04-22-91 Human Resources & Economic Development

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1 Human Resources and Economic Development Committee April 22, 1991 Page 2 Council Member Luecke noted that the next items to be reviewed were Resolution Nos. 91-28 which is a three year real property tax abatement request and Resolution 91-29 which is a five year personal property tax abatement request for the property located at 4622 Burnett Drive South for SM. OR. Cases, Inc. Council Member Luecke noted that the request had been continued from the last Council meeting, and that discussions had taken place on these two Resolutions as the last one with the Council Attorney with regard to direction. Council Member Luecke noted that the petitioner was provided outdated information with regard to tax abatement, and that under the old Tax Abatement Ordinance he would qualify for a three year real property abatement, but under the new Ordinance he would not qualify for any real property tax abatement. In light of the dated material being provided to the petitioner, it was the recommendation to go forward under the old Ordinance. Hedy Robinson of the Redevelopment Department then reviewed the report dated April 5, 1991 from the Department of Economic Development which updates the report previously provided on that same date by incorporating the Real Property Abatement Schedule under the old Ordinance. The report concluded that the abatement qualifies for the five year personal property and would qualify for a three year real property tax abatement under the old Ordinance. Mr. Watts noted that he is currently leasing and is in the Studebaker Corridor. He noted that he originally wanted to remain in the Studebaker Corridor, however the development of that area will not be completed in time for his expansion. He noted that the Michigan City Council contacted him to relocate to that City. Although there were many incentives offered, the quality of employees and more specifically individuals who sew were not at the level as those in South Bend. He noted that his Company has been in existence since June of 1987. Sales have increased dramatically since then, and he believes that sales could double if proper manufacturing facilities were made available. Council Member Luecke noted that on page 1 of the petition, question 2, that the figures for the "new annual payroll" should read $56,000.00 as opposed to the $32,418.55 listed, and that the combined full-time and part-time annual payroll should read $111,000.00.