Confirming Tax Abatement - 1215 S. Walnut St. - Lock Joint Tube, LLC

Home Browse Search

1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BO[,'LEVARD 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 SHARON T. KENDALL EXECUTIVE DIRECTOR TAX ABATEMENT REPORT To FROM: SOUTH BEND COMMON COUNCII. SHARON TERRELL~ SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: LOCK JOINT TUBE, LLC,1215 SOUTH WALNUT STREET DATE: July 14, 2006 On June 15, 2006, a petition for personal property tax abatement consideration for property located at 1215 South Walnut Street was filed with the City Clerk South Bend Chocolate Company. Pursuant to Chapter 2, Article 6, Section 2-77 of the Municipal Code of the City of South Bend, this petition vas 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 petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY The project consists of the acquisition and installation of new machinery and equipment including, without limitation, milling and fabricating equipment for use in Lock Joint Tube's Walnut Street facility. The equipment will increase the efficiency and accuracy of precision milling and fabrication, as well as reduce scrap steel in the company's operation. Investment in this new equipment will support the company's ability to cut and fabricate heavier gauge steel with more precision, thereby enhancing the company's position with a competitive market. The projected cost for the equipment is estimated between $2.2 and $3.2 million. Total taxes abated during the five-year abatement period range from $134,451 to $195,565, depending upon the final amount the company will invest in the new equipment. Additionally, Lock Joint Tube is undecided, at this point in time, as to whether or not they will file using the Urban Enterprise Zone designation, which carries an abatement period of (10) ten years. Should the company elect to pursue the UEZ designation, the Tax Abatement designation will become null and void. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELizAaeTH LEONARD FAX: 5741235-9697 574/235-9371