HomeMy WebLinkAbout02-14-11 Community & Economic Development ' COMMUNITY AND ECONOMIC DEVELOPMENT 2-14-11
Committee Members Present: Tim Rouse; Ann Puzzello; Henry Davis; Karen White
Other Council Members Present: Derek Dieter; Tom LaFountain; David Varner; Oliver
Davis;AI Kirsits
Others Present: Stan Blakey; Bob Mathia; Tom Price; Pat McMahon;
Mikki Dobski; Mayor Stephen Luecke; Chuck Leone;
Don Inks; Paui Phair; Gary Gilot; Don Jezeirski
Agenda: Biil No. 11-09- Personal Property Tax Abatement South
Bend Gear .
Bill No. 11-10—Real 8 Yr. Tax Abatement Oliver Plow
Ct.
Bill No. 11-11 —Confirming Tax Abatement—McCormick
Update- Enterprise Info Technology Equipment
Bill No. 86-10—Affirmative Action
Bill No. 11-09
This is a personal property abatement petition made by South Bend Gear. South Bend Gear is a
new company wanting to invest over$15.6 million to make engine gears for the heavy truck
industry. Bob Mathia of the Community& Economic Development Department reported the
particulars noting the petitioner had met all qualifying criteria. South Bend Gear plans to create
12 new jobs the first year with a total of 26 by the end of the second. Bob also noted the
Redevelopment commission voted to approve the petition.
Stan Blakey, General Manager, Souih Bend Gear was present to elaborate in response to any
questions.
Pat McMahon, Director, Project Future spoke in favor of the petition.
Councilmember Rouse called for a recommendation after brief discussion. Councilmember
Henry Davis made a motion to recommend favorably. Councilmember White seconded and all
agreed.
Bill No. 11-10
Chairperson Rouse asked Bob Mathia from Economic Development to report on their analysis of
the petition. Bob said the petitioner had met the criteria for an 8 year real property abatement.
Oliver Partners intends to invest in the purchase of 4.4 acres from the city to construct a 41,000
sq.ft.warehouse/distribution facility for nearly 2 million dolfars. The project would retain 10 jobs
and create 2 more. Bob also reported that the Redevelopment commission had approved the
petition.
Paul Phair,from the Holladay Corporation and Don Jezeirski were present to elaborate on the
nature and scope of their investment.
Councilmember Henry Davis asked how this project happened. In a larger sense he asked how
any pro}ect like this comes to pass. The Mayor responded saying this was the result of a long-
term effort to encourage the expansion. While their was no specific ad campaign per se; the city
continually works with developers.
Councilmember Rouse heard a motion to recommend favorably, from Councilmember White.
Councilmember Puzzello followed with a second and all affirmed.
Bill No. 11-11
This resolution filed by. McCormick and Co. would reconfirm a personal property abatement
granted by the Council on January 24. Since then McCormick has considered increasing their
investment from $1.4 million to $8.1 million. The increase results from the possible transfer of
manufacturing to South Bend from another facility. Up to 14 new jobs would be created in
addition to retention of present jobs.
Councilmember Puzzello asked if these would be hires from South Bend. It was reiterated that
McCormick works with Work One for recruitment.
Councilmember White asked when the decision to transfer would be made. The response from
McCormick reps.was 2012.
With that Councilmember Puzzello recommended favorably. Councilmember White seconded
and all affirmed.
*Preliminary Update on Enterprise Information Technology Equipment
At Chairperson Rouse's request, Pat McMahon the Director of Project Future presented the
update.
Pat McMahon started by saying data center companies look at 3 main criteria in their site
selection process. They are: 1.) Power the availability of abundant, reliable, economical electrical
power. 2.) Connectivity— major data lines pass through here as well as our own local carrier—
Metronet. 3.) Educate Workforce—our universities are a plus.
Don Inks weighed in asking the Council to adopt a"friendly" resolution to create a welcoming
climate for potential investors. (Attachment#2)
Councilmember Dieter asked how many data centers have been lost due to property taxes.
McMahon responded that 5-6 projects have been lost because of property taxes. McMahon then
stressed the importance of a welcoming pro-exemption resolution that would allow competitive
recruitment of data centers.
Both Henry Davis and AI Kirsits asked about the city's competitive posture. Again McMahon
underlined the importance of sending positive signals.
Bill No. 86-10
Chairperson Rouse asked the Council to continue consideration of this biil until April 14, 2011.
Councilmember White so moved. Chairperson Rouse followed with a second. All agreed.
Under miscellaneous Councilmember Oliver Davis asked about"claw backs"from breaks given to
AJ Wright. Bob Mathia assured the process was continuing.
There being no further business to come before the committee at this time, Chairperson Rouse
adjourned the meeting at 5:15 p.m.
Respectfully Submitted,
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Timothy A. Rouse,� airperson
Community and conomic Development