03-14-83 Human Resources & Economic Development

Home Browse Search

tdommiiirr 3arpnrt On file summon GIound! Df hit (Ong id ftuidII Neat HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The March 14, 1983 meeting of the Human Resources and Economic Development Committee was called to order at 4 : 30 p.m. in the Council informal meeting room by its Chairman, Councilman Robert Taylor. Persons in attendance included Councilman McGann, Voorde, Taylor, Beck, Harris, Szymkowiak, Zielinski, and Crone, Jon Hunt, Ken Fedder, Dick Maginot, Mr. Kanzieseski, and Kathleen Cekanski-Farrand, and Pat McMahon. Councilman Taylor noted that the purpose of the meeting was to review Bill Nos. 18-83 and 19-83. • Mr. Fedder briefly explained 18-83 which would authorize the assignment of the interests of Weltek, Inc. under the $550 , 000 Economic Development Revenue Bond to Oswald Development and' Investment Company. . He stated that since Weltek went into default it was being taken over by Oswald Development. There was no formal action taken by the Committee. Mr. Hunt then explained Bill No. 19-83 which would appropriate $500, 000 from the Community Development Block Grant Fund to supplement the Economic Development Capital Fund for short term construction loans. The loan would be for a period of 9 to 12 months and would save the company, South Bend Screw, owned by Kawneer, Inc. approximately $10, 000 in interest. The interim construction loan agreement would be entered into between the Board of Public. Works and the South Bend Development Corporation. It would be for an interest rate of approximately one-half the prime rate. Mr. Hunt noted that they have already agreed to make the loan. Councilman Voorde questioned what criteria or guidelines would be used when several entitities are computing for the same amount of money. Mr. Hunt speculated that the number of jobs would be a factor, and that the final decision would be made by the SBDC. Councilman Crone questioned the interest rate and the composition of the loan committee. She was informed that the rate would probably fluctuate and that the loan committee was made up of nine members some of whom included Pat McMahon, Dick Rosenthal, Rick Morgan, and Fred Crowe. The agreement would be before the Board of Public Works March 21st. Following further discussion Councilman Beck made a motion seconded by Councilman Harris that Bill No. 19-83 be recommended favorbly to Council. The motion passed. The Council Attorney requested that a copy of the Agreement be sent to her and Councilman Taylor for reference purposes. Pat McMahon then addressed the Council regarding Scandanivan Trading Company which would like to establish one of its first U.S. companies in South Bend. The company was established in 1937 in Stockholm. A . brochure of the company was passed around the Committee. Mr. McMahon : explained that the company is in the business of purchasing used tele- communications products and retrieves precious metals. These metals are then sorted and shipped by rail. The company would like to locate on Linden Avenue near the overhead door operation. It is a dry process .and would not involve a smelter. Approximately 30 jobs would be created. Mr. McMahon stated that the problem involves complying with the City' s scrap and junk yard ordinance which requires such businesses to be at least 1,000 feet from a residential area. The proposed site is approximately 6-700 feet away from an undeveloped residential area. He also noted that the majority of the business would be inside. The owner of the property, Mr. Kanzieseski noted -rwwi rwcu• . rvwuwiww co.