11-21-01 Community & Economic Development

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Qt4tttttttttgt Uport: Community antr (econottttc Ocb ia4ptttettt (Ottttttttt tz The November 21, 2001 joint meeting of the Community and Economic Development Committee was called to order by its Chairperson Council Member Roland Kelly at 1:35 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Varner, King, Coleman and Kelly; Michael Beitzinger, Don Inks, Jon Hunt, Jim Scheetz, F. Jay Dunney, Pat McMahon of Project Future, Pete Mullen, Mike Kruk, Terry Bland of the gbouth Virti4 ZrthU1U and Kathy Cekanski Farrand, Council Attorney. Council Member Kelly thanked everyone for coming to the Committee meeting which will focus on revising local tax abatement procedures. Council Member King then provided a brief overview to the draft tax abatement ordinance which was provided at the November 7th meeting focusing on the abatement tiers, base abatements and add-on abatement years. Council Member King noted that the"super-sized projects"are addressed in 9(1) f, which has been added since the last meeting. Council Member Coleman noted that Tire Rack was a 500,000 square foot project, and therefore attention should be given to size. Council Member King noted that projects like Tire Rack and the proposed regulations would provide the opportunity to hire locally since they could build from different categories. Pat McMahon noted that materials are a function of what you buy and where it is located. He questioned what was local and what was not, and further noted that with construction managers there would be separate contracts. Council Member Kelly stated that the Committee is attempting to come up with a process which would ultimately benefit those who are living in South Bend. He noted that we must be practical as well as provide benefits to those living in the city. Don Inks suggested that incentives be provided only if it is available locally for perhaps 75 % or based on a dollar cost. Discussion then took place on employees versus independent contractors noting that independent contractors should receive 1099's are not usually licensed through the Building Department. Dr. Varner suggested that tax ID numbers be used. Jon Hunt noted that one of the primary goals is to have benefits accrue to South Bend. The Committee inquired of the building trade representatives present how many live in South Bend. It was suggested that perhaps that information could be provided to the committee utilizing zip code classifications. Mr. Dunney noted that there are 5,500 construction workers in St. Joseph County. Mr. Kruk suggested that Davis-Bacon wages be the goal as opposed to BLS rates.