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Home My WebLink About5A(2) Resolution No. 2677-~~ ~ z~ RESOLUTION N0.2677 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 McCormick and Company, Inc. for personal 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 (5) five years of personal 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 personal property tax abatement for McCormick and Company, Incorporated. Approved this 9`~ day of July, 2010, at the regularly scheduled 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 SOLTI'H BEND STEPHEN J. LuECxE, MAYOR COMMUNITY $~L ECONOMIC DEVELOPMENT ,JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPOR T TO: SOUTH BEND REDE/V~ELOPMENT COMMISSION FROM: BOB MATHIA /~~" SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: MC CORMICK AND COMPANY, INC. DATE: July2, 2010 On July 2, 2010, a petition for personal 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 the company makes. The company's products include condiments (ketchup, mustard, salad dressing, etc.) for major restaurant chains. The company is weighing where to locate the proposed addition. Sites in Michigan, Illinois and other states where McCormick has manufacturing/distribution facilities are also being considered. The equipment to be purchased includes fork lifts, coolers, racking, computers, and furniture and fixtures. The estimated cost of the equipment is $875,173. The addition's construction is estimated to cost $5,010,913. Areal 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 & PROGRAM PAD'IELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574!235-9371 ELIZABETH 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 For the personal property portion of the project, total taxes to be abated during the (5) five-year abatement period are estimated at $6,471. Total additional taxes to be paid as a result of the project during the five-year abatement period are estimated at $66,230. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create five (5) new, permanent, full-time jobs within the first year of the project 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 real property tax abatement. Term/Type 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 meets the qualifications fora (5) five-year personal property tax abatement under section 2-84.2, Tangible Personal Property Tax Abatement. o o~ ~ ~Y V' M to o ~n ~ M n W O n MN ~ O~ W ~ N N . - M ~O D ~ h0 ~ } fO COONC~O N ~ d' tO On g M V0 ~ 4. CO M O? V M N N N ~ ~ o ~ o CC> O ~ ~ ~ N M O N N ~ ONO ~ N ONO ~ (6I ~ O n N ~ ~~I' ~ N 00M ~ ~ M OO n aD (A n Z I Cy O o O O d NO.-nn ' } OMn CO m ~ ~ d tt ~ On ~ ~ CO r CC) d' M (SU Ol1)v CA h M OD W n C O N ~' M N N N N N N N N r ~ c c M _M ~' Mn ~~ ~ O~M N o NIA O E n MM CO O f~ 00 ~ ~ WNOCO f~ W } N C O M C O t~ ~ O~~ON. 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