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HomeMy WebLinkAbout04-24-92 Human Resources & economic Development (lummittrr arpurt HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Ito tLpe Mountain Mouswtt of Or QIttl of fi►outil Neal: The April 24, 1992 meeting of the Human Resources and Economic Development Committee was called to order at 4:55 p.m. by its Chairperson, Council Member Roland Kelly. Persons in attendance included Council Members Luecke, Coleman, Puzzello, Washington, Kelly, Slavinskas, Ladewski; Don Porter, John Fonash, Dave Norris, Elizabeth Leonard,James Knepp,Ernest Szarwark,Roger Stouffer, Charlene R. Claywell, and Kathleen Cekanksi-Farrand. Council Member Kelly noted that the first item to be reviewed was Bill No. 24-92 which would appropriate$144,000.00 form the Community Development Block Grant Fund for the purpose of defraying expenses for the Department of Economic Development. Elizabeth Leonard then provided to the Committee a Substitute Bill No. 24-92. This Bill would appropriate $139,000.00 instead of the previously requested amount of $144,000.00. She indicated that the overall purpose would be for the West Washington Project. Council President Luecke noted for the record that he is an employee of South Bend Heritage however this would not create a substantial conflict of interest as determined by the Council Attorney. Following favorable comments by Council Member Washington, Council Member Slavinskas made a motion seconded by Council Member Washington that Substitute Bill No. 24-92 be recommended favorably to Council. The motion passed. Council Member Kelly noted that the next item to be reviewed was Resolution No. 92-24 which is a Tax Abatement request on behalf of Nimet Industries, Inc. Mr. John Fonash of the Department of Economic Development then reviewed the April 10, 1992 report. He noted that the Petitioner is located at 2424 North Foundation Drive and would qualify for a five year Personal Property Tax Abatement. The Committee then heard further details given by Mr. Ernest Szarwark of Barnes and Thornburg. He indicted that Mr. James Abbott would be available for questions at Tuesday afternoons Common Council Meeting. Following further discussion Council Member Slavinskas made a motion seconded by Council Member Washington that Resolution No. 92-24 be recommended favorably to Council. The Committee then reviewed Resolution No.92-25 which is a Tax Abatement request for Stouffer Industries, Inc. Mr. John Fonash of the Department of Economic Development then reviewed the report dated April 10, 1992, a copy of which is attached. He noted that the Petitioner is located at 1801 Commerce drive and qualifies for a Five(5)Year Personal Property Tax Abatement. f • Human Resources and Economic Development Committee April 24, 1992 Page 2 Mr. James P. Knepp, the attorney for the Petitioner, then introduced Mr. Roger Stouffer the President of the company. Mr. Stouffer noted that his company has a world wide market and then showed examples of various "sensitivity guides", exposure guides, and provided brochures on the type of services provided in the photographic industry. Following very favorable comments, Council Member Slavinskas made a motion seconded by Council Member Washington the Resolution No. 92-25 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 92-26 which is a ten(10) year real property tax abatement request filed by Toro and Resolution No. 92-27 which is a ten (10) year personal property requested filed by Toro. Mr. John Fonash of the Department of Economic Development then reviewed the report dated April 21, 1992 from the Department of Economic Development. He noted that with regard to the personal property tax abatement request that the current City Code only permits a five (5) year personal property tax abatement. Charlene R. Claywell, the Assistant Controller for Toro noted that the Resolution should be amended to a five (5) year opposed to the ten (10) year indicate. Following favorable discussion, Council Member Slavinskas made a motion seconded by Council Member Washington that amended Resolution No. 92-27 indicating a five (5) year personal property tax abatement request would be recommended favorably to Council. The motion passed. The Committee then reviewed in detail the report for the ten (10)year real property request for Toro. It was noted by Mr. Fonash that this would be taken as a special case consideration under Section 2-84. The Council Attorney advised the Committee that specific findings must be made by the entire Common Council in order for such a request to be approved. The Committee then reviewed the schedules proposed for a three (3), six (6), and ten (10) year real property tax abatement request and the additional information provided by Project Future, and the St. Joseph County Assessors Office. Charlene Claywell then gave additional verbal information noting that the new production line would produce Lawn Boy, Toro, and Ford lawn and garden equipment. She noted that the bargaining will have their wages frozen for two years. Thirty-one additional employees would be employed on a full-time basis in 1993 and the tax abatement requests would help preserve 275 current employees which are employed on a full time basis. She noted that the market is very competitive between the Mississippi and Michigan plants and that a decision was made to close the Mississippi Plant. Council Member Slavinskas noted that his business does do work for Toro. It was determined by the Council Attorney that this would not create a substantial conflict a interest. Council Member Slavinskas noted that the abatement requests for ten years is proper in light that thirty-one (31) new jobs and the preservation of 275 jobs would take place. He also spoke in favor of the five(5) year personal property tax abatement. Council Member Washington also spoke in favor of the proposed abatement as a special exception. He noted that the need for new jobs is critical and that an employer who has a 23%minority work force is needed in our City. • • Human Resources and Economic Development Committee April 24, 1992 Page 3 Council Member Ladewski noted that in 1989 there we over two hundred (200) layoffs with Toro and that hopefully with the new line of manufacturing on board that this would help offset the bad publicity experienced then. Council President Luecke noted that in his opinion this Petitioner qualifies for a ten (10) year real property tax abatement. He stated that in light of the economic obselence, the other plant closings, the new jobs which would be created and the fact that local suppliers would be used that the request for the ten (10)year is reasonable. He recommended that the Council Attorney prepare the necessary findings. The Council Attorney suggested that the Committee Meeting be continued until Tuesday so that the Committee could take formal action pursuant to Section 2-84 of the Municipal Code of the City of South Bend on this request. Following further discussion Council Member Slavinskas made a motion seconded by Council Member Washington that amended Resolution No. 92-27 (5)Five Year Personal Property Request be recommended favorably to Council. The motion passed. Following further discussion Slavinskas made a motion seconded by Council Member Washington that the Human Resources and Economic Development Committee recess until Tuesday, April 28, 1992 and reconvene at 3:15 p.m. to have further discussion on Resolution No. 92-26 regrading the Ten (10) Year Tax Abatement request for Toro and other miscellaneous matters. The motion passed. The Committee meeting was recessed at 5:45 p.m. Respectfully submitted, Roland Kelly, Chairperson Human Resources and Economic Development Committee. att.