08-12-02 Community & Economic Development

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Q lommtttu* wort: Qtommuntty att4 a ottomtx litigloputot (Gommitat The August 12, 2002 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Karl King at 4:35 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Aranowski, Pfeifer, White, King, Kirsits, Varner, Coleman and Kelly; Community and Economic Development Jon Hunt, Michael Beitzinger, George Adler, Larry Magliozzi, Ben Goodwin, Eric J. Brown, Don O'Blenis, Kevin Resing, Josh Young, Ed Taft, Jim Sheetz, Matt Baslin, and Kathleen Cekanski-Farrand, Council Attorney. Council Member King noted that this Committee meeting was called to receive comments from the Building Trades representatives to address concerns of companies who request tax abatement and then use out of town and/or out of state contractors. Council Member King noted that he had received a letter from Mr. Eric J. Brown, President of the St. Joseph Valley Building and Construction Trades Council dated July 26, 2002 requesting the opportunity to address this concern as it may affect the proposed tax abatement for Tech Data Warehouse (copy attached). Council Member King further noted that the Council adopted the Declaratory Resolution for Tech Data Warehouse and that the Confirmatory Resolution (Bill No. 02-59) is scheduled for public hearing this evening at the Council meeting. Mr. Eric J. Brown, President of the St. Joseph Valley Building and Construction Trades Council, noted that he represents six (6) counties and 5,000 construction workers who are concerned about all tax abatements involving construction. Mr. Brown noted that one of the largest tax abatements granted was for Tire Rack which utilized no local contractors and only two (2) unions during its construction. He stated that union contractors will hire out of the union halls which have a"pool of trainer persons". Too often independent contractors are hired which many times results in the 11%of the payroll taxes never being paid. Mr. Brown stated that it is his understanding that Tach Data will be a $10 million project with approximately $2 1/2 million of that amount for payroll during construction. He voiced concern that persons living in this community may not benefit from those construction jobs. He stressed that the Common Council should be concerns about this and should look at all abatements involving construction jobs. He contended that Hispanics are being used as independent contractors and are being exploited. Mr. Don O'Blenis, the Business Manager for the Roofers Union Local #23 and Vice-President of the St. Joseph Valley Building and Construction Trades Council, noted that the local unions participate in many community projects such as "Christmas in April" where 350 building trade members volunteered their time. They also volunteer their time and materials for Pet Refuge, Real Services, Inc., etc with the average construction hourly rate of$20.00 per hour being volunteered for all building trade members who work on such projects for the community. Council Member King then asked Mr. Ben Goodwin who represents Tech Data to make a few remarks. Mr. Goodwin noted that his company has been located in the community for the past ten(10) years and has 130 employees. Their decision to stay in South Bend was a conscious decision with tax abatement being an important part of the process. He noted that last Thursday they signed a contract with Duke Realty Corporation and that several packages will be going out for bid in the