HomeMy WebLinkAboutConfirming Tax Abatement - 511 East Colfax & 210 North Niles - Odyssian Technology 5 YearRESOLUTION
3730-07
Passed by the Common Council of the City of South Bend, Indiana
April 9, 207
Attest:
City Clerk
Vice
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
April 10,
217
Approved and signed by me ...~pr ~ ~ .1.13, 20 U ~ .
~~ ~~~
City Clerk
i
RESOLUTION NO. 3 7 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
511 EAST COLFAX AVENUE
AND
210 NORTH NILES AVENUE
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR __
ODYSSIAN TECHNOLOGY
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
(COMPANY ADDRESS) South Bend, Indiana, and which is more particularly described
as follows:
Mid Pt 83 Ex 3' x 84.75' SW Cor OP Lowell; W 38.25' of E 80.25' Lot
84 W 38.25' of E 80.5' S 16.5' Lot 83 OP Lowell; 42' E End Lot 84 x
42' E End 1 Rd Side Lot 83 OP Lowell
and which has Key Numbers 18-5005-0116; 18-5005-0118 and 18-5005-0119, 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.
F~~~rrarED `~~~
1~OT ~``PPRO's~E~
F11~~ ~t1 C{vY'~y'S dfiflCe
JAN 1 5 2007
JOHN VOORDE
CITY CLERK, S0. EEND, iN.
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
07-26 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS 511 EAST COLFAX
AVENUE AND 210 NORTH NILES AVENUE TO BEAN ECONOMIC
REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR
PERSONAL PROPERTY TAX ABATEMENT FOR ODYSSIAN
TECHNOLOGY
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.
Karen L. White
Chairperson
1200 CouNTY-CITY BUILDING
227 W. JEFFERSON BOL'LEUARD
SOUTH BEND, INDIANA 46601-1830
PxoNE574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~ ECONOMIC DEVELOPMENT
January 8, 2007 SHARON T. KENDALL
EXECUTNE 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:
Odyssian Technology
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 511 East Colfax Avenue and 210 North Niles Avenue.
The report contains the Department's findings relative to the above petition. Odyssian Technology will be
purchasing and installing new equipment. The total prof ect cost for the equipment is estimated at $384,816.
The project meets the qualifications fora (5) five-yearpersonal property tax abatement and a representative
from Odyssian Technology will be available to meet with the Committee on Monday, January 22, 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,
Sharon Terrell
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
Bill Schalliol
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT
PAMELA C. MEYER DONALD E. INKS
5741235-9660 5741235-9371
FAX: 574/235-9697
FINANCIAL RC PROGRAM
MANAGEMENT
ELIZABETH LEONARD
574/235-9371
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, 1NDL4NA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY S~ ECONOMIC DEVELOPMENT
SHARON T. KENDALL
EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: SHARON TERRELL~
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
ODYSSIAN TECHNOLOGY
DATE: January 8, 2007
On December 11, 2006, a petition for personal propertyy tax abatement consideration for property located
at 511 East Colfax Avenue and 210 North Niles Avenue was filed with the City Clerk by Odyssian
Technology. Pursuant to Chapter 2, Article 6, Section 2-82 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 (a copy of which is
attached), investigated the area, and makes the following report.
PROJECT SUMMARY
Odyssian Technology is a high technology company focused on technology innovation and creative
product development related to advanced lightweight composites, multifunctional structure, smart
structure, and integrated systems and is involved in developing technology products for both military and
consumer marketplace.
The project will invest $384,816 in research and development equipment (see Attachment A) due to
Odyssian Technology purchasing and renovating two buildings in the East Bank Development Area
(EBDA) located at the above-referenced address. In addition, the company is applying for a real property
tax abatement.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 5741235-9371 ELIZABETH LEONARD
FAX: 574/235-9697 574/235-9371
South Bend Common Council
RE: Tax Abatement for Odyssian Technology
January 8, 2007
Page 2
Total taxes to be abated during the (5) five-year abatement period is estimated at $23,517. Total taxes to
be paid during the (5) five-year abatement period is estimated at $12,238.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create five (5) new, permanent, full-time jobs
representing a new annual payroll of $277,440. The project will also maintain three (3) existing
permanent full-time jobs representing an annual payroll of $483,584.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or
associated with any previous tax 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
South Bend Central Development Area which is a Tax Incremental Allocation Area and, also, the East
Bank Development Area (as listed in the Tax Abatement Guide); therefore, the petition for real
property tax abatement 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:
ODYSSIAN TECHNOLOGY
South Bend Portage 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $147,800
Assume constant tax rate of: 5.1524
Assume constant SRTC rate of: 7.0433
TTV Assessed Gross Less Net Percent Tax
Year TTV% (Year 1-5) Value Tax SRTC Tax Abated Abated
1 0.40 $59,120 $59,120 $3,046 $215 2,831 100% $2,831
2 0.56 $82,768 $82,768 $4,265 $300 3,965 80% $3,172
3 0.42 $62,076 $62,076 $3,198 $225 2,973 60% $1,784
4 0.32 $47,296 $47,296 $2,437 $172 2,265 40% $906
5 0.24 $35,472 $35,472 $1,828 $129 1,699 20% $340
$14,774 $1,041 13,733 $9,033
Total Taxes Due During Abatement:
Total Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
$13,733
$9,033
$4,701
2-Apr-07
Tax
Paid
$0
$793
$1,189
$1,359
$1,359
$4,701
-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 seq.' and South Bend Municipal Code Section 2-84.2,
et seq., 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 value of the project to your business.
We are a research and development firm. We are currently working 2 government
contracts Our equipment list is constantly growing. I have attached a list of our current
equipment and a list of our near future purchases. (Attachment A). This equipment will be
installed in our newl ac aired buildin at 511 E Colfax and 210 Niles Ave. u on com letion
of the build out.
2. The project will create 3 new, permanent jobs within the first year, representing a
new annual payroll of $155,440.00 and will maintain 3 existing permanent full-time
and 0 existing part-time jobs representing an annual payroll of
$ 224,593.60 (total $380,033.60)
. The projected annual salaries for each new position created are estimated to be as
follows:
Electrical Engineer (*1) $55,000-$70,000 per year
Mechanical Engineer (*1) $55,000-$70,000 per year
Business Operations Assistant $38,000- $40,000
2. Estimate the total cost of the Equipment
See attachment A for current value as well as estimated future value.
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):
(Revised 8/2/02) 1
NAME ADDRESS INTEREST
Odyssian Technology LLC 15270 Timber Trail Mishawaka, IN 100%
(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:
Odyssian Technology began operations in February 2003 as a result of an Indiana 215 Century
Research and Technology Fund grant.
Odyssian Technology is a high technology company focused on technology innovation and
creative product development related to advanced lightweight composites, multifunctional
structure, smart structure, and integrated systems. Odyssian is involved in developing technology
and products for both the military and consumer market place. Exciting work is underway in the
development of: hand launched aircraft with structurally integrated systems f_o_r_ use in
surveillance, communications support, and aerial mapping; advanced lipuid/gas containment
systems with integrated leak detection sensors for use in preventing the leakage of toxic and
environmentally damaging chemicals; thin film igniters for use in improving the reliability of
missile batteries, parachute deployment, and airbag safety systems; and various other products
involving the integration of electronic/electrical systems into structure, housing, and devices.- _
Odyssian Technology has leveraged its Indiana 21'~ Century grant to win several federally
funded Small Business Innovation Research (SBIR) programs.
Often Odyssian Technology teams with Indiana based universities, businesses, agencies, and
consultants during the pursuit and performance of our technology development programs.
Odyssian has worked with the University of Notre Dame, Purdue University, Rose-Hulman
Institute of Technology, Crane Navel Surface Warfare Center, Diversified Systems _ of
Indianapolis, as well as, multiple consulting professionals and professors from within Indiana. In
addition, we have worked with government and business organizations outside of Indiana
including, The Boeing Company, EaglePicher, Space Vehicle Directorate of the Air Force
Research Laboratory (AFRL), Propulsion Directorate of the AFRL, Aeronautical Systems
Command, and Air Vehicle Directorate of the AFRL.
6. The commonly known address of the property where the Equipment is to be located
is: 511 E. Colfax & 210 Niles Ave.
(Revised 8/2/02)
7.The Key Number of said property is: Kev# 18-5005-0119 - 42' E End Lot 84 & 42' E
End 1 Rd Side Lot 83 OP Lowell
Kev# 18-5005-0118 - W 38.25' of E 80.25' Lot 84 W
38.25' Of E 80.5' S 16.5' Lot 83 OP Lowell
Kev# 18-5005-0116 -Mid Pt 83 Ex 3' X 84.75' SW
Cor OP Lowell
S. 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 andlor 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 (none to be replaced)
(This information maybe obtained from the St. Joseph County Assessors office 235-9523}
1.2. The current use of the real property where the Equipment is to be installed is
It is vacant but was used as a printer repair shop and the current zoning is
CBD (use) and (height and area).
(This information may be obtained from the Building Department 235-9553)
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
None paid
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).
(Revised 8/2/U2) 3
We do not discriminate in who we hire. We advertise on the American Job Bank web site and
work closel with WorkOne. We ost affirmative action information on our web site as well as
advertisements and in our employee workspace Affirmative action information is also present
in our employee handbook.
We put an offer out to an African American student from Rose Hulman for a coop Electrical
Engineer position in 2005 and he reiected our offer because he had another iob. Currently
50°l0 of our company's work force is made up of women.
Year 2004 2005 2006
Full Part Full Part Full Part
Black
Hispanic
Asian
Indian
Other (women)
2 1 2 1 1 1
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.
We do not offer day care at this time.
16. What is your best estimate of the market value of the new Equipment after
installation? Approximately $150,000.00
17. What is your best estimate of the amount of taxes to be abated during each of the five
years after installation? We are unsure of total tax amount to be abated.
These are the taxes we paid for 2004 and 2005
2004 Taxes 5223.78
2005 Taxes $1,513.56
18. What is the commitment your firm will make to minority employment during the five
years of tax abatement?
We have not discriminated and we do not plan on doing so in the future.
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:
Standard Industrial Codes: 6794, 8711
North American Industrial Classification 541330, 541690, 541710
(Revised 8/2/02) 4
21. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description:
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: CBD
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. We will receive 504 financing from the BDC for the build
out. We are also pursuing a Facade Grant from the City of South Bend this will include an
Architectural Assistance Grant.
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: Currently the buildings at 511 E. Colfax and 210 Niles Ave. are in need of
repair and upgrade. The roof over 210 Niles Ave. (where the large equipment will be placed)
needs to be replaced. In order to utilize this portion of the facility for research purposes it
will require a new roof, upgraded electrical power and door and window replacement (to
make it more energy efficient). Internet and phone lines are also necessary. We plan on
power washing and painting, renovating the bathroom, reworking the facade, landscaping,
paving parking areas, adding security and lighting and adding utilities as needed to support
our research laboratory. 511 E Colfax is in need of upgrading phone and internet as well as
building out to provide more of an office environment, with offices, conference rooms,
restrooms, engineering work area and employee break room. We plan on reworking the
facade by adding windows and new doors, lighting, landscaping, security and paved parking
areas. All of these improvements are necessary to create an environment conducive to
successful research and development. We feel that without the appropriate tools in place it
will be very difficult to win Federal Contracts or hire skilled individuals from outside of the
area.
25. The new manufacturing equipment will be used in the direct production,
manufacture, fabrication, assembly, extraction, mining, processing, refining, or
(Revised 8/2/02) 5
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: Susan Bennett
Address: 15270 Timber Trail
City, State, Zip Code: Mishawaka, Indiana 46545
Telephone: 574-257-7555
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):
Barton Bennett and Susan Bennett
By:
;~ r ~
~r.~iu ~~L, ,,.
(Signed Name)
(Signed N me)
arton Bennett/ Owner Hannah Maria LL
/Owner Odyssian Technology LLC
(Revised 8/2/02) 6
..__
ment A
E ui ment Price Installation Total
Vent Hood $ 1,700.00 $ 750.00 $ 2,450.00 R8D
Millin Machine $ 30,000.00 $ 800.00 $ 30,800.00 RED
Structural Test S stem R8D
Direct Write S stem $ 50,000.00 $ 2,000.00 $ 52,000.00 R8D
Oscillisco e $ 6,500.00 $ 6,500.00 R8D
Clean Room $ 18,166.00 $ 2,000.00 $ 20,166.00 R8D
Thin Film De osition Machine R8D
Securi S stem $ 7,000.00 $ 7,000.00 RSD
Com uters & Related E uipment $ 15,000.00 $ 15,000.00 R8D
Additional Phones $ 900.00 $ 2,000.00 $ 2,900.00 RED
Office furnishin $ 10,000.00 $ 10,000.00 R8D
Refri erator $ 500.00 $ 500.00 R8D
Stove $ 500.00 $ 500.00 R8D
$ 140,266.00 $ 7,550.00 3 147,816.00
-Projections based on current needs and funding. Some equipment may require government approval
prior to securing title with Odyssian
23. In the following chart please list the companies that will be used for the construction or rehabilitation associated with the
project. Indicate the name and address of each company; list the dollar amount of the work to be provided by each company;
indicate whether or not 100% of the workers are employees of that company or independent contractors; indicate whether or not
the company pays workers wages that meet the wage rates for each classification of laborers and mechanics published by the U.S.
Department of Labor; indicate whether or not the company contributes to a health plan for its employees; indicate whether or not
the company contributes to a pension plan for its employees; and indicate whether or not the company maintains an affirmative
action plan or other similar plan to achieve racial diversity. Additional information may be requested for verification of this
information. (If additional space is needed, please photocopy this page).
(Rev 8/11/03) 10
Construction Company Cost of All Workers Pay Contribute Contribute Maintain
Name and Address Work Employees or Wage to a to a Affirmative
or independent Rate Health Pension Action
22. In the following chart please indicate companies that were used for purchasing materials used in the construction or
rehabilitation associated with the project. Include the location of the company, description of the materials, and cost of the
materials. Additional information may be requested for verification of this information. (If more space is needed, please
photocopy this page)
Name and Address of Comoanv Descriation of Materials Cost of Materials
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