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HomeMy WebLinkAbout07-27-87 Human Resources & Economic Development OiIItntntllrr itrpor1 A HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE cin the Olummnn Mount-11 of the City of Oxndli Ned: The July 27 , 1987 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 Serge, Braboy, Beck, Puzzello, Taylor, Zakrzewski, Paszek, Barcome, and Voorde; Loretta Duda, Jon Hunt, Elizabeth Leonard, Betsy Harriman, Sherry Shane , Ray Need, Ernest Szarwark , Richard Lutin, members of the news media, and Kathleen Cekanski-Farrand. Councilman Braboy noted that there were several tax abatement issues on the agenda for review and recommendation. The Committee then reviewed Resolution No. 87-66 which was a petition for real property tax abatement for the property located at 701 South Chapin Street. Mr. Jon Hunt reviewed the report (attached) from his department. Mr. Szarwark of the Barnes and Thornburg noted that this was a petition on behalf of Allied White Farm New Ideas and would be for a three (3) year real property tax abatement. He noted that he would have Mr. Donald, Gordan, Senior Vice President of Allied , in attendance at the regular meeting of the Common Council.: The Committee then reviewed Resolution No. 87-67 which was a petition for personal property tax abatement for the property located at 701 South Chapin Street. Mr. Jon Hunt again reviewed . the report from his department (copy attached). Mr. Szarwark noted that 190 individuals are currently employed. Approximately 12-15 new jobs would be created in the warehousing division with some of the marketing individuals in South Bend being relocated to the New Idea plant in Ohio. Upon questioning by Councilman Voorde, it was noted that the area in question is within the Urban Enterprise Zone and that Allied White Farm is a leading contributor in this area. It was further noted that the personal property tax abatement would be for a period of five (5) years., Following further discussion by the Committee , Councilman Taylor made a motion , seconded by Councilman Puzzello , that Resolutions No. 87-66 and No. 87-67 be recommended favorably to Council . Prior to the vote on the bill , it was noted by the Council Attorney that there would be a substitute version of Resolution No. 87-67 to correct a typographical error within that resolution. The motion passed unanimously. Minutes/Human Resources and Economic Development Committee July 27, 1987 Page 2 The Committee then reviewed Resolution No. 87-68 which was a petition for personal property tax abatement for that property located at 220 West Eckman Street. Mr. Ernest Szarwark, the attorney for petitioner Sibley, noted that between 60-75 new jobs would be created at that facility. He further noted that this would be a five (5) year abatement for personal property. Mr. Ray Need from Sibley was in attendance. The Council Attorney noted that there would be an amendment by substitution to correct a typographical error within the resolution. Mr. Jon Hunt also reviewed the report from his department (copy attached). Following further discussion, Councilman Taylor made a motion, seconded by Councilman Puzzello, that the amended version of Resolution No. 87-68 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 87-65 which was a petition for real property tax abatement for that property located at 516 South Michigan Street. Mr. Richard Lutin , the owner of the property , then briefly described the area in question. He noted that he plans to have a music store in the facility which was formerly the "Fat Daddy' s" building. He further indicated that he currently operates a music store in Niles, Michigan. Mr. Jon Hunt then reviewed the report from his department (copy attached) on the petition. It was further noted that the petition was for a six (6) year real property tax abatement. Councilman Voorde questioned the parking situation, and it was indicated by the petitioner that there was on-street parking and that he was considering the vacation of an alley in the area. Councilman Braboy questioned the response to the questions regarding minority hiring and was quite concerned over his response of "minimal". Mr. Lutin clarified that he would hire a total of 2-3 employees at the facility. The Council Attorney then indicated to the petitioner that there would be several corrections which would be necessary in order for the resolution to qualify for real property tax abatement. She made the following proposed amendments: - In Section II , the words "five (5)" be deleted and, instead, that "two (2)" be inserted; Minutes/Human Resources and Economic Development Committee July 27, 1987 Page 3 - That present Section IV be renumbered V and that new Section IV read as follows: The abatement deduction shall be for six (6) years. This determination was made under the authority of I.C. , 6-1.1- 12 . 1-3 . Following further discussion by the Committee, Councilman Puzzello made a motion, seconded by Councilman Taylor, that the amended version of Resolution No. 87-65 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 87-69 which would authorize the Mayor to submit an application to the Indiana Department of Commerce for a State Industrial Development grant on behalf of Intracomp , Inc . Sherry Shane gave a brief description of the petition. She noted that they were seeking a $75 , 000 grant from the State which would be matched by the City as follows: $37,500 from the City of South Bend, Indiana; and $37,500 from the Industrial Fund She noted that the monies would be used for street , water and sewer improvements in the Industrial Park Phase IV for improve- ments along Point Meridian Drive. She further indicated that Intracomp , Inc. was located within South Bend but primarily had export sales outside the South Bend area. Approximately thirty (30) new jobs would be created at the facility. Following further discussion, Councilman Taylor made a motion, seconded by Councilman Beck, that Resolution No. 87-69 be recommended favorably to Council. Under miscellaneous business, Councilman Braboy indicated that the 1988 Community Development Block Grant application (copy attached) should be reviewed by the Committee. Elizabeth Leonard was available for review and comments. However, in light of the late hour and the upcoming Council meeting, there was not sufficient time to review the grant application in detail. % Minutes/Human Resources and Economic Development Committee July 27, 1987 Page 4 Following discussion by the Committee, it was recommended that a meeting of the Human Resources and Economic Development Committee be held on Thursday , July 30, 1987 at 4 : 30 p.m. in the Council informal meeting room to review the grant application and the proposed 1988 CDBG budget. It was indicated that the Council Attorney could not be in attendance at this Committee meeting as she has a meeting of the Board of Governors at that same time. There being no further business to come before the Committee, the meeting was adjourned at 4:30 p.m. Respectfully submitted, Councilman Eugenia Braboy, Chairman