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HomeMy WebLinkAboutConfirming Tax Abatement - Sm. Or. Cases, Inc. 4622 Burnett Dr. South (5 Year Personal Property)RESOLUTION No. 1871 -91 Passed by the Common Council of the City of South Bend, Attest: May 20, 19 91 e� �_ _ City Clerk Presented by me to the Mayor of the City of South Bend. Indian May 21, 91 19 of Common Council. City Clerk Approved and signed by me _� _ �"� ___ 19_ /J Mayor RESOLUTION NO" A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA COMMONLY KNOW AS (4622 9URNETT DRIVE SOUTH) TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (five) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Sm"Or. CASES, 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 fro the purpose of tas abatement consideration; and Whereas, a Declaratory Resolution designated the area commonly known as 4622 Burnett Drive South and which is more particularly described as follows: Lot Numbered Sevel A (7a) as shown on the recorded Plat of Burnett Industrial Park Replat, recorded July 10,1990 in the Office of the Recorder of St" Joseph County, Indiana, as Instrument N".9018191. 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 pulbic hearing for the purposes of hearing all remonstrances and obhections 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. . The Common Council hereby confirms its Declaratory Resolution designating the area described herin 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. " The Common Council hereby determines that the property owner s qualified -----� � i lifi d for and is granted personal property tax dedution for a period of three (5) years. III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. PRESENTED NOT APPROVED ADOPTED 5-o26-91 Filed in Clerk's Office MAY 91991 City of South Bend Joseph E. Kernan, Mayor Department of Economic Development Jon R. Hunt Executive Director MEMORANDUM Ann E. Kolata Deputy Executive Director TO: HUMAN RESOURCES COMMITTEE OF THE SOUTH BEND COMMON COUNCIL FROM: DEPARTMENT OF ECONOMIC DEVELOPMENT SUBJECT: TAX ABATEMENT PETITION SM. OR. CASES, INC. 4622 BURNETTE DRIVE DATE: APRIL 5, 1991 On March 14, 1991, a petition for tax abatement consideration for real and personal property located at 4622 Burnette Drive was filed with the City Clerk by Sm. Or. Cases, Inc. Pursuant to Chapter 2, Article 6, Section 2 -77 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Economic Development 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 -1 and whether all zoning requirements have been met. The Department of Economic Development has reviewed the petition (a copy of which is attached), investigated the area and makes the following report. Project Description The petitioner proposes to construct a 8,640 square foot manufacturing facility in Burnette Industrial Park to be used for manufacturing textile and leather goods. The petitioner also proposes to purchase new equipment for the manufacture of those goods. The project will create five (5) new permanent full time jobs within the first year with an annual payroll of $32,418.55. The total project cost is estimated at $240,000 including equipment. 1200 County -City Building • South Bend, Indiana 46601 • 219/284 -9371 Fax 219/284 -9021 Redevelopment Economic Development Housing Rehabilitation Financial & Program Human Rights Ann Kolata & Business Assistance Kathryn Baumgartner Management Cynthia Love -Bush 284 -9371 Donald Inks 521 Eclipse Place Elizabeth Leonard 284 -9355 284 -9335 284.9475 284 -9335 Other Items 1. The property is properly zoned for the proposed use. A copy of the report from the Building Commissioner is attached. 2. The property is not located in an area designated as a Tax Abatement Impact Area by the South Bend Common Council. 3. The property is not located in a Tax Incremental Financing Allocation Area. Therefore, no action is required on behalf of the Redevelopment Commission. 4. The petitioner does qualify for five (5) years of personal property tax abatement under Section 2 -84.2 of the Tax Abatement Ordinance, Tangible Personal Property Tax Abatement. 5. The petitioner does not qualify for real property tax abatement under Sec. 2 -82, Industrial Development City -Wide General, of the Tax Abatement Ordinance. The minimum 3 -year requirement is that new development be not less than 10,000 square feet. In order to illustrate the cost of the abatement, the following estimates are provided: Personal Property Abatement Schedule Total estimated Equipment Cost $40,000 Year TCV% TCV Assessed 100% Tax Tax Tax (5 -8 yr) Rate Abated Paid 1 40 $ 16,000 $ 5,333 $ 772 $ 772 $ -0- 2 40 16,000 5,333 772 733 39 3 56 22,400 7,467 1,081 865 216 4 42 16,800 5,600 811 527 284 5 32 12,800 4,267 618 309 309 $ 4,054 $ 3,206 $ 848 Without Abatement: $ 4,054 With Abatement: 848 Amount Abated: 3,206 If constant tax rate of (14.4762, S.B. Centre) for five (5) years.