HomeMy WebLinkAbout04-25-05 Community & Economic Development Colima and Economic Dedeloument Committee 2005 South Bend Common Councit
The April 25, 2005, meeting of the Commun and�onel Development t4 39 p.mC n the Council
called to order by its Chairperson, Council Member
Informal Meeting Room.
Persons in attendance included: Council Members Dieter, Pfeifer, Kelly, Puzzello, Varner,
Kuspa, Rouse, and White; Citizen Member Martha Lewis, Mayor Stephen J. Luecke,
Sharon
Kendall, Executive Director of the Department of Community and Economic Development;
Economic Development Specialist Tedd Schaffer, Public Works Director Gary Gilot, Rita
Kopola, City Clerk John Voorde, Economic Development Specialist Andy Laurent, Shirley
Garratty,Mark Harman,Ron Milligan and Kathleen Cekanski-Farrand,Council Attorney.
Council Member Puzzello noted that the committee consists of Citizen Member Martha Lewis,
Council Members Kuspa,Kelly,Kirsits and herse lf.
Council Member Pn7zello called for a presentation on Bill No. 23-05 which would a proprime
$200,000 of EPA brownfield grant funds within Fund # 209 for the purpose of
brownfield assessment and cleanup activities.
Andy Laurent, an Economic Development Specialist made the presentation. He noted that the
funds would be used to address and remediate achlorinated oted that bids are due located at
from
former South Bend Stamping Plant property. He
Friday.
Council member Kelly made a motion, seconded by Council Member Kuspa that Bill No. 23-05
be recommended favorably to Council. The motion passed.
Council Member Puzzello noted that the Council has received correspondence from the
petitioner on Bill No. 5-38 who is requesting that the Bill be struck from this evening's agenda.
Council Member Puzzello then called for a presentation on Bill No. 5-43 which is a ten(10)year
real property tax abatement request for the property located at lot 5 in the US 31 Industrial Park,
Phase II,which is being requested by Stanz Cheese Company,Inc.,d/b/a Stanz Foodservice,Inc.
Economic Development Specialist Tedd Schaffer reviewed his report dated April 18,2005 (copy
attached). He noted that the petitioner uses its warehouse and distribution facility to store The dry
and frozen goods for customers throughout northern Indiana
petitioner plans to build a 100,000 square foot building on 19.58 acres which will have a project
cost between$6 and$8 million. 172 full-time jobs would be maintained. t tax under
The
bat concluded
that the petitioner meets the qualifications for a ten(10) year real ro pe rty
Section 2-82 of the SBMC addressing"industrial development city wide".
Richard Deahl, at attorney with Barnes & Thornburg with offices located in downtown South
Bend made the formal presentation. He noted that Shirley Garratty, the Controller and Mark
Harman,the Company President were present and could answer any questions which the Council
April 25,2005 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 1-
may have. Mr. Deahl stated that they hope to locate just south of their current location. They
are currently land-locked and the current location cannot support the growth which they are
projecting. Between$6-$8 million will be spent on the new facility.
No one from the public spoke in favor of the Bill. Mr. Ron Milligan of 25301 Adams Road
spoke against the Bill. He noted that this is an established business and a fine company. He
believes the core issue is giving back to the community, civic duty and a sense of responsibility.
Stanz should pay their fair share of taxes. Mr. Milligan stated that he is deeply disturbed by the
current course of events of giving tax abatements for re-locations. He stated that growth means
costs.
In rebuttal, Executive Director of the Department of Economic Development Sharon Kendall
with offices on the 12th floor of the County-City Building stated that she has met with Mr.
Harman. From her experience of working at the state and local level in economic development
that Stanz is truly land-locked. She stated that it is very important to retain these jobs so that
they are not moved to Michigan. It is her understanding that they are currently working with
realtors with regard to their current facility.
Mr. Deahl added that in order to progress they need a facility which can expand. He stated that
the $6 to $8 million which is projected to be spent, is a significant investment in the community.
They are purchasing a track of land which is 19 1/2 acres which currently generates less than
$10,000 per year in taxes. Over the 10 years of the abatement, they will pay over $900,000 in
taxes with the abatement. This would also free up their current building for another business.
Council Member Kelly stated that when Accurite left, the Common Council revoked their
abatement,with that being 1. of 2 companies who have had their abatement revoked.
The Council Attorney noted that the April 18, 2005 report on this project includes a 1-page
summary entitled "Public Benefit Points Summary" which sets forth the points earned by the
petitioner in seven (7) detailed categories. The Petitioner meets the standards required by local
ordinance, and for the Council to look the other way that they must have specific reasons. To do
otherwise may result in a decision which could be determined to be arbitrary and capricious.
Council Member Kelly then made a motion, seconded by Council. Member Kuspa that Bill No.
05-43 be recommended favorably to Council. The motion passed.
Council Member Kuspa added that Stanz is truly land-locked at their current location.
Council Member Puzzello then called for a presentation on Bill No. 5-44 which is a five (5)year
residential real property tax abatement request for the property located at 5635 Miami Street for
Ronald L. Peitz.
Tedd Schaffer reviewed his report dated April 19, 2005 (copy attached). He noted that Mr. Peitz
plans to build a 2,600 square foot house at an estimate cost of$300,000. His report concluded
that the petitioner meets the qualifications for a 5-year residential real property tax abatement
under Section 2-77.1 of the SBMC addressing"single family real property abatement".
April 25,2005 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 2-
Council Member Puzzello noted that in light of the Petitioner not being present, that the Bill
would go to the full Council without recommendation.
There being no further business to come before the Committee, Council Member Puzzello
adjourned the meeting at 4:55 p.m.
Res s-ctfully sub i tted, /
blot/A
it Member Ann�� ;,ello, Chairperson
Community and Economic Development Committee
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Attachments
April 25,2005 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 3-