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Home My WebLink AboutConfirming Tax Abatement - MGE Wholesale Inc. 5021 Nimtz Parkway (5 Year Personal Property)Attest: RESOLUTION 4422 -15 Passed by the Common Council of the City of South Bend, Indiana February 9, 15 20 . City Clerk Attest- President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana February 10, 2015 Approved and signed by me ' &Y-? 8�1 201L. City Clerk RESOLUTION NO. 14 � LL -I jF A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 5021 Nimtz Parkway, South Bend IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR MGE Wholesale 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 5021 Nimtz Parkway, South Bend, Indiana, and which is more particularly described as follows: Business personal property and which has Key Numbers to be assigned 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 11. 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 sea. 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 ~l E40.7. APPROVED WDOPTEO VC(� t5 Member of the Common Council Filed in r" m6e CIiS ^t i ri ®END. IN 227 W_11 *FH MON HOW.F V AR D Surrl: 1400 S. SOU 111 RLND, IN 46601 -1830 January 16, 2015 CITY OF SOUTFI BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR 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: MGE Wholesale 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 lax 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 a new distribution facility located in the Blackthorn area, the report contains the Department's findings relative to the above petition. MGE Wholesale Inc. will be purchasing and installing new equipment. The total project cost for the equipment is estimated at $ 200,000. The project meets the qualifications for a (5) five - year personal property tax abatement and a representative from MGE Wholesale Inc. will be available to meet with the Committee on . lanuary 26, 2015. 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, Brock Z,eeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLANNING NEIGHBORHOOD ENGAGEmn:NT BHs1NE:ss DE:vrl.oPnle:vr ECO,NOnuc Resonwr.s .III IN FAIN PAN'WI.A C. MEYER CHRN FICI.DINC. 11ROCK Y.F. PIi 227 W.IEFPHRSON BOULEVARD Sun 'L: 1400 S. SOI n'11 BILND. 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: BROCK ZEEB PILONF.: 574/235 -9371 FAR: 574/235 -9021 SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: MGE Wholesale Inc. DATE: January 16, 2015 On January 14, 2015 a petition was filed requesting consideration of personal property tax abatement located at 5021 Nimtz Parkway, South Bend, IN was filed with the City Clerk by MGE Wholesale 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 MGE Wholesale Inc. will lease building 5021 Nimtz Parkway from the Foster Group, LLC. MGE will operate a distribution facility at the location. Roughly 200,000 will be spent in business equipment to operate the facility. The facility will create 30 new jobs in the first 2 years and occupy a vacant building in the Blackthorn area. New project taxes will be $ 19,040. Total taxes to be abated during the (5) five -year abatement period are estimated at $ 8,220. Total taxes to be paid over five years on the new and existing equipment are estimated at $ 10,820. EMPLOYMENTIMPACT PLANNING Ni.CamORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC. RESOURCES ATIN KAIN PIMELA C. MF)TR CHRIS FIELDING BROCK 7.F.FP Per the petition, it is estimated that the project will (a) create 30 permanent, full time position within the first 2 years, representing a new annual payroll of $ 967,200 (b) retain 20 full time positions, representing a payroll of $644,800. The Project will create 40 full time positions over 10 years, representing $1,289,600 of annual payroll. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous 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 River West Development Area 4. 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, January 16, 2015 p. 2 MGE Wholesale, Inc. ( 2 / \ $ ( ] \ { )\ >f/ � �r |\ �\ {4 /\ { }\ \ \ \! \)0x )) §)) | ;){f ;! #!! !I!i< -`�•t \ /\ � \) /\ / #} \) {// ' ■9RGS! SwS§ fE , ®90 80 !: !!«rl =..=� \)!, § §; §;§§r §§ s•9RSme /)GQQy# \)\ \\))))))) - !!!!§ « §# §@@&!! ;!!: . { \ �\ {4 /\ { }\ \ \ \! \)0x )) §)) | ;){f ;! #!! !I!i< -`�•t \ /\ � \) /\ / #} \) {// City of South Bend �> a4�UTego Petition for I iceintiyes : Petition mastlnclud o$2S0 I1n 4 jl gfee'payabie to the City- Clerk's Office oronllne vio the website at http.!j1s uthben` din. gov/ grevemment% ontent /tax•abatementbeJorepiocessing can: be complete - rats.. General Information Project Name Project Number Legal r ame sred itsaxet y w state MGE Wholesale, Inc. Business structure incorporated companywebsite - - NA Proposed Project Information PFOpo{edprojeetaddcess parent companyname 5021 Nimtz Parkay - NA CJry, State Zip South Bend, IN 46628 l owner ,e Lega .; Bradley Foster Site acteage dr Saeage required 'r; 11 Is the real estate owned or owned Square ferret facility Primary Contact Information 120,000 If leased bywkom MGE Wholesale frimary,2ompany contact name Bradley Foster Title President Address of tympany contact 5021 Nim�Parkway Phone 574- 257 -0020 City, SUte,zip ", South Bend, IN 46628 Email brad @MGEgroup.com Senior Official Company senior official name Same as above Yme Address. ofcompany contact gf different from gboyE Phone Chy, SU2e, 2fP Email Consultant Information/Agent Hired business consultant/agent t name Consultant release (Y /N) Address Loral economic development partners a royal N CIty Sbna, Zlp _. Email Overview .. Project .... Brief description of pour The Foster Group is seeking to purchase the facility in Blackthorn to house a wholesale distribution company. The facility company, project, and why the will be owned by the Foster Group LLC and leased to MGE Wholesale. The facility has sat vacant for 3 years and property is necessary for expenenced vandalism to the mechanical systems during that lime. We are seeking to purchase the facility and make economlegrowth: upgrades to the building to accommodate a new wholesale operation. The eligibility of the building and Personal Property for Tax Abatement will allow for a positive NOI in the first two years as _ we complete construction, design, upgrades and I u ch oo tie company. - - - - - -_ Certified Technology Park appropriate N Community Revitalization Enhancement District N Catlfy that the Building Permit has not been N Nmbof resWendalunitsuateitby. If this Ise petition for personal property tax abatement, has - the - ul ment been lnstalletl NO Full-Time Permanent Indiana-Resident Positions by Calendar Year :.Oal'anUar Year a sj;JObs retained ,' Total hourly cumulathie# of net NEWfull time ` Hourly average wage, w /o" Total training Total #Lobe wage w /o'. permanentjabs created at projett - - benefts or bonuses, of expenditure- trained - not hingew; cumuladvenetnewiobs not cumulative - bonuses.. cumulative 2014`.. "` ". 50 15.50 2015;x,. `. f.;. ;'. 20 2016 .' 10 2017,5..': - -r'; ., 10 2018�'S. . 2019: u 2020 2021 2022, 2023 Z 2024 ';. .,.;" 2025'k, ti FUlitime - - - - Part time Laborers '� 31 ` Technical Managerial 4 Administrative: MI 5 o WITSFffi7e n ua M—Ponsible tor coor na ng. WorkOne on recultin 7 - - Dee Dee Burke Does your company have an EEO hiring policy? - Are you an EEO employer? yes Y es rn ' Pleasedescribeyourcommitmentto the last threeyears: diversity and inclusion by detailing your Year.- - ouheadr and recruitment efforts for the last _ 2015 three years as well as current policies. - - -Full Time Part7lme - Full Time Part Time Full Time Part Time - .. Black - - - Hispanic_ ' Asian Female 2 1 Other • :;� Complete below for Real or Personal Property Tax Abatement only. Please sign for all requested incentives. 'Pu'blic' Benefit Item: 106-miation is required on both the construction companies.and the colipanieswhich will provide materials purchased for this project, e co Quality Pleas the_ table below with the appropriate information. If (Yes or NO) You qual the pi rits,'Please enterthe full amount of available points. Earned Points Available Points , - Construction Relabed,(Contractorsl- X' Employ Local Companies (75 %) Yes 20 20 B. Purchase Materials from Lo cal Companies (75%) Yes 20 20 �C: Require Employees( vs. Independent Contractors 19 -D, Require Prevailing Wage (Davis Bacon) 22 E Require Health,Benefits yes 22 22 F Require Pension Benefits yes 18 18 G. IMaintain Affirmative Action Plan 20 I ISub -total Construction Related: 80 141 2 Wage &,Benefit Related Towner): X Pay Target Wage Levels 33 B. Provide Health Benefits yes 34 34 C. Prov1de Pension Benefits 29 D. Provide Training yes 28 28 E. Provide Child Care is F. Provide Transportation Assistance 14 G. lProvide Employer Assisted Housing program 9 Sub-total Wage& Benefit Related: 62 162 3 .Workforce Related: A. Create New Jobs yes 42 42 B. Retain Existing Jobs yes 41 41 -C. Maintain Affirmative Action Plan 35 D. Provide Targeted Hiring Preference yes 34 34 Sub-total Workforce Related: 117 152 4 Support a Municipal Facility: A Support a SB Municipal Facility (donations to the zoo, conservatory, muse . um, etc.) yes 84 84 Name of Facility I JSub -total Municipal Facility: 184 1 84 Sub-total from Above: 1343 1 Floe 53 I,- lee 1) How do I pay my petition filing fee? Yourpetition filingfee can be paid either in person or via mail to: Or online via paypal at: City Clerk's Office http: / /southbendin.gov /government/ Attm Deputy City Clerk content /tax- abatement 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 ofpeople 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 sheinizefasouthbending_ov i a i r CITY CREeD District Boundary � orece scum sm�nn Ford 0'w -"'oh, N J� Poland ' 2 Fisher 1 Tutt Tuff $.uiue 3 Koh- Ohio - °'. a 3 ¢ IBnibon Stull 'c 3 's' rJ _ E U q BroaU y Edwartl 8 m m �_ Haney Legend m- OOR nPcl `� - x Intlian E O 9uth Bend wl9 nlaa _ - 3 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 ofpeople 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 sheinizefasouthbending_ov i a i r CITY