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Home My WebLink About6A(1) Resolution No. 2835RESOLUTION NO. 2835 A RESOLUTION APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION WHEREAS, LC. 6-1.1-12.1-2(1) provides that an application forpropertytax deduction may not be approved when the property is located in an allocation area as defined in LC. 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 eight (8) years of real property tax abatement consideration from SBG Realty, LLC for real property identified as Lot l0A as shown on the Plat of ``H.G. Baus Centre- Phase One First Replat" Subdivision recorded by Document 0746267 in the Records of the Recorder of St. Joseph County, 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 identified as Lot 10 A as shown on the Plat of "H.G. BausCentre- Phase One First Replat" 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 SBG Realty, LLC for up to eight (8) years of real property tax abatement consideration for property identified as Lot 1 OA as shown on the Plat of "H.G. Baus Centre- Phase One First Replat" Subdivision recorded by Document 0746267 in the Records of the Recorder of St. Joseph County, 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 SBG Realty, LLC. Approved this 7th day of January, 2011, at the regular meeting of the South Bend Redevelopment Commission. SOUTH BEND REDEVELOPMENT COMMISSION ATTEST: EXHIBIT A LEGAL DESCRIPTION Description: Lot l0A as shown on the Plat of `'H.G. Baus Centre-Phase One First Replat" Subdivision as recorded by Document 0746267 Tax Key No.: 71-03-21-300-001.000-009 Address: Vacant land north of and adjacent to 4701 Nimtz Parkway Address: 3849 Showerlux Drive, South Bend, 1N 12()() COUNTY-CITY BL7ILDING Z27 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 4661-183() PHONE 574/ 235-9371 Fnx 574/235-9021 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~ ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECGTIVE I)IRF.CTOR TAX ABATEMENT REPOR T TO: SOUTH BEND REDEVELOPMENT COMMISSION FROM: KATHY HAH SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: SBG REALTY, LLC DATE: December 28, 2010 On December 28, 2010, a petition for real property tax abatement consideration for property identified as vacant Lot 1 OA HG Baus Centre, Phase One First Replat was filed with the City Clerk by SBG Realty, LLC. Pursuant to Chapter 2, Article 6, Section 2-82 of the Municipal Code of the City of South Bend, this petition was 1•eferred 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 SBG Realty, LLC intends to construct a 50,000 square foot manufacturing facility which will be leased to South Bend Gear. South Bend Gear is a joint venture between Schafer Gear Works, Inc. and Somaschini North America, Inc. formed in order to supply timing gears for Detroit Diesel Corporation which is a subsidiary of Daimler Corporation. The estimated cost of the building is $2,100,000. In subsequent phases, the size of the building maybe doubled. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL Rt PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELizAeeTH LEONARD FAX: 574/235-9469 574/235-9371 RE: Tax Abatement for SBG Realty, LLC December 28, 2010 Page 2 Assuming an eight-year abatement term is approved, the total taxes to be abated during that term are estimated at $233,063. Total taxes to be paid during the eight-year term are estimated at $267,464. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create 12 new, permanent full-time positions in year one growing to an expected 26 positions by year two. The new annual payroll in year one will be $605,000 growing to an expected payroll of $1,300,000 by year two. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has been granted or been associated with one (2) previous tax abatements. Term/Type Resolution No. Date 7-year real property 3840-08 3/10/2008 5- year real property 4036-10 7/12/2010 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 an eight-year real property tax abatement under Section 2-79, Industrial Development in the City-wide District. 28-Dec-10 SBG Realty, LLC Public Benefit Points Summary Qualify Earned Available Public Benefit Item: Y or N Points Points Proiect 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 Local Companies Y 20 20 C. Require Employees vs. Independent Contracts Y 19 19 D. Require Target Wage Levels N 0 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: 119 141 4. Wage & 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 9 Sub-total Wage 8 Benefit Related: 124 162 5. Workforce Related: A. Create New Jobs Y 42 42 B. Retain Existing Jobs N 0 41 C. Maintain Affirmative Action Plan Y 35 35 D. Provide Targeted Hiring Preference N 0 34 Sub-total Workforce Related: 77 152 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. Support a Municipal Facility: A. Support a Municipal Facility N 0 84 Total Public Benefit Points: 530 1000 * Qualification for each Public Benefit Item based on best available information at time of application or good faith determination if no information available. SBG Realty, LLC Additional Years of Abatement Multi-family Development Projects: 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: 530 Base Years of Abatement 3 Additional Years of Abatement: 5 Total Years of Abatement: