HomeMy WebLinkAboutConfirming Tax Abatement - 7055 Cleveland Rd. Patterson Logistics Services Inc.,(5yrspp)RESOLUTION
4043-10
Passed by the Common Council of the City of South Bend, Indiana
August 9,
Attest:
20 10
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
August 10, 20 10
Approved and signed by me ,~,A ~ ~ ~ ~ ~ Z- 20 ~ ~
City Clerk
RESOLUTION NO. ~ ~~ 3
A RESOLUTION .CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
7055 CLEVELAND ROAD
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL 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 Road, 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 Subdivision, 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, 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 Personal 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 Personal property tax deduction for a period of five (5) years,
and further determines that the petition complies with Chapter 2, Article 6, of the
Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et sec ..
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
PRESENTED ~-~~1-~
NOT APPROV.EQ
ADOPTED Q' ~~L~
File 1-~ ~i~~k's office
J U L 2 1 2010
JOHN VOORDE
CITY CLERK, S0. BE~t~J, IN.
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
10-37 A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS 7055 CLEVELAND ROAD TO BE
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES
OF A FIVE (5) YEAR PERSONAL 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: Commercial Real Property Tax Abatement Petition for:
PATTER5ON 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 existing building has aseven-
year tax abatement that the Petitioner intends to assume. The Petitioner is seeking an additional
five-year real property tax abatement for the improvements it plans to make. A representative of the
Petitioner 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 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
PHONE 574/ 235-9371
FAx 574/235-9021
TDD 574/ 235-5567
COMMUNITY ~L ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT , ~3,~ w~
'N~ a 3a~oor, NNOc
CONSOLIDATED INCLUDING ADDEND M
TO: SOUTH BEND COMMON COUNCIL ~~~ $ ~ ~3~
J~~r~a01:~ u1 ~~:~~
FROM; BOB MATHIA s~1~~~
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 SL 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 properly tax abatement under
section 2-84.2, Tangible Personal Property Tax Abatement.
5-Feb-10
Patterson Logitics Services, Inc.
Public Benefit Points Sum mary"
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 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. Waae 8 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. 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 cum ulative):
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 Proiects:
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 Proiects:
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 3
Additional Years of Abatement: 2
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 8 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. 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 Po ints: 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
Additional Years of Abatement:
Total Years of Abatement: 8
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 Proiects:
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 , 3
Additional Years of Abatement:
Total Years of Abatement: 5
~i~~'~ ~i`! ~~v!"''t'S ~~€ECG'
J ~~!,! 2 8 2010
C17Y CI.L":~., `~. BFP17, IN.
5 YEAR
2-Feb-10
Olive Cleveland
South Bend German Township
Real Property Tax Abatement Schedule'`
100%
Year 1
Tax Key Number
Current Assessed Value:
Estimated Project Cost:
25-1011-018601
6,791,800
2,500,000
80% 60% 40% 20%
Year 2 Year 3 Year 4 YeaR 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
238,059 312,542 274,825 282,027 288,976 295,925 303,048
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
Current Without
Assessed Value: AV & Tax Abatement Pav 2011 Pav 2012 Pav 2013 Pav 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 5,337,188 6,321,624 6,791,800 6,791,800
Base Assessed Value 85% 2,125,000 2,125,000 2,125,000 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) (1 870 000) (1 593 750) (1,338,750) (1 062 500) (807,500) (531,250) (276,250)
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
(62356) (81866) 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 1,904,470 595,865 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
8-Feb-10
Patterson Logistics Services, Inc.
South Bend German Township
Personal Property Tax Abatement Schedule*
Tax Key Number
Current Assessed Value:
Estimated Project Cost:
0
0
9,000,000
40% 60%
100% 80%
Year1 Year2
55% 45% 37%
60% 40% 20%
Year 3 Year 4 Year 5
Current
Assessed Value: AV & Tax Pay 2011 Pav 2012 Pay 2013 Pav 2014 Pav 2015
Current Assessed Value 100% 0 0 0 0 0 0
Base Assessed Value 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
Prooerty 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)
Less Circuit Breaker Credit
Net Tax
Circuit Breaker Cap
Circuit Breaker
Debt Service
Circuit Braker Cap
0 0 47,771 87,579 107,484 117,834
0 0 0 0 0 (4,478)
0 0 47,771 87,579 107,484 113,356
3.0000% 0 108,000 162,000 148,500 121,500 99,900
0.5051% 0 0 5,455 10,001 " 12,274 13,456
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 actual assessed valuation and the then current tax rates.
1'
CITY OF SOUTH BEND PETITION FOR
TANGIBLE PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of new manufacturing equipment, personal property, located within
the City of South Bend, hereby petitions the Common Council of the City of South Bend for
personal property (new manufacturing equipment) tax abatement consideration and pursuant to
I.C., 6-1.1-12.1, et sea.• and South Bend Municipal Code Section 2-84.2, et sea•• for this petition
states the following:
1. Describe the proposed project, including information about the new manufacturing
equipment personal property (Aequipment@) to be installed, the amount of land to be
used, if any, the proposed use of the equipment, and a general statement as to the value of
the project to your business.
208,000 SF Distribution Center for Medical, Dental, and Veterinary supplies and products.
Racking and conveying equipment to be installed, along with server equipment, cabling, and
security equipment. Installation in existing building with total land size of 11.67 acres. The
distribution operations are critical to Patterson's business.
2. The project will create 50 new, 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 part-time jobs representing an annual payroll of $1.62 million. The projected
annual salaries for each new position created are estimated to be as follows: $20.880.00.
3. Estimate the total cost of the Equipment: $8,000,000 - 9,000,000
4. (a) The Equipment 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 persons lease, intend to lease, or have an option to buy this
Equipment (include corporate information as required in (4)(a) above, if applicable):
NAME ADDRESS INTEREST
N/A N/A N/A
5. Give a brief description of the overall nature of the business and of the operations
occurring at the location for which tax abatement is requested:
208,000 S.F. Distribution Center used to distribute medical, dental, and veterinary products.
6. The commonly known address of the property where the Equipment is to be located is:
7055 Cleveland Road, South Bend, IN 46628
7. The Key Number of said property is: 71-03-19-300-003-000-009 or 025-1011-018601
(Revised 8/2/02)
8. Attach the legal description of the property where the equipment is to be located, marked
AExhibit A,@ and is hereby incorporated herein.
9. Attach a map and/or plat describing the property where the equipment is to be located,
marked AExhibit B,@ and is hereby incorporated herein.
10. Attach photographs of the property, taken within 30 days of filing of this petition, marked
AExhibit C,@ and hereby incorporated herein.
11. The current assessed valuation of the tangible personal property to be replaced by the new
manufacturing equipment is: N/A
(This information may be obtained from the St. Joseph County Assessors office 235-9523)
12. The current use of the real property where the Equipment is to be installed is
Distribution Center and the current zoning is Limited Industrial (LI1(use) and
208.000 SF/32' high (height and area).
13. 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 Property 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;
14. Describe the commitment made within the past five years by your firm to hiring minority
individuals, including number of minorities employed during each of the past five years,
specifying whether full time or part-time and whether permanent or temporary employees.
The Petitioner shall also list the current number of total employees (full and part-time) and
the current number of minority individuals (full and part-time).
The total current number of employees is 60, of which 20 are minorities. In 2009, 24 minorities
were employed and in 2008, 25 minorities were employed; all were full-time.
15. Describe on-site child care or day care facilities, services or benefits currently offered or
proposed to be offered by the Petitioner for children of employees.
None
16. What is your best estimate of the market value of the new Equipment after installation?
$8,000,000 - $9,000,000
(Revised 8/2/02) 2
~•
17. What is your best estimate of the amount of taxes to be abated during each of the five
years after installation? (Based on $8,000,000 to $9,000,000 estimated value)
Year Amount
2011 $112,000.00 - $126,000.00
2012 $125,700.00 - $141,500.00
2013 $76,375.00 - $85,923.00
2014 $30,600.00 - $34,470.00
2015 $3,000.00 - $3,363.00
Total $347 600.00 - $391,256.00
18. What is the commitment your firm will make to minority employment during the five years
of tax abatement?
Patterson Companies fully supports affirmative action and hiring minorities. However, due to
the unknown nature of the availability of minorities, Patterson can not commit to
specific numbers of minorities hired. Patterson will continue to follow its affirmative action
plan.
19. The Equipment has not been installed as of the date of filing of this petition.
(The signature at the end of this Petition is verification of this statement)
20. The standard Industrial Classification Manual major group within which the proposed
project would be classified, by number and description:
5407-Retail Trade
21. 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
22. The real property where the Equipment will be installed is located in the following
Allocation Area, if any, declared and confirmed by the South Bend Redevelopment
Commission:
Airport Economic Development Area
23. 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; or other public
financial assistance, including but not limited to public works improvements.
N/A
24. Describe how and why the manufacturing equipment to be replaced or the facility in which
Equipment will be added is currently technologically, economically or energy obsolete and
how and why that obsolescence may lead to a decline in employment and tax revenues:
Facility has no equipment currently.
(Revised 8/2/02)
25. The new manufacturing equipment will be used in the direct production, manufacture,
fabrication, assembly, extraction, mining, processing, refining, or finishing of other
tangible personal property and that the equipment was never before used by its owner for
any purpose in Indiana. The signature at the end of this Petition is verification of this
statement.
26. 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
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 personal 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
By.
(Signed Name)
Lin I~Q~L. -+ ~ ~~ c~PC-~ ~ awe ~p V i ~~o e ~,D~
(Typed or printed name and capacity of signor if
signed by an agent or representative of the owner)
Note: Although this petition references manufacturing equipment, Patterson Companies
responses are in relation to distribution equipment.
(Revised 8/2/02)
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4 JGNN VOORDE
C1T`~ OL~rK, 50. BEND, iN.
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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