19-10 SWGS Properties, LLC Confirming Real Property Tax Abatement

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an C¢C ia.. TAX ABATEMENT REPORT JAN 23 2019 TO: South Bend Common Council 1 � ; FROM: Daniel Buckenmeyer,Director of Business Develo en Cir SUBJECT: VACANT, REAL & PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: SWGS Properties, LLC DATE: January 23, 2019 On Monday, January 14, 2019, a petition from SWGS Properties, LLC was received and subsequently filed with the City Clerk for vacant,real and personal property tax abatements consideration for property located at 2920 W Sample Street, South Bend, IN 46619. Pursuant to Chapter 2,Article 6, Section 2-84.2 of the Municipal Code of the City of South Bend,this petition was referred to the Department of Community Investment 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 Investment has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY > Building purchase price of$765,000 with an additional$500,000 in planned private investment for building upgrades to operate a manufacturing and distribution facility including modern roof, flooring, and loading docks. > There are two parcels including a vacant building and land that have not been utilized for close to 5 years. Currently, the building has leaks and requires immediate repairs and renovation. > Additional private investment in personal property/capital equipment with purchase price of$700,000.The industrial equipment is for forming hot and cold rolled metal products. > Estimated taxes phase-in and paid: Property Estimated Total Taxes Est.Taxes Phase-lo Est.Taxes Paid Vacant—6Y $125,569 $104,096 $21,473 Renovation-6Y $82,952 $68,767 $14,185 Equipment—5Y $60,437 $40,119 $20,318 Total: $268,958 $212,982 $55,976