HomeMy WebLinkAboutConfirming Tax Abatement - Tire Rack Inc 7101 Vorden Pkwy (5 Yr. Real Property)Attes
RESOLUTION
4198 -12
Passed by the Common Council of the City of South Bend, Indiana
August 13,
12
20
Presented by me to the Mayor of the City of South Bend, Indiana
August 14, 2012
City Clerk
ident of Common Council
Approved and signed by me Am G.v 91— 20 20 1Z .
City Clerk
0
RESOLUTION NO. li � �
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
7101 Vorden Parkway
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A (5) FIVE YEAR REAL
PROPERTY TAX ABATEMENT FOR
THE TIRE RACK, 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
7101 Vorden Parkway, South Bend, Indiana, and which is more particularly described as
follows:
Lot 1
B W Business Park Major Sub
02 -03 New Replat 4013-16-01
and which has Key Number 025- 1011 - 018604, 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 two (2) 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 a period of five (5) years, 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 se .
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.
PRESENTED F-- L 3 -( '--
JfO.T. APPROVE
Filed in S ffice
t
JUL q 2U1?
CITY CLEi -A, SOUTH BEND, IN i
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
12 -63 A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS 7101 VORDEN PARKWAY AS
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES
OF A (5) FIVE YEAR REAL PROPERTY TAX ABATEMENT
FOR THE TIRE RACK, INC.
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
This bill was heard by the Community & Economic Development Committee.
Karen L. White
Chairperson, Committee of the Whole
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
THE TIRE RACK, INC.
DATE: July 9, 2012
On April 4, 2012, a petition for real property tax abatement consideration for property located at 7101
Vorden Parkway was filed with the City Clerk by The Tire Rack, Inc.
The Tire Rack, Inc. is a mail order and e- commerce firm engaged in the business of selling performance
tires, wheels, and accessories for passenger automobiles and light duty trucks. The petitioner would like to
construct a 36,000 square foot building which will enable the expansion of Technological Resources and
assets to further the growth and development of their e- commerce Product Distribution business. The
estimated dollar value of the project, excluding land, is $6,500,000.
Please note that the contractor information was largely unknown at the time the designating resolution
was approved. The information on the contractors is now available and based on the information attached
they qualify for a five year real property tax abatement. Based on a project cost of $6.5 million with a
five year term, the taxes abated would be $496,345 based on the approved term. The taxes paid will be
$471,939.
24. In the following chart please indicate companies that will be used for purchasing
materials to be used in the construction or rehabilitation associated with the
project. Include the location of the company, description of the materials, and
cost of materials. Local companies include those in St. Joseph County. Additional
information may be requested for verification of this information.
Name and Address Description of Materials Cost of Materials % of Grand
of Company Total
Local Companies:
1. CMA Supply —South Bend, IN
Concrete Accessories $ 13,903.00 2.7%
2. Builders Iron Works — Mishawaka, IN
Structural Steel $416,444.00 80.7%
3. Home Acre Supply — South Bend, IN
Metal Studs /Sheetrock $ 66,211.00 12.8%
4. Big C Lumber — Granger, IN
Lumber
5. Moss Building Products — Mishawaka, IN
Toilet Partitions
Fire Extinguishers
$ 2,679.00
$16,530.00
0.5%
3.3%
Total Local
$515,767.00
100%
Non -Local Companies:
1. Consumers Concrete — Niles, MI
Concrete
$83,438.00
51.7%
2. Specialized Wood Products — Elkhart, IN
Millwork
$ 4,546.00
2.8%
3. Central Indiana Hardware — Fort Wayne, IN
' Doors and Hardware
$38,724.00
24%
4. William Baker— Indianapolis, IN
Louvers
$28,564.00
17.7%
5. Central Indiana Hardware — Fort Wayne, IN
Toilet Accessories
$6,060.00
3.8%
Total Non -Local
$161,332.00
100%
Grand Total
$677,099.00
100%
25. In the following chart please list the companies that will be used for the construction
or rehabilitation associated with the project. Indicate the name and address of
each company; list the dollar value of the work provided by each company;
indicate whether or not 100% of the workers are employees of that company and
not independent contractors; indicate whether or not the company pays workers'
wages that meet the wage rates for each classification of laborers and
mechanics published by the U.S. Department of labor; indicate whether or not
the company contributes to a health plan for its employees; indicate whether or
not the company contributes to a pension plan for its employees; and indicate
whether the company maintains an affirmative action plan or similar plan to
achieve racial diversity. Local companies include those in St. Joseph County.
Additional information may be requested for verification of this information.
Name Contract 100% Workers Pay US Dept. Contribute Contribute Maintain
Address of Amount are Employees Labor Wage to Health to Pension Affirmative
Company Rate Plan Plan Action Plan
Local Companies:
1. Schuell Fence - South Bend, IN
$3,680.00 YES
NO
YES
YES
YES
2. Majority Builders — South Bend, IN ( Excavation /Concrete /Carpentry/Electrical)
$1,607,484.00 YES
NO
YES
YES
YES
3. Crane Industrial Service — Granger, IN
$111,500.00 YES
YES
YES
YES
YES
4. Michiana Insulation — South Bend, IN
$7,540.00 YES
NO
YES
YES
YES
5. Barany Sheet Metal — South Bend, IN
$396,615.00 YES
NO
NO
NO
YES
6. Midland Engineering — South Bend, IN
$92,750.00 YES
YES
YES
YES
YES
7. Midwest Tile — Mishawaka, IN
$222,000.00 YES
YES
YES
YES
YES
8. Burkhart Advertising — South Bend, IN
$1,172.00 YES NO YES YES YES
9. Ryan Fire Protections — South Bend, IN
$59,665.00 YES YES YES YES YES
10. Dynamic Mechanical — Mishawka, IN
$573,487.00 YES YES YES YES YES
11. Wissco Irrigation — South Bend, IN
$19,500.00 YES NO YES YES YES
12. Foegley Landscaping — South Bend, IN
$35,950.00 YES NO YES YES YES
Total Local $3,131,343.00
Name Contract 100% Workers Pay US Dept. Contribute Contribute Maintain
Address of Amount are Employees Labor Wage to Health to Pension Affirmative
Company Rate Plan Plan Action Plan
Non -Local Companies:
1. Benders Construction — Goshen, IN
$20,175.00 YES
NO
NO
NO
YES
2. Lue Manufacturing — Wakarusa, IN
$44,702.00 YES
NO
YES
YES
YES
3. Midwest Glass— Stevensville, MI
$340,302.00 YES
NO
YES
YES
YES
4. Automatic Door Controls — Fort Wayne, IN
$3,790.00 YES
NO
YES
YES
YES
5. Protape Drywall — Goshen, IN
$43,445.00 YES
NO
NO
NO
YES
6. Bear Acoustics — Columbia City, IN
$102,400.00 YES
NO
YES
YES
YES
7. Select Drywall and Painting — Elkhart, IN
$41,190.00 YES
NO
NO
NO
YES
8. Schindler Elevator — Indianapolis, IN
$54,000.00 YES
YES
YES
YES
YES
9. Fenner Plumbing — Berrien Springs, MI
$122,690.00 YES
NO
YES
YES
YES
10. Niblock Excavating — Bristol, IN
$108,408.00 YES
NO
YES
YES
YES
Total Non -Local $881,102.00
Summary
Total Local Material Suppliers $ 515,767.00
Total Non -Local Material Suppliers $ 161,332.00
Total Local Contractors $3,131,343.00
Total Non -Local Contractors $ 881,408.00
Total Construction Contract Amount $4,689,850.00
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
9- Jul -12
The Tire Rack, Inc.
Public Benefit Points Summary
Qualify
Earned
Available
Public Benefit Item:
Y or N
Points
Points
Project Related:
1. A.
Redevelop a Site that has Special Needs
N
0
49
B.
Develop Based on Local University Research
N
0
35
C.
Achieve a Physical Element of a Plan
N
0
36
Sub -total Project Related:
0
120
2. Super Size Projects (point values are cumulative):
A.
100% to 199%
N
0
25
B.
200% to 299%
N
0
68
C.
300% to 399%
N
0
65
D.
400% and Over
N
0
52
Sub -total Super Size Projects:
0
210
3. Construction Related:
A.
Employ Local Companies
Y
20
20
B.
Purchase Materials from Local Companies
Y
20
20
C.
Require Employees vs. Independent Contract(
Y
19
19
D.
Require Target Wage Levels
N
0
22
E.
Require Health Benefits
Y
22
22
F.
Require Pension Benefits
Y
18
18
G.
Maintain Affirmative Action Plan
Y
20
20
Sub -total Construction Related:
119
141
4. Wage & Benefit Related:
A.
Pay Target Wage Levels
Y
33
33
B.
Provide Health Benefits
Y
34
34
C.
Provide Pension Benefits
Y
29
29
D.
Provide Training
Y
28
28
E.
Provide Child Care
N
0
15
F.
Provide Transportation Assistance
N
0
14
G.
Provide Employer Assisted Housing program
N
0
9
Sub -total Wage & Benefit Related:
124
162
5. Workforce Related:
A.
Create New Jobs
Y
42
42
B.
Retain Existing Jobs
Y
41
41
C.
Maintain Affirmative Action Plan
Y
35
35
D.
Provide Targeted Hiring Preference
N
0
34
Sub -total Workforce Related:
118
152
6. Pay for Municipal Infrastructure: (point values are cumulative):
A.
Pay for Oversizing or Upgrading
N
0
14
B.
Pay for 26 -50% of Extension Cost
N
0
26
C.
Pay for 51 -75% of Extension Cost
N
0
39
D.
Pay for 76 -100% of Extension Cost
N
0
52
Sub -total Infrastructure Related:
0
131
7. Support a Municipal Facility:
A.
Support a Municipal Facility
N
0
84
Total Public Benefit Points:
361
1000
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
The Tire Rack, Inc.
Additional Years of Abatement
Multi - family Development Projects:
From
To
Additional Years
0
141
0
142
183
1
184
225
2
226
267
3
268
309
4
310
351
5
352
.393
6
394
& over
7
Other Development Projects:
From
To
Additional Years
0
300
0
301
357
1
358
414
2
415
471
3
472
528
4
529
585
5
586
642
6
643
1000
7
Subtotal from Points Summary: 361
Base Years of Abatement 3
Additional Years of Abatement: 2
Total Years of Abatement: 5
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