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HomeMy WebLinkAbout07-28-08 Community & Economic Development CommitteeCOMMUNITY 8~ ECONOMIC DEVELOPMENT COMMITTEE JULY 28, 200.8 The July 28, 2008 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by its Chairperson, Derek D. Dieter at 3:50 p.m. in the Council's Informal Meeting Room. Committee Members present: Derek D. Dieter, Chairperson; Ann Puzzello, Karen L. White, Catherine Andres, Citizen Member, Mark Smith, Citizen Member (Henry Davis, Jr. -late) Persons in attendance included: Kathleen Cekanski-Farrand, Council Attorney; John Voorde, City Clerk BILL NO.08-62 TAX ABATEMENT - 225 GARST Robert Mathia, Economic Development, 12th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, presented the report from the Economic Development Department. He stated that this petition for tax abatement is a four (4) year real property tax abatement for James & Sandra McCune. He stated that the McCune's are planning to build a 3,600 square foot addition to an existing building to house the McCune's masonry building and provide more rental space for tenants that share the building. He noted that the project will create 6.5 jobs and retain 12. He noted that the project is estimated at $203,500. Councilmember Karen L. White made a motion for favorable recommendation to full Council. Councilmember Puzzello seconded the motion which carried. BILL NO. 08-63 TAX ABATEMENT - 919 8~ 923 NOTRE DAME AVENUE Robert Mathia, Economic Development, 12th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, presented the report from the Economic Development Department. Mr. Mathia noted that the abatement was for a five (5) year real property tax abatement. He stated that the Kidder's plan to build a 2,800 square foot, single-family home. The cost of the home is approximately $415,000. Council President Timothy Rouse stated that he is not in favor of abatement in Tax Increment Financing Districts. Councilmember Puzzello made a motion to send this bill to the full Council with a favorable recommendation. Councilmember White seconded the motion which carried. BILL NOS. 08-64 8~ 08-65 TAX ABATEMENT 4201 LINDEN (REAL AND PERSONAL PROPERTY) Councilmember Derek Dieter, Chairperson, Community & Economic Development stated for the purpose of public hearing he entertained a motion to combine Bill Nos. 08-64 & 08-65. Councilmember Puzzello made a motion to combine. Councilmember Henry Davis, Jr. seconded the motion which carried. Robert Mathia, Economic Development, 12th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, presented the report from the Economic Development Department. Mr. Mathia advised that additional points adds one more year to the six (6) year already awarded for a total of seven (7) years. He stated that the petitioners are proposing to construct and equip a 90,000 square foot building on an undeveloped portion of a 21 acre site that they already own. The project will enable GTA to more than double its current manufacturing capacity, allowing the company to bid on large, multi-year contracts with the U.S. Department of Defense and also have the capacity for non-military contracts. Richard Deahl, Attorney at Law, Barnes & Thornburg, representing Foxtrot Realty Holding and GTA stated that they currently have 31 employees of which 29 are minority. This project is anticipated to employee nine (9) to sixteen (16) employees. Councilmember Karen White asked how many African American Employees? Mr. Deahl responded none. Councilmember White asked why there were not any African-American employees. Mr. Deahl responded that hiring is by word of mouth. Vacancies are paid $11.90 per hour and up to $15.00 with bonuses. The Department of Defense has granted two five-year contracts for the U.S. Army. GTA Containers manufactures collapsible pillow tanks for fuel or water storage. The containers range in size from 3,000 to 210,000 gallons. He stated that with either one of the contracts they could have handled production in their current facility, but both contracts together generate the need for additional space. Mr. Deahl noted that this business is very competitive and on each order they are required to submit a new bid. GTA submitted pricing on this contract last October and it is a fixed price contract. Since last October there have been a lot of increases in the cost of their raw materials. He stated that they are not able to recover those increases in cost, so they have to look at a variety of different cost savings and productivity improvements during the five years, so the abatement is critical. Councilmember Puzzello made a motion for no recommendation to full Council. Councilmember Henry Davis seconded the motion which carried. BILL N0.08-66 -TAX ABATEMENT 1840 N. COMMERCE DRIVE ISTANZ FOOD Robert Mathia, Economic Development, 12th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, presented the report from the Economic Development Department. Mr. Mathia advised that Stanz Foodservice is a full-line, food service distribution business. He noted that Stanz is asking for a five (5) year personal property tax abatement. Mr. Richard Deahl, Attorney, Barnes & Thornburg, 100 N. Michigan Street, South Bend, Indiana, stated that he is speaking on behalf of Mr. Mark Harmon, President, Stanz Foodservice. He advised that Stanz uses its warehouse and distribution facility to store dry, refrigerated, and frozen goods to facilitate the transfer and delivery of such goods to customers throughout Northern Indiana and Southern Michigan. The proposed project consists of the acquisition and installation of new logistical distribution and information technology equipment. This equipment will complete Stanz's investment in real estate improvements and its commitment to growing its distribution headquarters and business in South Bend. He stated that the entire cost for the proposed project is estimated between $300,000 to $700,000 for logistical distribution equipment and between $50,000 and $150,000 for information technology equipment. He noted that it is estimated that the project, by itself, will no create additional full-time and part-time permanent jobs within the first year of the project, but will enable Stanz to maintain 162 existing permanent full-time jobs and 9 existing permanent part-time jobs with an annual payroll of $7,251,439, including existing permanent full-time minority employment of 12 positions. Councilmember White made a motion to recommend this bill to the full Council with a favorable recommendation. Citizen Member Mark Smith seconded the motion, which carried. There being no further business to come before the committee, Councilmember Derek D. Dieter, Chairperson, adjourned the meeting at 4:30 p.m. Res ectfully Submitt d, . 1 c Derek D. Dieter, Chairperson Community & Economic Development Committee