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Community and Economic Development Committee
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The May 22, 1995 meeting of the Community and Economic Development
Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:45
P.M.in the Council informal meeting room.
Persons in attendance included Council Members: Puzzello, Kelly, Slavinskas,
Zakrzewski, Washington, Coleman, Luecke, Duda, and Ladewski; Mike Beitzinger, T.
Brooks Bradmas, Cheryl Little, Sue Hodgenson, Citizen Member,Larry Magliozzi,Barry
Adams, Mary Booth, Bob Launn, Mike Urbanski, Mike Peterson, Peter Trybula, James
Riggs,Kevin Hughes, Roy Yoder,Don Porter, and Kathleen Cekanski-Farrand.
item agenda first i monthea e
nda was to review Bill No. 95-38 which is a 6 year Real
Property Tax Abatement request for Absorbtech,LLC. Mr. Mike Beitzinger reviewed the
Memorandum from the Community and Economic Development Department dated May 17,
1995 (attached). He noted that the petitioner does not meet the current Tax Abatement
Ordinance requirements in light of an SIC code discrepancy. If it would meet the SIC code
it would be entitled to a 10 year Real Property Tax Abatement. In light of this the petitioner
is requesting a 6 year Real Property Tax Abatement request as a special exception under
Section 2-84 of the South Bend Municipal Code. The petitioner was present by Mike
Peterson, Peter Trybula, James Riggs, and Kevin Hughes who spoke in favor of the
proposed Tax Abatement. Information about Absorbtech was handed out to the Committee
(copy attached). It was noted that this would be phase one of a two phase project. There
would be 90 jobs created with the expansion. In response to a question raised by Council
Member Puzzello it was noted that the processing and disposal programs utilized by the
company are approved by IDEM. It was also noted that this is an orderless process and that
there would be no slipping from the mats. The petitioners then showed a video tape about
the petitioner and its products.It was also noted that this was the only launderable process
and is much more cost effective. Council Member Duda spoke in favor of the proposed
project and believes that it was environmental smart.
The Council Attorney noted that there would need to be an amendment to Section
IV to incorporate specific language with regard to the special exception language of 2-84.
She suggested the she and Mr.Trybula prepare the necessary language for the amendment
for tonight's meeting.
Following discussion, Council Member Puzzello made a motion, seconded by
Council Member Zakrzewski that Resolution No. 95-38 be amended as recommended by
the Council Attorney,be sent favorably to the full Council.The motion passed.
The Committee then reviewed Bill No. 27-95 which is a bill to amend Chapter 2
Article 6 of the South Bend Municipal Code addressing tax abatement procedures. Mr.
Larry Magliozzi made the presentation. He and the Council Attorney noted that the maps
attached to the proposed bill would have to be amended in order to enlarge the Rum Village
area.Mr.Magliozzi noted that currently the proposed area shows a vacancy rate of 46 1/2%
and 48% respectively. He noted that pursuant to current state law 3.8 square miles is
allowable for residential tax abatements of this type.He noted that the two proposed areas
incorporate approximately 1.4 square miles. •
Committee Report
Community and Economic Development
May 22, 1995
Page 2
In response to a question raised by Council Member Slavinskas it was noted that
parcels were counted by tax key numbers as a basis of the 35%rate. It was also noted that
the frontage requirements for parcels would be at a minimum of 60 feet.
Council Member Coleman noted that there are several nonfunctioning parcels since
they do not meet the 60 foot requirement.
Council Member Puzzello questioned why there no other areas being recommended
me and Mike Beitzinger
i zzi noted that he, the Council Attorney, g
Ma t o Y
at this time. Mr. g
reviewed at least 5 to 6 othe r potential Ma p s an d are recommending the largest st areas which
meet all criteria. Council Member Luecke noted that individual lots can still be considered.
Mr. Mike Urbanski suggested enlarging the proposed area and spoke in favor of the
Bill.He showed a map to the Committee of the Homeland Subdivision where he currently
has 40 lots with 65 being buildable at the 60 foot frontage requirement. Three homes are
currently blighted and he would like to positively address this area.He noted that there are
Indiana housing monies available if an income of$26, 000.00 or less is in the household.
He noted that the proposed area which he is suggesting has a 67.8% vacancy rate and only
one permit for building has been issued in 8 years. He further noted that the area in
question is within a TIFF Area has 50% availability for water and sewer with 50% only
having sewer available. He noted that all homes would have full basements with some
having garages. He noted that he is working with Redevelopment in the Engineering
Department. Council Member Zakrzewski stated that he would be receptive to enlarging the
proposed area.
Mary Booth spoke in favor of the project. She noted that she is excited about the
concept and had a hand-out (copy attached) from BL Builders. She noted that this is an
incentive for both builders and homeowners. She currently works for Bob Luann and she
hopes that the momentum for the project is not lost.
Mr. Bob Luann then spoke to the Committee. He noted that to often that taxes are
so high that it does not allow people to live within the city.He noted that homes within the
Emmerson Forest Subdivision would sell much higher if outside of the city limits.
Roy Yoder noted that 25 lots are available if the Council would move forward.
Barry Adams of Greater South Bend Development, noted that he was part of pilot
program approximately 2 years ago where the maximum housing cost was $60,000.00.
With the tax abatement he was able to receive matching grants for funding purposes.
Sue Hodgeson,the Citizen Member of the Committee noted that as an employee of
Society Bank that she sees real estate taxes being a critical item when reviewing mortgage
requests.
Committee Report
Community and Economic Development
May 22, 1995
Page 3
Council Member Slavinskas questioned the procedure of when selected sites would
"fall off" the designated list. He further suggested that fringe areas for voluntary
annexations be considered to allow opportunities for both low income and moderate income
families to move back into the city. Council Member Luecke noted that such an area would
be the Jackson Road Area.
Council Member Coleman noted that housing within the city limits is one of the
most important criteria which he believes more public officials should work for and
encourage. He noted that incentives all to often are lost especially in light of the state law
which prohibits gr owth in light of the current annexation laws.He noted that he would
be
willing to subchair or chair a committee mlttee to work with the state legislator to offer more
incentives for homeownership within the city limits.
Following discussion, Council Member Zakrzewski made a motion, seconded by
Council Member Puzzello that Bill No. 27-95 be continued until the June 12, 1995 meeting
to allow the filing of a new map enlarging the proposed as suggested by Mr.Urbanski.The
motion passed.
There being no further business to come before the Committee the meeting was
adjourned at 5:05 P.M.
Respectfully submitted,
Council Member Roland Kelly, Chairperson
Community and Economic Development
Attachments
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