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HomeMy WebLinkAbout01-27-03 Community & Economic Development tommttt*e Attport Continuity anti eco .omiu ifilzinionntnt tommittU The January 27, 2003 meeting of the Community and Economic Development Committee was called to order by its Vice- Chairperson, Council Member Roland Kelly at 4:40 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Varner, Kirsits, Aranowski, Pfeifer, Kelly, Coleman, Kuspa and White; Community & Economic Development Director Jon Hunt, Michael Beitzinger, Robert Hunt, Michael Urbanski, James Rans, Mary Kate Stikel, Terry Bland of the b Ntnti t ibunt and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly noted that he is chairing the meeting in the absence of Council Member King. Mr. Beitinger then introduced Mary Kate Stikel, a Notre Dame student who is interning in the Community&Economic Development Division. Council Member Kelly noted that a request to hear Bill No. 03-11 first has been made due to a scheduling conflict of the presenter. Bill No. 03-11 is a five (5) year residential real property tax abatement request for South Bend Heritage Foundation for the properties located at 525 St. Vincent,613 Corby and 905 and 907 St. Louis Street. Mr. Michael Beitzinger, Economic Development Specialist, then reviewed his report dated January 22, 2003 (copy attached). Mr. Beitzinger stated that the petitioner proposes to construct four (4) homes ranging in size from 1,036 to 1,300 square feet. The average cost for each home is projected to be$125,000 for a total project cost of approximately $500,000. The report concluded that the petitioner meets the qualifications for a five-year residential tax abatement under Sec. 2- 77.1 addressing single family real property tax abatement of the South Bend Municipal Code. Mr. Michael Urbanski of Garden Homes, the contractor for the project, then addressed the Committee. Mr. Urbanski stated that they are attempting to build in bigger groups of parcels, rather than in a piece meal fashion. In response to a question from the Council Attorney with regard to the value of the proposed homes, noting that the petition lists the value at$97,000 and the report lists them at$ 125,000, Mr. Urbanski stated that the$125,000 includes the cost of the land. Following discussion, Dr. Varner made a motion, seconded by Council Member Kuspa, that Bill No. 03-11 be recommended favorably to Council. The motion passed. Council Member Kelly congratulated Mr. Urbanski on the proposed construction project, noting that there has been a substantial increase in new home construction within the city in the past few years. Council Member Kelly then called for a report on Bill No. 03-10 which is a five-year residential real property tax abatement request for the properties located at 3432, 3431, 3423, 3409, 3359, 3335, 3230, 3352, 3344, and 3424 Topsfield Road; 3418, 3426, 3434, 3440 and 3433 Meadow Hill Drive;and 3374 Deer Lake Drive. Mr. Michael Beitzinger, Economic Development Specialist, then reviewed his report dated January 22, 2003 (copy attached). Mr. Beitzinger stated that the Cogncil granted a five-year residential tax abatement to Topsfield Road Development Corporation on April 27, 1998. Twenty-nine(29) lots • • Community and Economic Development Committee January 27, 2003 Page 2 were developed. That tax abatement will expire in April,2003, and the petition before the Council is seeking abatement consideration for the sixteen(16) remaining lots. The report concluded that the petitioner meets the qualifications for a five-year residential tax abatement under Sec. 2-77.1 addressing single family real property tax abatement of the South Bend Municipal Code. Mr. James R. Rans, President of the Topsfield Road Development Corporation, then made a presentation. Mr. Rans stated that the tax abatement has helped in this high-end residential subdivision. The project started with forty-nine (49) lots, with thirty-three (33) lots having been have a minimum of 2/3's acre each and homes sixteen (16) remaining lots will h d. The six develope ( ) g with a minimum of 2,900 square feet. The average value of each home will be S400,000 for a total project cost of approximately$6.4 million. Council Member Kelly noted that this project is just another example of showing that tax abatement works to create new development in the city. He stated that this subdivision is a"definite plus" to the city. Dr. Varner inquired whether Mr. Beitzinger has received directives on how the new state tax program will be handled. Mr. Beitzinger stated that $12,000 will be permitted for three (3) years for a total of$36,000. He noted that it is difficult to determine market value and that the software was delivered late last year for the assessors. He stated that they are currently in "limbo", but would keep the Council updated as new information is received. Dr. Varner stated that this is a good benefit to the city and a good development. Dr. Varner then made a motion, seconded by Council Member Kuspa that Bill No. 03-10 be recommended favorably to Council. The motion passed. Under miscellaneous business, Mr. Beitzinger noted that Mr. Daniel T. Ceglia, Chief Operating Officer for Advantage Puck Technologies has sent his apologies to the Council for not appearing at the last Council meeting on the confirmatory tax abatement resolution. They were in the middle of getting machinery shipped at that time. Lorraine Ryder will be here this evening for the company, with the Council Attorney and the City Clerk having the power of attorney authorizing her representation on behalf of the petitioner. There being no further business to come before the Committee, Council Member King adjourned the meeting at 4:55 p.m. Respectfully submitted, Council Member Roland Kelly, Vice-Chairperson Community and Economic Development Committee KCF:kmf Attachments