HomeMy WebLinkAbout04-23-12 Community & Economic DevelopmentCOMMUNITY & ECONOMIC DEVELOPMENT
APRIL 23, 2012
Committee Members Present:
Henry Davis, Jr., Gavin Ferlic, Karen White, Dr. Fred Ferlic
Other Council:
Tim Scott, Valerie Schey, Dr. David Varner, Oliver Davis, Derek Dieter
Citizen Member:
Patricia Crowley
Others Present:
Kathy Cekanski - Farrand, Gary Gilot, Kathy Hahn, Mark Neal, Shari Story- Miller,
Pam Meyer, Mike Mecham, Maury Murphy, Kyle Chamberlin, Don Inks, Rich
Deahl, Bob Strzelecki, Kevin Allen, Matt Edmonds, Dick Nussbaum, Rich
Carleton, Brian Baker, Murray Miller
Agenda: Bill No. 12 -31 — Real Property Tax Abatement - Lock Joint Tube
Bill No. 12 -32 — Personal Property Tax Abatement — Lock Joint
Tube
Bill No. 12 -33 — Real Property Tax Abatement — Tire Rack
Bill No. 12 -34 — Extending Housing Consortium
Bill No. 12 -35 — Ignition Park IT Tax Abatement
Bill No. 12 -27 — Amend South Bend Central Development Area
Proposed Use of Certified Tech Park Funds
With a full Committee and full Council in attendance Community & Economic
Development Chairperson Henry Davis began the meeting by combining the first
two items on the eight item agenda for purposes of public hearing. Both Bill No.
12 -31 and Bill No. 12 -32 are requests for abatement submitted by Lock Joint
Tube for real and personal property respectively. Both petitions are explained by
Don Inks along with representatives for Lock Join Tube, they being Rich Deahl
and Bob Strzelecki, would allow an investment of between 8 and 9 million dollars
by Lock Joint Tube in their plant at 1217 S. Walnut. According to the City's
Economic Development Department the project will result in nearly $700,000 in
taxes, while a bating just over $300,000. In addition 7 to 11 new jobs will be
created while 56 jobs are maintained. Both these bills were sent to Council with
a unanimous favorable recommendation after motions by Councilmember White
seconded by Councilmember Dr. Fred Ferlic.
The next agenda item Bill No. 12 -22 was a real property abatement petition filed
by Tire Rack for an expansion of their distribution facility on Vorden Dr. The
abatement would allow Tire Rack to go ahead with the construction of a 36,000
square foot building costing at least $6,500,000. In addition to an estimated
$240,000 in new taxes generated the project would create 30 new full time jobs.
Matt Edmonds from Tire Rack was present to respond to Council questions.
Based upon the facts presented along with the strong approval of the Economic
Development Department the Committee unanimously forwarded the bill
favorably after motions by Karen White and Dr. Ferlic.
The next item, Bill No. 12 -34, was presented by Pam Meyer, Director of
Community Development. This bill would approve the extension of an
agreement among government entities to continue the St. Joseph County
Housing Consortium. The Consortium exists so that more funds can be applied
for from HUD for housing activities than can be applied for if the three
governmental units (South Bend, Mishawaka, and St. Joseph County) applied
separately. Each legislative body must agree to act collectively while authorizing
the Mayors and Commissioners to continue the Housing Consortium for a period
of 3 more years. This seemingly routine approval request prompted spirited
commentary during the public portion. Mr. Joseph Shabazz claimed the City was
violating Sec. C -3 of HUD requirements that a portion of the money received
from the feds directly benefit low income people through jobs and contracts.
Pam Meyer refuted the violation claim citing the department's history of
compliance and accountability with all federal regulations. Though the response
was challenged Dr. Ferlic motioned the bill go to Council favorably. Citizen
member Pat Crowley offered a second and all affirmed.
The next agenda item Bill No. 12 -35 would approve a tax exemption for certain IT
equipment in the new data center under construction in Ignition Park. This
request from exemption is the first since the Council passed a resolution last year
supporting the exemption for investments in IT equipment. The resolution helped
the passage of a state law allowing the exemption so that Indiana could compete
for IT development investments that were going to surrounding states. This
particular exemption approval request items from the new data center in Ignition
Park. The total investments is $14.2 million of which $6 million is the equipment
eligible for exemption Mr. Rich Carlton making the presentation for the data
center said it was this exemption that tipped the scales in favor of investment
here. During the public portion Murray Miller said he remembered the data
center saying they would not seek abatement. Mr. Carlton and Don Inks both
stated the promise was not to apply for abatement on the land or building. In
other words $8.2 million in new value would be fully taxable. After Council follow -
up Karen White motioned for approval. Dr. Ferlic seconded and all approved.
The final agenda item was Bill No. 12 -27 an amendment to the use of Certified
Tech Park Funds. The presentation to Council was made by Don Inks. Don
provided for illustrative purposes a two page report on the use of Tech Park
Funds originally submitted and approved by the Redevelopment Commission.
(Attachment filed in the Office of the City Clerk) The report outlines the
background, current status, the uses of funds and the proposed changes in the
fund apportionment between Innovation and Ignition Parks each distinct parts of
the Tech Park. While Inks suggested the proposal would assure that neither
components would be shortchanged Chairperson Davis was not persuaded.
Chairperson Davis was not convinced that without a plan or prescription for the
use of funds, the needs of one would be sublimated to the desires of another.
The discussion that followed did not resolve the differences. Nonetheless on a
motion by Councilmember White seconded by Dr. Ferlic the bill supported by the
committee save Davis' dissent, was sent to Council favorably.
Under miscellaneous Councilmember Henry Davis asked for a report from the
Economic Development Department by May 14 covering the development of
what has become known as the Renaissance Center. Also under miscellaneous
citizen member James Lee was allowed to speak to the need of public
transportation as a critical component of economic development.
There being no further business to come before the committee at this time,
Chairperson Henry Davis, Jr., adjourned the meeting at 5:24 p.m.
Respectfully Submitted,
s��
Henry Davis, Jr., Chairperson
Community & Economic Development Committee