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HomeMy WebLinkAboutConfirming Tax Abatement - 4701 Nimtz Parkway - Schafer Gear Works, INC.RE~~~UTION Passed by the Common Council of the City of South Bend, Indiana September 28, Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana September 29, Og Zo Approved and signed by me September 3 0 , 20 0 9 09 20 Yu~- c~ City Clerk RESOLUTION NO. ~ ~ cL ©~©5 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4701 NIMTZ PARKWAY TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR SCHAFER GEAR WORKS, INC. 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 Schafer Gear Works, Inc., South Bend, Indiana, and which is more particularly described as follows: A part of the Southeast Quarter (SE '/<) of Section 20 and part of the Southwest Quarter (SW '/4) of Section 21, Township 38 North, Range 2 East, situated in German Township, St. Joseph County, State of Indiana, and being more particularly described as follows: Lots numbered (10) ten and (11) eleven as shown on the recorded plat of the H.G. Baus Centre - Phase One, recorded March 16, 1995, as document number 9507104 in the Office of the Recorder of St. Joseph County, Indiana. and which has Tax Key Number 18-3042-1621, 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 (5) five 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 sec . 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 NOT APPROVED ADOPTE~Q ~_~~~ ~il~d nl ~4ert{'~ ~~~E~e AUG - 5 2009 ,iC§tN VOuRDE CITY CLERK, S0. BE_~N' _ 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONe574/235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY $L ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR August 6, 2009 Council Member Timothy Rouse, 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: SCHAFER GEAR WORKS, INCORPORATED Dear Council Member Rouse: 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 various kinds of metal working equipment to be located at 4701 Nimtz Parkway. The report contains the Department's findings relative to the above petition. The total cost for the equipment is estimated at $2,800,000. The project meets the qualifications fora (5) five-year personal properly tax abatement and a representative from Schafer Gear Works, Incorporated will be available to meet with the Committee on Monday, August 24, 2009. 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 235-5835. Sincerely, Bob Mathia Assistant Director, Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINA*NC.IA-L LC PROGRAM PAMELA C. MEYEA DONALD E. INKS * AGEMENT 574/235-9660 574/235-9371 ELtzaeErH LEONARD PAX: 574/235-9697 574!235-9371 1200 FAUN"I'Y-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PxoNE574/235-9371 Fax 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: SCHAFER GEAR WORKS, INCORPORATED DATE: August 6, 2009 On August 5, 2009, a petition for personal property tax abatement consideration for property located at 4701 Nimtz Parkway was filed with the City Clerk by Schafer Gear Works, Incorporated. 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 ,investigated the area, and makes the following report. PROJECT SUMMARY Schafer Gear Works manufactures gears and machined components to customer specifications. The company has received new business from three customers that require the purchase of new equipment. The equipment consists of three CNC lathes, one CNC hobbing machine, one CNC gear grinding machine, one CNC machining center, two deburring machines and one internal gear grinding attachment. The total estimated cost of the equipment is $2,800,000. Total taxes to be abated during the (5) five-year abatement period are estimated at $44,531. Total additional taxes to be paid as a result of the project during the five-year abatement period are estimated at $216,721. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SL PROGRAM PAAfELA C. MEYER DONALD E. INKS MANAGEMENT 5741235-9660 574/235-9371 ELlzaserff LEONARD FAX: 574/235-9697 574/235-9371 South Bend Common Council RE: Tax Abatement for Schafer Gear Works Incorporated August 6, 2009 Page 2 EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create eight (8) new, permanent full-time positions with an annual payroll $249,600. The project will also maintain sixty-seven (67) existing permanent full- time positions with a total annual payroll of $2,852,281. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has been granted or been associated with nine (9) previous tax abatements. Term/Type Resolution No. Date 5-year personal property 3710-07 2/26/2007 5-year personal property 3055-02 1/14/2002 10-year real property 2636-98 6/30/1998 5-year personal property 2541-98 1/12/1998 5-year personal property 2285-95 10/09/1995 10-year real property 2148-94 6/27/1994 5-year personal property 2055-93 7/12/1993 5-year personal property 1876-91 6/10/1991 5-year personal property 1631-88 7/25/1988 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 Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. 4. 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. 5 YEAR SCRAPER GEAR WORKS, INC. South Bend German Township Personal Property Tax Abatement Schedule* Tax Key Number Current Assessed Value: Estimated Project Cost: 018-3042-1621 3,521,070 2,800,000 6-Aug-09 40% 60% 63% 54% 46% Current 100% 80% 60% 40% 20% Assessed Value: AV & Tax Year 1 Year 2 Year 3 Year 4 Year 5 Current Assessed Value 100% 3,521,070 3,521,070 3,521,070 3,521,070 3,521,070 3,521,070 Base Assessed Value 1,120,000 1,680,000 1,764,000 1,512,000 1,288,000 Less Abatement Deduction (1,120,000) (1,344,000) (1,058,400) (604,800) (257,600) Net Assessed Value 3,521,070 3,521,070 3,857,070 4,226,670 4,428,270 4,551,470 Proaerty Taxes: Assume constant tax rate of 4.2815% 4.2815% 4.2815% 4.2815% 4.2815% 4.2815% Gross Tax (tax rate x net assessed value) Less Circuit Breaker Credit Net Tax Circuit Breaker Cap Circuit Breaker Debt Service Circuit Braker Cap 150,755 150,755 165,140 180,965 189,596 194,871 (25,838) 0 0 0 (14,351) (25,671) 124,917 150,755 165,140 180,965 175,246 169,201 3.0000% 105,632 139,232 156,032 158,552 150,992 144,272 0.5477% 19,285 19,285 21,125 23,149 24,254 24,928 124,917 158,517 177,157 181, 702 175,246 169,201 New Combined Net Existing Project Existing & New Tax Tax Year Taxes Taxes Taxes Abated Paid 1 124,917 39,734 164,651 13,897 150,755 2 124,917 59,601 184,518 19,378 165,140 3 124,917 62,581 187,498 6,534 180,965 4 124,917 53,641 178,558 3,312 175,246 5 124,917 45,694 170,611 1,411 169,201 Totals 624,585 261,253 885,838 44,531 841,306 *This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately 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 owners} 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, etet seq•, and South Bend Municipal Code Section 2-84.2, et. seq_ for this petition states the following: 1. Describe the proposed project, including information about the new manufacturing equipment personal property ("equipment") 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. _C[_NAFFtP l~FA11 RECENTLY 2Er t/VE--~ NEW RtLS/NL-SSLONTRAGTS F2CM TH2rr Gil-STOIKERS Tl'll1T ~OL!!.QE TIi£ D~~_2~.NASE Af NYL/E,~LiDM ~yT ; HE ~(Jct,/PME'NT GONE/5i ~ 0 F 'rHI~.EE C_~tC_ LATIfES aNEG1~LHaBB/NC. MAGNINc nn/E GnrG GC/~2 (r~'rl~t~~r~(r MAGN//,r~, nNE GNc MAc HININCr cEl1TE2 ~Wo DEBGr2RlNGMAcLNE'~ AND ONC LNTE~I'Nt4 L /sEA2 (r21N1~11~~~TrAG1.1MENT_ THE ABoy£ NE,,d /3u,S/NE CS w/L~ ADD APPRcX~M/}?~`_-~__Y~6~~on ~~o f~f 2Ev~NU.~ 2. The project will create .~ new, permanent jobs within the first. year, representing anew annual payroll of $ a ~ 9 66 0~- and will maintain ~_ existing permanent full-time and o existing part-time jobs representing an annual payroll of $ The projected annual salaries for each new position created are estimate to be as follows: ~ 3/ a.on 3. Estimate the total cost of the Equipment:_~ n~ n o ~ 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): NAME ADDRESS INTEREST S~HAFE2 <~AQ X70/ N/HT? P/~QKwRY uJc2 kS TNG _ Seu.TN ~.t n ruD/ANA y6<,o2$ /On g,~o 1 J f (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 Idol A PPLIc A gLt= 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: MAId~FAc TU.2iNG F FR2S (~,(~ M/3c 1~7NE1~ r eMPaNEI~tTS ' Tn GU.SToMF2~P'L'G/F/GRTlnlJS~ 6. The commonly known address of the property where the Equipment is to be located iS: ~I7ol IVIMr2 PA>Zk.wAY SnwTN BE/~.D ?kl~rAN/a ~fEtiaS 7. The Key Number of said property is: I8 3n'f ~ l6 a 8. Attach the legal description of the property where the equipment is to be located, marked "Exhibit A," and is hereby incorporated herein. 9. Attach a map and/or plat describing the property where the equipment is to be located, marked "Exhibit B," and is hereby incorporated herein. 10. Attach photographs of the property, taken within 30 days of filing of this petition, marked "Exhibit C," and hereby incorporated herein. 11. The current assessed valuation of the tangible personal property to be replaced by the new manufacturing equipment is $ O (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 GSA 2 MRNu,FAGTtc..21NG oP~ 2Ari©his and the current zoning is ~_ (use) and ~.i (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 ~ n4 _ ®._ _~~_ a~~ ~ fa.~ Sg /~ ao l63 g yam. 7~,~ .~.nn f a? C1~~1. /(a ~g/ R9 /~n~~ 1 (This information may be obtained from the St. Joseph County Treasurers office 235-9531) 14.. Describe the commitment made- within the past f ve 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) . ~[~^ ~ M1 N~2 I rIES 1=M P[..O~E11 TaTF}L. EFiPLdYFE S cwn~~-~r #N1Nc><~riFs ~,oc+ ~ ( 6 ^r 6 2 c+n A F R 7 aoa ? /~ 7A Inn ! l,~ ~ O ~,,,, s 11 7/ 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. /~loN~ 16. What is your best estimate of the market value of the new Equipment after installation? $~$~n nom 17. What is your best estimate of the amount of taxes to be abated during each of the five years after installation? $ 18. What is the commitment your firm will make to minority employment during the five years of tax abatement? (Revised 8/2/02) r /1S Po~ITlDf~S L'~c~~ME RV/iILABL€ S~Hl~FE2 ~E~}R wa21~ rN~ td/LL h{I~'E Qc_ RL/FIEF ~NL>IV)Dlt.i3LS WIT!-~nK.T /ZE'G/~~I~ Tn -~GEr RceD o2 L_oLhlZ„ 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: ~Sr?6 - SP~E~ GHANC~cIZS ~NDlc.sTr21AL.. F~IGi-~-sPE~'l~ b j2~VES A~I/~(Eh}125, 21. The Internal Revenue Service Code of Principal Business Activity by .which the proposed project would be classified, by number and description: 2 S"(~ '~P~ED CNANlTC2S tNi~t St'2IAL ffICN~P~E/~ ~QIVCS AuD GARS 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: R12P~2T ~GtSNOIdIL DEVELOPMEN r l~,eEA 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. /Von~~ 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: (Revised 8/2/02) 4 NEW Eoe.lPMENT FoR !JE'~/ GK.~rOME2_L~~6QAMS, 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. - _ 26. The.following person(s) should be contacted as Petitioner's agent regarding additional -information and public hearing notifications: Name: STAN Q~t H k~ _ Address: City, State, Zip Code: Sn~TH /3EN D 2NDiAN ~ ~~~a8 Telephone: s~y~-a3~~~li~ r~r,~l_~} 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): Sc,~lAFF2 C~f}R wo2k5 ,~l~1~~. By: r ~ ~~1 (Signed Name) (Typed or printed name and capacity of signor if signed by an agent or representative of the o '- Fii~d 1~ ~1~cZz'~ (3fiice AUG - 5 2009 (Revised 8/2/02) 5 dQNN v50. BE'B, IN. C~'i'`r CLW~~K, E<~IT A LEGAL DESCRIPTION OF REAL PROPERTY Apart of the Southeast Quarter (SE '/<) of Section 20 and part of the Southwest Quarter (SW '/<) of Section 21, Township 38 North, Range 2 East, situate in German Township, St. Joseph County, Sate of Indiana, and being more particulazly described as follows: Lots numbered ten (10) and eleven (11) as shown on the recorded plat of H.G. Baus Centre -Phase One, recorded March 16, 1995 as document Number 9507104. in the Office of the Recorder of St. Joseph County, Indiana. ~~fe~~: ~ Q- ~ ~ ~~ ___--- A~ ~ - 5 2009 acl~al vo~~o~ -, CITY CLSitin, S'J. Bc1l'~, IN. INDIANA EAST - WEST TOLL ROAD THE STATE OF INOIAFlA t: ~ (VOL. 587 PC.486) NW COR OF SE 1/# NE COR OF KEST 12D l,CRES SEC. 2D TJetl R2E _ _ OF SF 1/# ~C. TO T3BN R2E _ _ R W IRQ'! PIPE FOUND IRON PIPE FOUND S 89'17'15 E 19T3.~9' S 89'47'15' E 6J~.77' I ~i 62.51' NORIN UNE SE 1/4 SECTION 20 "~1 ~ ~ . ~ ) --' C~ G i~~ ` _ J7 , ~'~ ',' ' ' I ""~ ~ L~ ~t? 1 ~ tS1 ~:a~ . o N '." D o J c ~ Z A • m "h 0 0 cn cn ~ ''~ ~ GEi,1P1i1C SCALE r. r w O (d raI 1 ~ ~ ter. ~ Jto n ~ ~ ~ o LEGEND ~ f • IRON PIPE SET H1TH ~ CAP STA4PED MkB 1J .~ po D o IRON PIFE FOUND u m a CORNER STC+~C FOUND ~ N O lV LaT Iz H. G. DADS CF}JTRE, PHASE ONE (DOC N0, 95071D4) D Y h N ~'^\~ 1 c ry0 i w / 1 /~ ~•h` \ ~ \ ~. N n N NW COR SW 1/4 SEC 21, T38ti ft2E CENTER OF SEC 21, T38N R2E IRON PIPE FOUND CORItER STOtiE FOllil0 -~ brush urea ~ ~ 398.44 H 892312' E 2615.16' ~~ ' ~ 20' BUSLWIG LItiE NORTH UNE SW 1/1 SECTION 21 N ~ ` ~O, O, a, G \ N°'. LOT 10 ~ ~~ °~ ~ 337,998 S0. FT. ~ 7.76 AC. (. 'm ~ P.1 1~ 1 1 ~ s0b°, 70' ~ ~. D~, \\ F\ ~C~ \ ?per ` ~ NF \ \ l0 /~ \ \ \ \ ° r LOT 11 N ~ ~ w 321.605 SO. FT. S \~ \ ~ + 7.38 AC. ~ R~rr ~°Dp ~~ \ ~ ~ ~ f \ ~ p), Q ~,I,r °~' ~,ti 7 p ~' ~ fi}A ~ w '~ V o ro~ ~• b°~ 3 r n w r 0 Z J ~ r \\~, p,, ~ / "C \ p.9z0 N/,~`r AO99ys, 9Z, ~4~a,- I '~Jrgr2j~ ~~R ~ 3 r o~ z SE COR OF Y,EST 120 AIRES DF OF SE 1/I SEC 20 T38N R2E J/4" GEAR F0Ut1D FLUSN / N 69'36'11 W 637.47' 1, \ J6 T P •+3 ~9 ~~ z SE COR SEC 20 T3Btt R2E 3f4" CEAR FOUND FLUSH t! 69'22'48' E EgSE'h'7FNIyq r 0~3 0~ \ ~a~~, fq~TT,~ 7 J,~ 0 f l t F 1 f 1 L t / ~- (91ADET) hREA) F `'t' TURN AROUND ~ EASEMEN T DOC. N0. 95071 1 ~ C C C WTERIlA710NAL WGl15TRIAL ~ CENTRE, INC. F (DOC.lIO. 7a1B35z) ~ L a f f \~ ~~~~ n SE OOR SW 1/1`~ n C~ SEC 21 T3BN R2E IRgV PIPE FOUND 265D.96J EXHIBIT B c XltiBj~ ~ ~_; ~4 Fite tit ~~'~~`'~" ~ ~dG~ AU ~ - 5 2009 ~~d iii Y4{J~1lL CITY Cl.Ef3~, ~~. ~"~'~~,.--~-