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HomeMy WebLinkAboutConfirming Tax Abatement - 2500 Green Tech Drive - Green Tech Transfer & Recycling LLCRESOLUTION 3796-07 Passed by the Common Council of the City of South Bend, Indiana September 24, 07 zo Attest: City Clerk Vice President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana September 25, 07 20 City Clerk Approved and signed by me September 25, 20~ Maya' /~~~ ~ ~u.c t'~ RESOLUTION NO. 3 ?~ ~- ~? A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OFSOUTH BEND, INDIANA, COMMONLY KNOWN AS 2500 Green Tech Drive TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Green Tech Transfer & Recycling 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 2500 Green Tech Drive, South Bend, Indiana, and which is more particularly described as follows: That part of the Northeast Quarter of Section 23, Township 37 North, Range 2 East, Portage Township, City of South Bend, St Joseph County, Indiana, which is described as Beginning at a point on the East line of said quarter section which is N. 00 degrees-32"-42"E., 633.94 feet from the Southeast corner of said Northeast Quarter, thence North 89 degrees-32'-08"W. a distance of 513.91 feet; thence N. 00 degrees-37'-40" E. a distance of 92.64 feet; thence N. 89 degrees-32'-08 W. a distance of 280.00 feet; thence N. 00 degrees- 37'- 40" E. a distance of 467.98 feet; thence S. 89 degrees-26'-14" E. a distance of 197.94 feet, thence N. O1 degrees-49'-53" E. a distance of 32.63 feet; thence S. 89 degrees-IS'-43" E. a distance of 46.11 feet; thence S. 89 degrees- 26'-14" E. a distance of 548.32 feet to the East line of said Northeast Quarter, thence S. 00 degrees-32'-42" W. along said East line a distance of 591.88 feet to the point of beginning containing 10.05 acres. and which has no Tax Key Number presently, 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 se . SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Ma or. the mmon cil PRESENTED ~ _ Z`{ -~ NOT AppROVED ADOPTED ~ _'Z ~ - O Fi1e~ ]t~ ~- r'=~'~ Office AUG 1 5 2007 JO;~tN YpORDE CITY C'sEFK, E0. EEND, IN. _ 1200 COUNTY-CITY BUILDING Z27 W. JEFFERSON BOULEVARD SOUI'E-1 BEND, INDIANa 46601-1830 PrIONE 574/ 235-9371 Fax 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY SL ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY August 10, 2007 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: Green Tech Transfer & Recycling LLC Dear Council Member Dieter: Please find attached the Department of Community & Economic Development's report on a personal property tax abatement petition for the above-referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the acquisition and installation of new equipment as part of the company's planned start-up of its new facility to be located at 2500 Green Tech Drive. The site is currently owned by St. Joseph County. It will be purchased by Mother Earth, LLC who will in turn lease the site to Green Tech Transfer. The report contains the Department's Endings relative to the above petition. Green Tech Transfer & Recycling LLC will be purchasing and installing the new equipment. The total project cost for the equipment is estimated at $3,141,620. The project meets the qualifications fora (5) five-year personal property tax abatement and a representative from Green Tech Transfer & Recycling LLC will be available to meet with the Committee on Monday, August 27, 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 235-9278. Sincerely, Kathy Hahn Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCL4L HC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 5741235-9660 574/235-9371 EuzAaETe LEONARD PAX: 574/235-9697 574/235-9371 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD $OITFIl 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 & ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: Green Tech Transfer & Recycling LLC DATE: August 10, 2007 On August 9, 2007, a petition for personal property tax abatement consideration for property located at 2500 Green Tech Drive was filed with the City Clerk by Green Tech Transfer & Recycling LLC. 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 and Economic Development 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 and Economic Development has reviewed the petition (a copy ofwhich is attached), investigated the area, and makes the following report. PROJECT SUMMARY Green Tech Transfer & Recycling LLC is a 10.05 acre Brownfield Development to bebuilt as astate-of- the-art trash recycling/transfer facility. The project is on the former Studebaker Plant 8 site off of Ewing Avenue. The prior decaying building on the site is being 98% recycled upon deconstruction. The amount of waste that will be converted annually is estimated at 8,400,000 pounds. The new equipment to be installed on the site has a total estimated cost $3,141,620. It will be used to receive, weigh, sort, and transport reusable items from refuse. Material brought to the transfer station will be unloaded onto the tipping floor, inspected and sorted. Recyclable material will be moved to automatic and manual sorting conveyor and baler systems to be processed and marketed. Non-recyclable material will be transported to approved landfills. The new equipment consists of a 70 foot by 10 foot steel deck truck scale, ramps, COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM PAMELA C. MEYER DONALD E. INK$ MANAGEMENT 574/235-9660 5741235-9371 ELtZA6ETH LEONARD PAX; 574/235-9697 574/235-9371 South Bend Common Council RE: Green Tech Transfer & Recycling LLC August 10, 2007 Page 2 wiring, control panels with scale house, automatic sorting conveyor, product balers, platform scale, material handlers, and computer systems. Total taxes to be abated during the (5) five-year abatement period are estimated at $191,998. Total taxes to be paid during the (5) five-year abatement period are estimated at $99,911. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create nine (9), new, permanent, full-time jobs representing a new annual payroll of $217,256. The prof ect is developing a completely new facility and, therefore, does not have any existing employees. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has not been granted or associated with any previous tax abatement. . 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 Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications fora (5) five-year personal property tax abatement under section 2-84.2, Tangible Personal Property Tax Abatement. Tax Abatement Schedule prepared for: Green Tech Transfer & Recycling, LLC South Bend Portage 5 Year Personal Property Abatement Schedule* Total estimated Equipment Cost: $3,141,620 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 $1,256,648 $1,256,648 $64,748 $4,560 60,188 100% $60,188 2 0.56 $1,759,307 $1,759,307 $90,647 $6,385 84,262 80% $67,410 3 0.42 $1,319,480 $1,319,480 $67,985 $4,788 63,197 60% $37,918 4 0.32 $1,005,318 $1,005,318 $51,798 $3,648 48,150 40% $19,260 5 0.24 $753,989 $753,989 $38,849 $2,736 36,113 20% $7,223 $314,027 $22,118 291,909 $191,998 Total Taxes Due During Abatement: Total Taxes Abated During Abatement: Total Taxes Paid During Abatement: $291,909 $191,998 $99,911 14-Aug-07 Tax Paid $0 $16,852 $25,279 $28,890 $28,890 $99,911 * -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. 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 se and South Bend Municipal Code Section 2-84.2, et se for this petition states the following: 1. Describe the proposed project, including information about the new manufacturing equipment personal property (Aequipment@) to be installed, the amount of land to be used, if any, the proposed use of the equipment, and a general statement as to the value of the project to your business. Green Tech Transfer & Recycling LLC is a 10.05 acre Brownfield Development to be built as astate-of-the-art recycling/transfer facilty. Equipment will be used to receive, weight, sort and transport reusable items from refuse. 2. The project will create 9 new, permanent jobs within the first year, representing a new .annual payroll of $ 217,256.00 and will maintain 0 existing permanent full-time and 0 existing part- time jobs representing an annual payroll of $ 0 The projected annual salaries for each new position created are estimated to be as follows: (1) Facility Operations Manager $40,950 (2) Sorters $53,040___ (1) Dispatch/Clerical $31,720 (2) Equipment Operators $53,456 1 Clerical 23 920 2 Truck Drivers 55 120 3. Estimate the total cost of the Equipment: $3,141,620.00 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): NAMF. AilT1RF.4C INTEREST Green Tech Transfer 2500 Green Tech Dr. & Recycling LLC South Bend, IN 46613 (Revised 8/2/02) 1 (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): NAME ADDRESS INTEREST None 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: Green Tech Transfer & Recycling LLC is a 10.05 acre Brownfield Development to be built as astate-of-the-art recycling/transfer facilty. Equipment will be used to receive, weight, sort and transport reusable items from refuse. 6. The commonly known address of the property where the Equipment is to be located is: 2500 Green Tech Dr., South Bend, IN 46613 7. The Key Number of said property is: -r ~2 ~2 l~r- ~ ~ Klwr~ ~ ri N ~ N,- 8. Attach the legal description of the property where the equipment is to be located, marked AExhibit A,@ and is hereby incorporated herein. 9. Attach a map and/or plat describing the property where the equipment is to be located, marked AExhibit B,@ and is hereby incorporated herein. 10. Attach photographs of the property, taken within 30 days of filing of this petition, marked AExhibit C,@ and hereby incorporated herein. 11. The current assessed valuation of the tangible personal property to be replaced by the new manufacturing equipment is $ 0 (This information may be obtained from the St. Joseph County Assessors office 235-9523) 12. The current use of the real property where the Equipment is to be installed is Abandoned Brownfield and the current zoning is General Industrial (use) and _ (height and area). (This information may be obtained from the Building Department 235-9553) (Revised 8/2/02) 2 13. List the real and personal property taxes paid at the location during the previous five years, whether paid by the current owner or a previous owner: YEAR REAL PROPERTY TAXES PERSONAL PROPERTY TAXES n o (This information may be obtained from the St. Joseph County Treasurers office 235-9531) 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). N/A New Company 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? $ 3,141,620.00 17. What is your best estimate of the amount of taxes to be abated during each of the five years after installation? *See attached Exhibit D. 18. What is the commitment your firm will make to minority employment during the five years of tax abatement? Green Tech Transfer & Rec~g LLC is aggressively seeking minority employment pursuant to the terms of our affirmative action plan (Revised 8/2/02) 3 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: Division F: Wholesale Trade, Durable Goods Major Groin 50: Wholesale 5093 Scrap & Waste Material 21. The Internal Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description: Merchant, Wholesalers Durable Goods; Recyclable Materials 423930 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: N/A 23. Other anticipated public financing for the project including, if any, industrial revenue-bonding to be sought or already authorized, assistance through the United States Department of Housing and Urban Development funds from the City of South Bend, Small Business Association Sections 503 and 504 financing through the Business Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana; or other public financial assistance, including but not limited to public works improvements. None anticipated 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: A 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. (Revised 8/2/02) 4 26. The following person(s) should be contacted as Petitioner=s agent regarding additional information and public hearing notifications: Name: Belinda Morris Address: 1420 S. Walnut St. City, State, Zip Code: South Bend, IN 46619 Telephone: 574-232-6000 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): Green Tech Transfer & Recycling LLC By: (Signed Name) Belinda Morris (Typed or printed name and capacity of signor if signed by an agent or representative of the owner) Eiied In Clerk'e C~ice A~l~'9 ~ JOk~ta VSC3tREa~ CiT't CL~fiY~~ (Revised 8/2/02) 5 AU G 9 2001 JOFi~a VC~3RDE CITY CLEF;i<, S~J. Bftra, IN. . .~. E'' -` - . f i . r ~ i `~J-`1 : iE J~ \ `~~..% ' ~ ~ t '_-~ ~ a ~' v:~~• tl 1/ ~ c ~ .. ~ ~i -. I -_ It C ~-i,C'r ~~-~--.::~7,~ y t ,''~. `(, I _ .~,~I `~ . , ~ ;:~ ~ ~ r ?,II~ r+.' 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