07-27-09 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING JULY 27, 2009 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 Rouse, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing this afternoon and voted to send it to the full Council with no recommendation. Mr. John Phair, President, Holladay Properties, and Mr. Paul Phair, Project Manager, Holladay Properties, 227 South Main Street, Suite 300, South Bend, Indiana, made the presentation for this bill, on behalf of Waggoner Farm Development, L.P./Ontario Partners, L.P. Mr. John Phair advised that Ontario Partners intends to construct a $5,000,000 facility known as the “Ontario Building” in the Portage Prairie Development Area. He stated that it is a speculative, 157,500 square-foot, light industrial building that will house multiple tenants performing a variety of business functions, such as a medical supply company, data storage facility, food/general distribution facilities, printing companies, or light assembly. He noted that the building will be constructed using pre-cast concrete panels. It will utilize green building techniques such as florescent lighting in the warehouse. The building will be the second one in the Portage Prairie Development Area, which is expected to produce a total of over $350 million in private investment. The first building, also built on a speculative basis, is the “Huron Building” which currently has over 70 people working in it. He stated that having a building ready to go is critical to capturing potential tenants who have short timelines for occupancy. In addition, the petitioners are facing short deadlines in order to begin the project this construction season. Mr. Paul Phair stated that due to the speculative nature of this building it is difficult to provide some of the employment and construction information required on the application. He reiterated that the Huron Building was also built and marketed on a speculative basis and is currently occupied by two strong tenants. He stated that they would not have captured either of the existing tenants without having the space available, or tax abatement on the building. He stated that is the same conflict that they are facing with the Ontario Building. In order to attract tenants who have a short timeline for occupancy they need to have the ability to obtain a construction permit and move as quickly as possible, but also need to have the assurance of tax abatement in place before they will commit to the building and the area. A Public Hearing was held on the Resolution at this time. There as no one present wishing to speak in favor of this bill. The following individuals spoke in opposition to this bill. Mr. Marty Wolfson, 809 Park Avenue, South Bend, Indiana, spoke in opposition to this bill. He stated since when does it become the responsibility of the tax payers to make the Ontario project a profitable project. He disagreed with the speculative nature of this building and the unknown kinds of jobs and wages. He asked the Council to put a moratorium on all future tax abatements. He urged the Council not to adopt this bill. Mr. Chris Springer, 530 Hildebrand, South Bend, Indiana, spoke in opposition to this bill. Mr. Springer advised that the Holladay Corporation has hired HGR Consulting who has misclassified workers on their 1099 forms. He stated that the company does not pay workers compensation, overtime, or unemployment compensation. He noted that there 21