HomeMy WebLinkAbout06-26-95 Community & Economic Development Qtommitt*s Attport:
Community and Economic Development Committee
'Co ibt Common Couituil of tlj* City of South Vtub:
The June 26, 1995 meeting of the Community and Economic Development
Committee was called to order by its Chairperson, Council Member Roland Kelly at 5:00
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,
Richard Tucker, David Harrison, Ernest Szarwark, Don Porter, and Kathleen Cekanski-
Farrand.
Council Member Kelly noted that the first item on the agenda was was to review
Resolution No. 95-56 which is a personal property tax abatement for the property located at
2811 North Viridian Drive for Container Service Corporation.
Mr. Mike Beitzinger reviewed the Memorandum dated June 6, 1995 from the
Community and Economic Development(attached). The report concluded that the petition
qualifies for a five year personal property tax abatement under Section 2-84.2 of the South
Bend Municipal Code.
Mr.David Harrison, the president of Container Service Corporation noted that with
the tax abatement his company will be able to address various start-up cost which would be
advantages to both the City and to his company. He noted that 5 million dollars in new
business is projected over the next 5 years.
Following discussion, Council Member Zakrzewski made a motion,
seconded by Council Member Puzzello that Bill No. 95-56 be recommended favorably to
Council.The motion passed.
The Committee then reviewed Bill No. 95-57 which a 3 year real property tax
abatement request for the property located at 3234 F. J. Nimtz Parkway.
Mr. Mike Beitzinger reviewed the Memorandum from the Community and
Economic Development Department dated June 13, 1995 (copy attached). The report
concluded that the petitioner meets the qualifications for the 3 year real property tax
abatement request under Section 2-83 for the proposed petitioner namely Business Systems
Inc.
Mr. Richard Tucker noted that their work force has decreased from 70 employees to
55 employees however with the tax abatement they believe that they can maintain the 55
employee number.He also welcomed the opportunity to move from Mishawaka to the City
of South Bend.
The Committee welcomed the petitioner back to the City of South Bend. Following
further discussion, Council Member Washington made a motion, seconded by Council
Member Zakrzewski, that Bill No. 95-57 be recommended favorably to Council. The
motion passed.
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Committee Report
Community and economic Development
June 26, 1995
Page 2
The Council Attorney then requested that the Council hear under miscellaneous
business Bill No. 95-51 which is a Resolution confirming the personal property tax
abatement request for Steel Warehouse Company Inc. She noted that at the last Committee
she had noted to the Committee Members that resent state laws have changed businesses
which are considered a"Resource Recovery System". She noted that the las
such enacted a new state law retroactively which eliminated the benefits availab le i types
of businesses. She also noted that legislation was effective for the 1994 assessment year.
She concluded that she had worked closely with the petitioner's attorney namely Mr.Ernest
Szarwark of Barnes and Thornburg Law Firm to work out a Resolution at clearly
acknowledge the state law and which could take advantage of the timetable if action was
taken by the Common Council prior to July 1, 1995.
Mr. Ernest Szarwark then addressed the Committee. He highlighted that fact that
Steel Warehouse would not be entitled to any of the benefits it had properly applied for for
personal property tax abatement when it filed its petition on March 1, 1994.He noted that
at the state law level that Resource Recovery Systems had been controversial in light of the
special status which they had been granted.In light of this apparently the new state law was
enacted. As the Council Attorney noted, the proposed resolution would reaffirm the tax
abatement previously granted by Section the 6-1.1-12-28.5.
ommm Council and would be consistent with the
provisions of Indiana Code
response to questions raised by the Common Council, it was noted that there
may be as many as 2 to 3 other businesses that would fall under this category however in
light of the fact that no application or petition was filed with the Common Council that they
would not meet the July 1, 1995 deadline. Mr.Beitzinger noted that he had been in contact
with both the petitioner and the Council Attorney with regard to the drafting of this
resolution and the recommended procedure.
In response to a question raised by Council Member Luecke,the Council Attorney
noted that she is confortable with the recommended course of action proposed this evening.
following discussion, Council Member Zakrzew ski made a motion, Seconded by
Council Member Puzzello,that substitute Resolution No.95-51 be recommended favorably
to Council.The motion passed. It was noted that there was a correction made on page 1 of
the proposed Resolution and that is why the substitute Resolution was necessary.
There being no further business to come before the Committee the meeting was
adjourned at 5:15 P.M.
Respectfully submitted,
Council Member Roland Kelly, Chairperson
Community and Economic Development
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