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HomeMy WebLinkAbout10-24-88 Human Resources & Economic Development enmmmee Report HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Ea t 4guut nou &mutt of tit Oitg of fPwld}p Ott& The October 24, ' 1988 meeting of the Human Resources and Economic Development Committee was called to order by its Chair Person Council Member Steve Luecke at 4:40 p.m. in the Council informal meeting room. Persons. in attendance included Court it Members: Luecke, Niezgodski, Soderberg, • Puzzello, Slavinskas, Zakrzewski, Coleman, Duda and Voorde; Kevin Hughes, Mr. Bhar, Mr. Larry Dawson, Mr. Ken Fedder, Mr. Isaiah Jackson, Mr. James Wensits, Elizabeth Leonard, Hedy Robinson, Jenny Pitts Manier, and Kathleen Cekanski-Farrand. The first item to be reviewed-was Bill No. 87-88 which would transfer $12,920.00 among various accounts within the Department of Economic Development. Elizabeth Leonard, Director for Financial and Program Management, stated that the transfer among various CDBG accounts- would permit the West Washington-Chapin Housing Fund to be increased and made available in the Housing Rehab Fund. Council Member Luecke noted that a public hearing had been held before the Citizens Advisory Council and recommended . favorably. He also briefly explained that the 312 Loan Program where loans are made to qualified home owners at 3% or 9% interest rates. It was noted that loans are currently pending. • Following further discussion Council Member Coleman made a motion seconded by Council Member Duda that Bill No. 87-88 be recommended favorably to Council. The motion passed. Council Member Luecke then noted that the petitioner for Resolution No. 88-68 which would confirm the declaratory resolution for a 6-year real property tax abatement request for the JMS Building rehabilitation requested that it be continued indefinitely since the lease with Legal Services had not been approved. Mr. Ken Fedder then reviewed Substitute Resolution No.' 88-76 which sought ten year real property tax abatement for South Bend Lathe, Inc. and Resolution No. 88-77 which sought a five year personal property tax abatement request for South Bend Lathe, Inc. , which is located at 400 West Sample Street. Hedy Robinson then reviewed the report of the Department of Economic Development (copy attached) . Mr. Fedder noted that 100 new jobs would be created and that 200 jobs would be maintained. It was noted for the record Human Resources and Economic Development Committee Cont'd page 2 that the Redevelopment Commission approved a Resolution since the area was within a TIF area. Mr. Fedder noted that the company was established in 1906 and became employee owned in 1975. He clarified that Mr. John Van Otterloo was the new CEO and was not the new owner. He stated that he would be available at the regular Council meeting this evening to address specific questions. Mr. Isaiah Jackson asked various questions with regard to minority highering practices. Mr. Fedder noted that the specifics could be detailed later this evening on that topic and that he would also defer questions raised with regard to the actual operations of the five divisions to later this evening. Council Member Luecke noted that Resolution No. 88-76 was in a substitute form since the original was filed on the old form. Following further discussion Council Member Coleman made a motion seconded by Council Member Duda that Substitute Resolution No. 88-76 be recommended favorably to Council. The motion passed. Council Member Coleman then made a motion seconded by Council Member Slavinskas that Resolution No. 88-77 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution Nos. 88-78 which requests a ten year real property tax abatement for Gordon Plastics, Inc. and Resolution No. 88-79 which requests a five year personal property tax abatement for Gordon Plastics, Inc. which is to be located on Technology Drive. Hedy Robinson then reviewed the report dated October 21, 1988 from the Department of Economic Development. (copy attached) Mr. Kevin Hughes of Project Future then introduced Mr. N. Norm Bhargava, a general partner of Bhar Association. He noted that his company is currently in a very strong growth position and provides for GM. He noted that GM has been mandated to cut down on the amount of vendors it utilizes and since this company quality control level is high and minority owned that it is in a key position. Mr. Larry Dawson, the plant manager, was also introduced to the Committee. Council Member Luecke was assured that the project would have no odors and that the plant would be moving from Buchanan, Michigan and would be expanding in South Bend. It was also noted that this company competes internationally. Ten presses would be used with two additional presses anticipated in the near future. it was also noted that Human Resources and Economic Development Committee Cont'd page 3 there is an additional plant in Fort Wayne, Indiana. Besides GM the other major customers include GE and the Department of Defense. Following further discussion Council Member Coleman made a motion seconded by Council Member Duda that Resolution No. 88-78 addressing the ten year real property tax abatement request be recommended favorably to Council. The motion passed. Council Member Slavinskas then made a motion seconded by Council Member Coleman that Resolution No. 88-79 requesting a five year personal property tax abatement be recommended favorably to Council. The motion passed. Council Member Luecke then noted that there was a request for a suspension of the rules to allow discussion of what would become Resolution No. 88-84. The Council Attorney noted that although the Resolution was prepared prior to the filing deadline of Wednesday, it had not been filed and therefore a suspension of the rules would be necessary. She then reviewed the letter dated October 19, 1988 and the proposed form of resolution. She noted that the resolution was needed in light of the State law change which required the merging of the functions staffs and facilities for employment and training services which are funded through the Job Training Partnership Act of 1982 and the Wagner- Peyser Act. Jenny Pitts Manier of the City Attorney's Office stated that similar resolutions had been passed by City of Mishawaka and St. Joseph County to amend the charter as well as to officially change the name. Following further discussion by the committee, Council Member Slavinskas made a motion seconded by Council Member Coleman that Resolution No. 88-84 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee the meeting was adjourned at 5:10 p.m. Respectfully submitted, Council Member Steve Luecke, Chair Person Human Resources and Economic Development Committee SL:srk Attachments