SUBSTITUTE Bill No. 23-08 Tax Abatement Deductions & Waiver of Noncompliance for Property at 5245 Dylan Drive

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chase Plastics' • Redefining Resin Distribution' 6467 Weldon Center Drive,Clarkston,MI 48346 248.620.2120 I ChasePtastics.cem Filed it f't , p February 17, 2023 FEB c : LS South Bend Common Council DAWN M. J-4 County City Building, 4th Floor CITY CLERK,SO:.� N BEND, !N South Bend, IN 46601 RE: Tax Abatement Waiver of Noncompliance Dear Common Council Members, On May 13,2019, CBK Land Development,LLC,a wholly owned subsidiary of Chase Plastics Services, Inc.,was granted a real property tax abatement for an extension to our facility at 5245 Dylan Drive in South Bend. The Common Council approved Resolution No. 4779-19, which established a 7-year abatement. At the time the petition for abatement was filed,estimated costs for the expansion project were$3.5 million. Construction began in June 2019 to add approximately 80,000 sq ft. to our facility. We completed the project in May 2020. As of today,Chase Plastics has committed $3.63 million to the project. As a result of the expansion,the company experienced significant growth. In 2020,the facility's combined shipping and receiving volume increased by eleven million pounds compared to 2019. This expansion has allowed us to reinvest in our employees by increasing our starting wage rate as market competitive- plus and increase our Variable Compensation Bonus plan 6%, which has deepened our employees' sense of job security. Since the project's commencement, Chase Plastics has retained 18 full-time jobs and added 1 new full-time job. With this retainage,we have increased the annual salary by $208,000,excluding benefits. Our investment in local businesses has grown, as well. The additional investment not only includes the initial movement and installation of equipment and racking but has also provided for the purchase of new equipment, along with creating a greater need for continuous support of maintenance for both the property and systems within the building. Today,we are requesting a waiver of noncompliance for failure to file Forms CF-1/RE and 322/RE for tax years 2020 and 2021. The forms were incorrectly filed with the personal property tax return with the assessor's office when they should have been filed with the auditor's office separately.This was a regrettable oversight that has been corrected for tax year 2022. We are requesting the Common Council approve a two-year waiver of noncompliance of filing tax deduction for tax years 2020 and 2021.