HomeMy WebLinkAboutConfirming Tax Abatement - 3445 William Richardson Drive - Lake Michigan Mailer, Inc (Jade Elephant Holding, LLC)Attest:
RESOLUTION
Passed by the Common Council of the City of South Bend, Indiana
March 10,
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
March 11, 2dJ8
Approved and signed by me March 11. 20 08 .
City Clerk
0
RESOLUTION NO. 3 N I - 0 b
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
3445 William Richardson Drive
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
Lake Michigan Mailers, Inc. (Jade Elephant Holding, 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
3445 William Richardson Drive, South Bend, Indiana, and which is more particularly
described as follows:
Lot Numbered Fourteen (14) as shown on the recorded Plat of the
Toll Road Industrial Park Section 6, recorded April 7, 1989 as
document number 8908570 in the Office of the Recorder of St, Joseph,
County, Indiana.
and which has Tax Key Number 25 -1013- 021111 presently, 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 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 Personal property tax deduction for a period of five (5) years,
and further determines that the petition complies with Chapter 2, Article 6, of the
Municipal Code of the City of South Bend and Indiana Code 6- 1.1 -12 et seq.
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.
SUNTED -S- -�C��� o
NOT APPROVED.
ADOPTED - 3-
w
Member o e Common Council
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Clef zIs ()Jfsce
FEB DiT'
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1200 COUNTY -CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601 -1830
PHONE 574/235 -9371
FAx 574/235 -9021
TDD 574/ 235 -5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
,JEFFREY V. GIBNEY
February 7, 2008 EXECUTIVE DIRECTOR
Council Member Derek D. Dieter, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
LAKE MICHIGAN MAILERS, INC. (JADE ELEPHANT HOLDING, LLC)
Dear Council Member Dieter:
Please find attached the Department of Community & Economic Development'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 start-up of its new mail assembly and
document processing facility to be located at 3445 William Richardson Drive. The site is currently owned
by Ancon Construction Company, Inc. It will be purchased by Jade Elephant Holding, LLC who will in turn
lease the site to Lake Michigan Mailers, Inc.
The report contains the Department's findings relative to the above petition. Lake Michigan Mailers, Inc.
will be purchasing and installing the new equipment. The total project cost for the equipment is estimated at
$1,216,873. The project meets the qualifications for a (5) five -year personal property tax abatement and a
representative from Lake Michigan Mailers will be available to meet with the Committee on Monday,
February 25, 2008.
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 -5835.
Sincerely,
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
filed In C101WS plfice
JOriN `JOOCD6C 1D, �•
CITY CLEKK,
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235 -9660 574/235-9371 ELIZABETH LEONARD
FAx: 574/235 -9697 574/235 -9371
1200 COUNTY -CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601 -1830
PHONE 574/235 -9371
FAx 574/235 -9021
TDD 574/ 235 -5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BOB MATHIA
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
LAKE MICHIGAN MAILERS, INC. (JADE ELEPHANT HOLDING, LLC)
DATE: February 7, 2008
On February 4, 2008, a petition for personal property tax abatement consideration for property located at
3445 William Richardson Drive was filed with the City Clerk by Lake Michigan Mailers, 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 and Economic Development 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 and Economic Development has reviewed the petition (a copy of which is
attached), investigated the area, and makes the following report.
PROJECT SUMMARY
Lake Michigan Mailers, Inc. /Jade Elephant Holding, LLC are proposing to develop a 4.75 acre site to
include construction of an approximate 13,000 square foot mail assembly and document processing
facility. The facility will also serve' as a "hot site" for disaster recovery for Lake Michigan Mailers'
document creation and mail assembly operations located in Kalamazoo, Michigan. In addition, the site
will serve as a sales facility and customer training site for.customers located in northern Indiana. The site
is currently owned by Ancon Construction Company, Inc. It will be purchased by Jade Elephant Holding
who will in turn lease the site to Lake Michigan Mailers, Inc. Lake Michigan Mailers will own the
equipment placed on the site.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235 -9660 574/235 -9371 ELIZABETH LEONARD
FAx: 574/235 -9697 574/235 -9371
South Bend Common Council
RE: Lake Michigan Mailers, Inc. (Jade Elephant Holding, LLC)
February 7, 2008
Page 2
The new equipment to be installed on the site has a total estimated cost $1,216,873. It will be used for:
mailpiece assembly; mailpiece bar - coding, sorting and preliminary distribution; data processing and
management; and document creation and final assembly. The new equipment consists of various
inserting, sorting and document management systems and data processing equipment. PLEASE NOTE:
The petitioner has included a vehicle valued at $66,000 as part of their equipment list. It is unclear
whether or not the vehicle is eligible for tax abatement. A final determination will be made at the time the
petitioner submits their list of equipment to the assessor's office upon completion of the project
If the vehicle is included total taxes to be abated during the (5) five -year abatement period are estimated at
$74,138. Total taxes to be paid during the (5) five -year abatement period with the vehicle included are
estimated at $38,580. If the vehicle is not included total taxes to be abated during the (5) five -year
abatement period are estimated at $70,117. Total taxes to be paid during the (5) five -year abatement
period without the vehicle are estimated at $36,488.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create five (5) new, permanent, full -time jobs and
six (6) new, part-time, permanent jobs within the first year representing a new annual payroll of $250,000.
The project is developing a completely new facility and, therefore, does not have any existing employees.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has not been granted or
associated with any previous tax abatement.
2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned
for the proposed project.
A review of the South Bend Redevelopment designation areas finds that the property is located in
the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore,
the petition for personal property tax deduction must first be approved by the South Bend
Redevelopment Commission.
4. 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.
Tax Abatement Schedule prepared for:
LAKE MICHIGAN MAILERS
(JADE ELEPHANT HOLDING, LLC)
WITH VEHICLE
South Bend German 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $1,216,873
Assume constant tax rate of: 5.1376
Assume constant SRTC rate of: 7.0636
* - This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
2/8/2008
Tax
Paid
$0
$6,507
$9,761
$11,156
$11,155
$38,580
TTV
Assessed
Gross
Less
Net
Percent
Tax
Year
TTV%
(Year 1 -5)
Value
Tax
SRTC
Tax
Abated
Abated
1
40%
486,749
486,749
$25,007
1,766
$23,241
100%
$23,241
2
56%
681,449
681,449
$35,010
2,473
$32,537
80%
$26,030
3
42%
511,087
511,087
$26,258
1,855
$24,403
60%
$14,642
4
32%
389,399
389,399
$20,006
1,413
$18,593
40%
$7,437
5
24%
292,050
292,050
$15,004
1,060
$13,944
20%
$2,789
$121,285
8,567
$112,718
$74,138
Total Taxes Due During Abatement:
$112,718
Total Taxes Abated During Abatement:
$74,138
Total Taxes Paid During Abatement:
$38,580
* - This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
2/8/2008
Tax
Paid
$0
$6,507
$9,761
$11,156
$11,155
$38,580
Tax Abatement Schedule prepared for: 2/8/2008
LAKE MICHIGAN MAILERS
(JADE ELEPHANT HOLDING, LLC)
WITHOUT VEHICLE
South Bend German 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $1,150,873
Assume constant tax rate of: 5.1376
Assume constant SRTC rate of: 7.0636
Total Taxes Due During Abatement: $106,605
Total Taxes Abated During Abatement: $70,117
Total Taxes Paid During Abatement: $36,488
. - This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
\N.
TTV
Assessed
Gross
Less
Net
Percent
Tax
Tax
Year
TTV%
(Year 1 -5)
Value
Tax
SRTC
Tax
Abated
Abated
Paid
1
40%
460,349
460,349
$23,651
1,671
$21,980
100%
$21,980
$0
2
56%
644,489
644,489
$33,111
2,339
$30,772
80%
$24,618
$6,154
3
42%
483,367
483,367
$24,833
1,754
$23,079
60%
$13,847
$9,232
4
32%
368,279
368,279
$18,921
1,337
$17,584
40%
$7,034
$10,551
5
24%
276,210
276,210
$14,191
1,002
$13,189
20%
$2,638
$10,551
$114,707
8,102
$106,605
$70,117
$36,488
Total Taxes Due During Abatement: $106,605
Total Taxes Abated During Abatement: $70,117
Total Taxes Paid During Abatement: $36,488
. - This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
\N.
City of South Bend
Petition for
Tangible Personal Property Tax
Abatement Consideration
Respectfully Submitted By:
David C. Rhoa - President
Lake Michigan Mailers, Inc
3777 Sky King Blvd
Kalamazoo, Michigan 49009
269- 488 -9220
drhoa(a-),barcodemail.com
Filed Val
FE8
C!
CITY OF SOUTH BEND PETITION FOR
TANGIBLE PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of new manufacturing equipment, personal property, located within
the City of South Bend, hereby petitions the Common Council of the City of South Bend for
personal property (new manufacturing equipment) tax abatement consideration and pursuant
to I.C., 6 -1.1 -12.1, et seq., and South Bend Municipal Code Section 2 -84.2, et seq., for this
petition states the following:
1. Describe the proposed project, including information about the new
manufacturing equipment personal property (equipment) to be installed, the
amount of land to be used, if any, the proposed use of the equipment, and a
general statement as to the value of the project to your business.
Pending the granting of the tax abatement, Ancon Construction Company, Inc.
( Ancon) of Goshen, Indiana has proposed to Jade Elephant Holding LLC (JEH)
of Mattawan, Michigan and Lake Michigan Mailers, Inc. (LMM) of Kalamazoo,
Michigan to sell to JEH the property described herein and construct a mail
assembly and document processing facility of the size herein described.
This facility will be leased by JEH to LMM under a long -term lease.
This facility represents. the largest facility construction project undertaken by
LMM since 1999. The facility described herein is a critical component of LMM "s
long -term strategy for serving customers in Northern Indiana for the provision of
mail assembly, daily mail processing and document creation. The facility will
also serve as a "hot site" for disaster recovery for LMM's document creation and
mail assembly operations located in Kalamazoo, Michigan. The facility will also
serve as a sales facility and customer training site for customers located in
Northern Indiana.
The building will initially be constructed as a single story facility of approximately
13,000 square feet on the parcel described herein (currently owned by Ancon).
It is essential to LMM's strategic plan that the facility described herein be
expandable to meet anticipated volume growth and evolving technology. As
such, the site plan for the facility includes options for substantial building
expansion so as to accommodate additional processing and assembly volumes.
Land Size 4.75 acres;
Building Size: 13,000 sq.ft. (Initial size only.)
(Revised 8/2/02)
Pending the granting of the tax abatement, LMM intends to install the equipment
listed in Exhibit D attached hereto. This equipment designed to allow LMM to
perform the following functions:
• Mailpiece assembly
• Mailpiece barcoding, sorting and preliminary distribution
• Data processing and management
• Document creation and final assembly
2. The project is expected create five 5 full -time and six 6 part-time permanent
jobs within the first year, representing an estimated new annual payroll of
$250,000.00. (Excluding LMM's contribution to the associate's medical insurance
premium, life insurance premium, as well as, hazardous -duty pay, on -call pay and tips,
back pay, overtime pay, non - production bonuses, and tuition reimbursements. The
dollar value above includes LMM's guaranteed contribution to the associate's 401(k)
plan once plan requirements are satisfied, as well as incentive pay including
commissions and production bonuses.)
The projected annual salaries for each new position created are estimated to be
as follows:
Pending the granting of the tax abatement, LMM anticipates creating the
positions detailed below at the South Bend facility.
While full -time positions offer a more robust benefits package than that of part-
time positions, LMM typically does not pay a different hourly rate for part-time
positions versus similarly classified full -time positions. In short, the only variable
in annual costs for such differential is the total number of hours worked. In the
projection below, a part-time position is based on 25 hours per work week.
The "Mail Processor — Route Driver" position offers a two -tier hourly rate; a Mail
Processor wage and a Route Driver wage.
The estimation below assumes a properly qualified /experienced individual
following LMM - provided training for specific menu of responsibilities. All
positions will be created based on business growth and market demands. LMM
is an Equal Opportunity Employer.
The dollar values include LMM's guaranteed contribution to the associate's
401(k) plan once plan requirements are satisfied; holiday pay and vacation pay.
The dollar values exclude LMM's contribution to the associate's medical
insurance premium, life insurance premium, as well as, hazardous -duty pay,
incentive pay including commissions and production bonuses, on -call pay and
tips, back pay, jury duty pay, overtime pay, severance pay, shift differentials,
non - production bonuses, and tuition reimbursements.
(Revised 8/2/02) 2
• Team Leader (Full- Time): $35,000.00
• Lead Operator — MLOCR (Full- Time): $28,000.00
• Mail Processor (Part- Time): $12,300.00
• Mail Processor — Route Driver (Full- Time): $21,800.00
• Account Executive (Full- Time): $40,000.00
3. Estimate the total cost of the Equipment:
LMM anticipates making the following investment in manufacturing and
information technology equipment in the 24 months following the granting of a
tax abatement for tangible personal property. The equipment described in this
petition is detailed in Exhibit D attached hereto.
Manufacturing Equipment: $1,139,173.00
Information Technology Equipment: $11,700.00
Logistic Distribution Equipment: $66,000.00
4. (a) The Equipment is owned or to be owned by the following individuals or
corporations (if the business organization is publicly held, indicate also the name
of the corporate parent, if any, and the name under which the corporation has
filed with the Securities and Exchange Commission):
Pending the granting of the tax abatement, the equipment will be owned by Lake
Michigan Mailers, Inc, whose corporate address is as follows:
Lake Michigan Mailers, Inc.
3777 Sky King Blvd
Kalamazoo, MI 49009
Lake Michigan Mailers, Inc. is owned as follows:
Robert J. Rhoa
2329 Riverside Pointe Drive
Saint Joseph, MI 49085
Ownership of Lake Michigan Mailers, Inc.: 60%
Karen Rhoa
2329 Riverside Pointe Drive
Saint Joseph, MI 49085
Ownership of Lake Michigan Mailers, Inc.: 30%
David Rhoa
25880 Trestle Creek Ave
Mattawan, MI 49071
Ownership of Lake Michigan Mailers, Inc.: 10%
(Revised 8/2/02)
(b) The following other persons lease, intend to lease, or have an option to buy
this Equipment (include corporate information as required in (4)(a) above, if
applicable):
Same as shown in 4(a) above.
5. Give a brief description of the overall nature of the business and of the
operations occurring at the location for which tax abatement is requested:
Currently, the parcel described herein is vacant, unimproved land.
LMM is a leading provider of mail assembly, direct mail marketing, daily mail
processing and document creation services.
If the LMM receives the requested tax abatements, it intends to offer the
following services from this location:
• Daily Mail Services including Premier Post ®, Premier Post° Flats, Option
Free®, Option Free° Governmental, Option Free° University, SortMaxTM,
Mail ExpressTM
• Direct Mail Assembly Services
• Direct Mail Campaign Development and Management
• Production Services for MailProTM clients.
• Document creation and statement processing through RIPDoce
The services described above represent LMM's core functionality and involve the
use of high- speed, technology -based equipment for the manufacture, assembly
and processing of data, documents, direct mail, parcels, and First -Class mail for
final delivery by the United States Postal Service, FedEx, UPS and similar
carriers.
6. The commonly known address of the property where the Equipment is to be
located is:
3445 William Richardson Drive, South Bend, 46628
7. The Key Number of said property is:
25- 1013- 021111
8. Attach the legal description of the property where the equipment is to be located,
marked Exhibit A, and is hereby incorporated herein.
(Revised 8/2/02) 4
9. Attach a map and /or plat describing the property where the equipment is to be located,
marked Exhibit B, and is hereby incorporated herein.
10.Attach photographs of the property, taken within 30 days of filing of this petition, marked
Exhibit C, and hereby incorporated herein.
11.The current assessed valuation of the tangible personal property to be replaced
by the new manufacturing equipment is:
The equipment described in this petition and detailed in Exhibit D attached
hereto is NEW equipment and is NOT replacing existing equipment.
12.The current use of the real property where the Equipment is to be installed is
vacant/unimproved land and the current zoning is Light Industrial.
Land Size 4.75 acres; Building Size: 13,000 sq.ft. (Initial size only.)
Low Eve Height: 22 ft.
(This information may be obtained from the Building Department 235 -9553)
13. List the real and personal property taxes paid at the location during the previous
five years, whether paid by the current owner or a previous owner:
The following real property taxes were paid by Ancon (current property owner).
As the property is currently vacant/unimproved land, no personal property taxes
have been assessed. As of the date of this petition, Ancon has not received its
2007 tax invoice.
Year
Real Property Taxes
Personal Property Taxes
Not Applicable —
2002
$
1,964.41
Vacant/Unimproved Land
Not Applicable —
2003
$
2,101.67
Vacant/Unimproved Land
Not Applicable —
2004
$
2,100.26
Vacant/Unimproved Land
Not Applicable —
2005
$
2,211.68
Vacant/Unimproved Land
Not Applicable —
2006
$
2,553.18
Vacant/Unimproved Land
Not Applicable —
2007
Pending
Vacant/Unimproved Land
(Revised 8/2/02) 5
14. Describe the commitment made within the past five years by your firm to hiring
minority individuals, including number of minorities employed during each of the
past five years, specifying whether full time or part-time and whether permanent
or temporary employees. The Petitioner shall also list the current number of total
employees (full and part-time) and the current number of minority individuals (full
and part- time).
LMM has always had and adheres to a policy of Equal Employment Opportunity,
as evidenced by its written Equal Employment Opportunity policy that is
contained in its Associate Handbook. A copy of that policy is attached hereto
and marked as Exhibit E. Because LMM does adhere to this policy, we do not
consider an individual's race, color, age, religion, gender, etc. in determining
whether to hire, promote, retain or discipline associates. For the same reason,
we do not maintain specific statistics about the demographics of our workforce,
nor do we compel associates to self- identify their demographic characteristics.
Having said that, our best estimate of the composition of our workforce is shown
on Exhibit F attached hereto.
15. Describe on -site child care or day care facilities, services or benefits currently
offered or proposed to be offered by the Petitioner for children of employees.
LMM does not offer day care facilities, services or benefits currently offered or
proposed to be offered by the Petitioner for children of employees.
16. What is your best estimate of the market value of the new Equipment after
installation:
LMM anticipates making the following investment in manufacturing and
information technology equipment in the 24 months following the granting of a
tax abatement for tangible personal property. The equipment described in this
petition is detailed in Exhibit D attached hereto.
Manufacturing Equipment: $1,139,173.00
Information Technology Equipment: $11,700.00
Logistic Distribution Equipment: $66,000.00
(Revised 8/2/02) 6
17. What is your best estimate of the amount of taxes to be abated during each of the five
years after installation?
South Bend German 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $1,216,873
Assume constant tax rate of: 5.1376
Assume constant SRTC rate of: 7.0636
Gross
Less
TTV
Assessed
Year
TTV%
(Year 1 -5)
Value
1
40%
486,749
486,749
2
56%
681,449
681,449
3
42%
511,087
511,087
4
32%
389,399
389,399
5
24%
292,050
292,050
Gross
Less
Net
Percent
Tax
Tax
Tax
SRTC
Tax
Abated
Abated
Paid
$25,007
1,766
$23,241
100%
$23,241
$0
$35,010
2,473
$32,537
80%
$26,030
$6,507
$26,258
1,855
$24,403
60%
$14,642
$9,761
$20,006
1,413
$18,593
40%
$7,437
$11,156
$15,004
1,060
$13,944
20%
$2,789
$11,155
$121,285
8,567
$112,718
$74,138
$38,580
Total Taxes Due During Abatement:
Total Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
(Revised 8/2/02) 7
$112,718
$74,138
$38,580
18.What is the commitment your firm will make to minority employment during the
five years of tax abatement?
LMM has always had and adheres to a policy of Equal Employment Opportunity,
as evidenced by its written Equal Employment Opportunity policy that is
contained in its Associate Handbook. A copy of that policy is attached hereto
and marked as Exhibit E. Because LMM does adhere to this policy, we do not
consider an individual's race, color, age, religion, gender, etc. in determining
whether to hire, promote, retain or discipline associates.
19.The Equipment has not been installed as of the date of filing of this petition.
(The signature at the end of this Petition is verification of this statement)
20.The standard Industrial Classification Manual major group within which the
proposed project would be classified, by number and description:
The Standard Industrial Classification (SIC) of 7331 — Direct Mail Advertising,
while used in for select governmental reports, does not fully reflect the full
spectrum of services offered by LMM.
Where permissible, LMM prefers to utilize the North American Industry
Classification System ( NAICS). The following NAICS codes are most applicable
to the services provided by LMM:
• 541860 Direct Mail Advertising
• 561499 All Other Business Support Services
• 561430 Other Business Service Centers
• 323119 Other Commercial Printing
• 518210 Data Processing, Hosting and Related Services
• 492210 Local Messengers and Local Delivery
21. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description:
• 561490 Other Business Support Services
22.The real property where the Equipment will be installed is located in the following
Allocation Area, if any, declared and confirmed by the South Bend
Redevelopment Commission:
Airport Economic Development Area
(Revised 8/2/02) 8
23. Other anticipated public financing for the project including, if any, industrial
revenue - bonding to be sought or already authorized, assistance through the
United States Department of Housing and Urban Development funds from the City
of South Bend, Small Business Association Sections 503 and 504 financing
through the Business Development Corporation of South Bend, Mishawaka, and
St. Joseph County, Indiana; or other public financial assistance, including but not
limited to public works improvements.
LMM has not applied or expect to apply for any of the financing opportunities
described in question 23.
24. Describe how and why the manufacturing equipment to be replaced or the facility
in which Equipment will be added is currently technologically, economically or
energy obsolete and how and why that obsolescence may lead to a decline in
employment and tax revenues:
The equipment described in this petition and detailed in Exhibit D attached
hereto is NEW equipment and is NOT replacing existing equipment.
25.The new manufacturing equipment will be used in the direct production,
manufacture, fabrication, assembly, extraction, mining, processing, refining, or
finishing of other tangible personal property and that the equipment was never
before used by its owner for any purpose in Indiana. The signature at the end of
this Petition is verification of this statement.
26.The following person(s) should be contacted as Petitioners agent regarding
additional information and public hearing notifications:
David C. Rhoa
President
Lake Michigan Mailers, Inc.
3777 Sky King Blvd
Kalamazoo, MI 49009
Office: 269- 488 -9220
Cell: 269- 217 -9043
(Revised 8/2/02) 9
WHEREFORE, Petitioner requests that the Common Council of the City of South Bend,
Indiana, adopt a declaratory resolution designating the area described herein to be an
economic revitalization area for purposes of tangible personal property tax abatement
consideration, and after publication of notice and public hearing, determine
qualifications for an economic revitalization area have been met, and confirm such
resolution. Petitioner herein hereby verifies that the required $250.00 filing fee to cover
processing and administrative costs pursuant to Section 2 -84.7 of the Municipal Code
of the City of South Bend has been paid in full.
Name of Property Owner(s):
David C. Rhoa
President
Lake Michigan Mailers, Inc.
3777 Sky King Blvd
K.qlamazoo, MI 49009
O ice: 26 t -9220
C III- 1 9043
By:
r
(Signed Name)
David C. Rhoa
President
Lake Michigan Mailers, Inc.
(Typed or printed name and capacity of signor if signed by an agent or representative of the
owner)
(Revised 8/2/02)
Filed In ' 0111ce
F — 4 2 'Oo
JOHN VOOfiCE
1 � C1TY CLERK, S0. BE1'D, IN.
CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
Exhibit A
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Hied in Clerk's Office
,
FEB - 4 2008
L YCLEF;K, S0. iti;lD, IN.
f�
amen:
III III
III III
III III
III III
III � III
III III
111 III
III III
ttt 111
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III III
III III
III III
III III
111 III
III III
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RETURN TO:
Property Address:
VACAIJ TLA13D
AUDITOR'S RECORD
Transfer No.
Taxing Unit
Mail Tax Statements to: Date
Tows &r�...V -5
rte,: 0 M �;�. ,f
7
WARRANTY DEED
THIS INDENTURE WI'T�N,ElSSETH
Thomas E. Lowe ��.5 �M " -1e� (AA,
CONVEY(S) AND WARRANT(S) TO c-(;:PV74k— 16-ft4
Playing Mantis, Inc., for Ten Dollars and other valuable consideration the receipt whereof is hereby acknowledged, the
following described REAL ESTATE t. Joseph County, the State of Indiana, to wit:
as recorded April 7,
1100 Wer shown o the recorded Plat ofo LR a Crit!s Fial Ear1IS ion Sax, 9 as Doc e e u08 570 in the Office of the Recorder of St. Joseph County, Indiana.
Subject to taxes for the year 2001, due and payable In 2002, and taxes for all subsequent years.
Subject to covenants, restrictions and easements of record.
IN WITNESS WHEREOF, the Grantor has executed this deed this ran r da of April 0
Thomas E. Lowe
State of Indiana, St. Joseph County ss:
Before me, the undersigned, a Notary Public in and for said County and State, personally appeared the within named
Thomas E. Lowe who acknowledged the execution of the foregoing Deed and who, having been duly swom, stated that
the representations therein contained are true.
WITNESS, my hand and Seal this 11th day of April, 2002.
My /Commissio(n Expires: Aare h 0� 9, aQfr1
L, rn�R >• / Q �G�
PrinrN me of Nota Public
5¢. s.e
Notary Public County and Stdtb of Residence
'--Signature of Notary PLeb
This instrument was prepared by: Frank A. Antonovitz, Attomey- at-Law #2437 -98.
202 S. Michigan St., Ste. 1000; South Bend, IN 46601
6708S01'cn
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CITY Cure,
CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
Exhibit B
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CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
Exhibit C
Photographs of Property Located At
3445 William Richardson Drive, South Bend, 46628
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Southeast Corner of Property Facing Northwest
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Southeast Corner of Property Facing West
Exhibit C
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Photographs of Property Located At
3445 William Richardson Drive, South Bend, 46628
Northeast Corner of Property Facing West
Southwest Corner of Property Facing East
Exhibit C
2
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Photographs of Property Located At
3445 William Richardson Drive, South Bend, 46628
Southwest Corner of Property Facing North
Exhibit C c
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V CIO
CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
Exhibit D
CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
ANTICIPATED EQUIPMENT COMPONENTS
Item
Category
Estimated Cost
Bowe Bell and Howell Criterion IV with WayMark, LDU,
Manufacturing $
67,000.00
$
FASTForward, Compass, 80 Bins, Tray Racks, Tray Drawers,
Bin Displays, Integrated Tray Management System, Cross Over
Unit, Conveyor Extension, Air Compressor, Filter, Tank, Dryer
and Licensed Software
Manufacturing
$
691,127.00
Whittier BagTagger
Manufacturing
$
3,930.00
Pitney Bowes DM1000 and Business Manager System
Manufacturing
$
93,881.00
MBO Right Angle Folder
Manufacturing
$
28,900.00
System Bander
Manufacturing
$
9,500.00
Bowe Bell and Howell System Inserter with Integrated
Accumulator /Folder
Manufacturing
$
168,495.00
Ricoh MP9000 Printer with Finishing Equipment
Ink -Jet Processing System
Engineering Innovation EZ -Flats Processing System
Total Manufacturing Equipment
Data Processing Computer Network and Support Equipment
Total Information Technology Equipment
Logisitical Distribution Equipment
GMC 3/4 Ton Savana Cargo Van
Total Logisitical Distribution Equipment
Grand Total
Exhibit D
Manufacturing $
47,340.00
Manufacturing $
29,000.00
Manufacturing $
67,000.00
$
1,139,173.00
Information Technology $ 11,700.00
$ 11,700.00
Logistics Distribution $ 66,000.00
$ 66,000.00
$ 1,216,873.00
t�' C'i✓
CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
PHOTOS OF ANTICIPATED MAJOR EQUIPMENT COMPONENTS
owl
MW
.6 4
Exhibit D
1
Bowe Bell and Howell
Criterion IV System
Additional equipment not
shown.
Ricoh MP9000 with Finishing
Equipment.
Additional equipment not
shown.
Engineering Innovation
EZ-Flats System.
Additional equipment not
shown.
FCC
4 1 e
CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
PHOTOS OF ANTICIPATED MAJOR EQUIPMENT COMPONENTS
Pitney Bowes
DM1000 Postage
System.
Additional equipment not
shown.
t � ✓� -- - ...��.- ~y , , '� _ Bowe Bell and Howell
r
Pinnacle VIP.
— ` - Additional equipment
`Y r not shown.
Exhibit D
2
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CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
Exhibit E
LAKE
MICHIGAN
MAILERS
Equal Employment Opportunity Policy
As Detailed In
Lake Michigan Mailers, Inc. Associate Handbook
October 1, 2006 Edition, Page 10.
Lake Michigan Mailers, Inc. has a long- standing record of nondiscrimination in employment and
opportunity because of race, color, religion, creed, national origin, marital status, ancestry,
disability, sex, height, weight, or age or other criteria prohibited by state and /or federal law. The
President has issued the following policy stating the Company's views in this matter:
It is the policy of Lake Michigan Mailers, Inc. to:
• Strictly follow personnel procedures that will ensure equal opportunity for all people
without regard to race, color, religion, creed, national origin, sex, age, height, weight,
ancestry, marital status, disability, handicap, veteran or draft status or other criteria
required by state and federal law.
• Comply with all the relevant and applicable provisions of the Americans with Disabilities
Act ( "ADA "). Lake Michigan Mailers, Inc. will not discriminate against any qualified
associate or job applicant with respect to any terms, privileges, or conditions of
employment because of a person's physical or mental disability.
• Make reasonable accommodations wherever necessary for all associates or applicants
with disabilities, or handicaps provided that the individual is otherwise qualified to safely
perform the duties and assignments connected with the job and provided that any
accommodations made do not require significant difficulty or expense.
• Thoroughly investigate instances of alleged discrimination and take corrective action if
warranted;
• Be continually alert to identify and correct any practices by individuals that are at variance
with the intent of the Equal Employment Opportunity Policy.
�,0.
, ,
CITY OF SOUTH BEND
PETITION FOR TANGIBLE PERSONAL PROPERTY
TAX ABATEMENT CONSIDERATION
Exhibit F
Classification
Native Hawaiian or Other Pacific Islander
American Indian or Alaska Native
Black or African American (Not Hispanic or Latino)
Native Hawaiian or Other Pacific Islander
Hispanic or Latino
White (Not Hispanic or Latino)
Total Associates
Classification
Native Hawaiian or Other Pacific Islander
American Indian or Alaska Native
Black or African American (Not Hispanic or Latino)
Native Hawaiian or Other Pacific Islander
Hispanic or Latino
White (Not Hispanic or Latino)
Total Associates
FEB - 4 [008
JCiitJ YOORDE
CITY CLERK, S0.6END, IM.
Estimated Total by Classification
Estimated Total by Classification
2006
2005
2006
2007
0
0
0
0
0
0
8
14
5
0
0
0
6
7
2
58
43
42
72
66
49
Estimated Total by Classification
2005
2006
2007
Full-
Part-
Full- Part-
Full- Part-
Time
Time
Time Time
Time Time
0
0
0
0
0
0
0
0
0
0
0
0
3
5
5
8
2
3
0
0
0
0
0
0
0
6
2
5
2
0
35
23
20
26
30
12
38
34
27
39
34
15