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The November 7, 2001 joint meeting of the Community and Economic Development Committee
was called to order by its Chairperson Council Member Roland Kelly at 3:05 p.m. in the Council
Informal Meeting Room.
Persons in attendance included Council Members Varner, King, Coleman and Kelly; Michael
Beitzinger, Mike Kruk, and Kathy Cekanski Farrand, Council Attorney.
Council Member King passed out a document setting forth a draft of the Tax Abatement
Procedures (§ 2-76 through § 2-76.4) and Michael Beitzinger passed out an 8-page document
containing draft definitions(copies attached).
Council Member Kelly suggested that we begin discussion focusing on Council Member King's
handout. A section by section discussion then took place. Council Member King noted that the
"super-sized projects" are not addressed in the handout, but perhaps they should be a separate
section. It was suggested that Jon Hunt address this concern at the next Committee meeting.
Council Member Varner voiced concern that we are focusing on St. Joseph County rather than the
City of South Bend for several categories in the "add-on abatement" section. He noted that Di
for example does not have its principle place of business in South Bend, but rather in Columbus,
Ohio.
Mike Kruk noted that out-of-county contractors are required to post a $ 5,000 performance bond
and pay a$ 75.00 fee to the Building Commissioner.
It was suggested that Don Fozo be contacted by Michael Beitzinger and have him address three(3)
projects such as Crowe Chizek, Tire Rack and Environmental Health Laboratories to see the
number of local contractors and sub-contractors on each project.
Council Member Varner voiced concern over rewarding one group over another, whereby one
group is favored. Discussion on employees v. independent contractors then took place. Council
Member Coleman noted that day laborers do not receive any benefits.
Mike Kruk stated that many working in the roofing,concrete and dry wall areas do not get benefits
which he termed"illegitimate contractors"and work throughout the residential market. Often times
they do not file their 1099 for income tax purposes or they use undocumented workers and the end
result is that the government does not get their share of taxes.
Council Member King noted that the City of Indianapolis has established minimum wage
thresholds for each of the nine(9) townships in the area.
Council Member Coleman suggested that in the area of wages and benefits that 100 %or higher of
the SBMSA should be the standard. Council Member Coleman suggested that Susan Wallace
review all of the benefit area proposed language and provide guidance to the Committee at the next
meeting on any suggested changes. It was recommended that Michael Beitzinger contact Susan
prior to the next meeting so that she could review the document.
Several language changes were suggested as reflected in the cross-thrus on the attached document.
Council Member King agreed to bring a revised copy of the proposed draft to the next Committee
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Community and Economic Development Committee
November 7, 2001
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meeting.
Council Member Coleman suggested that car pooling be added to the "Provide Transportation
Assistance"category so long as it did not raise a liability concern.
Michael Beitzinger noted that currently the creation of jobs is not a current requirement of tax
abatement.
Council Member King suggested that the creation of jobs could be an element which would be
addressed in the Memorandum of Understanding(MOU),and perhaps included penalties if it is not
achieved. After much discussion there was a consensus that the MOU contain language that
requires compliance with each of the standards.
It was suggested that Jon Hunt review the proposed"Workforce Related Actions"¶a, b, and e and
provide guidance to the Committee at their next meeting. It was also suggested that Pam Meyer
review proposed "Workforce Related Actions" 5 d addressing "Provide Targeted Hiring
Preferences"and provide suggestions at the next Committee meeting.
Council Member King then demonstrated his computer program which could be used at a future
Committee meeting when the Committee begins discussion on the assignment of values to the
various criteria.
Under miscellaneous business, Council Member Coleman noted that he spoke with Chris Davey
with regard to the Erksine Plaza proposed tax abatement which will be coming before the Council
in the near future.
Michael Beitzinger noted that he has a proposed residential tax abatement in the area of Jefferson
and Lake coming before the Council on Monday. It proposes manufactured homes which are built
to HUD standards as opposed to stick-built homes. It was noted that the Council did approve a
subdivision which had modular homes which are built to the same standards as stick-built homes.
Council Member Coleman noted that he suggested that Mike check with the District Council
Member and then review how precedent setting it would be.
Council Member Kelly suggested that such concerns be reviewed on a case by case basis which the
petitioner having the burden of convincing the Council that his or her project warrants tax
abatement consideration.
Council Member Kelly stated that the next meeting will be scheduled for Wednesday, November
21st at 1:30 p.m. There being no further business to come before the Committee, Council Member
Kelly adjourned the meeting at 5:15 p.m.
Respectfully submitted,
Council Member Roland Kelly, Chairperson
Community and Economic Development Committee
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Attachments