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HomeMy WebLinkAboutConfirming Tax Abatement - Triangle Machine Inc. 3702 W. Sample St. Suite 1125 (5 Yr. Personal Property) RESOLUTION 4231-13 Passed by the Common Council of the City of South Bend, Indiana January 14, 13 20 Attest C City Clerk 1 Attest: % i a\ President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana . January 15, 2013 ci......,ACC:r I City Clerk Approved and signed by me 7'�~H '¢2 �' I S 20 1 .%%:1 :::2_______.., :::7 40041 Maya RESOLUTION NO. A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3702 W 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 W 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 acres or less. and which has Tax Key Number 071-08-16-200-003.000-026 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. P Al I Ji Ai 1 ,1),J 1 • l' . A ember of the ommon Council File In Clerk's Office PaiSENTEI I — `k 13 DEC, - 2012 NOT APPROVES JOHN VUORDE `-- ---4-3 CITY CLERK,SOUTH BEND,IN i�ooPr `-- ---4`-- ---4-3 TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 13-06 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA COMMONLY KNOWN AS 3702 W 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. 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 SpU T$gay'•. 1200 COUNTY-CITY BUILDING �,.\�-_ /�j PHONE 574/235-9371 227 W.JEFFERSON BOULEVARD w �V777;--,EAC FAX 574/235-9021 SOUTH BEND,INDIANA 46601-1830 1865 ..''',, CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT SCOTT FORD, DIRECTOR November 20, 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: TRIANGLE MACHINE 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 purchase of equipment to be located at 3702 West Sample, Suite 1125. The report contains the Department's findings relative to the above petition. The total cost for the equipment is estimated at$87,250. The project meets the qualifications for five-year personal property tax abatement and a representative from Triangle Machine 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, 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 Fax: 574/235-9469 TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: TRIANGLE MACHINE INC. DATE: November 30, 2012 On November 30,2012,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. 7 : The Department of Community and Economic Development has reviewed the petition,investigated the area, and makes the following report. PROJECT SUMMARY Triangle Machine Inc. manufactures machined components for a wide variety"of industries such as aerospace, automotive, and orthpaedic. They intend to replace a sixteen year old machine with a new CNC OKUMA LATHE. The new machine will cost $87,250. South Bend Common Council RE: Tax Abatement for Triangle Machine Inc. November 30, 2012 Page 2 Total Taxes Abated for the (5) five-year abatement period are estimated at$861. Taxes Paid for five years would be $39,254. EMPLOYMENT IMPACT Per the petition,it is estimated that the project will,retain two (2) permanent full-time positions with an annual payroll of$100,000. The project will not create any new positions. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner,Triangle Machine Inc. was granted a five year personal property abatement in 2008. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Sample-Ewing area. . 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for a (5) five-year personal property tax abatement under section 2-84.2, Tangible Personal Property Tax Abatement. f 0 o O NOMNCO o_ 0) NCO co co co F.- O ' p 0 CO LO N N CO Cr N- (0 v M N 0) N O N v CO Lo O N CO N M.CO } co N COO O O N N- CO T- h f_ '-- N v N o o O O M O oo o D S O co N O N g .6 a- C C) 0 0 v !C' u) ::1, -O 000 . N v CO LO 'Cr Z 1- CO Cn v v v Cn .4- V- O Cy ONN- L CO0) a0 .1- MoD d Cn — O00 CO N , N- )C(i OO O) C �- 00 0O 0 M Z N v O M 0 0 co C O co M Cn o 't a-M 0 M C) 0 a, LO N d' CO et Cf) 0 O 0 O 00 CA 0) 0 M N- CnN h M CO 0) 0v CO In CO O N 0 0 F ' LO C0 VI O N- M O N N N 00 } > n N- N N O v 0 (C — (D Q a •,-. 000 'o o N X0000 o , NCn - vin y 3 CDNNCD0 CO Q) O N COO CO N N O M N co r O v co 0 CD v c Z N N 0))_co a CO^ } T N- N - � was ai v0o c .- oo E oe$ I- N-oo CD N- N- o a — e- v O. +T v U ._ U , .c (n w X '� O E o o i. 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'O o O N O C6 0 a) o co vi o I' c m vim) E o X j co Co co 0 HUW U > ay � 0 w u 0 >, o -0 y _ o c 0 o 60 •- io c g Co ° o L m E U > r U 'u)7 TO f() > > O O V) O . ..a)) 0) 0 co U_ Y 4O -0 G, N > co ~ C f`6 CO U s- c as (0 0) (0 Cn -O C u) as 2 X m N m •- Q y co N 0) co X C6 N U) CD >, 0 N Ca E Q CD c ."O..m H Y 7 O 0 a) co N 0) w 0) `O U X c 0) 0) '- 0) co Q re Q CQaz 0- E � UZ mOOV E LU N N y N O C0 1.-.) 3 i cim -I < 0 � t RECEIVED NOV 297017 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. To " ctx ri bu Si 7 .P., -.5 c- n.y i' i 1 (S1' i ie js W e, �au,�-e.- b Li ,, TI e,u r49./V 1 OK 1) Mil l-9 59 A d6 A , X _ . ©/ . - ' ' 1 _ Al. Et M 10 i ''- Bid / ,40 It X A w j : -14-1--6 © (4 niac-11J'vte i s (G>y rs . 2. The project will: (a) create permanent, full-time and permanent, part- time jobs within the first year, representing a new annual payroll of$ , and (b) maintain a existing, permanent, full-time and existing, permanent, part-time jobs representing an annual payroll of$100 CF)r),l7Lfor 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 $ $ Technical $ •0 $ Managerial $4-M00 . 00 $ Administrative $ 1 $ Filed in Clerk,s O (Rev. 5/13/11) 1 JOHN V C� t s' t CITY CLERIC,SOU ,s'0, ;a,iN 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 1\1779- 5. Estimate the total cost of the new Equipment: $ 7� O , D 0 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 (%) T R;IYNcr A'1Y /AI&/ Nom . Loa (b) The follo wing otherperson(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 (%) Ai 1_6 /44( *1 /Nff TN C . (6�d 370 }MPL STreEsT f1/7--F /r £s 7. Give a brief descri ti n of the overall nature aft the business and of the operations occurring at the location for which tax abatement is requested: '67 77 90 di Fin1ZINIMINFINItiAllEirl4 /1 :60. 1 8. The commonly known address of the REAL property where the Equipment is to be located is: ,3 702. llfi, S/9--A2 PLC T. Su/ Ti ; // c" • 50U-1'1 2 wL 17t 66 / 9. The Key Number(s) of said'property is: 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 $ 0 , 00 (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 and the current zoning is (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 2008 P6 / gic90 ,24007/ 68(177, 17 .2, r31 26 ;20142i ‘3q (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 a n d part-time).ime). Fw /I-1e e rapt--tom v, 011 DU)/0 l 02,66)q / (2009 f 2 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. 18. What is your best estimate of the market glued Lthe new Equipment after installation? $ ' l000, 00 M R 7/ DO 19. What is your best estimate of the amount of taxes to be abated during each of the five years after installation? $ 90 00 • 00 (Rev. 5/13/11) 3 • 20. What is the commitment your firm will make to minority employment during the five years of tax abatement? ' y v 11, ;_ , d IA A _ ,,,! : 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 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: !'M /Cs c()I - 3 2- 7/ _5 9j 24. The Internal Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description is: 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: : -2.-C -J'rl.b-e_i I,b r2 01 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. /\17,9- (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 obs•lescence may lead to a decline in employment and tax revenues: ' 0 ,.% •U .' l /.r 0 GLb(� -E0 '4' 1171WMI Jac S `t.f) 0U re 7.1- e,c717)rn-e r`S 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: X1'4- f Address: 3 70 W SA-11,J ( f =7"F /1 -,S— City, State, Zip Code SDil`i" REN(J)/ .i At / I cy Telephone: S _ 2 - o / (,/ 9 E-mail Address: 7linic- i y k Al c,�t,'i-e . E' c 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): FHOd In i e LO C-r i . 1-6- By: (Signed Name) C JO .`as ITY CL,Erikr �� IctP�,IN (Typed or printed name and capacity of signor if signed by an agent or representative of the owner) (Rev. 5/13/11) 5