HomeMy WebLinkAbout6A(2) Resolution No. 2646~~~~-__
RESOLUTION NO. ~ ~ ~ ~'
A RESOLUTION APPROVING AN APPLICATION FOR
PERSONAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6-1.1-12.1-2(1) provides that an application for property tax deduction may
not be approved when the property is located in an allocation area as defined in I.C. 36-7-14-39,
unless the Redevelopment Commission which designated that allocation area adopts a resolution
approving that application; and
WHEREAS, the South Bend Common Council has received a petition for (5) five years of
personal property tax abatement consideration from Patterson Logistics Services, Inc. for personal
property located at 7055 Cleveland Road in the Airport Economic Development Area, the legal
description of which is attached hereto, marked Exhibit "A" and incorporated herein; and
WHEREAS, this Commission declared the Airport Economic Development Area by
Resolution No. 919, adopted February 23, 1990, and in the same resolution declared the Airport
Economic Development Allocation Area, Allocation Area No. 1; and
WHEREAS, the property located at 7055 Cleveland Road is located within the Airport
Economic Development Allocation Area, Allocation Area No. 1.
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission
as follows:
1) The Commission finds that the application from Patterson Logistics Services, Inc. for (5)
five years of personal property tax abatement consideration for property located at 7055 Cleveland
Road in the Airport Economic Development Allocation Area, Allocation AreaNo. 1, should be and
is hereby approved.
2) That a copy of this resolution be forwarded to the. South Bend Common Council to
indicate the Commission's approval of the petition for personal property tax abatement for Patterson
Logistics Services, Inc. be
Approved this day of 2010, at the regularly scheduled meeting of the
South Bend Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
Lot numbered Two (2) as shown on the recorded plat of Kidder's Olive
Road Minor Subdivision, recorded April 17, 1998 as Document Number
9818752 in the Office of the Recorder of St. Joseph County, Indiana.
Tax Key Number: 71-03-19-300-003-000-009 or 025-1011-018601
Property Address: 7055 Cleveland Road, South Bend, IN
TAX ABATEMENT REPORT
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
PATTERSON LOGISTICS SERVICES, INC.
DATE: January 27, 2010
On January 27, 2010, a petition for real property tax abatement consideration for property located at 7055
Cleveland Road was filed with the City Clerk by Patterson Logistics Services, 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
Patterson Logistics Services, Inc. operates distribution facilities for the company's medical, dental and
veterinary divisions. The Petitioner is proposing to: (a) purchase an existing 208,000 square foot
warehouse/distribution center that is only partially occupied; (b) construct physical improvements
including mechanical and electrical upgrades plus 10,000 square feet of new office and supporting spaces
necessary to support planned operations; (c) install logistical equipment to set up the building as a
distribution center.
The logistical equipment to be purchased includes racking, conveying equipment, server equipment,
cabling and security equipment. The cost of the equipment is anticipated to be up to $9,000,000. Areal
property tax abatement application is being submitted as part of the total project for improvements to be
RE: Tax Abatement for Patterson Logistics Services, Inc.
January 27, 2010
Page 2
made to an existing building the Petitioner intends to purchase. The project's total cost is estimated at up
to $19,500,000 which includes purchase of the existing building. That building has an existing seven-
year real property tax abatement which the Petitioner intends to assume.
Total taxes to be abated during the (5) five-year abatement period for the equipment are estimated at
$391,446. Total additional taxes to be Qaid as a result of the project during the five-year abatement
period are estimated at $356,189 for the equipment.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create fifty (50) new, permanent full-time positions
with an annual payroll $1,040,000. The project will also maintain sixty (60) existing permanent full-time
positions, including 20 existing permanent full-time minority employees, with a total annual payroll of
$1,620,000.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the Petitioner, Patterson Logistics
Services, Inc., has not been granted or associated with any previous tax abatements. However, at this
time they are also petitioning for a real property tax abatement.
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
Airport Economic 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.
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