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HomeMy WebLinkAbout06-26-00 Community & Economic Development ommtttte Z of t: QCommunitt anti etanoinit Attelopmtnt tomnitttt The June 26, 2000 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:50 pm in the Council Informal Meeting room. Persons in attendance included Council Members Aranowski, Pfeifer, Kelly,King,Varner, Ujdak, Coleman, White and Kirsits; Beth Leonard, Ricardo Milton, William A. Panzica, Kevin Smith, Robert Hunt, Bill R. Owen, Terry Bland of the iiiouth Ub 'rributttt, and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly noted that the first item on the agenda was to review Bill No. 48-00 which would transfer$ 60,000 among various accounts within the Department of Community and Economic Development. Beth Leonard made the presentation. She noted that the projects are within the Community Development block grant program. Council Member White inquired about the T aSalle Center addition. Ms. Leonard noted that § 108 HUD funds were used for that project. Following discussion, Council Member Kirsits made a motion, seconded by Council Member Varner that Bill No. 48-00 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No, 00-74 which is a five (5) year residential real property tax abatement request for American Home Dreams, Inc. For the properties located at 113, 115, 138 Broadway and 710 Pennsylvania Avenue. Cassandra Moran of Community and Economic Development reviewed her report dated June 20, 2000(copy attached). She noted that the project will include the construction of four(4) new homes of 1,600 square feet each having an approximate value of $ 107,100. The report concludes that the petitioner meets the requirements of§ 2-77.1 of the South Bend Municipal Code addressing Single Family Real Property Abatement. Mr. Ricardo Milton of American Home Dreams,Inc,made the presentation. In response to a question from Dr. Varner, he noted that all of the lots have been sold. Council Member Kelly noted that he is on the Board of American Home Dreams, Inc. but would not realize any financial gain from acting on the proposed resolution. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Bill No.00-74 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 00-75 which is a ten (10) year real property tax abatement request for Crescent Michiana Properties, Inc. For the property located at 3801 Crescent Circle. Cassandra Moran of Community and Economic Development reviewed her report dated May 30,2000(copy attached). She noted that the project will involve the construction of a 28,800 square foot addition to their existing building for a cost of $ 2 million. Associates AIS Output Management Services Operation will be the tenant. They deal in the computer processing,data Community and Economic Development Committee June 26, 2000 Page 2 preparation and processing services. 75 new jobs will be created while maintaining 125 jobs. The petitioner does not meet the qualifications for an abatement due to the location and proposed use of the proposed addition. Therefore the petitioner is petitioning for consideration as a special exception for the reasons set forth on page 3 of the May 30th report. Special exception consideration would be pursuant to § 2-84 of the South Bend Municipal Code addressing "Council's Authority to Enlarge Real Property Tax Abatement General Standards". Mr. William A. Panzica made the presentation. He noted that the credit cards operations of BP and Texaco would take place at the facility. In response to a question from Dr. Varner, he noted that the petitioner would not be seeking personal property tax abatement. The lease will be for seven (7) years. Council Member Ujdak noted that the original tax abatement on the building was for ten(10) years and that they have outgrown that facility. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Bill No. 00-75 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 00-76 which is a ten (10) year real property tax abatement request for DSM Holding, LLC d/b/a Deluxe Sheet Metal for the property located at 6661 Lonewolf Court. Cassandra Moran of Community and Economic Development reviewed her report dated June 20, 2000 (copy attached). She noted that the company was established in 1971 and has grown from a two-care garage to the business it is today. They propose to construct a 47,000 square foot building at a cost of$ 2,575,200. Four (4) new jobs will be created. The petitioner meets the qualifications for a ten (10) year real property tax abatement under § 2-82 addressing Industrial Development City-Wide. Kevin Smith made the presentation. He noted that the location with docks and access to the toll road is critical to spearhead further development. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Kirsits that Bill No. 00-76 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 00-77 which is a five (5) year real property residential tax abatement request for D & H Home Builders, Inc. For the property located at lot numbers 1 through 46 of Royal Oak Estates Subdivision. Cassandra Moran of Community and Economic Development reviewed her report dated June 21, 2000 (copy attached). She noted that the project will include the construction of 46 new single family homes of 1,700 to 3,000 square feet each for a total project cost of$7,360,000. The report concluded that the petitioner meets the qualifications for a five year residential tax abatement pursuant to § 2-77.1 of the South Bend Municipal Code addressing Single Family Real Property Abatement, however noted that the property is currently part of a voluntary annexation project which is not complete. Mr. Bill R. Own, President of Bosh Design Group, Inc. made the presentation. He presented two (2) letters) both dated April 14, 2000 one to John T. Lenz of the County Auditor's Office and one to Dean Dolph,a Developer,addressing the abatement and the annexation. The Council Attorney recommended changes to sections I and X of the Resolution to Community and Economic Development Committee June 26, 2000 Page 3 address the location of the project in Section I and to address the annexation process. (See Resolution for language-copy attached). Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Resolution No. 00-77 as to be amended be recommended favorably to Council. The motion passed. Under miscellaneous business, Council Member King voiced concern about certain practices of the Business Development Corporation (BDC) and recommended that additional information about their charter and loan procedures be sought. He stated that he has heard many disturbing comments about their operations and their role. Council Member Ujdak stated that their loan officer is Mike Beitzinger and that he should also be invited along with Mr. Cavanaugh, their President. Council Member Kelly suggested that Don Inks be invited to attend a special Committee meeting to address these concerns. He stated that he would follow-up on this matter. There being no further business, Council Member Kelly adjourned the meeting at 5:27 p.m. Respectfully submitted, Council Member Roland Kelly,Chairperson Community and Economic Development Committee KCF:kmf Attachments