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HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE
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The July 25, 1988 meeting of the Human Resources and
Economic Development Committee was called to order by its
Chairman Councilman Steve Luecke at 2:45 p.m. in the Council
informal meeting room.
Persons in attendance included Councilmen: Slavinskas,
Luecke, Niezgodski, Duda, and Coleman; Kathy Baumgartner,
Eugenia Schwartz, Ann Kolata, Hedy Robinson, Max Moore,
Ernest Szarwark, Mike Seitz, Mike Dobson, Adam Kristic,
members of the news media, and Kathleen Cekanski-Farrand.
Councilman Luecke noted that he received a letter from the
Hollady Corporation requesting that Bill No. 38-88 which is
requesting an extension of the boundaries of the tax
abatement impact area and Resolution 88-24 which is
requesting real property tax abatement consideration for 614
North Michigan Street, be continued until the Council
meeting of August 8, 1988. Councilman Luecke noted that
this extension was being requested so that the report from
Center City Associates could be reviewed prior to the review
of the extension request of the tax abatement boundaries.
Discussion then took place with regard to the procedure that
should be followed with regard to the committee for
confirming tax abatement resolutions. The Council Attorney
recommended that in cases where there were no material or
substantial changes from the declaratory resolution (whether
it be for real or personal property tax abatement) , that the
• petitioner need not be present for the committee meeting at
the time of hearing the confirming resolution. However, if
there would be substantial or material changes their
presence would be requested and proper notice issued by the
City Clerk's Office. Discussion took place on this
recommendation. Councilman Coleman then made a motion
seconded by Councilman Slavinskas recommending approval of
the Council Attorney's recommendation. The motion passed.
A question was then raised whether the petitioner's presence
would be needed at the caucus meeting prior to the regular
hearing for a confirmatory resolution. Discussion took
place on this question and it was decided informally by the
Committee that the petitoiner would not have to attend the
causus meeting unless specific notice was given otherwise.
Councilman Luecke noted that the petitioner and legal
counsel for the confirming tax abatement resolutions for Art
Iron were present and then proceeded ahead on Resolution
Number 88-49 which is a confirming resolution for a three-
year real property tax abatement for the property located at
1020 High Street and Resolution Number 88-50 which was a
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five-year personal property tax abatement for the property
located at 1020 High Street. Eugenia Schwartz noted that
the petitioner had been excavating in the area for
approximately one month. A question was raised by
Councilman Luecke with regard to the legal description and
Mrs. Schwartz stated that she would verify the exact
property which it covered and would update him prior to this
evening's regular Council meeting.
Following further discussion Councilman Coleman made a
motion seconded by Councilman Slavinskas that Resolution
Numbers 88-49 and 88-50 be recommended favorably to Council.
The motion passed.
Councilman Luecke then brought to the Committee's attention
Resolution Number 88-52 which was requesting a five-year
personal property tax abatement for Adams Engineering, Inc.
for the property located at 1702 West Washington Street.
Hedy Robinson reviewed the report from the Department of
Economic Development dated July 20, 1988 (copy attached) .
Mr. Ernest Szarwark, the Attorney for the petitioner, noted
that his client makes machines which makes other machines.
They are planning to add new machines to the facility. They
sell the machines throughout the United States as well as to
such countries as France and Germany. Competition from
Japan and companies in the State of Michigan is currently
taking place.
Councilman Luecke questioned whether there are any other
companies that make similar types of machinery in South Bend
and was advised that there were not.
Councilman Slavinskas spoke in favor of the proposed tax
abatement and referenced a patent which the petitioner has.
Following further discussion Councilman Slavinskas made a
motion seconded by Councilman Duda that Resolution Number
88-52 be recommended favorably to Council. The motion
passed.
Councilman Luecke then brought to the Committee's attention
Resolution Number 88-53 which was requesting a six-year real
property tax abatement for Westco Phillips 66 for the
property located at 3417 Western Avenue.
Hedy Robinson reviewed the July 20, 1988 report from the
Department of Economic Development (copy attached) .
Mr. Mike Dobson, a representative of the petitioner, stated
that the gasoline station was built in 1964 and was
purchased by his company in 1985.
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Upon questions from Councilman Luecke the Committee was
advised that the automatic car wash would be in service and
that the 850 square foot store would also be renovated and
used. Mr. Dobson noted that his company owns 42 other
facilities two of which have closed.
Councilman Luecke questioned whose responsibility it was for
the buried tanks when a facility closes and Mr. Dobson
advised him that all such tanks would be removed in light of
potential environmental problems.
Councilman Coleman noted that all owners of service stations
should be concerned about the environment and that hopefully
the message to remove such tanks would be followed when any
such stations go out of business and are abandoned.
Following further discussion Councilman Coleman made a
motion seconded by Councilman Slavinskas to recommend
Resolution Number 88-53 favorably to Council. The motion
passed.
The next item on the agenda was Bill Number 32-88 which
would appropriate $53, 000.00 from the U.S. Department of
Housing and Urban Development emergency shelter grant
program. Kathy Baumbgartner and Ann Kolata recommended that
this Bill be continued until the August 8, 1988 meeting of
the Common Council since the zoning issue had not be
resolved.
Councilman Slavinskas noted that the Council should study
future tax abatement considerations when a petitioner
requests tax abatement for a facility that is run down but
could have been maintained on a routine basis and now seeks
tax abatement to upgrade the facility. It was also noted,
however, that often times the new owner was not responsible
for the run down condition but that the new owner should
have taken into consideration the condition of the building
as a part of the purchase price.
There being no further business to come before the
Committee, the meeting was adjourned at 3:25 p.m.
Respectfully submitted,
Councilman Steve Luecke, Chairman
Human Resources and Economic Development Committee
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