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Home My WebLink AboutConfirming Tax Abatement - 1217 & 1215 South Walnut Street - Steel Warehouse Company LLCRESOLUTION 3793-07 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 SIZ_ . City Clerk 07 zo Maya' RESOLUTION NO. ~ ~ aj 3'O~ A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1217 AND 1215 SOUTH WALNUT STREET 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 1217 and 1215 South Walnut Street, South Bend, Indiana, and which is more particularly described as follows: A tract of land in the City of South Bend, County of St. Joseph, and State of Indiana, situated in the Northwest Quarter of Section 14, and the Northeast Quarter of Section 15, Township 37 North, Range 2 East, bounded by the following described line: Beginning at a point in the West line of Walnut Street, 1239.70 feet South of the South line of Sample Street, which point is 587.95 feet South of the South line of the Sanders and Egbert Tract, as conveyed by deeds recorded in Deed Record 118, page 428 and Deed Record 121, page 320; thence on an assumed bearing of South 0 00'49" East along said West line of Walnut Street, 479.91 feet; thence South 89 54' 12" West, 725.03 feet; thence South 61 54' 12" West, 42.91 feet; thence South 89 23'32" West 437.13 feet; thence North 0 00'49" West parallel with said West line of Walnut Street, 504.26 feet; thence North 89 55'05" East, 1200 feet to the place of beginning. A tract of land in the City of South Bend, County of St. Joseph, and State of Indiana, situated in the Northwest'/4 of Section 14, and the Northeast'/4 of Section 15, Township 37 North, Range 2 East, bounded by the following described line: Beginning at a point in the West line of Walnut Street, 682.75 feet south of the South line of Sample Street, which point is 31 feet South of the South line of the Sanders and Egbert Tract, as conveyed by deeds recorded in Deed Record 118, page 428 and Deed Record 121, page 320; thence on an assumed bearing of South 0 00'49" East along said West line of Walnut Street, 556.95 feet; thence South 89 55'05" West, 1200 feet; thence North 0 00'49" West parallel with said West line of Walnut Street, 589.19 feet to a point 651.75 feet South of the South line of Sample Street or the produced South line of the tract conveyed of F.C. Raff, recorded in Deed Record 172 page 641; thence South 89 57' 10" East along the South line above described tract produced East, 295 feet; thence South 0 00'49" East parallel with the West line of Walnut Street, 31 feet; thence North 89 57' 16" East, 905 feet to the place of beginning, containing 15.565 acres, more or less. and which have Key Numbers 18-8021-0845.03 and 18-8021-0845.04 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 seq. 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. ~~ Me the Commo ncil ~~ ~o~ ,.,..~~h~TED NOT APPROVEkI ~pOPTED ~ ~ ~ 2~ J ~ 7 Filed Ire Clerk's C~~fice JU L 1 6 2007 JO}IN VOOFaDE CITY CLEtSK, S0. BEND, tN, 1200 COUrrr~t-CrrY BtnLDING 227 W. JEFFERSON BOULEVARD SOL1Tx 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 ~L 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 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 ~ PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD Fax: 574/235-9697 574/235-9371 1200 COiJN'I'Y-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 FAx 574/235-9021 TDD 5741235-5567 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. MEYEP. DONALD E. INKS MANAGEMENT 5741235-9660 574/235-9371 ELIZABE7H LEONnnD 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 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 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 prof ects 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 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 prof 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 (Walnut Street) South Bend Portage 5 Year Personal Property Abatement Schedule* Total estimated Equipment Cost: $400,000 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 $160,000 $160,000 $8,244 $581 7,663 100% $7,663 2 0.56 $224,000 $224,000 $11,541 $813 10,728 80% $8,583 3 0.42 $168,000 $168,000 $8,656 $610 8,046 60% $4,828 4 0.32 $128,000 $128,000 $6,595 $465 6,130 40% $2,452 5 0.24 $96,000 $96,000 $4,946 $348 4,598 20% $920 $39,982 $2,816 37,166 $24,445 Total Taxes Due During Abatement: Total Taxes Abated During Abatement: Total Taxes Paid During Abatement: $37,166 $24,445 $12,721 16-J u1-07 Tax Paid $0 $2,146 $3,219 $3,678 $3,678 $12,721 -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 (Walnut Street) 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 TTV% (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. EXfIIBIT A LEGAL DESCRIPTION A tract of land in the City of South Bend, County of St. Joseph, and State of Indiana, situated in the Northwest Quarter of Section 14, and the Northeast Quarter of Section 15, Township 37 North, Range 2 East, bounded by the following described line: Beginning at a point in the West line of Walnut Street, 1239.70 feet South of the South line of Sample Street, which point is 587.95 feet South of the South line of the Sanders and Egbert Tract, as conveyed by deeds recorded in Deed Record 118, page 428 and Deed Record 121, page 320; thence on an assumed bearing of South 0 00'49" East along said West line of Walnut Street, 479.91 feet; thence South 89 54' 12" West, 725.03 feet; thence South 61 54' 12" West, 42.91 feet; thence South 89 23'32" West, 437.13 feet; thence North 0 00'49" West parallel with said West line of Walnut Street, 504.26 feet; thence North 89 55'05" East, 1200 feet to the place of beginning. A tract of land in the City of South Bend, County of St. Joseph, and State of Indiana, situated in the Northwest'/4 of Section 14, and the Northeast'/4 of Section 15, Township 37 North, Range 2 East, bounded by the following described line: Beginning at a point in the West line of Walnut Street, 682.75 feet south of the South line of Sample Street, which point is 31 feet South of the South line of the Sanders and Egbert Tract, as conveyed by deeds recorded in Deed Record 118, page 428 and Deed Record 121, page 320; thence on an assumed bearing of South 0 00'49" East along said West line of Walnut Street, 556.95 feet; thence South 89 55'05" West, 1200 feet; thence North 0 00'49" West parallel with said West line of Walnut Street, 589.19 feet to a point 651.75 feet South of the South line of Sample Street or the produced South line of the tract conveyed of F.C. Raff, recorded in Deed Record 172 page 641; thence South 89 57' 10" East along the South Line above described tract produced East, 295 feet; thence South 0 00'49" East parallel with the West line of Walnut Street, 31 feet; thence North 89 57' 16" East, 905 feet to the place of beginning, containing 15.565 acres, more or less. The foregoing legal description includes tax parcel no. 18-8021-084504. ~~l~ ~~~r~'s ~;~oce JUL - 5 2007 ~G~t~a E~c~,;t:~t: crrr c~.~t~~, s=}. rr~>ao, t~ ~~:.~.;~ + l ou f Ff._~~; FUi -Jr t ~ •~ ~~~~~i~~~tl y~~fi+~~7 i ~ h ~ x ~ - i rl+~• . u E4ark.: ~~ L9QOSEYEUI~ .Fl_l , _ ~ K ( ~ f '~ >t n ~YAerdf~Ptik`:'. x ~ C '" ~ SE ~ ~ rxrn,v ii s • ./~ _ J _ u S~ ZT.i FF ~Ii q ,'~ 1 _ ' ~'IJ ?4F ~ YURPM~ ~~ erg ~~ ~-~.,~ F eVE. > - 1 Y Y~~ Fotfµ_~~',~A~vE. 4 7-disk t -5 ~ .~ wIl11AY$/VR tDtEH'~D. 1 E >y ° Utrr.p. ? t ~ E.S. tPP ~ { > 9FQ~ e° ~o` ` S ~ ~ c WRwQg~ w.3ungt.. l IT tYsu%E ~ ;...t ~r'v, i• -NAA y, li t.ti lquln IM111N1 Y^ V ^ 4r~ 4 ~ 6 1 ~ M ur w ~ . 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ASS.ep4n j r ~ t~l ,33tjuPlpx D0. , SDUII~ \~O `C ` \ \ _- _ - ~ .tt ~A. _~_-~ ^fwOOD _ ~ ` I ~~.~ 6 T-. ~R `J 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, et sea., and South Bend Municipal Code Section 2-84.2, etet sea•, for this petition states the following: 1. Describe the proposed project, including information about the new manufacturing equipment personal property ("equipment"} to be installed, the amount of land to be used, if any, 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 equipment having a total cost expected to be from $400, 000 to $2. S million. The project will enable Petitioner to add capacity to its tool steel operations. 2. It is anticipated that the project will create from five (5) to up to twenty-five (25) new permanent full time jobs, representing a new annual payroll of $156, 000 and will help the Petitioner to maintain 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 $400, 000 and a maximum of $2.5 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 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 center 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: 1215 and 1217 S. Walnut Street, South Bend, Indiana 7. The Key Numbers of said Property are: 18-8021-0845.03; 18-8021-0845.04 8. Attach the legal description of the Property where the Equipment is to be located, marked "Exhibit A," and is hereby incorporated herein. •+ , 9. Attach a map and/or plat describing the property where the Equipment is to be located, marked "Exhibit B", and is hereby incorporated herein. 10. Attach photographs of the property, taken within 30 days of filing of this petition, marked "Exhibit C," and 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 and promoting without discrimination with respect to race, creed, color or gender. The number of minority full time employees in the company totalled 119 in 2402, 130 in 2003, 132 in 2004, 129 in 2005 and 129 in 2006. Currently the compatry 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? $400, 000 million to $2.5 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, SOD. 18. What is the commitment your firm will make to minority employment during the five years of tax abatement? Petitioner will contimre 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. 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 2 ~{ 21. The Internal Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description: SOSO 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, ifany, 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. 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, 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. (S gned Name) (Typed or prurted name and capacity of signor if signed by an agent or representative of the owner) (tangible personal prop aug 2IX1~ STATEMENT FOR THE 2007 PROJECT FOR TAX ABATEMENT The project involves an investment in new manufacturing equipment that will increase Petitioner's capacity for production of tool steel. The project is expected to create from five to twenty-five new full time jobs with an annual payroll increase in the range of $156,000; and will help Petitioner to retain its 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 merchandise its services and products in the market for tool steel, and thereby expand its utilization of Petitioner's existing manufacturing capabilities. Filed lr~ Clc~~'s Offil~e JUL - 5 2007 4 Doti"! VoORf~E can cl.~~~:, 4.0. s~r~a, ix