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The September 9, 2002 meeting of the Community and Economic Development Committee was
called to order by Council Member Al `Buddy" Kirsits at 4:08 p.m. in the Council Informal
Meeting Room. He noted that a quorum of the Committee was not present.
Persons in attendance included Council Members Varner, White, Coleman, Aranowski, Kirsits,
and Kelly; Michael Beitzinger, Director of Economic Development Jon Hunt, Jim Van Houten,
Scott Johnston, Building Commissioner Don Fozo, Ann E. Kolata, Richard A. Rupsis, Sr.,
Judith A. Eck, Terry Bland of the rpoutb tit( Zribunt and Kathleen Cekanski-Farrand,
Council Attorney.
Council Member Kirsits noted that the first item on the agenda was to review Bill No. 02-66 which
is a proposed resolution reconfirming the adoption of a declaratory resolution as an economic
revitalization area for purposes of a ten (10) year real property tax abatement for JVH, Inc.,
designating a new address of 3152 Mary Court.
Mr. Beitzinger reviewed his report dated September 4, 2002 (copy attached). He noted that the
petitioner JVH, Inc. is doing business as MTE Truck and Trailer Services. The Council approved
a real property tax abatement for the petitioner on June 24, 2002 for the property located at 4833
Ameritech Drive. However due to unforeseen additional expenses the company has decided to
locate their facility to 3152 Mary Court near the New Energy ethanol plant. The proposed
resolution would transfer their previously granted tax abatement to the new site. Mr. Beitzinger
further noted that this type of request has been granted in the past with the State Board of Tax
Commissioners providing guidance in the drafting of the resolution.
Mr. Jim Van Houten, President of JVH, Inc. then made a presentation. He noted that he worked
closely with Mr. Beitzinger on this measure who in turn worked with the City Attorney's Office
and the Council Attorney prior to today's public hearing.
Council Member Kirsits thanked everyone for the information and noted that because a quorum
was not present that the Committee would not take any formal action.
Council Member Kirsits then called for a presentation on Bill No. 02-67 which is a five (5) year
residential real property tax abatement request for ROJO Development for the property located at
4018,4026 and 4034 Cherry Pointe Drive.
Economic Development Assistant Director Michael Beitzinger then reviewed his September 3,
2002 report (copy attached). The project continues the Harvest Pointe Subdivision development.
Three (3) ranch style villas will be built on three (3) lots ranging in size from 1,500 to 1,800
square feet. The average cost will be $130,000 which does not include the lot price. Mr.
Beitzinger concluded his remarks by noting that the Petitioner meets the qualifications for a five(5)
year residential tax abatement under § 2-77.1 of the South Bend Municipal Code addressing
"Single Family Real Property Abatement".
Scott Johnston made the presentation on behalf of ROJO Development, Inc. He noted that the 1st
phase has been completed and that they are now embarking into Phase II. He noted that residential
tax abatement has been a"great sales tool".
Council Member Coleman inquired how many lots are in Phase II. Mr. Johnston stated that there
Community and Economic Development Committee
September 9, 2002
Page 2
are seventeen(17) lots with fourteen(14) lots already being designated.
Dr. Varner noted that there has almost been five years since the 1st abatement was issued, and he
urged the Petitioner to make sure that those receiving the initial residential tax abatement are aware
that their tax status will change.
Council Member Kirsits thanked Mr. Johnston for his presentation and noted that because a
quorum was not present that the Committee would not take any formal action. A formal vote
would be taken at tonight's Common Council meeting.
Council Member Kirsits then called for a presentation on Bill No. 02-68 which is a three (3) year
real property tax abatement for RJR 1 LLC for the property located at 3820 William Richardson
Drive and Bill No. 02-69 which is a five (5) year personal property tax abatement request for RJR
1 LLC for the property located at 3820 William Richardson Drive.
Mr. Beitzinger then reviewed his September 4,2002 report(copy attached). The petitioner is a real
estate holding company and FDC Graphic Films is the operating entity. FDC converts pressure
sensitive films for the sign/graphics industry. The petitioner plans to construct a 13,000 square
foot addition and FDC will purchase various new vinyl converting machines. The building cost
will be $425,000 and the equipment cost will be $200,00. Four (4) new permanent jobs will be
created in the 1st year and twelve (12) new jobs are projected to be created for a three-year period.
38 current jobs will be maintained. Mr. Beitzinger concluded his remarks by noting that the
Petitioner meed the applicable provisions of the South Bend Municipal Code, namely § 2-82 and §
2-84.2 for the requested tax abatements.
Richard A. Rupsis, Sr. and Judith A. Eck, members of RJR 1 LLC then made a presentation
requesting the real and personal tax abatements for their operations. They noted that seven (7)
years ago they re-located their operations from Chicago, and they are glad to now be putting on an
addition to their building. Their addition was delayed in light of 9/11, however now they have
decided to go forward with the City's assistance.
In response to a question from Council Member Kirsits, Mr. Rupsis noted that the pressure
sensitive films are sold and distributed throughout the United States.
Council Member Kirsits thanked Mr. Rupsis and Ms. Eck for their presentation and noted that
because a quorum was not present that the Committee would not take any formal action. A formal
vote would be taken at tonight's Common Council meeting.
Council Member Kirsits then called for a presentation on Bill No. 02-70 which would authorize the
Mayor to submit an application to the Indiana Development Finance Authority for a grant from the
Petroleum Remediation Grant Incentive Program.
Senior Redevelopment Specialist Ann E. Kolata made the presentation. She noted that the 2001
Indiana Legislature authorized the PRGI program for remediation of petroleum contamination in
brownfield sites. The maximum grant is$250,000 and may only be used for a single project. The
City's application will focus on the southern portion of Buildings 86 and 93 at the former Allied
Products Stamping plant. She further noted that a total of $9 million is set aside in a petroleum
trust fund. The application was submitted last Thursday and she will keep the Council updated on
the application status.
Community and Economic Development Committee
September 9, 2002
Page 3
Council Member Kirsits thanked Ms. Kolata for her presentation and noted that because a quorum
was not present that the Committee would not take any formal action.
There being no further business to come before the Committee, Council Member Kirsits adjourned
the meeting at 4:27 p.m.
Respectfully submitted,
Council Member Al`Buddy"Kirsits
Community and Economic Development Committee Member
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