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HomeMy WebLinkAbout01-11-99 Community & Economic Development Community and Economic Development Committee South Bend Common Council The January 11, 1999 meeting of the Community and Economic Development Committee was called to order by its Chairperson,Council Member Roland Kelly at 4:45 p.m. in the Council Informal meeting room. Persons in attendance included: Council Members: Aranowski,Pfeifer,Kelly,King, Varner,Ujdak, and Coleman; Terry Bland,Eugenia Schwartz,Kevin Butler,Elizabeth Leonard, Chris Lewis, William Blue, James Seiver,Professor Poole, Citizen member,Nancy E. Van Scoyk and Kathleen Cekanski-Farrand. Council Member Kelly noted that the first item on the agenda was to review Bill No. 99-1 which is ten(10)year real property tax abatement request for the property located at the northwest corner of Olive Road and Old Cleveland Road for Olive South Bend,LLC. Nancy E. Van Scoyk,Economic Development Specialist,reviewed ewed the January 6, 1999 report(copy attached)which noted that the project would include the construction of two(2) industrial warehouse distribution and/or light manufacturing facilities. Phase I would cost$ 3,000,000.00 and Phase II would cost$6,000,000.00. It further noted that the proposed project does not meet the criteria for a ten year tax abatement. Mr. Kevin Butler,the attorney for the developer,then made the presentation. He noted j' that the buildings would be constructed on 19.24 acres with the first phase being known as "New Union Business Center". His client believes that the project should be considered as a special. exception in light of the enormous risk being taken with no guarantees of lease revenues for the 9 million dollar project. Professor Poole inquired whether this project would be considered a spec-flex project and was advised that it was. In response to a question from Dr. Varner,Mr. Butler noted that the first phase should be completed by early Fall, 1999. The Council Attorney noted that Section VI of the Resolution should be amended to reflect the special exception provisions if the Council would proceed on this issue(proposed language attached). • Following discussion,Council Member Ujdak made a motion, seconded by Council Member King,that Bill No. 99=1 as to be amended be recommended favorably. The motion passed. The Committee then reviewed e evrewed Bill No. 99=2 which is a three(3)year real property tax abatement request for 4335 Meghan Beeler Drive North for JABCO Limited Liability Company (Bludot, Inc.). • Community and Economic Development Committee Meeting Minutes Nancy E. Van Scoyk,Economic Development Specialist,reviewed the December 22, 1998 report(copy attached)which noted that the project would include the construction of a 17,900 square foot building which would be leased to Biudot, Inc. The total project cost is projected to be $ 800,000.00 and meets the criteria for a three(3)year real property tax abatement request. Mr. William C. Blue noted that he would be moving the business which has operated in Mishawaka since 1975 to South Bend. In response to a question from Professor Poole,he noted that the average hourly wage is $ 10.00 before benefits which include retirement, dental and medical insurance. Council Member Pfeifer inquired as to why the business had no minorities as employees. Mr. Lewis noted that they would work with Workforce Development. Council Member Pfeifer suggested that other agencies such as NAACP and the Urban League could be utilized and requested a report as to their policies in this area. Council Member Aranowski spoke in favor of the project. Following discussion,Council Member Ujdak made a motion,seconded by Professor Poole that Bill No. 99-2 be recommended favorably. The motion passed. The Committee then reviewed Bill No. 99-3 which is a five(5)year personal property tax abatement request for the property located at 2930 Foundation Drive for Eaton Corporation. Nancy E. Van Scoyk,Economic Development Specialist,reviewed the December 30, 1998 report(copy attached)which noted that the petitioner is a manufacturing industry which forges parts for use in the truck manufacturing industry. A new forge press and auxiliary equipment would be purchased for a cost of$ 2,300,000.00. Mr. James Seiver,Plant Engineer,made the presentation. He noted that this is his fourth time in coming before the Council. The business has been in operation for ten(10)years. It has 130 employees and six(6)more will be added. One-third of the employees are minorities. Their projects are sold to companies in China,Brazil and England. In response to a question from Professor Poole, it was noted that the average hourly wage is $ 14.00 with 40%for benefits. Council President Coleman spoke in favor of the project. Following discussion,Council Member King made a'notion, seconded by Council Member Ujdak that Bill No. 99-3 be recommended favorably. The motion passed. Under miscellaneous business,Council Member Kelly noted that two(2)individuals will be interviewed on Wednesday at 4:00 p.m. for the vacancies on the Human Rights Commission. Council President Coleman noted that the meeting agenda inadvertently omitted the Informal Meeting which will be held at 6:45 p.m. Community and Economic Development Committee Meeting Minutes Elizabeth Leonard inquired about the status of Bill No. 95-98. It was noted that it would be heard at 7 p.m. There being no further discussion,the meeting was adjourned at 5:10 p.m. Respectfully submitted, Council Member Roland Kelly Chairperson COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE Attachments Community and Economic Development Committee Meeting Minutes