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HomeMy WebLinkAbout04-23-01 Community & Economic Development f ~ totttmitt ott: c ommuutti ant- Commit atttlopittintt, Qtommtttot The April 23, 2001 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:10 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members: Aranowski, King, Kelly, Pfeifer, White, Varner, Ujdak, Coleman and Kirsits; Community Development Director Jon Hunt, Economic Development Specialist Mike Beitzinger, Thomas Bodnar, Robert Hunt, Michael Wojtysiak, Mark A. Witucki, Ann Kolata, Michael I. Kile, William Keiser, Andy Laurent, Ann Bruneel, Yatish Joshi, Terry Bland of the 'outs 5 'Uti IrribUii, , and Kathleen Cekanski-Farrand, Council Attorney. Bill No. 01-32 requesting a five(5) year personal property tax abatement for the property located at 1827 was reviewed by the Committee. Michael Beitzinger reviewed Cassandra Moran's report dated April 17, 2001 (copy attached). He noted that the petitioner, Solvay Automotive Plastics &Systems, Inc. is a custom injection molder for the automotive industry. They proposed to purchase and install new equipment which would be used to manufacture nylon air intake manifolds for General Motors and Daimler Chrysler with such equipment costing $ 18 million. The report concludes that the petitioner meets the qualifications for a five(5) year personal property tax abatement under§ 2-84.2 of the South Bend Municipal Code addressing"tangible personal property tax abatement". Mark A. Witucki made the presentation for the petitioner. He provided copies of pictures of the air intake manifolds (copies attached). In response to a question from Dr. Varner, mr. Witucki stated that thirty(30)full-time jobs would be created. Council Member Varner made a motion, seconded by Dr. Ujdak that Bill No. 01-32 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 01-33 which is a five (5) year personal property tax abatement request for the property located at 2920 West Sample Street. Mr. Beitzinger reviewed Cassandra Moran's report dated April 17, 2001 (copy attached). The petitioner, Petersen Graphics Group proposes to purchase equipment to replace outdated equipment which will keep their business competitive. The project cost is $ 355,000.000. The report concluded that the project meets the qualifications for a five (5) year personal property tax abatement under§ 2-84.2.1 of the South Bend Municipal Code. Michael I. Kile, CEO/President of Petersen Graphics Group made the presentation. He noted that the equipment would permit his company to be more efficient as well as competitive. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Bill No. 01-33 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 01-34 which is a three(3) year real property tax abatement request for the property located at 4246 Meghan Beeler Court requested by Bee&Deb,LLC. Mr. Beitzinger reviewed Cassandra Moran's report dated April 17,2001 (copy attached). He Community and Economic Development Committee April 23, 2001 Page 2 noted that the petitioner does business at Tatay Drilling. They plan to utilize most of the 17,820 square foot industrial building with the other portions being leased to small shop operators and manufacturers. The project cost is $ 450,000 and would create two (2) new permanent full-time jobs. William B. Keiser made the presentation along with Michael Wojtysiak made the presentation. It was noted that the land cost was an additional $ 720,000. Mr. Keiser noted that he hopes that a small business incubator could be developed at the location. In response to a question from Dr. Varner, Mr. Keiser noted that Jasper Manufacturing would be bringing high-end equipment to the area if they relocate. Council Member Ujdak stated that he has a client relationship with the petitioner;however based on an opinion from the Council Attorney he would not have a substantial conflict of interest and would participate in the discussion and final action on this Bill. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Bill No. 01-34 be recommended favorably to Council. The motion passed. Council Member Kelly then asked for a presentation on Bill No. 01-35 which is a ten(10) year real property tax abatement request of No Trump, Inc. & Foxtrot Realty Corporation and Bill No. 01- 36 which is a five (5) year personal property tax abatement request of GTA Containers, Inc., both of which are for the property located at 4201 Linden Avenue. Mr. Beitzinger reviewed Cassandra Moran's report dated April 18, 2001 (copy attached). (The Council Attorney requested Mr. Beitzinger file a replacement cover letter in light of the mis-prints contained in paragraph#1 of said letter). He noted that the petitioner proposes to build a 60,000 square foot manufacturing facility and to purchase new equipment for a total building cost of $ 1,510,000 and equipment cost of$300,000. Yatish Joshi, President of the company, made the presentation. He stated that the company started in 1998 and that they manufacture collapsible containers for the U.S. Government, Department of Defense. In light of increasing demands of the government, they need to increase their production for both the armed services as well as the American Red Cross. Council President Pfeifer thanked Mr. Joshi for his detailed presentation and for focusing on# 13 through# 17 of the petition. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that Bill No. 01-35 be recommended favorably to Council. The motion passed. Council Member Varner then made a motion, seconded by Council Member Kirsits that Bill No. 01-36 be recommended favorably to Council. The motion passed. Ann Kolata, Senior Redevelopment Specialist, then made a presentation on Bill No. 01-43 which is a resolution to adopt the Studebaker/Oliver Plow Works Redevelopment Strategy. She provided a copy of the"Studebaker/Oliver Plow Works Redevelopment Strategy"dated November 1999 and approved by the South Bend Redevelopment Commission on October 13, 2000 to the Council (copy attached). Mrs. Kolata stated that in 1950 there were 21,000 jobs in Studebaker/Oliver Plow Works area and in 2001 there are 79 jobs. Building conditions have continued to deteriorate. A Community and Economic Development Committee April 23, 2001 Page 3 25-member Advisory Committee was appointed by the Mayor to study the area. $ 13-$33 million is needed for clearing, environmental remediation and relocation costs. She requested the endorsement of the Council for the plan so that it would be official. To date the City has torn down 1.2 million square feet of structures with 4.3 million square feet of buildings yet to be torn down, of which 85% of the buildings are vacant. She then showed aerial photographs of the subject area. Council Member Kirsits noted that taking inner city property and making it productive again is a step in the right direction. Council Member Kirsits then made a motion, seconded by Dr. Varner that Bill No. 01-43 favorably to Council. The motion passed. Mr. Hunt noted that approximately 140 acres are involved in the Studebaker/Oliver Plow project, whereas Blackthorne is utilizing approximately 60 acres per year. Creating tax base and clearing eye sores in the inner city are important. Council President Pfeifer noted the importance of having the plan officially approved. In response to a question from Council Member Ujdak, it was noted that negotiations are continuing with the owners of Allied Products property and Huckins which will continue over the next several months. The Committee then reviewed Bill No. 01-44 which is a resolution authorizing the Mayor to execute documents with the US Department of HUD related to grants from the Neighborhood Initiative Program and the Economic Development Initiative Program. Mrs. Kolata made the presentation. She noted that two (2) grant applications would be submitted once the resolution is adopted. Council Member Kirsits made a motion, seconded by Council Member Varner that Bill No. 01-44 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 31-01 which would establish the Sample Ewing Development Area Fund No. 209 for the Studebaker/Oliver Revitalization grant monies. Mrs. Kolata made the presentation noting that the fund is necessary in order to receive the federal grant dollars. Council Member Kirsits made a motion, seconded by Council Member Varner that Bill No. 31-01 be recommended favorably to Council. The motion passed. The Committee reviewed Bill No. 32-01 which would appropriate $ 90,000 within the UDAG Fund (Fund#410). Mr. Jon Hunt made the presentation. The funds would be used for predevelopment costs for pending development projects to cover the costs for the preparation of market studies, appraisals, preliminary site plans, surveys, and related documents. Council Member Ujdak made a motion, seconded by Council Member Varner, that Bill No. 32-01 be recommended favorably to Council. The motion passed. Community and Economic Development Committee April 23, 2001 Page 4 Ann Kolata then reviewed Bill No. 33-01 which would appropriate $ 3,405,000 plus interest earned within Fund#212 for the purpose of redevelopment of the Studebaker-Oliver Project Area. The funds are § 108 Loan funds for the Studebaker-Oliver Redevelopment project and are a companion to the BEDI,EDI and Neighborhood Initiative dollars. Dr. Varner made a motion, seconded by Council Member Ujdak that Bill No. 32-01 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a presentation on Bill No. 34-01 which would appropriate$ 800,000 plus interest earned, Bill No. 35-01 which would appropriate $ 249,450 plus interest earned, and Bill No. 36-01 which would appropriate $ 1,496,700 with all three (3) bills having their funds from Fund#209 for the redevelopment of the Studebaker-Oliver Project area. Ann Kolata made the presentation. She noted that Congressman Roemer was instrumental in getting the economic initiative dollars and the neighborhood initiative dollars. Council Member Kirsits made a motion, seconded by Council Member Varner that Bill Nos. 34- 01,35-01 and 36-01 be recommended favorably to Council. The motion passed. Andy Laurent then reviewed Bill No. 37-01 which would appropriate $ 50,000 from the economic development state grant fund. The funding would assist in the lead based paint survey of the Omniplex facility located at 1408 Elwood Avenue and an initial Phase II environmental assessment of Area A properties south of Sample Avenue in the Studebaker/Oliver Redevelopment area. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Bill No. 37-01 be recommended favorably to Council. The motion passed. Dr. Varner noted that he asked the Council Attorney to contact Shawn Sullivan on his tax abatement request for 5181 Land Trust in light of ongoing concerns with the city providing tax abatements to a developer who may have outstanding obligations on a prior project involving public funds. The Council Attorney noted that she had left a message for the City Attorney and had had conversations with Mr. Sullivan. The project may be continued this evening to permit further discussions before formal action is taken on the confirmatory resolution. Council Member Kelly reminded the Committee Members that the committee would meet on Wednesday to discuss tax abatement policy potential revisions. There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 5:10 p.m. Respectfully submitted, Council Member Roland Kelly, Chairperson Community and Economic Development Committee KCF:kmf Attachments