05-14-01 Council Meeting Minutes

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REGULAR MEETING MAY 14, 2001 Councilmember Kelly reported that the Community and Economic Development Committee met on this bill and recommends this Resolution to the Council favorably. Mr. Gunther W. Jordan, Owner and President, Exacto, Inc., 1137 South Lafayette Boulevard, South Bend, Indiana, made the presentation for this Resolution. Mr. Jordan asked the Council for a clarification regarding the language of the Resolution submitted at this time for consideration. He noted that he received the original tax abatement on July 12, 1999. That abatement was for a period of two (2) years and meant that any equipment they purchase in that time is eligible for a five (5) year personal property tax abatement. He noted that the Resolution submitted this evening reconfirms the adoption of that tax abatement but does not indicate the one (1) year extension which he is requesting. Council Attorney Kathleen Cekanski - Farrand noted that the last "Whereas" clause of the Resolution submitted at this time indicates an additional period of time but does not list the length of time for the extension. Therefore, Attorney Cekanski - Farrand offered the following amendments: Section III will become Section IV. New Section III to be as follows: The Petitioner is hereby granted one (1) additional year for Personal Property abatement originally adopted on July 12, 1999. Councilmember Aranowski made a motion to accept the amendments as suggested by Attorney Cekanski - Farrand. Councilmember White seconded the motion which carried by a voice vote of nine (9) ayes. Mr. Jordan informed the Council that the first half of last year was strong for his company and that is why they built the ten thousand three hundred (10,300) square foot addition to their facility which is now completed. This was a three hundred fifty thousand ($350,000.00) dollar investment with the total area now being twenty -six thousand three hundred (26,300) square feet. Mr. Jordan noted that the new building enabled them to look for additional new business for the Spring of 2001. Mr. Jordan outlined the progress of his business up until April of this year. He noted that they were fortunate to secure a new project that will be starting soon that will completely turn their company around and that is why they now need the new equipment. He noted that the time limit on the abatement approved in 1999 is running out and he therefore requested an extension of one (1) year. Mr. Jordan noted that the planned equipment purchases will amount to between six hundred fifty thousand ($650,000.00) dollars and seven hundred thousand ($700,000.00) dollars. At the present time they employ fifty -six (56) employees, six (6) of which are Urban Enterprise zone residents and thirty -three (33) minority employees. Out of the fifty -six (56) employees, forty -four (44) are males and twelve (12) are females. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Coleman made a motion to adopt this Resolution, as amended. Councilmember Ujdak seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. RESOLUTION NO. 3011 -01 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND TO ESTABLISH THE EFFECTIVE DATE OF THE VACATION OF PUBLIC REAL PROPERTY PURSUANT TO ORDINANCE #9202- 01