09-25-95 Community & Economic Development

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f - - Committee Report Community and Economic Development September 25, 1995 Page 2 The Committee then reviewed Resolution No. 95-73 which a personal property tax abatement request for Schafer Gear Works Inc. Mr. Mike Beitzinger reviewed the Community and Economic Development Memorandum dated September 12, 1995 which concluded that the petitioner meets the qualification for a five year'personal property tax abatement(copy attached). Mr. Stan Blenke noted that the $3, 000,000.00 expansion of their building and equipment approximately one year ago has gone quite well. The current tax abatement III request will allow t hem to purchase 3 pieces of equipment which are state-of-the-art. Their has gone from 55 employees to 85 employees. In response to a question raised by Council Member Kelly, it was noted that the equipment should last between 7 to 10 years however computer technology is always changing. In response to a question raised by Citizen Member Bill Eagan, Mr. Blenke noted that their operation is capital intensive and without tax abatement it would jeopardize their competitive nature. Mr. Eagan questioned whether it is good public policy. Council Member Kelly and Council Member Luecke noted that the development is good for the area that it provides employment and that a tax abatement provides incentives to develop in particular areas. Council Member Kelly further noted that the overall tax abatement impact to the tax rate is less 1% being at.6%. Council President Ladew ski noted that he was at the grand opening of the expansion and find it to be a fine facility and very well run. Council Member Puzzello noted that recently an article appeared in the newspaper which noted the positive effects of tax abatement programs. Following discussion, Council Member Zakrzewski made a motion, seconded by Council Member Washington that Resolution No. 95-73 be recommended favorably to Council.The motion passed. There being no further business to come before the Committee the meeting was adjourned at 3:55 P.M. Respectfully submitted, Council Member Roland Kelly, Chairperson Community and Economic Development Attachments •