11-25-13 Common Council Meeting Minutes

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REGULAR MEETING NOVEMBER 25,2013 F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community and Economic Development Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. ii SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of seven (7) years as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17. 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, said publication providing notice of the 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/Derek D. Dieter Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Jeff McGowan, Taxpayer Representative for Demby Enterprises, LLC, Kruggel, Lawton, 210 S. Michigan St., Ste. 200, South Bend, Indiana, quickly Demby Enterprises would request an abatement for$1.8 million dollars to rehabilitate and improve a cold storage warehouse facility that is leased to Plumrose USA a bacon and meat processor manufacturer. Demby Enterprises did have a substantial fire loss in November 2012 and as a result of the fire loss did have to pull a fire permit, but no permit has been pulled in regards to the$1.8 million dollar projected cost of the rehabilitation. I do have one report error or something that I would like to fix, is that something I give to you or just say now? Council Attorney Kathleen Cekanski-Farrand: I would fix it now. Mr. McGowan: Okay, on page 2 of the Tax Abatement Report its states that the petition intends to basically return the building to its use and the abatement request is for not just a return, but it is an improvement, one that utilizes hot air technology with significant water savings. Councilmember Oliver Davis: Sewer Mr. McGowan: Absolutely, that's right. I would also like to make a correction as far as the employment numbers. I don't know if it was clear in there, but under the employment impact the current Plumrose will retain the 23 existing full-time position with $890,000.00 of annual payroll and the addition of two (2) additional jobs which will add$67,000.00 to that payroll. They are seeking a seven (7) year tax abatement for this real property during the abatement 27