HomeMy WebLinkAbout6B(1) Resolution No. 2811~~~~~
RESOLUTION NO. 2811
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 G.H.S. Corporation d/b/a GHS Strings, for personal
property located at 6879 Enterprise 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 6879 Enterprise 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 G.H.S. Corporation d/b/a GHS Strings,
for (5) five years of personal property tax abatement consideration for property located at 6879
Enterprise 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 G.H.S.
Corporation d/b/a GHS Strings.
Approved this 3rd day of December, 2010, at the regularly scheduled meeting of the South
Bend Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: Lot lettered "C" as shown on the recorded plat of Olive Road Commerce Park
Section Two, first replat recorded January 22, 1999 as document number 9903188 in the Office
of the Recorder of St. Joseph County, Indiana
Tax Key No.: 25-1011-0187 (a/k/a 71-03-19-300-005.00-09)
Address: 6879 Enterprise Drive
South Bend, IN 46628
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-9371
FAx 5741235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY $L ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRF.C"1'OR
TAX ABATEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA ~~
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
G.H.S. CORPORATION d/b/a GHS STRINGS
DATE: November 30, 2010
On November 29, 2010, a petition for personal property tax abatement consideration for property located
at 6879 Enterprise Drive was filed with the City Clerk by G.H.S. Corporation d/b/a GHS Strings.
Pursuant to Chapter 2, Article 6, Section 2-84.2 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
G.H.S. Corporation is one of the largest domestic manufactures of strings for fretted instruments,
including for example strings of classic, acoustic and electric guitars, bass instruments, mandolins, banjos,
fiddles and many other instruments. Petitioner is proposing to relocate its primary string manufacturing
operations to South Bend in a phased transition process to ramp up production and commence production
during 2011. The project consists of the installation of string manufacturing equipment including, without
limitation, automated ball-end machines, and computer monitored string tension and winding equipment.
G. H. S. Corporation will be transferring or purchasing and installing new and used equipment. All of the
used equipment will come from outside the State of Indiana. The estimated cost of the project is $600,000
to $1,000,000.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL BC PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 EuzAEE'rH LEONARD
FAX: 574!235-9697 574/235-9371
South Bend Redevelopment Commission
RE: Tax Abatement for G.H.S. Corporation d/b/a GHS Strings
November 30, 2010
Page 2
At a cost amount of $600,000 total taxes to be abated during the (5) five-year abatement period are
estimated at $26,096. Total taxes to be paid during the (5) five-year abatement period are estimated at
$23,746. At a cost of $1,000,000 total taxes to be abated during the (5) five-year abatement period are
estimated at $43,494. Total taxes to be paid during the (5) five-year abatement period are estimated at
$39,577.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create at least fifteen (15) new, permanent, full-
time jobs in the first year of production representing a new annual payroll of at least $350,000. Because
the project is new to South Bend there are no existing jobs.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has not been granted or
been associated with any previous tax abatements.
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 personal 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 fora (5) five-year personal property tax abatement under section 2-84.2, Tangible
Personal Property Tax Abatement.
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