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HomeMy WebLinkAbout04/23/07 Community and Economic Development Committee Minutes (2)Community and Economic Development Committee 2007 South Bend Common Council The April 23, 2007 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Derek D. Dieter at 3:15 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Kelly, Varner, Kirsits, White, Dieter, Kuspa, Rouse and Puzzello; Citizen Member Martin Wolfson; Mayor Stephen J. Luecke, Don Inks, Martha Lewis, Rita Kopola, City Clerk John Voorde, Patrick McMahon, Richard J. Deahl, Ann Kolata, Carl Littrell, Police Chief Thomas Fautz, Building Commissioner Don Fozo, Mark Harman, Bob Ma#hia, Dan Golfer, Jamie Loo of the South Bend Tribune and Kathleen Cekanski-Farrand, Council Attorney. Council Member Dieter noted that the Committee members include Council Members Kelly, Puzzello, White, and himself; and that Professor Martin Wolfson Phil Panzica are the citizen members. He noted that since Project Future Executive Director Patrick McMahon was still in route to the meeting, that he would begin with the other items listed on the meeting agenda. Bill Nos. U7-53: Five 5 Year Residential Real Pro ert Tax Abatement Re nest of Dan Golfer for the Pro ert Located at 1329 South 32" Street: Council Member Dieter called fora report from the Community and Economic Development Department an Bill No. 07-53. Bob Mathia of the Community and Economic Development Department reviewed the written report dated March 21, 2007 {copy attached}. He noted that the petitioner, Dan Golfer, proposes to construct a new home consisting of 1,440 square feet at 1329 South 32"~ Street. The projected value of the home would be $94,000. The report concludes that the Petitioner meets the requirements far a five (5} year residential tax abatement and has satisfied the regulations set forth in Section 2-77.1 of the South Bend Municipal Code addressing "Single Family Residential Construction"' Dan Golfer, the petitioner who resides at 203 Eunice Drive, South Bend, Indiana 46615 made the formal presentation. He noted in response to questions from Dr. Varner, that he and his wife would move into the home when it is completed. He added that the home would be located in the River Park Neighborhood. No one from the public spoke in favor or in opposition to the Bill. Council Member White made a motion, seconded by Council Member Puzzello that Bill No. 07-53 be recommended favorably to Council. The motion passed. Community and Economic Development Committee April 23, 2007 Page 2 Substitute Bill Na D7-69: Seven [7] Year Real Property_Ta_x_Abatement Request for Stanz Food Service, I_nc: Council Member Dieter called for a report from the Community & Economic Development Department on Substitute Bill No. 07-61. Bob Mathis of the Community and Economic Development Department reviewed the written report dated April 10, 2007 (copy attached). He noted that the petitioner, Stanz Food Service, is a full-line, food service distribution business with customers throughout northern Indiana and southern Michigan. They use warehouse facilities and distribution facilities which require the storage of dry, refrigerated and frozen foods. Mr. Mathis noted that the confirmatory resolution would be held until the contract information is in place, adding that there was a miscalculation done on the original petition necessitating the substitute bill He Hated that the petitioner meets all of the requirements for a seven (7) year real property tax abatement under Section 2-53.1 of the Soufh Bend Municipal Code. Richard Deahl, an attorney with Barnes and Thornberg, with offices in downtown South Bend made the formal presentation. He noted that two years ago they came before the Council seeking a tax abatement far ten (10) years which was granted. Due to the cost of the development which was double their projections, the current proposal is approximately half of that originally proposed. They would also be acquiring the property adjacent to it. Once contractors are in place, the points which be reassessed and they would be coming back to the Council for review and discussion. In response to questions from Citizen Member Wolfson, Mr. Deah! noted that they have supported many non-profits throughout the community, however the Palais Royale may be a mis-statement. They have contributed in kind also to the South Bend Fire Department and the South Bend Police Department, and to many other organizations. He offered to present a complete listing to the Council at a later time, however they would prefer not to list the actual monetary amounts. With regard to "preferred hiring preference", Mr. Deahl stated that they review census tract information by population and income level and if qualified candidates are found, they are given preference over others. Mark Harman, President of Stanz Cheese Company, Inc., doing business as Stanz Foodservice, Inc. with offices at 1840 North Commerce Drive, South Bend, Indiana 46628, added that the areas where they receive the most turn-over in employment are in sales and in night operations. Council Member Pfeifer requested data on the gender and racial composition also. Mayor Luecke spoke in favor of Substi#ute Bill No. 07-61, noting that Stanz has been a great corporate citizen. The Mayor stated that he believes that the new plan is even Community and Economic Development Committee April 23, 2D07 Page 3 better than the origins[ one proposed. He commended the work of Council Member Dieter and Council President Rouse in developing a winlwin solution for their expansion. Council Member Pfeifer added that Stanz was very involved in providing donations when she was working at the treatment center. Council Member Dieter requested favorable action on Stanz, noting that they have been a long-term corporate citizen that works for the betterment of the community. Council Member White made a motion, seconded by Council Member Puzzello that Substitute Bill No. 07-61 be recommended favorably to Council. The motion passed. Bill No, 07-62: A Resoltuion Authorizin the Ma or to Submit an A lication to the Indiana Finance Authorit for a Sti elated Remediation Grant of u to $100,000 for Property Located at 101 North Michigan Street: Council Member Dieter called for a formal presentation on Bill No. 07-62 (copy attached). Ann E. Kolata, Senior Redevelopment Specialist with the Community and Economic Development Department, made the formal presentation. She noted that the resolution would authorize the city to submit an application for a Stipulated Remediation Grant. It would be presented to the lndiana Finance Authority, as part of the Indiana Brownfields Program. The grant would be for asbestos abatement for the property located at 101 North Michigan Street, with the regulations requiring that the City be the grant applicant. The total cost of the project called the "All American Plaza" is projected to be $7 million. In response to a question from Dr. Varner, Ms. Kolata stated that she believed that Brad Toothacher was the local agent and contact person for the project. In response to a question from Council President Rouse, Ms. Kolata stated that she does not see remediation of this type being a big problem. The remediation would be for the pipe wrapping and wrapping with the heating and air conditioning units. Following discussion, Council Member Puzzello made a motion, seconded by Council Member Kelly that Bill No. 07-62 be recommended favorably to Council. The motion passed. Proiect Future Update by Patrick McMahon: Council Member Dieter welcomed the Executive Director of Project Future to the committee. Community and economic l~e~eloprnent Committee April 23, Zoo? Page 4 Patrick McMahan noted that last Fall the Council talked about getting together on a regular basis to receive updates on Project Future. Today would be the first of those updates. He provided four (4) handouts to the Committee which he then reviewed with the Committee. Mr. McMahon stated that he would like to have a series of meetings, perhaps two months apart to review all of the topics. Dr. Varner suggested that perhaps there should be a session on the "101Topics" which the Council has had in the past. In response to a question from Council President Rouse, Mr. McMahan projected that each topic would take about an hour. President Rouse suggested that perhaps a retreat format might be used. Council Member Pfeifer noted that she would be against dinner meetings, and stressed that all Council Members need to participate. Council Member Puzzello noted that Kate McEnroe, the speaker at the Project Future Annual meeting, was excellent. Mr. McMahon noted that she would be involved with many communities in the ongoing review from multi-faceted development perspectives. Mr. McMahon then reviewed the first handout Handout # 1: "Potential Counci[ Discussion To ics-Ma"or Economic ©e~elopment Issues": • Local Economic Profile • Business Attraction and Retention • Competitive Posture • Human Resources • Transportation and Utilities • Sites, Buildings, Industrial and Office Parks • Business Counseling (Small Business Development Center) • Metronet • Technology Park • Overview of Incentives (County, City, State) Mr. McMahon then reviewed the second handout. Handout # 2: "U.S. 31 Project Summary Status, March, 2D07": • There are three (3) segments: St. JosephlMarshall County EIS; Howard CountylKokomo EIS; and Hamilton County EIS Community and economic ^eve[opment Committee Apri[ 23, 20D7 Page 5 • Goal is to develop an "interstate quality facility" • "Record of Decision" is determined by the federal government and that no monies can be spent until such decision is rendered • St.JosephlMarshall County E15 got their record of decision on June 29, 2006 • Howard CauntylKokomo EIS should get their record of decision in the next several weeks • Hamilton County EIS are delayed in getting their record of decision Mr. McMahon then reviewed the third handout. Handout # 3: "Population Served: One-Day Ground Service"..Map: • The red circle depicts 40.2 million for the South Bend area fnr 1-day ground service for non-manufacturing items • Harrisburg, PA is #1 in the nation with 46-48 million, with the South Bend area being # 2, noting that manufacturing would be totally difference areas Mr. McMahon then reviewed the fourth handout Handout # 4: "Northern Indiana's Heavv Hauf Route." Ma Mr, McMahan suggested that letters to LaPorte Mayor Morris may be in order. He explained that Indiana state highways have a limit of 80,000#; the [ndiana Toll Road has a limit of 90,000# and the heavy haul route depicted in red has a limit of 134,000#; whereas the state highways in Michigan have a limit of 159,000#. Mr. McMahon noted that '134,000# and 159,000# permit two (2) rolls of steel to be hauled. The vertical blue line depicts the AEP area where rates are very attractive and have resulted in costs savings, with the other side being the NIPSCO rate area The blue circle depicts the Union MillslVllellsbora area which is under consideration for the prapased inner-modal facility where rail cars may be doubled stacked. The closest inner-modal facilities now are located in Detroit and Chicago. The prapased inner- modal facility is an exciting economic development projected which South Bend may benefit from in the future. In response to a question from Council Member Pfeifer, Mr. McMahon stated that the cost to upgrade bridges is one of the most expensive considerations when considering road limits. He added that he sees many regional issues. The consultant Kate McEnroe will be lacking from a "site selection" perspective as well as from a Community and Economic Qeveiopment Committee April 23, 2007 Page fi "nationallregional realtar" perspective. He is looking forward to upcoming discussions with the Council on these many topics. Council Member Dieter thanked Mr. McMahon for the information which he shared, as well as the handouts. Council Member Dieter then adjourned the Committee meeting at 4:14 p,m. Respectfully mitted(/ry,¢ '...- ~ f Council Member Derek D. Dieter, Chairperson Community and Economic Development Committee Attachments