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HomeMy WebLinkAbout06-28-99 Community & Economic Development Committee Zeport: Community and Economic Development Committee to the tommou Eoultstl of the ettp of foutb nb: The June 28, 1999 meeting of the Community and Economic Development Committee was called to order by Council Member Roland Kelly, Chairperson of the Committee at 4:15 p.m.in the Council informal meeting room . Persons in attendance included Council Members: Kelly, Pfeifer, King, Sniadecki, Varner, Ujdak, Sniadecki and Coleman; Nancy Van Scoyk, Robert Hunt, Eugenia Schwartz, Pam Meyer, Carol Bellin, Mike Beitzinger, Sherece M. Tolbert, Gunther Jordan,Robert M.Wilcox,Terry Bland, and Kathleen Cekanski-Farrand. Council Member Kelly noted the petitioner for Bill No. 45-99 has requested that it be continued until the Council meeting of July 12th and that the petitioner for Bill No. 46-99 has requested that it be continued until the Council meeting of July 26th. The Committee then heard a summary of the tax abatement reports (copies attached) from Mike Beitzinger. He highlighted specific points of the five(5)parts from the 1998 Annual Report which address: general information&tax revenue impact; general information& project cost; employment impact; tax delinquencies and abatements approved during the past year. Council Member Ujdak inquired about American Tool and Die. Council Member Pfeifer inquired about the procedure which the department uses to follow- up on those who have not filed their required annual report. Mr. Beitzinger stated that they pursue such individuals or companies through mail and telephone calls. He noted that originally there were approximately 24 who had not filed their reports which has now been narrowed down to about 4. The Council Attorney suggested that certified mail be used for those who have not complied with this filing requirement. She also suggested that Mr. Beitzinger then report back to this Committee of his results so the the Committee could then decide whether to pursue these companies under the applicable provisions of the South Bend Municipal Code. Council Member Kelly agreed with the Council Attorney's suggestion and noted that the Council could then pursue fining those in non-compliance or reviewing their entire abatement grant. Council Member Pfeifer suggested that the City pursue employment compliance also. She further suggested that written statements be pursued by the City. Dr. Varner noted that in reviewing various Compliance Reports, that in some instances petitioners have noted that they have been unable to hire qualified individuals. Mr. Beitzinger noted he would follow-up on all suggestions. Council Member Kelly noted that the Annual Report is a great summary of the overall value of tax abatement as a tool to foster job creation and housing. L . Community and Economic Development Committee June 28, 1999 Page 2 Mr. Beitzinger noted that there was a significant gap in the printing of the Annual Reports due to a data base failure which has since been addressed. Council Member Kelly then noted that the Committee would review Res. No. 99-55 which is a five(5)year residential real property tax abatement request by Neighborhood Housing Services of South Bend, Inc. for the property located at 1129 and 1130 Sorin Street. Nancy Van Scoyk reviewed her report dated June 10, 1999, (copy attached) which concluded that the project meets the qualifications for a five (5) year residential real property tax abatement. Carol Bellin spoke on behalf of the petitioner. She noted that NHS proposes to build two (2) new single family houses of 1,100 square fee costing approximately $ 65,000 each. She showed before and after photographs of similar projects and provided a map of the area. She noted that prior to this program, 50% of persons in the target area were homeowners, whereas now they are close to 70%. She added that home owner education and post-purchase support are given. Council Member King voiced concern about 1,100 square foot one-story houses being placed next to the recently renovated 100 year old,two-story home located at 1131 Sorin. He stressed the need to compliment existing structures so that values would not be deterred. Council Member Pfeifer agreed with Council Member King and noted that often only one particular style is shown. Ms. Bellin noted that she was not on the selection committee for the design, however Weiss Homes provided the design which was selected. Following discussion, Council Member King make a motion, seconded by Council Member Ujdak that Res. No. 99-55 be recommended favorably to the full Council. The motion passed. The Committee then reviewed Res. No. 99-56 which is a five (5) year personal property tax abatement request by Exacto, Inc of South Bend for the property located at 1137 South Lafayette Boulevard. Nancy Van Scoyk reviewed her report dated June 15, 1999, (copy attached) which concluded that the project meets the qualifications for a five(5)year personal property tax abatement. Mr. Gunther W. Jordan, President of Exacto, Inc of South Bend noted that his precision machine shop manufactures precision machined parts and components for diesel fuel injector systems, turbochargers and air compressors for trucks. In order to stay competitive,the company must purchase and install new equipment at a projected cost of $760,000. Eight (8) new permanent, full-time jobs would be created the first year with a new payroll of$ 166,400, while maintaining eighty (80) permanent full-time jobs. Mr. Jordan added that 43 of his employees are minorities with eight (8) employees living in the zone. Two years ago his company was awarded the Cummings Award. Community and Economic Development Committee June 28, 1999 Page 3 Mr. Jordan that he and his wife believe in giving back to the community and therefore created the Jordan Center at IUSB. Council Member Pfeifer noted that Mr. Jordan has exceeded the projections for minority employment. She added that the Jordan Center at IUSB is beautiful and plays an integral role in training and education. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Sniadecki that Res. No. 99-56 be recommended favorably to the full Council. The motion passed. The Committee then reviewed Res. No. 99-57 which is a three (3) year real property tax abatement request for the properties located at 4245 Meghan Beeler Court for Robert M. Wilcox. Nancy Van Scoyk reviewed her report dated June 22, 1999, (copy attached) which concluded that the project meets the qualifications for a three (3) year real property tax abatement. Mr. Robert M.Wilcox,the President of Michiana Micro Inc. d/b/a Connecting Point,noted that his company builds to order custom manufactured PC's and provides maintenance services on them. He proposes to construct a 12,000 square fool building in the West Cleveland Road Industrial Park for an estimated cost of$450,000 to$550,000. Three(3) new permanent full-time jobs would be created the first year with a new annual payroll of $ 135,000, while maintaining fifteen (15) existing full-time jobs. He added that his expenses would increase four-fold with this expansion. Following discussion, Council Member Ujdak made a motion, seconded by Council Member King that Res. No. 99-57 be recommended favorably to the full Council. The motion passed. Under miscellaneous business the Committee reviewed Res. No. 99-58 which is a resolution which would authorize the Mayor to submit to the State of Indiana, Department of Commerce,an application for a community planning fund grant. Pam Meyer introduced Sherece M. Tolbert, a Neighborhood Planner, who then noted that the grant funds would assist in the creation of the Keller Park Neighborhood Strategic Plan. There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 5:03 p.m. Respectfully submitted, Council Member Roland Kelly, Chairperson Community and Economic Development Committee KCF:kmf Attachments