07-23-01 Council Meeting Minutes

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REGULAR MEETING JULY 23, 2001 between Crowe Chizek and members of the Council. Further, Mr. McQueen asked if anyone on the Council received any sort of campaign contributions from partners, employees, agents or spouses of Crowe Chizek and whether or not anyone receives any kind of retirement benefits from Crowe Chizek other than Councilmember King. Mr. McQueen stated that the City is offering a very large tax abatement to a large accounting corporation at the same time in which the City refuses to give the police officers a pay raise that would put them in the top thirty (30) in the country with the next contract. Council President Pfeifer stated that no one would have a problem looking into these questions, but answers to some of the questions would take time to check and therefore could not be answered at this time. Mr. McQueen stated that he will put these questions in writing for members of the Council to respond. Council Attorney Kathleen Cekanski- Farrand stated that the Resolution being considered this evening is part one (1) of a two (2) part process. The Declaratory Resolution is acted upon this evening and the Confirmatory Resolution, which triggers a remonstrance period under applicable state law, is in two (2) weeks. Councilmember Kelly stated that the total tax bill over the ten (10) year period is $4,148.243.00. The total taxes abated is $2,053,380.00 and the total taxes paid during the abatement is $2,094,863.00. Council Attorney Cekanski- Farrand noted that this information is contained in the public tax abatement documents and is available. Mr. McQueen reiterated that he will put his questions in writing. He asked how the Council will respond. Council Attorney Cekanski - Farrand advised him to give those questions to the City Clerk who will see that members of the Council receive copies. She noted that any items that would have to be referred to the City administration would take place tomorrow morning. She noted that the Council should be able to respond in a two (2) week period or sooner. Ms. Joyce Boaler, 1616 Hillsdale Road, South Bend, Indiana, stated that she is mystified that any property on East Jefferson Boulevard is being considered as an economic revitalization area and asked how it can be considered for revitalization. She stated that she is equally mystified as to why a company that has thirteen (13) offices nationwide is in need of tax abatement as it appears that they are a thriving business. Mr. Jim Wolff, 701 West Sample Street, South Bend, Indiana, inquired if Crowe Chizek threatened to leave the City if they did not get this tax abatement. Councilmember Kelly advised that there was no threat to leave the City. Crowe Chizek is making a major investment in the downtown area and obviously employing new people that will bring money into the community. Mr. Wolff asked if the representative from Crowe Chizek would know if there was a threat to leave the City. There was no one else present wishing to speak in opposition to this Resolution. In rebuttal, Mr. Uminski stated that Crowe Chizek would be happy to work with the Council to provide written responses to the questions asked this evening and as noted the abatement savings and taxes to be paid by Crowe Chizek are a part of the public document that is available. Mr. Uminski noted that the area in question has already been identified as a tax abatement impact area so they only asked for what they thought they were eligible for and what was available for any company that wanted to do any significant expansion in the downtown area. Mr. Uminski noted that the State of Indiana has also supported this project with infrastructure assistance and training assistance so that they may successfully complete this expansion project. He noted that no idle threats were made by Crowe Chizek that they would leave South Bend if they did not get this tax abatement. Councilmember Kelly made a motion to adopt this Resolution. Councilmember Varner seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes with Councilmember King abstaining.