Loading...
HomeMy WebLinkAbout02-12-96 Community & Economic Development Committt: Ztport: Community and Economic Development Committee to t s Common QCountil of the Co of Eoutb tnb: The February 12, 1996 meeting of the Community and Economic Development Committee was called to order by its Chairperson,Council Member Sean Coleman at 4:30 P.M.in the Council informal meeting room. Persons in attendance included Council Members: Kelly, Zakrzewski, Washington, Varner, Luecke, Coleman, Pfeifer, Broden, Hosinski; Bob Hunt, Ann Kolata, Bill Hojnacki, Chuck Leone, William Hurst, Bob Michalak, Larry Kawalewski, Mike Beitzinger, Charles Pryor, Steve St. Clair,Jon Hunt, Don Porter, and Kathleen Cekanski- Farrand. Council Member Coleman called the meeting to order and introduced two of the appointments of the Common mon Council to the Redevelopment ent Commission namely Mr. Bob Hunt and Mr. Bill Hojnacki.Mr.Hojecki noted that his experience on the Commission has been fun and exciting and he appreciates the separation of power between the two legal entities.Ann Kolota noted that the Commission Members spend a great deal of time and do a lot of work for the hours contributed to the City of South Bend. The first item on the agenda following the discussion with the Redevelopment Commission Members was Resolution No. 96-8 which is a 10 year Real Property Tax Abatement request on behalf of the Management Consortium Inc. It was requested that this Resolution be heard at that end of the meeting. The Committee then reviewed Resolution No. 96-9 which is a 5 year Personal Property Tax Abatement request for the property located at 3702 West Sample.Mr.Mike Beitzinger reviewed the memorandum dated January 23, 1996, for the petitioner Cherry Roller Inc. (copy attached).He noted that the petitioner would be locating its operations in the Sample Street Business Complex and will be a micro-manufacturing concern which produces hi-tech elastomeric rollers. Estimated cost of the new machinery and equipment is approximately $300, 000.00. The petitioner qualifies for a 5 year Personal Property Tax Abatement. Mr. Charles Leone gave further information.He noted that his client was induced with the assistance of Frank Kritch and Project Future. Council Member stated that this is a good project which will be housed in the Torrington Building. In response to a question raised by Council Member Luecke it was noted that the equipment would have a life expectancy of greater than 5 years. Following further discussion, Council Member Luecke made a motion, seconded by Council Member Zakrzewski that Resolution No. 96-9 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 96-10 which is a three year Real Property Tax Abatement request for the property located 208 East Sample Street. Mr. Mike Beitzinger reviewed the report dated January 29, 1996,for the petitioner Charles and Hattie Pryor(copy attached). Committee Report . Community and Economic Development February 12, 1996 Page 2 He noted that the petitioners are purchasing a one acre site to relocate their business commonly known as Champion Soft Water Company which currently located in Roseland. Estimated cost of the new building is $178, 800.00. the petitioner qualifies for a 3 year Real Property Tax Abatement. Mr. Pryor was then introduced and stated that he is looking forward to relocating his business to the city limits. Council Member Washington spoke in favor of the proposed tax abatement request. Following discussion, Council Member Luecke made a motion, seconded by Council Member Zakrzewski, that Resolution No. 96-10 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 96-11 which is a 5 year Personal Property Tax Abatement request for the property located at 325 South Walnut.Mr.Mike Beitzinger reviewed the report dated January 30, 1996 (copy attached). He noted that the petitioner, Masterbilt,Inc.is a machine shop which supports the Aerospace Industry. The equipment is estimated to cost $105, 000.00. The petitioner meets the qualifications for a 5 year Personal Property Tax Abatement. Mr. Bob Michalak and Larry Kawalewski then gave additional information to the Committee.They noted that their company is eager to start.In response to a question raised by Council Member Luecke it was noted that the life expectancy of the equipment is projected to last over 10 years. Following discussion, Council Member Zakrzewski made a motion, seconded by Council Member Luecke, that Resolution No. 96-11 be recommended favorably to Council. The motion passed. The Committee then reviewed Resolution No. 96-12 which is a 5 year Personal Property Tax Abatement request for the property located at 3431 William Richardson Drive. Mr. Mike Beitzinger reviewed his report dated February 16, 1994, (copy attached). He noted that the Council adopted Resolutions for this project in 1994, however the property location at that time was 3600 McGill Street and that they were relocating to 3431 William Richardson Drive. As a result of their relocation for Midwest Embroidery Inc. a new Resolution reaffirming the designation must be made. Mr. Steve St. Clair noted that the equipment in question is approximate $621, 000.00 which they have purchased to date.They have 92 jobs 18 of which are new and will create 4 to 5 new ones this year.They are 19% over the estimated payroll projections which they gave the Council in 1994.They hope to have 120 jobs by April 1st of this year.Ann Kolata spoke in favor of the Resolution and Mr. Bob Hunt also spoke in favor of the Resolution noting that this is a very strong growth industry. Committee Report Community and Economic Development February 12, 1996 Page 3 Following favorable comments by Council Member Zakrzewski,Council Member Luecke made a motion, seconded by Council Member Zakrzewski that Resolution No. 96-12 be recommended favorably to Council.The motion passed. The Committee then returned to Resolution No 96-8 which is a 10 year Real Property Tax Abatement request for the property located at 5820 West F. Jay Nimtz Parkway.Mr.Mike Beitzinger reviewed the report dated February 5, 1996 and noted that the petitioner is requesting a special exception under Section 2-84 of the South Bend Municipal Code. Mr. William Hurst then made the presentation. He noted that currently large hotels are being over built and only larger cities are being looked at by developers and the banking industry. They see a busy Airport in South Bend and that Blackthorn will be busy in the future.They are working with the city and believe that this will be a choice location in the years to come.He noted that for every dollar that a hotel brings in that its is leveraged 7 to 9 times.He stated that the petitioner proposes to build a 4-story 150 room full service hotel on approximately 4.5 acres of land in the Blackthorn Corporate Office Park area.Total cost of the construction is estimated at approximately $10, 000,000.00. He noted that average room rate will be between$70.00 to$72.00 with$64.00 for a single room.There will be a free breakfast and it will be licensed by"Choice International"and it will be of the level of a Marriott Courtyard. In response to a question raised by Council Member Varner, it was noted that there is discussion with regard to a 5 year non-compete for property owned by the Airport Authority and Blackthorn only.Jon Hunt stated that this is a very quality project and spoke in favor of the overall development. He noted that all financing must be in place by February 27, 1997. Mr. Hurst noted that the developer has developed over 450 million dollars of real estate over the past several years. Mr. Beitzinger noted that if they cannot meet the financing deadline that they will have to come back to the Common Council with regard to the tax abatement. tax abatement. Ann Kolata also spoke in favor of the proposed 10 year real property Discussion then took place with regard to why tax abatement was necessary. Ann Kolota noted that the Corporate Park itself is not providing tax abatement incentives for office type structures. The Council Attorney noted that in the proposed Resolution that Section VI sets for the specific reasons why the Council,if they believe a special exception is necessary,believes that the project should go forward with the tax abatement. Council Member Hosinski stated that this is one of the most significant investments in Blackthorn and that the hotel will be cornerstone for continued growth. Council Member Kelly stated that the taxes of$2 1/2 million dollars which would be the amount of taxes paid after the abatement is indeed significant. Council Member Hosinski attempted to make a motion in favor of the proposed abatement however was unable to do so since he was not on the Committee. Comeree Rep xt Goeslossiy aid Economic Development Febeeeery 12. 1996 Page 4 Council Member Pfeifer stated that she was excited that this is on the West-Side and is a quality development. Following discussion, Council Member Zakrzewski made a motion, seconded by Council Member Luecke that Resolution No. 96-8 be recommended favorably to Council. The motion passed. Council Member Luecke stated that he believes that the special exceptions are met and that this project indeed does qualify since it will be a significant development and that there are substantial upgraded amenities.He sees this as a flag shift for the Blackthorn area. Council Member Coleman stated that the hotel would be a magnet for attracting new businesses. There being no further items to come before the Committee the meeting was adjourned at 5: 40 P.M. Respectfully submitted, Sean Coleman,Chairperson Community and Economic Development Attachments •