01-14-85 Human Resources & Economic Development

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Qtzautut utt Evart Zhu the Mourn= Omuta of tip (guy of twill aknd: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The January 14, 1935 meeting of the Human Resources and Economic Development Committee was called to order by its Chairman, Councilman Eugenia Braboy at 4: 35 D.M. in the Council informal meeting room. Persons in attendance included: Councilmen Serge, Braboy, Beck, Puzzello , Taylor, Zakrzewski, Crone, Voorde and Paszek; Ann Kolata, Eugenia Schwartz, Glenda Rae Hernandez, Jeff Gibney, members of the news media, various petitioners and their attorneys , and Kathleen Cekanski- Farrand. Councilman Braboy noted that Bill No 3-85 was the revised tax abatement ordinance. It is set for first reading this evening and will be set for public hearing on January 28th. She encouraged the Council to review it carefully., Councilman Braboy then called upon Ann Kolata to give the Redevelopment Staff report on Resolution 9-A which is a real property tax abatement petitioned by Automatic Molded Plastics Mrs . Kolata noted that the petitioner plans to construu,,c-t a 16,'950 square foot building. at 3107 North Kenmore which is in Phase IV of the Airport Industrial Park. Presently Automatic Molded Plastic is operating a facility in Goshen, Indiana and will relocate to South Bend. Fifty new jobs will be created with an annual payroll of $587 ,000. A copy of the staff report is attached. Mr. Dennis Jordan, Director of Finance was present and answered questions of the Committee. Following discussion, Councilman Taylor made a motion seconded by Councilman Puzzello that Resolution 9-A go to Council favorably. The motion Passed unanimously. Councilman Braboy then asked for the report from Redevelopment on Teachers Credit Union which is Resolution 9-C which is seeking real property tax abatement for the Southeast corner of Main and Washington Streets. It was noted that a new building consisting of 74, 000 square feet and 6 stories in height would be constructed. Estimated cost would be $7,000 ,000,000 and 140 new jobs would be created. Mr. Ben Hawkins president of TCU and Mr. Ernie Szarwark, attorney, showed a diagram of the project. It was noted that the project is contingent on a UDAG Grant. The City should know by the end of this month about the grant. Mrs. Schwartz noted that Section 108 CDBG Funds are also being considered for financing. Such funds are future monies which are loaned to the City by HUD. Mrs. Kolata noted that CDBG Funds are shrinking but hopefully separate provisions will be incorporated for such draw-downs . The City will entering into a lease-purchase agreement with TCU on the parking garage for a 40 year period. Since the money is Section 108 in nature , when it is repaid it will go into a separate fund. The City is on a six year repayment program with interest based on the time of draw-down. There is a federal law addressing the maximum amount which can be borrowed with repayment for a 20 year maximum. Monroe Park was financed this way with a six year pay-back, however was paid back in three years. Following discussion by the Committee, Councilman Taylor made a motion seconded by FREE + PUBLISHING CO.