HomeMy WebLinkAbout05-22-89 Human Resources & Economic Development flowsulat $rpurl
HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE
tit Gammon &until of tip ding Df$9th Snit
The May 22, 1989 meeting of the Human Resources and Economic
Development Committee was called to order by its Chair
Person Council Member Steve Luecke at 4:40 p.m. in the
Council informal meeting room.
Persons in attendance included Council Members: Luecke,
Zakrzewski, Niezgodski, Soderberg, Puzzello, Slavinskas,
Voorde, Duda, and Coleman; Hedy Robinson, Mr. Don Best,
Margo Doyle, James Wensits, and Kathleen Cekanski-Farrand.
The Committee initially discussed procedures relative to a
declaratory resolution and a confirming resolution with
regard to real and personal property tax abatement. Council
Member Steve Luecke noted that in two instances the Council
has held off on the confirming resolution. The first
involved the JMS Building annex where legal services was to
be the primary tenant, however, has declined moving to the
building as of this date. It is Council Member Luecke's
understanding that the confirming resolution will be
withdrawn at a later point in time. The second instance
involves the old Penney's building and the tenant use of
that building.
Council Member Luecke then noted that Resolution No. 89-48
which is a tax abatement petition filed by the South Bend
Redevelopment Commission on behalf of Niles/Washington
Associates for the property located at 115 North Niles
Avenue is requested to be continued for an indefinite period
of time.
The Committee then reviewed Resolution No. 89-40 which is a
tax abatement petition filed by the Industrial Foundation,
Inc. on behalf of Capital Associates, XVII for the property
located at 3600 McGill Street.
Hedy Robinson then reviewed the report. It was noted for
the record that there are two reports from the Department of
Economic Development those dated May 12, 1989 and May 18,
1989 (copy attached) . It was also read into the record by
Mr. Don Best that the amount of taxes to be abated according
to his calculations would be $126,296. 00 and the amount of
taxes to be paid would be $88,981. 00. These figures are
different than the revised figures included in the report of
May 18, 1989 by the Department of Economic Development.
Mr. Don Best showed architectural renderings of the proposed
facility. He noted that the overall effect would be keeping
a South Bend company here in South Bend. The proposed
211 W. Washington, Suite 2120, South berm, IN. 400vi
c) The tenant most seriously interested in leasing space is in
the aoaarel industry. The other tenants operations will fall
Human R2„sources and Economic Development Committee May 22, 89 Page2
tenant has signed a lease which reflects the tax abatement
requested. He noted that the tenant began in 1981 with four
employees utilizing approximately 1, 000 square feet. Today
the proposed tenant has 36 employees and is utilizing 10, 000
square feet and is in need of more space. He noted that
there is an option to purchase the building in six years.
Council Member Slavinskas commented that he questioned the
utilization of tax abatement to attract businesses to the
airport industrial park. He noted that he does not have
specific concerns with regard to the petition before the
committee, however, believed that tax abatement would be a
double-edged sword and believes that the policy needs to be
reconsidered. Mr. Don Best stated that if the buildings
were torn down in the Studebaker Corridor that that area
would be an ideal location. He further noted that the
parcel of land involved in the tax abatement petition is the
last one available in the Airport Industrial Park,
therefore, there would not be competition between the
Studebaker Corridor and the Airport Industrial Park.
Following further discussion Council Member Zakrzewski made
a motion seconded by Council Member Puzzello that Resolution
No. 89-40 be recommended favorably to Council. The motion
passed.
There being no further business to come before the
Committee, the meeting was adjourned at 5: 05 p.m.
Respectfully submitted,
Council Member Steve Luecke, Chair Person
Human Resources and Economic Development Committee
SL:srk
Attachment
211 W. Washington, Suite 2120, South bena, 1B. iiaovr
c) The tenant most seriously interested in leasing space is in
the apparel industry. The other tenants operations will fall