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The June 12,2000 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 White; Cassandra Moran, Bob Hunt, Phil Faccenda, Jr., Kenneth Fedder,
Dean J. Uminski, Thomas F. Veldman, John E. Butkovich, Gerald F. Lerman, Michael
Wojtysiak, Robert Michalak, Terry Bland of the rPOttfb Vatti t thttttie, and Kathleen
Cekanski-Farrand, Council Attorney.
Council Member Kelly stated that the first item on the agenda was to review Substitute Bill
No. 46-00 which addresses the issuance of Economic Development Revenue Bonds for Deluxe
Sheet Metal, Inc.
Mr. Ken Fedder, the attorney for the petitioner, made the presentation. He noted that
Kevin Smith owns the facility and that there would be not liability to the city as a part of its
authorization of the$2,000,000 principal for Economic Development Revenue bonds.
Following discussion, Council Member Ujdak made the motion, seconded by Dr. Varner
that Bill No. 46-00 be recommended favorably to Council. The motion passed.
The Committee then reviewed Bill No. 00-58 which is a ten (10) year real property tax
abatement request from JVE Investment LLC (The Tire Rack,Inc) for the property located at 3851
Olive Road.
Cassandra Moran of Community&Economic Development reviewed her report dated June
2, 2000 (copy attached). She noted that the petitioner intends to build a 440,000 square foot
corporate office and warehouse/distribution facility on approximately forty (40) acres of property.
Tire Rack, Inc will be the lessee and tests performance tires and wheels for passenger automobiles
and light trucks. The project cost are projected to be $ 9.6 million. The report concluded that the
petitioner meets the qualifications of § 2-83 of the South Bend Municipal Code addressing
warehouse development city-wide.
Mr. Dean J. Uminski, a state and local tax executive with Crowe Chizek made the
presentation on behalf of the petitioner. He introduced Mr. Thomas F. Veldman, President. He
noted that the building would help the petitioner meet the competing interests in this area. He noted
that his client consider other locations before settling on South Bend.
Following discussion, Council Member Ujdak made a motion, seconded by Council
Member Varner that Bill No. 00-58 be recommended favorably to Council. The motion passed.
The Committee then reviewed Bill No. 59-00 which is a five (5) year personal property tax
abatement request of Total Enterprises, Ltd., for the property located at 3333 West Lathrop Drive.
Cassandra Moran of Community&Economic Development reviewed her report dated May
26, 2000 (copy attached). She noted that the petitioner manufactures tooling primarily for use in
the automotive and office furniture industries. New engineering machinery and equipment would
be purchased with the total project cost to be between$450,000 and$ 550,000. The report
Community and Economic Development Committee
June 12,2000
Page 2
concluded that the petitioner meets the qualifications of § 2-84.2 of the South Bend Municipal
Code addressing tangible personal property tax abatement.
The Committee then reviewed Bill No. 60-00 which is a five (5) year residential real
property tax abatement request of Habitat for Humanity of St. Joseph County, Inc. for the
properties located at 213,221,and 229 Sadie Street.
Cassandra Moran of Community&Economic Development reviewed her report dated May
30, 2000 (copy attached). She noted that the petitioner will construct three (3) affordable single
family homes of approximately 1,100 square feet each. The petitioner uses volunteer labor and
donated materials. The total project cost is $ 180,000. The report concluded that the petitioner
meets the requirements of§ 2-77.1 of the South Bend Municipal Code addressing Single Family
Real Property Tax Abatement.
Mr. John E. Butkovich, Executive Director of Habitat for Humanity of St. Joseph County,
Inc., made the presentation. He stated that his organization will continue to provide quality homes
for low and moderate families who wish to live in South Bend.
Following discussion, Council Member Varner made a motion, seconded by Council
Member Ujdak that Bill No. 00-60 be recommended favorably to Council. The motion passed.
The Committee then reviewed Bill Nos. 00-61 and 00-62. Bill No. 00-61 is a ten (10) year
real property tax abatement request for Steel Warehouse Company, Inc., Nathan Lerman Trust and
A &F Realty Company for the property located at 2722 Tucker Drive; and Bill No. 00-62 is a five
(5) year personal property tax abatement request for Steel Warehouse,Inc for 2722 Tucker Drive.
Cassandra Moran of Community & Economic Development reviewed her June 7, 200
report (copy attached). She noted that the petitioner is a steel service center specializing in flat
rolled, low carbon steel. The petitioner plans to construct additions of 60,000 to 100,000 square
feet of additional manufacturing, warehousing and related space at an estimated cost of$ 2 million.
New manufacturing equipment and installation is between$ 2.5 and$3 million additional.
Mr. Gerald F. Lerman, Vice-President made the presentation. He noted that his company
is a prime operator in the Industry and with the expansion should become the largest of it's kind in
the world.
Bob Hunt noted that the Economic Development Commission had not acted upon this item.
The Council Attorney stated that she had been in contact with Mr. Beitzinger and so long as the
Commission takes action before the Confirmatory Resolution,there would be no legal problem.
Following discussion, Council Member Varner made a motion, seconded by Council
member Ujdak that Bill Nos. 00-61 and 00-62 be recommended favorably to Council. The motion
passed.
The Committee then reviewed Bill No. 00-63 which is a five(5) year personal property tax
abatement request for Masterbilt,Inc. For the property located at 325 South Walnut Street.
Cassandra Moran of Community&Economic Development reviewed her report of May
Community and Economic Development Committee
June 12,2000
Page 3
31, 2000(copy attached). She noted that the company was established in 1961 and is a machine
shop which supports the aerospace industry. Allied Signal is one of its largest customers. The
petitioner plans to purchase a CNC Turn and Drill machine with live tooling with the cost of the
equipment being $ 150,000. The new equipment will permit the company to maintain quality and
productivity. The report concluded that the petitioner meets the qualifications for a five (5) year
personal property tax abatement under § 2-84.2 addressing tangible personal property tax
abatement.
Mr. Michael Wojtysiak made the presentation on behalf of the petitioner. He introduced the
Company's President Mr. Robert Michalak to the Committee.
Following discussion, Council Member Varner made the motion, seconded by Council
Member Ujdak that Bill No. 00-63 be recommended favorably to Council.
Under miscellaneous business, Cassandra Moran noted that Thomas Lowe has requested to
withdraw Bill No. 00-49 addressing the ten (10) year real property tax abatement request for
Playing Mantis, Inc. for the property located at 3445 William Richardson Court. A letter to that
effect has been filed (copy attached). The Council Attorney noted that the item should be struck
from the agenda at the regular Common Council meeting.
Cassandra Moran further noted that the petitioner for the ten (10) year real property tax
abatement request for Cleveland Road Partners L.P. For the property located at 4647 Cleveland
Road be continued indefinitely.
There being no further business to come before the Committee, Council Member Kelly
adjourned the meeting at 5:05 p.m.
Respectfully submitted,
Council Member Roland Kelly, Chairperson
Community and Economic Development Committee
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