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'loinmtittet port: <br /> tolitutunitt, and (rononti iltdelopumnt 1onttnitt i <br /> The April 25, 2001 meeting of the Community and Economic Development Committee was called <br /> to order by its Vice-Chairperson, Council Member Andrew Ujdak at 4:00 p.m. in the Council <br /> Informal Meeting Room. <br /> Persons in attendance included Council Members: King, Ujdak, Pfeifer, Kirsits and Varner; <br /> Community Development Director Jon Hunt, Economic Development Specialist Mike Beitzinger, <br /> Ann Kolata, Don Inks, Terry Bland of the g50110 Vgra + Gribunt, and Kathleen Cekanski- <br /> Farrand, Council Attorney. <br /> Council Member Ujdak noted that Council Member Kelly called this meeting to begin an extensive <br /> review of the City's current tax abatement procedures. He noted that several additional meetings <br /> are anticipated on this topic. <br /> Mr. Hunt and his staff then provided a review of the City's tax abatement policies and procedures. <br /> He noted that many regulations reflect the changes that have occurred in state law and that others <br /> are evolutionary. Initially guidelines addressed "blight" and were a tool to create new jobs within <br /> the city. Mr. Hunt noted that the City of Indianapolis contains provisions addressing "claw back" <br /> and"back taxes"in the event that a business closes who has been given tax abatement. He further <br /> noted that such petitioners are requested to pay back taxes pursuant to specific contractual terms <br /> previously agreed upon by the parties. <br /> Council Member Ujdak suggested that perhaps the city should target a specific type of business for <br /> a set period of years which would be given tax abatement and then review such procedures on a <br /> regular basis. Mr. Hunt noted that consistency in policies are needed. <br /> Council Members King, Varner and Ujdak stressed the importance of having policies which reflect <br /> the needs of the community and that the process should be structured accordingly. <br /> Council Member King inquired as to what is the overall goal of the City's tax abatement policies. <br /> He noted that when he was at Crow Chizek that their clients were always advised to go after tax <br /> abatement noting that the process was like the $ 2.00 off Barnaby's coupon--that it is taken for <br /> granted. He suggested that the goals in place during the 1990's should be looked at and it should <br /> be ascertained whether the policies are doing any good. <br /> Mr. Beitzinger noted that there are many persons who never come before the Council since they do <br /> not qualify under the current guidelines. <br /> Dr. Varner noted that the City of South Bend has the second highest tax rate in the State of Indiana, <br /> and that property tax rates do affect business decisions when deciding to locate here. <br /> Council Members King and Varner noted that perhaps the goal of the city's tax abatement program <br /> has been to attract new development. Council Member King stated that we must determine <br /> whether we are having a legitimate effect on behavior; suggesting that we should make the <br /> incentives to locate here even better. <br /> Council Member Ujdak noted that Pat McMahon of Project Future noted over four (4) years ago <br /> that the City of South Bend gives too many tax abatements. Council Member Ujdak further <br /> suggested that by-products such as using local labor should be considered as a criteria as to <br />