HomeMy WebLinkAboutConfirming Tax Abatement - 1400 Riverside Drive - Steel Warehouse Company LLCRESOLUTION
3792-07
Passed by the Common Council of the City of South Bend, Indiana
September 24,
Attest:
City Clerk
Vice
President 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, 20~_
City Clerk
20 07
RESOLUTION NO. 3 7 ~ 2' ~ 7
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
1400 RIVERSIDE DRIVE,
SOUTH BEND, INDIANA 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
1400 Riverside Drive, South Bend, Indiana, and which is more particularly described as
follows:
Beginning at the Southeast corner of the Southwest'/4 of said, section 35; thence
South 89 49'52" West (bearing assumed) along the South line of said section, 308.97
feet; thence North 89 55'00" West, 116.24 feet; thence North 00 00'27" West, 12.00 feet
to the North line of a 12 foot alley; thence North 89 55'00" West along said North line of
alley, the East line of Kessler Boulevard, 128.00 feet South 89 55' 18" East of the
Northeast addition to the City of South Bend recorded Apri16, 1906 in Plat Book 0,
pages 30 and 31; thence South 89 55' 18" East along the South line of King Street, 352.84
feet; thence North 00 00'27" West, 194.85 feet to a point the centerline of the East and
West 14 foot alley between King Street and McCartney Street produced East; thence
North 00 06'09" East, 128.81 feet; thence North 89 46'49" East 287.05 feet to the
Westerly line of Riverside Drive; thence South 16 37' 15" West along a chord subtending
said Westerly line of Riverside Drive, 455.43 feet to the South line said section 35;
thence North 90 00'00" West along said South line, 156.71 feet to the point of the
beginning.
Commencing at the Southeast corner of the '/4 of said section 35; thence North 00
00'30" West (bearing assumed) along the East line of said Southwest 1/4 a distance of
463.14 feet to the Point of Beginning for the following described tract; thence continuing
North 00 00'30" West along said East line 336.00 feet to the South line of Queen Street;
thence south 89 56'09" West along said South line of Queen Street 176.60 feet, thence
North 00 02'36" Est 195.00 feet to the centerline of the East and West 14 foot alley
between Kinyon Street and Queen Street; thence South 89 56'09" West along said
centerline of alley, 131.27 feet; thence South 00 06'09" West along the East line of Lot
145 in the Third Plot of Northwest Addition recorded March 7, 1907 in Plat Book 9, page
60 in the Office of the St. Joseph County Recorder and its Northerly and Southerly
extensions, 195.00 feet to the South line of Queen Street; thence South 89 56'09" West
along Allen Street; thence South 00 05'51" West along said East line of Allen Street,
329.87 feet to the South line of McCartney Street; thence South 89 58'27" East along
said South line of McCartney Street, 12.91 feet; thence South 00 06'09" West 6.11 feet;
thence North 89 56'09" East 308.71 feet to the Point of beginning.
and which have Key Numbers 18-2110-4065 and 18-2110-4067, 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 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 sea.
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.
M er-e~f'fhe Co ouncil
PRESENTED ~ - Z~ ~~
NOT APPROVED
ADOPTED ~--Z`t'°~
Fii d Cierk's Office
dU~ 1 fi 2007
JDHT! VSO BEND, ~
CTiY CLERK,
I2OO C,OUN'TY-CITY BLRLDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY Sz ECONOMIC DEVELOPMENT
July 16, 2007 JEFFREY V. GIBNEY
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, LLC 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 ofthe 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,
;~ ~u-~~=
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 i3C PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZAOETH LEONARD
FAX: 574/235-9697 574/235-9371
1200 ~'.OUNTY-CITY BUILDING
2.27 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PxoNE574/235-9371
Fnx 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 ELIZABETH LEONARD
Fax: 574/235-9697 5741235-9371
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 far 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 amid 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 projects 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 $159,01 l; (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 jobs, 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
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 2371-96 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 3035-01 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 proj ects. 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 (Riverside Drive)
Soufh Bend Portage 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $1,500,000
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 $600,000 $600,000 $30,914 $2,177 28,737 100% $28,737
2 0.56 $840,000 $840,000 $43,280 $3,048 40,232 80% $32,185
3 0.42 $630,000 $630,000 $32,460 $2,286 30,174 60% $18,104
4 0.32 $480,000 $480,000 $24,732 $1,742 22,990 40% $9,196
5 0.24 $360,000 $360,000 $18,549 $1,306 17,243 20% $3,449
$149,935 $10,560 139,375 $91,671
Total Taxes Due During Abatement:
Total Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
$139,375
$91,671
$47,704
16-Jul-07
Tax
Paid
$0
$8,046
$12,069
$13,794
$13,794
$47,704
* -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 (Riverside Drive)
South Bend Portage 5 Year Personal Property Abatement Schedule*
Total estimated Equipment Cost: $3,500,000
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 $1,400,000 $1,400,000 $72,134 $5,081 67,053 100% $67,053
2 0.56 $1,960,000 $1,960,000 $100,987 $7,113 93,874 80% $75,099
3 0.42 $1,470,000 $1,470,000 $75,740 $5,335 70,405 60% $42,243
4 0.32 $1,120,000 $1,120,000 $57,707 $4,064 53,643 40% $21,457
5 0.24 $840,000 $840,000 $43,280 $3,048 40,232 20% $8,046
$349,848 $24,641 325,207 $213,899
Total Taxes Due During Abatement:
Total Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
$325,207
$213,899
$111,308
16-Jul-07
Tax
Paid
$0
$18,775
$28,162
$32,186
$32,185
$111,308
-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.
EE::~LiT A
Beginning at the Southeast corner of the Southwest 1I4
of said, section 35; thence South 89 49'52" West (bearing
assumed) along the South line of said section, 308.97 feet;
thence North 89 55'00" West 116.24 feet; thence North 00
00'27" West, 12.00 feet to the North line of a 12 foot alley;
thence North 89 55'00" West along said North line of alley,
236.61 feet to a point 120.00 feet South 89 55'00" East of
the East line of Kessler Boulevard, 128.00 feet to a point on
the South line of King Street, 180.00 feet South 89 55'18"
East of the Northeast corner .of Lot 10 as shown on the second
plat of Northwest addition to the city of South Bend recorded
April 6, 1906 in Plat Book 0, pages 30 and 31; thence South
89 55'18" East along the South line of King Street, 352.84
feet; thence North 00 00'27" West, 194.85 feet to a point on
the centerline of the East and West 14 foot alley between
King Street and McCartney street produced East;. thence North
00 06'09" East, 128.81 feet; thence North 89 46'49" East
287.05 feet to the Westerly line of Riverside Drive; thence
South 16 37'15" West along a chord subtending said Westerly
line of Riverside Drive, 455.43 feet to the South line of
said section 35; thence North 90 00' 00" West along said
South line, 156.71 feet to the point of the beginning.
Commencing at the Southeast corner of the 1/4 of said
section 35; thence North 00 00'30" West (bearing assumed)
along the East line of said Southwest 1/4 a distance of
463.14 feet to the Point of Beginning for the foollowing
described tract; thence continuing North 00 00'30" West along
said East line 336.00 feet to the South line cf Queen Street;
thence south 89 56'09" West along said South line of Queen
Street 176.60 feet; thence North 00 02'36" East 195.00 feet
to the centerline of the East and West 14 foot alley between
Kinyon Street and Queen Street; thence South 89 56'09"'West
along said centerline of alley, 131.27 feet; thence South 00
06'09" West along the East line of Lot 145 in the Third Plot
of Northwest Addition recorded March 7,_1907 in Plat Book 9,
page 60 in the Office of the St. .Joseph County Recorder and
its Northerly and Southerly extensions, 195.00 feet to r__hP
.i aac vl
S^'~th 1'^" uueen Street; thence South 89 56'09" West along
said South line of Queen Street, 12.93 feet to the East lin
Of Al 1 an G~~
line of Allen Street, 329.87 feet to the WSoputholineaof East
McCartney Street; thence South 89 58 27
South line of McCartney Street, 12.91 feetasthencegSouth 00
06'09" West 6.11 feet; thence North 89 56'09" East 308.71
feet to th.e Point of beginning.
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CITY OF SOUTH BEND PETITION FOR
TANGIBLE PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of new manufacturing equipment, personal property, located within the
City of South Bend, hereby petitions the Common Council of the City of South Bend for personal
property (new manufacturing equipment) tax abatement consideration and pursuant to I.C.. 6-1.1-
12.1, et sea•, and South Bend Municipal Code Section 2-84.2, et se ., for this petition states the
following:
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, 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 irrvolves acquisition of
manufacturing, servicing and processing equipment having a total cost expected to be from
$I.S million to $3.5 million. The project will enable Petitioner to add capacity to plasma
and laser cutting manufacturing equipment.
2. It is anticipated that the project will create from four (4) to twelve (12) new permanent full
time jobs, representing a new annual payroll of $130, 400 and will help Petitioner to maintain
its 446 existing permanent full time jobs representing an annual payroll of $20, 605, 400; and
will help Petitioner to maintain an additional35 existingfull time jobs at the 1400 Riverside
Drive location representing an annual payroll of $2,102,100. The projected annual salaries
for each position are as follows: An average of $15.67 per hour
3. Estimate the total cost of the Equipment: A minimum of $1.5 million and a maximum of
$3. S 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 Comparry LLC 2722 W. Tucker Drive Owner
and Affiliates 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 of the overall nature of the business and of the operations occurring
at the location for which tax abatement is requested:
Petitioner is a steel service censer specializing in jlat rolled, low carbon steel,
with operations involving 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:
1400 Riverside Drive, South Bend, Indiana
7. The Key Numbers of said property are: 18-2110-4065 and 18-2110-4067.
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 $. Inapplicable
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.
2005 $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 now and in the past has maintained a policy of hiring rnzd promoting
without discrimination with respect to race, creed, color or gender. The number of minority
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 Petitioner has a total of 446 full time employees and
129 minority full time employees For the 1400 Riverside location, the number of minority
full time employees totalled 0 in 2002, 4 in 2003, 4 in 2004, 10 in 2005 and 10 in 2006.
Currently at that location Petitioner has 35 full time employees and 12 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?
$1.5 million to $3.0 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, 500; 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 qual~ed 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.
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20. The standard Industrial Classification Manual major group within which the proposed project
would be classified, by number and description:
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:
SOSD
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:
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.
Fetitioner 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, not replace, manufacturing equipment.
25. The new manufacturing equipment will be used in the direct production, manufacture,
fabrication, assembly, extraction, mining, processing, refining, or finishing of other tangible
personal property and that the equipment was never before used by its owner for any purpose
in Indiana. The signature at the end of this Petition is verification of this statement.
26. The following person(s) should be contacted as Petitioner's agent regarding additional
information and public hearing notifications:
Name: 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
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):
Steel Warehouse Comparry LLC
By•
(Signed Name)
(Typed or printed name and capacity of signor if
signed by an agent or representative of the owner)
(tangible personal prop aug 200
STATEMENT FOR THE 2007 PROJECT
FOR TAX ABATEMENT
The project involves an investment in new manufacturing, servicing and processing
equipment, that will increase Petitioner's production capacity in the production of profiling parts.
The project is expected to create from four to twelve new full time jobs with an annual payroll
increase in the range of $130,400; and is expected to help Petitioner to retain its 446 existing full time
jobs, with salaries of approximately $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, and cold reducing and
production of profiling parts through plasma and laser cutting. The proposed project will allow
Petitioner to expand its plasma and laser cutting operations to meet the growing market for such
products.
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