HomeMy WebLinkAboutConfirming Tax Abatement - 7055 Cleveland Rd. Patterson Logistics Services, Inc.( 7yr.real)RESOLUTION
4042-10
Passed by the Common Council of the City of South Bend, Indiana
August 9,
Attes
10
20
Presented by me to the Mayor of the City of South Bend, Indiana
August 10, 20 10
City Clerk
ident of Common Council
Approved and signed by me u ~ S ~'" t Z-- 20 ~ d
City Clerk
RESOLUTION NO. ~D~E2-~ ~
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
7055 Cleveland Rd.
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A SEVEN (7) YEAR REAL
PROPERTY TAX ABATEMENT FOR
PATTERSON LOGISTICS SERVICES, INC.
WHEREAS, the Common Council of the City of South Bend, Indiana, has
adopted a Declaratory Resolution designating certain areas within the City as Economic
Revitalization Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as
7055 Cleveland Rd. ,South Bend, Indiana, and which is more particularly described as
follows:
Lot numbered Two (2) as shown on the recorded plat of Kidder's Olive Road
Minor Subdivsion, recorded April 17, 1998 as Document Number 9818752 in the
Office of the Recorder of St. Joseph County, Indiana.
and which has Key Number 71-03-19-300-003-000-009 or 025-1011-018601, be
designated as an Economic Revitalization Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public
hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5;
and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution
designating the area described herein as an Economic Revitalization Area for the
purposes of tax abatement. Such designation is for Real property tax abatement only and
is limited to two (2) calendar years from the date of adoption of the Declaratory
Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is
qualified for and is granted Real property tax deduction for a period of seven (7) years,
and further determines that the petition, the Memorandum of Agreement between the
Petitioner and the City of South Bend, and the Statement of Benefits comply with
Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code
6-1.1-12 et se .
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved by the Mayor.
Member of the Common Council
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JOkit2 VOORDf:
CITY CL~RiC, S4.9creD, IN.
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
10-36 A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS 7055 CLEVELAND RD. AS AN
ECONOMIC. REVITALIZATION AREA FROM PURPOSES
OF A SEVEN (7) YEAR REAL PROPERTY TAX
ABATEMENT FOR PATTERSON LOGISTICS SERVICES,
INC.
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
Ann Puzzello
Chairperson, Committee of the Whole
January 27, 2010
Council Member Timothy Rouse, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
PATTERSON LOGISTICS SERVICES, INC.
Dear Council Member Rouse:
Please find attached the Department of Community & Economic Development's report on a commercial real
property tax abatement petition for the above-referenced Petitioner for the purchase, remodeling and
equipping of awarehouse/distribution center located at 7055 Cleveland Road. Also attached is a copy of the
petition, Statement of Benefits form, and supporting information.
The report contains the Department's findings relative to the above petition. The Petitioner, Patterson
Logistics Services, Inc., proposes to remodel a 208,000 square foot building to add office space and equip it
as a distribution center for the products it sells. The total cost for the equipment is estimated at up
$9,000,000. The project meets the qualifications fora (5) five-year personal property tax abatement and a
representative from Patterson Logistics will be available to meet with the Committee on Monday, February
8, 2010.
Should you or any of the other Council members have any questions concerning the report, or need
additional information, please feel free to call me at 235-5835.
Sincerely,
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
1200 ~.OUNTY-CITY I~UILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY SL ECONOMIC DEVELOPMENT
JEFFREY V GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
)LIDATED INCLUDING AD1
TO: SOUTH BEND COMMON COUNCIL
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FROM: BOB MATHIA ~,y1}~'~
SUBJECT: REAL AND PERSONAL PROPERTY TAX ABATEMENT PETITIONS
FOR: PATTERSON LOGISTICS SERVICES, INC.
DATE: February 8, 2010
On January 27, 2010, petitions for real and personal property tax abatement consideration for
property located at 7055 Cleveland Road were filed with the City Clerk by Patterson Logistics
Services, Incorporated. Pursuant to Chapter 2, Article 6, Section 2-82 of the Municipal Code of the
City of South Bend, these petitions were referred to the Department of Community and Economic
Development for purposes of investigation and preparation of a report determining whether the area
qualifies as an Economic Revitalization Area pursuant to I.C.6-1.1-12.1 and whether all zoning
requirements have been met.
The Department of Community and Economic Development has reviewed the petitions, investigated
the area, and makes the following report.
PROJECT SUMMARY
Patterson Logistics Services, Inc. operates distribution facilities for the company's medical, dental
and veterinary divisions. The Petitioner is proposing to: (a) purchase an existing 208,000 square foot
warehouse/distribution center that is only partially occupied; (b} construct physical improvements
including mechanical and electrical upgrades plus 10,000 square feet of new office and supporting
spaces necessary to support planned operations; (c) install logistical equipment to set up the building
as a distribution center. The existing building has aseven-year tax abatement on it that the Petitioner
intends to assume. The Petitioner is requesting up to an eight-year abatement for the improvements
it intends to make to the building. The cost of the construction portion of the project for the
improvements is estimated at $2,500,000.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZABETH LEONARD
FAX: 574/235-9697 574/235-9371
RE: Tax Abatement for Patterson Logistics Services, Inc. (Consolidated)
February 8, 2010
Page 2
The logistical equipment to be purchased includes racking, conveying equipment, server equipment,
cabling and security equipment. The cost of the equipment is anticipated to be up to $9,000,000.
The project's total cost is estimated at up to $19,500,000 which includes purchase of the existing
building.
The Petitioner is in the early stages of the construction contracting process. Therefore, it does not
have a firm list of construction contractors and suppliers. Based on current information it is
estimated that the applicant will qualify for afive-year abatement. The length of this period could
increase depending on the final selection of contractors and suppliers. However, it is not expected to
exceed eight years.
Total taxes to be abated during afive-year abatement period for the real property portion of the
project are estimated at $631,439. This includes $189,500 for the proposed improvements and
$441,939 for the tax abatement on the existing building. Total additional real property taxes to be
paid as a result of the project during afive-year abatement period are estimated at $931,271. This
includes $182,916 for the improvements and $748,355 for the existing building. Total taxes to be
abated during an eight-year abatement period for the real property are estimated at $705,185. This
includes $260,871 for the proposed improvements and $444,314 for the tax abatement on the
existing building. Total additional real property taxes to be paid as a result of the project during an
eight-year abatement period are estimated at $1,795,150. This includes $334,994 for the
improvements and $1,460,156 for the existing building.
Total taxes to be abated during the (5) five-year abatement period for the personal property portion of
the project are estimated at $391,446. Total additional taxes to be paid during the five-year
abatement period for personal property as a result of the project are estimated at $356,189.
EMPLOYMENT IMPACT
Per the petitions, it is estimated that the project will create fifty (50) new, permanent full-time
positions with an annual payroll $1,040,000. The project will also maintain sixty (60) existing
permanent full-time positions, including 20 existing permanent full-time minority employees, with a
total annual payroll of $1,620,000.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the Petitioner, Patterson Logistics
Services, Inc., has not been granted or associated with any previous tax abatements.
2. The Building Commissioner has reviewed the petitions and finds the property to be properly
zoned for the proposed project.
RE: Tax Abatement for Patterson Logistics Services, Inc. (Consolidated)
February 8, 2010
Page 3
3. A review of the South Bend Redevelopment designation areas finds that the property is located
in .the Airport Economic Area, which is a Tax Incremental. Allocation Area; therefore, the
petitions for real and personal property tax deduction must first be approved by the South Bend
Redevelopment Commission.
4. A review of Tax Abatement Ordinance Number 9394-03 finds that the petitioner meets the
qualifications for up to an eight-year real property tax abatement under Section 2-79, Warehouse
Development in the City-wide District and a (5) five-year personal property tax abatement under
section 2-84.2, Tangible Personal Property Tax Abatement.
CITY OF SOUTH BEND
PETITION FOR REAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of real property, located within the City of South Bend, hereby petition
the Common Council of the City of South Bend for real property tax abatement consideration and
pursuant to I.C.. 6-1.1-12.1-1, et seq., and South Bend Municipal Code Sec. 2-76 et sea., for this
petition states the following:
1. Describe the proposed redevelopment or rehabilitation project, including information
about physical improvements to be made, the proposed use of the improvements, and
a general statement as to the importance of the project to your business:
208,000 SF Distribution Center for Medical, Dental, and Veterinary supplies and
products. Physical improvements include mechanical and electrical upgrades to support
the operation and equipment, plus 10,000 SF of new office and supporting spaces. The
project is key to the business of Patterson Companies for distribution.
Land Size 11.67 acres; Building Size 208.000 sq.ft.
2. Describe the overall nature of the business and of the operations occurring at the
Property (attach additional sheet if more space is needed):
Distribution Center for Patterson Companies Medical, Dental, and Veterinary Divisions.
3. Estimate the dollar value of the project (excluding land): $19.500.000
4. The current assessed valuation of the real property before rehabilitation,
redevelopment, economic revitalization, or improvement:
Land: $121,500 and Building: $6,791,800 per City Assessor
Fully due to tax abatement currently in place, the current tax statements assessed value
of $10,200 is for land only. Improvements not assessed.
5. (A) The real property for which tax abatement consideration is petitioned (Property) is
owned or to be owned by the following individuals or corporations (if the business
organization is publicly held, indicate also the name of the corporate parent, if any, and
the name under which the corporation has filed with the Securities and Exchange
Commission):
NAME ADDRESS INTEREST
Patterson Logistics 1031 Mendota Heights Road 100%
Services Inc. St. Paul, MN 55120
(b) The following other person(s) lease, intend to lease, or have an option to buy the
property (include corporate information as required in 5(a) above, if applicable):
NAME ADDRESS INTEREST
N/A N/A N/A
(Rev 10/23/06)
6. The commonly known address of the Property is:
7055 Cleveland Road, South Bend, IN 46628
7. The Key Number(s) of said property is:
71-03-19-300-003-000-009 or 025-1011-018601
8. A legal description of the above address is attached hereto, marked AExhibit A,@ and
incorporated herein.
9. A map and/or plat describing the Property is attached hereto, marked AExhibit B,@ and
incorporated herein.
10. Photographs of the property, taken within two (2) weeks of filing of this petition, are
attached hereto, marked AExhibit C,@ and incorporated herein.
11. The redevelopment or rehabilitation project itself will create 50 full-time and 0 part-time
permanent jobs within the first year, representing a new annual payroll of $1.04 million
and will maintain 60 existing permanent full-time and 0 existing permanent part-time
jobs including existing permanent full-time minority employment of 20 and existing
permanent part-time minority employment of 0 with an annual payroll of $1.62 million for
all existing employees.
12. The projected annual salaries for each new position indicated above are estimated to
be as follows (If more space is needed, please attach a separate sheet): $20,800.00
13. Provide current employment wage information including; base rate, cost-of-living
allowances, hazardous-duty pay, incentive pay including commissions and production
bonuses, on-call pay and tips. Do not include; back pay, jury duty pay, overtime pay,
severance pay, shift differentials, non-production bonuses, and tuition reimbursements
(average hourly rate or range):
Position Full-Time Part-Time
Laborers $12.39 $0
Technical $0 $0
Mana erial $21.75 $0
Administrative $12.39 $0
14. Indicate whether your company provides the following benefits (use Y/N):
Y Health Care Benefits
N Pension Plan
Y Employer Provided Training (recognized or certified training/educational courses or
programs)
N Day Care (provides or contributes to the cost of child day care for its employees)
2
(Rev 12/29/06)
N Transportation Assistance (provide direct or indirect support and assistance to its
employees without private transportation to get back and forth from residence to
place of employment)
N Employer-Assisted Housing Program (provide an employer-assisted home
ownership program)
N Targeted Hiring Preference (provide hiring preference for residents of Census
Tracts designated by the Community & Economic Development Dept. that have
the highest unemployment or the highest percentage of low and moderate
income individuals).
(Additional information may be requested for verification of the above items)
15. List the real and personal property taxes paid at the location during the previous
five years, whether paid by the current owner or a previous owner:
Year/Paid Year Real Proaertv Taxes Personal Property Taxes
2008/2009 $306.52 $0
2007/2008 $400.44 $0
2006/2007 $351.21 $0
2005/2006 $357.88 $0
2004/2005 $341.00 $0
2003/2004 $341.23 $0
(this information may be obtained from the St. Joseph County Treasurers office 235-9531)
16. Please list the number offull-time and part-time minority employees for each of the
last three years:
Year 2010 2009 2008
Ethnicit Full Part Futt Part Full Part
African American 11 0 15 0 13 0
His anic 6 0 8 0 12 0
Asian 3 0 1 0 0 0
Indian 0 0 0 0 0 0
Other 0 0 0 0 0 0
17. Does your business maintain an affirmative action plan or other similar plan in
order to achieve racial diversity? If yes, please briefly indicate specific goals,
objectives, and means as designated by your plan:
Yes.
a) Encourage female and minority employees to refer applicants.
b) Instruct supervisors to monitor each employee's job skills, experience
level and performance and to assist the employee in career counseling as
(Rev 12/29/06)
appropriate. Discuss promotion or transfer opportunities which may
benefit the employee's career.
c) Develop action plans for female and minority employees to help ensure
their potential for advancement into more senior positions in managerial,
professional and sales categories.
18. Indicate whether or not your project meets any of the following criteria (contact
Community & Economic Development Dept. 235-9335 for information on this
section):
N Conversion to residential use of a commercial an Eligible BuildingC~ as designated
by the Community & Economic Development Dept.
N Rehabilitation of a building that is either designated as a National Register or local
landmark or is eligible for nomination as one, located in a National Register or
local landmark district, or rated as Outstanding or Significant in the most recent
Historic Preservation Commission county wide survey.
N Rehabilitation and reuse of a property that is designated a Problem Property by
the Community and Economic Development Department.
N Pays for the cost of cleaning up a ABrownfield,C~ which is any site, building
facility or complex that has been designated a brownfield by the Community and
Economic Development Department.
Y Achieves a physical element identified in a development or revitalization plan that
has been approved by the Council.
19. Is your business based upon licensing intellectual property from research conducted at
a public or private university, college, or community college located within St. Joseph
County, Indiana? If yes, please include a description of the research based aspects of
the business (attach additional sheet if more space is needed): No
20. Does your business financially support a Municipal Facility (i.e. municipally owned park,
recreation center, cultural, arts, or entertainment facility)? No
21. Is your company incurring any of the cost of extension or oversizing of municipal
infrastructure serving the project site? This includes water, sewer, drainage facilities,
wastewater treatment facilities, road and street improvements, street lighting, traffic
control and related public improvements (attach additional sheet if more space is
needed): No
22. Information is required on the companies through which construction materials will be
purchased for the project. (Please complete the table on page 8 of this application).
23. Information is required on the construction companies that will be utilized for
4
(Rev 12!29!06)
construction of the project. (Please complete the table on page 9 of this application).
24. No building permit has been issued for construction on the property in connection with
the improvement in question as of the date of filing of this petition. (The Property
Owners signature at the end of this application is verification of this statement).
25. The Standard Industrial Classification (SIC) or North American Industry Classification
Systems (NAILS) major group within which the proposed project would be classified,
by number and description:
5407-Retail Trade
26. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description:
453990: All other miscellaneous retailers
27. The current use of the Property is Distribution and the current zoning is
Limited Industrial (LL1.
(This information may be obtained from the Building Department 235-9554).
28. Has your business been granted previous tax abatement(s)? If yes, please provide type
(real and/or personal property) and date of approval.
No
29. Other anticipated public financing for the project including, if any, industrial revenue-
bonding to be sought or already authorized, assistance through the United States
Department of Housing and Urban Development funds from the City of South Bend,
Small Business Association Sections 503 and 504 financing through the Business
Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana,
Industrial Revolving Fund, Neighborhood Business Development Corporation,
Corporation for Entrepreneurial Development; or other public financial assistance,
including but not limited to public works improvements: None
30. The following person(s) should be contacted as Petitioners agent regarding additional
information and public hearing notifications:
Name Gwen Schultz and Karen Rile
Address 80 South Ei hth Street, Suite 850
Cit ,State, Zi Minnea olis, MN 55402
Tele hone 612 337-8498
31. Please indicate the name, address, and telephone number of the person who will work
with Employment Training Services (ETS) for employee recruitment, and sign the ETS
form attached to the petition if the real tax abatement is for warehouse or industrial
5
(Rev 12/29/06)
developments.
Name Jeff Lea
Address 4303 Technolo Drive
Cit ,State Zi South Bend, IN 46628
Tele hone 574 289-8485
WHEREFORE, Petitioner requests that the Common Council of the City of South Bend,
Indiana, adopt a declaratory resolution designating the area described herein to be an
economic revitalization area for purposes of tangible real property tax abatement
consideration, and after publication of notice and public hearing, determine qualifications
for an economic revitalization area have been met, and confirm such resolution. Petitioner
herein hereby verifies that the required $250.00 filing fee to cover processing and
administrative costs pursuant to Section 2-84.7 of the Municipal Code of the City of South
Bend has been paid in full.
Name of Property Owner(s):
Patterson Logistics Services, Inc.
1031 Mendota Heights Road
St.Paul, MN 55120
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By:
(Signed Name)
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(Typed or printed name and capacity of signor if signed by
an agent or representative of the owner.)
(Rev 12/29/06)
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5-Feb-10
Patterson Logitics Services, Inc.
Public Benefit Points Sum mary
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Project Related:
1. A. Redevelop a Site that has Special Needs N 0 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan N 0 36
Sub-total Project Related: 0 120
2. Super Size Projects (point values are cumulative):
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% Y 65 65
D. 400% and Over Y 52 52
Sub-total Super Size Projects: 210 210
3. Construction Related:
A. Employ Local Companies N 0 20
B. Purchase Materials from Local Companies N 0 20
C. Require Employees vs. Independent Contracts N 0 19
D. Require Target Wage Levels N 0 22
E. Require Health Benefits N 0 22
F. Require Pension Benefits N 0 18
G. Maintain Affirmative Action Plan N 0 20
Sub-total Construction Related: 0 141
4. Wage & Benefit Related:
A. Pay Target Wage Levels N 0 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits N 0 29
D. Provide Training Y 28 28
E. Provide Child Care N 0 15
F. Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage 8 Benefit Related: 62 162
5. Workforc e Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan Y 35 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 118 152
6. Pay for Municipal Infrastructure: (point values are cumulative):
A. Pay for Oversizing or Upgrading N 0 14
B. Pay for 26-50% of Extension Cost N 0 26
C. Pay for 51-75% of Extension Cost N 0 39
D. Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7. Support a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 390 1000
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Royal Holdings, Inc.
Additional Years of Abatement
Multi-family Development Projects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Projects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 1000 7
Subtotal from Points Summary: 390
Base Years of Abatement
Additional Years of Abatement:
Total Years of Abatement: 5
5-Feb-10
Patterson Logitics Services, Inc.
Public Benefit Points Summary "
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Proiect Related:
1. A. Redevelop a Site that has Special Needs N 0 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan N 0 36
Sub-total Project Related: 0 120
2. Super Size Proiects (point values are cumulative):
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% Y 65 65
D. 400% and Over Y 52 52
Sub-total Super Size Projects: 210 210
3. Construction Related:
A. Employ Local Companies Y 20 20
B. Purchase Materials from Local Companies Y 20 20
C. Require Employees vs. Independent Contracts Y 19 19
D. Require Target Wage Levels Y 22 22
E. Require Health Benefits Y 22 22
F. Require Pension Benefits Y 18 18
G. Maintain Affirmative Action Plan Y 20 20
Sub-total Construction Related: 141 141
4. Wage & Benefit Related:
A. Pay Target Wage Levels N 0 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits N 0 29
D. Provide Training Y 28 28
E. Provide Child Care N 0 15
F. Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage & Benefit Related: 62 162
5. Workforce Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan Y 35 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 118 152
6. Pay for Municipal Infrastructure: (point values are cumulative):
A. Pay for Oversizing or Upgrading N 0 14
B. Pay for 26-50% of Extension Cost N 0 26
C. Pay for 51-75% of Extension Cost N 0 39
D. Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7. Support a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit P oints: 531 1000
* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Royal Holdings, Inc.
Additional Years of Abatement
Multi-family Development Projects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Projects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 1000 7
Subtotal from Points Summary: 531
Base Years of Abatement 3
Additional Years of Abatement: 5
Total Years of Abatement: 8
5 YEAR
2-Feb-10
Olive Cleveland
South Bend German Township
Real Property Tax Abatement Schedule*
Tax Key Number
Current Assessed Value:
Estimated Project Cost:
25-1011-018601
6,791,800
2,500,000
100%
Year 1
80% 60% 40% 20%
Year 2 Year 3 Year 4 YeaiR 5
Current Without
Assessed Value: AV & Tax Abatement Pav 2011 Pav 2012 Pav 2013 Pav 2014 Pav 2015
Current Assessed Value 100% 6,791,800 6,791,800 1,449,446 2,450,298 3,401,150 4,352,002 5,337,188
Base Assessed Value 85% 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000
Less Abatement Deduction 0 (2 125 000) (1 700 000) (1,275,000) (850,000) (425,000)
Net Assessed Value 6,791,800 8,916,800 1,449,446 2,875,298 4,251,150 5,627,002 7,037,188
Property Taxes:
Assume constant tax rate of
4.4232%
4.4232%
4.4232%
4.4232%
4.4232%
4.4232%
4.4232%
Gross Tax (tax rate x net assessed value)
Less Circuit Breaker Credit
Net Tax
Circuit Breaker Cap
Circuit Breaker
Debt Service
Circuit Braker Cap
300,415 394,408 64,112 127,180 188,037 248,894 311,269
(62 356) (81 866) 0 0 0 0 (8,221)
238,059 312,542 64,112 127,180 188,037 248,894 303,048
3.0000% 203,754 267,504 267,504 267,504 267,504 267,504 267,504
0.5051% 34,305 __ 45,038 7,321 14,523 21,472 28,421 ^35,544
New Combined Total Old New Net
Existing Project Existing & New Tax Abatement Abatement Tax
Year Taxes Taxes Taxes Abated Tax Abated Tax Abated Paid
Pay 2011 238,059 74,483 312,542 248,430 171,735 76,695 64,112
Pay 2012 238,059 • 74,483 312,542 185,362 129,677 55,685 127,180
Pay 2013 238,059 74,483 312,542 124,505 87,619 36,886 188,037
Pay 2014 238,059 74,483 312,542 63,648 45,561 18,087 248,894
Pay 2015 238,059 74,483 312,542 9,494 7,347 2,147 303,048
Totals 1,190,294 372,416 1,562,709 631,439 441,939 189,500 931,271
'This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actual assessed valuation and the then current tax rates.
8 YEAR
2-Feb-10
Olive Cleveland
South Bend German Township
Real Property Tax Abatement Schedule'
Tax Key Number 25-1011-018601
Current Assessed Value: 6,791,800
Estimated Project Cost: 2,500,000 10.00%
100% 88% 75% 63% 50 % 38 % 25 % 13
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Assessed Value: Current
AV & Tax Without
Abatement
Pav 2011
Pav 2012
Pav 2013
flav 2014
Pav 2015
Pav 2016
Pav 2017
Pav 2018
Current Assessed Value 100% 6,791,800 6,791,800 1,449,446 2,450,298 3,401,150 4,352,002
00 5,337,188
000
2
125 6,321,624
000
2
125 6,791,800
000
2
125 6,791,800
000
2
125
Base Assessed Value 85% 2,125,000
0 2,125,000
(2 125 000) 2,125,000
(1 870 000) 2,125,000
(1 593 750) 2,125,0
(1 338 750) ,
,
(1 062 500) ,
,
(807 500) ,
,
(531,250) ,
,
(276,250)
Less Abatement Deduction
Net Assessed Value 6,791,800 8,916,800 1,449,446 2,705,298 3,932,400 5,138,252 6,399,688 7,639,124 8,385,550 8,640,550
Prooertv Taxes_
Assume constant tax rate of
4.4232 %
4.4232%
4.4232%
4.4232%
4.4232%
4.4232%
4.4232%
4.4232%
4.4232 %
4.4232%
Gross Tax (tax rate x net assessed value)
Less Circuit Breaker Credit
Net Tax
Circuit Breaker Cap
Circuit Breaker
Debt Service
Circuit Braker Cap
300,415 394,408 64,112 119,661 173,938 227,275 283,071 337,894 370,910 382,189
62,356 81,866 0 0 0 0 0 31,805 61,051 71,042
238 059 312 542 64 112 119,661 173,938 227,275 283,071 306,088 309,859 311,147
3.0000% 203,754 267,504 267,504 267,504 267,504 267,504 267,504 267,504 267,504 267,504
0.5051% 34,305 45,038 7,321 13,664 19,862 25,953 32,324 38,584 42,355 43,643
238 059 312 542 274 825 281 168 287,366 293,457 299,828 306,088 309,859 311,147
New Combined Total Old New Net
Existing Project Existing 8 New Tax Abatement Abatement Tax
Year Taxes Taxes Taxes Abated Tax Abated Tax Abated Paid
Pay 2011 238,059 74,483 312,542 248,430 171,735 76,695 64,112
Pay 2012 238,059 74,483 312,542 192,881 129,677 63,204 119,661
Pay 2013 238,059 74,483 312,542 138,604 87,619 50,985 173,938
Pay 2014 238,059 74,483 312,542 85,267 45,561 39,706 227,275
Pay 2015 238,059 74,483 312,542 29,471 7,347 22,124 283,071
Pay 2016 238,059 74,483 312,542 6,453 2,375 4,078 306,088
Pay 2017 238,059 74,483 312,542 2,683 0 2,683 309,859
Pay 2018 238,059 74,483 312,542 1,395 0 1,395 311,147
Totals 1,904470 595,865 2,500,335 705,185 444,314 260.871 1,795,150
'This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actual assessed valuation and the then current tax rates.
5 YEAR
Patterson Logistics Services, Inc.
South Bend German Township
Personal Property Tax Abatement Schedule*
8-Feb-10
Tax Key Number 0
Current Assessed Value: 0
Estimated Project Cost: 9,000,000
40% 60% 55% 45% 37%
100% 80% 60% 40% 20%
Year1 Year2 Year3 Year4 Years
Current
Assessed Value: AV & Tax Pav 2011 Pav 2012 Pav 2013 Pav 2014 Pav 2015
Current Assessed Value 100% 0 0 0 0 0 0
Base Assessed Vaiue 3,600,000 5,400,000 4,950,000 4,050,000 3,330,000
Less Abatement Deduction (3 600 000) (4 320 000) (2,970,000) (1,620,000) (666,000)
Net Assessed Value 0 0 1,080,000 1,980,000 2,430,000 2,664,000
Property Taxes:
Assume constant tax rate of 4.4232% 4.4232% 4.4232% 4.4232% 4.4232% 4.4232%
Gross Tax (tax rate x net assessed value) 0 0 47,771 87,579 107,484 117,834
Less Circuit Breaker Credit 0 0 0 0 0 (4,478)
Net Tax 0 0 47,771 87,579 107,484 113,356
Circuit Breaker Cap
Circuit Breaker 3.0000% 0 108,000 162,000 148,500 121,500 99,900
Debt Service 0.5051 % 0 0 5,455 10,001 " 12,274 13,456
Circuit Braker Cap 0 108,000 167,455 158,501 133,774 113,356
New Combined Net
Existing Project Existing & New Tax Tax
Year Taxes Taxes Taxes Abated Paid
Pay 2011 0 126,183 126,183 126,183 0
Pay 2012 0 189,275 189,275 141,504 47,771
Pay 2013 0 173,502 173,502 85,923 87,579
Pay 2014 0 141,956 141,956 34,472 107,484
Pay 2015 0 116,719 116,719 3,364 113,356
Totals 0 747,636 747,636 391,446 356,189
*This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actua- assessed valuation and the then current tax rates.
Order No.: 510907980
EXHIBIT A
LOT NUMBERED TWO (2) AS SHOWN ON THE RECORDED PLAT OF KIDDER'S OLIVE ROAD MINOR
SUBDIVISION, RECORDED APRIL 17, 1998 AS DOCUMENT NUMBER 9818752 IN THE OFFICE OF THE
RECORDER OF ST. JOSEPH COUNTY, INDIANA.
PROPERTY ADDRESS: 7055 OLIVE RD., SOUTH BEND, IN 46628
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