HomeMy WebLinkAbout08-12-02 Community & Economic Development Q
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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
greater Community and Economic Development Committee
August 12, 2002
Page 2
South Bend area, with the general contract yet to go out. Mr. Goodwin stated that his company
will use South Bend area contractors where possible, noting that his company also has a duty to
its shareholders to make sure that qualified workers and products are maintained.
Council Member King noted that the tax abatement process is a two-way street of communication
in the area of quality development in our community.
Council Member Coleman asked that the Building Trades representatives introduce themselves for
the benefit of the Committee. The following representatives then introduced themselves: Kevin
Resing of the Cement Masons, Ed Taft of the Electrians Union, Jim Sheetz of the Plumbers
Union, Don O'Blenis of Roofers Union#23, and Matt Baslin of the Plumbers Union.
Council Member Pfeifer asked Mr. .Goodwin if he would be willing to give a report to the
Common Council on where the contractors are coming from during the course of the construction.
Mr. Goodwin stated that he would.
Under miscellaneous business, Council Member King asked for a brief progress report on the
proposed City Development Plan.
Larry Magliozzi noted that at each of the upcoming Community and Economic Development
Committee meetings he would like to provide material and give a brief update. He then provided
copies of Report# 1 Census 2000 "South Bend compared to St. Joseph County and Midwestern,
Central Cities of Similar Size"(copy attached).
Council Member King suggested that in light of the lateness of the hour that the material should be
reviewed so that it could be discussed at the August 26th Committee meeting. He further
suggested that fifteen(15) minutes be earmarked for updates at the next meeting on this topic.
Mr. Adler noted that the data is based on 33 complete census tracks and 2 partial census tracks in
the southwest.
Council Member King noted that he has begun drafting the proposed tax abatement ordinance
which he hopes to have to the Council Attorney for legal review by mid to late September and then
conceptually before the Committee by late October or November.
There being no further business to come before the Committee, Council Member King adjourned
the meeting at 4:55 pm.
Respectfully submitted,
Council Member Karl King, Chairperson
Community and Economic Development Committee
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