HomeMy WebLinkAbout03-15-82 Human Resources & Economic Development fdnmmttbr arpnrt
Wu the Mammon Until of tlir Titg of 16mrtly rnd: Human Resources and Economic Development
Committee
The March 15 , 1982 meeting of the Human Resources and Economic
Development Committee was called to order by its Chairman, Councilman John
Voorde at 6: 00 p.m. in the Council Meeting Room.
Persons in attendance included: Councilmen Crone, Voorde, McGann,
Szymkowiak, Beck, Zielinski and Dombrowski, Mr. Charles M. Pomeroy,
Marc Bramer, Ann Kolata, and Kathleen Cekanski-Farrand.
Councilman Voorde noted that the purpose of the meeting was to discuss
the personal property tax abatement petition filed by South Bend Toy, Inc. ,
which is scheduled for public hearing at tonight's Council meeting.
Councilman Voorde stated that the Redevelopment Commission held a meeting
on February 19th and found that the area did qualify as an urban development
area. The Commission found that the area located at 404 West Sample Street,
met the following criteria: (1) That it had technological and economical
obsolescence and would decline in employment and tax revenue, (2) That the
tangible personal property is to be used in the direct production of other
tangible personal property,and (3) That the community would retain or
increase jobs as a result of this acquisition of new manufacturing equipment.
The projected cost of the equipment would be $106, 154. 00.Without abatement
taxes would be $8, 607. 52; with abatement taxes would be $1, 799 . 39 ; thus the
amount of abatement would be $6, 808. 14.
Mr. Charles M. Pomeroy, treasurer of South Bend Toy, Inc. stated that
the company would manufacture croquette games . He then gave a brief history
on Milton-Bradley leaving and the formation of the new South Bend Toy Co . , Inc.
Councilman Voorde noted that this would be the first Personal property
tax abatement petition considered by the Council since the new State law took
effect. The percentage of abatement over the five year period would be: 100%,
9570, 8070, 65%,and 5070,
Councilman McGann made a motion seconded by Councilman Crone that the
area commonly known as 404 West Sample Street be designated as a urban
development area for purposes of tangible personal property tax abatement.
The motion passed unaminously.
The Council Attorney and Councilman Voorde expressed their concerns
over the tax abatement ordinance as presently written. They suggested that a
review would be in order in the attempt to separate out what is specifically
required for personal property tax abatement and real property tax. The role
of the Area Plan Commission also questioned for personal property tax
abatement purposes and it was suggested that the Chairman be designated instead
of the full. Commission.
There being no further business to come before the Committee the meeting
was adjourned at 6: 30 p.m.
Respectfully submitted,
John Voorde, Chairman
FRES •R[tt a PUOLISHING CO.