09-13-04 Community & Economic Development

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The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee Council Member Kelly then called for a presentation on Bill No. 04-94 referenced earlier; Bill No. 04-95 which is a five (5) year real property tax abatement request of Steel Warehouse Company, Inc., A&F Realty,Nathan Lerman Trust, Allan and Frances Lerman, JH Jones, LLC for the property located at 2722 West Tucker Drive,; and Bill No. 04-96 which is a five(5)year personal property tax abatement request for Steel Warehouse Company,Inc. for the property located at 1400 Riverside Drive. Mr. Beitzinger stated that he had combined all three (3) Bills into one (1) report dated August 31, 2004 (copy attached) which he then reviewed. The three (3) abatement requests include one for the building addition at the Tucker Drive address for an investment of$638,000; one for new manufacturing equipment to be installed at that addresses for an investment of approximately$ 1.3 million; and the third request for the new equipment to be installed at the Riverside Drive address for an additional investment of$935,000. He noted that the petitioner has requested several prior abatements from the city and is in compliance with all city regulations. Steel Warehouse is a steel service center which specializes in flat rolled,low carbon steel and develops many steel products. Nine (9) new permanent jobs will be created and 439 full-time jobs will be retained which represents an annual payroll of over $ 19.3 million. Mr. Beitzinger stated that the petitioner has signed memorandum of agreements on each abatement request. The report concluded that the requests comply with the governing provisions of the South Bend Municipal Code section 2-82.1 addressing "industrial development in urban enterprise zone and redevelopment areas" and section 2-84.2 addressing "tangible personal property tax abatement. Mr. Gerald F. Lerman thanked the Council for their past support and urged the Committee to recommend favorably on the three(3)tax abatement requests. Dr. Varner noted that Steel Warehouse is a local success story, and that he is proud to assist a company which continues to grow and prosper. Council Member Kuspa spoke in favor of the three(3)abatement requests and stated that the city should do all that it can to help this company, especially in light of the growing competition which it has. Council Member Kuspa then made a motion, seconded by Council Member Coleman that Bill Nos. 04-94, 04-95 and 04-96 be recommended favorably to Council. The motion passed. Council Member Kelly then called for a presentation on Bill No. 04-98 which is a five (5) year residential real property tax abatement request of the Westside Democratic Club for the benefit of Habitat for Humanity of St. Joseph County for the property located at 744 Carlisle Street. Mr. Beitzinger then reviewed his report dated September 7, 2004 (copy attached). The Westside Democratic and Civic Club plans to sell two (2) lots to Habitat for Humanity, who in Community and Economic Development Committee Meeting of September 13,2004 Page 2