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HomeMy WebLinkAbout10-08-90 Human Resources & Economic Development Human Resources and Economic Development Committee �o hit Mammon Olouncil of hi (Mg of Oana#I Stub: The October 8, 1990 meeting of the Human Resources and Economic Development Committee was called to order by it's Chairperson, Council Member Steve Luecke at 5: 00 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Slavinskas, Puzzello, Luecke, Zakrzewski, Voorde, Coleman, and Niezgodski; Ann Kolada, Jon Hunt, Ernie Szarwark, Mr. McCalley, and Kathleen Cekanski-Farrand. Council Member Luecke noted that the first item on the agenda was to review Resolution No. 90-47 which is a three year real property tax abatement request for the property located at 419 South Main. Ann Kolada reviewed the attached report from the ' Economic Development Department dated September 13 , 1990. It was noted that the property in question meets the requirements of the City for a three year real property tax. abatement. It was further noted that the title should be change to incorporate Briarwood/South Bend Partnership instead of the Social Security Adminstration. Mr. McCalley stated that the design of the building had been approved by the Design Review Committee. He noted however that landscaping was still to be approved. With the anticipated approval at this evenings meeting, it was hopeful that building could commence next week. Council Member Luecke formally noted that the Briarwood/South Bend Partnership must be properly incorporated at this evenings meeting in the Resolution. He also noted that this would be an 8, 000-square foot building and that at the last Common Council meeting the vacation of the public way was approved. In response to questions raised by Council Member Slavinskas it was noted that the Social Security Administration has a nine year lease for the property. The bidding on the job resulted in two or three other bids being received and that all were in response to specifications prepared by the Social Security Administration. Mr. McCalley noted that he believes that he got the overall bid because of it's location within the downtown and because it was located on a main thoroughfare. He also noted that the quote was on a per square foot dollar basis. The lease was signed approximately four months ago for 7, 600 net square feet with 8, 000 square feet being the entire building. For the past five months the specs have been reviewed and discussed with the Chicago GSA and the local Social Security office. He noted that the overall process began in November of 1989 . He stated that he incorporated a tax abatement into his overall bid. Council l Member Slavinska voiced concern with regard to the moving of thirty employees from one downtown location to another downtown location. Following further discussion, Council Member Voorde made a motion seconded by Counci Member Zakrzewski that amended Resolution 90-47 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 90-55 which is a three year real property tax abatement request for Nimit Industries, Inc. located at 2424 North Foundation Drive. The Committee also heard at the same time, Resolution No. 90-56 which is a five year personal property tax abatement for Nimit Industries located. at the same address. Ann Kolada reviewed the September 13, 1990 report from the Department of Economic Development. (Copy attached) . Mr. Ernest Szarwark of Barnes & Thornburg then reviewed the overall request. He noted that the five-million dollar figure in the report was incorrect. His client is in industrial coating industry. The Petitioner proposes to expand its present facility for the use of additional manufacturing space. The expansion will also include the purchase of new manufacturing equipment. The project will create ten new jobs which would be permanent and full-time and will maintain sixty existing permanent full-time jobs. The total project cost is estimated at two-hundred and fifty-eight thousand dollars ($258, 000. 00) including equipment. Mr. Szarwark noted that unfortunately, the Petitioner procurred a building permit prior to the filing of the tax abatement request for real property, therefore only a very small portion would qualify under the current City Code Regulations for three year property tax abatement. Council Member Luecke questioned whether the real property tax abatement request was really worth it since it was a minor improvement. Mr. Szarwark noted that the overall improvement to the building was major, however the majority of that work does not qualify under the current regulations. Following further discussion, Council Member Voorde made a motion seconced by Council Member Zakrzewski that Resolution No. 90-56 be recommended favorably to Council. The motion passed. Council Member Slavinskas then made a motion seconded by Council Member Zakrzewski that Resolution No. 90-55 be recommended favorbly to Council. The motion passed by a 3-2 vote with Council Members Voorde and Luecke in the minority. -2- Council Member Luecke noted that Resolution No. 90-52 and Resolution No. 90-53 requesting real and personal property tax abatement for Transient-Mix, Inc. have been requested by the Petitioner to be heard at the October 22 meeting. Council Member Luecke also noted that he had received a letter confirming the Petitioner's agreement to work with employment training services and therefore Resolution No. 90-54 a confirming tax abatement resolution for Tech Centers Buildings would be heard this evening. The Committee then reviewed Substitute Bill No. 79-90 which is a Bill approving the lease for certain land and public improvements between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. Ann Kolada then briefly summarized the lease. She noted that the overall Resolution and lease are related to the Airport 2010 Project. The overall purpose of the Resolution is for the Common Council to determine whether the lease is fair, reasonable, and in the best interest of the City. She noted that primarily the project would be for (1) the construction of internal roads, namely Northwest Loop, and Mayflower extension; (2) acquisition and relocation of approximately 10 parcels of land, nine of which are located around Old Cleveland Road with one on Bendix Drive; (3) Meridian Drive Point Veridian Lake; and (4) Brick and new Cleveland Road intersection. Approximately $6. 3 million in project cost are projected and that only $4.5 to $5 million could be prpoperly addressed based on revenue from T. I.F. utilizing as the base year March 1, 1989. Council Member Luecke stated that he would like maps of the area in question and Ann Kolada stated that she would provide them at the regular Council Meeting. He also questioned whether the Airport Authority would be willing to share the cost of some of the infrastructure improvements and Ann Kolada noted that this was currently not being considered in the first phase. Council Member Luecke suggested that it should be in future phases. Council Member Slavinskas was concerned over utilizing this vehicle for funding and therefore exposing the City to a potential tax if something would go wrong. Ann Puzzello noted that the size of the bond will be such so that the increment will be adequate to fund it. She also noted that this process was being recommended to the Council since their would be no debt reserve and therefore the City would be getting more in return for it's money. Council Member Puzzello and Council Member Luecke both -3- suggested that an overall meeting with the Council be held when Cole Associates is through with their design guidelines for the entire project. Council Member Slavinskas questioned whether there should not be three different authorities. Ann Kolada noted that administratively it might be more difficult to operate and manage the project if this was under the control of three such authorities. Following further discussion, Council Member Zakrzewski made a motion to recommend Bill No. 79-90 (Substitute version) favorably to Council. The motion failed for lack of a second. Therefore, Substitute Bill No. 79-90 resulted in having no recommendation formally made to the Common Council by the Human Resources and Economic Development Committee. There being no further business to come before the Committee, the meeting was adjourned at 6: 00 p.m. Respectfully submitted, Council Member Steve Luecke Chairperson, Human Resources and Economic Development Committee attachments -4-