10-23-00 Community & Economic Development

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Community and Economic Development Committee October 23, 2000 Page 2 In response to a question from Council Member Coleman, the Petitioners noted that manufacturing makes up approximately 60%of their business with this percentage increasing once they move to their new location. In response to a question from Dr. Varner, it was noted that the petitioners will be located in the tip of the newly annexed part of the City. In response to a question from Citizen Member Jean Troutman-Poole, the Petitioners noted that the average salary will be$ 12.50 per hour plus benefits. The Council Attorney noted that in reviewing the Resolution adopted by the Commission on Friday, it does not specify the number of years for the real property tax abatement. She further noted that if the Council would approve a ten year abatement rather than a three year abatement, it would require a proper paper trail from the City Administration. Mr. Beitzinger stated that he could review the SIC codes to reference in the documentation and would prepare an addendum to the October 2, 2000 Community and Economic Development Report addressing the data described by the Petitioners, noting that the square footage would qualify the Petitioners for a 10-year real property tax abatement under the proper SIC code. He noted that the taxes abated for a 3-year abatement would be$ 111,000;and that the taxes abated for a 10-year abatement would be $ 261,000. Dr. Varner stated that with the petitioner providing 50 to 60 quality jobs that he believes the City should do all that it can go spur new development. He would therefore be supporting a ten- year abatement for the Petitioners. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that Bill No. 00-117 (amended to reflect a 10-year abatement) be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 00-118 which is a five (5) year personal property tax abatement request of Value Tool & Engineering, Inc. for the property located at 2629 Foundation Drive. Mr. Michael Beitzinger reviewed the October 3, 2000 report (copy attached). The Petitioner manufactures tooling for use in the aerospace, automotive, medical and commercial markets. The new equipment cost is approximately$450,000. Ten(10)new full-time jobs would be created and twelve(12) full-time jobs would be maintained. The Petitioner meets the criteria for a five (5) year personal property tax abatement under § 2-84.2 of the South Bend Municipal Code addressing"tangible personal property tax abatement". Mr. Steven Hartz, President of Value Tool &Engineering, Inc. made the presentation. He noted that their products are used throughout the world with supplies being sent to GM, Ownes Corning, etc. Citizen Member Jean Troutman-Poole inquired as to the average hourly rate. Mr. Hartz stated that the hourly rate would be$ 21.00 per hour plus benefits. Following discussion, Dr. Varner made a motion, seconded by Council Member Kirsits, that Bill No. 00-117 be recommended favorably to Council. The motion passed. Council Member Kelly then called for the review of Bill No. 00-122 which is a ten(10)