HomeMy WebLinkAbout4775-19 Chase Plastics Confirming Personal Property Tax Abatement RESOLUTION
No. 4775-19
Passed by the Common Council of the City of South Bend, Indiana
May 13, 20 19.
Attest: -`z~t,,... ' ; /7,",/�..--) City Clerk
Kareemah N. Fowler
Attest'. 'Nhih. President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
May 13, 19
20
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City Clerk
Kareemah N. Fowler
CI
Approved and signed by me 1\A 15 20 1
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United States of America
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Certificate
STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss:
I, Kareemah 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 4775-19
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS 5245 DYLAN DRIVE,
SOUTH BEND, IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE(5)YEAR PERSONAL PROPERTY TAX ABATEMENT
FOR CHASE PLASTICS SERVICES, INC
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
F T. 7.:,11) — .RECEIVED
t 1AY 1 7 2019 MAY 1 f 2019
1ST JOSEP; C.OUNTy
r.0 D!TC ASSESSOR
1ST JOSEPH COUNTY!
Y!
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 1 LQ day of Mai 20 1 I
Kareemah Fowler
Clerk of the City of South Bend
St. Joseph County, Indiana
By: 4.04LA. A!
9 Deputy
BILL NO. 19-21
RESOLUTION NO. 4775-19
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
5245 Dylan Drive, South Bend, IN 46628
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
Chase Plastics Services, Inc.
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
5245 Dylan Drive, 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 - 90%
Year 3 - 80%
Year 4 - 70%
Year 5 - 60%
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved by the i aynr
Tim Scott, Council President
South Bend Common Council
* ENT E) 5Ic3 /0o! 9
WPPROVE..
Filed in Clerk's Office
APR 0 3 2019
REI=�/laH FOWLER
` " CITY CLERK,SOUTH FEND,IN
CITY OF SOUTH BEND
COMMUNITY INVESTV -\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: Chase Plastics Services,Inc.
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 in productive capacity at their distribution center at
5245 Dylan Drive, South Bend.
The report contains the Department's findings relative to the above petition. Chase Plastics will be
purchasing and installing new equipment.The total project cost for the equipment is estimated at$823,000.
The project meets the qualifications for a(5)five-year personal property tax abatement and a representative
from Chase Plastics Services 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.
Sinc rely,
Dani 1 ucke eyer
Director Economic Resources&Business Development
DANIELJ.BUCKENIIEVER ALGERIA ALDRIDGE PAMELA MEYER TIM CoRCORAN
BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT 1\EIGHBORIIOOD DEVELOPuE.cT 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 REPORT
TO: South Bend Common Council
FROM: Angelina Billo
SUBJECT: Personal Property Tax Abatement Petition For: Chase Plastics Services, Inc.
DATE: April 2, 2019
On March 25,2019 a petition for personal property tax abatement consideration for property located at
5245 Dylan Drive, South Bend,is filed with the City Clerk by Chase Plastics Services, Inc. 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
• Chase Plastics, a leading North American full-service specialty engineering thermoplastics
distributor serving plastic processors throughout North and Central America, is planning to
purchase and install new equipment at their distribution. Total estimated cost of equipment is
approximately$823,000. The equipment will include storage racking, blending equipment 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 $25,980. New
project taxes will be $21,918. Total taxes to be paid over five years on the new and existing
equipment are estimated at$31,859.
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, Chase Plastics
Services, Inc has been granted or associated with one previous abatement.
Term/Type Resolution No. Date
5-year personal property 4405-14 11/12/2014
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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Filed in Clerk',,
City of South Bend • ==
1
Petition for Incentives !?-5.4.11 a.y 2)19
Petition must Include a$250 filing fee payable to the City Clerk's Office or online via the City's website at
http://soethbendin.gov/government/content/rax-abatemenrbefore processing can be complete ii1A1:1-FO/VLER
General Information Project Name ProJectNumbei P'•;.
legal name as registered with Secretary of CBK Land Development LLC;Real Property)Chase Plastic Seivices, Inc.(Personal Property)
Slate
Business structure Limited Liability Company/Corporation
Company website
www.chaseplasti cs.corn
Proposed Project information
Proposed project address 5245 Dylan Drive Parent company name Chase Plastic Services, Inc.
City,State,Zip I South Bend, IN 46628 legal owner CBK Land Development
Site acreage or acreage required 9.55 Acres Is the real estate owned or Owned
jeamA
Square feet of facility 78,880 sq. ft. addition If leased by whom N/A
Primary Contact information
Primary company contact name Robert Hoff Title Business Process Manager
Address of company contact 6467 Waldon Center Dr. Phone 248-620-8302
City,State,Zip Clarkston, MI 48346 tenet bhoff@chaseplastics.com
Senior Official'Informatlon
Company seniorofficial name Kevin Chase Title President
Address of company contact(If different from Same as Above Phone 248-620-2120
above}
City,State,2ip Same as Above Email kchase@chaseplastics.com
Consultant Information/Agent
Hired business consultant/agent name Majority Builders,Inc.-Rick Slagle Consultant release(Y/NI Yes
Address 62900 U.S. 31 South Local economic development partners Yes
approval lV/N
City,Slate,zip South Bend, IN 46614 Email 1 rick@majoritybuilders.com
Project Overview
Brief description of your
company,project,and why the Chase Plastics is a leading North American lull-service specialty engineering thermoplastic distributor
property it necessary for serving plastics processors throughout North and Central America.This application is submitted due to
economic growth Chase Plastics'desire to expanu its current 126,000 sq.ft.distnbution center by an additional estimated
80,000 sq.ft.
After erecting our existing building in 2015,business conditions have put our operation at near capacity
causing the need to expand and maximize the use of the previously purchased land,With this expansion,
we will add additional truck dock doors and increase our overall volume by 65%.
CHASE PLASTIC SERVICES,INC.WILL CONTINUE TO BE THE TENANT OF THE BUILDING
LEASING FROM THE BUILDING OWNER CBK LAND DEVELOPMENT Lt.C.THE OWNERSHIP OF
THESE TWO ENTITIES ARC CLOSELY HELD.
l_
CertlCed Technology Park appropriate
Is the project in a Tax Incremental financing
ITIF l area?Jim which?
Certify that the Building Permit has not been I Number of residential units treated by
Issued NMI I _ proles
If this Ls a petition for personal property tea abatement,has
the equipment been Installed
Investment Details
Public lnfoasWctun needs(Off- Has army BEM funding been What is the value of any equipment being purchased in I What is the value or any equipment being
site of project In dollars) received? i ndlana fcr the protect? purchased from out of stole for the prnlect?
New Prolect Investments
Calendar Year 2019 2020 2021 2022 2023 2024 2025 2026
Land Acquisition
Building lease Payments
Building Purchase Costs
New Building Construction
Existing Building Improvements 53,530,000.C0
New Machinery&Equipment
$457,000.00 5 90,000.00 $53,000,00 $00,000.00 $10,000.00 $35,000.00 5 10,300.00 .;15.00.'.10
Speclai Tooling/Retooling
Now Furniture/Fixtures $8.000.00 $2,500.00 $5,000.00
New Computer/I7 Hardware $20 000.00 $23,000.00 b 10,000.00 $10,000.00
New Software
$5,000.00 5-3,000.00 s 10,00050 $15,000.00
Onsite Rail Infrastructure
On-site Fiber Infrastructure
TOTAL $4,000,000.00 $124.00000 $55,500.00 S 80,000,00 $10,000.00 5 40,000.00 5 55,000.00 S 35,000.00
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year Jobs retained Total hourly Cumulative li of net NEW full time Hourly average wage,w/o Total training Total 0 to be
wage w/o permanent jobs created at project benefits or bonuses,of expenditure- trained-not
fringe or cumulative net new lobs not cumulative
bonuses
cumulative
2019 18 19.62 1
202o 2 17.00
2021
2022 1 19.00
2073 0 17.50
2024 2 19.50
2025 1 20.00
2025 18.50
2027 0
2o29 2 20.50
2029 1 19.00
2030 1 21.00
Provide hourly wage information for new employees in the following positrons.
Full time Part time
Laborers 17.00
Technical
Managerial
Administrative 18.50
Who will be the indlvioual responsible for coordinating with
WorkOne on recruiting?
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
y�r outreach and recruitment efforts for the last
2018 2018201 8 three years as well as current policies.
Full Time Part Time Full Time Part lime Full Time Part Time
slack 5
Hispanic 1 1 1
Aslan 1
Indian
Female 4 3 3
Other
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. .Egin2s Av2ila le Points
(Yes or No)
you qualify for the points,please enter the full amount of available
points.
1 Construction Refaced(Coniractors1
A. Employ Local Companies(75%) YES 20 20
B. Purchase Materials from Local Companies(75%) YES 20 20
C. Require Employees vs.Independent Contractors YES 19 19
3. Require Frevalling Wage(Davis Bacon) No 22
E. Require Health Benefits YES 22 22
F. Require Pension Benefits NO 18
G. Maintain Affirmative Action Plan YES 20 20
Sub-total Construction Related: 101 1;1
2 Ware&Benefit Related LOwneri:
A. Pay Target Wage Levels YES 33
B, Provide Health Benefits YES 34 34
C. Provide Pension Benefits YES 29 29
i
0. Provide Training YES 28 28
E. Provide Child Care NO
F. Provide Transportation Assistance NO 14
G. Provide Employer Assisted Housing-program NO 9
Sub-total Wage&Benefit Related: 124 1152
3 Workforce Related:
A. Create New Jobs YES 42 42
B. Retain Existing lobs YES 41 41
C. Maintain Affirmative Action Plan No 0 35 n
0. Provide Targeted Hiring Preference ' `s o 34
Sub-total Workforce Related: 83 152
4 Support a Municipal Facility:
Support a SB Municipal Facility(donations to the YES
H 1
A.
zoo,conservatory,museum,etc.) I G 84
Name of Facility Potawalomi Zoo
1 fSub•total Municipal Facility: as 84
Sub-total from Above: _.27,-, 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 Municipal Cade Sec.2-76 et seq.,for this petition state the above.
Submitted By: r� -4 Date: 3 f z z f j 9
For Staff Use Only Below This Line
What is the current assessed value? Real Property: 3;//+� e7 U U Personal Property:
r f� 39 e/X.0
What Is the projected assessed value? Real Property: 3 ,,U p i Personal Property: ---i-c23 •
O().O
What is the tax key number for this project? /
d.� — p/O.— Jl6�
What Is the six digit NAICS code?
VA/g'-t (fie & -5,4't% —P)/ ((9� 1 .4/6)
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.
At)/L7//,7 Year One /y."/3 g - 36 x739 -�,f7
A'/.0� //(AMY
Year Two % 9,g9 - = 3.6 3G" 'r-
��//'�!//( Year Three /�// U. _ L,--7 /
(J !n ✓ T zfY9 = av
D i�/� ///t Year Four l 9` Q67 Q
V / tJ 7/
q n�t/ //Year FNe .2' 7-6.. o
Please fill out the following Public Benefit Summary Information and add to total from above.
(Y or NI Points Points
Public Benefit Item:
Project Related:
S 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(point values are cumulative):
A. 100%to 199% c IT 25
B. 200%to 299% 6.0 68
C. 300%to 399% 66-
65
D. 400%and Over 52
Sub-total Super Size Projects: [ J_o 210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing or Upgrading 14
B. Pay for 26-50%of Extension Cost 26
C. Pay for 51-75%of Extension Cost 39
D. Pay for 76-100%of Extension Cost 52
Sub-total Infrastructure Related: '(5-d(' 131
Total from Applicant Section: 3%2 539
Total from Staff Section: (,5r8 461
Total Public Benefit Points: 5-5-(2 . 1000