07-27-09 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING JULY 27, 2009 have been complaints of tax and insurance fraud. He urged the Council to request copies of those documents and look them over before voting on this bill tonight. Mr. Tony Flora, 202 E. Angela, South Bend, Indiana, stated that he is opposed to the granting of this tax abatement. He stated that this project lacks the qualifications in the Public Benefit Point system that the Department of Community & Economic Development has calculated. Mr. Flora advised that tax abatements no longer further the benefits of the city. He asked the Council to please vote against this tax abatement. Mr. Tom Zmyslo, 51042 Prairieview Way, South Bend, Indiana, spoke in opposition to this bill. Mr. Zmyslo called this project “corporate welfare.” He stated that when he opened his business several years ago, he did not ask for tax abatement. He urged the Council not to adopt this tax abatement. Mr. Brad Murphy, 9419 Dune Drive, Bridgeman, Michigan, spoke in opposition to this bill. Mr. Murphy stated that the argument is not union versus non-union. He stated that it is contractors not paying their fair share of the taxes. He agreed with Mr. Zmyslo that this is corporate welfare and it is a burden on the community. He asked the Council to vote against this tax abatement. Ms. Judith Wroblewski, 515 S. Meade Street, South Bend, Indiana, spoke opposed to this bill. Ms. Wroblewski noted that the City of South Bend is in financial trouble. She stated that even with the increase in the Local Option Income Tax, the city is still going to be in debt. She stated that one way the City of South Bend could save money is to stop granting so many tax abatements. She urged the Council to vote against this abatement. Mr. Kevin Wild, 52630 Brooktrails, South Bend, Indiana, stated that he is speaking on behalf of the Concrete/Mason Workers Union. He urged the Council not to set a precedent tonight and let the Holladay Corporation to continue to hire contractors who are misclassifying workers on their 1099 forms so that they do not have to pay for workers compensation, unemployment benefits and overtime work. He asked the Council to vote against this abatement. In Rebuttal, Mr. Phair advised that the project won’t happen if they are not competitive. He noted that 100% of the tax abatement benefits go to the tenant. He stated that this project will be a major contribution to the tax base. Mr. Phair agreed to the six year term. He urged the Council’s favorable recommendation. Council Attorney Kathleen Cekanski-Farrand advised that the Council that should they go forward tonight they could hold off on adopting the Confirming Resolution until a client was established. Councilmember LaFountain advised that he is not in support of this bill. He stated that this is not the movie “A Field of Dreams”, build it and they will come. He stated that he is against creating something that might or might not be used. He stated that he will not be voting in favor of this bill. Councilmember Rouse stated that the Ontario Building based on the Public Benefit Points system was calculated for the abatement term to be six years only. He advised that he is not comfortable not having the entire breakdown of the local option income tax and how that tax is going to be collected and distributed. He noted that when the abatement was granted for the Huron building it was an entirely different economy. Council President Dieter advised that Holladay Properties is paying for the building and that they are asking for abatement for their tenants. Councilmember White questioned why the Council would not support the administration in granting a six (6) year abatement. Councilmember Henry Davis asked if there were any other tools available. 22