HomeMy WebLinkAbout5A(1) Resolution No. 2676~~ ~ ~~
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RESOLUTION NO. 2676
A RESOLUTION APPROVING AN APPLICATION FOR
REAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6-l .1-12.1-2(1) provides that an application for propertytax 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 nine (9) years
of real property tax abatement consideration from McCormick and Company, Inc. for real property
located at 3425 West Lathrop Drive 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 3425 West Lathrop Drive 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 McCormick and Company, Inc. for up to
nine (9) years of real property tax abatement consideration for property located at 3425 West Lathrop
Drive 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 McCormick
and Company Incorporated.
Approved this 9~' day of July, 2010, at the regular meeting of the South Bend Redevelopment
Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: 8.44 AC Tract
Mid PT S Side SE % Beg 990 ft. W & 40 ft. N of SE Cor SE SEC 28-38-2E
Tax Key No.: 025-1010-0403.01
Address: 3425 West Lathrop Drive
South Bend, Indiana
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LuECxE, MAYOR
COMMUNITY $Z ECONOMIC .DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA ~I ~'
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
MC CORMICK AND COMPANY, INC.
DATE: July 2, 2010
On July 2, 2010, a petition for real property tax abatement consideration for property located at 3425
West Lathrop Drive was filed with the City Clerk by McCormick and Company, Incorporated.
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
McCormick and Company is proposing to construct and equip an approximate 50,000 square foot
addition to their manufacturing facility. The addition will house a distribution operation for the
products it makes. Its products include condiments (ketchup, mustard, salad dressing, etc.) for major
restaurant chains. The company is weighing where to locate this distribution operation. Sites in
Michigan, Illinois and other states where McCormick has manufacturing/distribution facilities are
also being considered. Construction of the addition is estimated to cost $5,010,913.
The equipment to be purchased includes fork lifts, coolers, racking, computers, and furniture and
fixtures. The estimated cost of the equipment is $875,173. A personal property tax abatement
application is being submitted as part of the total project. The total project cost is estimated to be
$5,886,086.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL A' PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574!235-9371 ELCZesErH LEONARD
Fax: 574/235-9697 574/235-9371
South Bend Redevelopment Commission
RE: Tax Abatement for McCormick and Company, Inc.
July 2, 2010
Page 2
The Petitioner is in the early stages of its decision making process. Therefore, it does not have a firm
list of construction contractors. Based on current information it is estimated that the applicant will
qualify for asix-year abatement term. The length of this term could increase depending on the final
selection of the contractors. However, it is not expected to exceed nine years.
For the realproperty portion of the project, total taxes to be abated during asix-year abatement
period are estimated at $509,442. Total additional taxes to be aid as a result of the project during
the six-year abatement period are estimated at $544,383. Total taxes to be abated during anine-year
abatement period are estimated at $713,262. Total additional taxes to be >~ as a result- of the
project during the nine-year abatement period are estimated at $867,476.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create five (5) new, permanent, full-time
j obs within the first year of the prof ect representing a new annual payroll of approximately $177,247.
The project will retain one hundred twenty-three (123) existing permanent, full-time jobs (of which
30 are minority employees) with an annual payroll of $6,288,998.
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 as shown below. In addition, at this time
the firm is also petitioning for a personal property tax abatement.
Term/Tune .Resolution No.
5-year personal property 3598-06
Date
6/12/2006
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 real property tax abatement 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 does meet the
qualifications for up to anine-year (9) real property tax abatement under Section 2-82, Industrial
Development, City-wide General Standards.
2-Jul-10
McCormick and Company, Inc.
Public Benefit Points Summary
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 Elemenfof a Plan N 0 36
Sub-total Project Related: 0 120
2. Super Size Proiects (aoint values are cumulative)•
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% Y 65 65
D. 400% and Over Y 52 52
Sub-total Super Size Projects: 210 210
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. Wape & Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits Y 29 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 p g
Sub-total Wage 8~ Benefit Related: 124 162
5. Workforce Related:
A. Create New Jobs Y 42 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: 118 152
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. Suoaort a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 452 1000
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
McCormick and Company, Inc.
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 Projects:
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: 452
Base Years of Abatement 3
Additional Years of Abatement:
Total Years of Abatement: g
2-Jul-10
McCormick and Company, Inc.
Public Benefit Points Sum mary
Public Benefit Item: Qualify
Y or N Earned
Points Available
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 Proiects (point values are cumulativel•
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% Y 65 65
D. 400% and Over Y 52 52
Sub-total Super Size Projects: 210 210
3. Construction Related:
A. Employ Local Companies Y 20 20
B. Purchase Materials from Locaf Companies Y 20 20
C. Require Employees vs. Independent Cdntract< 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. Waoe & Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits Y 29 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 g
Sub-total Wage 8 Benefit Related: 124 162
5. Workforce Related:
A. Create New Jobs Y 42 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: 118 152
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 Faciliri•
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 593 1000
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
McCormick and Company, Inc.
Additional Years of Abatement
Multi-family Development Proiects•
From To Additional Years
0 141 p
142 183 4
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: 593
Base Years of Abatement 3
Additional Years of Abatement: 6
Total Years of Abatement: g
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