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ELM
<br />REGULAR.MEETING SEPTEMBER 15, 1980
<br />COMMITTEE OF THE WHOLE MEETING (CONTINUED)
<br />RESOLUTION A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH
<br />BEND APPROVING THE ISSUANCE OF A LICENSE FOR SCRAP AND
<br />JUNK DEALERS (BREMEN IRON & METAL COMPANY, INC.)
<br />Council :Member Taylor.made a motion to recess, seconded by Council Member Kopczynski.
<br />The motion carried and the meeting was recessed at 7:35 p.m., and reconvened at 7:47 p.m.
<br />A public hearing was held on the resolution at this time. Mr. Bruce Bancroft, represent-
<br />ing Bremen Iron & Metal, indicated this was .a family business started in 1942. He said
<br />this company is very interested in making a commitment to South Bend to stay in our com-
<br />munity. He said they were requesting the Council's approval for a license, under the
<br />ordinance pertaining to scrap and junk yards. He indicated that the Board of Works
<br />approved the granting of this license on September 8 and found that Bremen Iron and Metal
<br />was in technical compliance. He indicated this 8.8 acres of land was property zoned. He
<br />indicated this was a transfer of operations, a metal processing facility, from Gertrude
<br />Street. He indicated they will not have a shredder at this site. He indicated that their
<br />machines meet or exceed EPA standards. He showed a slide presentation of the present
<br />location in South Bend and Fort Wayne. Kathy - Cekanski - Farrand, Council Attorney, describe(
<br />the Council's approval of new junk and scrap yards, in accordance with the City Code.
<br />David Major, Executive Vice President of the South Bend - Mishawaka Chamber of Commerce,
<br />read the following into the record:
<br />"The Chamber of Commerce supports both the expansion and the relocation of Bremen Iron
<br />& Metal. We feel that some of the controversy is due to a lack of knowledge about the
<br />nature of the scrap metal industry and its positive impact on a community. In brief
<br />I would like to address four areas of this controversy; 1) Viability of the industry,
<br />2) need to relocate, 3) aesthetics, and 4) economic impact on the community.
<br />1) Bremen Iron & Metal is a scrap metal processor, not a junk yard. A junk yard is
<br />what its name implies - -a dumping ground for discarded items which dealers may sort and
<br />sell. Little or no equipment is needed.
<br />By contrast, a scrap metal processor is one who, from a fixed location, utilizes machinery
<br />and equipment for processing ,and manufacturing iron, steel or nonferrous metallic scrap
<br />into prepared grades, and whose principal product is ferrous or nonferrous metallic scrap
<br />for remelting purposes.
<br />Recycled scrap represents only 30% of todays cost of refining new ore for industrial use.
<br />What is more, the Bremen plant will meet environmental specifications and will receive
<br />EPA approval.
<br />2) Need to Relocate: Bremen Iron & Metal is currently located southwest of Rum Village.
<br />As an industry, Bremen Iron & Metal belongs in an industrially zdned area, such as their
<br />proposed location on Sample Street.
<br />Recycle operations, logically need material to recycle. By locating in an industrial area,
<br />Bremen would have more direct access to industrial scrap. Roads and traffic patterns for
<br />hauling scrap are already designed to accomodate the transporation needs of the company.
<br />Bremen Iron and Metal would have access to rail for both imbound "raw" scrap and outbound
<br />processed scrap, a distinct advantage of the proposed location as well as the community.
<br />3) Aesthetics: Closely tied to the selection of the new Bremen site are the aesthetic
<br />considerations. The Sample Street side is aesthetically secluded. Surrounded by industry
<br />and landscaped with trees and lawns, Bremen Iron & Metal will gracefully blend into its
<br />industrial surrounds and present no threat of an "eyesore ".
<br />4) Economic Impact on the Community: Company
<br />Bremen Iron & Metal is a growing business. At
<br />160 people. Investment in property, buildings
<br />$2,750,000 and $3,750,000. Within five years,
<br />further to employ 250 or more and to invest an
<br />will further increase the tax base of the City
<br />Entry wages of the 140,to 160 employees at the
<br />a package which approximates $10 /hour in total
<br />executive Dan Rifkin emphasizes that
<br />the new site, he plans to employ 140 to
<br />and improvements will total between
<br />Bremen Iron & Metal has plans to expand
<br />additional $2.5 Million - -- money which
<br />of South Bend.
<br />new site will begin at $6 /hour plus benefit
<br />compensation.
<br />Need for Additional Jobs in South Bend - - Statistics
<br />The most recent (July) statistics from the Indiana Employment Security Divsiion show that
<br />employment inmanufacturing for the South Bend SMSA has dropped from 34,800 in July to
<br />30,600 in July of 1980 -- a decrease of 4,200 jobs.
<br />The rate of unemployment for the South Bend area has been more than 107o since May of .this
<br />year, and shows no sign of dropping at this point in time. In the South Bend SMSA in
<br />July of 1980, 15,900 people were unemployed.
<br />140 manufacturing jobs are also crucial for the auxiliary jobs they create. We estimate
<br />that these 140 to 160 jobs will, in turn, generate up to three times that number of 450
<br />new jobs, in the South Bend area.
<br />Finally, Bremen Iron & Metal has a strong interest in cooperating with both CETA and the
<br />Private Industry Council in their quest for new employees.
<br />Ladies and gentlemen of the Common Council, the Chamber urges your support of the necessary
<br />licensing for this industry. Thank you for your consideration.
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