HomeMy WebLinkAboutConfirming Tax Abatement - Curtis Products Inc 228 E. Bronson St. (5 Yr. Personal Property) RESOLUTION
4230-13
Passed by the Common Council of the City of South Bend, Indiana^_
January 14, 1;3
Attest: City Clerk
Attest ‘\ President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
January 15, 2013
.- ■dIP, J City Clerk
Approved and signed by me 04/a4(1- IS 20 3 .
%�"i7
Mayor
RESOLUTION NO. Li.Z3d-(3
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
228 E Bronson Street
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
Curtis Products, 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 228 E.
Bronson Street, South Bend, Indiana, and which is more particularly described as follows:
Lot B Monroe- Sample Replat and Lot E Monroe-Sample Replat
and which has Tax Key Numbers 018-3025-0910; 018-3025-0912; 018-3021-0793; 018-3024-
090101; 018-3092-3513; 018-3025-09401; and 018-35104-03004 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.
it
Member of the Common Council
Fil _d in C erk`i affice
NOV1701
PRESENTED
NOT APPROVED vai Ribe MTh
ADOPTED .,-t_4 —4
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
13-04 A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS 228 E BRONSON STREET TO
BE AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY
TAX ABATEMENT FOR CURTIS PRODUCTS, 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
sooi ,A1110/41i;\
1200 COUNTY-CITY BUILDING °.F!.�.� �4 c PHONE 574/235-9371
227 W.JEFFERSON BOULEVARD `U �� '''' '- 2 i FAx 574/235-9021
.w�.\PEACE�/ a,
SOUTH BEND,INDIANA 46601-1830 .'�+N ��;
•'•,,,"'R� 1865 R
CITY OF SOUTH BEND PETE BUTTIGIEG,MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
SCOTT FORD, DIRECTOR
November 16, 2012
Council Member Henry Davis, 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:
CURTIS PRODUCTS, INC.
Dear Council Member Davis:
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 equipment to be located at 228 East Bronson Street.
The report contains the Department's findings relative to the above petition. The total cost for the
equipment is estimated at $674,678. The project meets the qualifications for a (5) five-year personal
property tax abatement and a representative from Curtis Products, Inc. will be available to meet with the
Committee on Monday, December 10, 2012.
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 235-9278.
Sincerely,
ci46.zty ffCdL
Kathy Hahn
Economic Development Specialist
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Don Inks
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT
PAMELA C.MEYER DONALD E.INKS
574/235-9660 574/235-9371
FAH: 574/235-9469
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
CURTIS PRODUCTS, INC.
DATE: November 16, 2012
On November 15,2012,a petition for personal property tax abatement consideration for property located
at 228 East Bronson Street was filed with the City Clerk by Curtis Products,Incorporated. 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?Deyelopment has reviewed the petition,investigated the
area, and makes the following report.
PROJECT SUMMARY
Curtis Products,Inc. fabricates metal tubing and related assemblies for customers engaged primarily in the
agricultural industries throughout the United States.
The equipment to be purchased includes a Socco electric CNC tube blender, a hose crimping machine,
four tank cleaning lines with hoist and automation,a Manchester M78 end forming machine,a MK2 Pillar
induction braze machine, and an air compressor 60 HP. The total cost of the equipment is estimated to
be $674,678.
South Bend Common Council
RE: Tax Abatement for Curtis Products, Inc.
November 16, 2012
Page 2
Total New Project Taxes for the (5)five-year abatement period are estimated at$58,752. Taxes abated
for five years would be $6,661.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create nine (9) new, permanent full-time positions
with an annual payroll $230,000. The project will maintain 324 permanent full-time and 7 permanent
part-time jobs representing an annual payroll of$10,300,000 for existing employees.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the Petitioner, Curtis Products,
Incorporated,has been granted a five year personal property abatement at 4/01/2000 and a five year
personal property abatement at 7/12/2004.
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 located in
the South Bend Central Development Area.
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.
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CITY OF SOUTH BEND PETITION FOR TANGIBLE
PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment and/or new information
technology equipment, all personal property, located within the City of South Bend,
hereby petition the Common Council of the City of South Bend for personal property
(new manufacturing equipment, new research and development equipment, new
logistical distribution equipment and/or new information technology 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 state the following:
1. Describe the proposed project, including information about the new personal
property identified as manufacturing, research and development, logistical
distribution and/or information technology equipment ("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 importance of the project to your business.
Socco two inch capacity electric CNC tube bender $226,256.00
Hose crimping machine $ 16,122.00
4 tank cleaning line with hoist and automation $245,300.00
Manchester M78 end forming machine $ 95,000.00
MK2 Pillar induction braze machine $ 62,000.00
Air compressor 60 HP $ 30,000.00
2. The project will: (a) create 9 permanent, full-time and ° permanent, part-
time jobs within the first year, representing a new annual payroll of$ 230,000.00 •
and (b) maintain 324 existing, permanent, full-time and 7 existing,
permanent, part-time jobs representing an annual payroll of$10,300,000.00 for
existing employees.
3. Provide current wage information for existing employees including: base rate, cost-
of-living allowances, hazardous-duty pay, incentive pay including commissions and
production bonuses, on-call pay and tips (please show average hourly rate or
range). Do Not Include: back pay, jury duty pay, overtime pay, severance pay,
shift differentials, non-production bonuses, and tuition reimbursements.
Full-Time Part-Time
Laborers $ 12.00 $ 10.54
Technical $ 16.75 $ N/A
Managerial $ 33.00 $ N/A
Administrative $ 20.00 $ N/A
(Rev. 5/13/11) 1
4. The projected annual salary for each new position indicated in item 2 above is
estimated to be as follows (Please attach a separate sheet if more space is
needed):
POSITION (Indicate Full time [FT] or Part time [PT]) EMPLOYMENT WAGE
EL Bender (FT) $12.74/hr
Hose Crimp (FT) $12.49/hr
End form (FT) $10.30/hr
Induction Braze (FT) $11.53/hr
5. Estimate the total cost of the new Equipment: $ 674,678.00
6. (a) The Equipment is owned or to be owned by the following individual(s) or
corporation(s) (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 (%)
Curtis Products, Inc. 228 E. Bronson St. , South Bend, IN 46601 100%
(b) The following other person(s) or corporation(s) lease, intend to lease, or have
an option to buy the Equipment (include corporate information as required in
(6)(a) above, if applicable):
NAME ADDRESS INTEREST (%)
N/A
7. 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:
The Company fabricates metal tubing and related assemblies for customers engaged
primarily inthe agricultural industries throughout the United States.
8. The commonly known address of the REAL property where the Equipment is to be
located is: 702/722 South Carroll Street, South Bend, IN 46601 •
18 3025 0910, 18 3025-0912, 18 3021 0793, 18 3024 090101,
9. The Key Number(s) of said property is: 18 3092 3513, 18 3025 090401, 18 35104.03004(personal
property key)
10. A legal description of the REAL property where the Equipment is to be located is
attached hereto, marked "Exhibit A," and incorporated herein.
11. A map and/or plat describing the REAL property where the Equipment is to be
located is attached hereto, marked "Exhibit B," and incorporated herein.
(Rev. 5/13/11) 2
12. Photographs of the REAL property, taken within two (2) weeks of filing of this
petition are attached hereto, marked "Exhibit C," and incorporated herein.
13. The current assessed valuation of the tangible personal property to be replaced by
the new Equipment is $ None
(This information may be obtained at the St. Joseph County Assessor's office, 235-
9523)
14. The current use of the REAL property where the Equipment is to be installed is
Light Industrial and the current zoning is LI
(This information may be obtained from the Building Department, 235-9553)
15. 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:
YEAR REAL PROPERTY TAXES PERSONAL PROPERTY TAXES
2012 $55,295.76 $42,065.84
2011 $100,427.24 $41,390.24
2010 $97,576.66 $38,828.54
2009 $109,483.79 $43,215.26
2008 $113,773.40 $35,064.32
(This information may be obtained from the St. Joseph County Treasurer's office,
235-9531)
16. 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).
Curtis Products, Inc. is an equal opportunity employer that does not
discriminate in hiring, promotion, discharge, pay, fringe benefits, and other
aspects of employment, on the basis of race, color, religion, sex or national
origin.
17. 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/A
18. What is your best estimate of the market value of the new Equipment after
installation? $ 674,678.00
19. What is your best estimate of the amount of taxes to be abated during each of the
five years after installation? $ See EXHIBIT "D"
(Rev. 5/13/11) 3
20. What is the commitment your firm will make to minority employment during the five
years of tax abatement?
Curtis Products, Inc. is an equal opportunity employer who constantly
seeks out qualified employees regardless of race, color, religion,
sex or national origin.
21. 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)
22. Has your business been granted previous tax abatement(s)? If yes, please
provide type (real and/or personal property), term and date of approval. (Please
attach a separate sheet if more space is needed)
ABATEMENT TYPE TERM DATE OF APPROVAL
Personal Property 5 year 4/1/2000
Personal Property 5 year 7/12/2004
23. The Standard Industrial Classification (SIC) or North American Industry
Classification Systems (NAICS) major group within which the proposed project
would be classified, by number and description is:
332900 Other Fabricated Metal Product Manufacturing
24. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description is:
332900 Other Fabricated Metal Product Manufacturing
25. 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: South Bend Central Development Area
26. 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 Administration Sections 503 and 504 financing
through the Business Development Corporation of South Bend, Mishawaka, and
St. Joseph County, Indiana, Industrial Revolving Fund; or other public financial
assistance, including but not limited to public works improvements.
NONE
(Rev. 5/13/11) 4
27. Describe how and why the manufacturing equipment, research and development
equipment, logistical distribution equipment and/or information technology
equipment to be replaced or the facility in which the 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:
N/A
28. The new manufacturing equipment, new research and development equipment,
new logistical distribution equipment and/or new information technology equipment
to be installed will be used for one (1) or more of the uses listed within the
definitions of New Manufacturing Equipment, New Research and Development
Equipment, New Logistical Distribution Equipment and New Information
Technology Equipment set forth in I.C. 6-1.1-12.1 et seq. and 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.)
29. The following person(s) should be contacted as Petitioner's agent regarding
additional information and public hearing notifications:
Name: Jeffrey M. McGowan, CPA
Address: 210 S Michigan Street, Suite 200
City, State, Zip Code South Bend, IN 46601
Telephone: 574-289-4011
E-mail Address: lmcgowan@klcpas.com
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):
Curtis Products, Inc.
IaA P 4 v�
By: , i1,, ll ►i l..lIl �� genres r
(Sig ta'e)
f M McGowan, Tax Representative
e f P
(Typed or printed name and capacit ea in --clews mice
an agent or representative of the o ��
•
(Rev. 5/13/11) 5
=NOV 1 5 Z012
JOI4N VOOWWE
CITY CLERK,SOUTH SEND,IN