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HomeMy WebLinkAbout07-14-03 Community & Economic Development Contmitt y . port Communitt antr Qronomir iklitiopittent Qommittto The July 14, 2003 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Karl King at 3:52 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Aranowski, Coleman, Varner, Kirsits, Kelly, Kuspa, White, Pfeifer, and King; Bob Goodrich, Don O'Blenis, Bob Case, Bob Allen, Michael Beitzinger, John Axelberg, Monica J. Brickel, Tom and Sue Kinnucan, William Walsh, Karen Ainsley, Carla Haney, Michael Urbanski, Terry Bland of the 'out j Virtt4 ribune and Council Attorney Kathleen Cekanski-Farrand. Council Member King noted that the Committee consists of Council Members Varner, Kuspa and himself. Council Member King then called for a presentation on Bill No. 03-66 which is a request of Axelberg & Axelberg, LLC., for a ten (10) year real property tax abatement for the property located at 2025 South Main Street. Michael Beitzinger, Economic Development Assistant Director, reviewed his July 1, 2003 report (copy attached). Mr. Beitzinger noted that the petitioner is the real estate holding company for General Sheet Metal Works, Inc., which operates as a metal fabricating company. The former Alro Steel building located at 2025 South Main Street was purchased which is adjacent to the General Sheet Metal Works' existing facility. The building will be used to expand the welding capabilities once upgrades have been made to the building. Improvements are estimated to cost $ 600,000. Ten (10) new permanent jobs are to be created in the 1st year with a new annual payroll of $ 338,000. The report concluded that the petitioner meets the qualifications for a ten (10) year real property tax abatement under § 2-82.1 of the South Bend Municipal Code addressing "Industrial Development in the Urban Enterprise Zone or Redevelopment Designated Areas". Mr. Beitzinger then provided a one-page handout providing a response to question 13, which was originally unavailable when the report was prepared(copy attached). Mr. John Axelberg and Monica.J. Brickel were available for questions from the Committee. No one from the public spoke in favor or in opposition to Bill No. 03-66. Dr. Varner inquired about the time reference for the improvements. Mr. Axelberg stated that they need to be in the building by the end of September 2003. Exterior improvements to the building will be completed by the end of the Summer of 2004. Dr. Varner noted that the petitioner has painted the exterior of an old building located on Main Street which has greatly enhanced the structure. Following discussion, Dr. Varner made a motion, seconded by Council Member Kuspa, that Bill No. 03-66 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-67 which is a five (5) year personal property tax abatement request of Hoosier Tank & Manufacturing, Inc., for the property located at 2502 West Lawton Street and 201 North Olive Street. Community and Economic Development Committee July 14, 2003 Page 2 Michael Beitzinger, Economic Development Assistant Director, reviewed his July 8, 2003 report (copy attached). Mr. Beitzinger noted that the petitioner is a manufacturer for the trailer industry and produces air pressure reservoirs. The company was incorporated in 1991 and needs new equipment to accommodate the demand for increased productivity. Some of the new equipment includes die tooling equipment, welders,punch presses, etc., with an estimated cost of$ 250,000. Twelve (12) new, permanent, full-time jobs are estimated to be created with a new annual payroll of$ 350,000. The report concluded that the petitioner meets the requirements for a five (5) year personal tax abatement under § 2-84.2 of the South Bend Municipal Code addressing "Tangible Personal Property Tax Abatement". Tom and Sue Kinnucan and William Welsh were present and available for questions. No one from the public spoke in favor or in opposition to Bill No. 03-67. Council Member Kirsits inquired whether the property was located on "Olive Street" instead of "Olive Road". Mr. Kinnucan noted that it should be"Street". The Council Attorney noted that corrections would have to be made to the title and the 1st "Whereas" clause. Mr. Beitzinger stated that he would have a substitute Bill incorporating those corrections ready for this evenings meeting. Following discussion, Council Member Kelly made a motion, seconded by Council Member Kuspa that Bill No. 03-67 as to be corrected be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-68 which is a request of the Near Northwest Neighborhood, Inc., for a five (5) year residential real ro the properties located at 1030 Portage Avenue and 919 Leland Avenue. p abatement for Michael Beitzinger, Economic Development Assistant Director, reviewed his July 7, 2003 report (copy attached). Mr. Beitzinger noted Garden Homes plans to construct homes on the properties with the investment ranging from $ 90,000 to$ 100,000 per lot. He noted that the petitioner meets the requirements for a five (5) year residential tax abatement under § 2-77.1 of the South Bend Municipal Code addressing"Single Family Real Property Abatement". Mr. Beitzinger highlighted the response to question 13 on page 2 of the petition which set forth detailed information on the status of the properties in question. Michael Urbanski of Garden Homes made the presentation. He noted that the Near Northwest Neighborhood, Inc., has been working for 4-5 years to upgrade this area. This will be the first project of Garden Homes in this area and that they are very excited about the project. He noted that Karen Ainsley and Carla Haney are also available for questions. Council Member Kirsits inquired whether the current structures would be torn down, and was advised that they would be and replaced with new buildings. It was also noted that a petition is pending before the City's Board of Zoning Appeals regarding set backs. No one from the public spoke in favor or in opposition to Bill No. 03-68. Following discussion,Dr. Varner made a motion, seconded by Council Member Kelly that Bill Community and Economic Development Committee July 14, 2003 Page 3 No. 03-68 be recommended favorably to Council. The motion passed. Under unfinished business, Council Member King advised the Committee that he has reviewed the annual report prepared by Mr. Beitzinger addressing tax abatements granted by the City. He noted that he has found that several have presented data which shows that in the areas of job creation and/or estimated dollar investment that they have not been met their goals as set forth in their petition for abatement. He noted that there is a state form which requires a finding of whether the applicants are in compliance. Between 10-14 companies have not met their commitments, with some having fewer jobs now than the number they had when they requested abatement. Council Member King noted that the entire Council needs to review the data. He added that Mr. Beitzinger has received materials from the City of Indianapolis as to how they handle such situations. Council Member King suggested that Mr. Beitzinger present data to the Committee on each of these companies which appear not to have met their commitments, since such information cannot be ignored. The Council Attorney noted that she would provide a copy of the governing state law to the Council prior to the 7 p.m. Council meeting. [Indiana Code § 6-1.1-12.1-5.9 Determination of Substantial Compliance with State of Benefits; Notice of Noncompliance; Hearing; Resolution; Appeal} (copy attached). Council Member Kelly suggested that the Council get the information and then bring in representatives from the companies. He noted that some of them may have good reasons. Dr. Varner suggested that the Council receive a summary from Mike Beitzinger and a spread sheet with regard to the categories. Council President White noted that she agrees with the remarks which have been made by Council Members King, Kelly and Varner. She noted that it is a matter of accountability. Information should be given to all Council Members and have adequate time to review the information. She concluded her remarks by stating the Council cannot ignore such information. Council Member Coleman added that some work could be done at the Committee level with recommendations being made to the entire Council. Council Member King gave an example of one company which had 94 employees when petitioning for abatement; that it stated it would create 14 new jobs and now has 8 0 employees. He added that of the fourteen (14) abatements which may be in non-compliance that ten(10)companies are involved. Council Member Pfeifer noted that in some situations it may be a matter of inflated figures when petitioning the Council for abatement. There should be repercussions for not meeting stated goals. Council Member Aranowski suggested that there be one (1) meeting where all of the company representatives are given the opportunity to present their case. Council Member Kirsits suggested that if all representatives are required to appear at one meeting that it-be-held on a non-Council meeting date. Community and Economic Development Committee July 14, 2003 Page 4 Council Member King suggested that letters be sent to each company before July 31st. Mr. Beitzinger stated that he would have his report to the Council later today on the affected companies. There being no further business to come before the Committee, Council Member King adjourned the meeting at 4:20 p.m. Respectfully submitted, Council Member Karl King, Chairperson Community and Economic Development Committee KCF:kmf Attachments