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HomeMy WebLinkAbout12-13-93 Human Resources & Economic Development 1 Committee Report HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE To the Common Council of the City of South Bend: The December 13 , 1993 meeting of the Human Resources and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 4 : 07 p.m. in the Council Informal Meeting room. Persons in attendance included Council Members: Luecke, Washington, Kelly, Puzzello, Slavinskas, Coleman, Duda, and Ladewski; Ernest J. Szarwark, Marc C. Krcmaric, Kenneth Fedder, Don Inks, Mike Beitzinger, Greg Freehauf, Don Porter, and Kathleen Cekanaki-Farrand. Council Member Kelly noted that the first item on the agenda was to review Bill No. 107-93 which is an Ordinance authorizing the City of South Bend to issue economic development revenue bonds for PAI properties in the amount $450, 000. 00. ' Mr. Ken Fedder made the presentation. He noted that the original bond issue was made in 1986 for the property located at 3601 Lathrop. PAI properties leases the property to North American Signs Inc. It is proposed that an addition be added of 20, 000 square feet which would also add 25 additional jobs. He noted that the Economic Development Commission passed a Resolution on November 19 , 1993 approving the bond issue. Mr. Marc Krcmaric, an attorney from Barnes and Thornburg, noted that there would not be any general obligation backing to this bond issue. He also noted that the state cap is between 60 and 70 million dollars. Following further discussion, Council Member Slavinskas made a motion, seconded by Council Member Duda, that Bill No. 107-93 be recommended favorably to Council . The motion passed. The Committee then reviewed Bill No. 108-93 which would authorize the city to issue economic development revenue refunding bonds for the First Bank Center project. Mr. Fedder made the presentation. He noted that the original revenue bond was issued in 1981. An 8 million dollar redemption bond is being sought to pay off that issue. The major tenant is First Source Bank. He noted that the Economic Development Commision passed a resolution approving the bond redemption and that a representative of First Source Bank was present along with Mr. Krcmaric. Following further discussion, Council Member Slavinskas made RSA Human Resources and Economic Development Committee December 14 , 1993 Page 2 a motion, seconded by Council Member Duda, that Bill No. 108-93 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 93-89 which is a three year rail property tax abatement request for Martin's Reality Company for the property located at the corner of Elwood and Portage avenues. Mr. Mike Beitzinger reviewed the report from the Department of Redevelopment dated November 30, 1993 (Copy attached) . It was noted that there would be a complete renovation of the current facility and a 12 , 000 square foot expansion creating 10 new jobs. Mr. Ernest Szarwark made a brief presentation. He introduced Mr. Freehauf the Chief Financial Officer for Martin's. Council President Luecke spoke in favor of the proposed tax abatement request. Council Member Coleman also spoke in favor of the request noting that this Martin's store was one of the last remaining in the urban area. In response to a question raised by Council Member Ladweski, it was noted that the Martin's at McKinley which recently was closed would be used by Target to expand their facility. Following further discussion, Council President Luecke made a motion, seconded by Council Member Washington, that Resolution No. 93-89 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 93-90 which was a three year real property tax abatement request for University Commons Joint Venture for the property located at 4401 Western Avenue. Mr. Mike Beitzinger reviewed the report dated November 30, 1993 (Copy attached) . Mr. Ernest Szarwark made the presentation. He noted that this is in the Phoenix Plaza and would be a complete renovation of the Martin's store located at that facility. He noted that although the property currently does not qualify that he is requesting that the Council consider it as a special exception under section 2-84 of the South Bend Municipal Code. He stated that it is vital to the strategic corner of Western Avenue for the development. He then highlighted the loss of jobs in the area the declining occupancy and deteriorating f y Human Resources and Economic Development Committee December 14, 1993 Page 3 physical facility which is more particularly set forth in Section V. of the proposed Resolution. The Council Attorney noted that an amendment to Section VII. would be required to delete 10 years and replace it with 3 years to be consistent with the 3 year tax abatement designation. Mr. Freehauf noted that in this Martin's facility there would be twice the amount of money spent than the prior facility. it is projected that 35 new jobs would be created. In response to a question raised by Council Member Puzzello, it was noted that this would not be a super store but would be approximately 2/3 of the size of the Bittersweet Martin's. In response to a question raised by Council Member Duda, it was noted that both facilities should be completed within the next 12 months. Council Member Slavinskas noted that he would be in support of the exception. Council Member' Coleman noted from a historical perspective this Martin's is critical to the retail grocery services. We also would be in favor of discussions to expand the tax abatement impact area so that this property can be properly included at a later point and time. Council President Luecke stated that he would oppose the special exception however would be in favor of expanding the tax abatement impact area. He suggested a joint meeting of the Commission and the Council to move forward on this. Council Member Kelly noted that 35 new jobs is critical and Council Member, Washington also voiced favorably support. Council Member Slavinskas then made a motion to amend Section VII. to 3 years and that this amended Resolution be recommended favorably to Council. The motion was seconded by Council Member Duda, and favorably passed. Council President Luecke noted that there are three appointments to various commissions which will expire at the end of the year. He noted that Roman Piasecki, Ted Sharpe, and Glenda Rae Hernandez have all requested that they be reappointed. Council Member Slavinskas noted that it was his recollection that Mr. Piasecki wanted to stay on for just one year. Several Council Members also recalled this. Council Member Puzzello questioned whether these vacancies were advertised. r � Human Resources and Economic Development Committtee December 14 , 1993 Page 4 Council Member Coleman suggested that perhaps an announcement be made tonight and that the new appointments be made on January 3, 1994 at the special reorganization meeting of the Council. Council Member Kelly also favored that approach along with Council Member Washington. It was noted that typically the Council interviews for appointments to the Century Center board of managers, Transpo, The Human Rights Commission, and the Economic Development Commission. There being no further business to come before the Committee the meeting was adjourned at 4 :45 p.m. Respectfully submitted, Council Member, Roland Kelly, Chairperson, Human Resources and Economic Development Committee Attachments