Thursday, August 9, 2012

St. Joseph County Considers Repeal of Tax Abatement Ordinance

From the South Bend Tribune:

Since becoming law in 2009, the county's tax abatement ordinance has been the subject of much debate among members of the county council, some of it heated.

Democrats, on the one side, insist the ordinance is necessary to ensure that businesses that receive abatements in the county act as good corporate citizens.
Republicans, meanwhile, describe the law as overly burdensome, a metaphorical "Closed for Business" sign at the county line.

Those arguments are likely to be repeated Tuesday, when the council considers a proposal by council member Dale DeVon, R-District C, to repeal the ordinance in its entirety.

The proposal – technically Bill No. 139-10 – had been sitting in committee for more than a year, ever since DeVon, citing high unemployment and slow economic growth, introduced it in December 2010.
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Of the current abatement ordinance, DeVon, who voted against it back in 2009, said it includes too many restrictions and, as a result, discourages companies that might otherwise consider the county as a place to expand or locate.

"I think it's just way too long, it's too much," he said of the 36-page document. "I think if we're trying to entice and invite businesses to come to the county, we just need one page that might say, 'Welcome to the community, we're here to assist you and help you grow your company and create jobs.'"

For his part, council member Dan Herbster, R-District F, described the ordinance as a "red flag" warning companies to steer clear of the county.

"Even if you agree with the things in the tax abatement ordinance, I hope people agree with me that (in an ordinance) is not the best place to put them," he said, adding, "Nothing prevents the County Council from inquiring about all of the things in the ordinance and more, and then exercising good judgment."
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Introduced by council member Mark Catanzarite, D-District G, the county’s current tax abatement ordinance provides for a base abatement period of three years, with additional years awarded based on a company's willingness to meet certain wage requirements.
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The County Council meets at 7 p.m. Tuesday inside council chambers on the fourth floor of the County-City Building, 227 W. Jefferson Blvd.

http://www.southbendtribune.com/news/sbt-st-joseph-county-council-to-consider-repeal-of-tax-abatement-ordinance-20120809,0,513080.story