HomeMy WebLinkAbout4778-19 CBK Land Development Designating Real Property Tax Abatement RESOLUTION
No. 4778-19
Passed by the Common Council of the City of South Bend, Indiana
A rpil8, 2019 .
/// CityClerk
Attest: a�c.�,�,,r�- /1/1-St,
K eemah N. Fowler
Attest* President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
April 8, 19
20 .
cL2U�hr�� -1//Z Fit/ City Clerk
Kareemah N. Fowler
Approved and signed by me Mil 1 20i11. .
United States of America
NsCertificate
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 4778-19
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 5245 DYLAN DRIVE, SOUTH
BEND,IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES
OF A SEVEN (7) YEAR REAL PROPERTY TAX ABATEMENT FOR CBK
LAND DEVELOPMENT, 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
MAY 1 12019
MAY 1 i [019
SI-
AUDITOR JOSFri-,(,-:_;_1NY.:
,ST JOSEPH COUNTY ASSESS;;,;
f
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 of the City
of South Bend, St. Joseph County, Indiana, this I lQ day of WI 20.5_ _
Kareemah N. Fowler
Clerk of the City of South Bend
St. Jose h County. Indiana
itti.el -4,,,,e4A.--
By:
Kareemah N. Fowler
BILL NO. 19-24
RESOLUTION NO. 4778-19
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
5245 Dylan Drive, South Bend, IN 46628
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SEVEN (7)
YEAR REAL PROPERTY TAX ABATEMENT FOR
CBK Land Development, 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 5245 Dylan Drive, South Bend, IN. which is more particularly described as:
Lot 2 Portage Prairie Minor #5 16/17 NP#1787 03-19-2015
15/16 NP#1338 03-07-2014
and which has Key Numbers 025-1010-0169 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%
Year 2 - 95%
Year 3 - 95%
Year 4 - 90%
Year 5 - 85%
Year 6 - 80%
Year 7—75%
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, Counci - s ent
South Bend Common Council
PRESENTED`\ oce.-201
NOT APPROIVM
ADOPTEE) 0 - 7019
Filed in Clerk's O fhe 1
i.. APRio ;3 2' 11
. t. CITY C!EUK, SOL
I6 -
CITY OF SOUTH BEND
COMMUNITY 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: CBK Land Development,LLC
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. The project calls for extension of a distribution center as part of the
company's planned increase in productive capacity at 5245 Dylan Drive,South Bend. The project cost is
approximately$3,500,000.
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 CBK Land
Development, LLC 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.
Sincerely,
'6A" --,
Daniel uckenmeyer
Director Economic Resources&Business Development
DANIEI,J.BUCKENMEYER ALKEYNA ALDRIDGE PA.NIEI.A MEYER TIM CORCORAN
BUSINESS DEVELOPMENT ENGAGEMENT 8c ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COMMUNTIY RESOURCES
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
14005 County-City Building 227 W.Jefferson Blvd. South Bend.Indiana 46601 p 574.235.9371 www.southbendin.gov
Filed in Clerk's Office
APR 0 3 2019
TAX ABATEMENT REPORT REEMAH FOWLER
I CITY CLERK,SOUTH BEND,IN
TO: South Bend Common Council
FROM: Angelina Billo
I
SUBJECT: Real Property Tax Abatement Petition For: CBK Land Development LLC
DATE: April 1, 2019
On March 25,2019,a petition for real property tax abatement consideration for property located at 5245
Dylan Drive,South Bend,IN was filed with the City Clerk by CBK Land Development,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
• Chase Plastics, a leading North American full-service specialty engineering thermoplastics
distributor serving plastic processors throughout North and Central America,is planning to expand
its current 126,000 sq.ft. distribution center by an additional estimated 80,000 sq.ft. Business
conditions have put operations at near capacity causing the need to expand and maximize the use
of the previously purchased land.With this expansion,the company will add additional truck dock
doors and increase its overall storage capacity by 65%.
• The estimated project cost is$3.5millon.
• Petitioner is qualified for a seven-year real property tax abatement.
• The estimated amount of taxes phased-in for the seven-year abatement is$469,961. Estimated
paid taxes paid for the seven-year term are$118,039.
Chase Plastics is the only tenant leasing from the ownership entity of CBK Land Development,LLC. The
ownership of these two entities are closely related.The company moved into the newly constructed facility
in Ameriplex 80/90 area back in 2015.This location is exceptional for a distribution operation. Due to its
proximity to the intersection of the Interstate 80/90 and US Highway 31, it allows Chase Plastics to
transport goods in all directions in a very efficient manner.
EMPLOYMENT IMPACT
Per this petition,the company will have nineteen(19)full-time jobs with an annual payroll of$775,384 by
the end of 2019.It is estimated that in ten years the business will create twelve(12)new,permanent full-
time positions and zero (0)part-time positions with an annual payroll of$475,280.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the Petitioner, CBK Land
Development,LLC has been granted or associated with one previous tax abatement.
Term/Type Resolution No. Date
10-year real property 4406-14 11/12/2014
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. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications for a(7) seven-year real property tax abatement under section 2-75 Real Property
Tax Abatement General Standards.
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