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HomeMy WebLinkAbout4773-19 Molding Products Confirming Personal Property Tax Abatement RESOLUTION No. 4773-19 Passed by the Common Council of the City of South Bend, Indiana May 13, 20 1 9. Attest: 0,4.1-4-sot-01-0e1 #34I-4._2 City Clerk Kareemah N. Fowler Attest \ ``'111111%. President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 13, 19 20 City Clerk Kareemah N. Fowler Approved and signed by me Aa 6 20 19 Maya United States of America • CCertificate 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 4773-19 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND,INDIANA,COMMONLY KNOWN AS 1545 S.OLIVE STREET, SOUTH BEND, IN 46619 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE(5)YEAR PERSONAL PROPERTY TAX ABATEMENT FOR MOLDING PLASTICS, LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, MAY 13, 2019. PRESENTED TO, APPROVED AND SIGNED BY MAYOR PETE BUTTIGIEG, MAY 15,2019. ATTEST: TIM SCOTT, PRESIDENT OF THE COMMON COUNCIL ATTEST: KAREEMAH N. FOWLER, CITY CLERK -RE Vin- - FILED ¢ may 1 r 2019 MAY 1 7 2019 ST.JOSEPH COUNTY ASSESSOR ST JOSEPH AUDITOR 1 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 /( day of Mtn 20 /9 Kareemah N. Fowler Clerk of the City of South Bend St. Joseph ounty, Indiana attie.-we-o-#1-r By: Kareemah N. Fowler BILL NO. 19-19 RESOLUTION NO. 4773-19 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1545 S. Olive Street, South Bend, IN 46619 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Molding Plastics, LLC WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated 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; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for personal property tax abatement only and is limited to three (3) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted personal property tax deduction for a period of five (5) years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. Year 1 - 100% Year 2 - 95% Year 3 - 85% Year 4 - 75% Year 5 - 65% SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. Tim Scott, Council President South Bend Common Council Rot AQpRovE,D ham,, 51t / Filed in Clerk's Office fI r` APR 0 3 2019 KAREENixH BOWLER `•. CITY CLERK,SOUTH BEND,IN CTh _�ITY OF SOUTH BEND CO AMU \ ITY INVESTME\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 DANIEL J.BUCKENMEVER ALKEYNA AI.DRIDGE PAMELA MEYER TIM CORCORAN BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT 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 TAX ABATEMENT REPOR T 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$5mum 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. e It) 0000 o h USN NON toO O r C) M d O CA O CD 0000 M C N- 0 0 0 } O O 0) O 05 co CO N01 M O M M V .- IA - N N .- M o O O 0 0 o N O (NI N O N N &I 6) co N N 0 i_ P a) 0 0 0 O M C)) Cp O O 0) Z ~ d ,- O ON O O co a >- co-O cc CO M n n O O 6 N O O 00 r QOM O 6) v 7- 7- N CO N- In V- CO CO T- N N N N o M O O co O o M O CO N O N m a) CO M 61 O O IA I- O 0 � Ir-) O O 6) O) V 61 (O co CO N O O LL) 0 M N N10 0a) O) CA M C7 } 0 N- h co V CO (O Q CO O (D IN!) 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G CB < M M Il) -- cn oN c. a -C7 O u) c y ii) .. o 0 >cri U .— NM V co E - a) a) C6 (a 06 a) 7 (a 0) a) >- a) a) a) a) a) cn O o o >- >- >- >- >- u) a) zj co D o co co ET Z -0 O 00 0 CO 0 Q N O co U) a)• c i6 M O ~ co N 2 E _ V----"----" o CC H U W uo) 0 c0 (6 > a vo ` UCO J�p31 cl> m to V C2 C3 F� 0 co m a m U) 4-4 l:.3- ,f E .c (6 7 O To OD N x x X Y a) N 92 0 a) > O fn ca N Y CO a) 'U f6 c� U OG 1.11 c U) a) u) -o c vv) c a) x U m a) CO 1 41-1 1].F LU u) cn a) a) v) co m u a`) .- 0 .r i Q CL a) > a) a� cau) coE < �_ I Ys U m W a' QQ) � z a` - XC ` UOU 9 y1 -cE Q N � a) m �� v .E LU "C". 0w D u) u) D LL C1'4 v) m 0.) u) o mo L U, O CO J < CU J 0 : 3 Filed in C!t;k'.:� Office APR U i 2019 City of South Bend ,,f-',,f &04VL R P titian for Incentives o,n ritl!{E QCI d Q S 0 filing fee payable to the City Clerk's Office or online via the City's website at CM'CLERK, '; :n .1 . _ �JJsop3h 1} p;y v/government/content/tax-abatement before processing can be complete General Information Project Name MP Expansion Phase I Project Number Legal name as registered with Secretary of State Molding Products LLC. Business structure Limited Liability Company Company website www.molding-products.com Proposed Project Information Proposed project address 1545 S.Olive Street Parent company name IP Corporation City,State,Zip South Bend, IN 46619 legal owner Jim Wallenfelsz Site acreage or acreage required 1 acre Is the real estate owned or Leased leased Square feet of facility 15,000 If leased by whom Northfolk&Southern Primary Contact Information Primary company contact name Troy Wade Title Vice President&General Manager Address of company contact 1545 S.Olive Street Phone 574-404-5512 City,State,Zip South Bend, IN 46619 Ema'I twade©molding-products.com Senior Official Information Company senior official name Reagan Stephens Title Chief Operating Officer Address of company contact(if different from 1225 Willow Lake Blvd. Phone 651-481-6855 abovel City,state,zip St. Paul,MN 55110 Email rstephens©ipcorp.com Consultant Information/Agent Hired business consultant/agent name Consultant release(Y/N) Address Local economic development partners approval(Y/N) City,State,Zip Email Project Overview Brief description of your company,project,and why the Molding Products produces fiberglass reinforced composite property Is necessary for intermediate that is molded bytheir customers into composite parts economic growth p such as the 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. Certified Technology Park appropriate Is the project in a Tan Incremental Financing mF 1 area? If so.which? Certify that the Building Permit has not been Number of residential units created by Issued(Y/N1 orolect If this is a petition for personal property tax abatement,has the equipment been installed Investment Details Public Infrastructure needs 10ff- Has any 504 funding been What is the value of any equipment being purchased in What Is the value of any equipment being site of project in dollars) received? Indiana for the project? purchased from out of state for the project? New Project Investments Calendar Year 2019 2020 2021 2022 2023 2024 2025 2026 Land Acquisition $12,000 00 S 12,000 00 $12,000.00 S 12,000 00 $12,000 00 5 12,000 00 $12,000 00 S 12,000 00 Building Lease Payments Building Purchase Costs New Building Construction S 4,400,000 00 Existing Building Improvements New Machinery&Equipment S 5,000,000 00 Special Tooling/Retooling New Furniture/Fixtures New Computer/IT Hardware New Software S 50,000 00 On-site Rail Infrastructure On-site Fiber Infrastructure TOTAL S 9462,000 rr, $12,000.00 $12,000 00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Total hourly Cumulative ft of net NEW full time Hourly average wage,w/o Total training Total p to be wage w/o permanent jobs created at project benefits or bonuses,of expenditure- trained-not fringe or cumulative net new jobs not cumulative bonuses cumulative 2019 45 518/Hr-575,000 7 $18/Hr-$75,000 $5,000 7 2020 8 $18/Hr-$75,000 $6,000 8 2021 5 $18/Hr-$75,000 $4,000 5 2022 2023 2024 2025 2026 2027 2028 2029 2030 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers 15 Technical 5 Managerial Administrative Who will be the individual responsible for coordinating with WarkOne on recruiting? Neal Hinds Does your company have an EEO hiring policy? Yes Are you an EEO employer? Yes Please list the number of full time and part time minority and/or female employees for each of Please describe your commitment to the last three years: diversity and inclusion by detailing your outreach and recruitment efforts for the last Year 2016 2016 2016 three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black 12 14 15 Molding Products is an Equal Opportunity Hispanic Employer II's policy to comply with those laws 3 2 3 in all respects Therefore,it's a violation of Company Policy to discriminate against an Asian 1 1 1 individual unlawfully because of any of the following:Race,Color,Religion,Sex,or Indian 1 National oriyin,Disabi6ly,Age and any other status protected by law This policy also Female 3 3 4 applies to hiring compensation and all other terms,conditions,and privileges of Other employment Complete below for Real or Personal Property Tax Abatement only. Please sign for all requested incentives. Public Benefit Item: Information is required on both the construction companies and the companies which will provide materials purchased for this project. Please complete the table below with the appropriate information. If Qualify Earned Points Available Points you qualify for the points,please enter the full amount of available (yes or No) points. 1 Construction Related(Contractors): A. Employ Local Companies(75%) Yes 20 20 B. Purchase Materials from Local Companies(75%) No 0 20 C. Require Employees vs.Independent Contractors No 0 19 D. Require Prevailing Wage(Davis Bacon) Yes 22 22 E. Require Health Benefits Yes 22 22 F. Require Pension Benefits No 0 18 G. Maintain Affirmative Action Plan No 0 20 Sub-total Construction Related: 64 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels Yes 33 33 B. Provide Health Benefits Yes 34 34 C. Provide Pension Benefits No 0 29 D. Provide Training Yes 28 28 E. Provide Child Care No 0 15 F. Provide Transportation Assistance No 0 14 G. Provide Employer Assisted Housing program No 0 9 Sub-total Wage&Benefit Related: 95 162 3 Workforce Related: A. Create New Jobs Yes 42 c2 B. Retain Existing lobs Yes 41 41 C. Maintain Affirmative Action Plan Yes 35 35 D. Provide Targeted Hiring Preference Yes 34 34 Sub-total Workforce Related: 152 152 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A. zoo,conservatory,museum,etc.) No o 84 Name of Facility Molding Products LLC 'Sub-total Municipal Facility: 0 84 • Sub-total from Above: 311 539 The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and South Bend Municip Co Sec. 76 et seq.,for this'peon state the above. Submitted By: Troy Wade zli e ,86te: 3/23/19 C / It For Staff Use Only Below This Line 7 What is the current assessed value? Real Property: Personal Property: „1 9)G2- 0 7/ What is the projected assessed value? Real Property: Personal Property: What is the tax key number for this project? rp_ 0f.47 -./r9 2£J'_�_�� r� What is the six digit NAILS code? !1 /,9/P Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. �f7 y,goy' x %`z' Year One 7 I� ��,/CC�•e (,C(//11y/[�y,//Y�G Year Two 'Y � 9�y- �6 y Year Threc67 •v g Ce 2,7/45- ,s,//� Year Four 71 Year Five C� Please fill out the following Public Benefit Summary Information and add to total from above. (Y or N2 Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan - 36 Sub-total Project Related: 120 6 Super Size Projects jpoint values are cumulative): A. 100%to 199% _ ---1 25 9 200%to 299% � / _ 68 C. 300%to 399% - f 65 D. 400%and Over ( 32 Sub-total Super Size Projects: 210 7 Pay for Municipal Infrastructure: A. Pay for Oversizing or Upgrading 14 B. Pay for 26-50%of Extension Cost26 C. Pay for 51-75%of Extension Cost 39 D. Pay for 76-100%of Extension Cost \__' 52 Sub-total Infrastructure Related: 131 Total from Applicant Section: j,' 539 Total from Staff Section: 461 Total Public Benefit Points: 3-'7' 1000