Loading...
HomeMy WebLinkAbout16-85 Real Property Tax Abatement for Great Lakes227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 November 9, 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 RE: Real Property Tax Abatement Petition for: GLC SBDC II, LLC Dear Council Member Ferlic: PHONE: 574/235 -9371 FAx:574/235 -9021 Please find the attached information pertaining to a real property tax abatement petition for GLC SBDC II, 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. The total cost for the construction is estimated at $7,700,000. The project meets the qualifications for a (9) nine year real property tax abatement. A representative from GLC SBDC II, LLC will be available to meet with the Committee on Monday, November 14, 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 Filed in Clerk's Office NOV 0 0 2016 KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES TIM CORCORAN PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: AARON KOBB Filed in Clerk's Office NOV 0 9 2016 KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: GLC SBDC II, LLC DATE: November 9, 2016 On Wednesday November 9, 2016, a petition from GLC SBDC II, LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at 23464 Adams Road, 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 ➢ Construction of a new approximately 210,000 sq. ft. spec commercialibulk distribution facility (and related paving/parking and other improvements) to serve and support the needs of commercial/distribution users considering South Bend as a business site ➢ $7,700,000 investment in new building construction ➢ Total project taxes during the nine year abatement period — $1,881,336 ➢ Estimated taxes being abated during the nine year abatement period — $733,663 ➢ Total taxes to be paid during the nine year abatement period — $1,147,673 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: ➢ Create (10) ten permanent full -time jobs within the first three years, representing an approximate new annual payroll of $374,400. 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 been granted previous abatements and were deemed to be in compliance. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project/ or a variance will be sought by the petitioner. 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 (9) nine -year real property tax abatement under section 2 -84.2, Real 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 23464 Adams Road, South Bend, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (9) NINE -YEAR REAL PROPERTY TAX ABATEMENT FOR GLC Portage Prairie, LLC WHEREAS, a petition for real 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 23464 Adams Road, South Bend, IN 46628 and which is more particularly described as: Beg 1505'E of Nw cor of Nw 1/4 thence E 1094' thence S 2640' Thence W 563' thence N 1430' thence 542' thence N 1196' to POB cont 48.30ac +/- Sec 17 -38 -2e 16/17 NP #7037 and 7038 11 -25 -2015 16/17 Split #9196 10 -30 -2015 15/16 Spli and which has Key Number 025 - 1009 -0146 be designated as an Economic Revitalization Area under the provisions of Indiana Code 6 -1.1 -12.1 et seq., and South Bend Municipal Code Sections 2 -76 et sea., and; WHEREAS, petitioner has agreed to and has accepted responsibility to report any changes in the final legal description and to report the final, appropriate Key Number to the Department of Community Investment and to the Office of the City Clerk; 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 sec l., 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 that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6 -1.1 -12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6 -1.1- 12.1 -3. SECTION III. The Common Council hereby determines and fords that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the 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 -3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of nine (9) years as shown by the attachment pursuant to Indiana Code 6- 1.1- 12.1 -17. 2 SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5 -3 -1 and Indiana Code § 6 -1.1- 12.1 -2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. 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 Council PRESENTEES NOT APPROM ADOPT'", Fled in Clerk's Office NOV 0 9 2016 KAREEMAH FOWLER CITY CLERK;, SOUTH RENO, IN RESOLUTION NO. A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 23464 Adams Road, South Bend, IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A MINE (9) YEAR REAL PROPERTY TAX ABATEMENT FOR GLC SBDC II, 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 23464 Adams Road, South Bend, IN 46628 and which is more particularly described as follows: Beg 1505' E of Nw cor of Nw 1/4 thence E 1094' thence S 2640' Thence W 563' thence N 1430' thence 542' thence N 1196' to POB cont 48.30ac +/- Sec 17 -38 -2e 16/17 NP #7037 and 7038 11 -25 -2015 16/17 Split #9196 10 -30 -2015 15/16 Spli and which has Key Number 025- 1009 -0146 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 confines its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for Real 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 a real property tax deduction for a period of (9) nine 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 LF iled in Clerk's Office NOV 0 9 2016 DR�SENTEf EEMAH FOWLER NOT APPROYID C LERK, 8Oi TH REND, IN Z W N rn V rn VMl O V' r a mr� min m t-w V n- z i- 2� N N Fin m m? N O M n r-: C( R �vrcowrn 101 om�o�oM� N .�szm m<o<om�om�<os`o_ �n O m N N N N N N N N N rn U � w W N 3 U Z y r r n 0 0 0 n n r r n n O W N N d M M M M M M M M M M x> � L N 0 0 0 CL 0 0 0 M W m F m m rn m m m l0 o 0 0 0 0 0 0 0 o m m N N N N N N N N N m ? x d L C r m m� rrrnrnrrr nnrrrnrrn N W �� I cim rn III II µ MP e® y� �-- y N C NN N (OD OMI (rD M 0 0 Z. " v Q °O n oo rn o <o T y x C H m m D d O 3 y N d � 9 �• j U i m a A d N N O N r N N r M UI� y m N rr �Y W.m y tNii N N y d� m� N .mom- U m n C m � r � Q c Q V W M O N N 0M O N A, o nmm ui cu e '00000 o in oin m tti N M o O O O O O o moo m m m w N lo to M N Flo Ot0 t0 o m 10 m r m o iri � M N O V o } Z n lr V M W O V C � m U N 0 0 0 0 a m O m m M w y N O O A N N r n m W in °c ti iz and v v ror vi U m ) w °' C7 0 4 co tO o o �0000 o morn m t 0 o 0 0 0 o m m m m NO °o O y NOO "Y r Nr r N N cq v m of m f`J M Mr r r n n m n 0 u v aS O c0000 o vm�n m t O N O N N c+mi nf0 M l° dF o 0 o m m�� rmi Z W N rn V rn VMl O V' r a mr� min m t-w V n- z i- 2� N N Fin m m? N O M n r-: C( R �vrcowrn 101 om�o�oM� N .�szm m<o<om�om�<os`o_ �n O m N N N N N N N N N rn U � w W N 3 U Z y r r n 0 0 0 n n r r n n O W N N d M M M M M M M M M M x> � L N 0 0 0 CL 0 0 0 M W m F m m rn m m m l0 o 0 0 0 0 0 0 0 o m m N N N N N N N N N m ? x d L C r m m� rrrnrnrrr nnrrrnrrn N W �� I cim rn III II µ MP e® y� E o 0 0 Z. " v Q °O n oo rn o <o T y x C H m m D d O 3 y N d � 9 �• j U i m a A d C U U d UI� �DjQN rr �Y W.m y tNii N N y d� m� N .mom- U m n C m y6 F m Q c Q V W M O N N 0M O N Z W N rn V rn VMl O V' r a mr� min m t-w V n- z i- 2� N N Fin m m? N O M n r-: C( R �vrcowrn 101 om�o�oM� N .�szm m<o<om�om�<os`o_ �n O m N N N N N N N N N rn U � w W N 3 U Z y r r n 0 0 0 n n r r n n O W N N d M M M M M M M M M M x> � L N 0 0 0 CL 0 0 0 M W m F m m rn m m m l0 o 0 0 0 0 0 0 0 o m m N N N N N N N N N m ? x d L C r m m� rrrnrnrrr nnrrrnrrn N W LLµ y� cim rn ® ®_W 4y CD J L O µ MP e® bd C:) L A V City of South Bend�,LT,r�� 4 Petition for Incentives Petition mast include x$250 flliftg fee poyabie to the Clay Clerk s office or online vid the "City`s website a; /aG9 http// southbenJ (n.gcy /gavemrnent /cronfeet /tux- c6aiemenibefore processing can be complete compam prokct anawnYthe Great Lakes Capital ( "GLC "), the sponsor /affilate of GLC 8BDC II, LLC, is.a real estate propOolsnetessaryfar "` development firm with experience in public- private development initiatives. The proposed economme%wt(i " project involves an investment of between $7.5 and $8.5 million in the property acquisition, development and construction of a new commercial distribution facility containging approximately 210,000 square foot (or more) together with related site improvements (paving /parking, etc.). The applicant is proposing to make this ihvestment to construct "spec space" which would be readily available to serve and support the needs of commercialldistrubiton users considering South Bend as a business site. This investment will also serve to continue to support the City's initiatives. to (a) have move -in ready options for prospective third -party businesses searching for commercial /distribution space in the City, and (b) support the overall ability to attract and retain businesses to the city, Filed in Cler C ertifiedTechaolojyParkapprapriate; N/A Is the project hi a Tax IneremeMal Bnandng" 0 Yes (Airport Economic Development Area) certifythatthe8u11dfii Permithaspritbeen NumbercfresldeMglunitsceatedby No permit issued e.F N!A (0) KARE If this Is a petition for personal property tax abstinent has N/A i CITY CLERK, SOl Irvestment Details - PAUcinfiastnicWreneeas'(Ofi' NasanyW4funaingbeen What lst hevalueafarryequipmpntb eingpuid,asedin WhstisthevalueofairyequlpmeKbeing slteofpibjettlndallirs) retehred� Indiana for the project? purchased fro out ofstate ("e- pr4act7 m N/A N/A N/A Office 16 BEND. IN you qualify for the points; 1 The undersigned owners) of,reaI pro erty located within the City of South Bend, herby petition the Common Council of the at y of South Bend for ,a real and% 5t, property taz abatement consideration and pursuant to I.0 6-1.1- 12.1 -1, et sea., and o' Beideal Code Sec. 2 -76 et sea., for this petition state the above. >: $ubintted t3y ? °/ Date. October 31, -2016 A EmployLotafcompanfes(75Yo) Yes 2 20 20 B A, Purchase Materials from Local Companies (75 %) Yes 33 20 20 Provide,Health Benefits C 34 Require Employees vs. Independent Contractors Yes ProvidePensiog8enefits 19 19, 29 D ProvldeTraining Require prepaiting Wage (paws Bacon) No 28 E. 22 No E. 15 Require Health Benefts Yes No 22 22' G. E: No ltequtre Pension" Benefits No 28: G. Ails `intainAffirinativeACtionPlan Yes 20 20 Workforce Related6 A. Create NewJObs Yes .42 42 B. Retain Existing Jobs Yes Soh -total Construction Related: 41 C. 101 141 The undersigned owners) of,reaI pro erty located within the City of South Bend, herby petition the Common Council of the at y of South Bend for ,a real and% 5t, property taz abatement consideration and pursuant to I.0 6-1.1- 12.1 -1, et sea., and o' Beideal Code Sec. 2 -76 et sea., for this petition state the above. >: $ubintted t3y ? °/ Date. October 31, -2016 2 WaAei Benefit Related towned'.. A, Pay Target Wage Levels ": Yes 33 33 B, Provide,Health Benefits Yes 34 34 C: ProvidePensiog8enefits Yes 29 29 D. ProvldeTraining Yes 28 28 E. ProvldeChild.Care No 15 F. Proylde7ransportationAssistance No 14 G. Proylde Employer Assisted Housing program No 9 Sub -total Wage t Benefit Related: 124 162 Workforce Related6 A. Create NewJObs Yes .42 42 B. Retain Existing Jobs Yes 41 41 C. Maintain Affirmative Action Ptan ` Yes 35 35 D. Provide Targeted Hiring Preference 34 Spb-,0 ai Wor. wrceRelated: 118 152 4 Sucooil a Munidoal Fadlit4: . A. Support'a SB Municipal Facility (donations to the zoo, conservatory, museum, etc.) 84 Name of Facility ` Sub (oiatMunidpal Facility: 84 Sub -total from Above: - 343 539 The undersigned owners) of,reaI pro erty located within the City of South Bend, herby petition the Common Council of the at y of South Bend for ,a real and% 5t, property taz abatement consideration and pursuant to I.0 6-1.1- 12.1 -1, et sea., and o' Beideal Code Sec. 2 -76 et sea., for this petition state the above. >: $ubintted t3y ? °/ Date. October 31, -2016 Filed in Clerk's Office STATEMENT OF BENEFITS REAL E8i -ATE IMPROVEMENTS NOV 0 q 2016 State Farm 51767 (R611 0,14) ■ • '� Prescribed by the Department of Local Government Fin L FOWLER KAREEMAH This statement is being completed for real'property that qualifies under Redevelopment or rehabilitation of real estate improvements (IC 6 -1 - ❑ Residentially distressed area (IC 6.1.1- 12.1 -4:1) 1NS7RtiC rinme 2Q.17 PAY 20 18. FORM 96-1 i Real Property PRIVACY NOTICE Ahy7riforrnatioii concerning the cost of tiie property:and specific salaries paid to irdividual employees by the Propeily own6i% is confidential per t; IM.1- 12.1 -5. i. 1. This statement must be submitted to the body designating the Economic RevitaliiationArea prior to the public hearing if the designaling body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area Otherwise, this statement must be submitted to the designating body BEFORE the redevelopment orrehabihiation of real property 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 initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3 To obtain a deduction, a Form 3221RE, must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is made or not later:than thirty (30) days after the assessment notice is mailed to the property owner if it tvas mailed after April 10. A property owner who tatted to tale a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year. 4: A. property owner who files for the deduction must provide the County Auditor and designating body with a Form CF- i/Real Property. The Form CF- 11Real Property should be attached to the Form 3221RE when the deduction Is first claimed and then updated annually for each year the deduction is applicable. 1C 6.1.1- 12.1 -51(b) 5. For; a Form SB- 1/Real Property that is approved after June 30, 20713, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB- 11Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. 1C 6- 1.1- 12.1 -17 SECTION •- • Name of taxpayer GLC SBDC Ij, LLC . Address of taxpayer (number and street city, state, and ZIP code) c/o Great Lakes Capital Management, LLC; 112 West Jefferson Blvd., Suite 200; South Bend; IN 46601 Name ofeantact person Telephone number E -mall address Jeff Smoke, Director of Development ( 574) 855 -5700 jsmoke @greatlakescapital.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT_ Name of designating body,Resolution number Cornnioh Council of City of South Bend. Location orproperiy - County DLGF fixing district number SW Corner of Adams Road and Mayflower, South Bend I 8t. Joseph 71 -003 Description of real property improvements, redevelopment, or rehabilitation (use additionalsheets ifnecessary.) Estimated start date (month, day, yea4 Proposed investment of at least $7,700,000 in the development and construction of a commercial distribution "spec" March, 2017 facility containing approximately 210,000 square feet (or more) Estimated completion date (month, day, year) Dec. 31, 2018 SECT10N 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Safades: NU M-tiw retained Salaries Nuniberaddilfonal Salaries 0,00 1$0.00 110.00 x$80,060.00 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values Plus estimated values of proposed project 7,700,000.00 Less values of any property being replaced Nei estimated values upon completion of project 7,700,000.00 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER .Estimated solid waste converted (pounds) EStirnated tlazardoUs waste :converted (pounds) Other benefits SECTION There cer j th/ the. representations in this statement are true: • signature f au o ze representative Date signed (month, day, year) October 31, 2016 Printed n representative Title Ryan C. Rans Managing Member of Manager Page 1 of 2 Page 1 of 1 http: // maps. macog. com IGeocortexlEssentialslEss4431 REST ITempFileslExport.png ?guid =... 11 /9/2016