HomeMy WebLinkAboutConfirming Tax Abatement - Lippert Components Manufacturing Inc. 1902 W. Sample St. ( 2 Year Real Property)Attes
RESOLUTION
4338 -14
Passed by the Common Council of the City of South Bend, Indiana
April 14,
14
20 .
Presented by me to the Mayor of the City of South Bend, Indiana
April 15,
14
City Clerk
ident of Common Council
Approved and signed by me AM L is- 20-11.
4
City Clerk
RESOLUTION NO. 3 3 k— i q
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
1902 West Sample Street
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A TWO -YEAR (2) REAL
PROPERTY TAX ABATEMENT FOR
Lippert Components Manufacturing Inc.
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 1902
West Sample Street, South Bend, Indiana, and which is more particularly described as follows:
Lot 1
Project X Minor Sub
03 -04 New Replat TR 5162 -7 -18 -2002
and which has Key Number 71-018-09041 -00, 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 annual amount for which
similar buildings in the county were leased or rented or offered for lease or rent during the
period the eligible vacant building was unoccupied is approximately in the amount of
$1,078,274.
SECTION III. The Common Council hereby determines that the property owner is qualified for
and is granted Real property tax deduction for a period of two (2) 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 seq.
SECTION IV. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approved by the Mayor.
PRESENTED
NOT APPROY16
WDOPTT
Filed In Clark's
APR 03 1014
CITY( ::r i'tEND, IN
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
March 10, 2014
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:
Lippert Components Manufacturing Inc.
Dear Council Member Ferlic:
PHONE: 574/235.9371
FAx: 574235 -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 rent that is identified as 1902 West Sample Street. 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, Lippert Components Manufacturing Inc. proposes to rent the vacant building
from Drew Industries Incorporated. This project qualifies for a two year real property
abatement under the Indiana State Code. A representative of the Petitioner will be
available to meet with the Committee on Monday, March 24, 2014.
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.
Sincerely � V
Brock Zeeb
Director Economic Resources
Department of Community Investment
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
's�!led�in' k i -- E
tom.,
JOHki ?fCi 1 ++
CITY Cam' 4 tfVJ, IIN
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
Jnw xAIN PAMELA C. MEYER CHRIS FIELDING DONALD E. INKS
227 W. JEFFERSON BouLEvARD
SurrE 1400 S.
Soule BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
PHONE: 574/235.9371
FAX: 574/235 -9021
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
Lippert Components Manufacturing, Inc.
DATE: March 10, 2014
On March 10, 2014 , a petition for real property tax abatement consideration for property
located at 1902 West Sample Street was filed with the City Clerk by Mr. Scott Mcphall
of Lippert Components Manufacturing, Inc. 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
Drew Industries Incorporated is the real estate holding company. Lippert Components
Manufacturing, Inc. will be the lessee. Lippert Components Manufacturing, Inc. (LCI) is
a tier -1 supplier serving the manufactured Housing (MH), Recreational Vehicle (RV),
and Cargo/Horse Trailer Industries. LCI is an industry leader in a multitude of products
including chassis, fabricated steel parts, entry doors, axles, leveling and stabilization
equipment, suspension enhancement products, and accessories that enhance the RV
lifestyle. As an industry leader and innovator in production and sales trends, LCI has
grown into a multi- state, multi- facility organization.
As part of the company's growth plans, it is in need of centralized warehouse space and
distribution space for their finished products. The space needs to be proximate to its
production facilities but
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITIN KAIN PAMELA C. MEYER CHRIS FIELDING DONALD R INKS
South Bend Common Council
RE: Tax Abatement for Lippert Components Manufacturing, hie.
March 10, 2014
Page 2
also provide an efficient and effective means for storing, tracking, and distributing finished goods to
customers. This centralized warehousing and distribution facility will reduce the need for space at
the company's production facilities, space that can be more efficiently used to enhance the
company's production capabilities. The centralized warehouse and distribution facility will make the
management of the company's finished goods inventory more easily traceable and more efficient,
resulting in more profitability. As the company's overall business continues to grow, the company
will continue to add positions to operations.
In addition to the direct company jobs that the warehouse and distribution operation will create, the
company will sub -lease some of the space at the facility which will result in 80 new jobs being
created by the company's tenant and $400,000 of capital investment. This sublease will be the
tenant's first presence in the City of South Bend and the State of Indiana. Those net new jobs are
included in page 2 of the petition. The building is 539,137 square feet of space.
PLEASE NOTE: The applicant, Lippert Components Manufacturing, Inc., is respectfully
requesting a special exception because the project does not meet the general standards for real
property tax abatement as set forth in Chapter 2, Article 6, Sections 2 -77 through 2 -83.3 of the
Municipal Code of the City of South Bend. Indiana State's legislation on tax abatement has a
provision for the granting of tax abatements on properties that have been vacant for at least one year
(IC 6 -1.1- 12.1 -4.8). However, because this is a relatively new provision, the City's code does not
provide for it. The state legislation provides up to two years of tax abatement on the property subject
to certain limitations on the amount of the property's assessed valuation that can be considered in
calculating the abatement. The petitioner is respectfully requesting that the Common Council grant
the two year exception under this IC exception.
As noted this abatement only applies to a limited portion of the property's total assessed valuation.
This portion is equivalent to the estimate annual rent that the property could generate. The building
has been listed at $2.00 per square foot for the 539,137 square foot building. The maximum rent
generated would be $1,120,000 and our estimate of the taxes abated for two years is less than that
amount. Total taxes to be abated during the two -year (2) abatement period on the assessed valuation
are estimated at $696,252. Total taxes to be Raid during the two -year (2) abatement period on
th e
assessed valuation are estimated at $400,839.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create 380 new, permanent, full -time jobs
representing a new annual payroll of $9,880,000 over a ten year period.
South Bend Common Council
RE: Tax Abatement for Lippert Components Manufacturing, Inc.
March 10, 2014
Page 3
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has not been granted
or associated with any previous tax abatements:
2. The Building Commissioner has reviewed the petition and finds the property to be properly
zoned for the proposed project.
A review of the South Bend Redevelopment designation areas finds that the property is located
in the Sample -Ewing Development area.
4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner does not meet
the qualifications for a real property tax abatement. A two -year (2) real property tax
abatement is being sought as a special exception.
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PetitiOne Incentives
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BUSIik$s strustpre : I.� Corporation
ComParry Webslta c�..x• � k -d'S Ia'��., http; / /wwwday.mM
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Proposed Project Information
Pr@poseq Pto)ett addre3$m Rg�,���;,' x s= Pareniw a11V nDm@ m�H�'.
2 19o2We"SamDle Street !, Drewlndus1r1a 1maporoGtl
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LegaloWpq' �.
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]0.99acres
hfhe real eshteownedor
Le as ad
SquaYR feetof htlgry ='
a , 539,137 am feet
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Primary Contact Information
PfligBryCOmPanYSant@ct 08m0 ,', Scott McPhail
Tld! I WFlnance
Addm55 ofcol]IPerry nor "i, 3501 county Road 6 Eon
Paton@ '.. 1(574) 3124135
Gry,Shte ZIP +�' , ' � Elkhart, IN 46514
Email n , Mehe1nisIdl.am
Official Senior
C@mpany SeBlotofficiaib31n0 ![ losephS. Giordano 111
THIE' <Fi<f FlnantlelOWttr &Treasurer
Addre55ofco111p0ny toa[$CL (H differentfroal.
Phone : (574)5351125
Bove IT
Email : roggpomMedurtrla.cem
[Iry,Shte LP
Consultant Information/Agent
Hhed tiu5lness COrISPILant /agent naM¢I—
Where raHanepprovN `
•- Craig S. Fisher
Yes
Atldre$s
Loalecommlcdevebpmua
2108 Highland Fore” Driva
perdarimeaseepprovN Yes
C1ty StttOa LP Mervlry NC 281]3 wag anshertk&Mhoo.com
Project Overview
Brletdesafption ofyadt ”
}t; Lippe"CamponeMs Me nuG" udn& In c('LCP)Isatler-IsuWllersemtngthe Manu MmdHOUSIM(MH),Recrenlomi Vehide(RV)and OMO/Hose
rgmpany pt0(em, ind,vAlythe, °:; Trailarindurtrles. l< I is en lndurtryleader lnamuWtude of Drnduc"Indudim rhassB, hbriatetl steN parts, entrytlooa, axles, IevNing snd ttabllWtbn
properly is neCe5$aryjOr d equlpmenq suspension enhancement products, andaccasales that enhancethe RVIfterle. Man Industry leader and Innovator In production and
ecp001nic growth' selestrends, La hasgrownlntoamuXFSGte , muW -GNllry organkation.
As pert of the mmpam's growth plans, It is In need of moralizers warehoudeg and distribution space for their finished products. This span needs to be
. proximate to Its production Gcl11tles butalso provldean efficient and effezdee meats for nods& tracklm and distdbutim flnXMtlgoods to the
compam't attomers. This centralized warehoudng and distribution beery will reduce the need for space at the comparri's production faclliffle"pece
that an be mom efficiently used to enhance the carepers production capab11X1es.The centralized unuehcwe and distribution fadllty 111 makethe
management aides mmpem`,fmIsh.d goads Inventory morcese ly traceable and more emdent, rauWm in meamparry bein, seem profitable. Asthe
'. compowsoverall budmssassum oGgme, Necompanywlllcaulnueto add,sweentothNo,satlen.
In addklonto me direct compamlobs GatmX warehouse and distribution operation will Mats, me campwry will subleammme ofine span atthe
lacnfty hdchwlll resuXln Bomwlobsbeingcreated bymemmpans vsteantand$400,000Mmpital lnvestmeM. Thbsude... will be metemM's flrtt
pre.... the Cky MSOUm BeiM and Me StOW Of lndiem. ThOU net n4wlobs arc liMnded In me pwldon odmdule on page 2 of mX appllzatlon.
Since me mmDarryipotentiel uuafmHVnrchoumwlg rewlt lnme compemmcupylm abugding whim MSbeenvaant formore man6monms, the
-. company respectfully records remarlogthe abandoned real property he abatement which would above all real WopeMtaxesdudng the Compares
-: fir" 2 yeas of operation at Its lor000n.
Certifled Technology Park appropriate?..:
No
Community Revitafl:atbn Enhancement
District?
No
Certify that the Building permit has not been
Issued (Yes/No)
Yes our WIlding permit has net been issued.
IfthH Is a petition for personal property tax
abatermusk has the equipment been installed?
No.
Whathth artemassessedvalue?
For Staff Use Only
Reel Property. MIV, le10 Periiio ropvly-
"idisth projxhdassessedvalueT
Real Property. �(� personal Property:
what tithe ma keraumberf0ml, preleR
—00
What is the six digit NAICS code?
Please attach a Google map and street viewof the location.
Pease Hathe amoun o rea an persona property taxes
paid for the last five ears whena liable.
Real Ptopertyy Taxes:
Persnn}allimperty Taxes
Y<arom,
!-t< or) C.0
ll
) / �j f
Tit -,.(,I
i.V�/l�,' /C./ Year Two
/4,,L/L//(9/&/
G09 //O Year Three
` / '�'7
UIO //j YearFaur
1,93 to yf 2
l,j
1 Year Five
'/ `-f / r
Please fill out the following Public Benefit Summary Information and add to total from above.
-
qualify
Y or N
Earned
Points
Available
Points
Public Benefit Item:
5
A.
Redevelop a Site that has Special Needs
49
B.
IDevelop Based on Coal University Research
35
C.
lAchieve a Physical Element of a Plan
36
Sub -total Project Related:
0
120
6
Super Size Profects !point values are pumulatNel:
A.
100Y. to 199%
25
B.
200% to 199%
68
C.
300% to 399%
65
D.
400Y. and Over
52-
Sub -total Super S(ze ProJects:
0
210
7
Pay for Municipal infrastructure:
A.
Pay for Oversizing or Upgrading
14
B.
Pay for 26 -50% of Extension Cost
26
C.
Pay for 51-7S% of Extension Cost
39
D.
Pay for 76- 100% of Extension Cost
52
Sub-total infrastructure Related:
0
131
Total from Applicant Section:
399
539
- Total from Staff Section:
Q
461
Total Public Benefit Points:
1399
1000