HomeMy WebLinkAbout09-25-95 Community & Economic Development Qtomm f tttt Z 4por t:
Community and Economic Development Committee
t1t Common QCOU1tcf1 of tbt City of gioutb
The September 25, 1995 meeting of the Community and Economic Development
Committee was called to order by its Chairperson, Council Member Roland Kelly at 3:35
P.M. in the Council informal meeting room.
Persons in attendance included Council Members:Kelly,Zakrzewski,Washington,
Puzzello, Luecke, and Ladewski; Bill Eagan Citizen Member, Sue Hodson Citizen
Member, John Peddycord, Stanley Blenke, John Byorni, Mike Beitzinger, A. Michael
Keener, John Broden, Doug Carpenter Citizen Member, Larry Keener, Don Porter,and
Kathleen Cekanski-Farrand.
The first item on the agenda was to review Resolution No. 95-72 which is a
personal property tax abatement request for Keener Printing and Lithography Inc.
Mr. Mike Beitzinger reviewed the memorandum from the Community and
Economic Development Department dated September 11, 1995 which concluded that the
petitioner meets the qualifications for a five year personal property tax abatement (copy
attached).
Mr. Keener noted that this is the first phase of an enlargement. The equipment will
be state-of-art and will allow them double production.
He noted that their company enjoys giving back to the community. With the
anticipated expansion next year it is anticipated that they will create additional new jobs.
In response to a question raised by Council Member Kelly it was noted that the life
of the equipment should be between a 15 to 20 year range.
In response to a question raised by Citizen Member Bill Eagan it was noted that if
tax abatement denied that it would curtail their sales forecast and most likely they would
look to relocate. Mr. Keener noted that currently they send many projects out to Chicago
and Michigan, however they wish to remain competitive and to do products in house. The
tax abatement would allow them to do this.
In response to a question raised by Council President Ladewski it was noted that
the company has hired 3 to 4 minority in the past and are always open to minority hiring.
Council Member Zakrzewski stated that Keener Printing is a very valuable asset to
the Rum Village neighborhood and has been a very good neighbor. He hopes that they will
continue to grow and be a cornerstone to revitalize the Indiana Ave. area. He thanked them
for their reinvestment in the community.
Following discussion, Council Member Zakrzewski made a motion, seconded by
Council Member Puzzello that Resolution No. 95-72 be recommended favorably to
Council. The motion passed.
•
f - -
Committee Report
Community and Economic Development
September 25, 1995
Page 2
The Committee then reviewed Resolution No. 95-73 which a personal property tax
abatement request for Schafer Gear Works Inc. Mr. Mike Beitzinger reviewed the
Community and Economic Development Memorandum dated September 12, 1995 which
concluded that the petitioner meets the qualification for a five year'personal property tax
abatement(copy attached).
Mr. Stan Blenke noted that the $3, 000,000.00 expansion of their building and
equipment approximately one year ago has gone quite well. The current tax abatement
III request will allow t hem to purchase 3 pieces of equipment which are state-of-the-art. Their
has gone from 55 employees to 85 employees.
In response to a question raised by Council Member Kelly, it was noted that the
equipment should last between 7 to 10 years however computer technology is always
changing.
In response to a question raised by Citizen Member Bill Eagan, Mr. Blenke noted
that their operation is capital intensive and without tax abatement it would jeopardize their
competitive nature. Mr. Eagan questioned whether it is good public policy. Council
Member Kelly and Council Member Luecke noted that the development is good for the area
that it provides employment and that a tax abatement provides incentives to develop in
particular areas. Council Member Kelly further noted that the overall tax abatement impact
to the tax rate is less 1% being at.6%.
Council President Ladew ski noted that he was at the grand opening of the
expansion and find it to be a fine facility and very well run. Council Member Puzzello
noted that recently an article appeared in the newspaper which noted the positive effects of
tax abatement programs.
Following discussion, Council Member Zakrzewski made a motion, seconded by
Council Member Washington that Resolution No. 95-73 be recommended favorably to
Council.The motion passed.
There being no further business to come before the Committee the meeting was
adjourned at 3:55 P.M.
Respectfully submitted,
Council Member Roland Kelly, Chairperson
Community and Economic Development
Attachments
•