HomeMy WebLinkAboutReconfirming Tax Abatement - Stanz FoodService, Inc. (5yr.PP)RESOLUTION
4070-10
Passed by the Common Council of the City of South Bend, Indiana
December 13, 20 10
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
December 14,
20 10
Approved and signed by me 1.1~ ~ S~ 20~ .
City Clerk
'•°7~
RESOLUTION NO. ~ ~~ -~D
A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, TO BE AN ECONOMIC REVITALIZATION-AREA
FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX
ABATEMENT FOR
STANZ FOODSERVICE, INC.
DESIGNATING ADDITIONAL PROPERTY OWNERS AS FOLLOWS:
STANZ REALTY CO., LLP
And
STANZ CHEESE CO., 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, the Common Council of the City of South Bend, Indiana, adopted a
Confirmatory Resolution, No. 3896-08, confirming the designation that certain areas within the
City be an Economic Revitalization Area for the purpose of tax abatement consideration; and
WHEREAS, the petitioner subsequent to adoption of the Confirming Resolution
financed the intended personal property through two other operating entities: Stanz Realty Co.,
LLP (whose mailing address is P.O. Box 24, South Bend, IN 46624) and Stanz Cheese Co., Inc.
(whose mailing address is 1840 N. commerce Dr., South Bend, IN 46628); and
WHEREAS, Stanz Realty Co., LLP and Stanz Cheese Co., Inc. are doing business as
(dba) Stanz Foodservice, Inc.; and
WHEREAS, Stanz Foodservice, Inc., Stanz Realty Co., LLP and Stanz Cheese Co., Inc.
are wholly owned by the same three individuals; and
WHEREAS, the personal property acquired is the same as what was originally
contemplated in the original Statement of Benefits and tax abatement petition; and
WHEREAS, the goals and objectives originally set out in the petition remain the same
and the location of the personal property is the same as stated in the petition which is 1840 North
Commerce Drive, South Bend, Indiana; and
WHEREAS, due to accounting restrictions and tax laws Stanz Realty Co., LLP and Stanz
Cheese Co., Inc. must each and individually account for and pay property taxes on the personal
property they financed; 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 owners are qualified
for and are 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 sea.
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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TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
10-67 A RESOLUTION RECONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA,
TO BE AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY
TAX ABATEMENT FOR STANZ FOODSERVICE, INC.
DESIGNATING ADDITIONAL PROPERTY OWNERS AS
FOLLOWS: STANZ REALTY CO., LLP AND STANZ
CHEESE CO., 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
1200 COUNTY-CITY BUILDING
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 ~ ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
November 16, 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:
STANZ FOODSERVICE, INC.
Dear Council Member Rouse:
On August 25, 2008, through Confirming Resolution Number 3896-08, the Common Council
approved a personal property tax abatement for Stanz Foodservice, Incorporated. Stanz Foodservice
is located at 1840 North Commerce Drive. After the resolution was approved the company
completed the acquisition and installation of the equipment covered by the tax abatement. However,
ownership of the personal property was divided between two other entities: Stanz Realty Co., LLP
(mailing address: P.O. Box 24, South Bend, IN 46624) and Stanz Cheese Co, Inc. (mailing address:
1840 N Commerce Dr., South Bend, IN 46628). Those two entities financed the acquisition of the
equipment covered by the tax abatement. The two entities operate and do business as (dba) Stanz
Foodservice, Incorporated. Upon completion of the project the two entities submitted deduction
application forms (Form 103 -ERA) in their own names to the St. Joseph County Assessor's Office.
The Assessor's Office cannot process the forms because the Confirming Resolution is in the name of
Stanz Foodservice, Inc.
Stanz Realty Co., LLP and Stanz Cheese Co., Inc are doing business as Stanz Foodservice, Inc. All
three entities are owned by the same three individuals, Ms. Shirley Geraghty, Mr. Mark Harman, and
Mrs. Wendy Gilliam. Due to accounting restrictions Stanz Realty and Stanz Cheese must submit the
deduction applications for the personal property they actually financed and own. The kinds of
personal property acquired are the same as contemplated in the original Statement of Benefits (SB-1)
and the tax abatement petition. The property is located at 1840 North Commerce Drive as originally
called for in the petition. The goals and objectives originally set out in the petition remain the same.
Ownership of the three entities remains the same as when the original Confirming Resolution was
approved.
The Common Council is requested to adopt a Reconfirming Resolution to include Stanz Realty Co.,
LLP and Stanz Cheese Co, Inc. as entities eligible to receive the benefits under the above referenced
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM
PAAIELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZAeETH LEONARD
FAX: 5741235-9697 574/235-9371
South Bend Common Council
RE: Tax abatement for Stanz Foodservice, Inc.
November 16, 2010
Page 2
tax abatement. I have included a copy of the original staff report and petition for reference. The
petitioner has submitted a new Statement of Benefits form and a copy of that is attached. I have
consulted with the Council's attorney and the Assessor's Office to insure that there are no concerns
with the proposed Reconfirming Resolution and found none.
A representative of the Petitioner will be available to meet with the Committee on Monday,
December 13, 2010.
Should you or any of the other Council members have any questions concerning this 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
a~Af~ ~S'1 ~~~~i'~'~' "a/11771~
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DEC `'- 210
CITY CL t`^! b~0~ uF ;~, I"I.
1200 CGLiN'IY-~,ITY BUfLDNG
227 W JEFFERSON 130L'LEVAR[)
$OU'fli BEND, INDIANA 46601-1830
PrroNE 574/ 235-9371
F,ti~c 574/ 235-90Z 1
'I'DD 574/235-5567
CI'CY OF SOU"I'H BEND STEPHEN J. LUECI:E, MAYOR
COMMUNITY SL ECONOMIC DEVELOPMENT
-JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
July 10, 2008
Council Member Derek D. Dieter, 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:
Stanz Foodservice, Inc.
Dear Council Member Dieter:
Please find attached the Department of Community & Economic Development's report on a personal
property tax abatement petition for the above-referenced petitioner. Also attached is a copy of the petition,
Statement of Benefits form, and supporting information. The purposed project consists of the acquisition
and installation of new logistical distribution and information technology equipment, including without
limitation, warehouse racking systems, fork lifts, pallet movement mechanisms, GPS monitoring and
tracking systems and related systems for use in Stanz's full line food service distribution business. The
business is located at 1840 North Commerce Drive.
The report contains the Department's findings relative to the above petition. The entire cost for the proposed
project is estimated between $300,000 to $700,000 for logistical distribution equipment and between
$50,000 and $150,000 for information technology equipment. The project meets the qualifications fora (5)
five-year personal property tax abatement and a representative from Stanz Foodservice will be available to
meet with the Committee on Monday, July 28, 2008.
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
inn Tnkc
COMMUNCCY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL. 8C PROGRAM
Pr~MELA C. MEYFR l~oti:aLn E. INr, MANA<;GhIEN'I'
5?4/235-9660 i74l2g5-'1371 F.uz~BE~rt~ L.EO"lA2D
FAX: 574!335-9697 5?4/_'i5-9,171
1200 Col/Nn~-Cnv BUILDING
227 W. JEFFERSON BOULEIARD
$OUTIi BEND, INDIANA 46601-1830
PHONE 574/ 235-9371
FAx 574/ 235-9021
TDD 574/ 235-5567
CII~' ()F SnUTIi BEND STEPFIEN J. I.CIEC;KE, ;VI,aV().t
COMMUNITY HL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: .SOUTH BEND COMMON COUNCIL
FROM: BOB MATHIA
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
STANZ FOODSERVICE, INC.
DATE: July 10, 2008
On July 8, 2008, a petition for personal property tax abatement consideration for property located at 1840
North Commerce Drive was filed with the City Clerk by Stanz Foodservice, Incorporated. Pursuant to
Chapter 2, Article 6, Section 2-84.2 of the Municipal Code of the City of South Bend, this petition was
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-I.I-12.1 and whether all zoning requirements have been met.
The Department of Community and Economic Development has reviewed the petition (a copy of which is
attached), investigated the area, and makes the following report.
PROJECT SUMMARY
Stanz Foodservice is a full-line, food service distribution business. Stanz uses its warehouse and
distribution facility to store dry, refrigerated, and frozen goods to facilitate the transfer and delivery of
such goods to customers throughout Northern Indiana and Southern Michigan. The purposed project
consists of the acquisition and installation of new logistical distribution and information technology
equipment, including without limitation, warehouse racking systems, fork lifts, pallet movement
mechanisms, GPS monitoring and tracking systems and related systems for use in Stanz's full line food
service distribution business. This equipment will complement Stanz's investment in real estate
improvements and its commitment to growing its distribution headquarters and business in south Bend.
The entire cost for the proposed project is estimated between $300;000 to $700,000 for logistical
distribution equipment and between $50,000 and $ 150,000 for information technology equipment.
COMMUNFPY DEVELOPMENT ECONOMIC DLVELOPMEAI"C FINANCIAL SC PROG>UaM
PT~b1ELA (... ~4 E1'62 UON,ILD G. lutie l~'I A.NAC EM ENT
574/215-9000 574/235-93'1 ELIZ~(I+er~i LEC~~~Rn
Pns: 574/231-9697 574/235-9.3'71
South Bend Common Council
RE: Tax Abatement for Stanz Foodservice, Incorporated
July 10, 2008
Page 2
Total taxes to be abated during the (5) five-year abatement period are estimated at $ (~i tl9 *. Total taxes
to be paid during the (5) five-year abatement period are estimated at $i~dJ~z~ *.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project, by itself, will not create additional full-time and part-time
permanent jobs within the first year of the project, but will enable Stanz to maintain 162 existing
permanent full-time jobs and 9 existing permanent part-time jobs with an annual payroll of $7,251,439,
including existing permanent full-time minority employment of 12 positions.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has been granted or
associated with two (2) previous tax abatements and has one pending from last year.
Term/Type Resolution No. Date
7-year real property pending
5-year real property 3463-OS 5/23/2005
5-year real property 1301-85 6/24/1985
2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned
for the proposed project.
3. A review of the South Bend Redevelopment designation areas finds that the property is located in
the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore,
the petition for personal property tax deduction must first be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications fora (5) five-year personal property tax abatement under Section 2-84.2, Tangible
Personal Property Tax Abatement.
*All of the information required to calculate the estimated amount of taxes to be abated and paid was not
available in time to meet the deadline for submitting this report. The estimates will be provided at the
Community and Economic Development Committee meeting on July 28, 2008.
* * This petition was approved by the Redevelopment Commission by Resolution No. 2327 on Apri120,
2007. The Declaratory Resolution (No. 3740-07) was approved by the Common Councill 23,
2007.
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