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HomeMy WebLinkAbout10-26-81 Human Resources & Economic Development enmmti#rr larpnrt Mi tt t fllnuunan Olounrt[ of t1r Olttg of Ooutli litrtd: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The October 26 , 1981 meeting of the Human Resources and Economic Development Committee was called to order by its Chairman, Councilman John Vorde at 5 : 45 p.m. in the Council meeting room. Persons in attendance included: Councilmen: Dombrowski, Zielinski, Szymkowiak, Serge, Crone, McGann, Voorde, Beck, and Taylor; John Leszczynski, Pat McMahon, Attorney Jack C. Dunfee, the petitioner Mr. Daniel M. Rifkin, Union Representatives George Elrod, Jim Benjamin, Lloyd Robinson; Marchmont Kovas, and Kathleen Cekanski-Farrand. Councilman Voorde announced that the purpose of the meeting was to continue discussion on whether the property located at 1120 West Sample is an Urban Development area thus qualifying for tax abatement. Councilman Voorde noted that a Committee meeting was held on .October 12, 1981, to discuss this matter, however notice was not given to the petitioner and as a consequence the petitioner was not present. Mr. Jack C. Dunfee, attorney for the Petitioner then reviewed why he believed his client was entitled to tax abatement. He noted that the building at 1120 Sample was not a part of the petition and that it would be used as a vehicle repair facility for the Metal Resources Corporation. The petitioner would be spending five million dollars, with one million dollars being abated. Mr. Dunfee then read two letters dated October 23, 1981, one from Mr. Daniel M. Rifkin, President; and one from Mr. Dunfee (copies attached) . Mr. Dunfee closed by stating that the project was a "great thing for the community" , and that they had worked at it longer than the proposed ethanol project. Councilman Voorde then reviewed the September 25, 1981 Redevelopment Commission Report which recommended the project favorably. Pat McMahon, Director of Redevelopment then reviewed job targeting activities which are encouraged by Resolution 645 . He indicated that of the 30,0 new employees for the Marriott Hotel, 30% were CETA qualified. The Resolution sets forth a voluntary procedure in an effort to reduce unemploy- ment overall. It does not address skilled positions. Mr. Lloyd Robinson, representing the electrical workers, stressed that Resolution 645 is strictly voluntary. He questioned the bidding process used by the petitioner, and believed they were secretive. Mr. Jim Benjamin, representing plastic and cement masons noted that 35% to 70% of his people are unemployed, and have used up all of their unemployment compensation benefits. Councilman Voorde read from the letter that 90% of the contracts would be done by local contractors. Councilman Crone questioned whether 90% of the contracts had not been let. I11[[ ►R[[[ . to. 1V[LIIXIN6 CO. Mr. Dunfee answered that the clearing of the property is underway and is being done by a local contractor. He added that when laws are constantly being changed that that is the biggest obstacle to local developers. Councilman Crone noted that "local employment" is not a criteria to be considered when reviewing a petition for tax abatement. Since the petitioner has complied with all of the tax abatement criteria, that she would be voting in favor of it. Councilman Szymkowiak recommended to Mr. Rifkin that he consult with local workers when- . contracting the various jobs. Councilman McGann noted that given the frozen tax situtation, that we need an incentive to attract new business. He emphasized his desire to see local labor used on such projects. Since all projects were to be bid he hoped that the locals would bid. Councilman Taylor made a motion seconded by Councilman McGann that the Committee accept the Redevelopment Commission' s favorable recommendation. The motion passed 4-0. Councilman Voorde thanked the building trades for bringing out the issues. The Committee then reviewed Bill No. 106 which would appropriate $39, 958 to help defray the expenses on the First Bank Center project. Pat McMahon reviewed the Bill with the Committee. Councilman Taylor made a motion to recommend the Bill favorably seconded by Councilman McGann. The motion passed 4-0. There being no further business to come before the Committee, the meeting was adjourned at 6: 35 p.m. Respectfully Submitted, John Voorde Chairman -2-