03-26-01 Community & Economic Development

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QCommitt*e (lCommuutti anti Commit Ihrtitioputent Contittittize The March 26, 2001 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Cew cil Member Roland Kelly at 5:40 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members: Aranowski, King, Kelly, Pfeifer, White, Varner, Ujdak, Coleman and Kirsits; Ken Fedder, Roberta Baxter, Dave Bitter, Rhonda Brown, Economic Development Specialist Cassandra Moran, Mike Beitzinger, Terry Gilbert, Terry Bland of the frpoutb 3:S tub Eribunt,and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly noted that the first item on the agenda was to review Bill No. 25-01 which would amend Chapter 2 of the South Bend Municipal Code by adding construction-related criteria and guidelines for projects benefitting by tax abatement. Council Member Kelly called upon Council Member King,one of the sponsors of the Bill for an update. Council Member King stated that Bill No. 25-01 was tiled to begin the process of discussing the overall goals and policies addressing tax abatement in light of a changing economic climate. The timing of the proposed ordinance was to compliment the measure pending before the St. Joseph County Council. He noted that in light of the County Council continuing their proposal at their last monthly meeting, that many have begun to focus on the issue of construction wages, as opposed to the overall focus of the Bill. In light of the growing concern that the overall goals and policies may be lost,Council Member King recommended that the Bill be withdrawn and be re-submitted at a later time. Council Member Kelly noted that he had been working with the City. Administration on other provisions of the overall tax abatement policies, and that amendments would be forthcoming in the weeks ahead for Council consideration. Council Member Aranowski, one of the sponsor's of Bill No. 25-01, stated that he echoes the comments made by Council Member King. Council Member Ujdak, one of the sponsor's of Bill No. 25-01, then made a motion, seconded by Council Member Ujdak that Bill No. 25-01 be struck from the agenda. The motion passed. Council Member Kelly stated that the next item on the agenda was to review Bill No. 1-16 which is a proposed reconfirming resolution for the property located at 3520 Westmoor Street for Honeywell,Inc., formerly known as Aircraft Landing Systems,AlliedSignal, Inc. Cassandra Moran, an Economic Development Specialist reviewed her report dated March 7, 2001 (copy attached). She noted that the resolution is asking for a one-year extension of their previously approved five (5) year personal property tax abatement which was approved by the Council on April 12, 1999. Ms. Moran noted that the Petitioner is in the business of designing, testing , manufacturing and servicing of aircraft landing systems. The original project called for the purchase and installation of new manufacturing equipment and refurbishing of existing equipment in order to support industry growth. The total project cost is projected to be $ 45.1 million and is needed in order to meet the increased demand resulting from the growth of the commercial airline industry. Twenty (20) new jobs are to be created, while maintaining 940 existing permanent full- time jobs for an annual payroll of$ 59,662,368.00.