Loading...
HomeMy WebLinkAbout05-29-84 Human Resources & Economic Development OIlemmtUrn Rrpuri (Uu Il a Gammon alounrtl of tilt O it4 of etmdli Tirnb: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The May 29, 1984 meeting •of the Human Resources and Economic Development Committee was called to order by its Chairman, Councilman Eugenia Braboy at 4 : 00 p.m. in the Council informal meeting room. Persons in attendance included Councilmen: Voorde, Braboy, Beck, Puzzello, Paszek, Crone, Serge, Taylor, Zakrzewski; Ann Kolata, Eugenia Schwartz, Rick Morgan, Jon Hunt, Herman Lee , Howard Bessire, Irene Gammon, Sandy Combs, Kevin Butler, members of the news media, and Kathleen Cekanski- Farrand. Councilman Braboy noted that she had sent notice of this meeting on May 18th to several interested parties. She thanked everyone for coming and welcomed their suggestions on tax abatement. She noted that Patrick McMahon of Project Future could not be in attendance however did send a three page _letter dated May. 29 , 1984,. (copy attached) . Councilman Braboy- noted that currently there are three criteria used by the City when reviewing tax abatement petitions. . Meeting any one' of these criteria would qualify the applicant' for tax abatement. These include (1) being within major groups 15-39 or 42 of the standard industrial classification manual (SIC)-, (2) creating 100 new permanent jobs, and :(3) being within any designated redevelopment area, or tax revitalization area.. Councilman Voorde noted that he had recently attended an Economic Development workshop. He felt that "balance sheets" would be too subjective. He suggested that the tax abatement procedures be reviewed every two years and that "objective and simple criteria" be used. Councilman Crone noted that the current ordinance calls for a review every three years. Howard Bessire noted that manufacturing is the basic type of employment which_ creates other jobs. Less than 6.56 have more than 100 people employed. Manufacturing is vitally important to the growth of the community. Rick Morgan noted that the changes in State law basically replaced the word"blighted" with "economic revitalization areas" . He believed that tax abatement should be used as a small business incentive. Non-industrial and non-manufacturing employers should be reviewed on a case by case basis.. He felt that the current ordinance was a workable document and suggested that only the number of jobs be reduced from the present number of 100 . He thought that • Mishawaka is unique by not offering tax abatement. Tax abatement procedures dog send signals to the business community. . Several Michigan companies are looking to Indiana and tax abatement should be used as a positive incentive. He also suggested that losing all of the retail development to the City of Mishawaka should also be carefully reviewed. He thought that financial statement: from developers would not be necessary. • • .... Pull. . ►Vallw/b• CO. Page 2. Councilman Puzzello thought the Council should look at the number of new jobs which would be created and that incentives for hiring South Bend. employees be considered. . Councilman Crone thought the Council should go back to the beginning. She felt that tax abatement should be used as an incentive to develop blighted areas. Tax abatement must be weighed in light of its ' affect on the tax base. Jon Hunt thought that information from Joe Nagy's office would be needed to review the trends in assessed valuations over the past five years . Kevin Butler expressed the viewpoint that very few businesses are induced to come to South Bend just because of tax abatement It becomes an incentive when developers are comparing South Bend to other locations. Councilman Voorde thought that Michigan City was "reckless" by labeling their entire City as a tax abatement impact area. Councilman Beck requested that each Councilmember look at their entire district to determine geographic areas which may qualify for tax abatement. Councilman Taylor emphasized that the Council has the final authority and that positive incentives should be used. The Council Attorney requested that a current map of the tax impact areas would be helpful to the Council as well as the annual report. The Committee was advised that this information would be ready within the next 2-3 weeks. Ann Kolata noted that 26 letters have been sent to owners of real or personal tax abatement properties requesting them to file their annual report. Jon Hunt emphasized that the council must carefully review changing from blighted to a general program of assistance for businesses, and changing from manufacturing to servicing. He would prefer not to be involved in the review process if such changes take place. Eugenia Schwartz noted that the Council did not participate in determining redevelopment areas, however it did play an instrumental role in making the preliminary determination of blight in economic revitalization areas. Councilman Crone questioned how business and financial records could be kept confidential throughout the review. Both she and Councilman Voorde saw no need for such a requirement. Councilman Braboy stated that she felt South Bend needs more retail shops especially in the downtown., She felt that more information was needed regarding programs assisting small businesses. Councilman Puzzello suggested that each of the Councilmen reduce their suggestions to writing. Councilman Beck expressed concern about the job criteria. • Page 3. I Councilman Braboy thanked everyone for coming and requested that . they send any suggestions directly to her or the City Clerk. The Committee then reviewed Resolution 9C which would designate the property located at 419 through 423 North Michigan Street as an economic revitalization area for real property tax abatement. It was noted that this was the T.Brooks Brademas project. One and one-half million dollars would be spent on rehabilitation and 125 new jobs would be created. Councilman Taylor made a motion second by Councilman Beck that Resolution 9C go to Council favorably. The motion passed unanimously. There being no further business to come before the Committee the meeting was adjourned at 5: 35 p.m. Respectfully submitted, Eugenia Braboy, Chairman