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En the Qinmmnnn Qloiuwtt of the Qty of*meth Srnd:
HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE
The April 11, 1988 meeting of the Human Resources and
Economic Development Committee was called to order by its
Chairman Councilman Steve Luecke at 4: 00 p.m. in the Council
informal meeting room.
Persons in attendance included Councilmen:. Slavinskas,
Luecke, Niezgodski, Duda, Coleman, Soderberg, Zakrzewski,
and Voorde; Hedy Robinson, Ann Kolata, Jim Wensits, Dave
Behr, John Pfair, and Kathleen Cekanski-Farrand.
Councilman Luecke noted that the purpose of the meeting was
to discuss a proposed tax abatement with representatives of
the Holladay Corporation.
Councilman Luecke also noted that the minutes of last
meeting of the Committee were received and stand approved as
submitted. Mr. Dave Behr and Mr. John Pfair of the Holladay
Corporation then showed preliminary site plans prepared by
Leroy Troyer and Associates of the proposed four story
medical office building to be located on Michigan Street
across from Memorial Hospital. The area in question had the
former Travel Lodge Building on it which has since been
demolished. The representatives also showed a diagram of
the Memorial Skyway Plaza which would be a walk way to the
third story to the hospital building costing approximately
1/2 million dollars.
Mr. Behr stated that the Holladay Corporation has always
assumed that they would request tax abatement for the
project. He noted that the impact area ends of Marion which
is approximately one block away from the area in question.
He suggested a two square block enlargement of the tax
abatement impact area shown on yellow or a smaller area
lined in red on his diagram. (a copy of said diagram was
not left with the Committee)
Mr. Pfair stated that the project will go ahead whether tax
abatement is granted or not. He believed, however, that not
to grant tax abatement would send a mixed message to
developers. The building in question is 100% speculative
and would be at a rental of $16.50 per square foot. He
noted that a similar project, namely the River Glen building
was built in a similar manner in 1980. He further noted
that the building would be 100% medical office plus a
pharmacy and some shared services but all would be medically
oriented. He further added that fifteen new physicians over
the next three years would be brought into the communities
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specializing in specific areas. It was noted that
construction is hoped to begin within one week with delivery
of space by next January of 1989. Approximately $1.50 per
square foot would be added if the tax abatement would not be
granted.
Councilman Slavinskas noted that the tax abatement petition
must be filed before seeking a building permit in such
instances.
Councilman Voorde spoke in favor of tax abatement for the
area in question. Councilman Luecke, however, stated that
enlarging the impact area would send a mixed message to the
surrounding neighborhood. Councilman Coleman agreed with
Councilman Voorde that the boundaries should be extended to
Bartlett and that zoning should be used as a mechanism to
protect the surrounding neighborhood. Councilman Duda
preferred a three year tax abatement based on the concept of
the additional costs relative to the sky walk. She stated
that specific policies and procedures should be developed in
order to enlarge the current boundaries. The Council
Attorney specifically requested what duration of tax
abatement they were seeking that being 3, 6 or ten years.
The developers stated that they interested in any type of
tax abatement and then passed out a tax abatement proposal
for Memorial Sky way Plaza (copy attached) . The Council
Attorney further noted that the new Council members perhaps
should review the minutes of the rezoning hearing held last
fall on this same property. She also noted that to the best
of her recollection there were only two tax abatements
brought before the Council that were approved which were
granted based on extraordinary costs: one involving the
relocation of a retention basin and the other involving the
extraordinary costs involved with certain railroad
structures.
Councilman Slavinskas stated that he believed that tax
abatement should be used as an incentive to locate within a
specific area. The only possible tax abatement he would
consider is the possibility of the extraordinary costs of
the sky walk which may qualify for the minimum tax
abatement.
Councilman Luecke also stated that he may support the
proposed project as qualifying under the exceptions and
therefore may consider a three year tax abatement.
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Following further discussion it was suggested that this
topic be continued to next Monday's meeting April 18, 1988
at 4:00 p.m. The meeting then was recessed at 4:45 p.m.
Respectfully submitted,
Councilman Steve Luecke, Chairman
Human Resources and Economic Development
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Attachments
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