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HomeMy WebLinkAboutBusiness & Ind - 1993-12-09BIAC\1993-12-09 BUSINESS AND INDUSTRY ADVISORY COMMITTEE MINUTES THURSDAY, DECEMBER 9, 1993 PRESENT: Mike Hiscott (Chair), Atso Saarkoppel, Dan Beach, John Tibbits, David Freure, Claude Schneider, Martha George, Tiro Guglielmi, Wayne Hussey, Councillor Mike Wagner, and Councillor Carl Zehr ALSO PRESENT: Valerie Gibaut, George Borovilos and Jane Jantzi REGRETS: Jim McCutcheon and Jerry Mclnnis RECORDER: Sandy Curzon 1. Appointment of Chair and Vice Chair Moved by T. Guglielmi Seconded by W. Hussey That Mike Hiscott be appointed as Chairperson for 1994. Carried. Moved by Atso Sarkoppel Seconded by Claude Schneider That Tiro Guglielmi be appointed as Vice-Chairperson for 1994. Carried. 2. Issues arising from Minutes of November 25, 1993 meeting: a) Kitchener Asphalt BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES Discussion on this item was deferred from the last meeting due to time constraints. V. Gibaut advised the Committee that she was presently negotiating with another local company for the same site, and that this information would affect their discussions. A company now operating from a building on Alpine Court is considering purchasing 8 - 10 acres of land for a 65,000 sq.fl, facility. They are interested in Site 84 and also the 4.1 acre corner site. They are not interested in the land unless we can assemble the site including the corner, as they intent to construct a "flagship" facility with a high profile. They wish the City to make the purchase as easy as possible for them and asked for a written proposal to be made by December 10th. Discussion took place regarding the proposed repurchase, the price, and the options open to us. Berkshire Building Corporation had already been approached with a repurchase plan and they have asked for 100% of the price. As we require their land in order to make a suitable site, it was generally agreed that despite the existing clause enabling the City to repurchase undeveloped land for 80% of the purchase price, we should offer to repurchase at 100%. It was pointed out that Berkshire Building Corporation have consistently proven to be a first-class well-respected developer. They presently own 8 buildings in the Huron Business Park and pay over $400,000 annually in property taxes. Over the years, Economic Development staff have worked at building a strong relationship with Mr. Shniffer of Berkshire Building Corporation. David Freure entered the meeting As the local company is also considering land in the Cambridge Business Park, it was agreed that we should endeavour to do everything possible to keep the company in Economic Development Division 2 December 9~ 199:3. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES Kitchener. V. Gibaut recommended that a proposal be prepared offering the company 8 or 10 acres of land (including Site 84A) for $75,000 per acre, serviced and graded. It was noted that the land still requires grading and compacting. Concern was noted that there could be negative reaction to this type of transaction. D. Freure however, related his experiences with the consumer when negotiating prices and felt that we must do everything we can to make the sale. C. Schneider stated that one of his clients considering purchasing land had mentioned to him that there seemed to be a range of prices, and he was uncertain what the actual price is. M. Hiscott summarized the discussion by pointing out that: 1) Staff will prepare a proposal to the Company at $75,000 per acre. 2) If a favourable response is received, staff will negotiate with Berkshire Building Corporation. The prime issue was not the price of land, but the retention of a local company and the accompanying jobs and taxes. b) 4) At $75,000 per acre, the offer was consistent with current market value. Councillor Wagner reminded Committee that they should continue to make recommendations which stimulate and encourage economic growth in the City M. Hiscott asked T. Guglielmi to take the chair during the discussion regarding Kitchener Asphalt, as he wanted to speak freely on the issue. Economic Development Division December 9~ 1993. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES V. Gibaut summarized the presentation and the issues involving Kitchener Asphalt and their enforced relocation due to the development of the Huron Natural Park by the City and the Waterloo County Board of Education. A review was made of the concerns addressed by the School Board and the implications to Kitchener Asphalt. It was noted that in their existing location, the company poses no identified health risk, is not a visual eyesore, is unobtrusive to the neighbouring community and is an employer and a taxpayer. The question of why they are being forced to move was raised. It was recommended that a motion be prepared and forwarded to the Planning and Economic Development Committee meeting of January 17th 1994, outlining the above- noted concerns. J. Tibbits offered to prepare the appropriate wording. Councillor Carl Zehr entered the meeting Councillor Mike Wagner left the meeting K~W Chamber's Report on Economic Development A review of the K-W Chamber draft report on Regional Economic Development took place. It was pointed out that since the K-W Record had been provided with a copy of this confidential report and published excerpts, the credibility of the report was now in question. It was agreed that the tone of the report suggested that the author was not familiar with economic development activities and the Committee had some genuine concerns about the contents of the report. It was suggested that a response be prepared to Mr. Weiler and that it be co-signed by V. Gibaut and M. Hiscott (a copy is attached with the minutes. Economic Development Division 4 December 9, 1993. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES 4. Meeting Dates It was agreed that meetings continue to be held on the second Thursday of each month at 11:00 for two hours, with lunch being served. Councillor C. Weylie has expressed an interest in attending, as she has just been appointed as Chairperson of the Planning and Economic Development Committee. If necessary, alternate dates will be arranged when there is a conflict. Highway #7 Planning Study ~ KW Expressway Interchange V. Gibaut etc. The impact of this new interchange as presented by MTO, has a major economic impact to the City as Kaufman Footwear will not be able to proceed with their proposed plant expansion of 200,000 sq.fl, on Shirley Avenue. As there are other economic issues involving many companies, staff has been directed by T. McKay, to arrange a meeting with the Minister of Economic Development and Trade to discuss the issue. The committee will be kept informed of ongoing developments. Commercial/Industrial Tax Rates V. Gibaut distributed a recent report comparing Kitchener taxes to the rest of the Region. Local businesses are constantly complaining about tax issues, and small businesses continue to suffer. Councillor Zehr cautioned that specifics need to be addressed when discussing taxes. G. Borovilos provided some comparisons of property taxes within the Region. M. Hiscott asked that staff prepare a report regarding property and business taxes and to include comparisons to those municipalities which are in competition with Kitchener. 7. Economic Development Activities: Economic Development Division December 9~ 1993. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES V. Gibaut provided a summary of the following: a) Larry Smith - Dynamic Profile of the Regional Economy. This document has been completed and copies will be made for distribution, once Regional Council has dealt with it. Members asked for a copy each. b) The Business Heritage event was a great success, it was noted however, that the K- W Record did not provide coverage. c) Enquiries for buildings have increased substantially in the industrial sector. d) Local businesses in the automotive parts sector are booming. e) Real Estate Show in Toronto - once again local developers/realtors were invited to share the booth with good results. Business Directory - the 1994 version will be available in March '94 and will include Manufacturing and Service Businesses. All those listed in the directory will receive a free copy. g) h) i) Rhone Alpes meeting with business leaders from Kitchener and Waterloo was a small, extremely targetted session and it is hoped positive results will be achieved. Plant Visits - staff is continuing to make visits, and although it is difficult to co- ordinate with members of the committee, V. Gibaut suggested that possibly a few large companies could be visited in 1994 - Budd Canada, Krug Furniture etc. Bank of Montreal - pilot project for lending to small high4echnology companies in Economic Development Division 6 December 9~ 199:3. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES Waterloo Region was announced. j) Bell Canada brochure was distributed to Committee. A potential rezoning application for the Price Club/Aikenheads lands was being considered. A meeting will be held with the property owners to determine their interest in widening the range of commercial/retail uses. Meeting adjourned at 12:50 p.m. Next Meeting: Thursday, January 13, 1994 11:00 a.m. ~ 1:00 p.m. Council Lounge, 2nd Floor Kitchener City Hall Economic Development Division December 9~ 199:3.