02-28-11 Common Council Meeting Minutes

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REGULAR MEETING FEBRUARY 28, 2011 d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION II. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6-1.1-12.1-4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community and Economic Development, and the Community and Economic Development Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of(5) five years. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5-3-1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Henry Davis, Jr., Vice-Chairperson, Community & Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Steve Crowley, 760 McArdle Drive, Crystal Lake, Illinois, made the presentation for this bill. He advised that Global Parts Network is proposing to set up a new manufacturing/distribution facility that will manufacture/distribute brake shoes and other parts for the heavy duty truck market. The project will acquire several pieces of equipment including a press, press washer, blasters, paint line, packaging machines, forklifts, riveters and deriverters as well as computer hardware and peripheral equipment. The Petitioner plans to lease a portion of the Huron building managed by Holladay Properties to house the new facility. The company is considering the South Bend location was well as sites in Illinois and Kentucky. He stated that the estimated cost of the project is $2,075,000. Total taxes to be abated during the five (5) year abatement period are estimated at $90,250. Total taxes to be paid during the five (5) year abatement period are estimated at $82,121. It is estimated that the total project will create twenty- two (22) new, permanent, full-time jobs in the first year of the production representing a new annual payroll of approximately $565,000. He estimated that there will be a total of 30 permanent full time jobs by the end of the fourth year of the project. He noted that because the project is new there are no existing jobs. A Public Hearing was held on the Resolution at this time. 10