09-13-04 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 13,2004 d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION II. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration, the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6-1. 1-12. 1-4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community and Economic Development, and the Community and Economic Development Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of five (5) years. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5-3-1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Karen L. White Member of the Common Council Councilmember Kelly, reported that the Community and Economic Development Committee held a Public Hearing on these bills this afternoon and voted to send them to the Council with a favorable recommendation. Mr. Gerald Lerman, Vice-President, Steel Warehouse, 1121 E. Woodside, South Bend, Indiana made the presentation for these bill. Mr. Lerman advised that the first abatement request is for a real property tax abatement to allow for a 12,800 square foot building addition to their Tucker Drive location. This expansion will allow for expanded manufacturing, warehousing, and related uses. The estimated cost of the building addition is $638,000. The second abatement request is for personal property tax abatement for new manufacturing equipment to be installed at the Tucker Drive location. The third abatement request is also for personal property abatement for new equipment to be installed at their Riverside Drive location. The new material handling equipment that will be installed at both the Tucker Street and Riverside Drive addresses will allow for processing and handling steel and steel products. The total cost of the new equipment is estimated to be between $2.2 and$4 million. Mr. Lerman stated that Steel Warehouse Co. Inc. is a steel service center specializing in flat rolled, low carbon steel, with operations involving slitting, leveling, pickling, temper rolling, and shearing. He advised that the projects will create nine (9)new permanent jobs within the first year, representing a new annual payroll of$250,660. The project is also expected to retain four hundred and thirty-nine (439) full-time jobs,representing an annual payroll of $19,315,000. The projected annual salary for each new position created is $27,851. 26