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HomeMy WebLinkAbout05-12-03 Community & Economic Development ommttten Ateport Qommunitt anti Commit i'4opm# .t tommittet The May 12, 2003 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Karl King at 4:31 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Kelly, White, Varner, Aranowski, King, Coleman, Pfeifer Kirsits, and Kuspa; Rick O1lett, Michael Beitzinger, Beth Leonard, Pete Barbarino, John Firth, Thomas Walz, Jack Long, John Mintum, Dan Fitzpatrick, Kevin Smith, Terry Bland of the lout j Wray tribunt,and Kathleen Cekanski-Farrand, Council Attorney. Council Member King called for a presentation on Bill No. 03-39 which is a three (3) year real property tax abatement request of Bravokilo, Inc., for the property located at 121 West LaSalle Street. Michael Beitzinger, Economic Development Assistant Director, reviewed his report dated April 29, 2003 (copy attached). He noted that the petitioner is in the process of purchasing the property. The site is currently a Burger King restaurant which will be demolished and a new state of the art building constructed. The project is projected to cost $842,000. The report concluded that the petitioner meets the qualifications under § 2-79 of the South Bend Municipal Code addressing Retail Developments in the Central Business District (CBD), the East Bank Development Area (EBDA) and Tax Abatement Impact Areas (TAIA). Mr. Beitzinger noted that the report should be corrected to reflect the amount abated to be$36,185. John Firth, the attorney for the petitioner then introduced Dan Fitzpatrick of Quality Dining which is the holding company. He thanked the city for being very cooperative during this process and noted that they are looking forward to reopening their business. Following discussion, Council Member Kelly made a motion, seconded by Dr. Varner that Bill No. 03-39 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-40 which is a five (5) year personal property tax abatement request of Total Enterprises, LTD for the property located at 3333 West Lathrop Drive. Michael Beitzinger, Economic Development Assistant Director,reviewed his report dated April 29, 2003 (copy attached). He noted that the petitioner manufactures tooling primarily for use in the automotive and office furniture industries. The company desires to purchase a new foundry, pattern shop and engineering machinery and equipment so that they may produce more competitively. The new machinery and equipment is estimated at$350,000. The report concluded that the petitioner meets the qualifications for a five(5) year personal property tax abatement under § 2-84.2 of the South Bend Municipal Code addressing tangible personal property tax abatement. Thomas Walz,the attorney for the petitioner then introduced Jack Long, the President of the Board for the company. They noted that the four(4)job estimate is conservative. They further noted that tax abatement is critical to making the company more competitive. Following discussion, Dr. Varner made a motion, seconded by Council Member Kelly that Bill No. 03-40 be recommended favorably to Council. The motion passed. Community and Economic Development Committee May 12, 2003 Page 2 Council Member King then called for a presentation on Bill No. 03-41 which is a five (5) year personal property tax abatement request of Gibbs Wire and Steel Company, Inc., for the property located at 3751 Olive Road. Michael Beitzinger, Economic Development Assistant Director, reviewed his report dated April 29, 2003 (copy attached). He noted that the petitioner is a manufacturer and fabricator of flat steel strip metal, and is a distributer of stainless steel, carbon and music wire. They operate six (6) service center warehouses and is headquartered in Southington, Connecticut. They plan to purchase a new 20 strand slitter/oscillator, a 4 strand edger/oscillator and a Gorbel crane. The estimated cost of the new equipment is $ 1 million. The report concluded that the petitioner meets the qualifications for a five (5) year personal property tax abatement under§ 2-84.2 of the South Bend Municipal Code addressing tangible personal property tax abatement. Mr. John Mintum, Operations Manager, made the presentation. He thanked the Council for their continued support of their company in helping it continue to be competitive. Following discussion, Council Member Kelly made a motion, seconded by Dr. Varner that Bill No. 03-41 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-45 which is a resolution reconfirming the five (5) year residential real property tax abatement request for Gibraltar Home Builders Limited Partnership for the properties located at 2316 and 2251 Cranston Street. Michael Beitzinger, Economic Development Assistant Director, reviewed his report dated May 6, 2003 (copy attached). He noted that the petitioner was granted a five year abatement on August 10, 1998. There are two (2) lots which remain and therefore the petitioner is asking for an extension of the designation so that they can finish this subdivision. Pete Barbarino, the President of the company made the presentation and requested an extension so that their project could be completed. Council Member Kelly made a motion, seconded by Dr. Varner that Bill No. 03-45 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-56 which is a resolution reconfirming the ten (10) year real property tax abatement for DSM Holding, LLC (dba Deluxe Sheet Metal)for the property located at 6661 Lonewolf Court. Michael Beitzinger, Economic Development Assistant Director, reviewed his report dated May 6, 2003 (copy attached). He noted that the petitioner was granted a ten year real property tax abatement on July 10, 2000. The petitioner has unknowingly exceeded the ERA designation period of two(2) years and has requested additional time to complete the project. The petitioner was represented by Kevin Smith who noted that they have experienced several challenges. The road construction was delayed. The design of the building has received an award and they have had ongoing discussions with the Redevelopment Commission with regard to its contract. Following discussion,Council Member Kelly made a motion, seconded by Dr. Varner that Bill _ 1 Community and Economic Development Committee May 12, 2003 Page 3 No. 03-46 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-47 which would approve the issuance of tax increment finance revenue bonds of the South Bend Redevelopment District for the Airport Economic Development Area Project(copy attached). City Controller Rick 011ett made the presentation. He noted that the resolution is required by state law. Dr. Varner made a motion, seconded by Council Member Kelly that Bill No. 03-47 be recommended favorably to Council. The motion passed. 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 Karl King, Chairperson Community and Economic Development Committee KCF:kmf Attachments