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HomeMy WebLinkAbout02-13-89 Human Resources & Economic Development t maitre ippnrt HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Wi tip Comma Consul of tip (Mg of!marl, *nit The February 13, 1989 meeting of the Human Resources and Economic Development Committee was called to order by. it. Chair Person Council Member Steve Luecke at 4: 35 p.m. in the Council informal meeting room. Persons in attendance included Council 'Members: Luecke, Niezgodski, Soderberg, Puzzello,' Slavinskas, Zakrzewski, Duda, Coleman, and Voorde; Margo Doyle, Sherry Shane, Hedy Robinson, Eric Strom, Kevin Butler, Mr. W. H. Calvin Murdock, members of the news media, and Kathleen Cekanski- Farrand. Council Member Luecke introduced Margo Doyle, the new citizen member of the committee. First item on the agenda was to review Bill No. 5-89 which would appropriate' $100, 500. 00 from the Economic Development State Grant ,. Fund to be administered by the Department of Economic Development of the City. Sherry Shane reviewed the Bill. She noted that a grant from the City of $100, 500. 00 would be loaned to Bangor Refrigeration Corporation for seven years at ,5% interest. The money will be used for the . purchase of machinery and equipment. The original grant is based on the project. Following further discussion Council Member Zakrzewski made • a motion seconded by Council Member Slavinskas that Bill No. 5-89 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 89-24 which would authorize the Mayor to submit an application to the Indiana Department of Commerce for the State Investment Incentive Program. Sherry Shane reviewed the resolution. She noted that the project is from Miles Laboratory which will be locating its recently acquired St. Louis operation to South Bend. The- Investment Incentive Grant will enable the City of South Bend to assist in the financing with a $150, 00 and a $150, 000 grant from the Business Development Corporation. The facility will be located at 4315 South Lafayette and should be completed in the fall of 1989. The monies are to be paid off within one year and the credit rate of interest is being negotiated. Following further discussion Council Member Slavinskas made a motion seconded by Council Member Zakrzewski that Resolution No. 89-24 be recommended favorably to Council. The motion passed. Human Res. and Economic Devel. 2-13-89 Page 2 The Committee then reviewed Resolution No. 89-21 which is a tax abatement request for property located at Lafayette Street between Stull and Broadway Streets for Murdock & Sons Construction, Inc. Hedy Robinson reviewed the report from the Department of Economic Development. Mr. Murdock then reviewed his real property tax abatement request. He stated that currently there operations have outgrown their current facilities and they are doing business throughout the State of Indiana, Michigan and Chicago. Last year 185 were employed with 60% concentrated from the St. Joseph County area. The type of business the company is involved in is general, industrial and commercial construction. Council Member Zakrzewski complimented the petitioner on the project. It was noted that the new structure would have a brick venier exterior. Council Member Luecke then provided copies of Resolution No. 868 adopted by the South Bend Redevelopment Commission which granted a six year real property tax abatement (copy attached) . He noted that in light of this ruling by the commission that the Council could grant only a maximum of a six year abatement as oppossed to the ten year which was requested. Following further discussion Council Member Zakrzewski made a motion seconded by Council Member Slavinskas that Resolution No. 89-21 be recommended favorably as a six year real property tax abatement. The motion passed. The Committee then reviewed Resolution No's. 89-22 which is a six year real property tax abatement request and Resolution No. 89-23 which is a five year personal property tax abatement request both for Spin-Cast Plastics, Inc. Hedy Robinson then reviewed the report from the Department of Economic Developement (copy attached) . Mr. Kevin Butler, the attorney for the petitioner, introduced Mr. Eric Strom of the company. It was noted that the petitioner manufacturers molded plastic products and is in need of 65% more capacity at the current time. Mr. Butler further noted that the statement of benefits section on page one of the Department of Economic Development Report should be corrected to reflect 65 present full time jobs and 1 part time job. Following further discussion Council Member Zakrzewski made a motion seconded by Council Member Puzzello that Resolution Human Res. and Economic Devel. 2-13-89 Page 3 No's. 89-22 and 89-23 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, the meeting was adjourned at 5:00 p.m. Respectfully submitted, Council Member Steve Luecke, Chair Person Human Resources and Economic Development SL:srk Attachments