HomeMy WebLinkAbout4779-19 CBK Land Development Confirming Real Property Tax Abatement RESOLUTION
No. 4779-19
Passed by the Common Council of the City of South Bend, Indiana
May 13, 20_ 19.
Attest: CityClerk
Kareemah N. Fowler
Attest' 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 gatAl 15 201 .
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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 4779-19
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 SEVEN (7) YEAR REAL PROPERTY TAX ABATEMENT
FOR CBK LAND DEVELOPMENT, 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
T1 .,.`.. _ MAY 1 /2019
Si JOSEPH COO
ury
MAY 1 7 2019 ASSESSOR
AUDITOR.
I
STT
C d
__ U ,
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 14 day of 20 1 61
Kareemah Fowler
Clerk of the City of South Bend
St. Joseph County, Indiana
/
BY. ��"._ ... 'e,
-erdrDeputy
BILL NO. 19-25
RESOLUTION NO. 4779-19
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 SEVEN (7) YEAR REAL
PROPERTY TAX ABATEMENT FOR
CBK Land Development, 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 5245
Dylan Drive, South Bend, Indiana, and which is more particularly described as follows:
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;
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 Real 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 Real property tax deduction for up to 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 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 - 95%
Year 4 - 90%
Year 5 - 85%
Year 6 - 80%
Year 7—75%
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
511312-011
5/13/ 2o11
Filed in Clerk's Office
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>�PR 3 2019
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CITY OF SOUTH BEND
D
COMMU \ 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: 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,
Daniel uckenmeyer
Director Economic Resources &Business Development
DANIEL j.BUCKF.NMEYER AIxEYNA ALDRIDGE PAMEI.A MEYER TIM CORCORAN
BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COMMUNITY 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
TAX ABATEMENT REPORT
TO: South Bend Common Council
FROM: Angelina Billo
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 fords 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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Filed in C6r; 'e
City of South Bend
Petition for Incentives {00, j e 2J19
Petition must Include a$250 filing fee payable to the City Clerk's Office or online We the City's website at
http://southbendin.gas/goyernment/con tent/rax-abatement before processing con be complete • 'L
r_T;
General Information Project Name Project Numbs Cl i i' -
Legal name as registered with Secretary of CBK Land Development LLC(Real Property)Chase Plastic Services,Inc.(Personal Property)
AAta
Business structure Limited Liability Company/Corporation
Company wahine www.chaseplastics.com
Proposed Project Information
Proposed protect address 5245 Dylan Drive Parent rompany name
y Chase Plastic Services,Inc.
City,State,Zip South Bend, IN 46628 Legal owner CBK Land Development
Site acreage or acreage required 9.55 Acres Is the real estate owned or Owned
Lessen
Square feet of facility 78,880 sq. ft. addition if lensed by whom N/A
Primary Contact Information
Primary company contact name Robert Hoff 7111° Business Process Manager
Address of company contact 6467 Waldon Center Dr. P1ione 248-620-8302
City,State,Zip Clarkston, MI 48346 `Ted bhoff@chaseplastics.com
Senior Official Information
Company senlorofncial name Kevin Chase '"`e President
address of campanycenmd(if different"nom Same as Above Phone 248-620-2120
Atom/
City,
State,
Zip _Same asAbove rm"1 kchase@chasepiastics.com
Consultant Information/Agan
Hued business consultant/agent noose Majority Builders,Inc.-Rick Slagle Consuitantreleasttvmi Yes
Address 62900 U.S. 31 South Local economic development partners Yes
approval(y,N
City,state,Zip South Bend, IN 46614 Email rick@majoritybuilders.com
Project Overview
Brief description of your
company,project,and why the Chase Plastics is a leading North American full-service specialty engineering thermoplastic distributor
Pr°parry is necessary for serving plastics processors throughout North and Central America.This application is submitted due to
economic growth Chase Plastics'desire to expand its current 126.000 sq.ft.distribution center by an additional estimated
90,000 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 Hueck dock doers 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 LLC.THE OWNERSHIP OF
THESE TWO ENTITIES ARE CLOSELY HEI D.
Certified Technology Park appropriate
Is the project In a Tax Incremental Financing
JTIF I area?Ilse.which?
Certify that the Building-Permit has apt been Number of nesrdrntiet units treat
Issued NMI or0IC
If this to a petition for personal property tax abatement,has
the equipment been Installed
Investment Details
Public Infrastructure needs(Off. Has any 504 funding been What is else value of any equipment being purchased In What Is the value of any equipment Doing
site of proled In dollars) received? Indiana for the project? purchased hem out of state for the project?I
New Protect Investments
Calendar Year 2019 2020 2021 2022 2023 2024 2025 2026
t and Acqukltion
Building tease Payments
Building Purchase Costs
New Building Construction
twisting Building Improvements 5 3,504000 CO
New Machinery 8,Equipment $457,00000 $90,030.00 $53,300.00 $00,000.00 $10,070.00 3 35,000.00 3 10.300.00 3 35 70",.:,,`
Special Tooling/Retooling
Nev.Furniture/Fixtures $8,000.00 $2,500.00 $5,000.00
flew Computer/ft Hardware 0 20,000,00 3 23,000.00 $10,000.n0
$10,000.00
New Software -
$5,000.00 s-3,00.:,0 4 i,i c0i ('Zi $15,000.00
On-site Ball Infrastructure
Onatte Fiber Infrastructure
TOTAL I$4,083,000.00 $128,000 00 S 55,500.00 i 80,000.00 $10,000.00 S 40,000,00 $36,000:00 $30,000.00
Full-Time Permanent Indlana-Resident Positions by Calendar Year
Calendar Year lobs retained Total hourly Cumulative It of net NEW full time Hourly average wage,w/o Total training Total O to be
wage w/o permanent jobs created at prof vet benefits or bonuses,of expenditure- trained-not
fringe or cumulative net new labs not cumulative
bonuses cumulative
2019 18 19.62 1
2020 2 17.00
2021
2022 1 19.00
2073 0 17.50
2024 19.50
2025 20.00
2025 18.50
2027 0
2028 2 20.50
2029 1 19,00
2030 1 21.00
Provide hourly wage information for new employees In the following positions.
Full lino Part time
Laborers 17.00
Technical
Managerial
Administratfue 18.50
Who wail be the indivtaual responsible for coordinating with"
WorkOsee onreaulting7 _
Does your company have an 6E0 hiring policy?'Yes Are you an EEO employer?
11Yes
Please list the number of full time and part time minority and/or female employees for each of Pleasedeacrlbe your commitment to
the last three years: diversity and Inclusion by detailing your
Pear 2018
and recruitment efforts for the last
2018 2018 2018 three years as well as current policies,
Full Time Part Time Full Time Part lime Full 7lme Part Time
Black 5 5 5
Hispanic 1 1 1
Asian 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 Points Available Points
(Yes or No)
you qualify for the points,please enter the full amount of available
points.
1 Construction Related(Contractors):
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
Require Prevailing Wage(Davis Bacon) No 22
E. Require Health Benefits YES 22 I 22
F. Require Pension Benefits VO I 18
G. Maintain Affirmative Action Plan YES 20 2C
Sub-total Construction Related: 101 111
2 Wojt&Benefit Related(Owned::
A. Pay Target Wage levels YES 33 33
B. Provide Health Benefits YES 34 34
C. Provide Pension Benefits YES 29 29
D, Provide training YES 28 28
E. Provide Child care NO Is
F. Provide Transportation Assistance NO 14
G. Provide Employer Assisted Housing.program NO 9
Sub-total Wage&Benefit Related: 124 162
3 Workforce Related:
A. Create New Jobs YES 42 42
B. Retain Existing lobs YES 41 41
C. Maintain Affirmative Action Plan No 0 3s
R
0. Provide Targeted Hiring Preference ' •0 34
Sub-total Workforce Related: 83 152
4 Support a Municipal Facility:
Support a S8 Municipal Facility(donations to the
A. coo,conservatory,museum,etc.) Y�S 84 84
Name of Facility Polawalo_
' ISub-total Municipal Facility: n al 84
fj
Sub-total from Above: _9 5
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 Code Sec.2-76 et seq.,for this petition state the above.
Submitted By: Dater [ 3/2-z./ 1
For Staff Use Only Below This Line
What Is the current assessed value? Real Property: ///'r C 7. r Personal Property:
projected assessed value? Real Property:
P
What Is thePro a /�J vv 3 y
3 .2 pvt,. Personal Property: -� p00
What Is the tax key number for this project? 1
0.25- -10/0.-a7'61
What Is the six digit NAICS code? pQ(/161 e ,'&z-c4.� _PP)` 473 (/Ok z, 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 fNe years when applicable.
•vi5 /4...7 fri• Year One 4i5
"re
/3 9 56.. &'7 3 f' =mss'
r e / Year Two ;G`.e/s ` 3,b 56'8(
= y/
W/6//
n/ // /�/y' YearThree /�/, X292 = 5777
etc, pc year Four 9- t� iO
oto/ ///5—Year Five 1 /5- _76'.
Please fill out the following Public Benefit Summary Information and add to total from above.
fY or Nj 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(point values are cumulative):
A. 100%to 199% c21 25
B. 200%to 299% Lc' 68
C. 300%to 399% G6— 65
D. 400%and Over 52
Sub-total Super Size Projects: /J '' I 210
7 Pay for Municipal infrastructure:
A Pay for Oversizing or Upgrading 14
B. Pay for 26-50%of Extension Cost 25
C. Pay for 51-75%of Extension Cost 39
D Pay for 76-100%of Extension Cost L� 52
Sub-total Infrastructure Related: ".j�U 131
Total from Applicant Section: 3 oZ 539
Total from Staff Section: l6"'cf 461
Total Public Benefit Points: 5-672 , 1000
i 314
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