HomeMy WebLinkAboutConfirming Tax Abatement - 5855 Carbonmill Drive - GWSB Properties, LLCRESOLUTION
3789-07
Passed by the Common Council of the City of South Bend, Indiana
September 24,
Attes
City Clerk
cent of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
September 25,
20 07
20 07
Approved and signed by me September 25, 2007
~tc'~,~i.,.~ C/lc..c.,C~_
City Clerk
RESOLUTION NO. 31 $ `1 ` 0 ~
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
5855 Carbonmill Drive
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A (6) SIX-YEAR REAL
PROPERTY TAX ABATEMENT FOR
GWSB Properties, LLC
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
5855 Carbonmill Drive, South Bend, Indiana; and which is more particularly described as
follows:
Lot Numbered One (1) as shown on the recorded Plat of U.S. 31 Industrial
Park, Phase II, recorded October 9, 2001 as Document Number 0150153
in the Office of the Recorder of St. Joseph County, Indiana
and which has Key Number Number 25-1009-015210, 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
remonstrance's 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 Real 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 Real property tax deduction for a period of (6) six years, 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-l.1-I2 et se .
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.
of the ommo ncil
PRE~t(JTED C`'Z~{~O7
NOT APPROVED
ADOPTED ~ - ~L`'~ ~ ~1
F;~ed I Cnn 19Ck'S O~fiCe
JUL ~- 2 2007
JOHt~I SO ~BE D, IN.
~n'1(CLERK,
June 22, 2007
Council Member Derek D. Dieter, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
GWSB Properties, LLC
Dear Council Member Dieter:
Please find attached the Department of Community & Economic Development's report on a
commercial real property tax abatement petition for the above-referenced petitioner for the addition
of mechanical equipment for temperature and humidity control for a facility located 5855 Carbonmill
Drive. Also attached is a copy of the petition, Statement of Benefits form, and supporting
information.
The report contains the Department's findings relative to the above petition. GWSB Properties, LLC
is seeking a (6) six-year real property tax abatement, and a representative of GWSB Properties, LLC
will be available to meet with the Committee on Monday, July 23, 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 235-9278.
Sincerely,
Kathy Hahn
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
Bob Mathia
TAX ABATEMENT REPOR T
TO: SOUTH BEND COMMON COUNCIL
FROM: Kathy Hahn
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
GWSB Properties, LLC (Lessee: Corporate Services, Inc.)
DATE: June 22, 2007
On June 22, 2007, a petition for real property tax abatement consideration for property located at
5855 Carbonmill Drive, South Bend was filed with the City Clerk by GWSB Properties, LLC. .
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, investigated
the area, and makes the following report.
PROJECT SUMMARY
Corporate Services, Inc., the lessee, performs marketing services including printing, packaging,
assembly, warehousing, and distribution. The owners of the project, GWSB Properties, LLC
intend to add mechanical equipment to provide temperature and humidity control to the entire
operation. Due to the types of materials which Corporate Services, Inc. stores and handles for their
current and prospective clients, humidity control is a contractual requirement to obtaining and
keeping their business. Without it, they cannot operate in that facility. The estimated dollar value of
the project is $300,000 to $500,000.
Total taxes to be abated during the (6 )six-year abatement period are estimated at $36,094 for a
project cost of $300,000 and $60,157 for a prof ect cost of $500,000, which is the range the company
has provided.
Total taxes to be paid during the (6) six-year abatement period are estimated between $25,430 and
$42,383.
EMPLOYMENT IMPACT
Per the petition, the redevelopment and rehabilitation project will create eighteen full-time
permanent jobs within the first year, representing a new annual payroll of $465,000 and will maintain
six existing permanent full-time jobs with an annual payroll of $156,000. Of the existing jobs, five
full time positions are held by minorities. The payroll numbers do not include benefits, for which all
employees have eligibility.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been granted or
associated with (5) five previous tax abatements:
Term/Tyne
6-year real property
6-year real property
10 year real property
10 year real property
10 year real property
Resolution No. Date
2102-94 2/28/94
2242-95 5/22/95
2457.97 5/6/97
2634-98 6/22198
2917-00 8/28/00
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 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 does meet the
qualifications fora (6) six-year real property tax abatement under Section 2-83.1, Industrial
Development in an Economic Development Target Area.
Tax Abatement Schedule prepared for: 2&-Jun-o7
GWSB Properties, LLC
South Bend German Township 6 Year Real Property Abatement Schedule"
Total estimated Project Cost: $300,000
Base Assessed Value: $255,000
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 5.1376%
Assume constant SRTC of: 21.7293%
Assessed Gross Less Net Percent Tax Tax
Year Value Tax SRTC Tax Abated Abated Paid
1 $255,000 $13,101 $2,847 $10,254 100% $10,254 $0
2 255,000 13,101 2,847 10,254 85% 8,716 1,538
3 255,000 13,101 2,847 10,254 66% 6,768 3,486
4 255,000 13,101 2,847 10,254 50% 5,127 5,127
5 255,000 13,101 2,847 10,254 34% 3,486 6,768
6 255,000 13,101 2,847 10,254 17% 1,743 8,511
$61,524 $36,094 $25,430
Total Taxes Due During Abatement: $61,524
Total Taxes Abated During Abatement: 36,094
Total Taxes Paid During Abatement: 25,430
-This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
Tax Abatement Schedule prepared for: 2s-Jun-o~
GWSB Properties, LLC
South Bend German Township 6 Year Real Property Abatement Schedule*
Total estimated Project Cost: $500,000
Base Assessed Value: $425,000
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 5.1376%
Assume constant SRTC of: 21.7293%
Assessed Gross Less Net Percent Tax Tax
Year Value Tax SRTC Tax Abated Abated Paid
1 $425,000 $21,835 $4,745 $17,090 100% $17,090 $0
2 425,000 21,835 4,745 17,090 85% 14,527 2,563
3 425,000 21,835 4,745 17,090 66% 11,279 5,811
4 425,000 21,835 4,745 17,090 50% 8,545 8,545
5 425,000 21,835 4,745 17,090 34% 5,811 11,279
6 425,000 21,835 4,745 17,090 17% 2,905 14,185
$102,540 $60,157 $42,383
Total Taxes Due During Abatement: $102,540
Total Taxes Abated During Abatement: 60,157
Total Taxes Paid During Abatement: 42,383
' -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
28-Jun-07
GWSB Properties
Public Benefit Points Summary
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Proiect Related:
1. A. Redevelop a Site that has Special Needs Y 49 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan Y 36 36
Sub-total Project Related: 85 120
2. Super Size Proiects (point values are cumulative):
A. 100% to 199% N 0 25
B. 200% to 299% N 0 68
C. 300% to 399% N 0 65
D. 400% and Over N 0 52
Sub-total Super Size Projects: 0 210
3. Construction Related:
A. Employ Local Companies Y 20 20
B. Purchase Materials from Local Companies Y 20 20
C. Require Employees vs. Independent Contracts Y 19 19
D. Require Target Wage Levels Y 22 22
E. Require Health Benefits Y 22 22
F. Require Pension Benefits Y 18 18
G. Maintain Affirmative Action Plan Y 20 20
Sub-total Construction Related: 141 141
4. Wape & Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits Y 29 29
D. Provide Training Y 28 28
E. Provide Child Care N 0 15
F. Provide Transportation Assistance Y 14 14
G. Provide Employer Assisted Housing program N 0 9
0
Sub-total Wage & Benefit Related: 138 162
5. Workforce Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan N 0 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 83 152
6. Pav for Municipal Infrastructure: (point values are cumulative):
A. Pay for Oversizing or Upgrading N 0 14
B. Pay for 26-50% of Extension Cost N 0 26
C. Pay for 51-75% of Extension Cost N 0 39
D. Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7. Support a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 447 1000
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
CITY OF SOUTH BEND
PETITION FOR REAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of real property, located within the City of South Bend,
hereby petition the Common Council of the City of South Bend for real property tax
abatement consideration and pursuant to I.C.. 6-1.1-12.1-1, et seq.• and South Bend
Municipal Code Sec. 2-76 et se .for this petition states the following:
1. Describe the proposed redevelopment or rehabilitation project, including
information about physical improvements to be made, the proposed use of the
improvements, and a general statement as to the importance of the project to
your business:
Addition of mechanical equipment to provide temperature and humidity
control to the entire operation. Due to the types of materials we store
and handle for our current and prospective clients, humidity control is
a contractual requirement to obtaining and keeping the business.
Without it, we cannot operate in this facility.
Land Size Approx 12 acres; Building Size 198,000 sq.ft.
2. Describe the overall nature of the business and of the operations occurring at
the Property (attach additional sheet if more space is needed):
Marketing services, including packaging, assembly, warehousing and
distribution.
3. Estimate the dollar value of the project (excluding land): $ 300,000-$500,000
4. The current assessed valuation of the real property before rehabilitation,
redevelopment, economic revitalization, or improvement: $5,072,100
(Rev 10/23/06)
5. (a) The real property for which tax abatement consideration is petitioned (Property) 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 (%)
GWSB Properties, LLC 140 LN 470C, Lake James 100%
Angola, IN 46703
(b) The following other person(s) lease, intend to lease, or have an option to buy the Property
(include corporate information as required in 5(a) above, if applicable);
NAME ADDRESS I1V'TERFST(%)
REW, LLC d/b/a_ 5681 W Cleveland Rd 100%
Corporate Services, Inc. South Bend, IN 46628
6. The commonly known address of the Property is:
5855 Carbonmill Drive, South Bend, IN 46628
7. The Key Number(s) of said property is: 25-1009-015210
8. A legal description of the above address is attached hereto, marked AExhibit
A,@ and incorporated herein.
9. A map and/or plat describing the Properly is attached hereto, marked AExhibit
B,@ and incorporated herein.
10. Photographs of the properly, taken within two (2) weeks of filing of this petition,
are attached hereto, marked AExhibit C,@ and incorporated herein.
11. The redevelopment or rehabilitation project itself will create 18 full-time
and 0 part-time permanent jobs within the first year, representing a
new annual payroll of $ 465,000 and will maintain 6 existing
permanent full-time and 0 existing permanent part-time jobs including
existing permanent full-time minority employment of 5 and existing
permanent part-time minority employment of 0 with an annual
payroll of $ 156,000. These payroll numbers do not include benefits,
which all are eligible for.
12. The projected annual salaries for each new position indicated above are
2
(Rev 12/29/06)
estimated to be as follows (If more space is
sheet):
4 -Account Managers & Administrators
1 -Team Lead
1 -Shipper/Receiver
1 -Maintenance
11 -Production/Pick Pack
needed, please attach a separate
Average
$42,500 Annual
$25,000 Annual
$25,000 Annual
$25,000 Annual
$20,000 Annual
13. Provide current employment wage information including; base rate, cost-of-
living allowances, hazardous-duty pay, incentive pay including commissions
and production bonuses, on-call pay and tips. Do Not Include; back pay, jury
duty pay, overtime pay, severance pay, shift differentials, non-production
bonuses, and tuition reimbursements (average hourly rate or range):
Full-Time Part-Time
Laborers $ 8-$15 per hour Same
Technical $10-$20 per hour Same
Managerial $30,000-$100,000 annual Pro-rated
Administrative $10-$25 per hour Same
14. Indicate whether your company provides the following benefits (use Y/N):
Y Health Care Benefits
Y Pension Plan
Y Employer Provided Training (recognized or certified training/educational
courses or programs)
_ N Day Care (provide or contribute to the cost of child day care for its
employees)
Y Transportation Assistance (provide direct or indirect support and
assistance to its employees without private transportation to get back
and forth from residence to place of employment)
N Employer-Assisted Housing Program (provide an employer-assisted
home ownership program)
N Targeted Hiring Preference (provide hiring preference for residents
of Census Tracts designated by the Community & Economic
Development Dept. that have the highest unemployment or the
highest percentage of low and moderate income individuals).
(Additional information may be requested for verification of the above
items)
We are an Equal Employment Opportunity Company as demonstrated
by our demographics.
15. List the real and personal property taxes paid at the location during the
3
(Rev 12/29/06)
previous five years, whether paid by the current owner or a previous owner:
Year Real Property Taxes Personal Property Taxes
2003 $ 6,725.42
2004 16,526.32
2005 44,489.54
2006 76,308.16
(This information may be obtained from the St. Joseph County Treasurers office 235-
9531)
16. Please list the number of full-time and part-time minority employees for each
of the last three years:
Year 2007
Full Part
Black 42 -
Hispanic 18 -
Asian 2 -
Indian 1 -
Other - -
2006 2005
Full Part Full Part
49 - 17 -
16 - 2 -
2 - 2 -
1 - - -
1 - -
17. Does your business maintain an.affirmative action plan or other similar plan
in order to achieve racial diversity? If yes, please briefly indicate specific
goals, objectives, and means as designated by your plan:
Corporate Services does not have a formal plan but our demographics
demonstrate our racial diversity.
18. Indicate whether or not your project meets any of the following criteria
(contact Community 8~ Economic Development Dept. 235-9335 for information on
this section): NIA
Conversion to residential use of a commercial AEligible Building@ as
designated by the Community & Economic Development Dept.
Rehabilitation of a building that is either designated as a National
Register or local landmark or is eligible for nomination as one, located
in a National Register or local landmark district, or rated as
Outstanding or Significant in the most recent Historic Preservation
Commission county wide survey.
4
(Rev 12/29/06)
Rehabilitation and reuse of a property that is designated a Problem
Property by the Community and Economic Development Department
Pays for the cost of cleaning up a ABrownfield, @ which is any site,
building facility or complex that has been designated a Brownfield by the
Community and Economic Development Department.
Achieves a physical element identified in a development or revitalization
plan that has been approved by the Council
19. Is your business based upon licensing intellectual property from research
conducted at a public or private university, college, or community college located
within St. Joseph County, Indiana? If yes, please include a description of the
research based aspects of the business (attach additional sheet if more space is
needed):
NO
20. Does your business financially support a Municipal Facility (i.e. municipally
owned park, recreation center, cultural, arts, or entertainment facility)?
NO
21. Is your company incurring any of the cost of extension or oversizing of municipal
infrastructure serving the project site? This includes water, sewer, drainage
facilities, wastewater treatment facilities, road and street improvements, street
lighting, traffic control and related public improvements (attach additional sheet if
more space is needed):
NO
22. Information is required on the companies through which construction materials
will be purchased for the project. (Please complete the table on page 8 of this
application). See referenced table.
23. Information is required on the construction companies that will be utilized for
construction of the project. (Please complete the table on page 9 of this
application). See referenced table.
5
(Rev 12/29/06)
24. No building permit has been issued for construction on the property in
connection with the improvement in question as of the date of filing of this
petition. (The Property Owners signature at the end of this application is
verification of this statement). True
25. The Standard Industrial .Classification (SIC) or North American Industry
Classification Systems (NAILS) major group within which the proposed project
would be classified, by number and description:
5614 -Business Support Services
26. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description:
561490 -Other Business Support Services
27. The current use of the Property is warehouse 8< distribution (see Item 2)
and the current zoning is L.1.
(This information may be obtained from. the Building Department 235-9554).
28. Has your business been granted previous tax abatement(s)? If yes, please
provide type (real and/or personal property) and date of approval.
GWSB -Real Properly -August 2000
REW,LLC, d/b/a Corporate Services, Inc. -Real Property
Mav 1997; May 1998; Mav 2000 (other separate locations)
29. 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, Industrial Revolving Fund, Neighborhood Business
Development Corporation, Corporation for Entrepreneurial Development; or
other public financial assistance, including but not limited to public works
improvements.
NONE
30, The following person(s) should be contacted as Petitioner=s agent regarding
6
(Rev 12/29/06)
additional information and public hearing notifications:
Owner/Manager: Lessee:
Name: William Cupp, Jr. Robert E. Wozny
Address: 140 LN 470C, Lake James 5681 W Cleveland Rd
City, State, Zip: Angola, IN 46703 South Bend, IN 46628
Telephone: 260-433-0742 574-271-2055 x 201
31. Please indicate the name, address, and telephone number of the person who
will work with Employment Training Services (ETS) for employee recruitment,
and sign the ETS form attached to the petition if the real tax abatement is for
warehouse or industrial developments.
Name: Kevin Kennelly, Director of Human Resources
Address: 5681 W Cleveland Road
City, State, Zip: South Bend, IN 46628
Telephone: 574-271-2055 x 282
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 real 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):
GWSB Pro erties LLC
By:
(Signed Name) William upp, Jr.
(Typed or printed name and capacity of signor if
signed by an agent or representative of the
owner.) Member/Manager
Filed in Cf~~rFo'~ Of~i~e
~t1L ' ~ 2C~7
r
~] JONN VSO BeND, IN. .
(Rev 12/29/06) CI'r`f CLERK,
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. Local companies
include those located in St. Joseph County. Additional information may be requested for verification of this information. (If more space
is needed, please photocopy this page)
Of
Name and Address of Company Description of Materials Cost of Materials Grand Total
Local Companies (see above):
1. Herrman & Goetr, Inc, 225 Lafayette Blvd, SB, IN 46601 Mechanical Equip. $185,000 100%
2. for Temp. Sz Humidity
3. Control
4.
5.
6.
7.
8.
9.
10.
Total Local
Non-Local Companies:
1.
2.
3.
4.
5.
Total Non-Local
GRAND TOTAL
~~d~0
~~~
'v2001
„
~~~
Jd'~N V~`~~~ `~~,13~.
8
(Rev 12/29/06)
$185,000
0
$185.000
100
0
100
23. In the following chart please list the companies that will be used for the construction 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 and not 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.
Local companies include those located in St. Joseph County. Additional information may be requested for verification of this
information. (If additional space is needed, please photocopy this page).
100% Workers Pay Mairrtain
are Employees U.S. Dept. Contribute Contribute ~rirrdMe
Name and Address of Contract (Not Independent Labor Wage to a Health to a Pension Action
Construction Comgany Amount Contractors) Rate (Y/N) Plan IY/N) Plan (YIN) Pian(YlN)
Local Companies (see above):
1. Herrman & Goetz, Inc., $280,000 100% Y Y Y Y
225 LaFayatte Blvd
South Bend, IN 46601
2.
3.
4.
5.
6.
Total Local $280,000
Non-Local Companies:
1. N/A
2.
3.
4.
5.
Total Non-Local
Non-Local Companies:
GRAND TOTAL
Non-Local Companies:
Total Project Cost from Petition
Difference (Please explain):
(Rev 12/29/06)
0
9
Exhibit A
LEGAL DESCRIl'TION
Lot Numbered One (1) as shown on the recorded Plat of U.S. 31 Industrial Park,
Phase II, recorded October 9, 2001 as Document Number 0150153 in the Office
of the Recorder of St. Joseph County, Indiana.
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