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HomeMy WebLinkAbout04-09-01 Community & Economic Development QCotttmttt *art: Community an mitt ( atomic atiationitilt Q1 ommttfec The April 9,2001 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; Economic Development Specialist Cassandra Moran, Mike Beitzinger, Larry Magliozzi, Building Commissioner Don Fozo, Mike Urbanski, Marco Mariani, Public Works Director Gary Gilot, Shawn Sullivan, Richard Pfeil, Paul Witek, Rick Deahl,Terry Bland of the OUth * Ub trthUUe, and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly noted that the first item on the agenda was to review Bill No. 01-24 which is a ten (10) year real property tax abatement request for the property located at 209 East Colfax Avenue for Indiana Land Trust 5181. Cassandra Moran, an Economic Development Specialist reviewed her report dated April 4, 2001 (copy attached). She noted that the petitioner proposes to rehabilitate the building located at 209 East Colfax which has been vacant for approximately one (1) year. Improvements would be approximately $ 100,000 and would address roof repairs, engineering assessment of the corner of the building, electrical re-fining, mechanical work, plumbing work and acquisition of brewing equipment. The report concluded that the petitioner meets the qualifications for a ten(10) year real property tax abatement under § 2-80.1 addressing "Mixed Use Developments in the East Bank Development Area". Mr. Shawn Sullivan noted that the building condition worsened during the winter months and that significant repairs would be made as a result. Council Member King inquired about the proposed micro-brewery operation. Mr. Sullivan stated that there would be a bar as well as off-site sales in a food court type setting. He stated that since it is zoned A-3 that such beverages could be sold and consumed on-site. Don Fozo, Building Commissioner, stated that under the zoning classification of A-3 such an operation would qualify as a special exception. Council Member Kirsits inquired what would make this operation successful since it was not successful across the street. Mr. Sullivan stated that different individuals are involved, however the same brewery equipment would be used. He noted that the micro-brewery would take 2,000 square feet of the 24,000 square foot building. Council Member Ujdak noted that he would be recusing himself from this matter in light of a potential conflict of interest as directed by the Council Attorney. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that Bill No. 01-24 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 01-25 which is a five (5) year personal property tax abatement request for the property located at 301 E. Sample Street requested by Mossberg & Company, Inc. } Community and Economic Development Committee April 9, 2001 Page 2 Cassandra Moran reviewed her report dated April 4, 2001 (copy attached). She noted that the petitioner is engaged in the lithography and printing industry. The company plans to purchase one (1) new offset printing press and two(2) new bindery machines for an estimated cost of $ 3,150,000.00. She concluded 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". Rick Deahl made the presentation for the petitioner. He noted that the new equipment would keep the company competitive in its field. Dr. Varner noted that the assessed value would go from $32,000 to $420,000 with the abatement, and therefore he would be supporting it. Council Member Ujdak made a motion, seconded by Dr. Varner that Bill No. 01-25 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 01-27 which is a Five (5) year residential real property tax abatement request for the properties located at 138, 701 and 705 Broadway requested by the City of South Bend Board of Public Works and American Home Dreams, Inc. Cassandra Moran reviewed her report dated April 4, 2001 (copy attached). American Home Dreams, Inc. Proposes to construct three (3) homes of 1,800 square feet each with each having a sales price of$ 110,500.00. The homes will be available to low and moderate income first time home buyers. She noted that the project meets the qualifications for a five(5) year residential real property tax abatement under§ 2-77.1 of the South Bend Municipal Code. Marco Mariani of the Community and Economic Development Department noted that the development will take place on lots 48, 49, and 50 all of which have gone through the replat process. Rick Milton spoke on behalf of American Homes Dreams and in response to a question from Council Member White noted that there are a total of fifty(50) homes constructed. Council President Pfeifer commended the project. The Council Attorney noted that she worked closely with Jon Hunt on this project to make sure that the replat process was complete before action would be taken on the tax abatement requests. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that Bill No. 01-27 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 01-28 which is a three(3) year real property tax abatement request for the property located at 3801 Voorde Drive requested by Koontz-Wagner Electric Company, Inc. Cassandra Moran reviewed her report dated April 4, 2001 (copy attached). She noted that the petitioner proposes to expand the existing business to include 15,100 square foot addition to the building. The addition is necessary in light of the strong growth for package control rooms manufactured by the Custom Controls Division. Cost of construction is projected to be $700,00.00. She further noted that the petitioner would like the Council to consider a six(6) year abatement under the special exception provisions of the local ordinance. Community and Economic Development Committee April 9, 2001 Page 3 Mr. Richard Pfeil, CEO of Koontz-Wagner Electric Company, Inc. then addressed the Committee. He noted that the packaged control rooms are the "brains" for the gas-fired turbine electric generating plants being used throughout the country to ease the electricity shortage. Ten (10) employees would be added with an annual payroll increase of$ 235,000.00. As of mid-2000, the actual employment and payroll more than doubled the 1999 estimates. He further noted that the company has been in the city for over 75 years. This expansion would be phase I of a two (2) phase project. Council Member Kelly spoke in favor of the project being treated for special exception consideration. The Council Attorney inquired whether a substitute resolution had been prepared since she had had discussions with Mr. Beitzinger on this matter during the prior week. Mr. Beitzinger stated that he did however in light of the Clerk's copier not working, he only had the original. The original was then passed among the Committee members. Council Member Kelly read the section highlighting the reasons for special exception consideration. The Council Attorney noted that the title and the body of the resolution would reflect the six(6) year period. Dr. Varner noted that the project brings good jobs to the area and he believes the special exception should be granted. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that substitute Bill No. 01-28 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 4:37 p.m. Respectfully submitted, Council Member Roland Kelly, Chairperson Community and Economic Development Committee KCF:kmf Attachments