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HomeMy WebLinkAbout02-28-00 Community & Economic Development Qtommtttes *sport: Community and Economic Development Committee to OS E ommott f outtstl of tit City of *nth Stub: The February 28,2000 meeting of the Community and Economic Development Committee was called to order by Council Member Roland Kelly, Chairperson of the Committee at 5:07 p.m. in the Council informal meeting room Persons in attendance included Council Members: Aranowski, Pfeifer, King, Varner, Ujdak, Kelly, White, Coleman and Kirsits; Cassandra Moran, Mike Beitzinger, Jeff McGowan,James Axelberg,Mr.McDaniels, Brad Toothacher,Terry Bland of the*nth lOottr Irributtt, and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly noted that the first item on the agenda was to review Bill No. 00-18 which is a five(5) year personal property tax abatement request for General Sheet Metal Works, Inc. for the property located at 1902 South Main Street. Cassandra Moran of Community & Economic Development reviewed her report of February 21, 2000 (copy attached). She provided a new page 2 to her report (copy attached). She noted that the company was founded in 1922 and provides metal fabricated metal products to lawn, garden, and towing equipment industries. The company proposes to add three(3)major pieces of equipment. which will create eight (8)new permanent full- time jobs and maintain the 85 existing full-time jobs. Mr. James R. Axelberg,the owner and Mr. Jeff McGowan, CPA, made the presentation. They noted that the new equipment will cost over one million dollars and showed pictures of the equipment they wish to purchase. The capital improvements will permit the company to remain competitive and prepare for future growth and maintain quality of services and products. They noted that in the past two (2) years they have increased the number of full-time employees by forty (40)and should be up to 110 in the near future. In response to a question from Council Member Ujdak, it was noted that the $ 30,000 salaries excludes benefits and that the company pays for all medical insurance costs for their employees and their families. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Kirsits that Bill No. 00-18 be recommended favorably to Council. The motion passed. Council Member Kelly noted that the City Clerk's Office received a Memorandum dated February 28, 2000 on Bill No. 00-19 requesting that this five (5) year personal property tax abatement request for Curtis Products, Inc. be continued until the March 13, 2000 meeting(copy attached). The Committee then reviewed Bill No. 00-20 which is a six (6) year real property tax abatement request for G.D. &A.M. McDaniels d/b/a McDaniel's Harley-Davidson for the property located at 1910 Lincoln Way East. Mr. Michael Beitzinger of Community & Economic Development reviewed Cassandra Moran's report of February 23, 2000 (copy attached). It was noted that the petitioner plans to build an 11,200 square foot addition to their existing business. It would provide Community and Economic Development Committee February 28,2000 Page 2 for additional service bays and storage for an estimated construction cost of$ 329,000. Seven(7)new permanent jobs will be created the first year with a new annual payroll of $ 181,000 and twelve(12) existing permanent full-time jobs will be maintained. Mr. Beitzinger noted the the petitioner has not been granted any previous tax abatements. The Resolution is requesting the tax abatement as a special exception under § 2-84 of the South Bend Municipal Code. Mr. G.D. McDaniels made the presentation. He noted that due to the construction of the underpass over the past 3 year period that his business declined 25-30%. The addition will more than double the size of his facility and will allow him to have additional show room space which are needed for an increase in new unit sales. The project should be completed in August 2000. Dr. Varner,the District Council Member for the area noted that this business does not have access on the west and south due to the new underpass. It was noted that McDaniels Harley Davidson has been in business since 1968 and moved to their present location in 1989. Council Member Kelly noted that the reasons set forth in § 6 noting the long standing family-owned business in the City, the economic hardship during the construction of the Ironwood underpass, the decreased access to the business among other things more than justifies favorably consideration. Mr. Beitzinger also noted that due to his location, the business brings many people from outside of the city limits into the city to do business. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Kirsits that Bill No. 00-20 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 00-21 which is a reconfirming resolution of the declaratory resolution for the southeast corner of Niles Avenue and Corby Boulevard for a three(3)year real property tax abatement for C.D.T., L.L.C. Mr.Beitzinger reviewed his February 21,2000 report (copy attached)would would extend the designation period for nine(9) months for CDT. The extension is necessary in light of the numerous delays experienced due to contractor problems for this multi-family housing project for a total of fifteen (15)townhouses. The reconfirming resolution would give the developer another six (6) months on top of the nine (9) months for a total of 1 year 3 months to complete the first building. If the developer decides to go forward with the two (2) remaining buildings, the developer will be required to submit a new tax abatement application. Mr. Beitzinger presented a letter dated February 28, 2000 requested by the Council Attorney which verifies that the former spokesperson for the project, Dan Thorsberg,is no longer with the company, and that the new spokesperson will be Zvonko Barbalic(copy attached). In response to a question raised by Council Member King, Mr. Beitzinger verified that once the extension period is past that the petitioner will be required to submit a new tax abatement application if the project is to go further, since once the designation expires it would not be eligible. Community and Economic Development Committee February 28, 2000 Page 3 Following discussion, Dr. Varner made a motion, seconded by Council Member Kirsits that Bill No.00-21 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 99-126 which is a resolution which would terminate the ten(10)year real property tax abatement for Bangor Refrigeration Corporation. The Committee then reviewed the February 28, 2000 Memorandum addressing Kysor/Warren Company (former Bango Refrigeration) (copy attached). Mr. Mike Beitzinger of Community&Economic Development provided an update on the progress of Kysor/Warren, the former Bangor Refrigeration Company which ceased its operations in October of last year. He noted that this Bill was originally set for public hearing on December 13, 1999 and was continued due to the interest by a prospective buyer of the property. Colbert Packaging,the proposed purchaser has indicated that the tax abatement would be an integral part of its decision. Mr. Brad Toothacker,a real estate agent, indicated that negotiations are continuing on the proposed purchase by the Chicago based company of the 90,000 square foot facility. A letter of intent has been signed for the$2 million building. Mr. Toothacker noted they are scheduled to sign the agreement this week and that over$ 10,000 of work has already been done to the property. Further developments on the project would be transmitted to the Committee and the Council through Mr. Beitzinger on this matter. Mr.Beitzinger also noted that 2000 taxes are payable in!2001 and if the March 1st deadline in the Auditor's Office is not met that they would not be affected. There being no further business to come before the Committee, Council Member King adjourned the meeting at 5:30 p.m. Respectfully submitted, Council Member Roland Kelly, Chairperson Community and Economic Development KCF:kmf Attachments