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HomeMy WebLinkAbout09-27-04 Community & Economic Development The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee The September 27, 2004 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 3:50 p.m., in the Council Informal Meeting Room. Persons in attendance included Council Members Kelly, Puzzello, Dieter, Varner, Coleman,White and Kuspa,Community and Economic Development Executive Director Sharon Kendall, City Controller Frederick B. 011ett III,Ken Fedder,Randy Rompola, City Engineer Carl Littrell, Gladys Kopola, Jack Dillon, Don Inks, Larry Magliozzi, George Adler, Tedd Schaffer, City Attorney Charles Leone, Andy Laurent, James F. McCune, Paul Hartz, David Hatch, Isabel Gonzalez and Kathleen Cekanski-Farrand,Council Attorney. Council Member Kelly noted that the first item on the agenda was Bill No. 60-04 which would appropriate $397,640 of HUD initiative grant funds within Fund 209 for the purpose of redevelopment of the Studebaker-Oliver Area. Andy Laurent, an Economic Development Specialist, made the presentation. He noted that the grant monies would be used to implement the Studebaker/Oliver Redevelopment Strategy which was previously approved by the Council. The funds are federal earmark grant monies awarded by Congress before the formal application documents are submitted. Council Member Coleman made a motion, seconded by Council Member Kuspa, that Bill No. 60-04 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a presentation on Substitute Bill No. 61-04 which would authorize the city to issue its"taxable economic development revenue bonds, series 2004" for the Erskine Village Project. Randy Rompola, an attorney with Baker & Daniels with offices at Suite 250 First Bank Building in downtown South Bend made the presentation. He noted that there would be two (2) series with one being sold to an underwriter and one would be purchased by the developer or a related entity. The combined principal amount will not exceed $8 million and the interest rate would not exceed 8%. The City of South Bend bears no responsibility at all with regard to the payment of principal or interest on the bonds or any related expenses. Payment would be from TIF. The Redevelopment Commission has adopted a resolution on this prior to this meeting. He noted that Ken Fedder the attorney for the Economic Development Commission was present and would be present this evening. If the Council approves the substitute bill this evening, there should be a closing in the next sixty(60)days. Council Member Coleman made a motion, seconded by Council Member Kuspa, that Bill No. 61-04 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a presentation on Bill.No. 04-110 which is a five (5)year real property tax abatement request of James F. and Sandra M. McCune for the property located at 225 Garst Street. Community and Economic Development Committee Meeting of September 27,2004 Page 1 The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee Tedd Schaffer, an Economic Development Specialist, then reviewed his September 13, 2004 report (copy attached). He noted that the petitioner plans to purchase the property and build a 5,850 square foot structure for a masonry business. The project cost is estimated to be $250,000. Three (3) new jobs would be created the first year. The report concluded that the petition meets the provisions of Section 2-82.1 of the South Bend Municipal Code addressing "Industrial Development in the Urban Enterprise Zone and Redevelopment Areas". James F. McCune,the petitioner,then addressed the Committee. He stated that he looks forward to having the building built and to moving his business into it. The tax abatement will enable him to expand his business and remain competitive. Council Member Coleman made a motion, seconded by Council Member Kuspa, that Bill No. 04-110 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a report on Bill No. 04-111 which is a five(5)year real property tax abatement request of Mack Tool & Engineering, Inc., Melvin W. Hartz and Sondra K. Hartz for the property located at 2820 Viridian Drive. Tedd Schaffer, an Economic Development Specialist, then reviewed his September 13, 2004 report (copy attached). He noted that Mack Tool & Engineering, Inc. is a prototype and experimental machining parts business. They work in the aerospace and medical industries and are proposed to build a 10,000 addition to their building. This will be used as new shop space and new bathrooms; and will permit the renovation of existing offices, electrical and telephone upgrades. The project cost is $350,000. Four(4)full-time jobs are to be created in the first year. The report concluded that the petitioner meets the standards for a five (5) year real property tax abatement under Section 2-82 of the South Bend Municipal Code addressing "Industrial City Wide". Paul Hartz of Granger,the petitioner, made the presentation. He noted that he would like to correct the information on page 2 of his petition, noting that there are 46 employees since the four(4)new jobs have already been added since he filed the petition. He stated that they have a good customer base and that they are trying to maximize space and hope to purchase adjoining property soon. Council Member Dieter stated that Mack Tool&Engineering,Inc. is a fine business. Council Member Coleman made a motion, seconded by Council Member Kuspa, that Bill No. 04-111 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a report on Bill No. 04-113 which is a five (5)year residential real property tax abatement request of Habitat for Humanity of St. Joseph County for the properties located at 2306 West Linden Avenue and 2229 Orange Street. Tedd Schaffer, an Economic Development Specialist, then reviewed Michael Beitzinger's report dated September 22, 2004 report (copy attached). He noted Habitat for Community and Economic Development Committee Meeting of September 27,2004 Page 2 The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee Humanity of St. Joseph County plans to construct two (2) houses, each with a value of$69,000. The report concluded that the petitioner meets the standards set forth in Section 2-77.1 of the South Bend Municipal Code entitled"Single Family Real Property Abatement". David Hatch of Habitat for Humanity of St. Joseph County made the presentation. He thanked the Council for their past support and urged the Committee to recommend the petition favorably to Council. Council Member Coleman made a motion, seconded by Council Member Kuspa, that Bill No. 04-113 be recommended favorably to Council. The motion passed. Council Member Kuspa then pointed out that in Bill No.04-110 in the 1st Whereas clause it incorrectly refers to"2820 Viridian Drive" and should read"225 Garst". The Council Attorney requested Mr. Schaffer to file a substitute bill incorporating that change prior to the 7 pm Council meeting. Council Member Kelly then called upon Larry Magliozzii and George Adler to provide an update on City Plan. They provided copies of the brochure entitled "Envision South Bend 2025..." (copy attached). They noted that the process is going extremely well with approximately thirty (30) "vision sessions" with about 1,000 people involved. In February of this year there were "report back meetings". City Plan is approximately 50% through the analysis stage. On November 6, 2004 the Civic Alliance Panels will meet in a retreat setting. Goals will be developed in February and March of 2005. Council Member Kelly thanked everyone for their presentations. Dr. Varner stated that he has been able to see many of the guest speaker series on public access television. There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 4:09 p.m. Respectfully submitted, Council Member Roland Kelly, Chairperson Community and Economic Development Committee KCF:kmf Attachments Community and Economic Development Committee Meeting of September 27,2004 Page 3