HomeMy WebLinkAbout4772-19 Molding Products Designating Personal Property Tax Abatement RESOLUTION
No. 4772-19
Passed by the Common Council of the City of South Bend, Indiana
April 8, 20 19
41
Attest: z?/, --, 4 ���� City Clerk
Ka a mah N. Fowler
Attest President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
April 8, 19
20 .
City Clerk
Kareemah N. Fowler
Approved and signed by me 1"1 t 1 1 20 I .
Mayor
_ 2ec f
United States of America
Certificate
STATE OF INDIANA, COUNTY OF ST JOSEPH, ss:
I, Kareemah N. Fowler, Clerk of the City of South Bend, County of St. Joseph, Indiana, hereby
certify that the attached and foregoing is a full, true, and correct copy of
RESOLUTION 4772-19
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH
BEND,INDIANA,COMMONLY KNOWN AS 1545 S.OLIVE STREET,SOUTH
BEND,IN 46619 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES
OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
MOLDING PLASTICS, LLC
ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, APRIL 8, 2019.
PRESENTED TO, APPROVED AND SIGNED BY MAYOR PETE BUTTIGIEG,
APRIL 9,2019.
ATTEST: TIM SCOTT, PRESIDENT OF THE COMMON COUNCIL
ATTEST: KAREEMAH N. FOWLER, CITY CLERK
FILED R REC12,t, - D-
NM 17 2019 s NAY 7 /?019
:�Qi-OR T J`ascp Cr_
JOSEPH COUNTYASSErS�;;Urvey, 1
ST `-J
the original of which is now on file in the office of the Clerk of the City of South Bend, St. Joseph
County, Indiana.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal f the City
of South Bend, St. Joseph County, Indiana, this 1U day of 20 VI
Kareemah N. Fowler
Clerk of the City of South Bend
St. Joseph County, Indiana
By: it#4-4- "1-r 417.414-4-A---
Kareemah
7.4' —
Kareemah N. Fowler
BILL NO. 19-18
RESOLUTION NO. 4772-19
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN
THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS
1545 S. Olive Street, South Bend, IN 46619
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
(5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
Molding Plastics, LLC
WHEREAS,a petition for personal property tax abatement consideration has been filed with
the City Clerk for consideration by the Common Council of the City of South Bend, Indiana,
requesting that the area commonly known as 1545 S. Olive Street,South Bend,Indiana,and which is
more particularly described as follows:
Business Personal Property
and which has Key Numbers to be assigned and be designated as an Economic Revitalization Area
under the provisions of Indiana Code 6-1.1-12.1 et seq.,and South Bend Municipal Code Sections 2-
76 et seq., and;
WHEREAS,the Department of Community Investment has concluded an investigation and
prepared a report with information sufficient for the Common Council to determine that the area
qualifies as an Economic Revitalization Area under Indiana Code 6-1.1-12.1,et seq.,and South Bend
Municipal Code Sections 2-76, et seq., and has further prepared maps and plats showing the
boundaries and such other information regarding the area in question as required by law; and
WHEREAS,the Community Investment Committee of the Common Council has reviewed
said report and recommended to the Common Council that the area qualifies as an Economic
Revitalization Area.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds pursuant to Indiana Code 6-1.1-
12.1-4.5 et seq., that:
a. The estimate of the cost of the new manufacturing equipment is reasonable for
equipment of that type;
b. That the estimate of the number of individuals that will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result
from the proposed installation of new manufacturing equipment;
c. That the estimate of the annual salaries of those individuals that will be employed or
whose employment will be retained by the Petitioner can be reasonably expected to
result from the proposed installation of new manufacturing equipment;
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 industrial
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 Investment, and the Community Investment 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 three(3)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 as shown by the schedule outlined
below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17.
Year 1 - 100%
Year 2 - 95%
Year 3 - 85%
Year 4 - 75%
Year 5 - 65%
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.
Tim Scott, Counci 'r- '•ent
South Bend Common Council
PRESENTS c('t,-0, a o c 9
NO_T. APPROila
TOOPTEES '`y Olt - pc2--61q 2
Filed in Clerk's Office
•
APR o 3 2019
•iALL KAREEIVIAH FOWLER
CITY CLERK,SOUTH BEND, IN
CITY OF SOUTH BEND
COMMUNITY INVESTVE\T
Council Member Gavin Ferlic, Chairperson April 3, 2019
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for: Molding Products,LLC
Dear Council Member Ferlic:
Please find attached the Department of Community Investment'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 acquisition and installation of new
equipment as part of the company's planned increase additional mixing capacity and upgrade the storage
vessels for raw materials.The company is located on 1545 S. Olive Street, South Bend.
The report contains the Department's findings relative to the above petition. Molding Plastics will be
purchasing and installing new equipment with an estimated cost of$5,000,000. The project meets the
qualifications for a (5) five-year personal property tax abatement and a representative from Molding
Products will be available to meet with the Committee on Monday,April 8th, 2019.
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 235-95823.
Sincerely,
Dan 1 Buckenmeyer
Director Economic Resources&Business Development
DANIELJ.BUCKENMEYER ALKEVNA ALDRIDGE PAMELA MEYER TDM CORCORAN
BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COM aur.w Y RESOURCES
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
1400S County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov
Filed in Clerk's Office
TAX ABATEMENT REPOR APR 0 3 2019
KAREEMAH FOWWLER
CITY CLERK,SOUTH i BEND,!N
TO: South Bend Common Council
FROM: Angelina Billo
SUBJECT: Personal Property Tax Abatement Petition For: Molding Products,LLC
DATE: April 1, 2019
On April 1,2019 a petition for personal property tax abatement consideration for property located at 1545
S.Olive Street,South Bend,was filed with the City Clerk by Molding Products,LLC.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
• Molding Products produces Thermoset Composite Sheet Molding Compound (SMC) that is
molded by their customers into end-use products ranging from bathtubs to Corvette outer body
panels.The process requires various powders and liquid resins to be blended according to precise
recipes. The current business is limited by capacity of the mixing system. This project will add
additional mixing capacity and upgrade the storage vessels for raw materials. The company has
already spent more than$5mm building an addition to their existing facility and is seeking City
support to assist with rising project costs and keep the project viable for the community.
• Total estimated cost of capital equipment is approximately $5,000,000. The equipment will
include tanks,mixers,pumps,mixer blades and folk lifts.
• Petitioner is qualified for a five-year personal property tax abatement.
• Total taxes phased-in during a (5) five-year abatement period are estimated at $52,331. New
project taxes will be $342,169. Total taxes to be paid over five years on the new and existing
equipment are estimated at$687,630.Note that increased tax revenue will also be generated by the
present real property improvements.
EMPLOYMENT IMPACT
Per this petition, the company will retain forty-five (45) full-time jobs with an annual payroll of
$1,684,800. It is estimated that the business will create twenty(20) new,permanent full-time positions
and zero(0)part-time positions with an annual payroll of$748,800 within the next four years.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner, Molding Products,
LLC has not been granted or associated with any previous abatement.
2. The Area Plan Commissioner has reviewed the petition and finds the property to be properly zoned
for the proposed project.
3. The Building Commissioner has reviewed the petition and finds no building permit was issued.
4. A review of the South Bend Redevelopment designation areas finds that the property is located in
the River West Development Area.
5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications for a(5)five-year personal property tax abatement under section 2-84.2,Tangible
Personal Property Tax Abatement.
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