20-34 Designating Real Property Tax Abatment for Tri-Pac, Inc

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TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Dan Buckenmeyer, Director of Business Development SUBJECT: REAL & PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: Tri-Pac, Inc. DATE: September 23, 2020 On Wednesday, August 26, 2020, a petition from Tri-Pac, Inc. was received and subsequently filed with the City Clerk for real and personal property tax abatements consideration for property located at 4303 Technology Drive, South Bend, IN 46628. 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 ➢ Tri-Pac has been shifting primary focus towards Pharmaceutical and over the counter (OTC) manufacturing, a new business area that is quickly growing for the company along with Personal Protective Equipment (PPE) and hand sanitizers. The company donated thousands of PPE and hand sanitizers to local hospitals and is now entered in the Indiana PPE portal to help more companies. 40,000 sq.ft. building with purchase price of $2,125,000 and an additional $1,000,000 in planned private investment for building upgrades to operate manufacturing facility. ➢ Additional private investment in personal property — new manufacturing equipment with purchase price of $2,000,000. ➢ Current and estimated property taxes for a 10 -year period with and without private investment: Property Current Estimated Tax w/oI Est. Tax with Private Annual Private Investment for i Investment for 10 Property Tax 10 Years Years Buildine & Renovation $29.703 1$297.030 $411.502