HomeMy WebLinkAboutConfirming Tax Abatement - 2722 W Tucker Dr. (5yr.pp) Steel Warehouse Co.RES®LUTION
4055-10
Passed by the Common Council of the City of South Bend, Indiana
October 11, 10
zo
Attest
City Clerk
L~
Ident of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
October 12,
zo 10
Approved and signed by me October 13, 20 10
City Clerk
RESOLUTION NO. ~-a s S- ~~
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
2722 W TUCKER DRIVE
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
STEEL WAREHOUSE COMPANY, LLC AND AFFILIATES AND
EQUIPMENT LESSORS (2722 W TUCKER DR. )
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
2722 West Tucker Drive, South Bend, Indiana, and which is more particularly described
as follows:
The following parcels of Real Estate all located in St. Joseph County, Indiana:
A part of the South % of the Northwest'/4 of Section 15, Township 37 North, Range 2
East in the City of South Bend, St. Joseph County, Indiana, described as follows:
Beginning at a point on the East line of the Southwest'/4 of the Northwest'/4 of said
Section 15, 580.64 feet South of the Northeast corner of said Southwest'/4 of the
Northwest'/4, said point being 172.0 feet North of the North right of way line of the
Indiana Northern Railway Company; thence Westerly parallel with said North right-of-
way line 565 feet to the Southwest corner of a tract of land conveyed to Stanley
Enterprise, Inc. By a deed recorded October 16, 1993 in Deed Record 777, page 226;
thence North along the West line of said Stanley Enterprises, inc. tract, said line being
parallel with the East line of said Southwest'/4 of the Northwest'/4, 323.0 feet to the
South line of Tucker Drive; thence West along the South line of Tucker Drive 215.93
feet; thence South parallel with said East line of the Southwest'/4 of the Northwest'/4,
495.90 feet to the North right-of--way line of the Indiana Northern Railway Company;
thence Easterly along said North right-of--way line, 860.23 feet to the West edge of Steel
Warehouse Co. Inc. building; thence North along said West edge of building, 172.0 feet;
thence Westerly parallel with the North right-of--way line of the Indiana Northern
Railway Company, 79.3 feet to the point of beginning, containing 5.0 acres, more or
less..
Apart of the Southwest Quarter of the Northwest Quarter of Section 15, Township 37
North, Range 2 East in the City of South Bend, Indiana, more particularly described as
follows:
Beginning at a point 260 feet South and 25 feet West of the Northeast corner of said
Southwest Quarter of the Northwest Quarter; thence West 540 feet; thence South parallel
with the East line of said Southwest Quarter of the Northwest Quarter, 324.25 feet to a
point 172 feet North of the North line of the right-of--way of the Indiana Northern
Railway Company; thence East parallel with said North line of said right-of--way, 540
feet; thence North parallel with the East line of said Southwest Quarter of the Northwest
Quarter, 320.75 feet to the place of beginning.
A tract of land in the West Half (1/2) of the Northwest Quarter (1/4) of Section Fifteen
(15), Township Thirty-seven (37) North, Range Two (2) East, now within and a part of
the City of South Bend, St. Joseph County, Indiana, more particularly described as
follows:
Beginning at the center of the Northwest Quarter (1/4) of said Section Fifteen(15); thence
South along the North and South center line of said Quarter Section Two Hundred
Twenty (220) feet to the North line of Tucker Drive; thence West along said North line
to the West line of said Section Fifteen (15); thence North along said West line One
Hundred Twenty-eight and One Tenth (128.1) feet, more or less, to a line Two Hundred
Fifty (250) feet by rectangular measurement Southeasterly from said original centerline
of the New York Central Railroad right-of--way; thence Northeasterly parallel to the Two
Hundred Fifty (250) feet by rectangular measurement Southeasterly from said original
centerline of the New York Central Railroad right-of--way, Seven Hundred Twenty-seven
and One One-Hundredth (727.01) feet, more or less, to a point on the East line of the
Southwest Quarter (1/4) of the Northwest quarter (1/4) of the Northwest Quarter (1/4) of
Section Fifteen (15); thence Southerly along said East line One Hundred Ninety-nine and
Eighty-six Hundredths (199.86) feet, more or less, to the South line of the Northwest
Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15); thence East along
said South line Six Hundred Sixty-three and fifty-two hundredths (663.52) feet, more or
less, to the place of beginning, excepting Thirty (30) feet off the East side thereof for
purposes of a public highway.
A lot or parcel of land situated in the Northwest quarter of Section 15, Township 37
North, Range 2 East, now within and a part of the City of south Bend, bounded by a line
running as follows, to -wit: Beginning at a point on the North line of the Southeast
Quarter of the Northwest Quarter of said Section 15,600 feet West of the Northeast
corner of the Southeast Quarter of the Northwest Quarter of said Section 15; thence
running West along said North line a distance 725.8 feet to the Northwest corner of said
Southeast Quarter of said Northwest Quarter; thence South a distance 220 feet, more or
less, to the North line of a 40 foot road known as Tucker Drive; thence East along the
North line of said roadway to a point due South of the place of beginning; thence North
to the place of beginning. Together with and subject to an easement over the 40 foot
roadway lying immediately South of the above described real estate known as Tucker
Drive, and extending Eastward to Olive Street.
Part of the Southeast Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15),
Township Thirty-seven (37) North, Range Two (2) East, now within and a part of the
City of South Bend, described as beginning at a point 260 feet South of the Northwest
corner of the Southeast Quarter (1/4) of the Northwest Quarter (1/4) of said Section
fifteen (15); thence South 492.9 feet to the North line of the right-of--way of the Indiana
Northern Railroad; thence East along the said North line of the right-of--way of the
Indiana Northern Railroad 305 feet; thence North 492.9 feet; thence West 305 feet to the
place of beginning.
Together with aright-of--way over a 40 foot roadway North of and adjoining the
aforedescribed tract, and continuing Easterly to Olive Street, which said 40 foot roadway
is now commonly known as Tucker Drive in said City of South Bend.
The East Half of the South East Quarter of the North East Quarter of Section No. 16,
Township No. 37 North, Range No. 2 East, containing 20 acres, more or less, and being
Lot No. 16 in the Sub-division of said Section No. 16, and now within a part of the City
of South Bend, excepting there from the following:
The original right-of--way across, the North West corner heretofore conveyed by Joseph
B. Arnold, to the Indiana Illinois, and Iowa Railway Company by Warranty Deed dated
August 21, 1894 and recorded in Deed Record 95, page 553, of the records of St. Joseph
County, Indiana; and excepting second the following: Beginning at a point on the West
line of said Lot Numbered 16, where the same is intersected by the South Easterly line of
said original right-of--way, thence running South on the west line of Lot Numbered 16,
219 feet, more or less, to a point distance 250 feet by rectangular measurement from the
original center line of said right-of--way; thence North Easterly parallel with and 205 feet
distant by rectangular measurement from the original center line of said right-of--way a
distance of 733.3 feet, more or less, to a point on the East line of said Section No. 16,
thence North on said East line, a distance of 105.5 feet, more or less, to the North East
corner of said Lot No. 16; thence West along the North line of said Lot No. 16, thence
North on said East line, a distance of 105.5 feet, more or less, to the North East corner of
said Lot No 16; thence West along the North line of said Lot No. 16, a distance 254.5
feet, more or less, to the intersection with the said Easterly line of said original right-of-
way; thence South Westerly with said Easterly line a distance 454.5 feet, more or less, to
the place of beginning, containing 3.04 acres, more or less; excepting third, all that part
of said lot no. 16 which lies South of the North line of the right-of--way of the St. Joseph,
South Bend and Southern Railroad Company, excepting fourth, a strip of land 70 feet
wide North and South lying next north of and adjoining the right-of--way of the St.
Joseph, South Bend and Southern Railroad Company; excepting further that a strip of 40
feet in width, North and South, and being a extension of Tucker Drive, shall be
established through the Northerly part of said tract and dedicated to the public as a
highway, which said extension shall extend to the right-of--way of the New York Central
Railroad Company.
All that part of the Southwest Quarter of the Northwest Quarter of Section 15, Township
37 North, Range 2 East, described as follows: Beginning at a point 260 feet South and
330 feet West of the Northeast corner of the said Southwest Quarter of the Northwest
Quarter; thence West 996.08 feet to the West line of said section; thence South 498.35
feet to the North line of the right-of--way of the Indiana Northern Railway Company;
thence Easterly along the said Northerly line of said Indiana Northern Railway Company
a distance of 996.08 feet, more or less, to a point on the Northerly line of the said Indiana
Northern Railway Company South of the place of beginning; thence North to the place of
beginning.
Beginning in the center line of Olive Street in said City at a point Seven Hundred
Eighteen and twenty-five hundredths (718.25) feet South of the North line of said Section
No. 15, said point of beginning being on the Southerly line of a strip of land fifty(50)
feet wide reserved for the right of way of the Indiana Northern Railroad Company thence
running South on the center line of Olive Street, a distance of Six Hundred Eight and
fifteen-hundredths (608.15) feet to the South east corner of said North East quarter of the
North West quarter of Section No. 15; thence running West on said South line, a distance
of Thirteen Hundred twenty-seven (1327) feet to the West line of said quarter Section,
thence North on said West line, a distance of Four Hundred Ninety-three and four
hundredths (493.04) feet to the Southerly line of said parcel deeded by said Grantors to
the New York Central Railway Company; thence North Easterly along the Southerly line
of said last named parcel to a point on the South line or the right of way of the Indiana
Northern Railroad Company due West of the place of beginning: thence East ten hundred
Fifty-seven and Thirteen-hundredths (1057.13) feet, more or less, to the place of
beginning and containing Seventeen and seven hundred Sixty-one thousandths (17.761)
acres, exclusive of Olive Street.
All that part of the East Half of the North West Quarter of the North West Quarter of
Section No. 15, Township No. 37 North, Range No. 2 East, that lies South of the right-of-
way of the Indiana, Illinois, and Iowa Railroad Company (now New York Central
Railroad), now within and a part of the City of South Bend; excepting there from a lot or
parcel of land bounded as follows:
Beginning at the intersection of the South Easterly line of said right-of--way and the East
line of the East Half of the Northwest Quarter of the North West Quarter of said Section
No. 15, thence running South Westerly along the South Easterly line of said right-of--way
to the West line of the East Half of the North West Quarter of the North West Quarter of
said Section; thence running South 219 feet, more or less, to a point; thence North
Easterly parallel with and 219 feet South of the Southerly line of said right-of--way to the
East line of the East Half of the North West Quarter of the North West Quarter of said
Section No. 15; thence North 219 feet, more or less, to the place of beginning.
and which have Key Numbers 18-8075-2838, 18-8075-2839, 18-8075-2843, 18-8075-
2844.03, 18-8075-2844.04, 18-8075-2844.06, 18-8075-2845.01, 18-8075-2845.02, 18-
8075-2845.03, be designated as an Economic Revitalization Area under the provisions of
Indiana Code 6-1.1-12.1 et sea., and South Bend Municipal Code Sections 2-76 et sea.,
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 Personal 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 Personal property tax deduction for a period of (5) five years,
and further determines that the petition complies with Chapter 2, Article 6, of the
Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et sec .
SECTION III. This Resolution shall be in full force
adoption by the Common Council and approved by the 1~1
and after its
Council
PFESEN7ED ~,~~~~~~'~
itOT l~PPROVE~
AQ~P't~?~ -~' ~a-l~-l-c~
SEP i 3 2010
JQN~I VQORDE
CITY CLFRK, S0. EEP;D, IN.
September 7, 2010
Council Member Timothy Rouse, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
STEEL WAREHOUSE COMPANY, LLC and AFFILIATES and EQUIPMENT LESSORS
(2722 W. TUCKER DRIVE)
Dear Council Member Rouse:
Please find attached the Department of Community & Economic Development's report on a tax
abatement petition for the above-referenced petitioner. Also attached are copies of the petition, Statement of
Benefits forms, and supporting information. The project calls for the acquisition and installation of new
equipment as part of the company's planned increase in productive capacity in its facilities located at the
above listed address.
The report contains the Department's findings relative to the above petition. Steel Warehouse, LLC
will be purchasing and installing new equipment at the above location. The total cost of the project for the
equipment is estimated at $1,000,000 to $2,500,000. The project meets the qualifications for afive-year (5)
personal property tax abatement. A representative from Steel Warehouse will be available to meet with the
Committee on Monday, September 27, 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 235-9278.
Sincerely,
Kathy Hahn
Economic Development Specialist
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITIONS FOR:
STEEL WAREHOUSE COMPANY, LLC and AFFILIATES and
EQUIPMENT LESSORS (2722 W. TUCKER DRIVE )
DATE: September 7, 2010
On September 3, 2010, a petition for personal property tax abatement consideration for
property located at 2722 West Tucker Drive was filed with the City Clerk by Steel Warehouse
Company, LLC, et al. Pursuant to Chapter 2, Article 6, Section 2-77 of the Municipal Code of the
City of South Bend, the petition was referred to the Department of Community and Economic
Development for purposes of investigation and preparation of a report determining whether the areas
qualify as Economic Revitalization Areas 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 areas and makes the following report.
PROJECT SUMMARY
Steel Warehouse Company LLC is a steel service center with a primary focus on flat rolled,
low carbon steel with operations involving slitting, leveling, pickling, shearing, temper rolling, and
cold reducing. The petitioner also supplies profiling parts through its plasma and laser cutting
operations. In connection with its operations, the company takes substantial positions in steel and
steel products for the future sale and marketing of the same to its customers.
The abatement request for personal property at 2722 W. Tucker involves the acquisition of
equipment for manufacturing, servicing, processing and material handling of steel and steel products,
having a total cost expected to be from $1,000,000 to $2,500,000. The acquisition will enable the
company to add capacity and modernize its existing manufacturing equipment and facilities at this
South Bend Redevelopment Commission
RE: Steel Warehouse (Personal Property Abatement)
September 7, 2010
Page 2
location.
Depending on the final value of the equipment to be procured total taxes to be abated during
the five-year (5) abatement period are estimated to be between $6,445 and $16,113. Total additional
taxes to be paid as a result of the project during the five-year (5) abatement period are estimated to be
between $67,999 and $169,997.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create four (4) to seven (7) new
permanent full time jobs at the Tucker location representing new annual payroll of $134,500 to
$232,600. The project is also expected to retain a total of four (4) full-time jobs, representing an
annual payroll of $133,120 at the facility.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been granted or
been associated with the previous tax abatements listed below. In addition, at this time the
company is also petitioning for a personal property abatement at its 1400 W Riverside Dr.
location.
Term/Tvpe Resolution No. Date
5 year personal property 1169-84 June 25, 1984
5 year personal property 1432-86 Sept. 8, 1986
5 year personal property 1674-88 Nov. 28, 1988
10 year real property 1964-92 July 27, 1992
5 year personal property 1965-92 July 27, 1992
10 year real property .2157-94 July 11, 1994
5 year personal property ~ 2158-94 July 11, 1994
10 year real property 2371-96 June 24, 1996
S year personal property 2372-96 June 24, 1996
10 year real property 2496-97 August 25, 1997
5 year personal property 2495-97 August 25, 1997
5 year personal property 2714-99 March 22, 1999
10 year real property 2798-99 Oct.l 1, 1999
5 year personal property 2896-00 June 26, 2000
10 year real property 2895-00 June 26, 2000
5 year personal property 3035-01 Sept. 24, 2001
South Bend Redevelopment Commission
RE: Steel Warehouse (Personal Property Abatement)
September 7, 2010
Page 3
10 year real property 3036-01
5 year personal property 3380-04
5 year real property 3381-04
5 year personal property 3382-04
5 year personal property 3791-07
5 year personal property 3792-07
5 year personal property 3793-07
5 year personal property 3995-09
Sept. 24, 2001
Sept. 27, 2004
Sept. 27, 2004
Sept. 27, 2004
Sept. 24, 2007
Sept. 24, 2007
Sept. 24, 2007
Oct. 26, 2009
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 located at
2722 W. Tucker Drive is located in the Airport Economic Development Area, which is a Tax
Increment Allocation Area; therefore, the petition for personal property tax abatement for that
location 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 a five (5) year personal property tax abatement under Section 2-84.2 (Tangible
Personal Property Tax Abatement) for the 2722 W. Tucker Drive location.
5 YEAR
Steel Warehouse
South Bend Portage Township
Personal Property Tax Abatement Schedule"
Tax Key Number 343;2844.03;2844.04;2844.06;2845.01;2845.02;2845.03
Current Assessed Value: 9,642,334
Estimated Project Cost: 1,000,000
9-Sep-10
40% 56% 42% 32% 24%
100% 80% 60% 40% 20%
Year 1 Year 2 Year 3 Year 4 Year 5
Current
Assessed Value: AV & Tax Pav 2011 Pav 2012 Pav 2013 Pav 2014 Pav 2015
Current Assessed Value 100% 9,642,334 9,642,334 9,642,334 9,642,334 9,642,334 9,642,334
Base Assessed Value 400,000 560,000 420,000 320,000 240,000
Less Abatement Deduction (400,000) (448,000
(252 000)
(128 000)
(48 000)
Net Assessed Value 9,642,334 9,642,334 9,754,334 9,810,334 9,834,334 9,834,334
Property Taxes:
Assume constant tax rate of 4.4598% 4.4598% 4.4598% 4.4598% 4.4598% 4.4598%
Gross Tax (tax rate x net assessed value)
Less Circuit Breaker Credit
Net Tax
Circuit Breaker Cap
Circuit Breaker
Debt Service
Circuit Braker Cap
430,029 430,029 435,024 437,521 438,592 438,592
(92,055) (80,055) (79,685) (86 099) (90 048) (92 448)
337,973 349,973 355,339 351,422 348 543 346 143
3.0000% 289,270 301,270 306,070 301,870 298,870 296,470
0.5051% 48,703 48,703 49,269 49,552 49,673 49 673
337,973 349,973 355,339 351,422 348 543 346 143
New Combined Net
Existing Project Existing & New Tax Tax
Year Taxes Taxes Taxes Abated Paid
Pay 2011 337,973 14,020 351,994 2,020 349,973
Pay 2012 337,973 19,629 357,602 2,263 355,339
Pay 2013 337,973 14,721 352,695 1,273 351,422
Pay 2014 337,973 11,216 349,190 647 348,543
Pay 2015 337,973 8,412 346,386 242 346,143
Totals 1,689,867 67,999 1,757,866 6 445 1 751 421
'This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actual assessed valuation and the then current tax rates.
5 YEAR
Steel Warehouse
South Bend Portage Township
Personal Property Tax Abatement Schedule*
Assessed Value:
Current Assessed Value
Base Assessed Value
Less Abatement Deduction
Net Assessed Value
Property Taxes:
Assume constant tax rate of
Gross Tax (tax rate x net assessed value)
Less Circuit Breaker Credit
Net Tax
Circuit Breaker Cap
Circuit Breaker
Debt Service
Circuit Braker Cap
Tax Key Number 343;2844.03;2844.04;2844.06;2845.01;2845.02;2845.03
Current Assessed Value: 9,642,334
Estimated Project Cost: 2,500,000
Current
40% 56%
100% 80%
Year 1 Year 2
9-Sep-10
42% 32% 24%
60% 40% 20%
Year 3 Year 4 Year 5
AV & Tax Pav 2011 Pav 2012 Pav 2013 Pav 2014 Pav 2015
100% 9,642,334 9,642,334 9,642,334 9,642,334 9,642,334 9,642,334
1,000,000 1,400,000 1,050,000 800,000 600,000
(1,000,000) (1,120,000) (630 000) (320 000) (120 000)
9,642,334 9,642,334 9,922,334 10,062,334 10,122,334 10,122,334
4.4598% 4.4598% 4.4598% .4.4598% 4.4598% 4.4598%
430,029 430,029 442,516 448,760 451,436 451,436
(92,055) (62,055) (61,129) (77.1651 (87.0381 (93.0381
3.0000% 289,270 319,270 331,270 320,770 313,270 307,270
0.5051% 48,703 48,703 50,118 50,825 51,128 51128
337,973 367,973 381,388 371,595 364,398 358 398
New Combined Net
Existing Project Existing & New Tax Tax
Year Taxes Taxes Taxes Abated Paid
Pay 2011 337,973 35,051 373,024 5,051 367,973
Pay 2012 337,973 49,071 387,045 5,657 381,388
Pay 2013 337,973 36,804 374,777 3,182 371,595
Pay 2014 337,973 28,041 366,014 1,616 364,398
Pay 2015 337,973 21,031 359,004 606 358,398
Totals 1,689,867 169,997 1,859,865 16,113 1,843,752
'This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actual assessed valuation and the then current tax rates.
CITY OF SOUTH BEND PETITION FOR
TANGIBLE PERSONAL PROPERTYTAX ABATEMENT CONSIDERATION
The undersigned owner(s) of new manufacturing equipment, personal property, located within the
City of South Bend, hereby petitions the Common Council of the City of South Bend for personal
property (new manufacturing equipment) tax abatement consideration and pursuant to I.C., 6-1.1-
12.1, et se .and South Bend Municipal Code Section 2.84-2, et sea.• for this position states the
following:
1. Describe the proposed project, including information about the new manufacturing
equipment personal property ("Equipment") to be installed, the amount of land to be used,
if any, the proposed use of the Equipment, and a general statement as to the value of the
project to your business. Petitioner plans to acquire and install new equipment (i) to replace
certain existing equipment, and (iiJ to add additional capacity for manufacturing, servicing,
processing and material handling of steel and steel products. The project will allow the
Petitioner to continue to reach certain markets for its products that it currently does not
serve.
2. The project will create four (4J to seven (7) new, permanent jobs within the first year,
representing a new annual payroll of $134,500 to $232,600 and will maintain at least four
existing permanent full-time and _ existing part-time jobs representing an annual payroll
of $133,120. The projected annual salaries for each new position created are estimated to
be as follows: Leveler operator $35,340; Leveler helper $31,900; Material handling specialist
$30,900 per year. This does not include performance incentives and benefits including
participation in Petitioner's 401K plan and health insurance plan, and paid holidays and
vacations.
3. Estimate the total cost of the Equipment: $1,000,000-$2,500,000
4. (a) The Equipment is owned or to be owned by the following individuals or corporations
(if the business organization is publicly held, indicate also the name of the corporate parent,
if any, and the name under which the corporation has filed with the Securities and Exchange
Commission):
NAME
Steel Warehouse Company LLC
Affiliates and Equipment Lessors
ADDRESS INTEREST
2722 W. Tucker Drive SB, IN 100%
(b) The following other persons lease, intend to lease, or have an option to buy this
Equipment (including corporate information as required in (4)(a) above, if applicable): n/a
NAME ADDRESS INTEREST
5. Give a brief description of the overall nature of the business and of the operations occurring
at the location for which tax abatement is requested: Petitioner is a steel service center
specializing in flat rolled, low carbon steel and steel plate, with operations involving slitting,
leveling, pickling, temper rolling, shearing and cold reducing. Petitioner also supplies
profiling parts using plasma and laser cutting operations. In connection with its operations
Petitioner takes substantial positions in steel products for the future sale and marketing of
the same to its customers.
6. The commonly known address of the property where the Equipment is to be located is:
2722 W. Tucker Drive, South Bend, IN
7. The Key Numbers of said property are: 018-8075-2838; 2839; 2843, 2844.03, 2844.04;
2844.06; 2845.01; 2845.02; 2845.03
8. Attach the legal description of the property where the Equipment is to be located, marked
"Exhibit A",and is hereby incorporated herein.
9. Attach a map and/or plat describing the property where the Equipment is to be located,
marked "Exhibit B", and is hereby incorporated herein.
10. Attach photographs of the property, taken within 30 days of the filing of this petition,
marked "Exhibit C",and is hereby incorporated herein.
11. The current assessed valuation of the tangible personal property to be replaced by the new
manufacturing equipment is. n/a
(This information may be obtained from the St. Joseph County Assessors office 235-8523)
12. The current use of the real property where the Equipment is to be installed is E Heavy
lndustria/ and the current zoning is _ (use) F (height and area).
(This information may be obtained from the Building Department 235-9553).
13. List the real and personal property taxes paid at the location during the previous five years,
whether paid by the current owner of a previous owner.
YEAR
2009 payable 2010
2008 payable 2009
2007 payable 2008
2006 payable 2007
2005 payable 2006
REAL PROPERTY TAXES
$369,688
$389,915
$355,816
$318,152
$292,096
PERSONAL PROPERTY TAXES
$385,916
$377,770
$293,670
$229,868
$289,229
14. Describe the commitment made within the past five years by your firm to hiring minority
individuals, including number of minorities employed during each of the past five years,
specifying whether full-time orpart-time and whether permanent or temporary employees.
The Petitioner shall also list the current number of total employees (full and part-time) and
the current number of minority individuals (full and part-time).
Petitioner now and in the past has maintained a policy of hiring and promoting without
discrimination with respect to race, creed, color or gender. The number of minority full-time
employees of Petitioner for the years 2005-2009 is as follows:
2005129 minorities out of 457 total
2006128 minorities out of 445 total
2007129 minorities out of 458 total
2008131 minorities out of 506 total
2009 99 minorities out of 419 total
15. Describe on-site child care or day care facilities, services or benefits currently offered or
proposed to be offered by the Petitioner for children of employees. None
16. What is your best estimate of the market value of the new Equipment after installation?
$1,000,000 to $2,soo,ooo
17. What is your best estimate of the amount of taxes to be abated during each of the five years
after installation? Yr1: $14,000 to $35,000; Yr2: $15,680 to $39,200; Yr3: $8,820 to $22,050;
Yr4: $4,480 to $11,200; YrS: $2,100 to $5,250
18. What is the commitment your firm will make to minority employment during the five years
of tax abatement? Petitioner will continue to hire qualified applicants without regard to
race, creed, color or gender.
19. The Equipment has not been installed as of the date of filing of this petition.
(The signature at the end of this Petition is verification of this statement)
20. The standard Industrial Classification Manual major group within which the proposed
project would be classified, by number and description:
Major Group 33: Primary Metal Industries
21. The Internal Revenue Service Code of Principal Business Activity by which the proposed
project would be classified, by number and description:
5050
22. The real property where the Equipment will be installed is located in the following
Allocation Area, if any, declared and confirmed by the South Bend Redevelopment
Commission:
23. Other anticipated public financing for the project including, if any, industrial revenue-
bonding to be sought or already authorized, assistance through the United Stated
Department of Housing and Urban Development funds from the City of South Bend, Small
Business Association Sections 503 and 504 financing through the Business Development
Corporation of South Bend, Mishawaka, and St.loseph County, Indiana; or other public
financial assistance, including but not limited to public works improvements.
Petitioner may seek job training assistance for some of the additional personnel to be hired.
3
24. Describe how and why the manufacturing equipment to be replaced or the facility in which
Equipment will be added is currently technologically, economically or energy obsolete and
how and why that obsolescence may lead to a decline in employment and tax revenues:
The equipment to be replaced is of a size that limits Petitioner's production on such
equipment to a narrow range of products. As a result Petitioner cannot compete for
business outside of that range, and could lose additional business of customers seeking to
reduce the number of their suppliers.
25. The new manufacturing equipment will be used in the direct production, manufacture,
fabrication, assembly, extraction, mining, processing, refining, or finishing of other tangible
personal property and that the equipment was never before used by its owner for any
purpose in Indiana. The signature at the end of this Petition is verification of this statement.
26. The following person(s) should be contacted as Petitioner's agent regarding additional
information and public hearing notifications:
Name: Gerald F. Lerman
Address: 2722 W. Tucker Drive
City, State, Zip Code: South Bend, IN 46619
Telephone: (574) 236-5100
WHEREFORE, Petitioner requests that the Common Council of the City of South Bend, Indiana, adopt
a declaratory resolution designating the area described herein to be an economic revitalization area
for purposes of tangible personal property tax abatement consideration and after publication of
notice and public hearing, determine qualifications for an economic revitalization area have been
met, and confirm such resolution. Petitioner herein hereby verifies that the required $250.00 filing
fee to cover processing and administrative costs pursuant to Section 2-84.7 of the Municipal Code of
the City of South Bend has been paid in full.
Name of Property Owner(s):
Steel Warehouse Company LLC
By; ~..~., ..r,P F .1~..6,.~...
(Signed Name)
Gerald F. Lerman
(Typed or printed name and capacity of signor if signed by
an agent or representative of the owner)
(tangible personal prop jun 2010)
SEP - 3 2010
4
,lol;rj vco~~E
C1TY CLERK, S0. EctID,1~I.
EXHIBIT A
A part of the South '/z of the Northwest 1/4 of Section 15, Township 37 North,
Range 2 East in the City of South Bend, St. Joseph County, Indiana, described as
follows:
Beginning at a point on the East line of the Southwest 114 of the Northwest 1/4 of
said Section 15, 580.64 feet South of the Northeast corner of said Southwest 1/4
of the Northwest 1/4, said point being 172.0 feet North of the North right of way
line of the Indiana Northern Railway Company; thence Westerly parallel with
said North right-of--way line 565 feet to the Southwest comer of a tract of land
conveyed to Stanley Enterprises, Inc. By a deed recorded October 16 , 1993 in
Deed Record 777, page 226; thence North along the West line of said Stanley
Enterprises, Inc. tract, said line being parallel with the East line of said Southwest
1/4 of the Northwest 1/4, 323.0 feet to the South line of Tucker Drive; thence
West along the South line of Tucker Drive 215.93 feet; thence South parallel with
said East line of the Southwest 1/4 of the Northwest 1/4, 495,90 feet to the North
right-of--way line of the Indiana Northern Railway Company; thence Easterly
along said North right-of--way line, 860.23 feet to the West edge of Steel
Warehouse Co. Inc.'s building; thence North along said West edge of building,
172.0 feet; thence Westerly parallel with the North right-of--way line of the
Indiana Northern Railway Company, 79.3 feet to the point of beginning,
containing 5.0 acres, more or less.
A part of the Southwest Quarter of the Northwest Quarter of Section 15,
Township 37 North, Range 2 East in the City of South Bend, Indiana, more
particularly described as follows:
Beginning at a point 260 feet South and 25 feet West of the Northeast corner of
said Southwest Quarter of the Northwest Quarter; thence West 540 feet; thence
South parallel with the East line of said Southwest Quarter of the Northwest
Quarter, 324.25 feet to a point 172 feet North of the North line of the right-of--way
of the Indiana Northern Railway Company; thence East parallel with said North
line of said right-of--way, 540 feet; thence North parallel with the East line of said
Southwest Quarter of the Northwest Quarter, 320.75. feet to the place of
beginning.
A tract of land in the West Half (~/z) of the Northwest Quarter (1/4) of Section
Fifteen (15), Township Thirty-seven (37) North, Range Two (2) East, now within
and a part of the City of South Bend, St. Joseph County, Indiana, more
particularly described as follows:
Beginning at the center of the Northwest Quarter (1/4) of said Section Fifteen
(15); thence South along the Norther and South center line of said Quarter Section
Two Hundred Twenty (220) feet to the North line of Tucker Drive; thence West
along said North line to the West line of said Section Fifteen (15); thence North
along said West line One Hundred Twenty-eight and One Tenth (128,1) feet,
more or less, to a line Two Hundred Fifty (250) feet by rectangular measurement
Southeasterly from said original centerline of the New York Central Railroad
right-of--way; thence Northeasterly parallel to the Two Hundred Fifty (250) feet
by rectangular measurement Southeasterly from said original centerline of the
New York Central Railroad right-of--way, Seven Hundred Twenty-seven and One
One-Hundredth (727.01) feet, more or less, to a point on the East line of the
Southwest Quarter (1/4) of the Northwest Quarter (1/4) of the Northwest Quarter
(1/4) of Section Fifteen (15); thence Southerly along said East line One Hundred
Ninety-nine and Eighty-six Hundredths (199.86) feet, more or less, to the South
line of the Northwest Quarter (1/4) of the Northwest Quarter (1/4) of Section
Fifteen (15); thence East along said South line Six Hundred Sixty-three and Fifty-
two hundredths (663.52) feet, more or less, to the place of beginning, excepting
Thirty (30) feet offthe East side thereof for purposes of a public highway.
A lot or parcel of land situated in the Northwest Quarter of Section 15, Township
37 North, Range 2 East, now within and a part of the City of South Bend,
bounded by a line running as follows, to-wit: Beginning at a point on the North
line of the Southeast Quarter of the Northwest Quarter of said Section 15, 600 feet
West of the Northeast comer of the Southeast Quarter of the Northwest Quarter of
said Section 15; thence running West along said North line a distance of 725.8
feet to the Northwest comer of said Southeast Quarter of said Northwest Quarter;
thence South a distance of 220 feet, more or less, to the North line of a 40 foot
road known as Tucker Drive; thence East along the North line of said roadway to
a point due South of the place of beginning; thence North to the place of
beginning. Together with and subject to an easement over the 40 foot roadway
lying immediately South of the above described real estate known as Tucker
Drive, and extending Eastward to Olive Street.
Part of the Southeast Quarter (1/4) of the Northwest Quarter (1/4) of Section
Fifteen (15), Township Thirty-seven (37) North, Range Two (2) East, now within
and a part of the City of South Bend, described as beginning at a point 260 feet
South of the Northwest corner of the Southeast Quarter (1/4) of the Northwest
Quarter (1/4) of said Section Fifteen (15); thence South 492.9 feet to the North
line of the right-of--way of the Indiana Northern Railroad; thence East along the
said North line of the right-of--way of the Indiana Northern Railroad 305 feet;
thence North 492.9 feet; thence West 305 feet to the place of beginning.
Together with aright-of--way over a 40 foot roadway North of and adjoining the
aforedescribed tract, and continuing Easterly to Olive Street, which said 40 foot
roadway is now commonly known as Tucker Drive in said City of South Bend.
The East Half of the South East Quarter of the North East Quarter of Section No.
16, Township No. 37 North, Range No.2 East, containing 20 acres, more or less,
and being Lot No. 16 in the Sub-division of said Section No. 16, and now within a
part of the City of South Bend, excepting there from the following:
2
The original right-of--way across, the North West corner heretofore
conveyed by Joseph B. Arnold, to the Indiana Illinois, and Iowa Railway
Company by Warranty Deed dated August 21, 1894, and recorded in Deed
Record 95, page 553, of the records of St. Joseph County, Indiana; and
excepting second the following: Beginning at a point on the West line of
said Lot Numbered 16, where the same is intersected by the South
Easterly line of said original right-of--way, thence running South on the
west line of Lot Numbered 16, 219 feet, more or less, to a point distant
250 feet by rectangular measurement from the original center line of said
right-of--way; thence North Easterly parallel with and 250 feet distant by
rectangular measurement from the original center line of said right-of--way
a distance of 733..3 feet, more or less, to a point on the East line of said
Section No. 16, thence North on said East line, a distance of 105.5 feet,
more or less, to the North East corner of said Lot No. 16; thence West
along the North line of said Lot No. 16, thence North on said East line, a
distance of 105.5 feet, more or less, to the North East corner of said Lot
No. 16; thence West along the North line of said Lot No. 16, a distance of
254.5 feet, more or less, to the intersection with the said Easterly line of
said original right-of--way; thence South Westerly with said Easterly line a
distance of 454.5 feet, more or less, to the place of beginning, containing
3.04 acres, more or less; excepting third, all that part of said Lot No. 16
which lies South of the North line of the right-of--way of the St. Joseph,
South Bend and Southern Railroad Company, excepting fourth, a strip of
land 70 feet wide North and South lying next north of and adjoining the
right-of--way of the St. Joseph, South Bend and Southern Rairaoad
Company; excepting further that a strip of 40 feet in width, North and
South, and being a extension of Tucker Drive, shall be established through
the Northerly part of said tract and dedicated to the public as a highway,
which said extension shall extend to the right-of--way of the New York
Central Railroad Company.
All that part of the Southwest Quarter of the Northwest Quarter of Section
15, Township 37 North, Range 2 East, described as follows: Beginning at
a point 260 feet South and 330 feet West of the Northeast corner of the
said Southwest Quarter of the Northwest Quarter; thence West 996.08 feet
to the West line of said section; thence South 498.35 feet to the North line
of the right-of--way of the Indiana Northern Railway Company; thence
Easterly along the said Northerly line of said Indiana Northern Railway
Company a distance of 996.08 feet, more or less, to a point on the
Northerly line of the said Indiana Northern Railway Company South of
the place of beginning; thence North to the place of beginning.
Beginning in the center line of Olive Street in said City at a point Seven
Hundred Eighteen and twenty-five hundredths (718.25) feet South of the
North line of said Section No. 15, said point of beginning being on the
Southerly line of a strip of land Fifty (50) feet wide reserved for the right
of way of the Indiana Northern Railroad Company thence running South
on the center line of Olive Street, a distance of Six Hundred Eight and
fifteen-hundredths (608.15) feet to the South east corner of said North East
quarter of the North West quarter of Section No. 15; thence running West
on said South line, a distance of Thirteen Hundred twenty-seven (1327)
feet to the West line of said quarter quarter Section, thence North on said
West line, a distance of Four Hundred Ninety-three and four hundredths
(493.04) feet to the Southerly line of said parcel deeded by said Grantors
to the New York central Railway Company; thence North Easterly along
the Southerly line of said last named parcel to a point on the South line or
the right of way of the Indiana Northern Railroad Company due West of
the place of beginning; thence East ten hundred Fifly-seven and Thirteen
hundredths (1057.13) feet, more or less, to the place of beginning, and
containing Seventeen and seven hundred Sixty-one thousandths (17.761)
acres, exclusive of Olive Street.
All that part of the East Half of the North West Quarter of the North West Quarter
of Section No. 15, Township No. 37 North, Range No. 2 East, that lies South of
the right-of--way of the Indiana, Illinois, and Iowa Railroad Company (now New
York Central Railroad), now within and a part of the City of South Bend;
excepting therefrom a lot or parcel of land bounded as follows:
Beginning at the intersection of the South Easterly line of said right-of--way and
the East line of the East Half of the Northwest Quarter of the North West Quarter
of said Section No. 15, thence running South Westerly along the South Easterly
line of said right-of--way to the West line of the East Half of the North West
Quarter of the North West Quarter of said Section; thence running South 219 feet,
more or less, to a point; thence North Easterly parallel with and 219 feet South of
the Southerly line of said right-of--way to the East line of the East Half of the
North West Quarter of the North West Quarter of said Section No. 15; thence
North 219 feet, more or less, to the place of beginning.
4
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