HomeMy WebLinkAbout01-19-90 Human Resources & Economic Development ftnmmt#tn live #
HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE
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The January 19, 1990 meeting of the Human Resources and
Economic Development Committee was called to order at 4: 10:..
p.m. in the Council informal meeting room.
Persons in attendance included Council Members: Voorde,
Luecke, Puzzello, Slavinskas, and Zakrzewski; citizen
member Margot Doyle, Jon Hunt, Patrick McMann, Don Porter,
Ann Kolata, Jenny Pitts Manier, Eugenia Schwartz, Carter
Wolfe, Hedy Robinson, James Cook, and Kathleen Cekanski-
Farrand.
Council Member Luecke noted that the purpose of the meeting
was to continue the discussion with regard to Bill No. 119-
89 addressing tax abatement procedures. He noted that the
revised version of the Bill had been distributed to the
Council Members and other concerned individuals prior to the
meeting.
Council Member Luecke with the aid of flip charts then
summarized the basic changes to the proposed Bill. He
highlighted the types of real property tax abatement
consideration in the following areas: residential, office,
retail, mixed use, institutional, industrial, and warehouse.
He also summarized the personal property tax abatement
changes.
Considerable discussion and questioning of the various
component portions of the Bill then took place.
Mr. Patrick McMann of Project Future had several questions
with regard to the proposed procedures. He questioned
whether the procedures would increase or decrease tax
abatement requests. Council Member Luecke and Ann Kolata
both stated that the proposed procedures would strengthen
the City's ability to encourage development in certain areas
within the City. Mr. McMann stated that by eliminating ten
year tax abatement in the industrial and warehouse
classifications that he believed that it would not present
the City of South Bend with a "level playing field" when it
is in competition with other communities. He noted that
individual projects have a greater return on their
investment in these areas and therefore he believed the ten
year abatement should be continued.
Human Resources and Economic Development Committee
January 19, 1990
Page 2
Council Member Slavinskas stated that he would like to have
the ETS requirement for all types of tax abatement. He also
suggested changes to the industrial tax abatement procedures
especially in the UEZ and RBA. Mr. McMann also suggested
that the square footage requirements should be lowered for
the industrial classifications.
These comments were supported by Mr. James Cook, Margot
Doyle, Council Member Slavinskas.
Council Member Voorde believed that the procedure should be
liberalized to encourage more development throughout the
City but especially in the UEZ and the RBA.
Following much discussion Council Member Slavinskas made a
motion seconded by Council Member Voorde that section 2-82 . 1
be amended so that the six year real property abatement
would be based on new construction or rehabilitation of not
less than 5,000 square feet within the UEZ or RBA, and that
the ten year standards for new construction or
rehabilitation be for not less than 10, 000 square feet in
the UEZ or RBA. The motion passed.
Following further discussion Council Member Zakrzewski made
a motion seconded by Council Member Voorde that Section 2-82
addressing industrial developments City wide be amended by
lowering the square footage requirements to 10, 000 square
feet for new construction for three year tax abatement
consideration, to lower the six year general standards to
20,000 square feet, and to include a ten year standard for
new construction of not less than 30, 000 square feet. The
motion passed.
Following concerns raised by Council Member Slavinskas,
Council Member Voorde, and Mr. McMann; Council Member
Zakrzewski made a motion seconded by Council Member Voorde
that warehouse development addressed in Section 2-83 be
amended to provide that three year standards be for new
construction or rehabilitation of not less than 25, 000
square feet, six year standards for new construction or
rehabilitation be for not less than 50, 000 square feet and
that a ten year standard be added for new construction or
rehabilitation of not less than 100, 000 square feet. The
motion passed.
Following further discussion Council Member Slavinskas made
a motion seconded by Council Member Voorde that Section 2-
83. 1 be amended so that three year tax abatement
consideration would be given for any new construction or
rehabilitation in the EDTA, UEZ or RBA; that new
.Human Resources and Economic Development Committee
January 19, 1990
Page 3
I
construction or rehabilitation of 10,000 square feet or more
in the EDTA, UEZ or RBA be considered for a six year
abatement; and that a ten year abatement be considered for
rehabilitation or new construction of 20,000 square feet or
more in the EDTA, UEZ, or RBA. The motion passed.
Council Member Luecke then briefly reviewed the remainder of
the Bill in light of the lateness of the hour.
Following further discussion Council Member Slavinskas made
a motion seconded by Council Member Voorde that Substitute
Bill No. 119-89 be continued to the February 12, 1990
regular meeting of the Common Council. The motion passed.
Council Member Luecke stated that there would be an
additional meeting of this committee prior to that date to
have further discussion on the Bill. The meeting was
adjourned at 5:55 p.m.
Respectfully submitted,
Council Member Steve Luecke, Chair Person
Human Resources and Economic Development
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