HomeMy WebLinkAbout01-11-93 Human Resources & Economic Development COMM Ztport
HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMI'11'EE
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The January 11, 1993 meeting of the Human Resources and Economic Development
Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:50
p.m. in the Council Informal Meeting Room.
Persons in attendance included Council Members Luecke, Coleman, Puzzello,
Washington, Kelly, Slavinskas, Zakrzewski, Duda, and Ladewski; Mike Beitzinger, Ron
Mass, Gene Bolander, Don Porter and Kathleen Cekansk-Farrand.
Council Member Kelly noted that the purpose of the meeting was to review Resolution No.
93-2 which would terminated the five-year personal property tax abatement for Toro South
Bend Manufacturing and to review Resolution No. 93-3 which would terminate the ten-
year real property tax abatement for Toro South Bend Manufacturing.
Council Member Kelly asked whether any representatives of Toro South Bend
Manufacturing were present. No one was present on behalf of Toro South Bend
Manufacturing.
Mr. Michael Beitzinger of the Department of Economic Development then reviewed the
handout prepared for the Committee. This handout (copy attached) was a copy of the
report dated April 21, 1992 utilized by the Common Council on the requested real and
personal property tax abatements. It had a copy of the Petition as well as information from
Project Future dated December 20, 1991 regarding tax relief and tax abatement. The letter
from Toro South Bend Manufacturing to Mayor Kernan advising him of their closing of the
plant was also made available.
Mr. Beitzinger noted for the record that Toro South Bend Manufacturing has failed to
comply with their commitments to:
1. invest 1.5 million dollars
2. invest 2.1 million dollars in new equipment
3. create 31 new jobs
4. retain 275 jobs
The Council Attorney noted that Toro was advised by certified mail of tonight's hearing as
well as the Committee meeting. She also advised the Committee that the City Clerk's office
had called the corporate office by phone to confirm notice of both meetings. She stated that
the Council will be taking action this evening to determine if the property owner has
substantially complied with the Statement of Benefits which she then presented to the
committee. Also presented were the five and ten year real property tax abatement schedules
(both attached). If the Council acts favorably and adopts both of these Resolutions the
Clerk's office would then send certified copies of the Resolutions to the property owner,
the County Auditor, and State Board of Tax Commissioners.
Mr. Ron Mass of 2632 West Victoria spoke in favor of the Resolutions. Mr. Gene
Bolander of 2102 South Morris spoke in favor of the Resolutions.
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Human Resources and Economic Development Committee
January 11, 1993
Page 2
Council Member Slavinskas stated that he believes a message should be sent that if you do
not meet the commitments represented to the City of South Bend with regard to tax
abatement that the City of South Bend will take appropriate action for failure to comply.
He also stated that he is also concerned about the tax relief granted to this location for
"change in use and economic obscelence". This classification resulted in a reduction of the
assessed value from$1,929,480.00 to $643,160.00 for a reduction of 43%.
Council Member Kelly stated that he believes that Toro did not meet their obligation to
retain jobs and for job development as represented to the City. He also stated that a
considerable amount of cost was spent by the City with regard to the property tax
abatements.
Council Member Puzzello stated that there is a pending court case in Yipslanti, Michigan
Where she believes GM is being sued over their failure to follow through on a contract with
regard to jobs. She suggested that we follow this suit.
Council Member Coleman stated that this procedure will be reviewed on a case by case
live to their
'n did not e u
i and that in this particular case Toro South Bend Manufacturing d up basis
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commitments. He stated however that LTV is an example of a corporation that did.
Following further discussion, Council Member Slavinskas made a motion. seconded by
Council Member Duda that Resolution Nos. 93-2 and 93-3 be recommended favorably to
Council. The motion passed.
There being no further business to come before the Committee the meeting was adjourned
at 5:10 p.m.
Respectfully submitted
Council Member Roland Kelly
Chairperson,Human Resources and Economic Development Committee