HomeMy WebLinkAboutBill No. 16-22 Confirming Personal Property 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
RESOLUTION NO.
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
5448 Dylan Drive, South Bend, IN 46628
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
AM General, 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
5448 Dylan Drive, South Bend, IN 46628 and which is more particularly described as
follows:
Business Personal Property
and which has Key Numbers to be assigned be designated 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
WISEWS
NOT AMO%W
�,ocw�
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
as shown by the attachment pursuant to Indiana Code 6- 1.1- 12.1 -17 and further
determines that the petition, the Memorandum of Agreement between the Petitioner and
the City of South Bend, and the Statement of Benefits comply 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.
Member of the Common Council
Filed in Clerk's Office
AUG 0 L"
KAIREEMAH FOWL 41:1
On CLERK, 0Outa 89NI
TAX ABATEMENT
TO: SOUTH BEND COMMON COUNCIL
FROM: AARON KOBB
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
AM General, LLC
DATE: 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 $9,307,459
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
TIM CORCORAN PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has not
been granted or associated with any previous abatements.
2. The Building Commissioner has reviewed the petition and finds the property to be
properly zoned for the proposed project.
A review of the South Bend Redevelopment designation areas finds that the
property is located in the River West Development Area.
4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner
meets the qualifications for a (5) five -year personal property tax abatement under
section 2 -84.2, Tangible Personal Property Tax Abatement.
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. City of ;South• Bend �o4�tr<.e�
Petition for Incentive$'` i
Petition mpst Jndude aZ5QJillrg fee pgyable fo the Clry CFerk's Ofjlce or online vFaihe Cftys wehsrte at -
htt 0,00040-A v o" °ern , ?content obatemenIf ore YocessFJige *04 Iefe�_s I ttu ;
�..P_. d9,.�. ��e4L /.,w ./ta?� �. 1 WOO* _
• • SPLO Footprint Reduction
Legal name_ registered a4thedeTar�t 6f F AM General LLC
:.
Businissstrectafe y` Alllermarket Warehousing Division - Service Parts Logistics Operation (SPLO)
Cgmpanywebsite,= AMGeneral.com
Proposed Project
Proposedpi8jeltaddiess 544& Dylan Drive
ParenFtompaninamtl �: Blackthorn Ports Pralde,
tity'State Zip South hand IN
Legal aWnar
Stteacreage:oraveagerequtretl
25 acre site
fsterealestateownedor
Fi
_ Leased
Square ferfiof(adpty ' 210,000 SF
1flrEasedbywho`m` AM General LLC
x..
Primary Contact Information
Primary cornparcoifact dente Eric Switt
�l(° Manager, Logistics Support SPLO
..
Adtlresso�com]ranyeontact
408 South ByrkitStreet
Phone 574_252 -0707
Mishawaka IN 46544
Er(c.SwRtaartgeneral own
Senior Official
lampanysenlaroeialgllah�eWhitby
ttt7e V.P. - Military Operations
Address ohompany co °gtact(lfdHFerentirom
a 13200 McKinley Highway
Phone
_. r µ ` 574 - 258-7540
Elty Slate Zlp Mishawaka, IN 46545
Consultant Information/Agent
Email David. Whitby@.mgenemI.com
HiredbusfrlP soot —tspl at nfa-
C/4arm ortsuttanfr`eIga (Y /N_ j °°
z
Address -
loaletonomiedeveiopmentpaFbue fs'
CIty,State,.Zip --
Email
_-
Project Overvievi
Brisftle`strfp0enfyaut
s
AM General a headquadered m South Bend, Indiana The company traces its history from the 1903 starting with the
company juojeet andvitiythe
Standard Wheel Company to Wplys Overland Motors to Kaiser Motors to Kaiser Jeep and lndrxles ties with Studebaker
property is fecessary for
through American Motors. AM General produced Military Jeeps, Post Office vehicles, Commercial Jeeps, buses, Military 2
ewnomicgrowth
112 ton and 5 ton Trucks in South Bend, Indiana. In the late 1970's, AM General designed the HMMWV and it is still
manufactured in AM Generars Military Assembly Plant (MAP) in Mishawaka, Indiana. The HMMWV led to commercial
ventures like the HUMMER H1. In 2001, AM General opened a new facility in Mishawaka that bulll HUMMER H2s for
General Motors. The Commercial Assembly Plant (CAP) now produces Mercedes R -class vehicles and MV -1 texts.
AM General provides aRermarket vehicle support from its Service Parts Logistics Operations (SPLO) facility to ated In
Mishawaka, IN. This site Is a 450.000SF campus that contains a warehouse operation with over 13,000 unique service
parts and a MR" Field Service & Training (MFS &T) group that provides technical support and bairdng to is customers.
AM General wants to relocate the SPLO operation to this new site to become more efficient to reduce costs and it wants to
build a new up to date MFS&T Training Center that better meets student nee
multiple Interconne cted bungs; it is too large for current business dparts
market Is vary competWve and AM General needs to reduce to oosmaller
single building will a�w AM General to change its processes and aci
MIJUL
- -
more efRclent.
7*7k ��.
tertiRedTeehoologyParkapproprlate- Biackthom- GLC@ Portage Prairie
Isiheprojecklnaa%tnaer�terltal_
t -
3 mt of. at:Use�nvCprtvythae under construction
N
Uthls is a petition for personal property tmrafzafement, baa
No equipment has been Installed, we are evaluating the opportunity to move
-gam
- __
-the t
Positions by Calendar Year
Full-Time Permanent Indiana-Resident
�CaiendarYear '�`�Jo6sre�t�in`e'd °``' "'-
Tota�fho'�rt�'� CumuM6ve`#ofaet,{J�tulttime
'= Hou�(yayafaae� age wJ�'#Tot'at�(tii� ,�ot3J�to�a•
tea£
wageWp permanentjobrtreatedatproJect
lefltscrbohuses;of expenditure trained not:
armulat►venethew)obg itot c�muMtiye;
bonpses
cumulative _
{ k.
-
2016 _ 123
$36.38
2017 h
n�
-
2018
2020
2021
2612-
2013 ,
2024
2025
2026
2027
• • • • • • •
• • •• •
z- ; --�,.- -, _�. ,- F_uAtl�e -�- —
-- - °'t•aittime`. - _
tabor", $12.00
tedlnial ; $28.03
- IVlonage`ir al -..� (34.85
- Admt ktre0ve - $17.09
o e !� respo� R.� orcoor._,n wt_
- WorkOne on rEuui 7
DoedyaurcomparryhavelnEEOhlrbtgpi�11ry7 Yes
iJ►reyouanffo_employer?'
Yes
_ ,a•
H•,�
• • •�.:.
• • •
�li5![MSCfiblyOLf torpmitment
the last three
" diyersftyiandiactuslonbydetaUingy�our
years:
ouliead�`an'd r«ryltmeM efforts for! a (as"F
2015 2014
2013
three yeafsas well as eLtrent po ides
'Fu�ma
�P rttime flidTime
Partlime
FuUTime :.
- Tert7ime'
197
0 208
0
226
0
The numbers reprasents all AMG
locations and attached M AM General's
-
His�ank
66
0
. gi
0 64
0
commitment to diversity and Inclusion.
This Mimes outreach and recruitment
-� 14
0 14
0
15
0
- -= -- -
efforts, all internally posted jobs include
the inclusion verbiage as well as hiring
=lndlan 3
0 4
0
4
0
managers must acknowledge the
M 313
0 317
0
353
0
.
company policy was read and adhered.
Other 0
'0 0
0
0
0
Earl etl Points I llabl& P6
20
20
Yes
20
`Purchase
Yes
'B
22
Yes
22
34
Davis Bacon 77,77
prov ide jpoilliji—
20
29
29
q. .if .,,,,
RequirePensfonBetlef�ts
Yes
28
28
E
Provide Child Care
No
Sub 3otal Construction Related:
di onAsststance: -
ProvW T 1400- 0
1pr.Vld.
No
Earl etl Points I llabl& P6
20
20
20
20
19
19
'B
22
Yes
22
34
18
prov ide jpoilliji—
20
29
29
59
141
Yes
33
33
'B
Provide Heath Beheflts
Yes
34
34
prov ide jpoilliji—
yes
29
29
D
provide Training ..
Yes
28
28
E
Provide Child Care
No
15
di onAsststance: -
ProvW T 1400- 0
1pr.Vld.
No
14
-G.
E-,qp rogram_
No
9
Subtotal Wage & Benefit Related:
124
162
Possibly
42
Yes
41
41
C
Ma1ntain Affirmative Action Mn
Yes
35
35
--pg PreM rpn;e
Yes
34
34
Sub
110
152
lsjoportkR.,
A.
Alcipal FZCI!y 1167atloWto the
---- ---
iop, conservatory, museum, etc) ;
Yes
84
94
Sub s- ww 'NOW.
84
tfi*M.Above.
I
I
377
539
1) How do I pay my petition filing fee?
Your petition filingfee can be paid either in person or via wail to: Or online via paypal at:
City Clerk's Office http: / /Southbetidin gov/goverumentl
Attu: Deputy City Clerk content /tax- abateatent
227 West Jefferson Blvd. • Suite 400 S
South Bend, Indiana 46601
2) Certified Technology Park appropriate? (Page one, under project overview)
In the South Bend area there are only two Certified 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 (TIF) area? (Page one, under project overview)
A map of the TIF areas can be found ah
htip:/lsonthbendin gov/ sites /defauit/ffles /files /dcl /CI Developuient_areas nrap0315.pdf
4) Has any 504 funding been received? (Page one, under investment details)
504 Funding Is a loan that come from the Small Business Administration. Tliis funding rmrst be 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 trainh:gover the course of the project.
6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions)
The amount of people that yon will train per year over the length of ilte project.
If yon have any additional questions that are not addressed by this document, please contact Sarah Heintzehnan in the
Department of Community Investment at 574.235.5842 or email at sheintze@soullrbendin.gov
Filed in Clerk's Office
=13
KAREEMAH FOWLER
CITY CLERK, SOUTH BEND