24-12 Declaratory Resolution - Real Property Tax Abatement Steel Warehouse Company, LLC 2803 Tucker Drive and 2920 Tucker Drive

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TAX ABATEMENT REPORT Filed in Clerk's Office TO: South Bend Common Council APR 0 3 2024 FROM: Erik Glavich, Director, Growth and Opportunity Bianca Tirado City Clerk, South Bend, IN SUBJECT: Industrial Development Real Property Tax Abatement Petition for Steel Warehouse Company, LLC DATE: April 3, 2024 On April 3, 2024, a petition for tax abatements from Steel Warehouse Company, LLC,was filed with the Office of the City Clerk. The petition seeks consideration for an industrial development real property tax abatement for the development of a new building at 2803 and 2920 Tucker Drive in South Bend on Steel Warehouse's Tucker Drive campus. The new building will house a new leveling line and material handling equipment for the company. The petition also seeks consideration for a personal property tax abatement. Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South Bend, the 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 Indiana Code 6 1.1-12.1 and all zoning requirements have been met. The Department of Community Investment has reviewed the petition, investigated the area, and makes the following report. Project Summary • The petitioner will erect a 30,852 square foot building at 2722 Tucker Drive with an expected construction cost of$3,500,000. • This building will be used to house a new leveling line which will require new machinery and equipment with an expected cost of$9,050,000. This cost will be split roughly evenly over 2024 and 2025. • Total investment for the project is projected to exceed $14 million. • The addresses of the impacted parcels are 2803 and 2920 Tucker Drive. These parcels comprise two of 11 parcels on the Steel Warehouse Tucker Drive campus. The company's headquarters are located at 2722 Tucker Drive, and the headquarters' address is commonly used when speaking about the entire campus. Employment Impact • Steel Warehouse Company, LLC will retain 21 workers currently working at this location. • By the end of 2027, the petitioner anticipates the project will result in an additional 11 full-time positions with an estimated total annual payroll of$566,134.