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The April 22, 1991 Meeting of the Human Resources and
Economic Development Committee was called to order by its
Chairperson, Council Member Steve Luecke at 4: 00 p.m. in the
Council Informal Meeting Room.
Persons in attendance included Council Members Ladewski,
Coleman, Zakrzewski, Duda, Niezgodski, Puzzello, Slavinskas,
and Luecke; Hedy Robinson, James A. Watts, John Freidline,
Don Porter, and Kathleen Cekanski-Farrand.
Council Member Luecke noted that Resolution No. 91-26 which
is a Confirming Tax Abatement Resolution for the property
commonly known as 113 East Wayne Street has been requested
to be continued by the petitioner. Council Member Luecke
noted that the petitioner desires to provide updated
information with regard to the proposed tax abatement.
Mr. Luecke then noted that the next item to be reviewed was
Resolution No. 91-33 which would amend Resolution No. 1681-
88 which designated the property located at 113 East Wayne
Street as an economic revitalization area for purposes of
real property tax abatement. Council Member Luecke noted
that the Council adopted the original Declaratory Resolution
for this property slightly over two years ago. At that time
the petitioner was advised that the leasehold tenant for the
property in question, must be secured in order to properly
determine the amount of tax abatement for which the
petitioner qualifies. Mr. Freidline has now secured a tenant
and he is prepared to move forward. Unfortunately, the two
year time period incorporated within the guide lines for the
City has now expired. Therefore, the purpose of the
Resolution is to extend that period of time in light of the
petitioner complying with the Common Council's conditions.
Mr. Freidline advised the Committee that the tenant is
Academy Beauty College which would be located on the first
floor. They have signed a lease and they are currently
talking to the owners of a restaurant and another possible
retailer. They may have further signed leases in hand by the
end of next month. He stressed that he wanted to provide
accurate information to the Council when reviewing this
Resolution.
Following further discussion, Council Member Slavinskas made
a motion seconded by Council President Niezgodski that
Resolution No. 91-33 be recommended favorably to Council.
The motion passed.
1
Human Resources and Economic Development Committee
April 22, 1991
Page 2
Council Member Luecke noted that the next items to be
reviewed were Resolution Nos. 91-28 which is a three year
real property tax abatement request and Resolution 91-29
which is a five year personal property tax abatement request
for the property located at 4622 Burnett Drive South for SM.
OR. Cases, Inc.
Council Member Luecke noted that the request had been
continued from the last Council meeting, and that
discussions had taken place on these two Resolutions as the
last one with the Council Attorney with regard to direction.
Council Member Luecke noted that the petitioner was provided
outdated information with regard to tax abatement, and that
under the old Tax Abatement Ordinance he would qualify for a
three year real property abatement, but under the new
Ordinance he would not qualify for any real property tax
abatement. In light of the dated material being provided to
the petitioner, it was the recommendation to go forward
under the old Ordinance.
Hedy Robinson of the Redevelopment Department then reviewed
the report dated April 5, 1991 from the Department of
Economic Development which updates the report previously
provided on that same date by incorporating the Real
Property Abatement Schedule under the old Ordinance. The
report concluded that the abatement qualifies for the five
year personal property and would qualify for a three year
real property tax abatement under the old Ordinance.
Mr. Watts noted that he is currently leasing and is in the
Studebaker Corridor. He noted that he originally wanted to
remain in the Studebaker Corridor, however the development
of that area will not be completed in time for his
expansion. He noted that the Michigan City Council contacted
him to relocate to that City. Although there were many
incentives offered, the quality of employees and more
specifically individuals who sew were not at the level as
those in South Bend. He noted that his Company has been in
existence since June of 1987. Sales have increased
dramatically since then, and he believes that sales could
double if proper manufacturing facilities were made
available.
Council Member Luecke noted that on page 1 of the petition,
question 2, that the figures for the "new annual payroll"
should read $56,000.00 as opposed to the $32,418.55 listed,
and that the combined full-time and part-time annual payroll
should read $111,000.00.
Human Resources and Economic Development Committee
April 22, 1991
Page 3
Council President Niezgodski specifically questioned the
type of manufacturing products which this Company provided.
Mr. Watts noted that they manufacture soft and semi-ridged
cases for medical, electronic, and musical instruments, with
the majority of their products used in the medical, musical,
and handicapped aid area.
In response to a question raised by Council Member Coleman,
it was noted that the property in question is located within
the Burnett Industrial Park.
Council Member Luecke noted that all old documents with
regard to tax abatement have been replaced with the new
information packets.
Following further discussion, Council President Niezgodski
made a motion seconded by Council Member Slavinskas that
Resolution Nos. 91-28 and 91-29 be recommended favorably to
Council. The motion passed.
There being no further business to come before the
Committee, the meeting was adjourned at 4: 15 p.m.
Respectfully submitted,
Council Member Steve Luecke, Chairperson
Human Resources and Economic Development Committee