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Home My WebLink AboutTerminating Tax Abatement - Accuride International Inc. (10 Year Real Property)Attest: RESOLUTION 3060 -02 Passed by the Common Council of the City of South Bend, Indiana February 11, 20 02 Presented by me to the Mayor of the City of South Bend, Indiana February 13, -20-22 February 13, Approved and signed by me City Clerk President of Common Council 2002 . City Clerk �W RESOLUTION NO. 3� A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND TERMINATING THE TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR ACCURIDE INTERNATIONAL, INC. WHEREAS, the Common Council of the City of South Bend on October 26,1992 adopted Resolution No. 1980 -92 designating the real property commonly known as 4300 Quality Drive, South Bend, Indiana, 46628, as an economic revitalization area for purposes of a ten (10) year real property tax abatement, the full legal description of which real property is attached hereto and incorporated herein as Exhibit " 1 ", having key numbers 25 -1017 -0604; 25 -1017 -0602; and 25 -1017- 0602.01 ; and WHEREAS, the Common Council of the City of South Bend, on November 9, 1992 adopted Resolution No. 1983 -92 confirming the adoption of the declaratory resolution for this property; and WHEREAS, the Common Council believes that by the property owner's announced closing of its South Bend facility, Accuride International, Inc. has failed to comply with the wage and benefit levels it proposed in its petition for tax abatement and with other representations Accuride made to the Common Council; and WHEREAS, this Council has the power pursuant to I.C. 6- 1.1 -43 -3 to revoke a real property tax abatement in an economic revitalization area if a recipient fails to comply with the wage and benefit levels proposed or promised by the owner in its petition for tax abatement; and WHEREAS, the Common Council conducted a public hearing at its meeting on Monday, February 11, 2002, in order to determine whether the Petitioner has complied with its promised or proposed wage and benefit levels; and WHEREAS, the property owner was notified of this public hearing and of its opportunity to provide information to the Common Council as to whether the property owner has made reasonable efforts to substantially comply with its promised wage and benefit levels, and whether any failure to substantially comply was caused by factors beyond the control of the property owner. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of South Bend, Indiana, as follows: Section I. The Common Council of the City of South Bend, Indiana, has conducted a public hearing for the purpose of determining whether Accuride International's real property tax abatement should be terminated and the property owner was duly notified of said public hearing. Section II. Accuride International has failed to comply with its promised wage and benefit levels and accordingly, the real property tax abatement heretofore granted to it is hereby revoked and terminated,as it affects taxes due 2002, payable in 2003; taxes due in 2003, payable in 2004; and taxes due in 2004, payable in 2005. Section III. The Common Council's prior Resolution No. 1980 -92 and Resolution 1983 -92 are hereby revoked and repealed as they affect taxes due in 2002, payable in 2003; taxes due in 2003, payable in 2004; and taxes due in 2004, payable in 2005. Section IV. The Council directs the City Administration to pursue a civil fine against the property owner in an amount of not less than $250 and not greater than $2,500 as authorized by the South Bend Municipal Code. Section V. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. PRESENTED 2 as Aw"OA NOT APPROVED ADOPTED Member, South Ben Common Co cil FEB 1_2_ 2002 LGRE i'IA J.:ir.JDA CITY CLEW, SO. NEND. €M. Parcel I: Lot Numbered Eight (8) as shown on the recorded Plat of Landmark Business Park, Section Six, Part One, recorded October 19, 1989 in the Office of the Recorder of St. Joseph County, Indiana, as Instrument No. 8928004. Parcel II: A tract of land in the North Half of Section 19, Township 38 North, Range 2 East, City of South Bend, German Township, St. Joseph County, Indiana, said tract being more particularly described as follows: Commencing at the North Quarter corner of said Section 19; thence South 00° 54' 38" East on the along the East line of said Northwest Quarter 110.75 feet to the South right -of -way line of Brick Road; thence North 88'47'24" West on and along said South line a distance of 845.29 feet; thence South 00° 52'04" East a distance of 679.54 feet, said point being the true place of beginning; thence continuing South 00° 52' 04" East a distance of 175.75 feet to PC of a 25.00 foot radius curve to the right; thence along said curve through a central angle of 49° 40' 45 ", a chord length of 21.00 feet which bears South 23° 58' 19" West, an arc distance of 21.68 feet to a point of reverse curve with a 60.00 foot radius curve to the left; thence along said curve through a central angle of 93° 47'08". A chord length of 87.60 feet which bears South 010 55' 07" West, an arc distance of 98.20 feet; thence South 45° 01' 33" West a distance of 25.00 feet; thence South 89 °55' 38" West a distance of 395.50 feet; thence North 00° 52' 04" West a distance of 300.00 feet; thence North 89° 55' 38" East a distance of 426.53 feet to the place of beginning. EXHIBIT "1" ACCURIDE INTERNATIONAL LEGAL 'ed in 01trik's Office LAN 3 1 2602 LoRETrAJ. SUVA CITY CLEFIX, S®. BEND, IN, COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 02 -6 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND TERMINATING THE TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR ACCURIDE INTERNATIONAL, INC. South Bend Common Council Community and Economic Development Committee Report of Findings and Recommendation Related to Resolution 02 -6 11 February 2002 The Community and Economic Development Committee respectfully reports the following findings and recommendations regarding Resolution No. 02 -6: 1. Accuride Indiana, Inc. petitioned for tax abatement for real property and personal property associated with a new plant to manufacture precision ball bearing . drawer slides for the contract furniture industry. In its petitions, Accuride promised, among other things, that it would: a) Construct an approximately $4.5 million, 168,000 sft. building with approximately $1.5 million in manufacturing equipment at 4300 Quality Drive. b) Employ, as the result of the project 250 additional employees whose total annual salaries would be approximately $6.0 million. 2. In reliance on these promises, the South Bend Common Council in November 1992 granted to Accuride a 10 -year Real Property Tax Abatement and a 5 -year Personal Property Tax Abatement. 3. The Personal Property Tax Abatement expired in 2001, and the Real Property Tax Abatement will expire in 2004. 4. On November 20, 2001, South Bend Mayor Stephen Luecke received a letter from Accuride Vice President of Human Resources, Robert R. Morris, stating the company's "plans to permanently close its entire plant located at 4300 Quality Drive, South Bend ". The letter also indicated that 196 jobs would be eliminated, the first separation from employment would start on January 30, 2002, and the separation would be completed within a two week period. 5. On January 31, the City of South Bend's Legal Department presented for consideration by the Council Resolution 02 -6 which would rescind and terminate the Accuride tax abatements on grounds that Accuride's closing of its South Bend operation constitutes noncompliance with Accuride's contract to create and maintain certain employment levels within the City. On the same day, Chief Assistant City Attorney Aladean DeRose sent to the President of Accuride International, Inc. a letter and a copy of Resolution No. 02 -6 giving notice of these proceedings. 6. Based on this information and the oral testimony presented in a public hearing held earlier today, the Committee finds that Accuride has, in fact, failed to comply with its promised employment and salary levels. 7. The Committee further finds that Accuride has violated Indiana Code Sec. 6 -1.1- 43-3 which provides in part that "if a recipient of an economic development incentive fails to comply with the wage and benefit levels that the recipient proposed or promised to obtain an economic development incentive, the recipient forfeits the economic development incentive as of the date of determination ". 8. Therefore, the Committee recommends that the Council adopt Resolution 02 -6 which: a) Affirms the findings recited in this report; b) Revokes and repeals the Council's prior resolutions granting tax abatements to Accuride, and c) Directs the City Administration to pursue civil sanctions against Accuride as authorized by Section 2 -84.14 of the South Bend Municipal Code. 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 as amended as follows: Section II. Add after terminated, as it affects taxes due 2002, payable in 2003; taxes due in 2003, payable in 2004; and taxes due in 2004, payable in 2005. Section III. Add after repealed, as it affects taxes due 2002, payable in 2003; taxes due in 2003, payable in 2004; and taxes due in 2004, payable in 2005. Karl King Chairman