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HomeMy WebLinkAbout12-07-89 Human Resources & Economic Development ffinmmttn Evart HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Go the fdnttunott Omura of tide Mttg of 601411 finite The December 7, 1989 meeting of the Human Resources and Economic Development Committee was called to order at 4: 15 p.m. in the Council informal meeting room by its Chair Person, Council Member Steve Luecke. Persons in attendance included Council Members: Zakrzewski, Niezgodski, Coleman, Luecke, and Voorde; Howard Bressire, Richard Maginot, Bruce Bancroft, Carter Wolfe, Hedy Robinson, a concerned citizen, and Kathleen Cekanski- Farrand. Council Member Luecke began the meeting by giving a brief background overview to the ongoing discussions with regard to amending the current tax abatement ordinance. He noted that discussions began approximately one year ago. He also advised the persons present that a Bill had been filed by title only. He noted that he would recommend that once the Ordinance is acted upon by the Council, that the correlative information provided by the City Clerk's Office as well as the Department of Redevelopment be separated. He noted that currently all information regardless of the type of abatement requested is provided in one basic handout. He recommended that several booklets be prepared, one for residential, one for office and retail, etc. , and one for warehousing. He noted that there should also be a separate publication addressing the procedures for personal property tax abatement requests. During the course of the meeting, several documents were provided to the committee, namely a memorandum dated September 8, 1989 addressing proposed changes to the tax abatement ordinance, recommendations of Center City Associates, Inc. dated November 1, 1989, a map addressing tax abatement impact areas, a map addressing "Central and Neighborhood Business District Tax Abatement Areas, " a map addressing Economic Development Target Areas dated January 1986, " a map addressing "Neighborhood Revitalization District (NRD) , " a map addressing the "Urban Enterprise Zone dated April 1987, " (copies of each attached to the original of the minutes) . The committee then reviewed each of the proposed tax abatement changes as set forth in the "Summary of Proposed Revisions to the Tax Abatement Ordinance" which is attached to the September 8, 1989 memorandum. Human Resources and Economic Development Committee December 7, 1989 Page 2 The first area discussed was residential development. Council Member Luecke noted that single family residential abatement would be allowed as set forth in the summary. He noted that he believes that changes to the state law addressing the tax sale requirements as well as the governmental body with regard to purchasing from such an entity should be reconsidered. He stated that he believes that such requirements eliminate such abatements in the older neighborhoods. Council Member Luecke then reviewed the multi-family proposals. He noted that Center City suggested that a 20% limit be made available for low and moderate income (see their memorandum of November 1, 1989) . Council Member Luecke voiced concern with regard to such a requirement in light of the fact that he believed it would be a disincentive in the older neighborhoods. Mr. Bancroft noted that this position was not unanimous. He did voice concern, however, with regard to those projects which have market rent apartments. Council Member Voorde voiced concern with regard to the 20% requirement with regard to a three year tax abatement request. Following further discussion Mr. Carter Wolfe withdrew the 20% request with regard to low and moderate income. It was also noted that perhaps tighter language in the actual resolutions addressing tax abatement for each project be considered. Council Member Luecke noted that a similar process is being used in Indianapolis. Mr. Bancroft suggested that such a concept would be a responsible thing to follow up on if at all possible. Council Member Luecke and the Council Attorney stated that they are in the process of pursuing the concept further. The committee then reviewed the proposed changes with regard to office development (see Summary of Proposed Revisions to Tax Abatement Ordinance) . Council Member Zakrzewski voiced concern with regard to the elimination of the business strips. He specifically pointed to the Whiteford building and other areas along Western Avenue. Council Member Niezgodski voiced similar concern with regard to the elimination of such business strip and specifically pointed out Lincolnway West and Western Avenue. He stressed that the major area for the City to grow is West and voiced concern to eliminate this development tool. Human Resources and Economic Development Committee December 7, 1989 • Page 3 Council Member Luecke stated that he believed that if the tool is not encouraging development, then it should be disbanded. Council Member Voorde, however, questioned how newly annexed areas would be treated under the new plan. Council Member Lucke stated that based on prior discussions with the individuals he has been meeting with including the Council Attorney, that it was their recommendation that language be included so that the Common Council could consider projects, on a project by project basis, which were outside of the criteria set forth in the Ordinance. Carter Wolfe stated that the "extraordinary project" concept should be considered. Council Member Zakrzewski stated he would like the business strips to be retained and designated in the tax abatement impact area. Council Members Voorde and Niezgodski agreed. Council Member Coleman took no position on this item. Mr. Howard Bressire of the Industrial Foundation noted that the 30 acres on the west side have been set aside for office development and an additional 30 acres have been set aside for manufacturing and warehousing. Strict criteria would be involved with no metal buildings allowed. To lakes would be involved and currently the land is zoned industrial. It is proposed that restrictive covenants would be used throughout the development of this land. Mr. Bressire further stated that job creation and money from outside of the community coming into the city should be the basic criteria for tax abatement. Mr. Carter Wolfe stated that tax abatement generally should be stricter. Mr. Bruce Bancroft suggested changes to the square footage requirements. After discussion Council Member Luecke reviewed the summary (see attached Summary with new square footage requirements) . The Council then reviewed the mixed use criteria and the institutional development. It was suggested that the word "etc. " be struck and that the primary focus of the institutional developement tax abatement be on daycares and educational facilities. The Committee then reviewed industrial development. Council Member Luecke reviewed the overall concept and incorporated the idea that if a developer would petition for both real and personal tax abatement, that if both were granted that the category lower in tax abatement be given. For example Human Resources and Economic Development Committee December 7, 1989 Page 4 if personal property was approved for abatement, and if the project qualified for a ten year abatement, the project would be approved for a six year abatement. Council Member Niezgodski stated that at initial review he liked the concept. Council Members Voorde, Zakrzewski, and Coleman voiced concern and stated it may result in a competitive disadvantage. Hedy Robinson agreed that it might be a competitive disadvantage. Following lengthy discussion, Council Member Luecke suggested that the concept be dropped. Council Member Luecke then reviewed the chart on real property tax abatement areas of investment. Warehouse development was then discussed. The question over job creation being used as a criteria has been included. The concerned citizen attending the meeting thanked the Council for having taken the time to review these important concepts. Council Member Luecke stated that a draft of the Ordinance would be prepared to be reviewed with members of the redevelopment staff. He noted that Mr. Jon Hunt would have been present, however, was absent due to illness. Following further discussion the meeting was adjourned at 6: 00 p.m. Respectfully submitted, Council Member Steve Luecke, Chair Person Human Resources and Economic Development Committee SL:srk Attachments