HomeMy WebLinkAbout02-09-04 Community & Economic Development Oittittitt t rozport
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The February 9, 2004 meeting of the Community and Economic Development Committee was
called to order by its Chairperson, Council Member Roland Kelly at 400 p.m. in the Council
Informal Meeting Room.
Persons in attendance included Council Members Kelly, White, Varner, Dieter, Puzzeho,
Kirsits,Coleman, Pfeifer, Krsits, and Kuspa; Citizen Member Andy Nemeth, Nevin J. Sequeiah,T erry
O'Brien, Jeff Myers, Richard.K. Berstein, Ken Nelson, Richard Kazinski, Leda Covington, Tom
Gerky, Jitin Kain, Larry Magliozzi, Terry Bland of the *nth 3ficra vsrtimmt, and Kathleen
Cekanski-Farrand, Council Attorney.
Council Member Kelly ] 1 1 !•1 1____ included Council Members T7• __'a_
Council Member` Kelly noted that the Committee members included Council Members Kirsits,
Coleman, Kuspa, and himself; and then welcomed new citizen member Andrew Nemeth to the
Committee meeting.
Council Member Kelly noted that the City Clerk has received a letter dated February 6, 2004 front
Richard J. Tl__t_i 1_ r Lock Joint Tube, Inc., who has requested Bill No. !�A i1A 1__
Richard J. ream, the attorney for Lock Joint f ube, Inc who has requested that Bill No. 04-24 be
postponed until the Council meeting of February 9th(copy attached).
Council Member Kirstis made a motion seconded by Council Member Kuspa that Bill No. 04-26
be continued until February 9th, at the request of the petitioner. The motion passed.
Council__t A.r t Kelly 1 called for Bill No. raw �i which r'__ (5)Council Member Kell- then called fora presentation on Bill No. 04-26 which is a five year
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1 1 c t located 2629 Foundation_-- n_- r
personal property tax abatement request for the property located at 2629 Foundation Drive for
Value Production, Inc.
Terry J. O'Brien, an Economic Development Specialist, then reviewed his report dated February 2,
2004 �__-_ I t� He noted �l I r__. 1• r__ I
2004 (copy attached). He noted that the petitioner manufactures tooling for use in the aerospace,
automotive, medical and commercial markets. They plan to purchase new equipment for two (2)
mills, one(1) lathe and a wire EDM, for an estimated cost of$250,000. 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.
Nevin J. Sequeiah,/_ T __ ]_ of Value l __ ll _ ] __ _ Inc., I 1_ the will 1
Nevin J. Sequeiah, President of value Production, I noted that h equipment will pennit his
company to compete competitively in the high tech metal industry. Once the equipment is installed
he anticipates adding a night shift.
Following_ ]�______ _ _ Council•1 a ,r_ / Kirsits t � t Council Member
Following discussion, Council Member Kirsits made a motion, seconded by Council Member
Dieter Bill AT_ �1 .•�i 1 I t favorably to Council.
Dieter that Bill No. 04-26 be recommended favorably to Council.
Council Member Kelly then called for a presentation on Bill No. 04-25 which is a ten(10) year real
property tax abatement for MVC land Development, LLC for the property located at Linden
Avenue and Clemens.
Mr. O'Brien reviewed his report dated February 3, 2004 (copy attached). He noted that the
petitioner plans to construct 120 housing units within ten(10) apartment buildings on 12.35 acres.
The buildings will have combinations of 2,3,and 4-bedroom units. The estimated cost of the entire
project will be $ 9,000,000.00. The report concluded that the petitioner meets the qualifications
for a ten(10) year real property tax abatement under§ 2-77 of the South Bend Municipal Code
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i ebruar) 9, 2004
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addressing multi-family residential developments. Mr. O'Brien noted that this is the first real
property tax abatement request being brought under the new tax abatement regulations. He noted
that under the regulations there is a base abatement for three (3) years and that extra consideration
has been given based on the proposed size of the project,wages and benefits.
The Council Attorney inquired whether the report would be updated on page 2, 9 2, since the
zoning issue is also before the Council this evening. Mr. O'Brien stated that he would correct the
report.
Mr. Richard K. Berstein of Dayton, Ohio then made the presentation. He noted that the petitioner
has constructed more than 9,000 apartment units and various types of housing. Representative
photographs were then circulated to the Committee. He noted that originally 146 units were
proposed which have been downsized to 120 units. They plan to utilize the Indiana State Tax
Credit Program for affordable housing. Apartments would be available for persons with incomes
between$24,000 to $39,000 with minimum rent between$400 to$450.00.
In response to a question from Council President White, Mr. Berstein stated that they are working
with the Planning Department with regard to Linden Avenue.
Dr. Varner inquired what percentage of the property would be developed. Mr. Myers stated that he
would address that during the zoning presentation on the Bill related to zoning.
At this point, the Council Attorney suggested that the Zoning and Annexation Committee meeting
be opened so that the zoning matter could be addressed prior to the tax abatement request. (See
February 9,2004 Zoning and Annexation Committee meeting minutes).
In light of the zoning matter being requested to be withdrawn, Council Member Kuspa made a
motion, seconded by Council Member Coleman that at the request of the petitioner that it be
recommended that Bill No. 04-25 be struck from the Council agenda. The motion passed.
Under miscellaneous business, Jitin Kain and Larry Magliozzi provided an update on City Plan.
They provided a copy of"Phase 1:Community Outreach--A Vision for South Bend-- February 1,
2004"prepared by Capraro Consulting(copy attached).
They noted that a series of community meetings would take place in February and it was suggested
that each Council Member attend two(2) of these meetings.
Dr. Varner requested a copy of the tape of the last speaker. Mr. Jitin Kain stated it would take 2-3
weeks to edit the tape and that copies would be made available to the Council and also in the public
library and public access television.
Council Member Dieter requested that it also be made available on CD.
Mr. Andrew J. Nemeth then passed out his business card(copy attached). He voiced concern over
his understanding that the Economic Development Department was possibly"pulling the plug"on a
development on the south side of the city which would have 1/2 million square feet for retail and
between 500-1,000 jobs.
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Council President White inquired what project was affected.
Mr. Nemeth stated that the developer was from Cincinnati and that they were "ready to go". He
stated that a resolution is being drafted.
Council Member Kelly then adjourned the Committee meeting at 5:34 p.m.
Respectfully submitted,
Council Member Roland Kelly, Chairperson
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Community and Economic Development Committee
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Attachments