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HomeMy WebLinkAbout04-23-90 Human Resources & Economic Development er (gnmmittre &port HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE can the Common Utonmtl of t1r QIUj of l3uid1 Trod: The April 23, 1990 meeting of the Human Resources and Economic Development Committee was called to order by its Chairperson Council Member Steve Luecke at 4:45 PM in the Council informal meeting room. Persons in attendance included Council Members: Zakrzewski, Duda, Coleman, Luecke, Niezgodski, Puzzello, Slavinskas, Voorde; Hedy Robinson, Katie Humphreys, John Lesinring, James Kronk, David Norris, Ted Leverman, Karl Schramm, Don Porter, and Kathleen Cekanski-Farrand. Council Member Luecke noted that the first item to be reviewed by the Committee was Resolution No. 90-21 which is a request for a three year real property tax abatement for East Race Villa's for the property commonly known as 109 North Hill Street. Hedy Robinson then reviewed the report prepared by the Department of Economic Development dated April 19, 1990 and briefly summarized the project description, the real property abatement schedule, and the attached petition (all of which are attached hereto) . It was noted that the South Bend Redevelopment Commission approved Resolution No. 903 (copy attached) and it was also noted that Mr. Pal, the acting Building Commissioner prepared a report noting that the property in question is properly zoned for the proposed use. Council Member Luecke noted that the original property owner was Holladay Corporation. He also noted that the tax abatement request meets the Municipal Code requirements of Section 2-7 and therefore does qualify as a three year real property tax abatement since it would be within a blighted area. A site plan prepared by Peirce and Associates and a "Proposal by Schramm Development Company, Inc. , dated November 17, 1989" were then reviewed by the Committee. Mr. Schramm noted that the 14 condominiums would be of a townhouse style and would be located next to the Mint Julip Restaurant. He stated that the sales price would be in the high $60,000 range to the low $70,000 range. Council Member noted that he visited the Colfax townhouses and found them to be of fine quality and spacious. Mr. Schramm noted that the Mishawaka Development is slightly larger than the one proposed for South Bend and sees his market as being the single professional. ,t Human Resources and Economic Development April 23, 1990 Page 2 Following further discussion Council Member Voorde made a motion, seconded by Council Member Zakrzewski, that Resolution No. 90-21 be recommended favorably to Council. The motion passed. The committee then reviewed Resolution No. 90-20 which is a six year real property tax abatement request for 3-G Properties for the property known as 1111 South Main Street. Hedy Robinson then reviewed the report prepared by the Department of Economic Development date April 19, 1990 and briefly summarized the project description, real property tax abatement schedule, and the attached petition (all of which are attached hereto) . She also noted that the petitioner meets Municipal Code Section 2-82 with regard to qualifying for the real property tax abatement. She also noted that Resolution No. 931 approving the application for real property tax deduction was approved by the South Bend Redevelopment Commission on April 120, 1990 (copy attached) . Lee Slavinskas, one of the partners of 3-G Properties then provided additional information to the Committee. He noted that he was in the process of filing a conflict of interest statement with the City Clerk and other appropriate governmental officials in light of his ownership interests and holding a City Council position. He also noted that although it is his understanding that he could vote on the matter, that he will decline and abstain from official action on the tax abatement request. He stated that the total project cost will be. approximately $180,000.00. River Bend Hose started approximately nine years ago and currently has 8100 square feet and leases an additional 20,000 square feet. With the expansion of an additional 6100 square feet being added to their existing building, the company will continue to rent 10, 000 square feet elsewhere. He also noted that they are currently up to 15 employees and will add 2 additional employees. Council Member Luecke stated that the project is similar to Art Iron and CTDI where assembly or manufacturing results in added value to the final product. The specific SIC Codes involved include 3050, 5008, and 3550. Council Member Niezgodski noted that Mr. Slavinskas is involved in the Urban Enterprise Association, has hired employees from the area, and is current with his assessment. Human Resources and Economic Development April 23, 1990 Page 3 Council Member Luecke noted that one of the requirements for the industrial type of tax abatement is to work with ETS. Mr. Slavinskas stated that he would have a letter on file prior to the Council taking formal action on the confirmatory Resolution which would verify his commitment to work with ETS. Council Member Coleman voiced favorable remarks with regard the proposed real property tax abatement. Following further discussion, Council Member Voorde made a motion, seconded by Council Member Duda that Resolution No. 90-20 be recommended favorably to Council. The motion passed with Council Members Slavinskas and Zakrzewski abstaining. Mr. Ted Leverman then reviewed Resolution No. 90-22 which would authorize the Mayor to submit to the Department of Housing and Urban Development an application for the rental rehabilitation program and for the South Bend Public Housing Authority to submit an application for Section 8 Housing Subsidies. Mr. Leverman noted that the "Rental Rehabilitation Program" enacted under a federal law in 1983, provides financial assistance for rehabilitation of rental units in selected neighborhoods. Seventy percent (70%) of the units must be occupied by lower income persons and Section 8 vouchers are available to assist tenants who would otherwise be displaced. The City is eligible to receive $58, 000.00 for this program in fiscal year 1990. Following further discussion, Council Member Voorde made a motion seconded by Council Member Slavinskas that Resolution No. 90-22 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 25-90 which would appropriate $66, 000.00 from the U.S. Department of Housing and Urban Development's Emergency Shelter Grant Program. $46,000.00 would be used for the Center for the Homeless and $20, 000 would be used for the Youth Services Bureau. Following further discussion, Council Member Duda made a motion, seconded by Council Member Slavinskas that Bill No. 25-90 be recommended favorably to Council. The motion passed. Human Resources and Economic Development April 23, 1990 Page 4 There being no further business to come before the Committee, the meeting was adjourned at 5:15 PM. Respectfully submitted, Council Member Steve Luecke Chairperson Human Resources and Economic Development Committee Attachments