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HomeMy WebLinkAbout06-14-93 Human Resources & Economic Development Committee Report HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE To the Common Council of the City of South Bend The June 14, 1993, meeting of the Human Resources and Economic Development Committee was called to order by its' Chairperson, Council Member Roland Kelly, at 4:30 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members: Luecke, Washington, Kelly, Puzzello, Slavinskas, Zakrzewski, Coleman, Duda, Ladewski; Jon Hunt, Pam Meyer, Mike Beitzinger, Marsha Townsend, Kevin Horton, Barry D. Adams, Robert Kastens, Don Porter and Kathleen Cekanski-Farrand. Mr. Jon Hunt then reviewed Bill No. 44-93 which would transfer $39,037.00 among various accounts within the Department of Economic Development. He noted that this is not growth of the Good Neighbors Initiative. Following further discussion, Council Member Duda made a motion, seconded by Council Member Washington, that Bill No. 44-93 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 93-50 which is a tax abatement '„request for the properties located at the northeast corner of Hamilton and Huey Streets. Mr. Mike Beitzinger reviewed the Department of Economic Development report dated May 24, 1993, (copy attached) . He noted that the Petitioner proposes to build a single family home estimate& at Fifty Thousand Dollars ($50, 000.00) , and that the Petitioner is seeking a special exception pursuant to Section 2-84 of the South Bend Municipal Code. He noted that the Mayor has not endorsed this particular project or its tax abatement but believes that there's need for low and moderate income housing. Council President Luecke then provided further background information on the proposed project. He noted that it does not qualify for the residentially distressed tax abatement criteria under the State Law and therefore should be considered as a special exception. If taxes were abated for the three (3) years, the total would be Four Thousand Seven Hundred and Seventy-four Dollars ($4,774. 00) . 1 1 Human Resources and Economic Development June 14, 1993 Page 2 Mr. Beitzinger` then gave a real property abatement schedule for six (6) years noting that the total tax abated would be Eight Thousand Four Hundred and Forty-five Dollars ($8,445. 00) (copy attached) . Mr. Luecke noted that the land has been vacant for over forty (40) years and that he supports the project. Council Member Ladewski questioned the background of Mr. Adams with regard to his building and it was noted that he has rehabilitated two (2) single family homes and has built three (3) new homes. He showed pictures of other projects. It was also noted that he does not plan to use Union skilled trades. Council Member Duda was concerned over not using Union labor and noted that the existing lots have been vacant for a substantial period of time as a minor subdivision. Council Member Coleman stated that he preferred such a project to be considered as a "Pilot Program" instead of a special exception. He stated that development of further criteria through this Committee or a special Subcommittee may be considered. A critical component of the homeowners actually benefiting from the tax abatement, with such home owners being lower moderate income, would be a great service for residential housing. He strongly supported the concept and believes that incentives for new housing should be encouraged by the City. Council Member Slavinskas stated that he appreciates and respects the concerns being raised however Union consideration should not be a valid criteria. He complemented Mr. Adams on his vision, however stated that from a public perspective it requires a lot of education. He also voiced concern with regard to such projects as Relative Realty and believes that the overall process should be slowed down so that proper criteria can set in place. Council Member? Puzzello pointed out in the Substitute Bill prepared by the Council Attorney the provisions of Section IV, paragraphs 1 through 4 with regard to the specific findings which would be granted by the Council. She also voiced concern with regard to Section VII with regard to the use of the word "deduction". Council Member Kelly was concerned that acting on tonight's Resolution would set a precedent and that he believes that Human Resources and Ecomonic Development June 14, 1993 Page 3 specific parameters should be established by the Council. Council Member Coleman stated that evaluation tools should be in place before going forward. Mr. Adams noted that the abatement is part of a match for the Home Program. Jon Hunt stated that he agrees with the concerns set forth by Council Members Slavinskas and Kelly and that there should be declared a moratorium on other types of residential tax abatement. The Council Attorney suggested that perhaps under the leadership of Jon Hunt and his Department that they could assist the Council in developing specific criteria before going forward on this Resolution. Questions were, raised with regard to the prevailing wage standards and whether Mr. Adams would have to abide by such criteria if such a project was granted. Council President Luecke stated that the proposed project is within his District and that he supports it strongly for a six (6) year abatement. Following further discussion, Council President Luecke made a motion, seconded by Council Member Duda, that Substitute Bill No. 93-50 be continued for two (2) weeks and that Mr. Hunt and his Department provide further assistance to the Council in the area of residential tax abatement. The motion passed. ,, The Committee then reviewed Resolution No. 93-51 which is a tax abatement request for the property located at 3511 and 3615 West Voorde Drive for purposes of a six (6) year real property tax abatement. Mr. Mike Beitzinger reviewed the Department of Economic Development report dated May 27, 1993, (copy attached) . He noted that the Petitioner qualifies for a six (6) year real property tax abatement, however, has applied for a ten (10) year real property tax abatement. Mr. Bob Kastens made the presentation for the Petitioner. He stated that ten (10) new jobs would be created at 1 Human Resources and Ecomonic Development June 14, 1993 Page 4 approximately Forty Thousand Dollars ($40, 000. 00) each and that the total cost of redevelopment and rehabilitation is estimated at 1.4 Million Dollars. Council Member ' Slavinskas pointed out that the types of new jobs that would be created are significant and it was noted that an Act of Apprenticeship Program would be in effect. Council President Luecke stated that he believes this is a wonderful project, however, was concerned over whether it qualified for a ten (10) year abatement. Mr. Kastens stated that he would accept the wishes of the Council if a six (6) year abatement was granted. Council President Luecke also noted that substantial changes in the Resolution would be necessary since the personal property abatement form was utilized instead of the real property abatement. The Council Attorney noted that she would have an amended version of the Resolution ready for this evening's meeting. Following further discussion, Council President Luecke made a motion, seconded by Council Member Washington, that a Substitute Bill No. 93-51 granting a six (6) year real property abatement to be prepared by the Council Attorney be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, the meeting was ajourned at 5:40 p.m. Respectfully submitted, Council Member Roland Kelly Chairperson Human Resources and Economic Development Committee attachments 1,