02-14-11 Common Council Meeting Minutes

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REGULAR MEETING FEBRUARY 14, 2011 Mr. Paul Phair, 227 South Main Street, Suite 300, South Bend, Indiana, made the presentation for this bill. Mr. Phair advised that Oliver Plow Partners, is in the process of purchasing 4.4 acres in the Oliver Plow Industrial Park from the South Bend Redevelopment Commission. Oliver Plow intends to construct a warehouse/distribution facility to accommodate a tenant, ABC Supply Company Incorporated. The building will have approximately 40,800 square feet. It will be a pre-engineered steel facility with a masonry wainscot or facade. The building will be of high quality and match the character of the surrounding industrial users near to the property. Mr. Phair advised that the estimated cost of the building is $1,750,000. Mr. Phair stated that ABC Supply Company is a distributor of exterior housing products. They are a primary supplier to the construction industry which will match the current uses found within Oliver Plow Industrial Park project. Mr. Phair noted that for this reason they are unable to answer the questions related to supplies of construction materials and construction contractors. They will submit this information to the Council prior to the consideration of the confirming resolution. Based on current information they have sufficient points for a four year term. If all points are awarded for construction they would have enough points for a seven year term. He stated that for purposes of the consideration of the Declaratory Resolution they have estimated an eight year term to allow for any extra adjustment. He noted that anything less will result in a reduction in the amount of tax revenue abated. He stated that if an eight year abatement is approved total taxes to be abated during that term are estimated at $192,799. Total taxes to be paid during the eight year term are estimated at $224,308. If the term remained at four years, total taxes to be abated are estimated at $109,044. total taxes to be paid over the four year term are estimated at $99,509. Per the petition it is estimated that the project will create two (2) new, permanent full-time positions with total wages estimated at $65,000. It will retain ten (10) existing permanent full-time positions and one (1) existing part time position, including two (2) existing permanent full-time minority employees, with a total annual payroll of$419,958. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the council either in favor of or in opposition to this Resolution, Councilmember Rouse made a motion to adopt this Resolution. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. RESOLUTION NO. 4082-11 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND RECONFIRMING AN ECONOMIC REVITALIZATION AREA DEDUCTION FOR MCCORMICK & COMPANY, INCORPORATED WHEREAS, on July 2, 2010, McCormick and Company, Incorporated filed an original Form SB-1 Statement of Benefits in connection with its application for personal property tax abatement on proposed new investments in a building addition and new manufacturing and logistical distribution equipment at its industrial location at 3425 West Lathrop Drive in South Bend; and WHEREAS, the Common Council of the City of South Bend approved that Statement of Benefits, as revised on January 4, 2011, and designated the area commonly known as 3425 West Lathrop Drive as an Economic Revitalization Area, all in accordance and as more particularly described in Resolution No. 4076-11; and WHEREAS, the Economic Revitalization Area continues in existence and will be designated as such under that Resolution until July 25, 2012; and 11