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HomeMy WebLinkAbout06-10-02 Community & Economic Development .. M Qommttt : ort: Qtommunitt ant( eronontir Detvtoptt1tent 'tommttteez The June 10, 2002 meeting of the Community and Economic Development Committee was called to order by its Chairperson Council Member Karl King at 4:45 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Coleman, Varner, White, Kirsits, Aranowski, King, Ujdak, and Kelly; Felicia Davis, Michael Beitzinger, Jon Hunt, Ann Kolata, Mr. Jim Van Houten, Terry Bland of the *out") Idizuti viGribune and Kathy Cekanski Farrand, Council Attorney. Council Member King noted that the first item on the agenda was to review Bill No. 29-02 which would establish a new revolving fund to be known as the Industrial Development Fund(#434). Ann Kolata made the presentation. She noted that she provided information on this proposed Bill two (2) weeks ago at the Committee meeting. The Bill would place money into the fund for long term financing programs addressed by CREED which could be used in the Studebaker Corridor area. In response to a question from Dr. Varner, Ms. Kolata stated that the increase in sales tax and income tax in the CREED District would be used for revitalization of the CREED area. She noted that the two (2) taxes affected are both state taxes. Fifteen (15) years, which is the maximum under the state statute is being recommended. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Bill No. 29-02 be recommended favorably to Council. The motion passed. The Committee then review Bill No. 37-02 which would appropriate $60,000 within the UDAG Fund (Fund#410) of the Department of Community and Economic Development for the purpose of providing predevelopment costs for potential development projects within the city. Mr. Hunt noted that this is a companion bill to the previous bill which the Council passed also addressing a$60,000 appropriation. The City Administration had tried to amend the first Bill to $ 120,000 after it was advertised and was advised by the Council Attorney that such an increase could not be legally done. The Administration therefore elected to go forward in two(2) separate $60,000 appropriation bills. Mr. Hunt noted that this appropriation plus $20,000 would be used to develop a City Plan within the Comprehensive Plan over the next several months. Larry Magliozzi would be provided regular updates to the Council and would be requesting input from the Council on this project. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Kirsits that Bill No. 37-02 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 38-02 which would appropriate $100,000 of the US Department of Housing and Urban Development Economic Development Initiative Grant Funds within Fund#209 for the redevelopment of the Studebaker-Oliver Project Area. Ann Kolata made the presentation. She noted that the monies would be used for demolition. The City does not receive any monies until it incurs the costs. Community and Economic Development Committee June 10, 2002 Page 2 Council Member King noted that the monies in effect would be HUD dollars. Dr. Varner questioned where the monies would be used and whether they are restricted to certain areas. Ann kolata stated that the monies are "earmarked" for the 2001/2002 Studebaker/Oliver Project area Following discussion, Council Member Ujdak made a motion, seconded by Council Member Kirsits that Bill No. 38-02 be recommended favorably to Council. The motion passed. The Committee then reviewed Substitute Bill No. 02-47 which is a proposed resolution requesting the City of South Bend Advisory Commission on Industrial Development to approve a "Community Revitalization and Enhancement District(CREED)"(copy attached). Ann Kolata made the presentation. She stated that she provided enlarged maps of the proposed area at the Committee meeting held two(2) weeks ago. The proposed plan would be submitted to the Advisory Commission on Industrial Development who will meet this Thursday at 8:30 a.m. The substitute bill includes the language requested by the Council Attorney on filing a list of the Commission members and Commission meeting minutes with the City Clerk. Following discussion, Council Member Vamer made a motion, seconded by Council Member Ujdak that Substitute Bill No. 02-47 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 02-50 which is a ten(10) year real property tax abatement for the property located at 4833 Ameritech Drive requested by the South Bend Redevelopment Commission for the benefit of JVH, Inc. Felicia Davis, Tax Abatement Specialist, reviewed her report dated June 4, 2002 (copy attached). JVH, Inc. proposed to build a 27,200 square foot building on 7.7 acres in the US 31 Industrial Park and then lease the building to MTE Sales&Rentals d/b/a MTE Truck&Trailer Service, MTE Leasing, Inc. and MTE Parts, Inc. The companies are being relocated from 1818 Sample Street due to the TJX project at Sample and Olive Streets. The projected cost of the project is$1,384,000 and will create three (3) new permanent jobs. The petitioner is seeking consideration as a special exception in light of the fact that 1. The City of South Bend is relocating the affected businesses to accommodate the TJX Company's new warehouse distribution center; 2. The companies' new site requires additional building modifications to meet the restrictive covenants of the area which adds to the overall costs of the building;and 3. The new location fits the City of South Bend's development plans for the area and will support the warehouse and distribution services already located within the area. Ms. Davis then submitted a copy of an e-mail correspondence from Pat McMahon of Project Future(copy attached) in favor of the proposed 10-year abatement. Mr. Jim VanHouten, President and owner of JVH, Inc., the petitioner, stated that they are very excited about their new location. A proposed site plan was shown to the Committee. Mr. VaIHouteri noted that his company provides services and sells parts for MACK and Volvo trucks. Community and Economic Development Committee June 10, 2002 Page 3 They have a partnership with a business in Gary, Indiana. The new signage for the location along the US 31 Industrial Park area will be an added benefit. Mr. VanHouten stated that tax abatement is a very important part of this venture especially for the next 3-5 years in light of the uncertainty of the market. Dr. Varner noted that there are two (2) potential expansion areas included. Mr. VanHouten stated that he wanted to have enough land to expand so that they would not become landlocked, and therefore have a potential to grow. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that Bill No. 02-50 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 02-51 which would rescinding Resolution No. 3090-02 which declared the real estate located at 237 North Michigan Street an economic revitalization area for purposes of a ten(10) year tax abatement for LaSalle Property Management Co.,Inc. Council Member Karl King made the presentation. Council Member King noted that the Council Attorney was requested to prepare this resolution when it was discussed at the last Committee meeting. In light of the LaSalle Property Management Co. Inc. request to withdraw their confirmatory resolution on this property, the Committee believed it was inappropriate to have a declaratory resolution on record for the project. Council Member King asked Mr. Beitzinger if the petitioner realizes that no building permits for the project could be pulled unless the petitioner filed a new petition and new declaratory and confirmatory resolutions. Mr. Beitzinger stated that he has been in contact with the Petitioner and they have been advised of these requirements, Council Member King also noted for the record that the agent for LaSalle Property Management Co., Inc. were also sent copies of the letter and proposed Bill No. 02-50 by the Council Attorney. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that Bill No. 02-51 be recommended favorably to Council. The motion passed. Under miscellaneous business, Council Member King noted that at the last Committee meeting Mr. Beitzinger introduced Felicia Davis and noted her availability to work on tax abatement projects. Council Member King further noted that it was not Mr. Beitzinger's intention to have the Council involved in the employment of Ms. Davis, but rather wanted to make sure that there was a proper introduction of Ms. Davis to the Council. Mr. Beitzinger stated that Ms. Davis would be involved in processing tax abatement requests and would be working on the tax abatement data base. There being no further business to come before the Committee, Council Member King adjourned the meeting at 5:10 p.m. Respectfully submitted, Council Member Karl King, Chairperson Community and Economic Committee KCF:kmf Attachments