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HomeMy WebLinkAbout01-19-90 Human Resources & Economic Development ftnmmt#tn live # HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Mu tie Moulton atounrll of tip Qlitg of Snot: 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 SL:srk Attachments