HomeMy WebLinkAbout08-09-99 Community & Economic Development Commitat Zeport:
Community and Economic Development Committee
'Co Os Common tonna! of tfh: City of ibout1j Pen :
The August 9, 1999 meeting of the Community and Economic Development Committee
was called to order by Council Member Roland Kelly, Chairperson of the Committee at
4:50 p.m.in the Council informal meeting room.
Persons in attendance included Council Members: Kelly, Pfeifer, King, Sniadecki,
Varner, Ujdak, and Sniadecki; Eugenia Schwartz, Mike Beitzinger, Brian Stamets,
Rebecca M. Dodd, Ann Kolata, Jon Hunt, Robert Hunt, Jean Troutman-Poole, Terry
Bland, and Kathleen Cekanski-Farrand.
Council Member Kelly noted that the first item on the agenda was to review Bill No. 99-80
which is a five (5) year residential real property tax abatement request for the property
located at 3915 Riverside Drive for Bryon and Heather Stamets.
Mike Beitzinger reviewed the July 30, 1999 report (copy attached) on the five (5) year
residential real property tax abatement request. He noted that the petitioners propose to
build a new home on three (3) lots that have been replated into one (1) lot on Riverside
Drive. It will be approximately 1,200 square feet and Mr. Stamets doing much of the work
himself.The report concludes that the petitioner meets the local requirements.
Mr. Stamets stated that he needs the tax abatement in order to move forward on the project.
Following discussion, Council Member King made a motion, seconded by Council
Member Ujdak that Bill No. 99-80 be recommended favorably to Council. The motion
passed.
The Committee then reviewed Bill No. 99-81 which is a five(5)year personal property tax
abatement request for the property located at 1702 South Robinson Street for Bamar
Plastics, Inc.
Mike Beitzinger reviewed the July 30, 1999 repot on the five(5) year personal property
tax abatement request (copy attached) noted that the petitioner is a custom molding
company serving the automotive and electronic industries nationwide. The petitioner plans
to purchase four (4) new Boy machines 50 ton presses, a drying and conveying system,
grinders, spruce pickers and supporting equipment for a total cost of$ 387,180.00. The
report concludes that the petitioner meets the local requirements.
Rebecca M. Dodd, CPA, made the presentation for the petitioner. She noted that it is a
growing company which wishes to remain competitive. She noted in response to a
questions from Citizen Member Jean Troutman-Poole that in 1998 the company had 12
women and 1 Black and in 1999 there are 2 Hispanics and 1 Black working at the
company. The average wage before benefits is$20,000 to $29,000.00.
Following discussion, Council Member Ujdak made a motion, seconded by Council
Member Sniadecki that Bill No. 99-81 be recommended favorably to Council. The motion
passed.
Community and Economic Development Committee
August 9, 1999
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The Committee then received an update from Jon Hunt on the location for Studebaker parts
inventory. He noted that a financing plan has been placed before Mike Lambert, noting that
time is of the essence. He noted that the exterior of the building must be addressed,
however they were also considering relocations which would not have financial
considerations by the Commission. The roof would be in a continuous patching situation.
A lease for$ 1.00 per year from the Redevelopment Commission is being considered in
AO j addition to other conditions. Mr. Hunt noted that he urged individual members of the
Studebaker Drivers Club to be contacted fro potential investments, since the Club itself has
noted on numerous occasions that it does not have finances for investment. The City has
invested more than $ 210,00 for the building and property plus $ 70,000 to $ 80,000 for
architecture/engineering expenses. MR. Hunt stated that the City cannot finance this
project on its own.
Mr. Robert Hunt stated that there are no simple solutions. He noted that one estimate
projects that over one million dollars is necessary just to make the building habitable.
Dr. Varner noted that approximately a year ago the property was purchased by eminent
domain with$750,000 being paid for the building and$2 million for the parts inventory.
There was to be a commission back to the City on sales of parts. It was noted that to date
the City has received approximately $ 100,000 in commissions. John Broden is working
on this matter.e . It has been estimated that between 1,100 to 1,700 truck loads of parts are
currently housed.
Mr. Jon Hunt noted that between old inventory, new inventory, work in progress and
rehabilitated parts,that there could be$ 1.8 million involved.
Council Member King voiced concern about further involvement in the project, and does
not understand the project from a "reasonable business basis".
Jean Troutman-Poole voiced similar concerns as Council Member King.
In response to a question from Council Member Sniadecki, Mr. Jon Hunt noted that the
Allied Proj ect s building has approximately 1 1/2 million square feet in their three (3)
buildings. He noted that Mayor Luecke
is putting a cap on the City's involvement.
ement.
Council Member Ujdak also voiced concerns with the overriding issue being time. Ann
Kolata noted that parts could be liquidated with a "drop dead" deadline being April 1,2000.
The land is to be cleared in the Fall f 2
0 2000.
Council Member Pfeifer stated that the City should learn from its mistakes and not continue
to make investments if the project is going no where.
Council Member Kelly noted that Council Member Hosinski requested that Emerson Forest
be placed on today's Committee agenda, however he is absent today. Council Member
Ujdak suggested it be discussed at a later date. He noted that he drove through the
development today and noted two (2) new stick built homes which are almost completed.
Council Member Kelly stated it would be discussed ata later point in time.
_ _
There being no further business to come before the Committee, Council Member Kelly
adjourned the meeting at 5:27 p.m.
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