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�%
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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. Chairperson, Community Investment
Committee
Cekanski- Farrand I I
South Bend Common Council
for Applicant I IBY:
SBDS02 RJD 326640vl
Aaron Kobb
Department of Community Investment
Pete Buttigieg
Mayor
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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