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HomeMy WebLinkAbout09-09-02 Community & Economic Development tttommtttt Attpat ctomtttunttt attr etonomir tontinittet 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 KCF:kmf Attachments