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HomeMy WebLinkAbout4776-19 Hopkins Properties Designating Real Property Tax Abatement RESOLUTION No. 4776-19 Passed by the Common Council of the City of South Bend, Indiana April 8, 20 19 . Attest: City Clerk Kar-emah N. F r Attest- — President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 8, 19 20 . ltd City Clerk K reemah N. Fowler Approved and signed by me PTl 1 20 k9 Maya foe, C.e - United States of America ***:****::::* 20RECEIVED- pic L 6 2 0`1APR 26 2019 1i...,c, ST.JOSEPH COUNTY • ASSESSOR 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 4776-19 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 4373 AMERITECH DRIVE, SOUTH BEND, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SEVEN (7) YEAR REAL PROPERTY TAX ABATEMENT FOR HOPKINS PROPERTIES OF SOUTH BEND, 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 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 s,tt my hand and affixed the official Seal of the City of South Bend, St. Joseph County, Indiana, this J� day of Pr,t 20±9____ Kareemah N. Fowler Clerk of the City of South Bend St. Joseph County, Indiana By: Kareemah N. Fowler BILL NO. 19-22 RESOLUTION NO. 4776-19 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 4373 Ameritech Drive, South Bend, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SEVEN (7) YEAR REAL PROPERTY TAX ABATEMENT FOR Hopkins Properties of South Bend, LLC WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana requesting that the area located at 4373 Ameritech Drive, South Bend, IN. which is more particularly described as: PARCEL I: Lot Numbered Four (4) in "Park One Northwest", as per plat thereof filed in the Office of the Recorder of St. Joseph County, Indiana, on August 1, 1985, as Instrument No. 8515748. PARCEL II: Lot Numbered One (1) as shown on the recorded Plat of U.S. 31 Business Centre Phase 1, recorded January 9, 2004 as Document No. 0401210 in the Office of the Recorder of Saint Joseph County, Indiana. PARCEL III: Lot Numbered Three A (3A) as shown on the recorded Plat of Park One Northwest First Replat, recorded April 4, 2003 as Document No. 0320042 in the Office of the Recorder of Saint Joseph County, Indiana, excepting therefrom any portion lying within the recorded Plat of U.S. 31 Business Centre Phase I recorded January 9, 2004 as Document No. 0401210. PARCEL IV: A tract of land in the West Half of the Northeast Quarter of Section 19, Township 38 North, Range 2 East, German Township, St. Joseph County, Indiana, more particularly described as follows: Commencing at the Northeast corner of said West Half of the Northeast Quarter of Section 19, Township 38 North, Range 2 East; thence South 00°48'00"East along the East line thereof 959.78 feet, said point being the true place of beginning; thence continuing South 00°48'00"East along said East line 1307.86 feet to the North line of the Indiana East-West Toll Road; thence South 89°42'57" West along said North line 324.04 feet to the East line of the South Bend Bypass; thence North 02°49'50" West along said East line 329.96 feet to an angle point in said East line; thence North 00°17'00" West along said East line 978.17 feet; thence North 89°42'57"East 326.91 feet to the place of beginning. and which has Key Numbers 025-1017-060806, 025-1017-060807, 025-1017-060809, and 025- 1017-060816 to 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,petitioner has agreed to and has accepted responsibility to report any changes in the final legal description and to report the final, appropriate Key Number to the Department of Community Investment and to the Office of the City Clerk; 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 that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation;and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the 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 § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to three (3) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of seven (7) 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% Year2 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6 - 75% Year 7—70% SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. 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, Counc 'rests South Bend Common Council PRESENTED SOS APPROVEi Filed in Clerk's Office APR � 3 2019 • - - 186 KAREEMAH FOWLER CITY CLERK,SOUTH BEND,IN CITY OF SOUTH BEND- COMMUN ITY INVESTMENT } 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: Real Property Tax Abatement Petition for: Hopkins Properties of South Bend, LLC (an affiliate of Truck Centers, Inc.) Dear Council Member Ferlic: Please find attached the Department of Community Investment's report on a real property tax abatement petition for the above-referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. Hopkins Properties of South Bend is proposing to invest in excess $16,000,000 in the acquisition and construction of a new dealership facility to support Truck Centers' strategic growth plan and the enhance its ability to serve customers. The proposed project address is 4373 Ameritech Drive, South Bend, IN. The report contains the Department's findings relative to the above petition. The project meets the qualifications for a(7)seven-year real property tax abatement and a representative from Hopkins Properties and Truck Centers will be available to meet with the Committee on Monday, April 8,2019. 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 235-5823. Sinc rely, Daniel Buckenmeyer Director Economic Resources&Business Development DANIEL J.BUCKI NM EYER ALKEYNA ALDRIDGE PAMELA MEYER TIM CORCORAN BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPNIE_rr PLANNING&COMMUNITY 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 APR v 3 2019 II!! TAX ABATEMENT REPORTKAr�C f 11 H i v w LER CITY CLERK,SOUTH!BEND.,,IN 1 TO: South Bend Common Council FROM: Angelina Billo SUBJECT: Real Property Tax Abatement Petition For: Hopkins Properties of South Bend,LLC (an affiliate of Truck Centers,Inc.) DATE: April 1,2019 On March 27,2019, a petition for real property tax abatement consideration for property located at 4373 Ameritech Drive, South Bend, IN was filed with the City Clerk by Hopkins Properties of South Bend, 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,investigated the area,and makes the following report. PROJECT SUMMARY • Hopkins Properties of South Bend,LLC(an affiliate of Truck Centers,Inc.("TCI")is proposing to invest more than$16,000,000 in the acquisition and construction of approximately 100,000 sq.ft. dealership facility to support Truck Centers' strategic growth plan and to enhance its ability to serve customers. • The new facility would allow Truck Centers to offer a premier service center in Northern Indiana and increase its support for the on-highway and vocational truck markets as well as providing additional support for the RV manufacturing industry. • Total project cost including new machinery and equipment is approximately$18,000,000. • Petitioner is qualified for a seven-year real property tax abatement. • The estimated amount of taxes phased-in for the seven-year abatement is$1,945,291. Estimated paid taxes paid for the seven-year term are $788,279. Current annual taxes for vacant land are under$7,000. Truck Centers,Inc.,based in Troy,IL and established in 1970,is a family-owned dealer group providing a full array of products and service to the heavy truck industry including truck sales,parts, service, body shop and training.Its network now consists of ten full-service dealerships and two satellite locations in the St. Louis metro area,Illinois and Indiana representing Freightliner,Western Star,Ottawa,Fuso,Sprinter and Detroit performance products. The company has already invested in South Bend economy by acquiring Hill Truck Sales on Sample Street in January 2016.South Bend facility provides a full-service on-site Collision Center, in addition to sales,parts and service. EMPLOYMENT IMPACT Per this petition, the company will retain forty-two (42) full-time jobs with an annual payroll of $2,150,000 and create thirty(30)full-time jobs with an annual payroll of$1,500,000 within the first three years.Truck Centers invests in their employees and provides access to training seminars at their nationally recognized Training Center in Troy, IL. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner,Hopkins Properties of South Bend, LLC has not been granted or associated with any previous tax abatement. 2. The Area Plan Commission has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. The Building Commission has reviewed the petition and finds no building permit was issued. 4. The property is located in the River West Development area. 5. 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