07-23-01 Council Meeting Minutes

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REGULAR MEETING JULY 23, 2001 4. The petitioner cites the enormous costs associated with this project, with construction costs of nearly $7.8 million and total project costs of over $10.8 million. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of ten 10 years. SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code 5 -3 -1 and Indiana Code 6-1.1-12.1-2.5, saidpublication providing notice ofthe public hearing before the Common Council on the proposed confirming of said declaration. 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 /Charlotte Pfeifer Member of the Common Council Councilmember Kelly reported that the Community and Economic Development Committee met on this bill and recommends this Resolution to the Council favorably. Councilmember King advised that based on the advice of Council Attorney Kathleen Cekanski- Farrand, he will be abstaining from voting on this bill. Councilmember King noted that he worked for thirty -three (33) years at Crowe Chizek, ending on March 31, 1999, eight (8) years as an employee and twenty -five (25) years as a partner. He noted that he currently receives retirement payments from Crowe Chizek and is permitted to participate in their medical insurance program although he pays the entire premium. In light of these circumstances, so there will be no hint of impropriety, he stated that he will be abstaining from voting on this bill. Further, Councilmember King advised that he does not have any ownership interest in and is not in anyway employed by Crowe Chizek at this time. Mr. Dean Uminski, 330 East Jefferson Boulevard, South Bend, Indiana, made the presentation for this Resolution. Mr. Uminski stated that Crowe, Chizek and Company is requesting this abatement on their current expansion project. He stated that Crowe Chizek will construct anew fifty thousand (50,000) square foot building adjacent to its current main building at 330 East Jefferson Boulevard in order to accommodate the need for more parking and room for future expansions to their downtown campus. He noted that through the efforts of the South Bend Economic Development Council and the State of Indiana they were able to purchase 3.59 acres of additional land comprising four (4) parcels in order that they could accommodate the expansion. The additional office space and land will accommodate the company's long term growth plans which include the addition of one hundred fifty (150) new jobs during Phase I over the next six (6) years. The total capital investment for this phase is approximately $10.8 million dollars. They will add one hundred fifty (150) new jobs with a total annual payroll of $10.8 million dollars. In addition, they are retaining three hundred eighty one (38 1) permanent full time and fifty -two (52) part-time jobs with an annual payroll of $28.2 million dollars. Mr. Uminski stated that Crowe Chizek has thirteen (13) offices nationwide and this is their corporate headquarters as well as home to their firm -wide Human Resources and Education and Development Department. A Public Hearing was held on the Resolution at this time. There was no one present wishing to speak in favor of this Resolution. The following individuals spoke in opposition to this Resolution. Mr. Glen McQueen, 701 West Sample Street, South Bend, Indiana, asked for the actual value of the tax abatement. He further asked what the lost tax dollars will be as a result of a ten (10) year abatement of taxes and whether the City has a business relationship with Crowe Chizek for any kind of work. Also, aside from Councilmember King whether there was any financial relationship