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HomeMy WebLinkAbout08/13/07 Community and Economic Development Committee MinutesCommunity and Economic Development Committee 2007 South Bend Common Council The August 13, 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 Dieter at 3:52 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Dieter, Varner, Kuspa, Kirsits, Kelly, Pfeifer, Rouse and Puzzello; Citizen Member Phi! Panzica, Citizen Member Martin Wolfson, Bill Schalliol, Mike Conn, Glenn Nelson, Jeff McGowan, Manette Tepe, Gerry Lerman, Martha Lewis, 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 Phi[ Panzica and Professor Marty Wolfson serve as citizen members. Bill No. 07-$9: Proposed Recon#irming Resolution #or 624 North Notre Dame Avenue: Council Member Dieter called for a presentation on Bill No. D7-$9 which is a Resolution to reconfirm the designation of 2629 Foundation Drive as an economic revitalization area for the purposes of extending their five (5} year personal property tax abatement for Value Production Inc. and its affiliates. Bill Schalliol of the Department of Community and Economic Development made the presentation. He noted that a $1,250,000 project cost will result from five {5) pieces of equipment being added. Military work is the primary component, with a new customer base being out of Chicago, Illinois. Following discussion, Council Member Kelly made a motion, seconded by Citizen Member Panzica that Bill No. D7-89 be recommended favorably to Council. The motion passed. Bill Na 07-99: Resolution Requesting the Waiving of Conditions Precedent Bill No~ 07-90: Resolution Requesting A 6-Year Real Property Tax Abatement #or the Pro ert Located at 5855 Carbonmill Drive: Council Member Dieter requested that a report on Bill No. D7-99 requesting a waiver of conditions precedent for 5855 Carbonmill Drive and Bill No. 07-90 requesting a 6-year real property tax abatement for 5855 Carbonmill Drive be presented. Community and Economic Development Committee August 13, 2007 Page 2 Bill Schalliol of the Community and Economic Development Department reviewed his department's report on the two (2} bills. He noted that the waiver request was briefly discussed at the last committee meeting. The request involves an existing warehouse which must be temperature controlled in the airport area. Project costs ranges from $300,000 to $500,000. Michael K. Conn made the formal presentation. He noted that GSWBICorporate Services will be acquiring a vacated building and upgrading the facility. Eighteen (18} new jobs are projected with an estimated payroll of $465,000; and six (6) jobs will be retained with a payroll of $156,000. Council Member noted that the lack of a quorum by the Redevelopment Commission impacted this petitioner, and that the petitioner has done everything to comply with the local regulations. Council Member Dieter noted that he and Council President Rouse went out to the location about 4-6 months ago and visited the site. He noted that the petitioner has grown from 2-3 employees to over 300 employees. Council Member Dieter noted that Mr. Conn and company representatives have done an excellent job of expanding their operations and offering good-duality and good-paying jobs. He commended the petitioner for staying in South Bend. Council President Rouse noted that he was very impressed with the Petitioner's operations when he and Council Member Dieter toured their facility. He is glad that they are staying in South Bend and are offering the opportunity for persons to have good jobs. No one from the public spoke in favor or in opposition to the Bills. Council Member Kelly made a motion, seconded by Council Member Puzzello that Bill Nos. 07-99 and 07-90 be recommended favorably to Council. The motion passed. Substitute Bill No. Q7-91; Proposed 9-Year Real Property Tax Abatement for the Property Located at 84p United Drive: Council Member Dieter called for a presentation on Bill No 07-91 which is a 9-year real property tax abatement request for the property located at 840 United Drive requested by Nelson Dee, L.L.C. Bill Schalliol reviewed his report dated 08-13-07 (attached) and noted that the substitute bill reflects a change from ten (10) years to nine (9} years for the real property tax abatement request which meets the local regulations, Community and Economic ©evelopment Committee August 13, 2007 Page 3 Glenn Nelson of United Beverages made the formal presentation. He noted that they plan to stay in the Studebaker Corridor and make a building expansion. The new investment is estimated at $2,500,000 for the 15,000 square foot expansion and site upgrade. They estimate to create 5-7 new jobs, and retain 63 existing jobs which have a payroll of $3,200,000. He noted that they need to grow their business and need more warehouse space. Citizen Member Morin Wolson requesting the petitioner on affirmative steps vs. affirmative action, noting that they are bath important. Council Member Pfeifer stated that it was her understanding that affirmative action was to be handled at the Department of Community and Economic Department staff level, and not at the Council level. Mr. Nelson stated that they have along-standing policy of non-discrimination in hiring and promotion. Jeff McGowan, the CPA for the petitioner noted that he is with Kruggel Lawton & Company LLC CPAs with offices at 210 South Michigan Street in downtown South Bend. He noted that the petitioner has been a client of theirs far many years and have paid $185,000 real & personal property taxes. He noted that they will be paying a considerable amount of taxes over the 9-year period requested in the tax abatement. There was no one from the public to speak in favor or in opposition to the Bill. Council Member Puzzello made a motion, seconded by Council Member Kelly that Substitute Bill No. 07-91 be recommended favorably to Council. The motion passed. Council President Rouse noted that he is elated that the Petitioner is staying in South Bend. Bitl No. 0'7-95: Proposed 5-Year Residential Real Property Tax Abatement for the Property Located a#220 West Colfax Avenue: Council Member Dieter called for a report an Biil Na. 07-95 which is a five (5) year residential real property tax abatement far Colfax Place Associates for the property located at 220 West Colfax in downtown South Bend. Bill 5challiol reviewed his report dated 07-17-07 (attached) and Hated that the petitioner meets the requirements far a 5-year residential real property tax abatement. Community and Economic Development Committee August 13, 2007 Page 4 Nanette Tepe made the formal presentation. She noted that the Colfax Place Apartments project would create new residential and commercial uses in the central business district in downtown South Bend. They will be investing $4,100,000 into the project. In response to a question from Council Member Kelly, Ms. Tepe noted that they have had 4 of 12 units addressed in pre-sales. She noted that they units begin at 1,500 square feet. They range in price from $259,000 to $850,000 for the penthouse, with a buyer being on board far the penthouse, Council Member Pfeifer encouraged the petitioner to have mixed socio-economic groups in their development, noting that this would be consistent with the new urbanism concept. Ms. Tepe added that the 2nd floor would be ADA accessible, and that they are aggressively marketing this project both in-town and out-of-town. In response to a question from Council Member Puzzello, Mr. Schalliol stated that this is a complete re-use of the building which qualifies for tax abatement. In response to a question from Council Member Kelly and a concern about the viability of the project, it was noted by the Petitioner that the project has been on the market for almost a year. In response to a question from Council Member Kirsits, Ms. Tepe noted that the entire building will be sprinkled. Council Member Puzzello made a motion, seconded by Council Member Dieter that Bill No. 07-95 be recommended favorably to Council. The motion passed. Bill No. 07-96: 5-Year Personal Property Tax Abatement for 2522 Tucker Drive: Bill No. 07-97. 5-Year Personal Property Tax Abatement for 1400 W. Riverside ©r.; Bill No, 07-98: 5-Year Personal Property Tax Abatement for 1217 & 1215 S. Walnut: Council Member Dieter called far a report on the three E8) 5-year personas property tax abatement requests requested by Steel Warehouse Company LLC for their properties located at 2922 Tucker Drive, 1400 W. Riverside Drive, and 1217 & 1215 S. Walnut. Community and Economic Deve{opment Committee August 13, 2{307 Page 5 Bill Schalliol of the Community and Economic Development reviewed his Department's report which concluded that each of the three (3} requested abatements meet the requirements of the local ordinance. Gerry Lerman made the formal presentation. He noted that: • The Riverside location would be a new investment of $1,500,000 to $3,000,000 far new equipment; and that 4-12 new jobs are projected to be created with payroll projected to be between $130,400 to $391,200 * The Walnut location would be a new investment of $400,OD0 to $2,500,000 for new equipment; and that 5-25 new jobs are projected to be created with payroll projected to be between $'{56,000 to $780,000 • The Tucker location would be a new investment of $2,500,000 to $5,000,000 for new equipment; and that 5 new jobs are projected to be created with payroll projected to be $156,000 • 481 jobs with a payroll of $22,707,500 would be retained Mr. Lerman stated that the new equipment is needed to the leveling and cutting of steel. The Riverside location will have new laser equipment and crane improvements; and the Walnut location will expand tooling, noting that this location is the former KoKoKu facility which had major environmental problems which they have addressed. There was no one from the public to speak in favor or in opposition to the three (3) Bills. Dr. Varner stated that the growing of local companies and taking over under-utilized buildings such as Lock Joint Tube and KoKoKu are excellent examples of what Mr. Lerman and his company is able to do with tax abatement assistance. Their ability to add quality new jobs and retrofitting old buildings is excellent where every one benefits. He stated that each of the requested abatements for Steel Warehouse Company LLC will help the economy grow and the assessments grow. He thanked Mr. Lerman for the many successes he and his companies have had over the years. Mr. Schalliol noted that each of the abatements heard this afternoon are all local companies who are seeking expansion. Council President Rouse noted that he agrees with Dr. Varner that Mr, Lerman and Steel Warehouse are shining examples of local companies who are "doing great things in the global market". Community and Economic Development Committee August 13, 2007 Page 6 Council Member Pfeifer noted that Mr. Lerman hires and gives people living in the neighborhoods near their operations the opportunity for jobs. The commended Mr. Lerman for this and wished him continued success. Council Member Kelly made a motion, seconded by Coucnil member Puzzello that Bill Nos. 96-Q7, 97-07 and 98-07 be recommended favorably to Council. The motion passed. INliscelianeous Business: Citizen Member Wolfson announced that the Community Forum will be holding a meeting an August 21St at 7 p.m. on tax abatement with Council Member Pfeifer being one of the speakers, and the County Council Member Rafael Morton will be the moderator. Dr. Varner noted that in today's Chicago Tribune there is an article entitled Fans Find Home Base addressing the "abundance of condos in South Bend". There being no further business to come before the Committee, Council Member Dieter adjourned the meeting at 4:47 p.m. Respectfully submitted, Council Member Derek D. Dieter, Chairperson Communit nomic " op ent Com it ee ~ ~~ ~ ~~ ~~ Attachments : _ ~ ~;