Confirming Tax Abatement - Lock Joint Tube, LLC 1217 S. Walnut Street (5 Yr. Personal Property)

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I200 COUNTY -CITY BUILDING 22.7 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 466oi -1830 PHONE 574123 5 -9371 FAX 5741235 -9021 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION AND REAL PROPERTY TAX ABATEMENT PETITION FOR: LOCK JOINT TUBE, LLC, 1215 SOUTH WALNUT STREET DATE: March 29, 2012 On March 29, 2012, petitions for personal property tax abatement and real property tax abatement consideration for property located at 1217 South Walnut Street were filed with the City Clerk by Attorney Richard Deahl, agent for Lock Joint Tube, LLC. Pursuant to Chapter 2, Article 6, Section 2 -77 of the Municipal Code of the City of South Bend, these petitions were 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 petitions (copies of which are attached), investigated the area, and makes the following combined report. PROJECT SUMMARY The company will invest between $8.0 and $9.0 million in the purchase and installation ofnew manufactu- ring, information technology, and logistical distribution equipment to expand its production capabilities at its Walnut Street facility. This equipment will increase the length, wall thickness, and width of steel tubing that can be manufactured as well as enhance the coating, weld capabilities, and overall quality control standards for production of finished goods. These increased capabilities will expand the types of products the Petitioner can manufacture and will expand its existing markets, plus open new markets such as automotive axles, roll -over production systems and other heavy structural applications. Total taxes abated during the five -year abatement period range from $353,006 to $397,132, depending upon the final amount the company will invest in the new equipment. Additionally, Lock Joint Tube is located in the Urban Enterprise Zone and may qualify for the Enterprise Zone Inv&fti #kdfteti,@mNThis is a 10 -year deduction which covers F09ftff 'VffjbNselE "V2ilue from new PAMELA C. MEYER DONALD E. INKS 574/235-966o 574/235-9371 FAX: 574/235-9469