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HomeMy WebLinkAbout04-17-2006 SpecialJEFFERSONVILLE CITY COUNCIL SPECIAL SESSION Meeting Memorandum -April 17, 2006- Mayor's Conference Room 5:30 p.m. Council President Barbara Wilson called the meeting to order. The meeting was called to order at 5:30 p.m. and on call of the roll those members present were: Councilpersons Wilson, Perkins, Fetz, Grooms, McCauley and Sellers. Councilperson Zastawny was absent. Also present were Clerk Treasurer Peggy Wilder, Mayor Waiz, City Attorney Merkley, and Chief Deputy Clerk Suzy Bass. The motion was made by Councilperson Fetz to move Joe Ham to be 1st on the agenda and to add Crowe Chisek to the agenda, seconded by Councilperson Perkins passing on a vote of 5-0. · Joe Ham, Storm Water Coordinator, along with Steve Hall, FMSM, appeared before the Council to request the approval of a drainage ordinance which is an add on of the previous ordinance (2004-OR-56). This ordinance enfomes a $2,500.00 fine for anyone in violation of the Drainage Ordinance. After discussion, the motion was made by Councilperson Perkins to approve 2006-OR-21 on the 1st reading, seconded by Councilperson Fetz, passing on a vote of 5-0. TIF Information Councilperson McCauley presented the Council with figures he and Director Cahill have been working on concerning the TIF monies. He explained the three handouts (attached) which included the costs of building two fire stations and a city garage. Councilperson McCanley said that the figures, though not 100% accurate, are very close. He feels that even w/th a worse case scenario, the TIF money would pay for these projects. The worse case scenario being that the City receives no revenues from Tech Park and Med Venture. Councilperson Perkins told Mr. Frierson and Sue Beasley that Station 4 will not be built if annexation doesn't happen. Sue Beasley presented the Council with a proposed financial timeline. Attorney Merkley asked Ms. Beasley to research that question that if the 3rd station is financed with TIF dollars does that tie their hands with tax dollars if the armexation takes place. Ms. Beasley said that City will be making the lease payments and the Redevelopment will pledge the dollars to make those payments. Hershel Frierson, Crowe Chisek, said that he will look into the different options for funding and get interest rates to Attorney Merkley by the end of the week. The Mayor hopes to sit down with the City Council and decide if they want to look into. G.O. Bonds. Councilperson Perkins said that according to the timeline, there wouldn't be a bond sale until August 15, 2006. Health Insurance Larry Lynn, Agent of Record for the City, appeared before the Council with an update on the insurance. He presented the Council with a cost estimate for the year (attached). Chief Deputy Bass reminded the Council that they need to take into consideration the monies to be received by the departments that are not included in the tax rate. The Council thanked Mr. Lyrm for the update. Abatement Hearing Barry Cahill appeared before the Council on an Abatement Hearing on the possibility of continuing abatements for four businesses. Attorney Merkley sent out letters about the heating. No one from Cintas and Kintech was present. Director Cahill advised that the City rescind the abatements for these two companies. Attorney Merkley stated that this was a public hearing and if anyone wanted to speak about these two companies, then they could do so at this time. There were no comments. The motion was made by Councilperson Perkins to pass 2006-R-25, a Resolution to Terminate the Abatement for Cintas, seconded by Councilperson Fetz, passing on a vote of 5-0. The motion was made by Councilperson Perkins to pass 2006-R-26, a Resolution to Terminate the Abatement for Kintech, seconded by Councilperson Fetz~ passing on a vote of 5-0. Attorney Merkley said that the after proper notice, if the City determines the property owner is not in compliance with the Statement of Benefits, then the benefits can be t~minated. Chuck Yingnt, Nova Tube, was present at the heating. He explained that original promise on the abatement stated that the promise was for 74 employees. They presently have 25 employees. He feels that this was not in the company's control. Their customer, Dana, which represents 94% of the comPany's business, between them and Ford were going to redesign the platform that Nova Tube were going to supply and this took out half of the content of their product. They have been out looking for business and have some good prospects. They feel this was not in their control. Councilperson McCauley told Mr. Yingnt that when Nova Tube came to the City, the City bought the property and gave it to Beth Nova to build their company and the City is making payments. He said that the City has received real estate taxes but no personal property tax. Mr. Yingnt said that they have paid taxes and maybe it is listed under their former business name, Beth Nova Tube. He will look into the payment. Attorney Merkley said that there are provisions in the statute about matters beyond their control. He said that is obviously an issue. He feels the City will have broad discretion concerning 'matters beyond their control'. The title to the Real Estate will go to Nova Tube. Councilperson Perkins said that the City lived up to their obligation and purchased the property and Nova Tube has not lived up to their promise. Mr. Yingnt does not dispute that l~ut he does contend that the reason for non- compliance is 'beyond their control'. C0uncilperson McCauley said that the City has paid about $200,000.00 and still owes about $100,000.00. Attorney Merkley reminded the Council that if they do terminate the abatement, then the company can file an objection. Councilperson McCauley would like to investigate where the taxes went that Mr. Yingnt says he paid. He would like to see if these were indeed paid before any action is taken. If they have been paid then it would make TIF more solvent. Mr. Yingnt said that they had 6 employees in 2001 and currently has their highest employee count at 25 persons. They lost their major source of business in 2001. The motion was made by Councilperson McCauley to continue this.hearing for Nova Tube until 5-1-06 second by Councilperson Grooms. Councilperson Perkins said that regardless ofwhether taxes have been paid, the City will still be responsible for payment of the land. The motion passed on a vote of 5-0. Jim Hagan, CFO of Roll Forming, presented the Council with a summary to bring the City up-to-date on where the company is at this time. (Attached) He discussed the report with the Council. He said the entire project, when completed, will include a 240,000 sq ft facility equipped with various machinery and equipment to support their manufacturing process. The 210 employees is the estimated manpower needed when the project is complete. The 1st phase, 120 sq ft building and related equipment were completed in November 2001. The slow start was a reflection of the economic downturn experienced in 2001 and 2002. They feel their business plan was delayed 24 months from the original projections. Current employment is 41 and they hope to reach 51 by April, 2006. Roll Forming has invested $7,132,000 in Real Estate plus $10,107,000 in Machinery and Equipment to date. The tax incentives provided included a period of 5 yrs for Machinery and Equipment and i0 yrs for Real Estate. Mr. Hagan asked that the Council continue to support the abatement. Councilperson Mc~Cauley said that the average abatement per job is normally $3,000.00 or $4,000.00. He feels that the average from 2003 - 2006 in not too unreasonable. The motion was made by Councilperson to continue the abatement hearing on Roll Forming, seconded by Councilperson Perkins, passing on a vote of 5-0. The motion was made by Councilperson Perkins to adjourn at 7:40 P.M., seconded by Councilperson Fetz, passing on a vote of 5-0. Council President Wilson Attest: C~erk TreaSurer Peggy Wilder