Bill No. 22-48 Confirming the Adoption of a Declaratory Resolution Steel Warehouse Tax Abatement

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TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director of Business Development SUBJ ECT: PERSONAL PROPERTY TAX ABATEM ENT PETITION FOR: Steel Warehouse Company LLC DATE: September 7, 2022 On July 29 , 2022 , a petition from Steel Warehouse Company LLC was received and subsequentl y filed with the City Clerk for a personal property tax abatement consideration _ for property located at 2722 W. Tu cker Drive , South Bend, IN 46619. 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 z oning 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 ► Steel Warehouse Company LLC is a family-owned steel service center which began in the City of South Bend in 1947. The company has grown from its single location in South Bend to multiple locations across the United States and the globe. Steel Warehouse is proud to call South Bend its home and headquarters. ► The main South Bend facility on W . Tucker Drive is roughly 170 ,000 SF and staffed with 513 individuals. In addition to its facility on Tucker Drive, the company has facilities at 1217 S. Walnut Street and 1400 Riverside Drive. ► The company is proposing an investment of approximately $3.7 million for the purchase of new industrial cold reducing mill equipment. As part of the project the company will also be constructing a new shipping bay that will cover 3 ,600 square feet with an investment of $216 ,000 . ► 5-year personal property tax abatement with estimated taxes of $45 , 141 for the five years of the tax abatement period. EMPLOYMENT IMPACT Per this petition , it is estimated that the company will: ► Retain five hundred and thirteen (513) jobs with a total annual payroll of $18 ,865 ,889.). ► Create ten to twelve ( I 0-12) new jobs with a minimum total annual payroll of $367,756 .