HomeMy WebLinkAboutConfirming Tax Abatement - 3702 West Sample Street, Suite 1125 - Triangle Machine, Inc.RESOLUTION
3849-08
Passed by the Common Council of the City of South Bend, Indiana
April 14,
Attest:
h
zo 08
Presented by me to the Mayor of the City of South Bend, Indiana
April 15, 20 08
City Clerk
President of Common Council
City Clerk
Approved and signed by me Apr i 1 18 20.4$ .
Mayor
RESOLUTION NO. ~ g~ \'~b
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
3702 West Sample Street, Suite 1125
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
Triangle Machine. 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
3702 West Sample Street, Suite 1125, South Bend, Indiana, and which is more
particularly described as follows:
Parcel of land, North West of North East Section 1637 2E. Containing
5.4021 2E acear or less.
and which has Tax Key Number 18-8112-421507 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 sec .
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.
Member of th C mmon Council
PRESENTED ~'~~~~
AiOT APPROVED
ADOPTED -1'~t~~ 8
~i1ed In Glerk'~ Gffice
~~r~AR - 6 2008
,!^I~tS VCC'riCE
CITYCLE.~4, ED. EE'tD, IN.
1200 COLJN'FY-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
March 4, 2008
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:
TRIANGLE MACHINE, INC.
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 a new machine that will enable the company to complete certain work in-house that it is now
outsourcing. The company's location is 3702 West Sample Street (the Sample Street Business Complex,
Suite 1125).
The report contains the Department's findings relative to the above petition. Triangle Machine will be
purchasing and installing new equipment. The total project cost for the equipment is estimated at $75,856.
The project meets the qualifications fora (5) five-year personal property tax abatement and a representative
from Triangle Machine, Inc. will be available to meet with the Committee on Monday, March 24, 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,
Q ~~'f4~~
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELCZaeErtt LEONARD
FAX: 574/235-9697 574/235-9371
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-I83O
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:
TRIANGLE MACHINE, INC.
DATE: March 4, 2008
On March 3, 2008, a petition for personal property tax abatement consideration for property located at
3702 West Sample Street, Suite 1125 was filed with the City Clerk by Triangle Machine, 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
Triangle Machine, Inc. is a manufacturer of precision machined components. The company plans to
purchase and install new equipment (one Haas VF-1 CNC Milling Center) that will give it the ability to
complete work in-house that is currently outsourced to other firms and at the same time increase its
productive capacity.
The project will invest $75,586. Total taxes to be abated during the five-year (5) abatement period are
estimated at $4,636. Total taxes to be paid during the five-year (5) abatement period are estimated at
$2,413.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL S~ PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZA¢ETH LEONARD
FAX: 574/235-9697 574/235-9371
South Bend Common Council
RE: Triangle machine, Inc.
March 4, 2008
Page 2
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create one (1) new, permanent, full-time job in the
first year of production representing a new annual payroll of $30,000. The project will also maintain two
(2) existing, permanent full-time jobs and one (1) existing part-time job representing an annual payroll of
$75,000.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has been granted or been
associated with two (2) previous tax abatement.
Term/Type Resolution No. Date
5-year personal property 3485-OS 7/11/2005-
5-year personal property 2583-98 3/23/1998
2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned
for the proposed project.
3. A review of the South Bend Redevelopment designation areas finds that the property is not located
in any of the development areas; therefore, approval of the tax abatement petition by the South
Bend Redevelopment Commission is not required.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications for afive-year (5) personal property tax abatement under section 2-84.2, Tangible
Personal Property Tax Abatement.
Tax Abatement Schedule prepared for:
TRIANGLE MACHINE, INC.
South Bend Portage 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $75,856
Assume constant tax rate of: 5.1524
Assume constant SRTC rate of: 7.0433
TTV Assessed Gross Less Net Percent Tax
Year TTV% (Year 1-5) Value Tax SRTC Tax Abated Abated
1 0.40 $30,342 $30,342 $1,563 $110 1,453 100% $1,453
2 0.56 $42,479 $42,479 $2,189 $154 2,035 80% $1,628
3 0.42 $31,860 $31,860 $1,642 $116 1,526 60% $916
4 0.32 $24,274 $24,274 $1,251 $88 1,163 40% $465
5 0.24 $18,205 $18,205 $938 $66 872 20% $174
$7,583 $534 7,049 $4,636
Total Taxes Due During Abatement:
Total Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
$7,049
$4,636
$2,413
4-Mar-08
Tax
Paid
$0
$407
$611
$698
$698
$2,413
* -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ulimately be determined by the actual
assessed valuation and the then current tax rates.
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 seg•, and South Bend
Municipal Code Section 2-84.2, et se .for this petition states the following:
1.
~'G
2. The project will create ~ new, permanent jobs within the first year,
representing a new annual payroll of $ ?~~. Of) (~, OCR and will maintain
~, existing permanent full-time and 1 existing part-time jobs
representing an annual payroll of $ ~ ~ D(~~ Oil The projected annual salaries
for each new position created are estimated to be as follows:
~ ~,~ ~ Y ~f,ul,T~, i,`n h 5 ~ ' ~ S, O O O •O O ~ ~ V- ua
~Tot~,~ l psi ~ o o . oO _
3. Estimate the total cost •f the Equipment: ~, ~ ~
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):
NAME ADDRESS INTEREST
C, ~ NC.
?~ 70 ,2 ~ S ~l ~l P (~ S i ,SUITE=, I I ~ ~
So v ~ -~ ~~N ~ ~ ~~ ~~f 661 ~
(Revised 8/2/02) 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. ,
(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):
NAME ADDRESS INTEREST
N ~~
5.
6. The commonly known address of the property where the Equipment is to be
located i :TF~.I~NCT ~:~ MA~~-~f~ LNC-~
3~v~..~'s~t~- ~c.c sT, yv-~~ ~~a s soy -r~ t~~N.~, ~. ~ ~ ~ ~ ~ ~
7. The Key Number of said property is: ~ 8 ~ /l v2L~ ,~ l S U ,
8. Attach the legal description of the property where the equipment is to be
located, marked "Exhibit A," and is hereby incorporated herein.
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 $ ~
(This information may be obtained from the St. Joseph County Assessors office 235-9523)
12. The current use of the real property where the Equipment is to be installed is
3 ^~ o ~ ~ . J'~~~ P~~ s r ~svuT~ ~~V~ , ~ X66 ~9 and the current zoning is
~'Z (use) and ~ (height and area).
(This informat on may be obtained from the Building Department 235-9553)
(Revised 8/2/02) 2
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:
13. List the real and personal proper taxes paid at the location during the
previous five years, whether paid by the current owner or a previous owner:
YEAR REAL PROPERTY TAXES PERSONAL PROPERTY TAXES
~DD~ o -~"3~ 67- ~a.
~2 dD,~ O ~S, S6 ~' ~ a.-d
02 DD D .~.3 ~!~`~/. of7
~o ~ r~ .~ `x/59 . ~ ~
(This information may be obtained from the St. Joseph County Treasurers office 235-9531)
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 pa -time a^n^d the current number of
minori individuals (full and art-time). (~~ f L~-L~1a ~~t ~ia..5-1-~~~------
~,t,~ ~~ ~~~~ v v« s~ t~.rs es '~ c~v uoo (was( .
~.0 b l ' ~r ~ I ~. ~>~ e ~ ~ 0 ~ i U l ( l ~c ~`~ ~~t~
Q i u ~ l L ~ ~~ + ~ a r~ ~l' e
~--od S l Ulf ~ ~~ ~~
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.
N ~~
16. What is your best estimate of the market value of the new Equipment after
installation? $ ~
17. What is your best estimate of the amount of taxes to be abated during each of
the five years after installation? $ /-t- D DD - G D
18. What is the commitment your firm will make to minority employment during
the five years of tax abatement? , , -
(Revised 8/2/02) 3
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:
~~~i~9
21. The Internal Revenue Service Code of Principal Business Activity by which the
proposed roject would be classified, by number and description:
~ s~~_
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
Redeveloument Commission:
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.
Nb~~
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:
~~~-
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.
(Revised 8/2/02) 4
26. The following person(s) should be contacted as Petitioner's agent regarding
additional information and public hearing notifications:
y1 ~ ~ ~ ~r ~~,1~ ~~v~ ~vu~s~,~
Name•
Address: ~3~b ~ (/1~', s~~l -~~ .s -T ~ 1 %~ l~v2S
City, State, Zip Code: S (~ U T ff ~ ~l~l I .~ nl 6 h l ~
Telephone: .~7 ~ - ~ ~ 6 - O / (,~
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):
1_ (~ ~/fir %. ~. /~ l~~
By: ~ -{,
(Signed Na e)
(Typed or printed name and capacity of signor if signed
by an agent or representative of the owner)
,~ price
~iied In Ct~ti~
11,AR " 3 208
C1'N CLEi4.C~ ,. ~-~
(Revised 8/2/02) 5
Exhibit A
Legal description of the property:
Parcel of land, North West of North East Section 1637 2E. Containing 5.4021
2E acear or less.
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