HomeMy WebLinkAboutConfirming Tax Abatement - 4201 Linden Avenue - Foxtrot Realty CorporationRESOLUTION
3891-08
Passed by the Common Council of the City of South Bend, Indiana
August 11, 20 8
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
City Clerk
President of Common Council
August 12, 20 08
Approved and signed by me August 13 , 20 0 8
`~.~-
City Clerk
RESOLUTION NO. 3 ~` 9 f - 08`
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
4201 LINDEN AVENUE
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF UP TO A SEVEN (7) YEAR REAL
PROPERTY TAX ABATEMENT FOR
FOXTROT REALTY CORPORATION
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
4201 Linden Avenue, South Bend, Indiana, and which is more particularly described as
follows:
"A part of the east half of the southwest quarter of Section 4, Township 37 North,
Range 2 East, South Bend, Indiana, more particularly described as follows, viz:
Beginning at a point on the south line of said Southwest quarter 578.67 feet west
of the southeast corner of said southwest quarter; thence continuing westerly
along said south line of southwest quarter with an assumed bearing of North
89°42'30" West, 741 feet more or less to the west line of the east half of said
southwest quarter, 1344 feet more or less to the southerly right-of--way line of the
New York Central Railroad Company; thence South 79°18'30" East along said
southerly right-of--way line 758.3 feet, more or less to a point which is North
00°08' 15" East 1207.34 feet to the place of beginning, excepting from the above
described tract a strip of land 40 feet in width, north and south, taken off of and
from the entire width of the south and thereof for Linden Avenue
and which has Key Number 018-2193-7257, 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 a period of up to seven (7)
years, 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 seq.
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.
r--~
Member of the, Co on Council
PRESENTED ~ -~ ~'~
NOT APPROVED
ADOPTED ~-~ ~~`~
Find In Clerk's Offece
JUL 2 4 2008
JCr *~ VQORDE
CITY CLERK, SQ. eEN~, IN.
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
08-72 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY
OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4201 LINDEN
AVENUE AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF UP TO A SEVEN (7) YEAR REAL PROPERTY TAX
ABATEMENT FOR FOXTROT REALTY CORPORATION
Respectfully report that they have examined the matter and that in their opinion, this bill is
being recommended to the full Council with a favorable recommendation.
Oliver Davis
Chairperson, Committee of the Whole
pUTH ~
Vu` ~ ~~
y ~\ R°'/
Community & Economic Development ~~~a
1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 • Phone 574/235-9371 • Fax 574/235-9021
To: Derek Dieter, Chairperson, Community and Economic and Development
Committee
From: Bob Mathia ~-,~
Subject: Foxtrot Realty Corporation (GTA Containers, Incorporated)'
Date: July 24, 2008
A substitute declaratory resolution is being submitted for the real property tax abatement submitted
by Foxtrot Realty Corporation (GTA Containers, Incorporated) on July 9, 2008. After filing their
petitions for tax abatement, Foxtrot Realty (GTA Containers), submitted additional information for
calculating the number of Public Benefit Points used to determine the length of Foxtrot's real
property tax abatement term. Foxtrot is the real estate holding company for GTA Containers. The
additional information contains: (a) Foxtrot's/GTA's commitment to provide targeted hiring
preference for residents of Census Tracts that have the highest unemployment or highest percentage
of low and moderate income individuals; (b) a description on how they will work to fulfill this
commitment; and (c) a census of their current employees. The petitioners also provided an
explanation on the source for the metal building to be constructed in their project and notified us that
Boswell Drywall was being replaced by the prime contractor, Majority Builders. Boswell was the
only construction company on the project to use independent contractors as employees rather than
direct hire workers (See Question # 23 in Foxtrot's tax abatement petition.). Majority uses only direct
hire employees. The Department of Community and Economic Development has reviewed the
additional information submitted and found that the petitioner, Foxtrot Realty, qualifies for a one
year increase in the term of its proposed real property tax abatement from six (6) years to seven (7)
years. With this increase the total taxes to be abated during the (7) seven-year real property
abatement period are estimated at $213,032. Total taxes to be ,paid during the (7) seven-year
abatement period are estimated at $851,108.
The additional information provided by Foxtrot Realty/GTA Containers is attached along with a
revised Public Benefits Points Summary table and a revised spreadsheet showing the tax abatement
calculations for seven years. Please call me at 235-5835 if you have any questions.
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
Memo.To.Increase.Term.7.24.08 What We Do Today Makes A Difference !
TARGETED HIRING PROGRAM
GTA Containers, Inc. will begin hiring employees for its expanded operation
immediately so that they will be completed trained by the time the new building is ready
for occupancy.
During the period of tax abatement, when hiring decisions are made and equally qualified
candidates are present, GTA Containers, Inc. agrees to give preference to the candidate
residing at a "Distressed Census Tract" address.
As to locating job applicants, GTA will continue to place help wanted ads in local
newspapers and make current employees (many employees live in "Distressed Census
Tract" areas) aware of job openings and will begin posting job openings on the
WorkOne Indiana Career Connect website. Should these methods not generate sufficient
job applicants, we will also send job postings to social service organizations which serve
the "Distressed Census Tract" residents, such as Food Bank of Northern Indiana, REAL
Services, Salvation Army, Goodwill Industries and YWCA.
Employee Census
As of 12/31/07, GTA Containers, Inc. had 23 employees of
which 22 were minorities
As of 7/8/08, GTA Containers, Inc. had 31 employees of
which 29 were minorities
Of the 31 employees, 14 live within the "2000 Distressed
Census Tracts" as designated by the City Council.
GTA has employees residing on Albert, Camden, Dunham,
Gladstone, Huron, N. Kenmore, S. Olive, Phillipa,
Poland, W. Sample and Webster Streets.
Average years of service for our production employees is 3
years. Our Production Foreman, a minority, has been
with GTA since 1998.
i ~ r 9
~~~~ -~ ~
July 17, 2008
GTA Containers
4201 Linden Avenue
South Bend, Indiana 46619
Attention: Glenda
Reference: Tax Abatement
Glenda:
I want to clarify that we are purchasing the pre-engineered building from Varco-Pruden, the
same company that supplied your previous building. There are no pre-engineered building
manufacturers physically located in St. Joseph County, indeed only two or three dozen in the
entire United States. Majority Builders is the exclusive St. Joseph County dealer for all Varco-
Pruden products. We sell and distribute their products.
Sincerely,
Majority Builders, Inc.
,2~ ~~~ (~
Rick Slagle
President
62900 U.S. 31 South South Bend, tN 46614 majoritybuilders.com Tel: 574/291-2091 Fax: 574/291-7472
23-Jul-08
Foxtrot Realty Corporation
Public Benefit Points Sum mary
Qualify Earned Available
Public Benefit Item: Y 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 (aoint values are cumulative):
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% Y 65 65
D. 400% and Over Y 52 52
Sub-total Super Size Projects: 210 210
3. Construction Related:
A. Employ Local Companies Y 20 20
B. Purchase Materials from Local Companies N 0 20
C. Require Employees vs. Independent Contracts N 0 19
D. Require Target Wage Levels N 0 22
E. Require Health Benefits N 0 22
F. Require Pension Benefits N 0 18
G. Maintain Affirmative Action Plan N 0 20
Sub-total Construction Related: 20 141
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 29
D. Provide Training N 0 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: 96 162
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 Y 34 34
Sub-total Workforce Related: 152 152
6. Pay for Municipal Infrastructure:(point values are cumulative):
A. Pay for Oversizing or Upgrading N
B. Pay for 26-50% of Extension Cost N
C. Pay for 51-75% of Extension Cost N
D. Pay for 76-100% of Extension Cost N
Sub-total Infrastructure Related:
7. Support a Municipal Facility:
A. Support a Municipal Facility N
Total Public Benefit Points:
'Qualification for each Public Benefit Item based on best available i
good faith determination if no information available.
0 14
0 26
0 39
0 52
0 131
0 84
478 1000
nformation at time of application or
Foxtrot Realty Corporation
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
352 393 6
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: 478
Base Years of Abatement 3
Additional Years of Abatement: 4
Total Years of Abatement:
7 YEAR 18-Jul-08
GTA Containers (Foxtrot Realtyl
South Bend Portage Township Real Property Tax Abatement Schedule'
Tax Key Number ~ e-219-~2~1€
Current Assessed Value: 1;852,30b
Estimated Project Cost: 2,$i1Q,00U 10.00%
Current Without 100% 85% 71% 57% 43% 29% 14%
Assessed Value: AV & Tax Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Current Assessed Value 100% 1,852,300 1,852,300 1,852,300 1,852,300 1,852,300 1,852,300• 1,852,300 1,852,300 1,852,300
Base Assessed Value 85%° 2,380,000 2,380,000 2,380,000 2,380,000 2,380,000 2,380,000 2,380,000 2,380,000
Less Abatement Deduction 0 (2,380,000) (2,023,000) (1 689,800) (1,356 600) (1 023,400) (690 200) (333 200)
Net Assessed Value 1,852,300 4,232,300 1,852,300 2,2o9,30D 2,542,500 2,875,700 3,208,900 3,542,100 3,899,100
ProoertV Taxes:
Assume constant tax rate of 4.3592% 4.3592% 4.3592% 4.3592% 4.3592% 4.3592% 4.3592% 4.3592% 4.3592%
Gross Tax (tax rate x net assessed value) 80,745 184,494 80,745 96,308 110,833 125,358 139,882 154,407 169,970
Less Circuit Breaker Credit (14,213) (32,474) 0 0 0 0 0 (6 473) (19 922)
Net Tax 66,533 152,020 80,745 96,308 110,833 125,358 139,882 147,935 150,048
Circuit Breaker Cap
Circuit Breaker 3.0000% 55,569 126,969 126,969 126,969 126,969 126,969 126,969 126,969 126,969
Debt Service 0.5919% 10,964 25,051 10,964 13,077 15,049 17,021 18,993 20,966 23,079
Circuit Braker Cap 66,533 152,020 137,933 140,046 142,018 143,990 145,962 147,935 150,048
New Combined Net
Existing Project Existing & New Tax Tax
Year Taxes Taxes Taxes Abated Paid
1 66,533 85,487 152,020 71,275 80,745
2 66,533 85,487 152,020 55,712 96,308
3 66,533 65,487 152,020 41,187 110,833
4 66,533 85,487 152,020 26,662 125,358
5 66,533 85,487 152,020 12,138 139,882
6 66533 85,487 152,020 4,085 147,935
7 66,533 85,487 152,020 1,972 150,048
Totals 465,729 598,411 1,064,140 213,032 851,108
'This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actual assessed valuation and the then current tax rates
Tax Abatement Schedule prepared for: ~a-Jul-os
GTA Containers (Fopxtrot Realty)
South Bend Portage Township 7 Year Real Property Abatement Schedule*
Total estimated Project Cost: $2,800,000
Base Assessed Value: $2,380,000 Existing AV 1,852,300
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 4.9205%
Assume constant SRTC of: 19.4243%
Total Taxes
Assessed Gross Less Net Percent Tax Tax Existing Old & New
Year Value Tax SRTC Tax Abated Abated Paid Tax Paid
1 $2,380,000 $117,108 $22,747 $94,361 100% $94,361 $0 73,439 73,439
2 2,380,000 117,108 22,747 94,361 85% 80,207 - 14,154 73,439 87,593
3 2,380,000 117,108 22,747 94,361 71% 66,996 27,365 73,439 100,804
4 2,380,000 117,108 22,747 94,361 57% 53,786 40,575 73,439 114,014
5 2,380,000 117,108 22,747 94,361 43% 40,575 53,786 73,439 127,225
6 2,380,000 117,108 22,747 94,361 29% 27,365 66,996 73,439 140,435
7 2,380,000 117,108 22,747 94,361 14% 13,211 81,150 73,439 154,589
$660,527 $376,501 $284,026 $514,071 $798,097
Total Taxes Due During Abatement: $660,527
Total Taxes Abated During Abatement: 376,501
Total Taxes Paid During Abatement: 284,026
-This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
GTA Containers (Foxtrot Realty)
Comparison of Taxes Abated & Paid
Before HEA 1001 & After 1001
Before HEA 1001
Year
1
2
3
4
5
6
7
Totals
After HEA 1001
Existing AV 1,852,300
New Project Cost 2,800,000
New Project AV 2,380,000
New Combined Net
Existing Project Existing Tax Tax
Taxes Taxes & New Taxes Abated Paid
73,439 94,361 167,800 94,361 73,439
73,439 94,361 167,800 80,207 87,593
73,439 94,361 167,800 66,996 100,804
73,439 94,361 167,800 53,786 114,014
73,439, 94,361 167,800 40,575 127,225
73,439 94,361 167,800 27,365 140,435
73,439 94,361 167,800 13,211 154,589
514,071 660,527 1,174,598 376,501 798,097
New Combined Net
Existing Project Existing Tax Tax
Year Taxes Taxes & New Taxes Abated Paid
1 66,533 85,487 152,020 71,275 80,745
2 66,533 85,487 152,020 55,712 96,308
3 66,533 85,487 152,020 41,187 110,833
4 66,533 85,487 152,020 26,662 125,358
5 66,533 85,487. 152,020 12,138 139,882
6 66,533 85,487 152,020 4,085 147,935
7 66,533 85,487 152,020 1,972 150,048
Totals 465,729 598,411 1,064,140 213,032 851,108
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SouTrt BEND, INDIANA 46601-1830
PHONE 574/ 235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~L ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
July 15, 2008
Council Member Derek D. Dieter, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
Foxtrot Realty Corporation (GTA Containers, Inc.)
Dear Council Member Dieter:
Please find attached the Department of Community & Economic Development's report on a
commercial real property tax abatement petition for the above-referenced petitioner for construction
of additional manufacturing capacity located at 4201 Linden 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,
Foxtrot Realty Corporation (GTA Containers, Inc.) proposes to construct and equip an approximate
90,000 square building to provide additional space for the manufacture of collapsible pillow tanks
for fuel or water storage. Foxtrot Realty Corporation is the real estate holding company for GTA
Containers, Incorporated. Foxtrot Realty Corporation is seeking asix-year real property tax
abatement, and a representative of Foxtrot Realty Corporation (GTA Containers, Inc.) will be
available to meet with the Committee on Monday, July 28, 2008.
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 235-5835.
Sincerely,
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HL PROGRAM
PAMELA C. MEYEA DONALD E. INKS MANAGEMENT
5741235-9660 574/235-9371 EL~zAeErH LEONARD
Fax: 574/235-9697 574!235-9371
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTI1 BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574! 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~ ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BOB MATHIA
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
FOXTROT REALTY CORPORATION (GTA CONTAINERS, INC.)
DATE: July 15, 2008
On July 9, 2008, a petition for real property tax abatement consideration for property located at 4201
Linden Avenue was filed with the City Clerk by Foxtrot Realty Corporation the real estate holding
company for GTA Containers, Incorporated. 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 and Economic Development 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 and Economic Development has reviewed the petition, investigated
the area, and makes the following report.
PROJECT SUMMARY
Foxtrot Realty Corporation/GTA Containers, Inc. are proposing to construct and equip a 90,000
square foot building on an undeveloped portion of a 21 acre site that they already own. The building
will be owned by Foxtrot Realty and leased to GTA Containers. The project will enable GTA to
more than double its current manufacturing capacity, allowing the company to bid on large, multi-
year contracts with eh U. S. Department of Defense and also have the capacity for non-military
contracts. GTA Containers manufactures collapsible pillow tanks for fuel or water storage. The
containers range in size from 3,000 to 210,000 gallons. The estimated cost of the building is
$2,200,000 - $2,800,000. GTA Containers will own the equipment placed on the site.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HL PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELtzaae7H LEONARD
FAX: 5741235-9697 574/235-9371
South Bend Common Council
RE: Foxtrot Realty Corporation (GTA Containers, Inc.)
July 15, 2008.
Page 2
GTA was recently offered two five-year contracts from the U.S. Army. They had been expecting
only one. With either one of the contracts they could have handled production in their current
facility, but both contracts together generate the need for additional space. One contract was
executed on July 11, 2008. The second contract arrived on July 14 and was executed today (July 15,
2008). Due to testing requirements contained in the second contract, time is of the essence in
completing construction of the new building and installation of necessary equipment.
Total taxes to be abated during the (6) six-year abatement period are estimated at $187,187. Total
taxes to be paid during the (6) six-year abatement period are estimated at $713,709.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create six to eleven (6 -11) new, permanent,
full-time jobs within the first year representing a new annual payroll of $160,000 to $260,000. The
project will retain thirty-one (31) existing permanent, full-time jobs (of which 29 are minority
employees) with an annual payroll of $1,125,000.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been granted or
associated with four (4) previous tax abatements and it has applied for afive-year personal
property tax abatement along with this application.
Term/Type Resolution No. Date
10-year real property 3008-01 5/14/2001 (Foxtrot)
5-year personal property 3009-01 5/14/2001 (GTA)
6-year real property 3173-03 3/24/2003 (Foxtrot)
5-year personal properly 3174-03 3/24/2003 (GTA)
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 Airport Economic Development Area, which is a Tax Incremental Allocation Area;
therefore, the petition for real property tax abatement must first be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner does meet the
qualifications for asix-year (6) real property tax abatement under Section 2-82, Industrial
Development, City-wide General Standards.
10-Jul-08
Foxtrot Realty Corporation
Public Benefit Points Sum mary
Qualify Earned Available
Public Benefit Item: Y 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 Proiects (point values are cumulative):
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% Y 65 65
D. 400% and Over Y 52 52
Sub-total Super Size Projects: 210 210
3. Construction Related:
A. Employ Local Companies Y 20 20
B. Purchase Materials from Local Companies N 0 20
C. Require Employees vs. Independent Contracts N 0 19
D. Require Target Wage Levels N 0 22
E. Require Health Benefits N 0 22
F. Require Pension Benefits N 0 18
G. Maintain Affirmative Action Plan N 0 20
Sub-total Construction Related: 20 141
4. Wage 8 Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits Y 29 29
D. Provide Training N 0 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 8 Benefit Related : 96 162
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:(pointualues are cum ulative):
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 Po ints: 444 1000
'Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Foxtrot Realty Corporation
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
352 393 6
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: 444
Base Years of Abatement
Additional Years of Abatement:
Total Years of Abatement: 6
6 YEAR
GTA Containers
11-Jul-08
South Bend Portage Township Real Property Tax Abatement Schedule"
Tax Key Number
Current Assessed Value:
Estimated Project Cost:
12-2193-7257'
1.252,300
2200.000
Current Without 100% 85% 66% 50% 34% 17%
Assessed Value: AV 8 Tax Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Current Assessed Value 100% 1,852,300 1,852,300 1,852,300 1,852,300 1,852,300 1,852,300 1,852,300 1,852,300
Base Assessed Value , , 8~%~~~'~' 2,380,000 2,380,000 2,380,000 2,380,000 2,380,000 2,380,000 2,380,000
Less Abatement Deduction 0 (2,380,000) (2,023,000) (1,570,800) (1,190,000) (809,200) (404,600)
Net Assessed Value 1,852,300 4,232,300 1,852,300 2,209,300 2,661,500 3,042,300 3,423,100 3,827,700
Prooertv Taxes:
Assume constant tax rate of
4.3015% 4.3015% 4.3015% 4.3015% 4.3015% 4.3015% 4.3015% 4.3015%
Gross Tax (tax rate x net assessed value) 79,677 182,052 79,677 95,033 114,484 130,865 147,245 164,649
Less Circuit Breaker Credit (13,963) (31,903) 0 0 0 0
(1,527)
(16,715)
Net Tax 65,714 150,149 79,677 95,033 114,484 130,865 145,717 147,933
Circuit Breaker Cap
Circuit Breaker 3.0000% 55,569 126,969 126,969 126,969 126,969 126,969 126,969 126,969
Debt Service 0.5477% 10,145 23,180 10,145 12,100 14,577 16,663 18,748 20,964
Circuit Braker Cap 65,714 150,149 137,114 139,069 141,546 143,632 145,717 147,933
New Combined Net
Existing Project Existing & New Tax Tax
Year Taxes Taxes Taxes Abated Paid
1 65,714 84,435 150,149 70,473 79,677
2 65,714 84,435 150,149 55,116 95,033
3 65,714 84,435 150,149 35,665 114,484
4 65,714 84,435 150,149 19,285 130,865
5 65,714 84,435 150,149 4,432 145,717
6 65,714 84,435 150,149 2,216 147,933
Totals 394,284 506,612 900,896 187,187 713,709
'This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actual assessed valuation and the then current tax rates.
Tax Abatement Schedule prepared for:
GTA Containers
11-Jul-08
South Bend Portage Township 6 Year Real Property Abatement Schedule*
Total estimated Project Cost: $2,800,000
Base Assessed Value: $2,380,000 Existing AV 1,852,300
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 4.9205%
Assume constant SRTC of: 19.4243%
Total Taxes
Assessed Gross Less Net Percent Tax Tax Existing Old & New
Year Value Tax SRTC Tax Abated Abated Paid Tax Paid
1 $2,380,000 $117,108 $22,747 $94,361 100% $94,361 $0 73,439 73,439
2 2,380,000 117,108 22,747 94,361 85% 80,207 14,154 73,439 87,593
3 2,380,000 117,108 22,747 94,361 66% 62,278 32,083 73,439 105,522
4 2,380,000 117,108 22,747 94,361 50% 47,181 47,180 73,439 120,619
5 2,380,000 117,108 22,747 94,361 34% 32,083 62,278 73,439 135,717
6 2,380,000 117,108 22,747 94,361 17% 16,041 78,320 73,439 151,759
$566,166 $332,151 $234,015 $440,632 $674,647
Total Taxes Due During Abatement: $566,166
Total Taxes Abated During Abatement: 332,151
Total Taxes Paid During Abatement: 234,015
* -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
GTA Containers
Comparison of Taxes Abated & Paid
Before HEA 1001 & After 1001
Existing AV 1,852,300
New Project Cost 2,800,000
New Project AV 2,380,000
Before HEA 1001
New Combined Net
Existing Project Existing Tax Tax
Year Taxes Taxes & New Taxes Abated Paid
1 73,439 94,361 167,800 94,361 73,439
2 73,439 94,361 167,800 80,207 87,593
3 73,439 94,361 167,800 62,278 105,522
4 73,439 94,361 167,800 47,181 120,619
5 73,439 94,361 167,800 32,083 135,717
6 73,439 94,361 167,800 16,041 151,759
Totals 440,632 566,166 1,006,798 332,151 674,647
After HEA 1001
New Combined Net
Existing Project Existing Tax Tax
Year Taxes Taxes & New Taxes Abated Paid
1 65,714 84,435 150,149 70,473 79,677
2 65,714 84,435 150,149 55,116 95,033
3 65,714 84,435 150,149 35,665 114,484
4 65,714 84,435 150,149 19,285 130,865
5 65,714 84,435 150,149 4,432 145,717
6 65,714 84,435 150,149 2,216 147,933
Totals 394,284 506,612 900,896 187,187 713,709
CITY OF SOUTH BEND
PETITION FOR REAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of real property, located within the City of South Bend, hereby petition the
Common Council of the City of South Bend for real property tax abatement consideration and
pursuant to I.C., 6-1.1-12.1-1, et seQ., and South Bend Municipal Code Sec. 2-76 et seq., for this
petition states the following:
Describe the proposed redevelopment or rehabilitation project, including information about
physical improvements to be made, the proposed use of the improvements, and a general
statement as to the importance of the project to your business:
Foxtrot Realty Corporation owns 21 acres at 4201 Linden Ave of which approximately 6 acres
is currently developed as a manufacturingfacility and leased to GTA Containers, Inc.
Foxtrot proposes to build a 90, 000 square foot building on an undeveloped portion of the 20
acre site and lease it to GTA Containers, Inc. (an affiliated company). GTA Containers, Inc.
will continue using the existing building and expand manufacturing operations into the
proposed building. The proposed building will enable GTA to more than double its current
manufacturing capacity, allowing the company to bid on large, multi year contracts with the
US Dept of Defense and also have capacity for non-military related contracts
Land Size existing acres; Building Size 90, 000 sq.ft.
2, Describe the overall nature of the business and of the operations occurring at the Property
(attach additional sheet if more space is needed):
GTA Containers, Inc.- manufactures collapsible pillow tanks for fuel or water storage. The
containers range in size from 3, 000 gallons to 210, 000 gallons. GTA's primary customer is
the United States Department of Defense. GTA has also built emergency safety tents for the
underground mining industry. The purpose of the proposed building would be to expand its
manufacturing capacity.
Estimate the dollar value of the project (excluding land): $2,200,000-$2,800,000
4. The current assessed valuation of the real property before rehabilitation, redevelopment,
economic revitalization, or improvement: $
Key #018-2193-7257: Land 70, 200; Improvements; 1, 782,100
(Rev 10/23/06)
S. (a). The real property for which tax abatement consideration is petitioned (Property) is owned
or to be owned by the following individuals or corporations (if the business organization
is publicly held, indicate also the name of the corporate parent, if any, and the name under
which the corporation has filed with the Securities and Exchange Commission):
NAME ADDRESS INTEREST (%)
Foxtrot Realty Corporation 4201 Linden Ave 100%
South Bend, IN 46619
(b) The following other person(s) lease, intend to lease, or have an option to buy the Property
(include corporate information as required in 5(a) above, if applicable);
NAME ADDRESS Il~l'TEREST(%)
GTA Containers, Inc. 4201 Linden Ave 100%
South Bend, IN 46619
6. The commonly known address of the Property is:
4201 Linden Ave, South Bend, IN 46619
7. The Key Number(s) of said property is:
018-2193-7257
8. A legal description of the above address is attached hereto, marked Exhibit A, and
incorporated herein.
9. A map and/or plat describing the Property is attached hereto, marked Exhibit B, and
incorporated herein.
10. Photographs of the property, taken within two (2) weeks of filing of this petition, are attached
hereto, marked Exhibit C, and incorporated herein.
11. The redevelopment or rehabilitation project itself will create 6-11 full-time and 0
part-time permanent jobs within the first year, representing a new annual payroll of $
160, 000-260, 000 and will maintain 31 existing permanent full-time and 0
existing permanent part-time jobs including existing permanentfull-time minority employment
of 29 and existing permanent part-time minority employment of 0 with an annual
payroll of $ 1,125, 000
(Rev 10/23/06) 2
12. The projected annual salaries for each new position indicated above are estimated to be as
follows (If more space is needed, please attach a separate sheet):
$20 000 -production employee • $60 000 quality control engineer
13. Provide current employment wage information including; base rate, cost-of-living allowances,
hazardous-duty pay, incentive pay including commissions and production bonuses, on-call pay
and tips. Do Not Include; back pay, jury duty pay, overtime pay, severance pay, shift
differentials, non-production bonuses, and tuition reimbursements (average hourly rate or
range):
Full-Time Part-Time
Laborers $ 11.90/hr $
Technical $ 100.00% $
Managerial $ 220, 000/yr $
Administrative $ 36, 000/yr $
14. Indicate whether your company provides the following benefits (use Y/N):
Y_ Health Care Benefits
Y Pension Plan
Employer Provided Training (recognized or certified training/educational courses or
programs)
Day Care (provide or contribute to the cost of child day care for its employees)
Transportation Assistance (provide direct or indirect support and assistance to its
employees without private transportation to get back and forth from residence to
place of employment)
Employer-Assisted Housing Program (provide anemployer-assisted home ownership
program)
Targeted Hiring Preference (provide hiring preference for residents of Census
Tracts designated by the Community & Economic Development Dept. that have
the highest unemployment or the highest percentage of low and moderate income
individuals).
(Additional information may be requested for verification of the above items)
15. List the real and personal property taxes paid at the location during the previous five years,
whether paid by the current owner or a previous owner:
Year Real Property Taxes
2007 27,392.98
2006 17, 422.32
2005 7,227.62
Personal Property Taxes
8,172.72
185,219.10
145, 885.74
(Rev 12/29/06)
2004 2, 772.88
2003 2,121.82
65, 959.24
3,103.80
(this information maybe obtained from the St. Joseph County Treasurers office 235-9531)
16. Please list the number offull-time and part-time minority employees for each of the last
three years:
Year 2007 2006 2005
Full Part Full Part Full Part
Black
Hispanic 21 37 32
Asian 1 1 1
Indian
Other
17. Does your business maintain an affirmative action plan or other similar plan in order to
achieve racial diversity? If yes, please briefly indicate specific goals, objectives, and means
as designated by your plan:
Yes. GTA Containers, Inc. is an equal opportunity employer. Applicants are considered for
employment without regard to age, race, color, religion, sex, national origin, sexual
orientation or disability ,which would not prevent the performance of essential job duties,
with, or without reasonable accommodation. GTA uses a variety of sources to locate job
applicants, including written advertisements, word of mouth and WorkOne.
18. Indicate whether or not your project meets any of the following criteria (contact
Community & Economic Development Dept. 235-9335 for information on this section):
Conversion to residential use of a commercial AEligible BuildingC~ as designated
by the Community & Economic Development Dept.
ehabilitation of a building that is either designated as a National Register or local
landmark or is eligible for nomination as one, located in a National Register or
local landmark district, or rated as Outstanding or Significant in the most recent
Historic Preservation Commission county wide survey.
Rehabilitation and reuse of a property that is designated a Problem Property by the
Community and Economic Development Department
Pays for the cost of cleaning up a ABrownfield,@ which is any site, building facility or
complex that has been designated a Brownfield by the Community and Economic
Development Department.
Achieves a physical element identified in a development or revitalization plan that has
been approved by the Council
4
(Rev 12/29/06)
19. Is your business based upon licensing intellectual property from research conducted at a public
or private university, college, or community college located within St. Joseph County, Indiana?
If yes, please include a description of the research based aspects of the business (attach
additional sheet if more space is needed):
A
20. Does your business financially support a Municipal Facility (i.e. municipally owned park,
recreation center, cultural, arts, or entertainment facility)?
N/A
21. Is your company incurring any of the cost of extension or oversizing of municipal infrastructure
serving the project site? This includes water, sewer, drainage facilities, wastewater treatment
facilities, road and street improvements, street lighting, traffic control and related public
improvements (attach additional sheet if more space is needed):
N/A
22. Information is required on the companies through which construction materials will be
purchased for the project. (Please complete the table on page 8 of this application).
23. Information is required on the construction companies that will be utilized for construction of
the project. (Please complete the table on page~9 of this application).
24. No building permit has been issued for construction on the property in connection with the
improvement in question as of the date of filing of this petition. (The Property Owners
signature at the end of this application is verification of this statement).
25. The Standard Industrial Classification (SIC) or North American Industry Classification Systems
(NAILS) major group within which the proposed project would be classified, by number and
description:
326299
26. The Internal Revenue Service Code of Principal Business Activity by which the proposed
project would be classified, by number and description:
Manufacturing
5
(Rev 12/29/06)
27. The current use of the Property is manufacturing and the current zoning is
GI
(This information maybe obtained from the Building Department 235-9554).
28. Has your business been granted previous tax abatement(s)? If yes, please provide type (real
and/or personal property) and date of approval.
Foxtrot Realty Corporation: real, 5/17/01
GTA Containers, Inc.: personal, S/17/01
GTA Containers, Inc.: personal, 3/31/03
29. Other anticipated public financing for the project including, if any, industrial revenue-bonding
to be sought or already authorized, assistance through the United States Department of Housing
and Urban Development funds from the City of South Bend, Small Business Association
Sections 503 and 504 financing through the Business Development Corporation of South Bend,
Mishawaka, and St. Joseph County, Indiana, Industrial Revolving Fund, Neighborhood
Business Development Corporation, Corporation for Entrepreneurial Development; or other
public financial assistance, including but not limited to public works improvements.
None
30. The following person(s) should be contacted as Petitioner's agent regarding additional
information and public hearing notifications:
Name: Richard Deahl, Barnes & Thornburg
Address: 600 IS` Source Center, 100 N. Michigan Street
City, State, Zip: South Bend, IN 46601
Telephone: 237-1240
31. Please indicate the name, address, and telephone number of the person who will work with
Employment Training Services (ETS) for employee recruitment, and sign the ETS form
attached to the petition if the real tax abatement is for warehouse or industrial developments.
Name: Yatish J. Joshi, President
Address: 4201 Linden Ave
City, State, ZIP outh Bend, IN 46619
Telephone: 574-288-3459
6
(Rev 12/29/06)
WHEREFORE, Petitioner requests that the Common Council of the City of South Bend,
Indiana, adopt a declaratory resolution designating the area described herein to be an economic
revitalization area for purposes of tangible real property tax abatement consideration, and after
publication of notice and public hearing, determine qualifications for an economic revitalization area
have been met, and confirm such resolution. Petitioner herein hereby verifies that the required
$250.00 filing fee to cover processing and administrative costs pursuant to Section 2-84.7 of the
Municipal Code of the City of South Bend has been paid in full.
Name of Property Owner(s):
FOXTROT REALTY CORPORATION
By. ~ ,
ish J. J hi; re'Pr s dent
Dated: 7 ~- ~~ ~ ~
In Clerk's Ofllce
Filed
,~~ _ g 2008
C~''1 CLERK,
7
(Rev 12/29/06)
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projecE. Indicate the Hams and address of each company; fist the dollar amount of the work #a be provided by each company;.
indicate whether or not l t7t?°la of the workers are employs of that company ac independent eontractars indicate whether or not
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EXHIBIT A
EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
"A part of the east half of the southwest quarter of Section 4, Township 37 North, Range 2 East,
South Bend, Indiana, more particularly described as follows, viz:
Beginning at a point on the south line of said Southwest quarter 578.67 feet west of the southeast
corner of said southwest quarter; thence continuing westerly along said south line of southwest
quarter with an assumed bearing of North 89°42'30" West, 741 feet more or less to the west line
of the east half of said southwest quarter, 1344 feet more or less to the southerly right-of--way
line of the New York Central Railroad Company; thence South 79°18'30" East along said
southerly right-of--way line 758.3 feet, more or less to a point which is North 00°08' 15" East
1207.34 feet to the place of beginning, excepting from the above described tract a strip of land
40 feet in width, north and south, taken off of and from the entire width of the south and thereof
for Linden Avenue.
SBDS02 R1D 376636v1
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