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HomeMy WebLinkAboutConfirming Tax Abatement - Hoosier Tank 1710 North Sheridan St. (5 Yr. Personal Property) RESOLUTIOiV 4106-11 Passed by the Common Council of the City of South Bend, Indiana May 23, 11 Zo Attest: City Clerk Attest� President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 24, 20 11 .� City Clerk Approved and signed by me May 2 5 20 11 �� � ��� � ! � �i t RESOLUTION NO. `� ���� A RESOLUTION CONFIRMING THE ADOPTION OF A � DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OFSOUTH BEND, INDIANA, COMMONLY KNOWN AS 1710 NORTH SHERIDAN STREET TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR HOOSIER TANK AND MANUFACTURING, INCORPORATED 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 1710 North Sheridan Street, South Bend, Indiana, and which is more particularly ' described as follows: � Parcel of land beginning approximately 889.84 feet south and 40 feet east of NW '/a SE '/4 and known as Gibbs Wire and Steel Company, Inc.minor sub section 33-38-2E cont appx AC and which has Tax Key Numbers 18-2184-693803 (Real Property) and 018-07522-00 (Personal Property)presently, 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: ,� � � t ' SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of t� 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 se�. SECTION III. This Resolution shall be in full force and effect from and a8er its adoption by the Common Council and approved by the Mayor. Member of the Common Council . Filed Er� Ci�rk'S ���� ,. �.�.,.,"--,� S_�3-�� M�1� ~° � �� �i PF:ESfP�?i:i) � r . N�JT. .�4p�'i:pV�� JO�@Fd Vt3�fit[�,� ' �ao��fQ s—Z3`�� cinct���tc,s�t�rr���o�a,t►� ' �S�U T�8�� o ���li'ii���//�� O i2OO COUN'1'Y-CITY BUILDING .�., ����� /��a PxoNa 574/235-9371 U ���� a��� �i ►. Far 574/235-9021 22�]W.JEFFERSON BOULEVARD W �� P�ACE�j y SOUTH BEND,Irrour�a 46601-1830 '�� M\� ���'�`��'''aZ � TDD 574/235-5567 1865 CITY OF SOUTH BEND STEPHEN J. LUECKE,MAYOR COMMUI�TITY S� ECONOMIC DEUELOPMENT ,JEFFREY V. GIBNEY April 18� 2�1 1 �ECUTIVE DIRECTOR 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: HOOSIER TANK AND MANUFACTURING, INCORPORATED Dear Council Member Rouse: 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 project calls for the for the construction of an addition to their existing building and the purchase of equipment to set up a new production line all to be located at 1710 North Sheridan Street. The report contains the Department's findings relative to the above petition. The Petitioner,Hoosier Tank and Manufacturing,Incorporated,proposes to construct a 70 X 290 foot addition to their existing building and install equipment for a new production line. The total cost for the equipment is estimated at$1,175,000. The project meets the qualifications for a five-year personal property tax abatement. A representative ofthe Petitioner will be available to meet with the Committee on Monday, May 9, 2011. 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, �d� � / t�ln �`J� .-�'„�'L/ Bob Mathia Assistant Director, Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL LC PROGRAM PA�IELA C.MEYER DONALD E.INKS MANAGEMENT 574/235-9660 574/235-9371 EtivaeTH LaoN,�xxD Fax: 574/235-9697 574/235-9371 �SpU TN��, O �\��1�il���l�/��O IZOO COUNTY-CITY BUILDING .��. ��\ I /�� a PxoNE 574/235-9371 ZZ7 W.JEFFERSON BOULEVARD W���P�ACE/�'% a Fwc 574/235-9021 SOiSI"HBEND>Irr��n 46601-1830 �� \� ���%�'a2� � TDD574/235-5567 r- � � 1865 CITY OF SOUTH BEND STEPHEN J. LUECKE,MAYOR COMMUNITY SL ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABA TEMENT REPOR T TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: HOOSIER TANK AND MANUFACTURING, INCORPORATED DATE: April 18, 2011 On April 18,2011, a petition for personal property tax abatement consideration for property located at 1710 North Sheridan Street was filed with the City Clerk by Hoosier Tank and Manufacturing, Incorporated. Pursuant to Chapter 2,Article 6,Section 2-82 of the Municipal Code of the City of South Bend, this petition was refened 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 petition,investigated the area, and makes the following report. PROJECT SUMMARY Hoosier Tank and Manufacturing, Inc. is a manufacturer of air pressure reservoirs for OEM truck and trailer manufactures domestically and internationally. They perform metal forming, welding and painting operations required for the manufacture of air pressure reservoirs. The Petitioner is proposing to: (a) construct a 70 X 290 foot addition (total additional area is 20,300 sq. ft.) to their existing building; and(b)install equipment for a new production line. The addition will provide new shipping docks with a turnaround access for six semitrailers, new warehouse space and a shipping area to accommodate their customers' shipping needs.The addition will free up manufacturing floor space and allow the company to add machinery for a complete third production line which will increase their production capacity by 25 percent. The equipment for the production line includes a dust collector,air make up vent, new diameter tooling, leveler for shear, laser cutter, roller, leak detection system, progressive strap bracket die,forklift,washer,assembler,and an automated powder spray paint system. The estimated cost of the equipment is $1,175,000. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM PATIELA C.MEYEA DONALD E.INKS MANAGEMENT 574/235-9660 574/235-9371 EL�znsErH LEONAAD Fnx: 574/235-9697 574/235-9371 South Bend Common Council RE: Tax Abatement for Hoosier Tank and Manufacturing, Inc. April 18, 2011 Page 2 As part of the total project, the Petitioner is submitting a request for a seven-year real property tax abatement for the addition to be constructed for their building. The project's total cost is estimated at $1,935,000. The project will move the company's truck dock to a better location that will eliminate a major traffic obstruction due to trucks using the street for turning and backing up to the current dock for deliveries. This is something the City has been working with Hoosier Tank to alleviate for approximately two years. Total taxes to be abated during the (5) five-year abatement period are estimated at $15,607. Total additional taxes to be paid as a result of the project during the five-year abatement period are estimated at $82,001. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create fifteen (15) new, permanent full-time positions with an annual payroll $600,000. The project will also maintain seventy-two (72) existing permanent full-time positions, including 22 existing permanent full-time minority employees, with a total annual payroll of$3,000,000. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted the following previous abatements: Term/Type Resolution No. Date 5 year personal property 2013-93 2/22/1993 5 year personal property 3213-03 7/28/2003 10 year real property 3234-03 8/25/2003 5 year personal property 3843-OS (Reconfirm & Inc.) 6/27/2005 5 year personal property 4008-10 1/11/2010 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 Area,which is a Tax Incremental Allocation Area;therefore,the petition for real property tax deduction must first be approved by the South Bend Redevelopment Commission. 4. 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Sheridan St. • South Bend, IN 46628 • (574) 232-8368 • (574) 233-7189 (FAX) Mr. Robert Mathia Assistant Director Economic Development City of South Bend 227 West Jefferson, 12th floor South Bend, IN 46601 Dear Bob, Please find the enclosed petitions for both real and personal property abatement for our proposed addition and new machinery. We are very excited about this new project and look forward to working with you. Let me know if you have any questions. Sincerely, �� � c�� Sue A Kinnucan Controller CITY OF SOUTH BEND PETITION FOR TANGIBLE PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION The undersigned owner(s) of new manufacturing equipment, perso�al 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 seq•, and South Bend Municipal Code Section 2-84.2, et seq•, for this petition states the following: 1. Describe the proposed project, including information about the new manufacturing equipment personal property (Aequipmentc�) 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. 70' X 290' buildinq addition with new shi�pin�docks with turn around access for six semitrailers. Addition will mainly be warehouse and shipping to accommodate_ our customers' packaqinq needs. Addition will free up manufacturinq floor space� allowinq us to add machinery for a complete third line. This will increase our production capacit by v 25 2. The project will create 15 new, permanent jobs within the first year, representing a new annual payroll of $ 600,000 and will maintain 72 existing permanent full-time and 0 existing part-time jobs representing an annual payroll of$ 3,000,000 . The projected annual salaries for each new position created are estimated to be as follows: 12 production workers = $35,000 __ 2 maintenance technicians = 45,000 1 maintenance supervisor= $55,000 3. Estimate the total cost of the Equipment: $1,175,000 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 Hoosier Tank 1710 N. Sheridan, South Bend, IN 46628 100% (Revised 8/2/02) 1 (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 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: Manufacturer of air pressure reservoirs for OEM truck and trailer manufacturers domestically and internationall� We perform metal formin wg eldin�nd paintin� operations. 6. The commonly known address of the property where the Equipment is to be located is: 1710 N. Sheridan South Bend, IN 46628 7. The Key Number of said property is: 018-07522-00 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 descri6ing 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,c� and hereby incorporated herein. 11. The current assessed valuation of the tangible personal property to be replaced by the new manufacturing equipment is $ 0 (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 manufacturin� and the current zoning is L-1 (use) and A (height and area). (This information may be obtained from the Building Department 235-9553) (Revised 8/2/02) 2 13. List the real and personal property taxes paid at the location during the previous �ve years, whether paid by the current owner or a previous owner: YEAR REAL PROPERTY TAXES PERSONAL PROPERTY TAXES 2005 pd 2006 $45,544.98 $16,643.04 2006 pd 2007 $44,173.67 $15,689.92 2007 pd 2008 $51,799.17 $5,373.50 2008 pd 2009 $49,878.98 $18,491.67 2009 pd 20101 $44,454.30 $24,338.82 (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). 2010 72 Total 22 Min 30% 2009 52 12 23% 2008 46 10 26% 2007 69 18 26% 2006 84 28 33% 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? $1,175,000 17. What is your best estimate of the amount of taxes to be abated during each of the five years after installation? $ 11,300 18. What is the commitment your firm will make to minority employment during the five years of tax abatement? Our historv of minori hirin� has been �ood and we fully intend to continue this commitment to our community. (Revised 8/2/02) 3 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 classi�ed, by number and description: SIC #3443 manufacturer of air pressure tanks 21. The Internal Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description: #3440 fabricated structural metal products 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: Hoosier Tank is located in the 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. Old National Bank and the SBA 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: Hoosier Tank is not proposin� to replace an�quipment. The additional equipment will be used to increase our production and quality for continued growth. 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. (Revised 8/2/02) 4 26. The following person(s) should be contacted as Petitioner=s agent regarding additio�al information and public heari�g notifications: Name: Sue Kinnucan Address: 1710 N. Sheridan City, State, Zip Code: South Bend, IN 46628 Telephone: 574-232-8368 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): Hoosier Tank and Manufacturin� Incorporated By: ,�✓� ,.-'. tSigned Name) Thomas R. Kinnucan Jr., President (Typed or printed name and capacity of signor if signed by an agent or representative of the owner) ��...�...... � Filed ir� �[��k,.,� �,., ""--� , w-�.�,.�, �����;� `�.�-- I FJ`J 'r �1 !',m ,� � ; r tr �..;�1 (Revised 8/2/02) 5 JOHt������`�;- C�CLERK,SCrU7f���p�,,t�' 1 _r Exhibit A Legal Description Par of �and beg appx 889.84' So. & 40' East of NW % SE % and known as Gibbs Wire & Steel Company; Inc. minor sub sec 33-38-2E cont appx AC -..r---�--�------ ����d in Cl�rl�'°�� �4�� a,�. : ��, � ,. r, � - �,� � p:� �� i�; �,�� 1'�� �i ,_._, .M.�...a� � Jf.dEi������ CITY CL�I�Y'..,��U'i'���"��.�"�„ Exhibit A Legal Description Par of Iand beg appx 889.84' So. & 40' East of NW % SE '/ and known as Gibbs Wire & Steel Company, Inc. minor sub sec 33-38-2E cont appx AC ,_,,.M,..__ ����d in Ct�rl�'�`� �;� at�� : ,,,,,,,_.,.,,.....,a.,,.��",.,...�.,.� 3 ��..� ; �, �..,. - i � � i.y , � ` IT�� ,� , `, .�� t ......r.,,.�---.M--� � Ji.lEi3� ��o��i�.'`�� CtTY CLE�Y�,��tt"Y���.t�s,"3.�.� 1710 North Sheridan Street, South Bend, Indiana- Google Maps Page 1 of 1 1 Address 1710 N Sheridan St Get Googie Maps on your phone �j�'�7� � maps South Bend, IN 46628 -. 7exttheword"GMAPS"to466453 �� � m ' x Lath�o 2 � tstnrcp St' LathroF�2 _. 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