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Community and Economic Development Committee
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The November 23, 1998 meeting of the Community and Economic Development
Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:40
p.m.in the Council informal meeting room.
Persons in attendance included Council Members: Aranowski, Kelly, Pfeifer, King,
Varner, Ujdak, Sniadecki,Hosinski and Coleman; Nancy Van Scoyk, Robert Hunt, Jean
Troutman Poole, Michael Urbanski, Terry Bland, Elizabeth Leonard, Rick E. Newman,
and Kathleen Cekanski-Farrand.
Council Member Kelly noted that the first item on the agenda was to review Bill No. 98-
162 which is a request for Rick E. Newman doing business as Crystal Mountain, Inc. for a
three-year real property tax abatement for the property located at 4044 William Richardson
Court.
Nancy Van Scoyk, Economic Development Specialist, reviewed the November 17, 1998
report (copy attached). The petitioner is the processor of drinking, distilled and flavored
waters. He proposes to enlarge their existing building by 13,500 square feet of
warehouse/production for a cost of$ 394,540. The project meets all of the criteria for a
three-year real property tax abatement.
Jean Troutman Poole, citizen member of the Committee, asked Mr. Rick E. Newman, the
petitioner what his hourly rates were for his employees. Mr. Newman stated that the low is
$ 8.00 per hour with the drivers making between $ 9.00 to $ 12.00 per hour plus
commissions.
Following discussion, Council Member Pfeifer made a motion, seconded by Council
Member Sniadecki that Bill No. 98-162 be recommended favorably to Council. The
motion passed.
The Committee then reviewed Bill No. 98-160 which is a five-year residential real
property tax abatement request for G & M Properties. Nancy Van Scoyk stated that an
error had been made in the address listed in Resolution No. 2692-98 which is this same
project but incorrectly listed "Meade Street" instead of"Prospect Street". This Resolution
corrects the street name with all other information such as key numbers, etc. remaining the
same. Mike Urbanski requested that the Council take favorably action on the Resolution
and noted that both the Declaratory and Confirmatory Resolutions on the project would be
heard this evening.
Following discussion, Council Member Sniadecki made a motion, seconded by citizen
member Jean Troutman Poole,that Bill No. 98-160 be recommended favorably to Council.
The motion passed.
Council President Coleman stated that Bill No. 95-98 which would appropriate$ 60,000
from the Economic Development State Grant Fund for the purpose of assisting in the
financing of the South Bend Brewery in the East Race has been requested by the petitioner
to be continued until the December 14th Council meeting. Council Member Hosinski,a
Community anity and Economic Development Committee
Sober 23, 1998
Page 2
shareholder of the project noted that he wants to make sure that there is absolutely no hint
of impropriety with regard to this financing mechanism and therefore has asked for the
continuance.
Council Member Sniadecki made a motion, seconded by Council Member Pfeifer that Bill
No. 95-98 be continued to December 14th and be retained at the Committee level for further
review. The motion passed.
Dr. Varner noted that he had discussed with Council Members Aranowski and Ujdak and
the Council Attorney his desire to receive more information from the Business
Development Corporation (BDC)with regard to loans. He has asked the Council Attorney
to look into formalizing a process whereby the Council would receive information when
loans are initiated and then would receive quarterly updates on the same. Council President
Coleman noted that the Council has members on the BDC and that better communication
with the membership should always be encouraged. Council Member Udjak is a BDC
member.
The Committee then reviewed Bill No. 96-98 which would appropriate$ 138,000 received
from the US Department of Housing and Urban Development for emergency shelter grant
programs. Elizabeth Leonard made the presentation. She noted that this action would
follow a thirty-thy public comment period where no comments were received.
Council Member Pfeifer voiced concern with regard to proposed funding for the Aids Task
Force of the St. Joseph County Health Department. She noted that clients are now taken
care of by the Aids Ministry Aids Assistance. Ms. Leonard noted that the funds would be
for utility expenses and homeless prevention. Council Member Pfeifer noted that this
program has changed since last year. She further noted that Aids Ministry Aids Assistance
did apply for assistance and were denied.
Council Member Ujdak inquired as to whether Aids Ministry Aids Assistance would
qualify to receive funds. Ms. Leonard stated that they did apply and funds could be used
for operations and essential services such as counseling, health care and homeless
prevention.
Following discussion, Council Member Pfeifer made a motion, seconded by Council
Member Sniadecki that Bill No. 96-98 be continued to December 14th and be retained at the
Committee level for further review. The motion passed.
The Committee then reviewed Bill No. 97-98 which would appropriate$3,749,000 from
the Community Development Block Grant Fund together with Bill No. 100-98 which
would transfer$766,300 amount various accounts within the Department of Community
and Economic Development.
Elizabeth Leonard noted that both Bills deal with CDBG funds. Two (2) public hearing
where held on October 15th with regard to these measures. The Urban League gave
comments and requested that their application be re-examined. Ms. Leonard noted that the
City is near its cap in this area. The City administration has agreed to look at other
possible funding sources.
Community and Economic Development Committee
November 23, 1998
Page 3
In response to a question from Council Member Ujdak, it was noted that the Neighborhood
Foot Patrols help fund the walking beats for the SB Police Department.
The Council Attorney noted that § 108 funding has been delayed and that she and Ms.
Leonard discussed this matter with Council Member Kelly. As a result, the shortage is
addressed in the CDBG funds so that the same activities can take place with different
funding sources.
Following discussion, Council Member Pfeifer made a motion, seconded by Council
Member Sniadecki that Bill No.97-98 be recommended favorably to Council. The motion
passed.
Following further discussion, Council Member Pfeifer made a motion, seconded by
Council Member Sniadecki that Bill No. 100-98 be recommended favorably to Council.
The motion passed.
Ms. Leonard then reviewed Bill No. 98-98 which would appropriate$ 130,000 within the
UDAG Fund and Bill No. 99-98 which would appropriate$ 536,416 within Fund 212. It
was noted that both bills would help defray administrative expenses with the funds
addressed In Bill No.99-98 coming from staff contracts.
Council Member Sniadecki made a motion, seconded by Council Member Pfeifer that Bill
No. 98-98 be recommended favorably. The motion passed.
Council Member Sniadecki made a motion, seconded by Council Member Pfeifer that Bill
No. 99-98 be recommended favorably. The motion passed.
Council Member Varner had a question with regard to Bill No. 110-98 which is scheduled
for first reading.Ms.Leonard noted that it was beyond her area.
There being no further business to come before the Committee,the meeting was adjourned
at 5:07 p.m.
Respectfully submitted,
Roland Kelly, Chairperson
Community and Economic Development
Attachments
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