The URL can be used to link to this page

Home My WebLink About02-25-08 Community and Economic Development~ ~-~' r '_ ,,41 i '..~~ ~~ Community and Economic Development Committee 2008 South Bend Common Council The February 25, 2008 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by its Vice- Chairperson Council Member Henry Davis, Jr., at 3:35 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Varner, Henry Davis, Jr., White, LaFountain, Rouse, Oliver Davis, Kirsits, and Puzzello; Mrs. Kopola, Martha Lewis, Robert Mathia, City Clerk John Voorde, Bill Schalliol, Mark Smith, Catherine Andres, David C. Rhoa, Jamie Loo of the South Bend Tribune and Kathleen Cekanski-Farrand, Council Attorney. Council Member Henry Davis, Jr. noted that the Committee members include Council Members Ann Puzzello, Karen L. White, Derek D. Dieter and himself as Vice- Chairperson. Citizen members of the Committee are Catherine Andres and Mark Smith. Council Member White made a motion, seconded by Council Member Henry Davis, Jr. that Bill Nos. 08-16 and 08-17 be heard together for purposes of public hearing. The motion passed. Bill No. 08-16: 4-Year Real Property Tax Abatement Request for 3445 William Richardson Drive for Jade Elephant Holding LLC (Lake Michigan Mailers, Inc.) Bill No. 08-17: 5-Year Personal Property Tax Abatement Request for for 3445 William Richardson Drive for Lake Michigan Mailers, Inc. (Jade Elephant Holding LLC Council Member Henry Davis, Jr. called for a report from Community and Economic Development on Bill Nos. 08-16 and 08-17. Bob Mathia, Economic Development Assistant Director reviewed both of his multi-page reports dated February 7, 2008 (copies attached). He noted that the petitioners are proposing to develop a 4.75 acre site for the construction of a 13,000 square foot mail assembly and document processing facility. It would also serve as a "hot site" for disaster recovery for Lake Michigan Mailers' document creation and mail assembly operations located in Kalamazoo, Michigan. The cost to construct the building is estimated to be $720,000 New equipment to be installed is estimated to be $1,216;873. This sum includes $66,000 for a vehicle. A final determination whether the vehicle is eligible will be made at the time that the petitioner submits their list of equipment to the assessor's officer upon completion of the project. If it is included taxes projected to be Community and Economic Development Committee February 25, 2008 Page 2 abated would be $74,138; with taxes being paid being $36,488. If it is not approved, the taxes projected to be abated would be $70,117; with $38,500. Five (5) new permanent jobs would be created and six (6) new part-time positions representing a projected new payroll of approximately $250,000. There are no employees currently in South Bend. The reports conclude that the petitioner meets the requirements for afive-year personal property tax abatement under Section 2-84.2 addressing "Tangible Personal Property Tax Abatement under the South Bend Municipal Code; and the provisions for afour- year real property tax abatement under Section 2-82 addressing "Industrial Development, City-Wide General Standards under the South Bend Municipal Code. The Council Attorney noted that she and Mr. Mathia talked about the vehicle listed in the personal property tax abatement request. Since there is no governing law on this and that the assessor's office will determine whether it qualifies or not, it was her recommendation to go forward with it as presented. The Petitioner, Mr. David C. Rhoa, President of Lake Michigan Mailers, Inc. with offices at 3777 Sky King Blvd., Kalamazoo, Michigan 49009 then addressed the Committee. Mr. Rhoa presented aone-page drawing of the proposed building. In response to inquiries from Council Members Puzzello and Varner, Mr. Rhoa noted that the vehicle in question is a cargo van/truck capable of pulling in excess of 10,000 pounds. Mr. Rhoa stated that the business is family-owned since 1977. He Is 2nd generation. His company looked for two (2) years in Michigan, Ohio and Indiana. Mr. Rhoa choice South Bend because of: • Postal service is highly rated • Infra-structure of the city facilities easy transportation access • Easy accessibility on the northwest part of the City of South Bend • Diverse market • Proximity to Kalamazoo, MI Mr. Rhoa stated that they service 850 companies. "Hot Site" capabilities are available in the event of a disaster. In response to a question from Dr. Varner, Mr. Rhoa stated that approximately one-third (1/3) of their business is document processing (data) which is the fastest growing component. In response to a question from Council Member Henry Davis, Jr., Mr. Rhoa, stated that in Kalamazoo they had 50 employees last week and as of today it is up to 52. In South Bend they project to create six (6) part-time and five (5) full-time positions. Community and Economic Development Committee February 25, 2008 Page 3 In response to a question from Council Member Kirsits, Mr. Rhoa stated that they do plan to link into MetroNet and that the IT personnel is very excited about that in particular. Council President Rouse noted that 1St District Council Member Dieter, who could not be present for the meeting< has worked with Mr. Rhoa and is very excited that he and his company have selected South Bend. Craig Bennett of 3417 Oakcrest Drive in South Bend stated that this is an "excellent use of tax abatement. Council Member White made a motion, seconded by Council Member Henry Davis, Jr., that Bill Nos. 08-16 and 08-17 be recommended favorably to Council. The motion passed. Miscellaneous. Business: Council Member White inquired about the status of the tax abatements under review and the position statement on tax abatement. The Council Attorney noted that several of the nine (9) companies who were sent letters by Council Member Dieter asked for extensions. The letters notified each company that they had been determined by the City Administration that they were preliminarily determined to be in non-compliance. Each was given to February 22"d to respond. Some have been granted additional time. Five (5) companies have responded thus far with all of that information being compiled in the Office of the City Clerk. Council Member Dieter will be reviewing the submitted documentation and it will be available for review. With regard to the position statement, Council Member Dieter has received some additional comments and is open to receiving any additional comments from~the Council. Council Member Henry Davis, Jr. noted that both citizen members were present for the meeting. There being no further business to come before the Committee, Council Member Henry Davis, Jr. adjourned the meeting at 3:54 p.m. ~-Re pep fully bmitted, ~~,~ ~ ~" -._. , C unc~l Mem er my Davis, Jr., Vice-Chairperson Commune y and Economic Development Committee Attachments Community and Economic Development Committee February 25, 2008 Page 3 In response to a question from Council Member Kirsits, Mr. Rhoa stated that they do plan to link into MetroNet and that the IT personnel is very excited about that in particular. Council President Rouse noted that 1ST District Council Member Dieter, who could not be present for the meeting< has worked with Mr. Rhoa and is very excited that he and his company have selected South Bend. Craig Bennett of 3417 Oakcrest Drive in South Bend stated that this is an "excellent use of tax abatement. Council Member White made a motion, seconded by Council Member Henry Davis, Jr., that Bill Nos. 08-16 and 08-17 be recommended favorably to Council. The motion passed. Miscellaneous Business: Council Member White inquired about the status of the tax abatements under review and the position statement on tax abatement. The Council Attorney noted that several of the nine (9) companies who were sent letters by Council Member Dieter asked for extensions. The letters notified each company that they had been determined by the City Administration that they were preliminarily determined to be in non-compliance. Each was given to February 22"d to respond. Some have been granted additional time. Five (5) companies have responded thus far with all of that information being compiled in the Office of the City Clerk. Council Member Dieter will be reviewing the submitted documentation and it will be available for review. With regard to the position statement, Council Member Dieter has received some additional comments and is open to receiving any additional comments from~the Council. Council Member Henry Davis, Jr. noted that both citizen members were present for the meeting. There being no further business to come before the Committee, Council Member Henry Davis, Jr. adjourned the meeting at 3:54 p.m. Respectfully submitted, Council Member Henry Davis, Jr., Vice-Chairperson Community and Economic Development Committee Attachments