11/13/1991 Meeting Minutes - Laserfiche WebLink

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185 MINUTES OF A SPECIAL MEETING OF COUNCII. Mayfield Village November 13, 1991 The Council of Mayfield Village met in Special Session on Wednesday, November 13, 1991, at seven-thirty (7:30 p.m.) in the Council Chambers at the Mayfield Village Hall. Council President Bruce Rinker presided. ROLL CALL: Present: Mr. Basile, Mrs. Cinco, Mr. Fenante, Mr. Flynn, Mrs. Mills, Mr. Pietrafese, and Mr. Rinker Absent: None Also Present: Mayor Carmen, Mr. Patrick, Mr. Ramos, and Miss Heath Mr. Rinker said he felt some particular issues which had only been broached the week preceding the Caucus, deserved attention.. He would like to let some people from Progressive bring us up to date. Also, home owners from-`Mayfield Village and Mayf'ield Heights who are present may wish to address us. Mr. Rinker asked that the gentleman from Progressive explain the issue at this time. Mr. Chuck Chokel. ProQressive Insurance Compan,y - said one issue he would like to discuss is a financial issue; to ask for help in giving tax incentives to Progressive: for building this project. Mr. Chokel said that he asked Mayor Carmen what the Village's attitude;is t`='if Council would be open to providing tax incentives. He said that Mayor Cannen had indicated ttiere was a general willingness to listen to the proposal. Mr. Chokel said they are in the process of designing a proposal. They have come a long way toward the design and are working on more specific information as to what jobs would be relocated. He said they think the time is right to come forward and talk about it. They have been approached by many different municipalities about relocating Progressive to their community. Mr. Chokel said that the trend toward tax incentives and abatement is increasing. Communities are placing a large premium on new jobs and favor service jobs in particular. Revenues on payroll income taxes are five times the amount of any property taxes that would come even before the tax abatement. Mr. Chokel said Progressive is asking for a 66 2/3% tax abatement under a community reinvestment area. Each year, approximately $18,000 to the Village, along with about $23,000 to the Mayfield School System in addirional revenues, would be due the parties. Progressive is looking to relocate 1400 jobs into Mayfield Village at an average income of $30,000 per person. Mr. Chokel said that this would be a headquarters building. They would be increasing the pa?ro?in Mayfield Village to 42 million dollars. Figuring at the 1.5% tax rate for new employees, $630,000 in new revenues would be coming into the city. The first year they would be up and running would be 1994. Mr. Chokel said that Mayfield Village would see taxes going up to an estirnated $1,000,325. He said these numbers are after they would receive tax abatement. Mr. Chokel explained the cumulative effect of this on Mayf'ield Village and on Mayfield Schools. (T'hese figures are included in the information Progressive gave to Council. See the schedule of esrimated additional.:tax revenue to Mayfield Village and Mayf'ield School System from the new project.) Mr. Chokel said Progressive has 2900 jobs currently in the Cleveland;;area. They had a few job losses and there are about 2000 people on premise. He handed out a sfieet on what other communities are offering. Mr. Chokel explained the three types of tax incenrives (urban development, enterprise zone, and community tax abatement.) He said that Progressive will bring more jobs to Mayfield Village than Society brought to Cleveland. They expect a net increase of 1400 jobs. They are asldng for an incenrive on the real estate portion for 15 years. Mr. Chokel said that Progressiv:e5has been here 17 years. Mr. Chokel said Progressive wants to impress upon us the need for"a;relatively timely decision. -