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HomeMy WebLinkAbout09-13-04 Community & Economic Development • I The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee The September 13, 2004 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:40 p.m., in the Council Informal Meeting Room. Persons in attendance included Council Members Dieter,Kelly,Puzzello, Varner,Kuspa, Coleman, Pfeifer, White and Kirsits; Community and Economic Development Executive Director Sharon Kendall, Code Enforcement Director Catherine Brucker, City Clerk John Voorde, Building Commissioner Don Fozo, Michael Beitzinger, Tedd Schaffer, David Hatch, Aaron Blank,Gladys Kopola,and Kathleen Cekanski-Farrand,Council Attorney. Council Member Kelly stated that the Committee members include Council members Kirsits, Coleman,Kuspa and himself. Council Member Kelly then called for a presentation on Bill No. 04-94 which is a five (5) year personal property tax abatement request for Steel Warehouse Company, Inc., for the property located at 2722 Tucker Drive. Mr. Beitzinger suggested that since the petitioner for Bill No. 04-94 was running late, he requested that the Committee hear Bill No. 04-97 first. Council Member Kelly therefore called for a presentation on Bill No. 04-97 which is a five (5) year residential real property tax abatement request for St. Adalbert Roman Catholic Church for the benefit of Habitat for Humanity. Michael Beitzinger, Director of the Division of Economic Development, reviewed his report dated September 7, 2004 (copy attached). He stated that St. Adalbert Roman Catholic Church plans to sell the lot in question to Habitat for Humanity. A house with 1,120 square feet will be constructed on the lot, which will use volunteer labor and donated materials. The house will have an approximate value of$69,000. Mr. Beitzinger concluded his presentation by stated that the petitioner meets the qualifications for a five-year residential tax abatement under Section 2-77.1 of the South Bend Municipal Code addressing"single family real property abatement". David Hatch, Executive Director of Habitat for Humanity requested favorable action by the Committee. He noted in response to a question from Council Member Kuspa that the church would sell the property to their organization and that the property would be put back on the tax rolls. Council Member Kuspa made a motion, seconded by Council Member Kirsits that Bill No. 04-97 be recommended favorably to Council. The motion passed. Mr. Beitzinger stated that since Mr. Gerald F. Lerman was now present,he requested the Committee to hear a presentation on Bill Nos. 04-94, 04-95 and 04-96. Community and Economic Development Committee Meeting of September 13,2004 Page 1 The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee Council Member Kelly then called for a presentation on Bill No. 04-94 referenced earlier; Bill No. 04-95 which is a five (5) year real property tax abatement request of Steel Warehouse Company, Inc., A&F Realty,Nathan Lerman Trust, Allan and Frances Lerman, JH Jones, LLC for the property located at 2722 West Tucker Drive,; and Bill No. 04-96 which is a five(5)year personal property tax abatement request for Steel Warehouse Company,Inc. for the property located at 1400 Riverside Drive. Mr. Beitzinger stated that he had combined all three (3) Bills into one (1) report dated August 31, 2004 (copy attached) which he then reviewed. The three (3) abatement requests include one for the building addition at the Tucker Drive address for an investment of$638,000; one for new manufacturing equipment to be installed at that addresses for an investment of approximately$ 1.3 million; and the third request for the new equipment to be installed at the Riverside Drive address for an additional investment of$935,000. He noted that the petitioner has requested several prior abatements from the city and is in compliance with all city regulations. Steel Warehouse is a steel service center which specializes in flat rolled,low carbon steel and develops many steel products. Nine (9) new permanent jobs will be created and 439 full-time jobs will be retained which represents an annual payroll of over $ 19.3 million. Mr. Beitzinger stated that the petitioner has signed memorandum of agreements on each abatement request. The report concluded that the requests comply with the governing provisions of the South Bend Municipal Code section 2-82.1 addressing "industrial development in urban enterprise zone and redevelopment areas" and section 2-84.2 addressing "tangible personal property tax abatement. Mr. Gerald F. Lerman thanked the Council for their past support and urged the Committee to recommend favorably on the three(3)tax abatement requests. Dr. Varner noted that Steel Warehouse is a local success story, and that he is proud to assist a company which continues to grow and prosper. Council Member Kuspa spoke in favor of the three(3)abatement requests and stated that the city should do all that it can to help this company, especially in light of the growing competition which it has. Council Member Kuspa then made a motion, seconded by Council Member Coleman that Bill Nos. 04-94, 04-95 and 04-96 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a presentation on Bill No. 04-98 which is a five (5) year residential real property tax abatement request of the Westside Democratic Club for the benefit of Habitat for Humanity of St. Joseph County for the property located at 744 Carlisle Street. Mr. Beitzinger then reviewed his report dated September 7, 2004 (copy attached). The Westside Democratic and Civic Club plans to sell two (2) lots to Habitat for Humanity, who in Community and Economic Development Committee Meeting of September 13,2004 Page 2 • The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee turn plans to build a house with 1,120 square feet. They will use volunteer labor and donated materials with the house having a value of approximately$69,000. Mr. Beitzinger concluded his presentation by stated that the petitioner meets the qualifications for a five-year residential tax abatement under Section 2-77.1 of the South Bend Municipal Code addressing"single family real property abatement". David Hatch of Habitat for Humanity requested favorably action by the Committee. Council Member Coleman made a motion,seconded by Council Member Kirsits that Bill No. 04-98 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a presentation on Substitute Bill No. 04-99 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 2530 W. Linden Avenue, 1139 McKinley Avenue, and 2118 Kenwood Street. Mr. Beitzinger stated that the Bill has been substituted because two (2) of the locations, namely 2306 West Linden Avenue and 2229 West Orange Street are within the West Washington/Chapin Street Redevelopment area and must be considered by the Redevelopment Commission first. These two (2) properties have been deleted from the Bill and will be resubmitted at a later time. Mr. Beitzinger then reviewed his report dated September 7, 2004 (copy attached). The petitioner plans to construct five (5) houses, each with 1,120 square feet. Each house will have an approximate value of$69,000. David Hatch of Habitat for Humanity stated that he does not take the tax abatement process lightly. They are committed to turning renters into homeowners. Dr. Varner inquired whether any counseling is provided since the tax abatement reductions will disappear after five(5)years. Mr. Hatch stated that they do counseling through the Purdue extension, and that each of the owners is made aware of their responsibilities. Following discussion, Council Member Kuspa made a motion, seconded by Council Member Coleman that Substitute Bill No. 04-99 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a presentation on Substitute Bill No. 04-100 which is a five (5) year residential tax abatement request for various locations on Deer Hollow Drive, Black Tail Court, Red Farm Court, Hollington Way and Running Deer Drive, all of which are located in the Deer Hollow Subdivision. Community and Economic Development Committee Meeting of September 13,2004 Page 3 • The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee Mr. Beitzinger stated that due to the city's computer network problems for the past two(2) weeks, there was a delay in getting information from the Building Department. It has recently been discovered that Lot# 17 has already had a building permit pulled and therefore has been deleted from the bill,resulting in the substitute version of Bill No. 04-100. Mr. Beitzinger then reviewed his report dated September 7, 2004 (copy attached). Approximately 37 acres were recently annexed into the city and the developer plans to build thirty-six (36) houses in this subdivision. Lot sizes will vary from 0.31 acres to 6.06 acres. House values will range from $300,000 to $ 600,000. The project investment will be approximately$ 12.5 million. Aaron Blank of Abonmarche Consultants of Indiana, LLC made the presentation on behalf of the developer Alway Development Corporation. He stated that the proposed development is located south of Kern Road and east of Ironwood and is now in the city limits. Council Member Kirsits inquired about the real estate taxes in this area. It was noted that commercial properties appear to be getting more of a break while residential properties are paying more. Council Member Kirsits then made a motion, seconded by Council Member Kuspa that Substitute Bill No. 04-99 be recommended favorably to Council. The motion passed. Mike Beitzinger then addressed the Committee. He noted that he had emailed the Council advising them of his upcoming resignation effective September 24, 2004. He thanked the Mayor, Council and the Council Attorney for all of their support over the years. He then introduced Tedd Schaffer who would be taking over his responsibilities. Council Member Kelly thanked him for his yeoman efforts and wished him well at his new position with Teachers Credit Union. Under miscellaneous business, Council Member Kelly noted that he would be calling a Community and Economic Development meeting for September 22nd on the City Plan, and another committee meeting on September 23rd on the CDBG funds. There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 5:07 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 13,2004 Page 4