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HomeMy WebLinkAbout02-09-04 Community & Economic Development Oittittitt t rozport 'uCO1ititttiltitg altti etonottit fotigiontorat Contittitfr 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 y p - - - � � y 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 �.omniunit\ and i ononue De%eiopnrent Conn nee i ebruar) 9, 2004 Page 2 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. ,_ �.h:.,m+.: tJt;ciupment Committee i aka 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 II Community and Economic Development Committee KCF:kmf Attachments