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HomeMy WebLinkAbout03-26-01 Community & Economic Development QCommitt*e (lCommuutti anti Commit Ihrtitioputent Contittittize The March 26, 2001 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Cew cil Member Roland Kelly at 5:40 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members: Aranowski, King, Kelly, Pfeifer, White, Varner, Ujdak, Coleman and Kirsits; Ken Fedder, Roberta Baxter, Dave Bitter, Rhonda Brown, Economic Development Specialist Cassandra Moran, Mike Beitzinger, Terry Gilbert, Terry Bland of the frpoutb 3:S tub Eribunt,and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly noted that the first item on the agenda was to review Bill No. 25-01 which would amend Chapter 2 of the South Bend Municipal Code by adding construction-related criteria and guidelines for projects benefitting by tax abatement. Council Member Kelly called upon Council Member King,one of the sponsors of the Bill for an update. Council Member King stated that Bill No. 25-01 was tiled to begin the process of discussing the overall goals and policies addressing tax abatement in light of a changing economic climate. The timing of the proposed ordinance was to compliment the measure pending before the St. Joseph County Council. He noted that in light of the County Council continuing their proposal at their last monthly meeting, that many have begun to focus on the issue of construction wages, as opposed to the overall focus of the Bill. In light of the growing concern that the overall goals and policies may be lost,Council Member King recommended that the Bill be withdrawn and be re-submitted at a later time. Council Member Kelly noted that he had been working with the City. Administration on other provisions of the overall tax abatement policies, and that amendments would be forthcoming in the weeks ahead for Council consideration. Council Member Aranowski, one of the sponsor's of Bill No. 25-01, stated that he echoes the comments made by Council Member King. Council Member Ujdak, one of the sponsor's of Bill No. 25-01, then made a motion, seconded by Council Member Ujdak that Bill No. 25-01 be struck from the agenda. The motion passed. Council Member Kelly stated that the next item on the agenda was to review Bill No. 1-16 which is a proposed reconfirming resolution for the property located at 3520 Westmoor Street for Honeywell,Inc., formerly known as Aircraft Landing Systems,AlliedSignal, Inc. Cassandra Moran, an Economic Development Specialist reviewed her report dated March 7, 2001 (copy attached). She noted that the resolution is asking for a one-year extension of their previously approved five (5) year personal property tax abatement which was approved by the Council on April 12, 1999. Ms. Moran noted that the Petitioner is in the business of designing, testing , manufacturing and servicing of aircraft landing systems. The original project called for the purchase and installation of new manufacturing equipment and refurbishing of existing equipment in order to support industry growth. The total project cost is projected to be $ 45.1 million and is needed in order to meet the increased demand resulting from the growth of the commercial airline industry. Twenty (20) new jobs are to be created, while maintaining 940 existing permanent full- time jobs for an annual payroll of$ 59,662,368.00. Community and Economic Development Committee March 26, 2001 Page 2 Dave Bitter,Rhonda Brown and Roberta Baxter represented the Petitioner. They noted that in light of supplier delays that an extension is necessary. The original project has grown by over one million dollars. Council Member Varner stated that this is the type of business which tax abatement should be used for and inquired if there is anything else which the city can do for the petitioner. Council Member Kelly stated that recently Rhonda Brown took him on a tour of the Petitioner's facility and he was very impressed with their operation. Following discussion, Council Member Varner made a motion, seconded by Council Member Kirsits that Bill No. 01-16 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 01-17 which is a five (5) year residential real o abatement request of Terry Gilbert for the property located at 4126 South Fellows Street. Cassandra Moran reviewed her report dated March 21, 2001 which noted that the petitioner proposes to develop one (1) ranch style home of 1,450 square feet for a projected cost of $ 80,000, 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. Mr. Gilbert stated that he proposes to construct the home in question and then put in up for sale. Following discussion, Council Member Varner made a motion, seconded by Council Member Ujdak that Bill No. 01-17 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 01-18 which would give preliminary approval for the issuance of bonds for the purpose of providing financing of certain economic development facilities to be owned by Imagineering properties, LLC and then leased and operated by Imagineering Enterprises, Inc. Mr.Ken Fedder,the attorney for the Petitioner,made the presentation. He stated that the petitioner has been in business since 1959. They are a world-class operation who has outgrown its current location and plan to relocate to 4521 Nimtz Parkway. He noted that the South Bend Economic Development Commission approved a similar resolution on March 16th. We are currently at the inducement stage and that there would be no obligation or liability to the City. Approving the Resolution would result in a new building, new jobs and new payroll. Council Member Aranowski noted that the petitioner is moving to the 1st District. He stated that they are a class outfit and welcomes them to his District. Council Member Kelly noted that the petitioner has had a long-term relationship with our community and spoke in favor of the measure. Following discussion, Council Member Ujdak made a motion, seconded by Council Member Varner that Bill No. 01-18 be recommended favorably to Council. The motion passed. Community and Economic Development Committee March 26, 2001 Page 3 There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 5:55 p.m. Respectfully submitted, Council Member Roland Kelly, Chairperson Community and Economic Development Committee KCF:kmf Attachments