08-23-93 Human Resources & Economic Development

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r zeiglJoaz 4 111 De mom x eo o ttZQte i 212.a ce,41. 4410 aeve 'J's vomiter iittifttet cc • The August 23, 1993 meeting of the Human Resources and Economic Development Committee was called to order by its Chairperson, Councilmember Roland Kelly at 4:03 p.m.in council informal meeting room. Persons in attendance included Councilmembers: Zakrewski, Coleman, Kelly, Duda, Puzzello, Luecke, Slavinskas, Wahington, and Ladewski, Mike Beitzinger, Gunther Gordon, President of Exacto, Aladine DeRose, Terry Bland, and Kathleen Cekanski- Farrand. Councilmember Kelly noted that the purpose of the meeting was to review Resolution No. 93-63 which is a personal property tax abatement request for Exacto Inc. located at 1137 South Lafayette Boulevard. Mr. Beitzinger than reviewed the report from the department of Economic Development finding that it did comply with the five (5) year personal property requirements for tax abatement. Mr. Gordon, President of Exacto noted that without the equipment proposed that they would lose the contract, and with it they would be able to maintain and enhance their current customer base. He noted that in the past five (5) to ten (10) years they have added 1.2 million dollars of equipment to the facility. He stated that the proposed new equipment purchase would last between five (5) to ten (10) years. He also noted that he had heart surgery last year and his company experienced financial difficulties in the areas of overtime and health related costs. With the assistance of MTS (Manufacturing Technology Services) of the state of Indiana and their report which resulted in action plan, their company is now turning around. Councilmember Puzzello noted that the City of South Bend through her committee is currently reviewing the City Budgets for 1994 and could empathies with Mr.Gordon with regard to overtime and health care related expenses. Mr. Gordon noted that he bought the company in 1989 and owns the assets but leases the building itself. He further noted that he employs nine(9) individuals from the Enterprise Zone and created five (5)new jobs and that currently his company is working three(3)eight (8)hour shifts. Council President Luecke complimented Mr.Gordon on his fine operation and his excellent track record of employing individuals from the Enterprise Zone. Following further discussion Councilmember Duda made a motion seconded by Council Member Slavinskas that Resolution No. 93-63 be recommended favorably to Council. The motion passed. Council Member Kelly than noted that Resolution No. 93-64 which is a ten (10) year real property tax abatement request for Turnmaster Corp. doing business at South Bend Lathe Corp. located at 400 West Sample will be continued at the request of the petitioner. This resolution will be rescheduled to be heard at the meeting of September 13, 1993. The Council Attorney then noted that Aladine DeRose of the City Attorney's office contacted her earlier today to request a suspension of the rules so that substitute Bill No.