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Home My WebLink AboutConfirming Tax Abatement - Schafer Industries Inc. 4701 Nimtz Parkway (5 Yr. Real Property)Attest: RESOLUTION 4312 -14 Passed by the Common Council of the City of South Bend, Indiana January 13, 194 20 . City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana January 14, 20 1X4 Approved and signed by me 'j AA1 4 A 11 `/ /(V 1 H 20— . City Clerk RESOLUTION NO. A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4701 Nimtz Parkway AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR SCI � �vAF-E INDL`S'iR1I'S, INC. WHEREAS, the Common ::'o1;acil of the City of South Bend, Indiana, has adopted a Declaratory Resolution designathig certain areas within the City as Economic Revitalization Areas for the purpose of tax abater :;,n consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as 4701 Nimtz Parkway, South Bend, Indiana, and which is more particularly described as follows: A part of the Southeast Quarter (SE %) of Section 20 and part of the Southwest Quarter (SW' /<) of Section 21, Township 38 North, Range 2 East, situated in German Township, St. Joseph County, State of Indiana, and being more particularly described as follows: Lots number ten (10) and eleven (11) as shown on the recorded plat of H.G. Baus Centre — Phase One, recorded March 16, 1995 os document Number 9507104 in the Office of the Recorder of St. Joseph County, Indiana . and which has Key Number 02 - "ii)10- 0;6102 be ; ?esignated as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declarai:iry Resolution and the public hearing before the Council has been public' :d purs,,ant to ine..iana Code 6 -1.1- 12.1 -2.5; and WHEREAS, the Council held a public hearint, for the purposes of hearing all remonstrances and objections from ime—sted 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 personal 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 personal property tax deduction for a period of five (5) 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 seg. 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. rRc;t "r•ai c�t> -13 -(4 N' ,BAS St 227 W. JEFFERSON BOULEVARD SUITF 1400 S. SOUTH BEND, IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR PHONE: 574/235 -9371 FAX: 574/235 -9021 Council Member Gavin Ferlic, Chairperson November 21, 2013 Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Personal Property Tax Abatement Petition for: Schafer Industries, Inc. Dear Council Member Ferlic: Please find attached the Department of Community Investment's report on a personal property tax abatement petition for the above - referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the acquisition and installation of new equipment as part of the company's planned increase in productive capacity in its facility located at 4701 Nimtz Parkway. The report contains the Department's findings relative to the above petition. Schafer Industries, Inc. will be purchasing and installing new equipment. The total project cost for the equipment is estimated at $1,400,000. The project meets the qualifications for a (5) five -year personal property tax abatement and a representative from Schafer Industries, Inc. will be available to meet with the Committee on Monday, December 9, 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 -9339. Sing y l e Brock k eebb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Aladean DeRose Scott Ford Chris Fielding ASSISTANT EXECUTNE DIRECTOR PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RFSOURCES CHRIS FIELDING JITIN KAIN PAMELA C. MEYER BROCK ZEEB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: SCHAFER INDUSTRIES, INC. DATE: November 21, 2013 On November 20, 2013 a petition for personal property tax abatement consideration for property located at 4701 Nimtz Parkway, South Bend, is filed with the City Clerk by Schafer Industries, Inc. Pursuant to Chapter 2, Article 6, Section 2 -84.2 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 (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY The proposed project is the purchase and installation of a new CNC Gear Grinding machine, a CNC Universal Cylindrical Grinder, and a 75 Ton Hydraulic Press. The project serves to increase their production capacity to meet the growing demands of two of their existing customers. The equipment will cost $1,400,000. November 21, 2013 Page 2 South Bend Common Council Total taxes to be abated during the (5) five -year abatement period are estimated at $12,917. New project taxes will be $120,451. Total taxes to be paid over five years on the new and existing equipment are estimated at $1,033,899. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: (a) create 5 (five) permanent, full -time and 0 (zero) permanent, part-time jobs within the first year, representing a new annual payroll of $176,800 and (b) will maintain 78 existing permanent full -time and 0 (zero) existing part-time jobs representing an annual payroll of $3,500,000 for existing employees. ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has been granted or associated with eight (8) previous five year personal property lax abatements: 1631 -88; 1876 -91; 2055-93; 2285-95; 2541-98; 3055-02; 3710-07; and 3990 -09. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development Area. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement.