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HomeMy WebLinkAboutConfirming Tax Abatement - 2722 Tucker Drive - Steel Warehouse Company LLCRESOLUTION 3791-07 Passed by the Common Council of the City of South Bend, Indiana September 24, 07 zo Attes City Clerk .e dent of Common Council Presented by me to the Mayor of the City of South Bend, Indiana September 25, 20 07 Approved and signed by me September 25, 200.x_. ~~~ ~/~ ~ City Clerk RESOLUTION NO. 3 ~ ~ ~~ "~~ A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 2722 TUCKER DRIVE TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR STEEL WAREHOUSE COMPANY 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 2722 Tucker Drive, South Bend, Indiana, and which is more particularly described as follows: The following parcels of Real Estate all located in St. Joseph County, Indiana: A part of the South '/ of the Northwest'/ of Section 15, Township 37 North, Range 2 East in the City of South Bend, St. Joseph County, Indiana, described as follows: Beginning at a point on the East line of the Southwest'/ of the Northwest '/ of said Section 15, 580.64 feet South of the Northeast corner of said Southwest'/4 of the Northwest'/, said point being 172.0 feet North of the North right of way line of the Indiana Northern Railway Company; thence Westerly parallel with said North right-of-way line 565 feet to the Southwest corner of a tract of land conveyed to Stanley Enterprise, Inc. By a deed recorded October 16, 1993 in Deed Record 777, page 226; thence North along the West line of said Stanley Enterprises, inc. tract, said line being parallel with the East line of said Southwest'/4 of the Northwest'/, 323.0 feet to the South line of Tucker Drive; thence West along the South line of Tucker Drive 215.93 feet; thence South parallel with said East line of the Southwest'/ of the Northwest'/, 495.90 feet to the North right-of-way line of the Indiana Northern Railway Company; thence Easterly along said North right=of-way line, 860.23 feet to the West edge of Steel Warehouse Co. Ines building; thence North along said West edge of building, 172.0 feet; thence Westerly parallel with the North right-of-way line of the Indiana Northern Railway Company, 79.3 feet to the point of beginning, containing 5.0 acres, more or less. A part of the Southwest Quarter of the Northwest Quarter of Section 15, Township 37 North, Range 2 East in the City of South Bend, Indiana, more particularly described as follows: Beginning at a point 260 feet South and 25 feet West of the Northeast corner of said Southwest Quarter of the Northwest Quarter; thence West 540 feet; thence South parallel with the East line of said Southwest Quarter of the Northwest Quarter, 324.25 feet to a point 172 feet North of the North line of the right-of-way of the Indiana Northern Railway Company; thence East parallel with said North line of said right-of-way, 540 feet; thence North parallel with the East line of said Southwest Quarter of the Northwest Quarter, 320.75 feet to the place of beginning. A tract of land in the West Half (1/2) of the Northwest Quarter (1/4) of Section Fifteen (15), Township Thirty-seven (37) North, Range Two (2) East, now within and a part of the City of South Bend, St. Joseph County, Indiana, more particularly described as follows: Beginning at the center of the Northwest Quarter (1/4) of said Section Fifteen(15); thence South along the North and South center line of said Quarter Section Two Hundred Twenty (220) feet to the North line of Tucker Drive; thence West along said North line to the West line of said Section Fifteen (15); thence North along said West line One Hundred Twenty-eight and One Tenth (128.1) feet, more or less, to a line Two Hundred Fifty (250) feet by rectangular measurement Southeasterly from said original centerline of the New York Central Railroad right-of-way; thence Northeasterly parallel to the Two Hundred Fifty (250) feet by rectangular measurement Southeasterly from said original centerline of the New York Central Railroad right-of-way, Seven Hundred Twenty-seven and One One-Hundredth (727.01) feet, more or less, to a point on the East line of the Southwest Quarter (1/4) of the Northwest quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15); thence Southerly along said East line One Hundred Ninety-nine and Eighty-six Hundredths (199.86) feet, more or less, to the South line of the Northwest Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15); thence East along said South line Six Hundred Sixty-three and fifty-two hundredths (663.52) feet, more or less, to the place of beginning, excepting Thirty (30) feet off the East side thereof for purposes of a public highway. A lot or parcel of land situated in the Northwest quarter of Section 15, Township 37 North, Range 2 East, now within and a part of the City of south Bend, bounded by a line running as follows, to -wit: Beginning at a point on the North line of the Southeast Quarter of the Northwest Quarter of said Section 15,600 feet West of the Northeast corner of the Southeast Quarter of the Northwest Quarter of said Section 15; thence running West along said North line a distance 725.8 feet to the Northwest corner of said Southeast Quarter of said Northwest Quarter; thence South a distance 220 feet, more or less, to the North line of a 40 foot road known as Tucker Drive; thence East along the North line of said roadway to a point due South of the place of beginning; thence North to the place of beginning. Together with and subject to an easement over the 40 foot roadway lying immediately South of the above described real estate known as Tucker Drive, and extending Eastward to Olive Street. Part of the Southeast Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15), Township Thirty-seven (37) North, Range Two (2) East, now within and a part of the City of South Bend, described as beginning at a point 260 feet South of the Northwest corner of the Southeast Quarter (114) of the Northwest Quarter (1/4) of said Section fifteen (15); thence South 492.9 feet to the North line of the right-of-way of the Indiana Northern Railroad; thence East along the said North line of the right-of-way of the Indiana Northern Railroad 305 feet; thence North 492.9 feet; thence West 305 feet to the place of beginning. Together with aright-of-way over a 40 foot roadway North of and adjoining the aforedescribed tract, and continuing Easterly to Olive Street, which said 40 foot roadway is now commonly known as Tucker Drive in said City of South Bend. The East Half of the South East Quarter of the North East Quarter of Section No. 16, Township No. 37 North, Range No. 2 East, containing 20 acres, more or less, and being Lot No. 16 in the Sub-division of said Section No. 16, and now within a part of the City of South Bend, excepting there from the following: The original right-of-way across, the North West corner heretofore conveyed by.Joseph B. Arnold, to the Indiana Illinois, and Iowa Railway Company.by Warranty Deed dated August 21, 1894 and recorded in Deed Record 95, page 553, of the records of St. Joseph County, Indiana; and excepting second the following: Beginning at a point on the West line of said Lot Numbered 16, where the same is intersected by the South Easterly line of said original right-of-way, thence running South on the west line of Lot Numbered 16, 219 feet, more or less, to a point distance 250 feet by rectangular measurement from the original center line of said right-of-way; thence North Easterly parallel with and 205 feet distant by rectangular measurement from the original center line of said right-of-way a distance of 733.3 feet, more or less, to a point on the East line of said Section No. 16, thence North on said East line, a distance of 105.5 feet, more or less, to the North East corner of said Lot No. 16; thence West along the North line of said Lot No. 16, thence North on said East line, a distance of 105.5 feet, more or less, to the North East corner of said Lot No 16; thence West along the North line of said Lot No. 16, a distance 254.5 feet, more or less, to the intersection with the said Easterly line of said original right-of-way; thence South Westerly with said Easterly line a distance 454.5 feet, more or less, to the place of beginning, containing 3.04 acres, more or less; excepting third, all that part of said lot no. 16 which lies South of the North line of the right-of-way of the St. Joseph, South Bend and Southern Railroad Company, excepting fourth, a strip of land 70 feet wide North and South lying next north of and adjoining the right-of-way of the St. Joseph, South Bend and Southern Railroad Company; excepting further that a strip of 40 feet in width, North and South, and being a extension of Tucker Drive, shall be established through the Northerly part of said tract and dedicated to the public as a highway, which said extension shall extend to the right-of-way of the New York Central Railroad Company. All that part of the Southwest Quarter of the Northwest Quarter of Section 15, Township 37 North, Range 2 East, described as follows: Beginning at a point 260 feet South and 330 feet West of the Northeast corner of the said Southwest Quarter of the Northwest Quarter; thence West 996.08 feet to the West line of said section; thence South 498.35 feet to the North line of the right-of-way of the Indiana Northern Railway Company; thence Easterly along the said Northerly line of said Indiana Northern Railway Company a distance of 996.08 feet, more or less, to a point on the Northerly line of the said Indiana Northern Railway Company South of the place of beginning; thence North to the place of beginning. Beginning in the center line of Olive Street in said City at a point Seven Hundred Eighteen and twenty-five hundredths (718.25) feet South of the North line of said Section No. 15, said point of beginning being on the Southerly line of a strip of land fifty(50) feet wide reserved for the right of way of the Indiana Northern Railroad Company thence running South on the center line of Olive Street, a distance of Six Hundred Eight and fifteen-hundredths (608.15) feet to the South east corner of said North East quarter of the North West quarter of Section No. 15; thence running West on said South line, a distance of Thirteen Hundred twenty-seven (1327) feet to the West line of said quarter Section, thence North on said West line, a distance of Four Hundred Ninety-three and four hundredths (493.04) feet to the Southerly line of said parcel deeded by said Grantors to the New York Central Railway Company; thence North Easterly along the Southerly line of said last named parcel to a point on the South line or the right of way of the Indiana Northern Railroad Company due West of the place of beginning: thence East ten hundred Fifty-seven and Thirteen-hundredths (1057.13) feet, more or less, to the place of beginning and containing Seventeen and seven hundred Sixty-one thousandths (17.761) acres, exclusive of Olive Street. All that part of the East Half of the North West Quarter of the North West Quarter of Section No. 15, Township No. 37 North, Range No. 2 East, that lies South of the right-of-way of the Indiana, Illinois, and Iowa Railroad Company (now New York Central Railroad), now within and a part of the City of South Bend; excepting therefrom a lot or parcel of land bounded as follows: Beginning at the intersection of the South Easterly line of said right-of-way and the East line of the East Half of the Northwest Quarter of the North West Quarter of said Section No. 15, thence running South Westerly along the South Easterly line of said right-of-way to the West line of the East Half of the North West Quarter of the North West Quarter of said Section; thence running South 219 feet, more or less, to a point; thence North Easterly parallel with and 219 feet South of the Southerly line of said right-of-way to the East line of the East Half of the North West Quarter of the North West Quarter of said Section No. 15; thence North 219 feet, more or less, to the place of beginning. and which have Key Numbers 18-8075-2838, 18-8075-2839, 18-8075-2843, 18- 8075-2844.03, 18-8075-2844.04, 18-8075-2844.06, 18-8075-2845.01, 18-8075- 2845.02, 18-8075-2845.03, be designated as an Economic Revitalization Area under the provisions of Indiana Code 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., 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 five (5) 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 ses. 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. KESENTED ~~Z`~-off NOT APPROVfEl ADOPTED ~ ' 2~_ ~ 7 Filed nl Cierk'~ Office JUL i 6 2007 JOHNlV07~DE of the ComrT;~n/~ouncil 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD $OUI1-I BEND, INDInNA 46601-1830 PHONE 574/235-9371 FAX 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTI-I BEND STEPHEN J. LUECKE, MA1tOR COMMUNITY HL ECONOMIC DEVELOPMENT July 16, 2007 ,JEFFREY V. GISNEY EXECUTIVE DIRECTOR Council Member Derek D. Dieter, 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: STEEL WAREHOUSE COMPANY, LLG and AFFILIATES and EQUIPMENT LESSORS 2722 W. TUCKER DRIVE, 1400 W. RIVERSIDE DRIVE and 1217 and 1215 S. WALNUT STREET Dear Council Member Dieter: Please find attached the Department of Community & Economic Development's report on three (3) personal property tax abatement petitions for the above-referenced petitioner. Also attached are copies of the three petitions, Statement of Benefits forms, and supporting information. The projects call for the acquisition and installation of new equipment as part of the company's planned increase in productive capacity in its facilities located at the above listed addresses. The report contains the Department's findings relative to the above petitions. Steel Warehouse, LLC will be purchasing and installing new equipment at the three above locations. The total cost of the three projects for the equipment is estimated at $4,400,000 to $11,000,000. Each of the three projects meets the qualifications for five-year (5) personal property tax abatements. A representative from Steel Warehouse will be available to meet with the Committee on Monday, August 13, 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 235-5835. Sincerely, Bob Mathia Assistant Director, Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL H~ PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD Fax: 574!235-9697 574/235-9371 1200 COLIN'CY-CITY BUILDING 227 ~/ 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 SL ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITIONS FOR: STEEL WAREHOUSE COMPANY, LLC and AFFILIATES and EQUIPMENT LESSORS 2722 W. TUCKER DRIVE 1400 W. RIVERSIDE DRIVE 1217 and 1215 S. WALNUT STREET DATE: July 16, 2007 On July 5,2005, three (3) petitions for personal property tax abatement consideration for property located at 2722 West Tucker Drive, 1400 West Riverside Drive and 1217/1215 South Walnut Street were filed with the City Clerk by Steel Warehouse Company, LLC, et al. Pursuant to Chapter 2, Article 6, Section 2-77 of the Municipal Code of the City of South Bend, the petitions were referred to the Department of Community and Economic Development for purposes of investigation and preparation of a report determining whether the areas qualify as Economic Revitalization Areas 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 petitions, investigated the areas and makes the following report. The report reviews and summarizes the requests from Steel Warehouse Company LLC for all three of the personal property abatements. PROJECT SUMMARY Steel Warehouse Company LLC is a steel service center with a primary focus on flat rolled, low carbon steel with operations involving slitting, leveling, pickling, shearing, temper rolling, and cold reducing. The petitioner also supplies profiling parts through its plasma and laser cutting operations. In connection with its operations, the company takes substantial positions in steel and steel products for the future sale and marketing of the same to its customers. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL. & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELrznaerH LEONARD Fax: 574/235-9697 574/235-9371 South Bend Redevelopment Commission RE: Steel Warehouse (Personal Property Abatement) July 16, 2007 . Page 2 The first abatement request for personal property at 2722 W. Tucker involves the acquisition of equipment for manufacturing, servicing, processing and material handling of steel and steel products, having a total cost expected to be from $2,500,000 to $5,000,000. The acquisition will enable the company to add capacity to and to modernize its existing manufacturing equipment and facilities at this location. The second abatement request for personal property at 1400 W. Riverside is for the acquisition of equipment for manufacturing, servicing and processing equipment having a total cost between $1,500,000 and $3,500,000. The acquisition will enable the company to add capacity to plasma and laser cutting manufacturing equipment at the Riverside location. The third abatement request for personal property at 1217 and 1215 S. Walnut involves the acquisition of manufacturing equipment having a total cost expected to be from $400,000 to $2,500,000. The acquisition will permit the company to add capacity to its tool steel operations. 'The total investment for the three projects is estimated to be between $4,400,000 and $11,000,000. The amount of the final investment will depend on a number of factors including trends in the demand for Steel Warehouse's products and the cost and availability of needed equipment to be acquired between approval of the abatement requests and the expiration of their approved Economic Revitalization Area (ERA) designations inJuly/August 2009. Depending on the exact amount of investment, total taxes to be abated during the five-year (5) abatement period are estimated to be between $268,901 and $672,254. Again, depending on the exact amount of investment, total taxes to be paid during the five-year (5) abatement period are estimated to be between $139,930 and $349,824. Taxes to be abated for each of the prof ects are estimated to be as' follows: (a) Tucker Drive - $152,785 to $305;570; (b) Riverside Drive - $91,671 to $213,899; and (c) Walnut Street - $24,445 to $152,785. Taxes to be paid for each of the projects are estimated to be as follows: (a) Tucker Drive - $79,505 to $159,011; (b) Riverside Drive - $47,704 to $111,308; and (c) Walnut Street - $12,721 to $79,505. EMPLOYMENT IMPACT Per the petition, it is estimated that the projects will create up to five (5) new permanent full time jobs at the Tucker location, four (4) to twelve (12) at the Riverside location and from five (5) to twenty-five (25) jobs at the Walnut location representing new annual payrolls of $156,000, $130,400 to $391,200 and $156,000 to $780,000 respectively at the three facilities. The project is also expected to retain a total of four hundred and eighty-one (481)full-time j obs, representing an annual payroll of $22,707,500 at the facilities. South Bend Redevelopment Commission RE: Steel Warehouse (Personal Property Abatement) July 16, 2007 Page 3 ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has been granted the following previous tax abatements: Term/Type Resolution No. Date 5 year personal property 1169-84 June 25, 1984 5 year personal property 1432-86 Sept. 8, 1986 5 year personal property 1674-88 Nov. 28, 1988 10 year real property 1964-92 July 27, 1992 5 year personal property 1965-92 July 27, 1992 10 year real property 2157-94 July 11, 1994 5 year personal property 2158-94 July 11, 1994 10 year real property 237.1-96 June 24, 1996 5 year personal property 2372-96 June 24, 1996 10 year real property 2496-97 August 25, 1997 5 year personal property 2495-97 August 25, 1997 5 year personal property 2714-99 March 22, 1999 10 year real property 2798-99 Oct.l 1, 1999 5 year personal property 2896-00 June 26, 2000 10 year real property 2895-00 June 26, 2000 5 year personal property 3035-O1 Sept. 24, 2001 10 year real property 3036-01 Sept. 24, 2001 5 year personal property 3380-04 Sept. 27, 2004 5 year real property 3381-04 Sept. 27, 2004 5 year personal property .3382-04 Sept. 27, 2004 The petitioner is in compliance with the reporting requirements for the previous abatements. 2. The Building Commissioner has reviewed the petitions and finds the properties to be properly zoned for the proposed projects. The Commissioner noted that two of the facilities (Tucker Drive and Walnut Street) recently have been issued building permits for construction. However, those permits are not related to the personal property abatements requested above. 3. A review of the South Bend Redevelopment designation areas finds that the properties located at 2722 W. Tucker Drive and 1217/1215 Walnut Street are located in the Sample Ewing Development Area, which is a Tax Increment Allocation Area; therefore, the petitions for personal property tax abatement for those two locations must first be approved by the South Bend Redevelopment Commission. The 1400 Riverside Drive location is not in a South Bend Redevelopment Commission RE: Steel Warehouse (Personal Property Abatement) July 16, 2007 Page 4 Redevelopment designated area and, therefore, no action by the Commission is required for that location. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for a five (5) year personal property tax abatement under Section 2-84.2 (Tangible Personal Property Tax Abatement) for the 2722 W. Tucker Drive, 1400 W. Riverside Drive and 1217/1215 S. Walnut Street locations. Tax Abatement Schedule prepared for: STEEL WAREHOUSE (Tucker Drive) South Bend Portage 5 Year Personal Property Abatement Schedule' Total estimated Equipment Cost: $2,500,000 Assume constant tax rate of: 5.1524 Assume constant SRTC rate of: 7.0433 TTV Assessed Gross Less Net Percent Tax Year TN% (Year 1-5) Value Tax SRTC Tax Abated Abated 1 0.40 $1,000,000 $1,000,000 $51,524 $3,629 47,895 100% $47,895 2 0.56 $1,400,000 $1,400,000 $72,134 $5,081 67,053 80% $53,643 3 0.42 $1,050,000 $1,050,000 $54,100 $3,810 50,290 60% $30,174 4 0.32 $800,000 $800,000 $41,219 $2,903 38,316 40% $15,326 5 0.24 $600,000 $600,000 $30,914 $2,177 28,737 20% $5,747 $249,891 $17,601 232,290 $152,785 Total Taxes Due During Abatement: Total Taxes Abated During Abatement: Total Taxes Paid During Abatement: $232,290 $152,785 $79,505 16-Jul-07 Tax Paid $0 $13,411 $20,116 $22,989 $22,989 $79,505 -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. Tax Abatement Schedule prepared for: STEEL WAREHOUSE (Tucker Drive) South Bend Portage 5 Year Personal Property Abatement Schedule* Total estimated Equipment Cost: $5,000,000 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 $2,000,000 $2,000,000 $103,048 $7,258 95,790 100% $95,790 2 0.56 $2,800,000 $2,800,000 $144,267 $10,161 134,106 80% $107,285 3 0.42 $2,100,000 $2,100,000 $108,200 $7,621 100,579 60% $60,347 4 0.32 $1,600,000 $1,600,000 $82,438 $5,806 76,632 40% $30,653 5 0.24 $1,200,000 $1,200,000 $61,829 $4,355 57,474 20% $11,495 $499,782 $35,201 464,581 $305,570 Total Taxes Due During Abatement: Total Taxes Abated During Abatement: Total Taxes Paid During Abatement: $464,581 $305,570 $159,011 16-Jul-07 Tax Paid $0 $26,821 $40,232 $45,979 $45,979 $159,011 -This schedule is for estimation purposes only and assumes constant tax rates. 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Iq; 'G P ? - - - - - - - = i ~'E I L I N I N " ~ N'~ > B - A II 0= . is ~ _ - - rM F ~ • laves ~ ~ ~ ,~, rrL <'l:',' ~ o- : .. 't; ;Hum •};, ~. f~ '1~~: Yuispa • - ~ ¢ 63:::31::-.:.~~ ..~ •,, ,;. lr i~ L w.r d 2C - Tn• Aura Alba j su ~JuAI K)N ql. SWh~ Oar `\ ~ ~ ~ - - ~ ~ ~ / - -_. ~ l1 IPVFWA. /_~ Q - rrw'D00 ~ r yC ~ ! C,~ --_ 77=~IIIJI 1 ~~e A r 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, etet seg•, and South Bend Municipal Code Section 2-84.2, et sea., for this petition states the following: 1. Describetheproposedproject,includinginformationaboutthenewmanufacturingequipment personal property ("equipment") to be installed, the amount of land to be used, if any, an estimate of the cost of the project, the proposed use of the equipment, and a general statement as to the value of the project to your business. The project involves acquisition of equipmentformanufacturing,servicing, processingandmaterialhandlingofsteelandsteel products, having a total cost expected to be from $2.5 million to $S. 0 million. The project wild enable Petitioner to add capacity to and to modernize its existing manufacturing equipment and facilities 2. It is anticipated that the project will create up to five (5) new permanent full time j obs, which would represent a new annual payroll of$156, 000 and will help Petitionerto maintain its 446 existing permanent full time representing an annual payroll of $20, 605, 400. The projected annual salaries for each position are as follows: An average of $15.00 per hour 3. Estimate the total cost of the Equipment: A minimum of $2.5 million and a maximum of $S.0 million. 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): Inapplicable NAME ADDRESS INTEREST Steel Warehouse Company LLC 2722 W. Tucker Drive Owner and Aff liates South Bend, IN 46619 and Equipment Lessors (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): Inapplicable NAME ADDRESS INTEREST 5. Give a brief description ofthe overall nature of the business and of the operations occurring at the location for which tax abatement is requested: Petitioner is a steel service center specializing in flat rolled, law carbon steel, with operations irrvolving slitting, leveling, pickling, temper rolling shearing and cold reducing. Petitioner also supplies profiling parts through its plasma and laser cutting operations. In connection with its operations, Petitioner takes substantial positions in steel and steel products for the future sale and marketing of the same to its customers. 6. The commonly known address of the Property where the Equipment will be located are: 2722 W. Tucker Drive, South Bend, Indiana 7. The Key Numbers of said property are: 18-8075 - 2838; 2839; 2843; 2844.03; 2844.04; 2844.06; 2845.01; 2845.02; 2845.03. 8. Attach the legal description of the Properties 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 is hereby incorporated herein. 11. The current assessed valuation of the tangible personal property to be replaced by new manufacturing equipment approximately $700,000. 12. The current use of the real property where the equipment will be installed is for manufacturing and the current zoning is E Heavy Industrial (use) and F (height and area). 13 . List the real and personal property taxes paid by the Petitioner during the previous five years, whether paid by the current owner or a previous owner. YEAR REAL PROPERTY TAXES PERSONAL PROPERTY TAXES 2002 $291, 362. $430, 358. 2003 $298,005 $308,124. 2004 $352, 540. $375, 245. ZOOS $300, 892. $341,165. 2006 $331, 045. $299, 235. 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). Petitioner naw and in the past has maintained a policy of hiring and promoting withoutdiscriminationwithrespecttorace, creed, colororgender. Therrumberofminority full time employees in the comparry totalled 119 in 2002, 130 in 2003, 132 in 2004, 129 in 2005 and 129 in 2006. Currently the comparry has a total of 446 full time employees and 129 minority full time employees. 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. None 16. What is your best estimate of the market value of the new equipment after installation? $2. S million to $S. 0 million. 17. What is your best estimate of the amount of taxes to be abated during each of the five years after installation? Assuming an investment of $2.5 million in equipment, the estimated amount of taxes to be abated are as follows: Year 1- $22, SOD; Year 2 - $18, 000; Year 3 - $13, 500; Year 4 - $9, 000; Year S - $4, 500. 18. What is the commitment your firm will make to minority employment during the five years of tax abatement? Petitioner will continue to hire qualified applicants without regard to race, creed, color or gender. 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. ThestandardIndustrialClassificationManualmajorgroupwithinwhichtheproposedproject would be classified, by number and description: 2 Major Group 33: Primary Metal Industries 21. The Internal Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description: SOSO 22. Therealpropei.tywheretheEquipmentwillbeinstalledislocatedinthefollowingAllocation Area, if any, declared and confirmed by the South Bend Redevelopment Commission: 23. Otheranticipatedpublicfinancingfortheprojectincluding, ifany, industrialrevenue-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. Petitioner may seek job training assistance for some of the additional personnel to be hired 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: Petitioner intends to add mamrfacturing equipment as well as replace certain equipment, which is under capacity for a significant portion of its production. 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 andthatthe equipmentwas neverbefore used by its owner for anypurpose 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: Gerald F. Lerman Address: Steel Warehouse Comparry LLC - P. O. Box 1377 City, State, Zip Code: South Bend, IN 46624 Telephone: (574) 236-5130 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 noticeandpublichearing, determinequalificationsforaneconomicrevitalizationareahavebeenmet, 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): Steel Warehouse Company LLC (Signed Name) (Typed or printed Warne and capacity of signor if signed by an agent or representative of the owner) (tan@ble personal prop aug 200'n .. . STATEMENT FOR THE 2007 PROJECT FOR TAX ABATEMENT The project involves an investment in new manufacturing, servicing, processing and material handling equipment, thatwillincreasePetitioner'sproductioncapacityin several ofPetitioner's areas of focus. It will also improve Petitioner's ability to meet customer demand for products currently beyond Petitioner's production capacity. The project is expected to create up to five new full time jobs with an annual payroll increase of approximately $156,000; and to help the Petitioner retain 446 existing full time jobs, with salaries in the range of $31,200 per year. Petitioner is a steel service center with a primary focus on flat rolled, low carbon steel. Its operations involve slitting, leveling, pickling, shearing, temper rolling, cold reducing and production of profiling parts through plasma and laser cutting. The proposed project will allow Petitioner to expand its production capacity of flat rolled steel in both leveling of steel coils with narrow widths, and pickling of steel coils with heavier gauges. &xpC`FS ~UL _ 5 2001 A ~~' L 4 Jnr;r; v.~~...~ r ~D. E:~TD, IK . 4 -` EXHIBIT A A part of the South '/z of the Northwest 1/4 of Section 15, Township 37 North, Range 2 East in the City of South Bend, St. Joseph County, Indiana, described as follows: Beginning at a point on the East line of the Southwest 1/4 of the Northwest 1/4 of said Section 15, 580.64 feet South of the Northeast corner of said Southwest 1/4 of the Northwest 1/4, said point being 172.0 feet North of the North right of way line of the Indiana Northern Railway Company; thence Westerly parallel with said North right-of--way line 565 feet to the Southwest corner of a tract of land conveyed to Stanley Enterprises, Inc. By a deed recorded October 16 , 1993 in Deed Record 777, page 226; thence North along the West line of said Stanley Enterprises, Inc. tract, said line being parallel with the East line of said Southwest 1/4 of the Northwest 1/4, 323.0 feet to the South line of Tucker Drive; thence West along the South line of Tucker Drive 215.93 feet; thence South parallel with said East line of the Southwest 1/4 of the Northwest 1/4, 495.90 feet to the North right-of--way line of the Indiana Northern Railway Company; thence Easterly along said North right-of--way line, 860.23 feet to the West edge of Steel Warehouse Co. Inc.'s building; thence North along said West edge of building, 172.0 feet; thence Westerly parallel with the North right-of--way line of the Indiana Northern Railway Company, 79.3 feet to the point of beginning, containing 5.0 acres, more or less. A part of the Southwest Quarter of the Northwest Quarter of Section 15, Township 37 North, Range 2 East in the City of South Bend, Indiana, more particularly described as follows: Beginning at a point 260 feet South and 25 feet West of the Northeast corner of said Southwest Quarter of the Northwest Quarter, thence West 540 feet; thence South parallel with the East line of said Southwest Quarter of the Northwest Quarter, 324.25 feet to a point 172 feet North of the North line of the right-of--way of the Indiana Northern Railway Company; thence East parallel with said North line of said right-of--way, 540 feet; thence North parallel with the East line of said Southwest Quarter of the Northwest Quarter, 320.75 feet to the place of beginning. A tract of land in the West Half ('/z) of the Northwest Quarter (1/4) of Section Fifteen (15), Township Thirty-seven (37) North, Range Two (2) East, now within and a part of the City of South Bend, St. Joseph County, Indiana, more particularly described as follows: Beginning at the center of the Northwest Quarter (1/4) of said Section Fifteen (15); thence South along the Norther and South center line of said Quarter Section Two Hundred Twenty (220) feet to the North line of Tucker Drive; thence West along said North line to the West line of said Section Fifteen (15); thence North along said West line One Hundred Twenty-eight and One Tenth (128.1) feet, more or less, to a line Two Hundred Fifty (250) feet by rectangular measurement Southeasterly from said original centerline of the New York Central Railroad right-of--way; thence Northeasterly parallel to the Two Hundred Fifty (250) feet by rectangular measurement Southeasterly from said original centerline of the New York Central Railroad right-of--way, Seven Hundred Twenty-seven and One One-Hundredth (727.01) feet, more or less, to a point on the East line of the Southwest Quarter (1/4) of the Northwest Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15); thence Southerly along said East line One Hundred Ninety-nine and Eighty-six Hundredths (199.86) feet, more or less, to the South line of the Northwest Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15); thence East along said South line Six Hundred Sixty-three and Fifty- two hundredths (663.52) feet, more or less, to the place of beginning, excepting Thirty (30) feet offthe East side thereof for purposes of a public highway. A lot or parcel of land situated in the Northwest Quarter of Section 15, Township 37 North, Range 2 East, now within and a part of the City of South Bend, bounded by a line running as follows, to-wit: Beginning at a point on the North line of the Southeast Quarter of the Northwest Quarter of said Section 15, 600 feet West of the Northeast corner of the Southeast Quarter of the Northwest Quarter of said Section 15; thence running West along said North line a distance of 725.8 feet to the Northwest corner of said Southeast Quarter of said Northwest Quarter; thence South a distance of 220 feet, more or less, to the North line of a 40 foot road known as Tucker Drive; thence East along the North line of said roadway to a point due South of the place of beginning; thence North to the place of beginning. Together with and subject to an easement over the 40 foot roadway lying immediately South of the above described real estate known as Tucker Drive, and extending Eastward to Olive Street. Part of the Southeast Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15), Township Thirty-seven (37) North, Range Two (2) East, now within and a part of the City of South Bend, described as beginning at a point 260 feet South of the Northwest corner of the Southeast Quarter (1/4) of the Northwest Quarter (1/4) of said Section Fifteen (15); thence South 492.9 feet to the North line of the right-of--way of the Indiana Northern Railroad; thence East along the said North line of the right-of--way of the Indiana Northern Railroad 305 feet; thence North 492.9 feet; thence West 305 feet to the place of beginning. Together with aright-of--way over a 40 foot roadway North of and adjoining the aforedescribed tract, and continuing Easterly to Olive Street, which said 40 foot roadway is now commonly known as Tucker Drive in said City of South Bend. The East Half of the South East Quarter of the North East Quarter of Section No. 16, Township No. 37 North, Range No.2 East, containing 20 acres, more or less, and being Lot No. 16 in the Sub-division of said Section No. 16, and now within a part of the City of South Bend, excepting there from the following: 2 The original right-of--way across, the North West corner heretofore conveyed by Joseph B. Arnold, to the Indiana Illinois, and Iowa Railway Company by Warranty Deed dated August 21, 1894, and recorded in Deed Record 95, page 553, of the records of St. Joseph County, Indiana; and excepting second the following: Beginning at a point on the West line of said Lot Numbered 16, where the same is intersected by the South Easterly line of said original right-of--way, thence running South on the west line of Lot Numbered 16, 219 feet, more or less, to a point distant 250 feet by rectangular measurement from the original center line of said right-of--way; thence North Easterly parallel with and 250 feet distant by rectangular measurement from the original center line of said right-of--way a distance of 733..3 feet, more or less, to a point on the East line of said Section No. 16, thence North on said East line, a distance of 105.5 feet, more or less, to the North East corner of said Lot No. 16; thence West along the North line of said Lot No. 16, thence North on said East line, a distance of 105.5 feet, more or less, to the North East corner of said Lot No. 16; thence West along the North line of said Lot No. 16, a distance of 254.5 feet, more or less, to the intersection with the said Easterly line of said original right-of--way; thence South Westerly with said Easterly line a distance of 454.5 feet, more or less, to the place of beginning, containing 3.04 acres, more or less; excepting third, all that part of said Lot No. 16 which lies South of the North line of the right-of--way of the St. Joseph, South Bend and Southern Railroad Company, excepting fourth, a strip of land 70 feet wide North and South lying next north of and adjoining the right-of--way of the St. Joseph, South Bend and Southern Railroad Company; excepting further that a strip of 40 feet in width, North and South, and being a extension of Tucker Drive, shall be established through the Northerly part of said tract and dedicated to the public as a highway, which said extension shall extend to the right-of--way of the New York Central Railroad Company. All that part of the Southwest.Quarter of the Northwest Quarter of Section 15, Township 37 North, Range 2 East, described as follows: Beginning at a point 260 feet South and 330 feet West of the Northeast corner of the said Southwest Quarter of the Northwest Quarter; thence West 996.08 feet to the West line of said section; thence South 498.35 feet to the North line of the right-of--way of the Indiana Northern Railway Company; thence Easterly along the said Northerly line of said Indiana Northern Railway Company a distance of 996.08 feet, more or less, to a point on the Northerly line of the said Indiana Northern Railway Company South of the place of beginning; thence North to the place of beginning. Beginning in the center line of Olive Street in said City at a point Seven Hundred Eighteen and twenty-five hundredths (718.25) feet South of the North line of said Section No. 15, said point of beginning being on the Southerly line of a strip of land Fifty (50) feet wide reserved for the right 3 ~r~r3~ ~~ ~`,~c~A ~J ji c ~~~ r. ~i: \~ 1`.rf jd'GG:1`~i of way of the Indiana Northern Railroad Company thence running South on the center line of Olive Street, a distance of Six Hundred Eight and fifteen-hundredths (608.15) feet to the South east corner of said North East quarter of the North West quarter of Section No. 15; thence running West on said South line, a distance of Thirteen Hundred twenty-seven (1327) feet to the West line of said quarter quarter Section, thence North on said West line, a distance of Four Hundred Ninety-three and four hundredths (493.04) feet to the Southerly line of said parcel deeded by said Grantors to the New York central Railway Company; thence North Easterly along the Southerly line of said last named parcel to a point on the South line or the right of way of the Indiana Northern Railroad Company due West of the place of beginning; thence East ten hundred Fifty-seven and Thirteen hundredths (1057.13) feet, more or less, to the place of beginning, and containing Seventeen and seven hundred Sixty-one thousandths (17.761) acres, exclusive of Olive Street. All that part of the East Half of the North West Quarter of the North West Quarter of Section No. 15, Township No. 37 North, Range No. 2 East, that lies South of the right-of--way of the Indiana, Illinois, and Iowa Railroad Company (now New York Central Railroad), now within and a part of the City of South Bend; excepting therefrom a lot or parcel of land bounded as follows: Beginning at the intersection of the South Easterly line of said right-of--way and the East line of the East Half of the Northwest Quarter of the North West Quarter of said Section No. 15, thence running South Westerly along the South Easterly line of said right-of--way to the West line of the East Half of the North West Quarter of the North West Quarter of said Section; thence running South 219 feet, more or less, to a point; thence North Easterly parallel with and 219 feet South of the Southerly line of said right-of--way to the East line of the East Half of the North West Quarter of the North West Quarter of said Section No. 15; thence North 219 feet, more or less, to the place of beginning. 4 ~~ ~~~ ~~ ~``f~ .` ' *' 9.` ~~-~ ~' ~ ~ w ,-; <~ ~ ,% i ~~ ,.~_ rv,.~ ~;~: ~. .~t~'%', G~~