19-19 Molding Products Confirming Personal Property Tax Abatement

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TAX ABATEMENT REPORT 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.