HomeMy WebLinkAbout04-14-14 Community InvestmentCOMMUNITY INVESTMENT April 14, 2014 3:30 P.M.
Committee Members Present:
Gavin Ferlic, Henry Davis, Valerie Schey, Derek Dieter
Other Council Present:
Tim Scott, Dr. Fred Ferlic, Dr. David Varner, Karen White,
Oliver Davis
Others Present:
Kathy Hahn, Katherine Roos, Cecil Eastman, Richard Kennedy,
Chris Huff, Chris Fielding, Joe Shabazz, Scott Ford, Jitin Kain,
Kathy Cekanski - Farrand, Dane Vida, Randy Rompala
Agenda:
Bill No. 14 -23 Confirming Abatement - 5024 Western Ave.
Briarcliff Healthcare
Bill No. 14 -34 Designating Abatement (Personal)
2115 W. Western Ave. - IRNM Inc.
Bill No. 14 -35 Designating Abatement (Personal)
2115 W. Western Ave. —Vida Realty, LLC.
Bill No. 14 -36 Designating Abatement (Personal)
1902 W. Sample St.
Lippert Components Manufacturing Inc.
Bill No. 14 -32 Approve Bond — Noble Americas South Bend LLC.
Update — on "Smart Streets" CID Director /Scott Ford
Committee Chair opened the Community Investment Committee with all members present except
Henry Davis. Listed on the agenda were five bills and one update from Scott Ford on the City's "Smart
Streets" initiative.
The first bill for review was 14 -23. This was a petition for a five year real property tax abatement for
Briarcliff Healthcare at 5024 West Western Ave.
Richard Kennedy, the petitioner, made a brief presentation. He described the rehab project of a former
nursing home into a combination rehab /extended care facility. He said 80 jobs would be created with
an estimate payroll of nearly $2.5 million. Mr. Kennedy said the project would coat over $3.2 million.
Councilmembers Karen White, Dr. Ferlic and Oliver Davis asked questions regarding the nature of the
jobs to be created and where qualified candidates would be found. Councilmember Valerie Schey asked
the petitioner if he had an affirmative action plan filed with the petition. Mr. Kennedy said he did not,
but would provide one. Valerie requested that the Community Investment Department require
affirmative action plan be filed with every tax abatement petition. During the public portion Chris Huff
asked if the estimated $3.2 million costs included property acquisition. Mr. Kennedy said approximate
$1 million purchase price of the land and building was separate from the $3.2 million bringing the total
investment to just under $4.5 million. Joe Shabazz urged the Council to follow -up on affirmative action
hiring results.
Finally on a motion from Derek Dieter, seconded by Valerie Schey and approved by all the bill got a
favorable recommendation.
The next two bills on the agenda, 14 -34 and 14 -35, were personal an" property tax abatement
petitions for IRBN Inc. at 2115 West Western Ave. Chris Fielding from!CI made the presentation for both
bills, to be considered together but voted separately. Chris said IRBN wzIs a wholesale food warehouse
and distribution company working primarily with food banks in the great lakes region. The five year
personal property request and the two year real property allowed by state law for vacant building start-
ups would protect 9 jobs and create five more with a total payroll of over $500,000. The operation was
relocating from Mishawaka. Dane Vida, President of IRBNWas present to answer any questions.
Responding to Valerie Schey, he said he would file an affirmative action plan.
The real property petition for two years of abatement was explained by Chris Fielding as one available
under state law to someone moving into a vacant building. He said both petitions had passed muster by
the Cl Staff.
Subsequently both bills were forwarded favorably on motions by Derek Dieter, seconded by Valerie
Schey and affirmed by all.
The final abatement petition, 14 -36, was for Lippert Components Manufacturing. Lippert was
consolidating operations from surrounding counties to locate and expand manufacturing in the vacant
TJ Max building at 1902 W. Sample. Lippert manufactures parts for the RV and trailer industries. Chris
said 180 jobs would be created this year with 200 additional projected over the next 10 years. Chris also
said an affirmative action plan would be filed.
Again on motions by Derek Dieter and Valerie Schey with unanimous support the bill was forwarded
favorably.
The next bill, 14 -32, asked for preliminary approval of bonds to be issued for the restart of the ethanol
plant, up to the amount of $25 million.
Attorney Randy Rompala, representing the petitioner said state law allowed these economic
development bonds to be tax exempt if the City would endorse them. The City would act as a conduit
for the bonds. No liability could be incurred of bonding capacity compromised for the City. Valerie
Schey was given additional assurance there would be, no liability following to the City of the bonds were
to default.
Derek Dieter and Valerie Schey made the appropriate motions to receive a favorable recommendation
supported by all.
The last agenda item was an update from the Director of Cl Department, Scott Ford regarding the
"Smart Streets" initiative. Scott began using a video presentation; but in the interest of time was but
short to be rescheduled.
Gavin Ferlic adjourned at 4:04 P.M.
Respectfully Submitted,
L/
Gavin Ferlic, Chairperson
Community Investment