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HomeMy WebLinkAbout10-10-88 Human Resources & Economic Development S WS Otnmmttmrt Report HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Ws tipe Comm Council of tipe Q ttag of basal! fiend: The October 10, ' 1988 meeting of the Human Resources and Economic Development Committee was called to order by its Chairman Councilman Steve Luecke at 4:30 p.m. in the Council informal meeting room. Persons in attendance included Councilmen: Luecke, Niezgodski, Soderberg, Puzzello, Slavinskas, Zakrzewski, Coleman, and Duda; Hedy Robinson, James Wensits, Dick Maginot, Issiah Jackson, Mr. John Hansen, Mr. Delmar Richmond, Mr. Mike Boehm, Mr. Pete Adams, Mr. Dave Behr, and Kathleen Cekanski-Farrand. Councilman Luecke noted that- Resolution No. 88-68 would be continued until October 24, 1988 since there is no lease agreement signed yet between the owners of the JMS Building and Legal Services. Councilman Luecke further noted that Resolution Nos. 88-76 and 88-77 involving South Bend Lathe would also be continued until the meeting of October 24, 1988. It was noted that this continuance is necessary since the Redevelopment Commission must act on appropriate resolutions through that body before the Common Council may act. The committee then reviewed Resolution No. 88-73 which would designate the area commonly known as 1305 Prairie as an economic revitalization area for a three year real property tax abatement. The petitioner South Bend Scrap and Processing Division of Sturgis Iron and Metal Company, Inc. was represented by Mr. Delmar Richmond, Secretary-Treasurer of Sturgis Iron and Metal Company, Inc. with offices in Sturgis, Michigan. He noted that currently the South Bend location has 109 employees and that over the next two years they hope to reach 200 employees. He noted that the South Bend plant was purchased by Sturgis Iron in May of 1987. Upon questioning from Councilman Luecke with regard to the "manufacturing qualification", Mr. Richmond explained that the South Bend Division deals with ferris and non-ferris metals. They service 95% of the industrial accounts in the City of South Bend. The building proposed is for brass, aluminum, and exotic metals. The metals brought into the facility are sorted, grated and then shipped out. He noted that they must be processed in a product that is marketable and usable by other customers. Councilman Duda questioned whether the petitioner was, in fact, a "reprocessor" or a Manufacturer since much of the work appears to be recycling in nature. Mr. Richmond assurred the Council that they met Human Resources and Economic Development Committee 10-10-88 Page 2 the definition of manufacturing and noted that the standard industrial classification group number was number 33 "primary metal industries" and that the standard industrial code is number 5093 . Councilman Zakrzewski questioned whether the south side of the existing building would meet all of the footage restrictions established by the former Council. Mr. Richmond stated that the existing building as well as the new structure would meet all existing limitations set forth by the Common Council. Councilman Luecke thanked Mr. Richmond for his explanation and assurred him that the Council was merely doing its duties under State and Local laws with regard to assurring that each petitioner meets all of the qualifications under the tax abatement laws. Councilman Luecke also noted that the resolution would require an amendment in the title as well as in section 6 to incorporate the three year designation. A letter dated September 23, 1988 was also given to the Council (copy attached) as well as the report from the Department of Redevelopment (copy attached) . Following further discussion Councilman Slavinskas made a motion seconded by Councilman Duda that amended Resolution No. 88-73 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 88-74 which is a tax abatement request for a three year real property for the property located at 2750 Foundation Drive. The committee also reviewed simultaneously Resolution No. 88-75 which is a five year personal property request for the property located at 2750 Foundation Drive. Mr. John Hansen, an attorney, represented the petitioner. He noted that the petitioner proposes to construct a 20,400 square foot building on 2.47 acres of land. It would be used as an office space as well as a production line to manufacture custom stained glass plaques. The project will created six new permanent full time jobs. Mr. Mike Boehm noted that the petitioner represents a "home town success story." He stated that the owners of the business struggled from 1980 through 1985. They currently have 17 employees and hope to hire six additional employees. They will be moving from Monroe Park to the Industrial Park. Mr. Pete Adams then showed examples of the quality of work done by "Creative Glass". He noted that the company has received the exclusive rights to manufacture such glass plaques for all of the 28 NFL teams. They also have rights with regard to various colleges and universities throughout the country. He noted that they are involved with job G ) Human Resources and Economic Development Committee 10-10-88 Page 3 training programs and have hired several Vietnamese individuals. Wages average between $6.25 to $9.75 per hour. Mr. Issiah Jackson of the Mayors Minority Affairs Council then asked several questions of the petitioners. Following several supportive comments with regard to the proposed petitions, Councilman Coleman seconded by Councilman Slavinskas that Resolution No. 88-74 be recommended favorably to Council. The motion passed. Councilman Coleman then made a motion seconded by Councilman Duda that Resolution No. 88-75 be recommended favorably to Council. The motion passed. Councilman Luecke noted that Resolution Nos. 88-74 as well as 88-75 would need amendatory language since each resolution eliminated a section which is required. He noted that that motion would be made at the time of the regular Council meeting. The committee then reviewed Resolution No. 88-24 which is a request for a three year real property tax abatement for the property located at 614 North Michigan Street. Mr. Dave Behr noted that he had been before the committee several times on behalf of the Holladay Corporation with regard to the "Memorial Skyway Plaza" project. He noted that the completion date is anticipated to be April of 1989. Councilman Luecke noted the history of several continuances in light of the fact that the Council had been considering whether to expand the district area. Following comment, Councilman Coleman made a motion seconded by Councilman Slavinskas to reaffirm the favorable recommendation previously given by the committee to Resolution No. 88-24. The motion passed. Councilman Luecke noted that the Holladay Corporation's petition for 614 North Michigan would realize $74,000. 00 in taxes and that a total of $146, 000.00 would be abated. Councilman Soderberg complimented the Holladay Corporation on the development of the old I & M building now known as the "Colfax Place". Councilman Luecke then noted for the record that before a tax abatement resolution would go on the Common Council ! 0 , Human Resources and Economic Development Committee 10-10-88 Page 4 agenda for a regular council meeting, that all material must be filed with the Clerk's Office. This would include the report from the Redevelopment Commission on each proposed real or personal tax abatement request. There being no further business to come before the committee, the meeting was adjourned at 5: 05 p.m. Respectfully submitted, Councilman Steve Luecke, Chairman Human Resources and Economic Development Committee SL:srk Attachments