HomeMy WebLinkAboutConfirming Tax Abatement - Demby Enterprises LLC 212-220 W. Ewing Ave. (7 Year Real Property)Attest:
RESOLUTION
4309 -13
Passed by the Common Council of the City of South Bend, Indiana
December 9,
13
20
Presented by me to the Mayor of the City of South Bend, Indiana
December 10, 20 13
City Clerk
President of Common Council
Approved and signed by me P C( F'-1 3 f Q t O 20 33
City Clerk
RESOLUTION NO. `i 3 o� -(3
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
212 -220 West Ewing Avenue
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A SEVEN (7) YEAR REAL
PROPERTY TAX ABATEMENT FOR
DEMBY ENTERPRISES, LLC
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 212 -220
West Ewing Avenue, South Bend, Indiana, and which is more particularly described as follows:
Lots numbered four (4) through forty -eight (48), both inclusive, as shown on the recorded
plat of Stover- Longley Addition to the City of South Bend as platted by Silas E. Longley
and Burton H. Stover, which plat was recorded February 24, 1915 in Plat Book No. 9 at
page 187 in the Recorder's office of St. Joseph County, Indiana. Also the vacated alley
lying South of Lots 4 to 8, inclusive, in said Stover — Langley Addition and the vacated
alley lying East of Lots 28 to 46, inclusive, in said Stover - Longley Addition. Also the
South half of the vacated alley lying North of Lot No. 9 in said Addition, also, the whole
of vacated Victoria Street as shown in said Addition; also, the whole of vacated Lafayette
Street lying between Ewing Avenue and Fairview Avenue in said Addition, excepting the
West half of that part of Lafayette Street which lies East of Lot Numbered 3 and the
North half of the vacated alley lying South of said Lot No 3; the whole property herein
considered being bounded by a line running as follows: Beginning at the North -west
corner of Section 24, Township No. 37 North, Range No. 2 East; thence running South
1009 feet, thence East 384.7 feet to the West line of the right of way of the Vandalia
Railway; thence North with the said right of way 1009 feet to the North line of said
Section No. 24; thence West 383 feet to the place of beginning, excepting therefrom such
part of said real estate as is now occupied by Ewing Avenue and Fairview Avenue in said
city, excepting also a strip of land 7 feet in width, East and West, taken off from the
entire length of the West side thereof, heretofore conveyed as the East half of a public
alley and excepting also the following: Beginning at a point on the present South line of
Ewing Avenue 7 feet East of the West line of said Section No. 24; thence running East
149'/4 feet to the center of vacated Lafayette Street; thence South 107 feet to a point in
line with the centerline of the alley lying between Lots 1,2,3 and 9 in said Stover - Longley
Addition; thence West 149 '/4 feet to the East line of said Stover - Longley Addition;
thence North 107 feet to the place of beginning.
and which has Key Number 71- 08 -24- 101 - 003.000 -026 be designated 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 Real 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 Real property tax deduction for up to a period of seven (7) years as shown by the
attachment pursuant to Indiana Code 6- 1.1- 12.1 -17 and further determines that the petition, the
Memorandum of Agreement between the Petitioner and the City of South Bend, and the
Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of
South Bend and Indiana Code 6- 1.1 -12 et sea.
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.
PRESENTED I ? AA
NOT APPROVED
ADOPTED
ember dofe Common Council
."n fed in
CITY CLE RN,
O
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTNE DIRECTOR
November 14, 2013
Council Member Gavin Ferlic, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
DEMBY ENTERPRISES, LLC
Dear Council Member Ferlic:
PHONE: 574/235 -9371
FAX: 574/235 -9021
Please find attached the Department of Community Investment's report on a commercial real
property tax abatement petition from the above - referenced Petitioner for property they intend to
rehabilitate due to fire damage identified as 212 -220 W Ewing Avenue. Also attached is a copy of
the petition, Statement of Benefits form, and supporting information.
The report contains the Department's findings relative to the above petition. The Petitioner, Demby
Enterprises, LLC . proposes to rehabilitate the building at a cost of $1,858,024. A representative of
the Petitioner will be available to meet with the Committee on Monday, November 25, 2013.
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,
2
B/� rock eeb
Director Economic Resources
Department of Community Investment
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
ASSISTANT ExECUTNE DIRECTOR PLANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RFSOURCFS
CHRIS FIEIDING JITM KAIN PAMELA C. MEYER BROCKZEER
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
DEMBY ENTERPRISES, LLC
DATE: November 14, 2013
On November 14, 2013, a petition for real property tax abatement consideration for property
identified as 212 -220 West Ewing Avenue was filed with the City Clerk by Demby Enterprises,
LLC. Pursuant to Chapter 2, Article 6, Section 2 -82 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 zoning requirements have been met.
The Department of Community Investment has reviewed the petition, investigated the area, and
makes the following report.
PROJECT SUMMARY
Demby Enterprises LLC actively manages the property. The real estate property is a cold storage
warehouse facility with maintained temperature capabilities between -5 degrees and +40 degrees.
The real estate is currently leased to Plumrose USA. Plumrose occupies 100% of the facility.
Plumrose is a bacon and processed meat manufacturer that uses the property for inventory
management and distribution. There is daily in and out semi -truck activity at the property.
Demby manages the property for their use.
Demby sustained a substantial fire loss in November 2012 rendering the property unusable for its
intended use. The petitioner submitted a report showing the assessed value to be $450,300 but
this assessed value does not reflect the effects of the fire. The petitioner is going to appeal this
assessment and the petitioner indicates that his estimated value of the property is approximately
$225,150. For our apreadsheet purposes the lower assessed value of $225,150 has been used to
calculate the taxes presently on the building.
RE: Tax Abatement for Demby Enterprises, LLC
November 14, 2013
Page 2
The petitioner intends to install new state -of -the -art mechanical and refrigeration equipment to
return the building to its use as a cold warehouse storage and distribution facility. The equipment
is substantial in nature and actually becomes part of the building much like a fixture. For this
reason this application is being processed as a real property abatement rather than a personal
property abatement. Precedent has been set for this process. In a similar situation for another
food manufacturer, a real property abatement was granted for their refrigeration coolers which
were also more like fixtures to the real estate. Additionally electrical service will be enhanced
and upgraded. Building fagade and truck docks will be remodeled for business purposes as well
as beautification. The cost of the project will be $1,858,024.
The project is necessary for economic growth because in its absence Plumrose would relocate
operations outside of our area and eliminate employment. Additionally, without the project the
property is likely to become vacant and remain in disrepair.
Assuming a seven -year abatement term, the total taxes to be abated during that term are estimated at
$161,040. Total taxes to be uaid during the seven -year tern are estimated at $297506.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create two new, permanent full -time positions
over two years. They will retain twenty -three (23) existing permanent full -time positions, with a
total annual payroll of $66,935.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has not been granted
any previous abatements.
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 Development Area.
4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the
qualifications for up to a seven -year real property tax abatement under Section 2 -83 -1,
Warehouse Development in the City -wide District.
14- Nov -13
Public Benefit Points Summary .
` Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Qualify
Earned
Available
Public Benefit Item:
or N
Points
Points
Proiect Related:
1. A.
Redevelop a Site that has Special Needs
N
0
49
B.
Develop Based on Local University Research
N
0
35
C.
Achieve a Physical Element of a Plan
N
0
36
Sub -total Project Related:
0
120
2. Super Size Projects (point values are cumulative),
A.
100% to 199%
Y
25
25
B.
200% to 299%
Y
68
68
C.
300% to 399%
N
0
65
D.
400% and Over
N
0
52
Sub -total Super Size Projects:
93
210
3. Construction Related:
A.
Employ Local Companies
Y
20
20
B.
Purchase Materials from Local Companies
Y
20
20
C.
Require Employees vs. Independent Contract,
Y
19
19
D.
Require Target Wage Levels
Y
22
22
E.
Require Health Benefits
Y
22
22
F.
Require Pension Benefits
Y
18
18
G.
Maintain Affirmative Action Plan
Y
20
20
Sub -total Construction Related:
141
141
4. Wage & Benefit Related:
A.
Pay Target Wage Levels
Y
33
33
B.
Provide Health Benefits
Y
34
34
C.
Provide Pension Benefits
Y
29
P9
D.
Provide Training
Y
28
28
E.
Provide Child Care
N
0
15
F.
Provide Transportation Assistance
N
0
14
G.
Provide Employer Assisted Housing program
N
0
9
Sub -total Wage & Benefit Related:
124
162
5. Workforce Related:
- A.
Create New Jobs
Y
42
42
B.
Retain Existing Jobs
Y
41
41
C.
Maintain Affirmative Action Plan
Y
35
35
D.
Provide Targeted Hiring Preference
N
0
34
Sub -total Workforce Related:
118
152
6. Pay for Municipal Infrastructure: (point values are cumulative):
A.
Pay for Oversizing or Upgrading
N
0
14
B.
Pay for 26 -50% of Extension Cost
N
0
26
C.
Pay for 51-75% of Extension Cost
N
0
39
D.
Pay for 76-100% of Extension Cost
N
0
52
Sub -total Infrastructure Related:
0
131
7. Support a
Municipal Facility:
A.
Support a Municipal Facility
N
0
84
Total Public Benefit Points:
476
1000
` Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Additional Years of Abatement
Multi - family Development Projects:
From
To
Additional Years
0
141
0
142
183
1
184
225
2
226
267
3
268
309
4
310
351
5
352
M3
67
394
& over
7
Other Development Projects:
From
To
Additional Years
0
300
0
301
357
1
358
414
2
415
471
3
472
528
4
529
585
5
586
642
6
643
1000
7
Subtotal from Points Summary: 476
Base Years of Abatement
Additional Years of Abatement:
Total Years of Abatement: 7
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New Project Investments
Calendar Year
TOTAL
Investment Details
2013 2014 2015 2016 2017 2018 2019 2020
Full -Time Permanent Indiana- Resident Positions by Calendar Year
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