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HomeMy WebLinkAbout09-12-16 Community InvestmentOFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK COMMUNITY INVESTMENT Committee Members Present: Other Council Present: Others Present: Agenda: SEPTEMBER 12, 2016 3:45 P.M. Gavin Ferlic, Regina Williams- Preston, Oliver Davis, Paul Tipps, Randy Kelly Bill No. 16 -70 — Designating Personal Property Tax Abatement for Industrial Metal -Fab Bill No. 16 -74 — Designating Personal Property Tax Abatement for Imagineering Ent. Bill No. 16 -68 — Designating Real Property Tax Abatement For Industrial Metal -Fab Bill No. 16 -72 — Designating Real Property Tax Abatement For Imagineering Ent. Committee Chair Gavin Ferlic called the meeting to order with four (4) bills on the agenda. Bill No. -16 -68 — Designating Real Property Tax Abatement for Industrial Metal -Fab Bill No. 16 -70 — Designating Personal Property Tax Abatement for Industrial Metal -Fab Committee Chair Ferlic stated that there was an error in the packet. He announced that the Committee would be hearing Bill Nos. 16 -70 and 16 -68 for Industrial MetalFab. Sarah Heintzelman, Department of Community Investment with offices on the 14'h Floor of the County City Building, stated the first abatement is for Industrial MetalFab. They are looking to invest $520,000 over the course of the real and personal property investment. It will generate a total of $71,105 in taxes, of which $20,167 is going to be abated. They are looking to create ten (10) new jobs, totaling over $300,000 in income. Kyle Bodeway, minority owner of Industrial MetalFab, his grandfather started the business in 1964, and we just celebrated our 50th anniversary. We've been located at 2806 Sample Street since then, but we are landlocked by railroad tracks and businesses. We're looking to expand 455 County -City Building • 227 W. Jefferson Boulevard • South Bend, Indiana 46601 Phone 574- 235 -9221 • Fax 574- 235 -9173 • TDD 574- 235 -5567 • www.SouthBendfN.gov JENNIFER M. COFFMAN ALKEYNA M. ALDRIDGE JOSEPH MOLNAR CHIEF DEPUTY/ CHIEF OF STAFF DEPUTY/ DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK and hopefully stay in our location, but we are going to have to get creative by converting some indoor storage space to potential manufacturing space to add machinery. Committeemember Kelly motioned to send Bill No. 16 -70 to the full Council favorably, and it carried with four (4) ayes. Committeemember Randy Kelly motioned to send Bill No. 16 -68 to the full Council favorably, Committeemember Regina Williams- Preston seconded, and it carried by a voice vote with four (4) ayes. Bill No. 16 -72 — Designating Real Property Tax Abatement for Imagineering Ent. Bill No. 16 -74 — Designating Personal Property Tax Abatement for Imagineering Ent. Ms. Heintzelman stated the abatement is for Imagineering Technology, and they are looking to invest $3.5 million. It will allow them to create twenty -five (25) new jobs with an annual payroll of over $780,000 per year. The total taxes over the whole project, both real and personal, will be $332,374, with $126,224 abated. Joe Rowan, 1302 West Sample Street, stated that his business has been around since 1959 and they are looking to expand their business. Jim Hammer acquired the company in 1996, and they've, done tremendous things in the past few years with it. The company has upped their headcount by seventy -six percent (76 %) in the past six (6) to seven (7) years, and made about $4 million in investments into the company in various equipment. They are looking to expand their portfolio, and believe that if they add the anodized process to their business, it will complement some of their other offerings. They are a metal finishing company, so they offer various paint and chemical applications. The anodized process is a chemical process for aluminum, and that would open doors in the aerospace industry with customers who have asked them to go ahead with this project. They can add about twenty -five (25) jobs, and that is a conservative estimate. Councilmember Dr. Varner stated that this company has been to the Council a few times, and they've always managed to put the product and the need together, and he's been able to grow his business substantially. We want local businesses to stay here and grow, so to the extent that we can help them, it's great. Committeemember Randy Kelly moved to send Bill No. 16 -74 to the full Council favorably, Committeemember Williams- Preston seconded and it carried by a voice vote of four (4) ayes. Respectfully Submitted, Gavin Ferlic, Committee Chair 2