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HomeMy WebLinkAbout05-20-91 Human Resources & Economic Development f]nmmittrf Road HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE alo rile klnmmon &tounrtl of tilt Qlttg of Soutli The May 20, 1991 Meeting of the Human Resources and Economic Development Committee was called to order by its Chairperson, Council Member Steve Luecke, at 4:45 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Zakrzewski, Coleman, Slavinskas, Duda, Puzzello, Luecke, Ladewski, Niezgodski, and Soderberg; John Fonash, Bipin Doshi, Bill Mitchell, Fran Hunjo, Don Porter, and Kathleen Cekanski- Farrand. The first item on the agenda was to review Resolution No. 91-38 which is a five year personal property tax abatement request for Schafer Gear Works, Inc. Mr. Fonash reviewed the report from the Redevelopment Department (copy attached) . He also passed out the Resolution passed by the Redevelopment Commission dated May 10, 1991. The proposed tax abatement is for the property located at 814 South Main Street. Mr. Bipin Doshi, the President of Schafer Gear Works, Inc. , noted that they have had very active investment in the Company with the sum being approximately $500, 000.00 per year. Over the past three years they have increased sales by approximately 16%. Sales are sold nationally with approximately 15% to the auto industry, 15% to the aircraft instrument industry, and 70% to the industrial gear industry. The life expectancy of the proposed new machinery will be somewhere between 5 to 7 years. It has and will increase the "quality and consistency" to make them more competitive. This was all given in response to a question raised by Council Member Soderberg. Following further discussion, Council Member Soderberg made a motion seconded by Council Member Ladewski, that Resolution No. 91-38 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 91-26 which is a confirming Resolution for the property located at 113 East Wayne Street. Mr. Bill Mitchell gave the presentation. He stated that he is representing Mr. John Freidline, who is ill. He noted that the first floor and the basement will be leased to Academy Beauty College. The upstairs area of the remaining portion of the old Penny's building, is currently being shown to four to five potential clients. There are considerable interior changes since all of the heating-air conditioning units were incorporated into the space now Y Human Resources and Economic Development Committee May 20, 1991 Page 2 utilized by Meanwhile's. He noted that the property in question has been vacant for at least three years. Mr. Mitchell introduced Mrs. Fran Hunjo, of the Academy Beauty College, who would be the main tenant in the basement and the first floor area. The Academy would be leasing 10,050 square feet of the total 15, 000 square feet available. He stated that in light of the fact that the Petitioner will meet the 75% retail requirement and having the facility vacant for over one year, that he should qualify for a ten year real property tax abatement. Council Member Luecke noted that he had met with the Council Attorney prior to this, to draft the new Amended Resolution. At that time the Council Attorney noted that they were unaware that the Petitioner would meet the 75% retail requirement. In light of the figures presented, the Petitioner would qualify for the then existing tax abatement requirements for a ten year real property tax abatement. Following further discussion, Council Member Slavinskas made a motion seconded by Council Member Duda that the Resolution be amended to delete the six year language in the title and in Section II, and to replace it with ten years. The motion passed. Council Member Slavinskas then made a motion seconded by Council Member Duda that Amended Resolution No. 91-26 be recommended favorably to Council. The motion passed. Fran Hunjo noted that approximately 1,500 would go through the Academy Beauty College, which is affiliated with Ivy Tech, on a yearly basis. There being no further business to come before the Committee, the meeting was adjourned at 5: 05 p.m. Respectfully submitted, Council Member Steve Luecke, Chairperson Human Resources and Economic Development Committee attachments