HomeMy WebLinkAboutConfirming Tax Abatement - Lock Joint Tube LLC. 515 W. Ireland Rd (5 Year Personal Property)Attes
RESOLUTION
4358 -14
Passed by the Common Council of the City of South Bend, Indiana
May 12,
14
20
Presented by me to the Mayor of the City of South Bend, Indiana
May 13, 20 14
City Clerk
ident of Common Council
Approved and signed by me AA ' `4 20 '? .
9
City Clerk
"Tv
RESOLUTION NO. _ l 3 S t -t
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
515 WEST IRELAND ROAD
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
LOCK JOINT TUBE, 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 515 West
Ireland Road, South Bend, Indiana 46614, and which is more particularly described as follows:
A parcel of land located in the Southeast Quarter (S.E. 1/4) of the Northeast Quarter
(N.E. 1/4) of Section Twenty -Six (26), Township Thirty -Seven (37) North, Range Two (02) East
of the Second (2nd) Principal Meridian and all being in Center Township, City of South Bend,
St. Joseph County, Indiana and being more particularly described as follows:
Commencing at the southeast corner of the Southeast Quarter (S.E. 1/4) of the Northeast Quarter
(N.E. 1/4) of said Section Twenty -Six (26); thence South 90'00'00" West (Bearing derived from
description shown in Title Commitment 9501843 ) as issued by St. Joseph Title Corp.), along the
south line of the Southeast Quarter (S.E. 1/4) of the Northeast Quarter (N.E. 1/4) of said Section
Twenty -Six (26) and also being along the centerline of a public road now known as Ireland
Road, a distance of 400.00 feet; thence North 01 °30'47" East, parallel with and 400.00 feet west
of the east line of the Southeast Quarter (S.E. 1/4) of said Section Twenty -Six (26), a distance of
40.01 feet to the Point of Beginning of this description, said point of beginning being on the
north right of way line of said Ireland Road and also being the southwest corner of a parcel
conveyed to Roger R. Atwell and Eleanor Atwell as described in Quit Claim Deed No. 9416618;
thence South 90° 00'00" West, along said north right of way line of Ireland Road and being
parallel with and 40.00 feet north of the south line of the Southeast Quarter (S.E. 1/4) of the
Northeast Quarter (N.E. 1/4) of said Section Twenty -Six (26), a distance of 891.36 feet to a point
on the west line of the Southeast Quarter (S.E.1 /4) of the Northeast Quarter (N.E.1 /4) of said
Section Twenty -Six (26) and also being the southeast corner of a parcel conveyed to Louanne
Osborne as described in Warranty Deed 9326881; thence North 00 °58'55" East, along the west
line of the Southeast Quarter (S.E.1 /4) of the Northeast Quarter (N.E.1 /4) of said Section
Twenty -Six (26) and also being along the east line of said parcel conveyed to Louanne Osborne
and also along the east line of a parcel conveyed to Transit Mix, Inc. as described in Warranty
Deed 9018257, a distance of 955.26 feet to a point which is South 00 °58'55" West -- 314.00 feet
from a stone found at the northwest corner of the Southeast Quarter (S.E.1 /4) of the Northeast
Quarter (N.E.1 /4) of said Section Twenty -Six (26); thence North 89 °42'44" East, along the south
line of two (02) parcels conveyed to Miles Laboratories, Inc. as described in Warranty Deed
7903212 and Warranty Deed 8501215, a distance of 1270.41 feet to a point on the west right of
way line of a public street now known as Lafayette Street; thence South 01 °30'47" West, along
said west right of way line of Lafayette Street and being parallel with and 30.00 feet west of the
east line of the Southeast Quarter (S.E. 1/4) of the Northeast Quarter (N.E.1 /4) of said Section
Twenty -Six (26), a distance of 602.05 feet to the northeast corner of a parcel conveyed to Arthur
Fontonelli and as described in Warranty Deed 9335926; thence South 90 °00'00" West, along the
north line of said parcel conveyed to Arthur Fontonelli and also being along the north line of a
parcel conveyed to Arthur Fontonelli as described in Corporate Warranty Deed 9335926, a
distance of 370.00 feet to the northwest corner of said parcel conveyed to Arthur Fontonelli;
thence South 0 1 °30'47" West, along the west line of said parcel conveyed to Arthur Fontonelli, a
distance of 360.00 feet to the Point of Beginning of this description.
and which has Key Number 023 - 1013 -0758 a/k/a 71- 08 -26- 200 - 014.000 -002 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
complies with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana
Code 6- 1.1 -12 et sec.; provided however, the Petitioner may not receive an economic
revitalization area deduction if it receives an enterprise zone investment deduction under I.C. 6-
1.1 -45 for the same property.
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
NOT APPROY,ED
Filed ' `, Icne
11
0.I N14
c uY
v Ei [aEtiiD, Ild
City of South Bend
..
Petition for Incentivesa
Petition must include a$250flingfee payable to the City Clerk's Office before processing can he complete
rk5
General Information Project Name LOCK JOINT TUBE Project Number
Legal name as registered with Secretary or LOCK JOINT TUBE LLC
Slew
Business structure Indiana limited liability company
Company website www.ijtube.com
Proposed Project Information
Proposed project address Parent company name
515 West Ireland Road
City, State, Zip
South Bend, Indiana 46614
Legal owner-
Site acreage or acreage requiretl -
Existing Site ( -20.56 Acres)
Is the real estate owned or
Owned
Square feet of facility
Primary Contact Information
- 30,000 SF Addition to 288,000 SF Bldg.
If leased by whom N/A
Primary company armed name
`Robert
Strzelecki
Title
Controller
Address of tympany contact
515 West Ireland Road
Phone (574)299 -3455
City, State, Zip South Bend, Indiana 46614
Email strzeleckib @ljtube.com
Senior Official Information
Company senior official name
(Same as above)
Title
Address of company contact (if different from
alrovel
Phone
City, State, Zip ..
Email
Consultant Information/Agent
Hired business wnsultantlagerd name
Richard DeahVBarnes &Thornburg LLP
Consuhant release(Y /N Counsel (yes)
Address
Local economic development partners
100 N. Michigan Street, Suite 700
a royal Y N
[Ry,state,Zip
Email
South Bend, Indiana 46601 rdeahl @btlaw.com
Project Overview
Brief description of your
company, project, and why the
Lock Joint Tube, LLC (the 'Company" or "Petitioner") manufacturers mechanical and structural grade steel tubing in Indiana
(and other states) for use in various including (among others) automotive, recreational vehicle, office /furniture,
property is necessary for
ry
healthcare and construction. The proposed project includes new investment of approximately:
proposed
econamicgrowth
(a) $1.1 MM - $1.SMM in a building additionlexpansion containing approximately 30,000 square feet to be used for
additional manufacturing space (and to facilitate the reconfiguration of storage and shipping areas) at the Company's main
facility on W. Ireland Road, and
.
(b) $3.5MM- $4.00MM in new manufacturing equipment and new logistical distribution equipment to increase the
Company's production capabilities and efficiencies.
The Company's proposed investment supports the Company's continued expansion of the types of products it can produce
and deliver to customers, its overall capabilities and its competitive position within the steel tubing market.
Certified Technology Park appropriate
N/A
Community Revitalization Enhancement
District
N/A
Certify that the Building Permit has not been
Yes (Not Issued)
NumbeY residential umt`e'g e e� '+�.�+
N/A
Issued flift
if this is a petition for personal property tax abatement, has
the equipment been installed
No
New Proiect Investments
Calendar Year 2014
Land Acquisition
Building tease Payments
Building Purchase Costs
New Building Construction $1,100,000
Ulsting Building Improvements $2,046,900
New Machinery & Equipment $3,500,000
Special Toating/Retooling
New Furniture /Fixtures
New Computer /IT Hardware
New Software
On -cite Rail Infrastructure
On-site Fiber Infrastructure
Full-Time Permanent Indiana-Resident Positions
Yalentlar Year lobs rem, ne TotaLhourly
wage w/o
fringe or
bonuses.
2015
r
r 17
2018
2019
2020
2021
by Calendar
Cumulative
permanent
Year
#of net NEW full time
jobs created at project
Hourly avenge wage,w /o.
beneffts or bonuses, of
cumulative net new jobs
Total training Tate Itto be
ezpendfture. trained -net
not cumulative.
cumulative
2014 193 (Ireland Rd Only) $10.3MM
6 -8 Full Time
$15.08
Internal All New Jobs
2015
Payroll( -$189k -$251 k)
2016
2017
2018 -
2019
2020
2021
2022'
2023 -
2024
2025 "-
-Full time pamtime
Laborers
6 -8 Full Time
Technical
Managerial
Administrative
Who will be the individual responsible for coordinating
WorkOne on recruiting? -
Tony Veger, Human Resources for Lock Joint Tube
Does your company have an EEO hiring policy] YeS
Are you an EEO employer?
Yes
the last three
Year 2013
years:
2012
please describe your commitment to
diversity and inclusion by detailing your -
outreach and recruitment efforts for the last
three won as well as current policies.
Full Time
Part Time
Full Time
Part Time
Black 22
-
17
-
Hispanic 10
-
10
-
M
Asian. 2
2
-
Indian
Female 45
-
40
-
25
-
Other
Complete below for Real or Personal Property Tax Abatement only.
Please sign for all requested incentives.
Public Benefit Item:
Information is required on both the construction companies and the
companies which will provide 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 (Contractorsl:
A.
Employ. Local Companies (75%)
To Bid
20
B.
Purchase Materials from Local Companies (75 %)
Yes
20
20
C.
Require Employees vs. Independent Contractors
Yes
19
19
D.
Require Prevailing Wage (Davis Bacon)
TBD
22
E.
Require Health Benefits
TBD
22
F.
Require Pension Benefits
TBD
18
G.
IMaintain Affirmative Action Plan
TBD
20
Sub' -total Construction Related:
39
141
2
Wage & Benefit Related IDwnerl:
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
0
15
F.
Provide Transportation Assistance
No
0
14
G.
Provide Employer Assisted Housing program
No
0
9
Sub-total Wage & Benefit Related:
124
162
3
Workforce Related:
A.
Create New Jobs
Yes
42
42
S.
Retain Existing Jobs
Yes
41
41
C.
Maintain Affirmative Action Plan
No
0
35
D.
Provide Targeted Hiring Preference
No
0
34
Sub -total Workforce Related:
83
152
4
Support a Municipal Facility:
A'
Support a SB Municipal Facility (donations to the
zoo, conservatory, museum, etc.)
84
Name of Facility
Subtotal Municipal Facility:
84
Sub -total from Above:
246 1
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, et seg., and
South Bend Municipal Code Sec. 2.76 et sea. for this petition state the above.
For Staff Use Only Below This Line
What is the current assessed value?
Real Property:
Personal Property:
What is the projected assessed value?
Real Property:
Personal Property:.
What is the tax key number for this project?
What is the six digit NAICS code?
Please attach a Google map and street view, of the location :.
Please list the amount of real and personal property taxes `.
paid for the last five years when applicable.
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.
.0rN
Points
Points
Public Benefit Item:
��
-
�i'i"�� ,fs
5
A. Redevelop a Site that has Special Needs
No
0
49
B. Develop. Based on Local University Research
No
0
35
C. jAchieve a Physical Element of a Plan
No
0
36
Sub -total Project Related:
0
120
6
Super
Size Projects (point values are cumulativel:
A.
100% to 199%
Yes
25
25
B. -
200% to 299%
Yes
68
68
C.
300% to 399%
Yes
65
65
D.
400% and Over
No
0
52
Sub -total Super Size Projects:
158
210
7
Pay for Municipal Infrastructure:
A.
Pay for Oversizing or Upgrading
No
0
14
B.
Pay for 26-50% of Extension Cost
No
0
26
C
Pay for 51-75% of Extension Cost -
No
0
39
D.
Pay for 76- 100% of Extension Cost
No
0
52
Subtotal Infrastmcture Related:
0 131
Total from Applicant Section:
246
539
Total from Staff Section:
1158
461
Total Public Benefit Points:
1404
1 1000
1) How do I pay my petition Ming fee?
Your petition filingfee can be paid either in person or via mail to:
City Clerk's Office
Attn: Deputy City Clerk
227 West Jefferson Blvd. • Suite 400 S
South Bend, Indiana 46601
2) Certified Technology Park appropriate? (Page one, under project overview)
In the South Bend area there are only two Certified Technology Parks, Innovation Park and Ignition
Park. If your property is not located in either then the answer would be no.
3) Community Revitalization Enhancement District? (Page one, under project overview)
The map below outlines the CRED area, please check to see if you fall within the boundaries.
4) Has any 504 funding been received? (Page one, under investment details)
504 Funding is a loan that come from the Small Business Administration. This funding must be applied
for to be received.
5) Total training expenditure -not cumulative (Page two, under full time Indiana resident positions)
The amount of money to be spent per year on training over the course of the project.
6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions)
The amount of people that you will train per year over the length of the project.
If you have any additional questions that are not addressed by this document, please contact Sarah Heintzelman in the
Department of Community Investment at 574. 235.5842 or email at sheintzeosouthbendin. ovov
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4) Has any 504 funding been received? (Page one, under investment details)
504 Funding is a loan that come from the Small Business Administration. This funding must be applied
for to be received.
5) Total training expenditure -not cumulative (Page two, under full time Indiana resident positions)
The amount of money to be spent per year on training over the course of the project.
6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions)
The amount of people that you will train per year over the length of the project.
If you have any additional questions that are not addressed by this document, please contact Sarah Heintzelman in the
Department of Community Investment at 574. 235.5842 or email at sheintzeosouthbendin. ovov