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HomeMy WebLinkAboutBill No. 16-61 Personal Property Designating Tax Abatement for AM General, LLC227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 August 2, 2016 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 PHONE: 574/235 -9371 FAx:574/235 -9021 RE: Personal Property Tax Abatement Petition for: AM General, LLC Dear Council Member Ferlic: Please find the attached information pertaining to a personal property tax abatement petition for AM General, LLC: ➢ Department of Community Investment's summary report ➢ Copy of the petition ➢ Statement of Benefits form ➢ Supporting information. The report contains the Department's findings relative to the above petition. AM General, LLC will be investing approximately $1,100,000 in the purchase of new equipment, as part of their Service Parts Logistics Operations (SPLO). AM General, LLC will be relocating their SPLO operation to South Bend in an effort to become more efficient, reduce costs, and build a new Military Field Service & Training group that provides technical support and training to its customers. The project meets the qualifications for a (5) five year personal property tax abatement. A representative from AM General, LLC will be available to meet with the Committee on Monday, August 8, 2016. 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 -5823. Sincerely, Aaron Kobb Director of Economic Resources PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES TIM CORCORAN PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB TO: FROM: SUBJECT DATE: AX ABATEMIENT REPOR7 SOUTH BEND COMMON COUNCIL AARON KOBB PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: AM General, LLC August 2, 2016 On Wednesday, August 3, 2016, a petition from AM General, LLC was received and subsequently filed with the City Clerk for personal property tax abatement consideration for property to be located at 5448 Dylan Drive, South Bend, IN 46628. Pursuant to Chapter 2, Article 6, Section 2 -84.2 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community Investment for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to I.C.6 -1.1 -12.1 and whether all zoning requirements have been met. The Department of Community Investment has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY ➢ Purchase of approximately $1,100,000 of new equipment as part of their Service Parts Logistics Operations (SPLO). AM General, LLC will be relocating their SPLO operation to South Bend in an effort to become more efficient, reduce costs, and build a new Military Field Service & Training group that provides technical support and training to its customers. ➢ Estimated total taxes on new equipment over the five abatement period — $94,366 ➢ Estimated taxes abated on new equipment over the five abatement period — $43,483 ➢ Estimated taxes to be paid on new equipment over five year abatement period — $50,883 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: ➢ Create 123 permanent, full -time jobs within the five year abatement period, representing a new estimated annual payroll of $9,307,459 PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES TIM CORCORAN PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous abatements. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the River West Development Area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement. RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 5448 Dylan Drive, South Bend, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR: AM General, LLC WHEREAS, a petition for personal property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 5448 Dylan Drive, South Bend, IN 46628 and which is more particularly described as follows: Business Personal Property and which has a Key Number to be assigned be designated as an Economic Revitalization Area under the provisions of Indiana Code 6 -1.1 -12.1 et sue., and South Bend Municipal Code Sections 2- 76 et seq., and; WHEREAS, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6 -1.1 -12.1, et seq., and South Bend Municipal Code Sections 2 -76, et seq., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds pursuant to Indiana Code 6 -1.1- 12.1 -4.5 et seq., that: a. The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type; b. That the estimate of the number of individuals that will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed installation of new manufacturing equipment; C. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION II. The Common Council hereby determines and finds that the proposed new equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6 -1.1- 12.1 -4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community Investment, and the Community Investment Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of (5) five years as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5 -3 -1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Member of the Common 1IRMENTW NOT APPRO�% 2 AcOOTw Filed in Clerk's Office zncil AUG 03 2016 KAKI: BAH FOWLER CITY CLERK, SOUTH BEND, IN MEMORANDUM OF AGREEMENT This Memorandum of Agreement (Agreement) dated as of the 9th day of August, 2016, serves as confirmation of a commitment by AM General, LLC (the "Applicant "), to comply with the project description, job creation and retention (and associated wage rates and salaries) figures contained in its petition, Statement of Benefits, and attachments and this Agreement (Commitments). 1. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Common Council (the "SBCC "), the City of South Bend, Indiana (the "City ") commits to provide a (5) five -year personal property tax abatement for the Applicant, based on the Applicant's commitment set forth in its petition for 5448 Dylan Dr., South Bend, IN, 46628 (Key No. to be assigned). The Applicant commits to a capital expenditure of $1,100,000 associated with the purchase of new equipment. This personal property project will create at least one hundred twenty three (123) new, permanent full -time jobs with a total estimated annual payroll of $9,307,459 within the five year abatement period. 2. Potential Impact of State of Indiana Circuit Breaker Law: The parties note that the calculations regarding the affect of the tax abatement in question are based on the State of Indiana's tax rates currently in effect at the time of entering into this Memorandum of Agreement. The complete impact of the State of Indiana's Circuit Breaker law on the City's property tax revenues is unknown at this time. To assure that the City receives the projected amount of property tax revenues, which amount was calculated at the time of granting the tax abatement for the Applicant, the parties to this Memorandum of Agreement agree to adjust the length of the abatement and /or the percentage of deduction if the tax revenues due under the Circuit Breaker Law are less than what was initially projected and represented to the Common Council, as evidenced by the supporting documentation submitted to the Council with the Applicant's tax abatement petition. However, in no case will the adjustments cause the property taxes to be paid to exceed the tax payments as initially projected and represented to the Common Council by the aforementioned supporting documentation. 3. Applicant's Compliance with City and State Laws. During the term of the abatement, the Applicant shall comply with Chapter 2, Article 6 of the South Bend Municipal Code entitled "Tax Abatement Procedures" and all governing provisions of the Indiana Code. Memorandum of Agreement Page 2 of 6 During the term of this abatement, the City may annually request information from the Applicant concerning the nature of the Project, the approved capital expenditure of the Project, the number of full -time permanent positions newly created by the Project, and the average wage rates and salaries (excluding benefits & overtime) associated with the positions, and the Applicant shall provide the City with adequate written evidence thereof within 15 days of such request (the "Annual Survey "). The City shall utilize this information and the information required to be filed by the Applicant in the CF -1 Compliance with the Statement of Benefits form to verify that the Applicant has complied with the commitments contained in the Commitments at all times after the Commitment Date and during the duration of the abatement. The Applicant further agrees to provide the City with such additional information requested by the City related to the information provided in the Annual Survey and the CF -1 form within a reasonable time following any such additional request. 4. Substantial Compliance and Rights of Termination. The City, by and through the SBCC, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it determines that the Applicant has not made reasonable efforts to substantially comply with all the Commitments, and the Applicant's failure to substantially comply with the Commitments was not due to factors beyond its reasonable control. As used in this Agreement, "substantial compliance" shall mean the Applicant's compliance with the following: (a) making personal property expenditures of not less than One Million One Hundred Thousand ($1,100,000) for new equipment. This personal property investment will create at least one hundred twenty three (123) new, permanent full -time jobs with a total estimated annual payroll of $9,307,459 within the five year abatement period.. 5. Factors Beyond Control. As used in this Agreement, factors beyond the control of the Applicant shall only include factors not reasonably foreseeable at the time of designation application and submission of Statement of Benefits which are not caused by any act or omission of the Applicant and which materially and adversely affect the ability of the Applicant to substantially comply with this Agreement. 6. Repayment of Tax Abatement Savings. If at any time during the term of this Agreement the Applicant shall: (i) be delinquent or in default with respect to any tax payment in St. Joseph County, Indiana; or (ii) cease operations at the facility for which the tax abatement Memorandum of Agreement Page 3 of 6 was granted; or (iii) announce the cessation of operations at such facility, then the City may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require Applicant to repay all of the tax abatement savings received through the date of such termination. 7. Notice/Hearing of Termination. In the event that the City determines . that the Economic Revitalization Area designation and associated tax abatement deductions should be terminated or that all or a portion of the tax abatement savings should be repaid, it will give the Applicant notice of such determination, including a written statement calculating the amount due from the Applicant, and will provide the Applicant with an opportunity to meet with the City's designated representatives to show cause why the abatement should not be terminated and/or the tax savings repaid. Such notice shall state the names of the person with whom the Applicant may meet and will provide that the Applicant shall have thirty days from the date of such notice I to arrange such meeting and to provide its evidence concerning why the abatement termination and /or tax savings repayment should not occur. If, after giving such notice and receiving such evidence, if any, the City determines that the abatement termination and/or the tax repayment action is proper, the Applicant shall be provided with written notice and a hearing before the SBCC before any final action shall be taken terminating the abatement and/or requiring repayment of tax benefits. The Applicant shall be entitled to appeal that determination to a St. Joseph County Superior or Circuit Court. 8. Repayment. In the event the City requires repayment of the tax abatement savings as provided hereunder, it shall provide Applicant with a written statement calculating the amount due (Statement), and Applicant shall make such repayment to the City within 30 days of the date of the Statement. If the Applicant does not make timely repayment, the City shall be i entitled to all reasonable costs and attorneys' fees incurred in the enforcement and collection of the tax abatement savings required to be repaid hereunder. 9. Modification/Entire Agreement. This Agreement and the schedules attached hereto contain the entire understanding between the City and the Applicant with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings, inducements, and conditions, expressed or implied, oral or written, except as z herein contained. This Agreement may not be modified or amended other than by an agreement in writing signed by the City and the Applicant. The Applicant understands that any and all Memorandum of Agreement Page 4 of 6 filings required to be made or actions required to be taken to initiate or maintain the abatement are solely the responsibility of the Applicant. 10. Waivers. Neither the failure nor any delay on the part of the City to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege with respect to any occurrence or be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 11. Governing Laws of Indiana. This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be governed by the laws and decisions of the courts of the State of Indiana. 12. Applicant's Consent to Jurisdiction. The Applicant hereby irrevocably consents to the jurisdiction of the Courts of the State of Indiana and of the St. Joseph County Circuit or Superior Court in connection with any action or proceeding arising out of or relating to this Agreement or any documents or instrument delivered with respect to any of the obligations hereunder, and any action related to this Agreement shall be brought in such County and in such Court. 13. Notices. All notices, requests, demands, and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been received when delivered by hand or by facsimile (with confirmation by registered or certified mail) or on the third business day following the mailing, by registered or certified mail, postage prepaid, return receipt requested, thereof, addressed as set forth below: If to Applicant: AM General, LLC 5448 Dylan Drive South Bend, IN 46628 Attn: Eric Swift . Memorandum of Agreement Page 5 of 6 If to the City: City of South Bend, Indiana 227 West Jefferson Blvd. Suite 1400S South Bend, Indiana 46601 Attn: Aaron Kobb, Department of Community Investment 14. Assignment and Transfer Prohibited. This Agreement shall be binding upon and. inure to the benefit of the City and the Applicant and their successors and assigns, except that no party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party hereto, in which consent shall not be unreasonably withheld. 15. Valid and Binding Agreement. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. By executing this Agreement, each person so executing affirms that he has been duly authorized to execute this Agreement on behalf of such parry and that this Agreement constitutes a valid and binding obligation of the party. 16. Severability. The provisions of this Agreement and of each section or other subdivision herein are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part unless this Agreement is rendered totally unenforceable thereby. 17. No Personal Liability. No official, director, officer, employee or agent of the City shall be charged personally by the Applicant, its employees or agents with any liabilities or expenses of defense or be held personally liable to the Applicant under any term or provision of this Agreement or because of the execution by such party of this Agreement or because of any default by such party hereunder. [Remainder of page intentionally blank.] Memorandum of Agreement Page 6 of 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. Applicant" kM General, LLC Y: Eric Swift, Manager, Logistics ty" of South Bend, Indiana Tim Scott President, South Bend Common Council Y: as to Legal Adequacy and Form Gavin Ferlic day of , 2015. 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CV 9; i _ � O a n _,; i m T _ a) cO U - 3 ,E _ LL ) 3 City of South Bend �Petit��n for Incentives oQOUT! Wq l '� ' Petition must tnch c� 1 fee pgyuble a the C/ty Cle k's Ojj/ce of online vlo he Clty's webs(te at ` �' . hitp/rfeclJp govjgtett,e�coe�t�tt abtrtemnt before processllig 4an be talnPlete V • • . SPLO Footprint Reduction Legal nam' eYiegls 'te7e3iwitfiSe�retar�iof� AM General LLC gasinessstru ore �, - .. Afterrnarket Warehousing Division - Service Parts Logistics Operation (SPLO) Corripan�rwbstte AMGenaratcom roposed Project Information .,� 5448 Dylan Drive Pareift om name Blackthorn - GLC@ Portage Praide City State South Bend IN w tegalowner �� Sita acreage oraueaga_regatred 25 acre site Cs the dal estate owned or Leased � Full-Time Permanent Indiana-Resident Positions by Calendar Year Cafen�otyear "Iobetat 7atjh�rt�IX tCYrahufadve #d{netNEWtut(3�me = HourlyaWlage,w %off tteiiinin ottoh wagso parnianentjobrcreatedatprq)act paiefltsor6onuses , of expeedlture? troined� not hgebr eumulatfvehetnewjobf not stinfa8ys;,e � � k bondses , tunlulative ' 123 536.38 21#7.. 2618 2023 _ - 2023 2025 2026 • • ••• • - • • • • • •• taborars $12.00 1ed�rllat s $28.03 twz agerial s $34,85 Adtnt�)btrst7ue $17.09 o e �_re�spo.a,� q armor _ a w.tr- �WorkOneznreuul - <`- uoesyour mmpahryhave ryn EEO �lrk eoltcy Yes hAre you an �o ginployer? _. _._._. Yes • • • • • • • • • • . • ptasedesatbeyo7ltcorLhmitmefit o the last three years: diversitgandladuston6ydetaWngy�our 'T/n�' �>r= 2014 butreadi and reqult dent efforts fo a lad 2015 2013 threeyea "rsaswellaseihtrentpoll�as ,.Itii�ma _pP- rt`limn `'F�iBTime -` Partitme FugTime ?pertTtme' 197 0 208 0 228 0 The numbers represents all AMG locations and attached is AM General's 61 0 64 3 0 66 0 commitment to diversity and Inclusion. This includes outreach and recruitment 14 0 14 0 15 0 hidian efforts, all internally posted jobs include 3 3 0 4 0 4 0 the inclusion verbiage as well as hiiing managers . must acknowledge the - - 313 0 317 0 353 D company policy was read_ and adhered. the ' 0 0 0 0 0 Riease cortip)etethe table eiow with trig apritof fate information If ` you qualify far the points, please enter the ful) arrloaht of available (Yes or NoJ a earned yoints ; Available points .��. MnstructTon,Re`latetl Cdritractbrsl A ; employ Local Corrpafiles,(75j,, n, _. . , . _ r _ Yes 20 20 8 purhasv1aEerials from Local Companies {75 %) Ys e 20 20 Emp)oye Vs ,Iridepelttlent Colltrators, , Yes 19 1g 0 titre Pvalirr WagDavls Racon) 22 Eelre H(18e! itS £_. _ 22 F A, Require Pen T n 9egeflts 18 s _ INalntafn AfffrmativeActioli Plan :. 20 „ 5ubdotal Constructior! Related: 59 141 Retete8 ;A Pay TargetVilageLevels, Yes 33 33 =8 RrovideHea�th,Behefits` Yes 34 34 C Provide Pdon eeneffts Yes 29 29 D I?rovTdeT {airAing Yes 28 28 E Provitle Child Care _ No 15 ProvfdeTran3poitationAssistance; No 14 G ProvideEnfployerAsfftedHou3trtg .program_ No g Subtotal Wage_8< Benefit!Reletedr . , 124 162 3 - Workforce Related: A. C[gateNevrJd�s Posstbly 42 ti. Re�alnxtstinB7o� Yes 41 41 G: Maintain Af 401; e A fi Plan Yes 35 35 D. ProirldgTarpffeed Hlripg Rreference Yes 34 34 - 152 v or kforceRelated ;, 110 4 .:. ,support a'MUriidoafladlity Support a SB Nfunic�al Facility (donations to the zoo, conservatory, museum, etc) Yes 84 84 _ _ N_a'm_e ofFactlfty _ Sub to aiJVlun�Cipal Facility 84 gq — Sub tolfrom,Above. .. 539 377 1) How do I pay my petition filing fee? Your petition filhngfee can be paid either In person or via wail to: Or online via paypal at: City Clerk's Office http ://southbendingovlgovernmetut/ Attu: Deputy City Cienk content /tax - abatement 227WestfeffeisouBlvd. • Suite 406S South Bend, Indiana 46601 2) Certified Technology Park appropriate? (Page one, underproject overview) In the South Bend area there are onlytivo Certifier) Technology Parks, Innovation Park and Ignition Park. If yourproperty is not located in either then the answer would be no. 3) Is your project in a Tax Incremental Financing (TII) area? (Page one, under project overview) A map of the TIF areas can be found ah h up: 11southbettdin gov /sites /default /files /files /dci /CL Develop it) ent_areas nnap0315.pdf 4) Has any 504 funding been received? (Page one, under investment details) 504 Funding is a loan that come front the Small Business Administration. This funding ntnnstbe applied for to be received. 5) Total training expenditure -not cumulative (Page two, under full time Indiana resident positions) The amount of money to be spent per year on training over the course of the project. 6) Total number to be trained - not cumulative (Page hvo, under full time Indiana resident positions) The amount ofpeople that you will train per year over the length of the project. If you have any additional questions that are not addressed by this document, please contact Sarah Heintzehnnn in the Department of Community Investment at 574.235.5842 or email at sheinize@southbendin.mv Filed in Clerk's Office JUL i 3 2'016 KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN Filed In Clork s office R STATEMENT OF BENEFITS f' FORM 58 -1 / PP PERSONAL PROPERTY State Form 61764 (R4111 -15) JUL i. � io {-c "� , v' • Prescribed by the Department of Local Government Financ L U 1 U PRIVACY NOTICE A information concerning the cost i�REiiViAI i of he property and specific salaries paid FOWLER to ndividual employees by the pro pel! CITYCLERK, SOUTH BEND, ! o er is coMtdenual per IC ti -1.1- 12.1 -s:iY INSTRUCTIONS 7. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing If the designating body requires information from the applicant In making its decision about whether to designate an Economic Rew7a//zellon Area. Otherwise Als statement must be submitted to the designating body BEFORE a person Installs the new manufacturing equipment and/or research and development equipment, and/or logistical distribution equipment antl(or Information technology equipment for which the person wishes to claim a deduction. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the Installation ofqualitying abatable equipment for which the person desires to claim a deduction I To obtain a deduction, a person must file a certified deduction schedule with the persons personal property return on a certified deduction schedule (Form 103 -ERA) with the township assessor of the township where the property is situated or with the county assessorif there Is no township assessor for the township. The 103 -ERA must be filed between January 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment and/r logistical distribution equipment and/or information technology equipment Js Installed and fully functlonal, unless a filing extension has been obtained A person who obtains a f/fim9 extension must fie the form between, January 1 and the extended date date of that year Property owners whose Statement of Benellts was approved, must submit Form CF 11PP annually to show compliance with the Statem ant of Benefits. (IC 6 ->.1- 12.1 -6.6) Fora Form S13-11PP that Is approved after June 30, 2013, the designating body is required to astahfish an abatement schedule for each deduction allowed. Fora Form SB- 11PPthat Is approved priorto July 1, 2013, the abatement schedule approved bythe designating body remains in effect (IC &1.1- 12.1 -17) LLC I Eric Swift. Manaaer. Lnaistirc At runt 105 N Niles Ave street, dIX state, and Bend,IN 4661 (574 ) .......1.,.1, - —%,w— rU1wyc rr till it: 2872-00 Location of propsny 5448 Dylan Dr, South Bend IN 46.628 County DLGF texing district number St. Joseph 009 Description of manufacturing equipment and /or research and development equipmant ESTIMATED and/or logistical distribution equipment and /or Information technology equipment. (Use additional sheets If necessary.) START DATE I COMPLETION DATE Manufacturing Equipment Pallet Racking, Fork Trucks, R & D Equipment Logist Dist Equipment 09/2016 12131/2016 IT Equipment 09/2016 12/31/2016 Curmnlnumber Salaries Number retained Saledea Numberaddiuonal Salaries 136 $40.78 123. 36.38 IMIN NOTE: Pursuant to iC 61.1- 1216.1 (d) (2) the MANUFACTURING EQUIPMENT R & D EQUIPMENT LOGIST DIST IT EQUIPMENT COST of the property is conftdentlal. COST ASSESSED E UIPMENT COS ASSESSED ASSESSED ASSESSED �S CDC COST VALUE VALUE Current values 631.008 1,444,50 227,269 Plus estimated values of proposed project 5,0 3,065,0 Less values of props bein replaced Net estimated values upon completion of roject 13.696.0(H 227.269 Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Olherbenauts: SECTION hereby : ertiy that the representation In this statement are tnme, S auth rep tive Date signed (month, dax year) `� / Prin name . sentaa" N t - Title Rk0iA & +1 " r — SP) 1) Page 1 *f2 FOR 25E OF TME DESIMATING BODY We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standard adopted in the resolution previously approved by this body. Said resoluton, passed under IC 6 -1.1- 12.1 -2.5, provides for the following limitations a authorized under IC 6 -1.1- 12.1 -2. A. The designated area has been limited to a period of time not to exceed calendar years * (see below). The date this designation expire., is . NOTE., This question addresses whether the resolution contains an expiration date for the designated area B. The type of deduction that Is allowed in the designated area Is limited to: 1 . Installation of new manufacturing equipment; ❑ Yes ❑ No ❑ Enhanced Abatement per G -1.1- 12.1 -18 2. Installation of new research and development equipment, ❑Yes ❑No Check box Man enhanced abatement was 3. Installation of new logistical distribution equipment, ❑ Yes ❑ No approved for one ormore of these types. 4. Installation of new information technology equipment; ❑ Yes ❑ No C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of $ (One or both lines maybe filled out to establish a limit, If desired.) D. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of $ (one or both lines maybe filled out to establish a limit, if desired.) E. The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of $ . (One orboth lines maybe filled out to establish a limit, 1f dastred) F. The amount of deduction applicable to new Information technology equipment Is limited to $ cost with an assessed value of $ (One or both lines may be filled out to establish a limit, If desired) G. Other limitations or conditions (specify) H. The deduction for new manufacturing equipment and/or new research and development equipment and /or new logistical distribution equipment and /or new information technology equipment installed and first claimed eligible for deduction Is allowed for ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 ❑ Enhanced Abatementper IC 6- 1:142.1 -18 Number of years approved: ❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 (Enter one to twenty (1-20) years; may not exceed twenty (20) years.) 1. For a Statement of Benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6 -1.1 -12.1 -177 []Yes ❑ No If Yes, attach a copy of the abatement schedule to this form. If no, the designating body is required to establish an abatement schedule before the deduction can be determined. Also we have reviewed the Information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justiry the deduction described above. Approved by: (signature and title ofauthodzed member of deslgnaf✓ng body) Telephone number Date signed (month, day, year) Printed name of authorized memberof designating body Name of designating body Attested by: (signature and fills of attester) Printed name of attester * If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that Is less than the number of years designated under IC 6 -10- 12.1 -17. IG 6- 1:1-12:1 -17 Abatement schedules Sec. V. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or4.5 of this chapter an abatementschedyle based on the following factors! (1) The total amount of the taxpayers investment 16 real and personal property. (2) The number of new full -time equivalent Jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment (b) This subsection applies to a statement of benefits approved after dune 30, 2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify thepercentage amount ofihe deduction for each year of the deduction. An abatement schedule may not exceed ten (10) years.. . (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2