HomeMy WebLinkAbout6.B.(1) Resolution No. 2660~gc~)
(P G
RESOLUTION NO.
A RESOLUTION APPROVING AN APPLICATION FOR
REAL 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 up to six (6) years
of real property tax abatement consideration from BW Business Park, LLC on behalf of Olive
Cleveland Partners, LLC for real property identified as Lots No. 14 and 15 on Vorden Parkway
adjacent to3751 Olive 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 identified as Lots No. 14 and 15 on Vorden Parkway 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 BW Business Park, LLC on behalf of
Olive Cleveland Partners, LLC for up to six (6) years of real property tax abatement consideration
for property identified as Lots No. 14 and 15 on Vorden Parkway adjacent to3751 Olive Road in the
Airport Economic Development Allocation Area, Allocation Area No. 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 real property tax abatement for Olive
Cleveland Partners, LLC.
Approved this 5th day of March, 2010, at the regular meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: Lot 14 B W Business Park Major Sub 02-03 New Replat 401 3-16-2001
Lot 15 B W Business Park Major Sub 02-03 New Replat 401 3-16-2001
Tax Key No.: Lot 14-- 031-1036-0590.12
Lot 15-- 031-1036-0590.13
Address: Lots No. 14 and I S on Vorden Parkway adjacent to3751 Olive Road,
South Bend, Indiana
1200 COUNI-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 REDEVELOPMENT COMMISSION
FROM: BOB MATHIA '~~~
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
OLIVE CLEVELAND PARTNERS, LLC
DATE: February 19, 2010
On February 17, 2010, a petition for real property tax abatement consideration for property identified
as vacant Lots No. 14 and 15 on Vorden Parkway adjacent to 3751 Olive Road was filed with the
City Clerk by Olive Cleveland Partners, LLC. Pursuant to Chapter 2, Article 6, Section 2-82 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
Olive Cleveland Partners are in the process of purchasing vacant Lots No. 14 & 15 from the BW
Business Park, LLC. Olive Cleveland intends to construct awarehouse/distribution facility to
accommodate the relocation and expansion of an existing tenant, Invacare Corporation. The new
building will have a total of approximately 80,000 square feet, and will feature 32 feet clear height,
15 docks, grade level access and approximately 5,000 square feet of office space. The building will
incorporate energy efficient design elements including heating and lighting. The estimated cost of
the building is $2,400,000.
Invacare Corporation is a leading manufacture and designer in the worldwide home medical
equipment market. The company designs, manufactures and distributes an extensive line of health
care products for the non-acute care environment, including the home health care, retail and extended
care markets.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INK$ MANAGEMENT
574/235-9660 574/235-9371 EuzAeErH LEONARD
FAX: 574/235-9697 574/235-9371
RE: Tax Abatement for Olive Cleveland Partners, Inc.
February 19, 2010
Page 2
The Petitioner has just begun collecting information on potential suppliers and contractors for the
project. For this reason they were unable to answer the questions related to suppliers of construction
materials and construction contractors. They intend to submit this information prior to the Common
Council meeting to consider their confirming resolution. At that time final points will be awarded
and the length of the abatement term set. Based on current information, the Petitioner will score
sufficient points for athree-year term. The Petitioner has supplied information from a previous
project to be used for estimation purposes. If they score all of the points for construction they would
have enough for five years. For purposes of consideration of the Declaratory Resolution we are
estimating the term at six years to allow for any extra adjustment. Anything less will result in a
reduction in the amount of tax revenue abated.
Assuming asix-year abatement term is approved at the Confirming Resolution, the total taxes to be
abated during that term are estimated at $210,386. Total taxes to be paid during the six-year term are
estimated at $218,637. If the term remained at three years, total taxes to be abated are estimated at
$123,376. Total taxes to be paid over the three-year term are estimated at $91,136.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will not create any new, permanent full-time positions.
However, it will retain 23 existing permanent full-time positions, including 7 existing permanent
full-time minority employees, with a total annual payroll of $668,820.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been granted or
been associated with one (1) previous tax abatement.
Term/Tme Resolution No. Date
7-year real property 3840-08 3/10/2008
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 Area, which is a Tax Incremental Allocation Area; therefore, the
petition for real 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 for up to a six-year real property tax abatement under Section 2-79, Warehouse
Development in the City-wide District.
19-Feb-10
Olive Cleveland Partners, LLC
Public Benefit Points Summary
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Proiect Related:
1. A. Redevelop a Site that has Special Needs N 0 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan N 0 36
Sub-total Project Related: 0 120
2. Su4er Size Projects (point values are cumulative):
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% N 0 65
D. 400% and Over N 0 52
Sub-total Super Size Projects: 93 210
3. Construction Related:
A. Employ Local Companies N 0 20
B. Purchase Materials from Local Companies N 0 20
C. Require Employees vs. Independent Contracts N 0 19
D. Require Target Wage Levels N 0 22
E. Require Health Benefits N 0 22
F. Require Pension Benefits N 0 18
G. Maintain Affirmative Action Plan N 0 20
Sub-total Construction Related: 0 141
4. Waae 8 Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits N 0 29
D. Provide Training Y 28 28
E. Provide Child Care N 0 15
F. Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage 8 Benefit Related : 95 162
5. Workforce Related:
A. Create New Jobs N 0 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan Y 35 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 76 152
6. Pay for Municipal Infrastructure: (point values are cum ulative):
A. Pay for Oversizing or Upgrading N 0 14
B. Pay for 26-50% of Extension Cost N 0 26
C. Pay for 51-75% of Extension Cost N 0 39
D. Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7. Support a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 264 1000
' Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Olive Cleveland Partners, LLC
Additional Years of Abatement
Multi-family Development Proiects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Proiects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 1000 7
Subtotal from Points Summary: 264
Base Years of Abatement 3
Additional Years of Abatement:
Total Years of Abatement: 3
19-Feb-10
Olive Cleveland Partners, LLC
Public Benefit Points Sum mary "
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Project Related:
1. A. Redevelop a Site that has Special Needs N 0 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan N 0 36
Sub-total Project Related: 0 120
2. Super Size Projects (aoint values are cumulative):
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% t0 399% N 0 65
D. 400% and Over N 0 52
Sub-total Super Size Projects: 93 210
3. Construction Related:
A. Employ Local Companies Y 20 20
B. Purchase Materials from Local Companies Y 20 20
C. Require Employees vs. Independent Contracts Y 19 19
D. Require Target Wage Levels Y 22 22
E. Require Health Benefits Y 22 22
F. Require Pension Benefits Y 18 18
G. Maintain Affirmative Action Plan Y 20 20
Sub-total Construction Related: 141 141
4. Wa4e 8 Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits N 0 29
D. Provide Training Y 28 28
E. Provide Child Care N 0 15
F. Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage 8 Benefit Related: 95 162
5. Workforce Related:
A. Create New Jobs N 0 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan Y 35 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 76 152
6. Pav for Municipal Infrastructure: (point values are cumulative):
A. Pay for Oversizing or Upgrading N 0 14
B. Pay for 26-50% of Extension Cost N 0 26
C. Pay for 51-75% of Extension Cost N 0 39
D. Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7. Suaaort a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 405 1000
' Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Olive Cleveland Partners, LLC
Additional Years of Abatement
Multi-family Development Proiects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Proiects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 1000 7
Subtotal from Points Summary: 405
Base Years of Abatement 3
Additional Years of Abatement:
Total Years of Abatement: 5
O
r
.C
m
LL
r
Q
W
co
~IO O
M N O
~- O
O
N
o N O O O
O ~ ~ O
r O t0
O p M
~ N ~
~°°"oooc
° o ~ m °po
O
~ ~ ~?
0 O ~ O O
}
~
0
N O
N N
C2. ~ O
`_
U
= to M
°
p
O C °~
F-- ~ o ~
o
y
O
~
~ ~ O ~
~i N p
Q N
~ ~
~ Q CO
k ~
'
~ ~ ~
M ~ fX0 O
O
m ~ N f.-
a ~ °~
p ~ U 4
CY Al
3 ~
t0 O
>U
~ ~ U
~ ~
N ~O
.^
3 N ~'
Z t( ~
N C ~
~ ~ N
r U u1
c ~p O
N ~
M a
et
o a, o
N r`
M ~
~ M
o O O
M
N
d
d'
N M NI
M N N
c O O
M
d
d
N d?
r CO
O
p c~ I
N ~?
.- M
cD
O O
N
O
N ~'?
~ O
O ~
O O
ZF~-ml °~~
d
M ~
N N p N 'd'
r ~ coo
r
Q t`.. d r
.d ~ N C ~ d
I
~Z ~ ~~?~
E ots r e
r,, r- r
O ~
U
N
~X
W
" N d d
d N X ~
fff
Z ~C7 ~
~
4. ~ r
r- r-
~ ~l OC
X
N ~
~X
W
t.l r N M
l6
N
~"
0 o c`~a
O ~ O
f"
°
0 0
po p 0
O ~?
O ~
r frJ O
N
v
a~
N
N
N
~
C O N '=
t6 'd
f0
~
O
~°
~ "'
a~ "
3~ N 3 'O
X X ~ U
X~ ~ `-
C1 f6 V~
>~ ~ Q
N H~ ~~ U m N m
i
v
N "'
N y ~ d Q N
N ~ ~ r
."".i ~~ t4 y .t2
~ N N~ N o U R~ Z m U p U
QQ NpZ ~- N r U
C Q Q j N N V
~ N th
N
O N
~ f
.-
cU
Um~ Q ~
N
N
f0
> vi
x
a~
L
•., ,,,
L C
r~
N
~ U
Y
~ L
X ...
Nr
G
~ C
~~
O C
U p
N ''4
N ~
3 ~
7
ty0 y
~ N
~ N
t6 ~
_T
C
O Ry
m ~
N U
O ~
~ L
Q y
c L
of
m°
{
N ~
N ;
~.
o-
N
3
v
a>
U
N
y
L
V-
s
0 0 0 0 0 0 0 ~ N O N N
~ ~ 00 0 N O~ t0 OHO ~O
O 00 N M 00 h N l0 f~
} ~ ~ m ~ ~ ~ O ~
OM (O ~' O O
N
0 O
~~ y l 0 0 0 N ~ ~ O O O
M O O t0 R M ~ O N CO O
} V R ~ ~ ~ 0 O
O
O fO
M
~ (0 f
0
N
~ O O
O O O O N ~ O ~
~~ O O O M ~ r ~
N M
} ~ N N ~ d O p
O O O V ' ~ f0 (
N ~ ~
~ o MOOO O o O)O 0 OM M
~ ~ (O ~ O 7 t0 M (O (G N ~ ~
'~ } ~ M M
~ ~ V m M O O
~ ~ O M f0 V
C1 .= N ~
r
`/ ~
J ~ o N pOO O o tO O tl7 OCO (O
J ~ I
0 0 0 ~ ~ ~
w N N
'Q } ~
V O ~ r M ~
L (
7
O h
M
of O (p
;C k ~i
~ 3~
c 4
a ~ o 0 0~ o 0 0 0 o O O O O O O
~~ O O I M
~ N O O
N N N
m
` ~ ~
O
}
O O
(O _
(O
^
i.~ ~
~ N ~
M N V
w
•V
~
O N N
C
Q ~
~ .
' m y O
d ~ 3 °~ ~ c ooo o o Mrn v ov v
Q O ~ O N
E O
O O
O N
M M N
Nh O
tn O O
NM O
~
~ >
> i Ov ~ ~ ~ ~ f~ (O O I~
~ O y
~ O O V
' ~ O Q N N
O ~ O
~ O C E O O o O O O 0 0 0
m ~ ~ M
7 otS N
U a
p
ci Q
v
..
~
> U
~ U
E ~ O
O N a
Z N
c
0 0
~
Q ~
> ° O O
.
Y
~
~ O
~ 00 °
°
a
i o ~
n
X j ~ M O
=
F U W
l6
v
a~
y
a~
~
o ~ m v
a
~ _ ~
?
>>
'~ d
~ N
c U f0
U
fp
~ ~
O O V~
~ X X
~ X Y N N
~ ~ O vi F- " Y
m
~` ~ ~ v
m
N
y H~ c w
N N N N
r ~
.~.~ ~ x
X f0 U m y m
..+ (n ~.+
a
i ~ y E a °~ c w°•m E- Y'3 ~
y N N .0+ O O
~ ~ y ~ ~_ ~ ~_
~'
~ a s N ~z
a a
a~ m ~z
~ UOU
m
Q ~a
Q E ~
N U
W
~' O N N
t N N 7
fA N N
O 3
U N ~
<D m~ Q C~~ U
ZHa o~cno.~~n
~ O ~ O O
MaOtG
~ y ~mt0rON
F O c0 N OD ~ t0
~ ~~00Mmn
Q h ~[ ~ N r
~ R'7~~~et M
0 0 0 0 0 0 N
~Z ~ ~n~n~ninN~ o
O O)~ I~ r n r~ n N
U ~ v
!/J
W N
X N
N W .O-.
3 ~ v v v v v v M ~
Z ~ X ~~tc)i(i t0~ O ? X
O lU w «
a ~'
I~ n h r r r N ~
~ 1- N
N ~
« U
~p C
N
X .L,,
.~. y
~~ 0 0 0 0 0 0 O
. X C .L.,
41 (6 YO ~
'X ~
W O A
U C
aNi m
N
~ ~ N M~ In O N~
N ~ y
~ N ~ d
O ~ N
c
~ O ~
d ~
N O
O ~
a~
~ w
n ~
c a
o -o
m ~
E •`
V1
d
O 'OO
`~ a
m >,
v °=
N N
L
U :r
N 3
~ 3