04-26-04 Council Meeting Minutes

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REGULAR MEETING APRIL 26, 2004 SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s /Karen L. White Member of the Common Council Councilmember Kelly made a motion to entertain the substitute version of this Resolution as on file with the Clerk. Councilmember Puzzello seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember Kelly, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to full council with a favorable recommendation. Mr. Phil Faccenda, Attorney Barnes & Thornburg Law Firm, 100 N. Michigan Street, South Bend, Indiana, made the presentation for this bill on behalf of the owner Mr. Dennis Bamber, owner of The Woodwind & The Brasswind, 5053 Ameritech Drive, South Bend, Indiana. Mr. Faccenda advised that this resolution will allow for a new distribution center at 5053 Ameritech Drive, South Bend, Indiana. Mr. Faccenda further advised that the petitioner, Bamber, LLC plans to construct a 150,000 to 200,000 square foot distribution center on 16 acres of land in the U.S. 31 Industrial Park. The distribution center building will be constructed to meet the demands of the growing retail mail order and internet business of Dennis Bamber, Inc. d/b /a The Woodwind & The Brasswind. The construction cost is estimated to be between $4,500,000 and $5,500,000 and an additional estimated cost of approximately $560,000 for the purchase price of the land to be acquired. The redevelopment or rehabilitation project itself will create 25 to 30 new, permanent jobs within the first year, representing a new annual payroll of $612,000 to $735,000 and will maintain 213 existing permanent full time and 15 existing permanent part-time jobs with an annual payroll of $7,100,000. The projected average annual salaries for each new position created is estimated to be $24,500. A Public Hearing was held on the Resolution at this time. There was no one present wishing to speak to the Council in favor of this bill. The following individual spoke in opposition of this bill. Mr. Kenneth Marks, President I.A.F.F. #362 South Bend Fire, 1122 South Main Street, P.O. Box 3581, South Bend, Indiana, spoke in opposition to this resolution. Mr. Marks stated that a 9 year tax abatement is too long. He stated that with the increase in property taxes and the shift of burden from commercial property to residential homeowners that tax abatements should not be given out as frequently. In rebuttal, Mr. Faccenda stated that Mr. Bamber, d/b /a The Woodwind & The Brasswind has been a good taxpayer to the City of South Bend and St. Joseph County. The new distribution center is critical to Woodwind's continued success as it will accommodate growth and allow Woodwind to meet its customer demand for same day shipping which is becoming prevalent in the direct marketing industry. Councilmember Varner stated that in the first year of a tax abatement only about eleven percent (11 %) of the taxes are abated. He further stated that in approximately four (4) years that the tax payer is paying approximately fifty percent (50 %) of the tax. Councilmember Varner stated that the land is currently vacant and underutilized and that this project will fully and appropriately utilize the property and will create job opportunities and increase the City tax base. 11