HomeMy WebLinkAbout08-11-03 Committee of the Whole r
COMMITTEE OF THE WHOLE Monday,August 11,2003
Subject: Compliance with Statement of Benefits Form CF-1
3:30-3:45 p.m. -JRS Enterprises(AAA Tool&Die)
3:45-4:00 p.m.-Masterbilt,Inc.
Members in Attendance:
Karl King-Chairperson James Aranowski Charlotte Pfeifer
Roland Kelly David Varner Ervin Kuspa
Karen White Al Kirsits Sean Coleman
Kathleen Cekanski-Farrand-Council Attorney
Others in Attendance:
Terry Bland- South Bend Tribune
Michael Beitzinger-Economic Development
Representatives-JRS Enterprises(AAA Tool&Die)-John Shirrell
Representatives-Masterbilt, Inc.-Robert Michalek,and Mike Wojtysiak
Committee of the Whole Chairperson,Karl King welcomed all in attendance and called the
meeting to order at 3:30 p.m.. Council Member King stated the purpose of the meeting by saying
that the meeting is an"informal information gathering session," to review the progress of the two
companies in comparison to the CF-1 Tax Abatement Forms information that existed at the time of
the awarded abatements, and the status of those statements today, and to determine what level of
non-compliance they are experiencing according to the guidelines set forth by the State of Indiana,
and the review and determination of the Common Council. "The Council will not take any action
today."
Opening statements by Michael Beitzinger,Economic Development,reported that according
to state guidelines and CF-1 statements, it appears that both JRS Enterprises(AAA Tool&Die)
and Masterbilt,Inc. are not presently in compliance.
JRS Enterprises representative John Shirrell,stated that,"the business has been sold,and
a shift in equipment and employees, in part; Mr. Shirrell keeping the(abated)equipment, and the
new owner purchasing new equipment and utilizing the employees. The slow down in the economy
has had an effect on businesses everywhere, and some of the work has gone to China. The
investment in equipment was made to upgrade and ready the plant for business.There are two less
employees at this time. The plant is still using the machinery."
Council member Pfeifer asked Mr. Shirrell if he knew all the details of the projections made
at the time of the granted abatement,and at what point did it appear that the goals could not be met?
Mr. Shirrell stated, "that even though some of the business has been sold, he still believes that
business will increase,and the employment goal will increase as well,because they are one of the
last two such companies left in the area."
Council Attorney Farrand stated that there should be two separate ID numbers for the now
separate companies.
Council member King stated, "that the Council as a whole will evaluate the new
information, and will let Mr. Shirrell know what the next step will be in the process."
Page 2
Masterbilt,Inc. Representatives, Robert Michalek and Mike Wojtysiak,CPA, presented
reasons for the appearance of not attaining their projections as stated on their CF-1 form.
[See Attachment]
Mike Beitzinger,reported that in June of 2000,they requested abatement on$150,000.00,
but reported on the CF-1 that$114,000.00 was actually spent,and reported only three new jobs.
Mr. Wojtysiak stated, "that the information sheet numbers shows that they did what they
said they would do, but the numbers needed to be clarified, and that they would refile the CF-1
reflecting the realignment of the numbers in a more understandable format.
Council Member Karl King thanked both companies and their representatives for informing
the Council, and that the Council will get back to them soon.
Discussion by Council Members ensued: Council Member King said that a review of each
abatement will need to be based on State law, making judgements on circumstances for non
attainment. The Council has six companies to discuss, and to decide whether to accept or reject
reasons given for each non attainment.
Chairman King thanked everyone and adjourned the Committee of the Whole at 4:00 p.m.
Respectfully submitted,
Loretta J. Duda,City Clerk
• r
Masterbilt Inc
325 S Walnut Street -
South Bend,IN 46601
new ppt
rules changed new ppt
back to old rules
Masterbilt 3/1/03 3/1/02 3/1/01
**
Equipment Cost 349,703.00 359,017.00 359,017.00
Assessed Value 104,911.00 70,597.00 107,705.00
•
National City Leassing
Equipment Cost 147,350.00 147,350.00 n/a
Assessed Value 61,887.00 111,986.00 n/a property with
abatement
Total Cost 497,053.00 506,367.00
Exemption 80% 100%
Total Assessed Value 166,798.00 182,583.00
Full time employees 9.00 7.00
Total Wages 259,458.00 245,926.00
** 2002 new equipment$18,440 no abatment
Total 2003 additions"no abatement"
New Lathe $ 93,650
New tools $ 16,272
Remolding $ 13,065
Payroll six months ended 6/30/03 154,075.00
total w-2's 13 of �'� s