HomeMy WebLinkAboutConfirming Tax Abatement - 4701 Nimtz Parkway - Schafer Gear Works, IncRESOLUTION
3710-07
Passed by the Common Council of the City of South Bend, Indiana
February 26, 20 07
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
February 27, 20 07
Approved and signed by me FA ,-„a,-~, 2$ 20 ~~ .
l /
City Clerk
RESOLUTION NO. 3 ~ ~ 0 - 0
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
4701 NIMTZ PARKWAY
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
SCHAFER GEAR WORKS, 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
Schafer Gear Works, Inc., South Bend, Indiana, and which is more particularly described
as follows:
A part of the Southeast Quarter of Section 20 and part of the Southwest Quarter of
Section 21, Township 38 North, Range 2 East, situated in German Township, St.
Joseph County, State of Indiana, and being more particularly described as follows:
Lots numbered (10) ten and (11) eleven as shown on the recorded of the H.G.
Baus Centre -Phase One, recorded March 16, 1995, as document number
9507104 in the Office of the Recorder of St. Joseph County, Indiana.
and which has Tax Key Number 18-3042-1621, 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 (5) five years,
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 seg.
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.
Member of the o on Council
PRESENTED 2,2~,0~
NOT APPROVED
~iicd In Cierk'~ ®ffic~
JAN 2 5 2007
JOHN VOORDE
CITY CLERK, S0. BENi?, IN.
ADOPTED 2-Z~' °1
y
1200 COL7NTY-CI'CY BUILDING
227 W. JEFFERSON BOULEVARD
SOUGH BEND, INDIANA 46601-1830
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY SL ECONOMIC DEVELOPMENT
January 15, 2007 ,JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
Council Member Roland Kelly, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
SCHAFER GEAR WORKS, INC.
Dear Council Member Kelly:
Please find attached the Department of Community & Economic Development's report on a personal
property tax 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 the company's planned increase in productive capacity in its facility
located at 4701 Nimtz Parkway.
The report contains the Department's findings relative to the above petition. Schafer Gear Works will be
purchasing and installing new equipment. The total project cost for the equipment is estimated at $843,000.
The project meets the qualifications fora (5) five-year personal property tax abatement and a representative
from Schafer Gear Works will be available to meet with the Committee on Monday, February 12, 2007.
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 235-5825.
Sincerely,
PxoNE574/235-9371
FAx 574!235-9021
TDD 574/ 235-5567
l~pJ ~JtJ~
Sharon Terrell
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
Bill Schalliol
COMMUNITY DEVELOPMENT
PAMELA C. MEYER
574/235-9660
FAX: 574/235-9697
ECONOMIC DEVELOPMENT
DONALD E. INKS
574/235-9371
FINANCIAL LL PROGRAM
MANAGEMENT
ELIZABETH LEONARD
574/235-9371
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY HL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTNE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: SHARON TERRELL~
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
SCHAFER GEAR WORKS, INC.
DATE: January 15, 2007
On January 9, 2007, a petition for personal property tax abatement consideration for property located at
4701 Nimtz Parkway was filed with the City Clerk by Schafer Gear Works. 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 and 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 and whether all zoning requirements have been met.
The Department of Community and Economic Development has reviewed the petition, investigated the
area, and makes the following report.
PROJECT SUMMARY
Schafer Gear Works plans to purchase and install machinery and equipment for new gear grinding
capability to replace business lost, to retain employees, and to add capabilities necessary to secure new
business. The equipment consists of a gear grinding machine plus automation and a hob sharpener.
The project will invest $843,000. Total taxes to be abated during the (5) five-year abatement period is
estimated at $51,360. Total taxes to be paid during the (5) five-year abatement period is estimated at
$26,726.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELtzAEeTH LEONARD
FAX: 574/235-9697 574/235-9371
South Bend Common Council
RE: Tax Abatement for Schafer Gear Works
January 15, 2007
Page 2
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create (1) one new, permanent, full-time jobs in
the first year of production representing a new annual payroll of $34,320. The project will also maintain
(73) seventy-three existing, permanent full-time jobs representing an annual payroll of $2,722,263.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been granted or been
associated with (8) eight previo us tax abatements.
Term/Type Resolution No. Date
5-year personal property 3055-02 1/14/2002
10-year real property 2636-98 6/30/1998
5-year personal property 2541-98 1/12/1998
5-year personal property 2285-95 10/09/1995
10-year real property 2148-94 6/27/1994
5-year personal property 2055-93 7/12/1993
5-year personal property 1876-91 6/10/1991
5-year personal property 1631-88 7/25/1988
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 Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore,
the petition for personal property tax deduction must first be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications fora (5) five-year personal property tax abatement under section 2-84.2, Tangible
Personal Property Tax Abatement.
Tax Abatement Schedule prepared for:
SCRAPER GEAR WORKS, INC.
South Bend German 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $843,000
Assume constant tax rate of: 5.1376
Assume constant SRTC rate of: 7.0636
TTV Assessed Gross Less Net Percent Tax
Year TTV% (Year 1-5) Value Tax SRTC Tax Abated Abated
1 40% 337,200 337,200 $17,324 1,224 $16,100 100% $16,100
2 56% 472,080 472,080 $24,254 1,713 $22,541 80% $18,033
3 42% 354,060 354,060 $18,190 1,285 $16,905 60% $10,143
4 32°l0 269,760 269,760 $13,859 979 $12,880 40% $5,152
5 24% 202,320 202,320 $10,394 734 $9,660 20% $1,932
$84,021 5,935 $78,086 $51,360
Total Taxes Due During Abatement: $78,086
Total Taxes Abated During Abatement: $51,360
Total Taxes Paid During Abatement: $26,726
1 /15/2007
Tax
Paid
$0
$4,508
$6,762
$7,728
$7,728
$26,726
" -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ulimately be determined by the actual
assessed valuation and the then current tax rates.
CITY OF SOUTH BEND PETITION FOR
TANGIBLE PERSONAL PROPERTY. TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of new. manufacturing equipment, personal property, located
within the City of South Bend, hereby petitions the Common Council of the City of South
Bend for personal property (new manufacturing equipment) tax abatement consideration
and pursuant to I.C., 6-1.1-12.1, et. sea. • and South Bend Municipal Code Section 2-84.2;
et se for this petition states the following:
1. Describe the proposed project; including information about the new manufacturing.
equipment personal property ("equipment") to be installed, the amount of land to be
- used, if any; the proposed use of the equipment, and a general statement as to the
valu~ of the project to your business.
y'lJIL CitA-~E ~ND ..~it/,STAL~ /~/~G'.-~i~/E2y ~.v/) ~D,~~ v~-J~nl r -~J~?_
2. The project will create ! new, permanent jobs within the first year, representing
a new annual payroll of $ 3~13~v, ~ and will maintain 73 existing permanent
full-time and ~ existing part-time jobs representing an annual payroll of
$ ~ 7iz Nv3, ~. The projected annual salaries for each new position created are
esti ated to be as follows:
~.~~ 3 moo, ~
3. Estimate the total cost of the Equipment: ~~~3 ~4~, o0
4. (a) The Equipment is owned or to be owned by the following individuals or
corporations (if the business organization is publicly' held, indicate also the name
of the corporate parent, if any, and the name under which the corporation has filed
with the Securities and Exchange Commission): -
NAME ADDRESS INTEREST
~r,~~E2 G~AZkb/~, ~7p~A/,M rte, ~°,~r.~ ~ B~D~i/h/~P !c'~D ~7,~
DC i~ l~EiFQ ~' ~2~N.DiiyG /'?/f~i~/F P~.t/5 1~ur~'yr'Jq-~iG1~ /~-i/9 !~ }}08
(b) The following other persons lease, intend to lease, or have an option to buy this
Equipment (include corporate information as required in (4)(a) above, _ if
applicable)
NAME ADDRESS INTEREST
5. Give a brief description of the overall nature of the business and of the operations
occurring at the location for which tax abatement is requested: _
,~~/ffi/~`i~G~T~•e~~~ ~C ~Elfe,~ ffN~ r/~i~~F o ~~KTS /a l~v~TV~i~/~
OF.,Gi ~ i~.4~Gri15 -
6. The commonly known address of the pro erty where the Equipment is to be located
is: ~'O> /Vi~IT.~ Pi~1h7y.. ~yr~ ~.0, ~// ~G/~Z~
7. The Key Number of said property is: /~ 3o~z 1lo vi
8. Attach the legal description of the property where the equipment is to be located,
marked "Exhibit A," and is hereby incorporated herein.
9. Attach a map and/or plat describing the property where the equipment is to be
located, marked "Exhibit B," and is hereby incorporated herein.
10. Attach photographs of the property, taken within 30 days of filing of this petition,
marked "Exhibit C," and hereby incorporated herein.
11. The current assessed valuation of the tangible personal property to be replaced by the
new manufacturing equipment is $ ~ ~ ~~D, cry
(This information may be obtained from the S .Joseph County Assessors office 235-9523)
12. The current use of the real property where the Equipment is to be installed is
~F~-,2 Ma~vJF~ LTtJQ/~/~ F_ieRTi oNS and the current zoning is
_~ (use) and _~ (height and area) .
(This information may be obtained from the Building Department 235-9553)
C~Y,Tvvw.rrei~t~
(Revised 8/2/02) 2
13. List the real and personal property taxes paid at the location during the previous five
years, whether paid by the current owner or a previous owner:
YEAR REAL PROPERTY TAXES .PERSONAL PROPERTY TAXES
~~ ~1DQoio, 88 -~ / 7~304,~
- - - ~ - - .,
~i..si~~ 4 z-
200. ~- ~ -~ i 7 8?~~, i~ ~ i,PS 93~, ~v~
(This information may'6e obtained from the St. Joseph County Treasurers office 235-9531)
14. Describe the commitment made within the past five years by your firm to hiring
minority individuals, including number of minorities employed during each of the past
five-.years, specifying whether full time or part-time and whether permanent or
temporary employees. The Petitioner shall also list the current number of total
employees (full and part-time) and the current number of minority individuals (full
and part-time).
~EA2 ~M,n/o2~rr~s~r1?~vEt~ % Tst~ ~,oLvv~s /~,ee~/r~~>,,~/Lr~Es
?.fib lL 1S'D /Z -_
~i~.r ~ 1 7l
?..tx~9 /~J 83
ado ~- 13 9
15. Describe on-site child care or day care facilities, services or benefits currently offered
or proposed to be offered by the Petitioner for children of employees.
N~vf
16. What is your best estimate of the market value of the new Equipment after
installation? $ 8 ~ Oo,O, 00
17. What is your best estimate of the amount of taxes to be abated during each of the five
years aft ~ installation? $ X07- old foo z0o~ S/~p~ ~ za~~- ~/g/~/,~
18. What is the commitment your firm will make to minority employment during the five
years of tax abatement?
(Revised 8/2/02)
19. -The Equipment has not been installed as of the date of filing of this petition.
(The signature at the end of this Petition is verification of this statement)
20. The standard Industrial Classification Manual major group within which the proposed
project would be classified, by number and description:
3,~'~~ - SPc~,~ ~~-~/6~es ~Q~ vcs ~~rD ~,~~s
21. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and descr~tion:
22. The real property where the Equipment will be installed is located in the following
Allocation. Area, if any, declared and confirmed by the South Bend Redevelopment
Commission:
/12~D,ey- COi/y.M ~ G /~L f l~ill~
23. Other anticipated public financing for the project including, if any, industrial revenue-
bonding to be sought or already authorized, assistance through the United States
Department of Housing and Urban Development funds from the City of South Bend,
Small Business Association Sections 503 and 504 financing through the Business
Development Corporation of South Bend, Mishawaka, and St. Joseph County,
Indiana; or other public financial assistance, including but not limited to public works
improvements.
/1/oa/ r
24. Describe how and why the manufacturing equipment to be replaced or the facility in
which Equipment will be added is currently technologically, economically or energy
obsolete and how and why that obsolescence may lead to a decline in employment and
tax revenues:
(Revised 8/2/02) 4
~ir~3a~ 1~,~
25. The new manufacturing equipment will be used in the direct production, manufacture,
fabrication, assembly, extraction, mining, processing, refining, or finishing of other
tangible personal property and that the equipment was never before used by its owner
for any purpose in Indiana. The signature at the end of this Petition is verification of
this statement.
26. The following person(s) should be contacted as Petitioner's agent regarding additional
information and public hearing notifications:
Name:
Address
City, State, Zip Code: ~Sortr~-~3~.0..1N ~~~~
Telephone: ( 7+~ ~ 2.3~- ~ ! ! (P ~xr. ~,J'~
WHEREFORE, Petitioner requests that the Common Council of the City of South Bend,
Indiana; adopt a declaratory resolution designating the area described herein to be an
economic revitalization area for purposes of tangible personal property tax abatement
consideration, and after publication of notice and public hearing, determine qualifications
for an economic revitalization area have been met, and confirm such resolution. Petitioner
herein hereby verifies that the required $250.00 filing fee to cover processing and
administrative costs pursuant to Section 2-84.7 of the~Municipal Code of the City of South
Bend has been paid in full.
Name of Property Owner(s):
Filed in Cl~tlc'~ ®f~ii~e
JAN - 9 2007
JONPI VOORD~
CITY CLERI., 50. BEAID, IN.
(Signed Name)
(Typed or printed name and capacity of signor if signed by
an agent or representative of the owner)
(Revised 8/2/02)
E3~IT A
LEGAL DESCRIPTION OF REAL PROPERTY
A part of the Southeast Quarter (SE %.) of Section 20 and part of the Southwest Quarter (SW '/<) of Section
21, Township 38 North, Range 2 East, situate in German Township, St. Joseph County, Sate of Indiana,
and being more particulazly described as follows:
Lots numbered ten (10) and eleven (11) as shown on the recorded plat of H.G. Baus Centre -Phase One,
recorded March 16, 1995 as document Number 9507104 in the Office of the Recorder of St. Joseph
County, Indiana.
~I~A~ ~~ ~it,'~'~~'~ Q'~~d~e
JAN - 9 2007
JGIP! VGG~;DE
CITY CL~r y, SG, u~ND, IN,
EX~- ~3~ ~
S~ehafer Gear INc~rk~, Ine. Petition
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~x~~a~~ C
AT THE SCRAPER GEAR WORKS OPERATIONS,
YOU'LL FIND IT IS OUR PEOPLE THAT MAKE THE
DIFFERENCE. MORE THAN 200 MOTIVATED AND EXPERIENCED
EMPLOYEES KEEP OUR OWN INTERNAL GEARS RUNNING
SMOOTHLY, AND KEEP YOUR JOB ON TIME AND ON TARGET.
WE ARE FULLY DEDICATED TO QUALITY,
CONSISTENCY, VALUE AND SERVICE TO OUR
CUSTOMERS. WE UNDERSTAND THAT OUR
TECHNOLOGY, TRAINING AND TEAMWORK HAVE BUT ONE
OBJECTIVE: TO HELP YOU, OUR CUSTOMER, COMPETE
SUCCESSFULLY AND PROFITABLY.
WHEN THE TIME COMES FOR COMPLETE, DEPENDABLE,
INTEGRATED CAPABILITY IN GEAR MAKING, MACHINING OR
ASSEMBLY, CONTACT THE SCRAPER GEAR COMPANIES FOR A
NO OBLIGATION, OPEN DISCUSSION OF YOUR NEEDS.
SCXAFER
Fii~c~ I~ ~9~~ i~'~ ®'~~~i~~
JAN - 9 2007
JOHPI Vi}ORDE
CITY CLL'°I:, ~0. 3:F,D, IN.
THE MINDS AND MACHINES TO TAKE GEAR TECHNOLOGY INTO THE FUTURE
SCRAPER MACHINING COMPANY SCRAPER GEAR WORKS, INC.
53472 COUNTY ROAD 9 NORTH 4701 NIMTZ PARKWAY
P.O. Box t902 P.O. Box 986
ELKHART, IN 46515=1902 SOUTH BEND, IN 46624-0986
219-262-4577 PHONE 219-234-4116 PHONE
21 9-262-0913 FAx 219-234-41 I S FAx
SCRAPER PRECISION MACHINING
7603 HONEYWELL DRIVE
FORT WAYNE, IN 46825
219-490-2608 PHONE
219-490-2509 FAx
SCRAPER GEAR WORKS
ROCKFORD, LLC
5876 SANDY HOLLOW BOAC
P.O. Box 7240
ROCKFORD, IL 6 1 1 26-7 2 40
815-874-4327 PHONE
815-874-7448 FAx
a WWW.SCHAFERGEAR.COM
`I~ A MEMBER OF THE AMERICAN GEAR MANUFACTURERS ASSOCIATION MEMBER OF PRECISION MACHINED PRODUCTS ASSOCIATION