HomeMy WebLinkAboutConfirming Tax Abatement - Lippert Components Manufacturing Inc. 1901 W. Sample St. (5 Year Personal Property)Attes
RESOLUTION
4351 -14
Passed by the Common Council of the City of South Bend, Indiana
April 28,
14
20_.
Presented by me to the Mayor of the City of South Bend, Indiana
April 29, 20 14
City Clerk
dent of Common Council
Approved and signed by me Aft) L 29 20—a.
ulp
City Clerk
Ly N4or
RESOLUTION NO. �4 3 f(
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 FIVE (5) YEAR PERSONAL
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 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 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 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.
1 1 -11�Al
NO-1 APPRU.vt�
, Dop_,M `f 1—Y
Filed inSs,x`�.4i��
FP��3-7 0-14
CITY CLE .I(G, S >E; t H BEND, 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 21, 2014
Council Member Gavin Ferlic, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
Lippert Components Manufacturing Inc.
Dear Council Member Ferlic:
PHONE: 574/235 -9371
FAx:574/235 -9021
Please find attached the Department of Community Investment's report on a personal
property tax abatement petition from the above - referenced Petitioner for property they
are leasing at 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. has an executed lease for the TJX
building.. Lippert Components Manufacturing Inc. will install $1,300,000 of new
equipment over the next two years. This project qualifies for a five year personal
property abatement under the Indiana State Code. A representative of the Petitioner will
be available to meet with the Committee on Monday, April 14, 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 � 2l
Brock Zeeb
Director Economic Resources
Department of Community Investment
Attachments
cc: South Bend Common Council Members
Scott Ford
Chris Fielding
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
hTIN KAIN PAMELA C. MEYER CHRIS FIELDING DONALD E. INKS
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
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 21, 2014
On March 21, 2014 , a petition for personal property tax abatement consideration for
property located at 1902 West Sample Street was filed with the City Clerk by Mr. Scott
McPhail 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 , LCI has grown into a multi- state, multi -
facility organization.
As part of the company's growth plans, it is in need of racking, forklifts, and computers
costing $1.3 million over the next two years.
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITIN PAIN PAMELA C. MEYER CHRIS FIELDING DONALD E. INKS
South Bend Common Council
RE: Tax Abatement for Lippert Components Manufacturing, hic.
March 21, 2014
Page 2
Total taxes to be abated during the five -year (5) abatement period are estimated at $52,899. Total
taxes to be paid during the five -year (5) abatement period are estimated at $58,907.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create 200 new, permanent, full -time jobs
representing a new annual payroll of $5,200,000 over a two year period.
ABATEMENT QUALIFICATION
1. 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.
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 a five year personal property tax abatement.
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City of South Bend
Petition for Incentives
Legal name as registered with Secretary of
State. Lippert Components Manufacturing ,Inc.
Business structure Corporation
Companywebshe Iffl, /www.ldl.com/
Proposed Project Information
Proposed project address Parent company name
1902 West Sample Street Drew Industries Incorporated
City,State,Zip
Legal owner
South Bend, Indiana 46619
Site acreage or acreage required
Is the real estate owned or Leased
acres
Square feet of facility
if leased by wham
539, 137 square feet Lippert Components Manufacturing, Inc.
Primary company contact name
Scott McPhail rnle VP Finance
Address of Company Contact
3501 County Road 6 East Phone (5)4)312 -6135
City'state, Zip Elkhart, IN 46514 Email MCPhailS @Icil.com
Senior Official
Company senior official name- Title
Joseph S. Giordano 111 Chief Financial Officer &Treasurer
Address of company Contact (if different from Phone
(5)4) 535 -1125
above
City,state, Zip Email Jae @Drewlndustries.com
Consultant information/Agent
Hired business cansultant/agent name Consukantrelease opproval
Craig S. fisher Yes
Address
Local economic development
2108 Highland Forest Drive yet
paMem release approval
City,State,Zip.
Marvin, INC 28173 Email csfishenic @Yahoo.com
Project Overview
Brief description of your
Upper: Components Manufactudn, Inc f'LCI'9 is a tier -1 supplier servin the Manufactured Housing MN, Recreational Vehicle and Ca oHurse
pp p e pp a el 1 1 re/
Company, Project, and why the
Troller Industries. LCI is an Industry leader in a multitude of products including chassis,fabrica[etl steel parts, entry doors, axles, leveling and stabilisation
property is necessary for
equipment, suspension enhancement products, and accessories Nat enhance the RV lifestyle. As an industry leader and innovator in production and
economic growth
sales trends, LCl has grown into a multi- state , multi - facility organization.
As part of the company's growth plans, It is In need of centralized warehousing and distribution space for their finished products. This space needs to be
proximate to its production facilities but also provide an efficient and effective means for stoning, tracking and distributing finished! goods to the
ampany's customers. This centralized warehousing and Institution facility will reduce the need for space at she company's production facilities, space
Nat 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 the company being more profitable. As the
ampany'soverall business continues to grow, the company will continue to add positions to this operation. -
In addition to the direct company lobs that this warehouse and distribution operation will create, the company will sub -lease some of the space at the
facility which will result in W new lobs 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 the position schedule on page 2 of this application.
Since the company's potentfal use of this warehouse will result in she company occupying a building which has been vacant for more than 6 months, the
company respectfully requests receiving the abandoned real property tax abatement which would abate all real property taxes during the company's
first 2 years W operation at the location.
Certified Technology Park appropriate?
No
Community Revitalization Enhancement
District?
No
Certify that the Building Permit has not been
issued(Yes�NO)
^
Yes the building permit has not been Issued. ! yam• i^ Clerk's (�.A -6
a 11 L% 4
If this is a petition for personal property tax
abatement, has the equipment been installed?
No.
Lis lY j
JOHN
CITY CLERK, 30 W� N SEND, IN
d Acquisition
Iding Lease Payments
Iding Purchase Costs
N Building Construction
ning Building Improvements
special Tooling /Retooling
,uter /IT Hardware
care
iI Infrastructure
.p,. e11 n;, Clerk's 0 E
2013
2014
2015
2016
2017
20io
2019
2020
0
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year lobs retained Totalhourty Cumulatwerrofnet NEW fulltime
wage w/o permanent jobs created at project
finge or
bonuses
Now
2014 180
Hourly average wage, w/o
benefits or bonuses, of
cumulative net new jobs
12.50
Totaitraining
expenditure-
not
cumulative
100,000
Total4tobe
trained -not
cumulative
100
2015
200
12.50
20,000
20
2016
2017
220
240
12.50
12.50
20,000
20
2028
260
12.50
2029
280
12.50
2020
300
12.50
2021
320
12.50
2022
340
112.50
2026
360
112.50
2024
380
112.50
Provide hourly wage information for new employees in the following positions.
Fulitime
Parttime
Laborers
$12'.50
$
Technical
$
$
Managerial
$
$
Administrative
$
$
Who will be the individual `
responsible for coordinatingwith
WorkOne on recruiting?
Scott McPhail
Investment Details
Public Infrastructure needs (Off-
site of project)
Has any 504 funding been
received?
What is the value of any equipment being purchased in
Indiana for the project?
What is the value of any equipment being
purchased from out of state for the project ?
$ 200,000
No
750,000
0
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year lobs retained Totalhourty Cumulatwerrofnet NEW fulltime
wage w/o permanent jobs created at project
finge or
bonuses
Now
2014 180
Hourly average wage, w/o
benefits or bonuses, of
cumulative net new jobs
12.50
Totaitraining
expenditure-
not
cumulative
100,000
Total4tobe
trained -not
cumulative
100
2015
200
12.50
20,000
20
2016
2017
220
240
12.50
12.50
20,000
20
2028
260
12.50
2029
280
12.50
2020
300
12.50
2021
320
12.50
2022
340
112.50
2026
360
112.50
2024
380
112.50
Provide hourly wage information for new employees in the following positions.
Fulitime
Parttime
Laborers
$12'.50
$
Technical
$
$
Managerial
$
$
Administrative
$
$
Who will be the individual `
responsible for coordinatingwith
WorkOne on recruiting?
Scott McPhail
Does rcompany have an EEO hiring policy?
Yes
Are you an EEO employer?
Yes
Hied in ClarE,"a Offi�a.
Complete below for Real or Personal Property Tax Aba
Please sign for all requested incentives.
eme t only.
JOHN
CITY CLERK, SOUTH OFWD . IN
Public Benefit Item:
Information is required on both the construction companies and the
companieswhichwillprovide. materials purchased for this project.
Please complete the table below with the appropriate information. If
you qualify for the points, please enter the full amount of available
points.
-
Qualify
(Yes or No)
Earned Points
Available Points -
1
Construction Related (Contractorsi:
A.
Employ Local Companies (75 %)
Yes
20
20
B.
Purchase Materials from Local Companies (7591)
Yes
20
20
C.
Require Employees vs. Independent Contractors
Yes
19
19
D.
Require Prevailing Wage (Davis Bacon)
Yes
22
22
-
E.
Require Health Benefits
Yes
22
22
F.
Require Pension. Benefits
No
18
G.
Maintain Affirmative Action Plan
Yes
20
20
sub -total Construction Related:
123
141
2
Wage & Benefit Related (Owned:
A.
Pay Target Wage Levels
Yes
33
33
B.
Provide Health Benefits
Yes
34
34
C.
Provide Pension Benefits
Yes
29
29
D.
Provide Training
Yes
28
28
E.
Provide Child Care
No
15
F.
Provide Transportation Assistance
No
14
G.
Provide Employer Assisted Housing program
No
9
Sub -total Wage & Benefit Related:
124
162
3
Workforce Related:
A.
Create New Jobs
Yes
42
42
B.
Retain Existing Jobs
Yes
41
41
C.
Maintain Affirmative Action Plan
Yes
35
35
D.
Provide Targeted Hiring Preference
Yes
34
34
Sub -total workforce Related:
152
152
4
Support a Municipal Facility:
A
Support a Municipal Facility (donations to the zoo,
conservatory, museum, etc.)
84
Name of Facility
Sub -total Municipal Facility:
84
Sub -total from Above:
399
539
The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of the City
of South Bend for a real and /or personal property tax abatement consideration and pursuant to I.C., 6 -1.1- 12.1 -1, at sea., and -
South Bend. Municipal Code Sec. 2 -76 at sed.• for this petition state the above..:
2/28/14
Filed in Clerk's Office
For Staff Use Only Below This Line
What is the current assessed value? Real Property: . Personal Pro
r
'.nM,
What is the projected assessed value? Real Property: Personal Property:
What is the tax key number for this proleeti.
What is the six digit NAILS Code?
Please attach a Google map and street view of the location.
Please list the amounto real an persona propertytaxet
paid for the last five ears whena Iica6le:
Real Property Taxes:
Personal Property Taxes:
Year One
Year Two
Year Three
Year Four
Year Five
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.
Develop Based on Local University Research
35
C.
JAchieve a Physical Element of a Plan
36
Sub -total Project Related:
120
6
Super
Size Projects (point values are cumulative):
A.
100% to 199%
25
B.
200% to 299%
68
C.
300% to 399%
65
D.
40051 and Over
52
Sub -total Super Size Projects:
Q
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 -75% of Extension Cost
39
D.
Pay for 76- 100% of Extension Cost
52
Sub -total Infrastructure Related:
Q
131
Total from Applicant Section:
399
539
.Total from Staff Section:
0
461
Total Public Benefit. Points:
399
1000
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