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HomeMy WebLinkAbout05-09-88 Human Resources & Economic Development tuntintttrn &pert Wu tke &mown Coiuutt of tip Mtn of efnutil Human Resources and Economic Development Committee The May 9, 1988 meeting of the Human Resources and Economic Development Committee was called to order by its Chairman Councilman Steve Luecke at 5: 00 p.m. in the Council informal meeting room. Persons in attendance included Councilmen: Luecke, Niezgodski, Soderberg, Puzzello, Slavinskas, Zakrzewski, Coleman, Duda, and Voorde; Jon Hunt, Hedy Robinson, Ann Kolata, Dick Nussbaum, Ken Fedder, Gerald Petznick, Jim Wensits, Dick Maginot, Mark Hunter and Kathleen Cekanski- Farrand. Councilman Luecke stated that there were several items on the agenda for review and recommendation. He then called upon Mr. Jon Hunt to summarize Resolution No. 88-22. Mr. Hunt stated that this is a confirming Resolution on the Can American Project to be located at East LaSalle and the East Raceway. He stated that this is a ten-year abatement and that the project has not substantially changed since the presentation given to the Council approximately two weeks ago. He also noted that the next deadline to be met by the petitioner would be May 27, 1988. Councilman Coleman then made a motion seconded by Councilman Slavinskas that Resolution No. 88-22 be recommended favorably to Council. The motion passed. The committee then reviewed Resolution No. 88-23 which would designate the property located at 2302, 2304, and 2306 Western Avenue as an Economic Revitalization Area. Hedy Robinson reviewed the report from the Department of Economic Development (copy attached) . Mr. Ken Fedder, the Attorney for Mr. Larry Nagy, explained that this would allow him to expand his automobile repair operation. He believed that it was an asset to the Western Avenue Business Association. Councilman Luecke stated that he believed that this was a great project and that the committee should act on it favorably. The Council Attorney noted that she had prepared a substitute resolution in conformity with the new State law. � t Following further discussion, Councilman Coleman made a motion seconded by Councilman Voorde that the substitute version of Resolution No. 88-23 be recommended favorably to Council. The motion passed. Councilman Luecke noted that the City Clerk's Office had received work from the petitioner of Resolution No. 88-24 that it requests that this Resolution be heard at the May 23, 1988 Council meeting. The report on that Resolution would then be heard on May 23rd as oppossed to this meeting. The committee then reviewed Resolution No. 88-25 which would designate the property commonly known as 2810 Foundation Drive as an Economic Revitalization Area for purposes of personal property tax abatement. Hedy Robinson reviewed the attached report from the Department of Economic Development. Councilman Luecke noted that there should be a correction to the cover letter and that it should read 1 million dollars in the letter. Mr. Gerald Petznick, the plant manager, briefly summarized the request. Mr. Mark Hunter, the financial manager, also participated in the presentation. He noted that the building is located at the corner of Boland and Foundation Drive and that they are leasing the building. He noted that they are one of the fortune 500 companies doing business as "SPX" Corporation. This would be the fifth location with regard to die cast materials. Councilman Soderberg inquired as to why they selected South Bend, and the committee was advised that the City was well prepared in its presentation of why the business should locate here and was very informative with regard to the business incentives. Councilman Slavinskas questioned how many die cast machines could be located at this location and was advised that one would be located now but there was a capacity for 8 die cast machines. Fifteen new jobs would be created with a new payroll of $360,000.00. Councilman Luecke stated that our community needs new manufacturing jobs and was please to have this particular business in South Bend. The Council Attorney noted that she had prepared a substitute version of Resolution No. 88-25 which would be consistant with the State law and which would approve the 5- year personal property tax abatement. Councilman Coleman then made a motion seconded by Councilman Voorde that the substitute version of Resolution No. 88-25 be recommended favorably to Council. The motion passed. Councilman Luecke then stated that the City Administration had requested that there be a suspension of rules to allow 2 second and third readings and public hearing on Bill No. 29 88 which is a Bill to approve a lease for the Stanley Coveleski Regional Stadium between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. Mr. Richard Nussbaum stated that the City Administration is requesting a suspension of rules due to the fact that the hearing before the State Tax Commissioners has been moved up to May 20, 1988. He further stated that hearings had taken place before the Redevelopment Commission and the Park Board and all were favorable with regard to the lease agreement. Basically there would be three revenue sources namely the revenue from the stadium, the cable television revenues, as well as tax dollars. Mr. Nussbaum stated that revenues from the stadium are higher than anticipated and that on May 15, 1988 the City would be receiving a check from the team. The games are averaging approximately two thousands per game. He also stated that revenues have reached 60% of the $50,000.00 which is the number which must be met before the City receives increased proceeds from the team. Councilman Soderberg requested additional information with regard to this and Mr. Nussbaum stated that he would provide that material. Councilman Slavinskas voiced concern with regard to whether this is appropriate. Mr. Nussbaum stressed that this is a revenue bond and not a general obligation bond. Mrs. Kolata also stressed that this was a revenue bond. Councilman Slavinskas stated, however, that the technical aspects are often blured and that many times it may be perceived by the general public as a general obligation bond. Councilman Luecke had several questions to Mr. Nussbaum. He was advised that the House Ways and Means Committee will be providing further information on tax v. tax-exempt status in late May or early June. Several variables must be considered which include higher interest rates and the State cap. Councilman Duda questioned what the City's bond rating was and was advised by Mr. Nussbaum that it was an "A-1" rating. Councilman Zakrzewski questioned whether Mr. Dave Gogel is still employed by the City and working in Washington. Mr. Nussbaum believed that he was not but that he would check into that further. Total savings anticipated would be approximately $255,800.00 and may be greater if there is a tax exempt status. Following further discussion, Councilman Coleman made a motion seconded by Councilman Slavinskas that Bill No. 29-88 be recommended favorably to Council. The motion passed. 3 There being no further business to come before the committee the meeting was adjourned at 5:40 p.m. Respectfully Submitted, Councilman Steve Luecke, Chairman Human Resouces and Economic Development Committee SL:srk Attachment 4