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HomeMy WebLinkAboutConfirming Tax Abatement - Lots No. 14&15 on Vorden Parkway Adjacent to Olive Road, Olive Cleveland Partners,LLC- (5yrs) Real Passed 7-12-10ICES®LUTlON 4036-10 Passed by the Common Council of the City of South Bend, Indiana Juiy 1z, Attes~ City Clerk dent of Common Council Presented by me to the Mayor of the City of South Bend, Indiana July 13, 20 10 Approved and signed by me July 13, ~~~~ ~~~ 10 20 20 10 City Clerk ~- RESOLUTION NO. ~`~ 3 ~ ~ ~ ~ A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS LOTS NO. 14 & 15 ON VORDEN PARKWAY ADJACENT TO 3751 OLIVE ROAD AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR REAL PROPERTY TAX ABATEMENT FOR OLIVE CLEVELAND PARTNERS, LLC 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 Lots No. 14 & 15 on Vorden Parkway adjacent to 3751 Olive Road, South Bend, Indiana, and which is more particularly described as follows: Lots 14 & 15 B W Business Park Major Sub 02-03 New Replat 401 3-16-2001 and which has Key Numbers 031-1036-0590.12 (Lot No.14) and 031-1036-0590.13 (Lot No.15), be designated 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 Real 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 Real property tax deduction for a period of five (5) years, and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. 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. I ~, Member of the Comrrion Council ~-lL-~~ PRESENTL•D NOT APP'~O`+'~' ADO?T~~ ',. ~ ~l L~l~ Fi1r~ !n ~!~~l~'~ E~fific~ JUN 2. ? 2010 JQNi. UC~(?R(?E CITY CLE,ti~C, Vin. E£~i1, !N. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 10-33 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS W1TH1N THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS LOTS NO. 14 & 15 ON VORDEN PARKWAY ADJACENT TO 3751 OLIVE ROAD AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR REAL PROPERTY TAX ABATEMENT FOR OLIVE CLEVELAND PARTNERS, LLC Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Ann Puzzello Chairperson, Committee of the Whole 1200 ~.OLJNTY-Cli'Y BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDGINA 46601-1830 PHONE 574/ 235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY SL ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR February 19, 2010 Council Member Timothy Rouse, Chairperson Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Commercial Real Property Tax Abatement Petition for: OLIVE CLEVELAND PARTNERS, LLC Dear Council Member Rouse: Please find attached the Department of Community & Economic Development's report on a commercial real property tax abatement petition from the above-referenced Petitioner for property they intend to purchase that is identified as vacant Lots No. 14 and 15 on Vorden Parkway adjacent to 3751 Olive Road. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The report contains the Department's findings relative to the above petition. The Petitioner, Olive Cleveland Partners, LLC, Inc., proposes to construct an 80,000 square foot warehouse/distribution facility for one of the Petitioner's existing tenants. A representative of the Petitioner will be available to meet with the Committee on Monday, March 8, 2010. 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 FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574!235-9660 574/235-9371 ELlznssrx LeoNAxD FAx: 574/235-9697 574/235-9371 1200 COIJNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUFH BEND, INDIANA 46601-1830 PHONE 574/ 235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~ ECONOMIC DEVELOPMENT JEFFREY V GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL 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 carrymarkets. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELtznaerH 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/Type 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.