 p.m. in the Council informal meeting room. Persons in attendance included Councilmen: Voorde, Braboy, Beck, Puzzello, Paszek, Crone, Serge, Taylor, Zakrzewski; Ann Kolata, Eugenia Schwartz, Rick Morgan, Jon Hunt, Herman Lee , Howard Bessire, Irene Gammon, Sandy Combs, Kevin Butler, members of the news media, and Kathleen Cekanski- Farrand. Councilman Braboy noted that she had sent notice of this meeting on May 18th to several interested parties. She thanked everyone for coming and welcomed their suggestions on tax abatement. She noted that Patrick McMahon of Project Future could not be in attendance however did send a three page _letter dated May. 29 , 1984,. (copy attached) . Councilman Braboy- noted that currently there are three criteria used by the City when reviewing tax abatement petitions. . Meeting any one' of these criteria would qualify the applicant' for tax abatement. These include (1) being within major groups 15-39 or 42 of the standard industrial classification manual (SIC)-, (2) creating 100 new permanent jobs, and :(3) being within any designated redevelopment area, or tax revitalization area.. Councilman Voorde noted that he had recently attended an Economic Development workshop. He felt that "balance sheets" would be too subjective. He suggested that the tax abatement procedures be reviewed every two years and that "objective and simple criteria" be used. Councilman Crone noted that the current ordinance calls for a review every three years. Howard Bessire noted that manufacturing is the basic type of employment which_ creates other jobs. Less than 6.56 have more than 100 people employed. Manufacturing is vitally important to the growth of the community. Rick Morgan noted that the changes in State law basically replaced the word"blighted" with "economic revitalization areas" . He believed that tax abatement should be used as a small business incentive. Non-industrial and non-manufacturing employers should be reviewed on a case by case basis.. He felt that the current ordinance was a workable document and suggested that only the number of jobs be reduced from the present number of 100 . He thought that • Mishawaka is unique by not offering tax abatement. Tax abatement procedures dog send signals to the business community. . Several Michigan companies are looking to Indiana and tax abatement should be used as a positive incentive. He also suggested that losing all of the retail development to the City of Mishawaka should also be carefully reviewed. He thought that financial statement: from developers would not be necessary. • • .... Pull. . ►Vallw/b• CO.