05-11-15 Common Council Meeting Minutes

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REGULAR MEETING MAY 11, 2015 _____________________________________ Member of the Common Council th Presenter: Jacob Alexander, Department of Community Investment, Offices on the 14 floor – Presenting a personal property abatement for Kruk Electric LLC. They manufacture springs and wire forms for medical and brake industries. They are locally owned and have been around for twelve (12) years. They employ four (4) full time and two (2) part-time employees. They are looking to expand due to steady growth and new demand. They request new equipment so they continue as a lucrative business. They are looking at $175,000 in private investment to purchase new wire form machines. New project tax will be $15,012 over a five (5) year period, estimated taxes to be abated over the five (5) year period are $6,881, and total taxes to be paid over the five (5) year period are $8,131. Petitioner: Dan Kruk, 3702 W. Sample Street, South Bend – We are increasing our production capability in South Bend, with the intent to have an increase in employees which is why we are asking for the abatement. Councilmember Davis asked the presenter, Jacob is this business in the urban enterprise zone? (The presenter replied yes) I haven’t seen too many businesses come in that are in that zone, what other incentive packages does this business get along with other businesses in the area? The presenter replied the only incentive that he is getting is this abatement. Councilmember Dr. Varner stated the urban enterprise zone is a geographical area instructed to keep the taxes that they receive for use in the area. But I don’t think they offer any other incentives. Councilmember Davis replied, I believe the building itself is within in the enterprise zone, the building provides low to no cost rent. The concern is that there are other offers that are given to this business with that zone and we can be using the city money for other businesses outside of that area as there are several benefits that they are already receiving. I just want all the information to be known. th Chris Fielding, Department of Community Investment, Offices on the 14 floor – When it comes to the credits available to the enterprise zone, most businesses that are smaller business do not receive them, as it would cost more money for them to file the paperwork than the actual incentives. We usually use a TIF abatement or a tax abatement for the smaller businesses in that area. There are a dozen abatements in the urban enterprise zone and none of those have received funding from the urban enterprise zone. Councilmember Davis replied including this business here today? Chris responded that is correct. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Schey made a motion to adopt this Resolution. Councilmember Gavin Ferlic seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes. 15-31 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA COMMONLY KNOWN AS 111 ST. JOSEPH ST. SOUTH BEND, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (2) TWO-YEAR VACANT BUILDING TAX ABATEMENT FOR JSK DEVELOPMENT, INC 15-32 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH 6