HomeMy WebLinkAbout01-10-05 Community & Economic Development I - ' Community and Economic Develeument Committee
2005 South Bend Common Council
The January 10, 2005 meeting of the Community and Economic Development Committee was
called to order by its Chairperson, Council Member Roland Kelly at 3:37 p.m. in the Council
Informal Meeting Room.
Persons in attendance included Council Members Dieter, Pfeifer, Kelly, Puz7ello, Varner,
Kuspa, Kirsits and Rouse; Director of Public Works Gary Gilot, Executive Director of
Community and Economic Development Sharon Kendall, Economic Development Specialist
Andy Laurent, Economic Development Specialist Tedd Schaffer, Senior Redevelopment
Specialist Ann E. Kolata, Alan Feldbaum, Tedd Schaffer, Rita Kopala, City Clerk John Voorde,
Richard J. Deahl and Council Attorney Kathleen Cekanski-Farrand.
Council Member Kelly noted that the first item on the agenda was to review Substitute Bill No.
85-09 which would appropriate $40,100 of Indiana Development Finance Authority grant funds
Within Fund#210 for the purpose of environmental investigation of 700 South Lafayette Street.
Economic Development Specialist Andy Laurent made the presentation. The property in
question is the Design Packaging, Inc. property. The funds are from the state's Brownfields Site
Assessment Grant.
Council Member Kirsits then made a motion, seconded by Council Member Kuspa that
Substitute Bill No. 85-04 be recommended favorably to Council. The motion passed.
Council Member Kelly then called for a presentation on Substitute Bill No. 93-04 which would
authorize the issuance of bonds to evidence a loan from the Environmental Remediation
Revolving Load Fund and pledging a portion of the City's COTT tax revenues to secure such
bonds.
Senior Redevelopment Specialist Ann E. Kolata made the presentation. The Bill would allow
the City to borrow $750,000 for extra environmental costs at the Erskine Common site. The
City qualifies for a 20% forgiveness or $150,000 if they meet certain economic development
objectives. Anchor will be responsible for $300,000; and the City will be responsible for
$300,000 with COLT dollars being the anticipated funding source. Interest will be at 2.5% for a
maximum of 9 years and 11 months. The Indiana Development Finance Authority (IDFA) has
approved this transaction, subject to Common Council approval. Draft agreements have been
prepared with the transaction to take place on January 12, 2005. Ms. Kolata noted that Gary
Gilot and Alan Feldbaum are present to address any question which the Council may have.
In response to a question from Council Member Kirsits,Mr. Gilot noted that the area needs to be
reshaped with a liner being installed and the parking lot sealing the site. The $750,000 will act
as a corrective action plan which will be good for economy and good for the environment.
Ms. Kolata added that the economic development goals include the creation of 430,000 square
feet of development as well as the creation of 400 jobs.
Community and Economic Development Committee of the 2005 South Bend Common Council -page 1-
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Council Member Kirsits then made a motion, seconded by Council Member Kuspa that
Substitute Bill No. 93-04 be recommended favorably to Council. The motion passed.
Council Member Kelly then called for a presentation on Bill No. 05-01 which is a five (5) year
personal property tax abatement request for the property located at 4050 Ralph Jones Drive for
Fulton Industries,Inc.
Economic Development Specialist Tedd Schaffer then reviewed his report dated December 20,
2004 (copy attached). He noted that the cover sheet is incorrect and that the area is located in
the Airport Development Area. The report concluded that the request for a five(5)year personal
property tax abatement meets the requirements addressed in Sec. 2-84.2 of the South Bend
Municipal Code addressing"tangible personal property tax abatement".
Richard J. Deahl, an attorney with offices located at 100 North Michigan in downtown South
Bend then made the presentation on behalf of Fulton Industries, Inc. Mr. Deahl noted that the
petitioner works in the high-tech automotive and non-automotive industries. They currently
have operations in Rochester and in Illinois. Their precision machine shop manufactures
components for engines and power-trains. The new equipment is estimated to cost between $5.2
and $8.2 million. The petitioner anticipates creating between 14-18 new, permanent jobs the
first year with a payroll of$630,000 to$810,000.
In response to a question from Council Member Kirsits,Mr. Deahl noted that the building is the
site of the former Busk Brothers storage center.
Council Member Kirsits then made a motion, seconded by Council Member Kuspa that
Substitute Bill No. 05-01 be recommended favorably to Council. The motion passed.
There being no further business to come before the Committee, Council Member Kelly
adjourned the meeting at 3:49 p.m.
Respectfully submitted,
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Member Roland Kel y Chairperson
Community and Economic Development Committee
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Attachments
Community and Economic Development Committee of the 2005 South Bend Common Council -page 2-