10-23-00 Community & Economic Development

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• Community and Economic Development October 23, 2000 Page 3 year real property tax abatement request by Gibbs Wire & Steel Company, Inc. for the property located at 3751 Olive Road. Mr. Beitzinger reviewed the Community & Economic Development Report of October 18, 2000 (copy attached). He noted that the Petitioner plans to construct a 167,000 square foot distribution facility on fifteen (15) acres for a total project cost of $ 5.5 million. 3 to 5 new full- time jobs would be created in the first year. The report concluded that the Petitioner meets the qualifications for a ten (10) year real property tax abatement under § 2-83 of the South Bend Municipal Code addressing"warehouse development city-wide". Mr. John Cleaver, Vice President of Gibbs Wire & Wire Company, Inc. made the presentation. He noted that their company currently has six (6) warehouses in the United States and one (1) in Canada. Their present site in South Bend was constructed in 1961 and four (4) additions have been made to it. Their company will grow from 80,000 square feet to 167,000 square feet. Phil Panzica, a local architect, showed two (2) architectural renderings to the Committee members. He noted that much of their inventory is sent overseas. Jon R. Hunt, Executive Director of the Department of Community & Economic Development stated that the Petitioner has been a real supporter of South Bend for many, many years. He noted that the proposed abatement project would permit the Petitioner to create approximately 29 jobs after the initial 3-5 jobs,which maintaining quality full-time jobs in the City. He urged the Committee to approve the request. Council Member Coleman noted that in addition to keeping Gibbs Wire in our community and creating quality new full-time jobs, an additional benefit by the relocation is that the use of Voorde Park and the surrounding area would be enhanced. Following discussion, Council Member Varner made a motion, seconded by Council Member Ujdak that Bill No. 00-122 be recommended favorably to Council. The motion passed. Council Member Kelly then called for the presentation on Bill No. 95-00 which would authorize the submission of a grant&loan application for the Robert Bosch Corporation Retention Project. Mr. Bob Case of the Community & Economic Development Department made the presentation. He noted that the ordinance is a requirement of the State of Indiana in order to apply for the$ 1 million grant and loan assistance through the state's Industrial Development Fund. In response to questions raised by Council Member White, Mr. Case noted that the loan would be repaid over fifteen(15) years at a 3 %interest rate. Citizen Member Jean Troutman-Poole inquired how much tax money is being used to keep Bosch in the community,noting that they had over$ 5 billion in sales in 1999. Bob Case stated that $ 3.5 million in TIF would be provided over three (3) years. The average salary would be $ 70,000; and Bosch agreed to stay for 20 years as a part of a lease agreement.