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HomeMy WebLinkAbout6C(1)~ cC~) RESOLUTION NO. 2841 A RESOLUTION APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION WHEREAS, I.C. 6- l . l -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 South Bend Gear, LLC, for personal property located at 3849 Showerlux 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. l; and WHEREAS, the property located at 3849 Showerlux 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 South Bend Gear, LLC, for (5) five years of personal property tax abatement consideration for property located at 3849 Showerlux 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 South Bend Gear, LLC. Approved this 8`h day of February, 2011, at the regularly scheduled meeting of the South Bend Redevelopment Commission. SOUTH BF,ND REDEVELOPMENT COMMISSION ATTEST: EXHIBIT A LEGAL DESCRIPTION Description: This real estate is commonly described as: vacant land North of and adjacent to 4701 Nimtz Parkway, said property having frontage on Showerlux Drive, South Bend, Indiana 46628 and is legally described as follows: that part of the Southeast Quarter of Section 20 and the Southwest quarter of Section 21, both in Township 38 North, Range 2 East, German Township, City of South Bend, St. Joseph County, Indiana which is described as: Lot # l0A as shown on the plat of "H.G. Baus Centre-Phase One First Replat" subdivision recorded by Document No. 0746267 in the records in the Office of the Recorder of St. Joseph County, Indiana. Containing 5.54 acres more or less. Subject to all legal highways, easements and restrictions of record, Tax Key No.: 71-03-21-300-001.000-009 Address: 3849 Showerlux Drive South Bend, IN 46628 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 FAx 574/235-9021 CCIY OF SOUTH BEND STEPHEN J. LUECKF., MAYOR COMMUNITY HL ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPOR T TO: SO[JTH BEND RF_,DF,VELOPMENT COMMISSION FROM: BOB MATHIA ~'~,~~ Si1B.IECT: PF,RSONAL PROPERTY TAX ABAI~F,MF,NT PETITION FOR: SOUTH BEND GEAR, 1.LC DATE: January 31, 2011 On January 28, 2011, a petition for personal property tax abatement consideration for property located at 3849 Showerlux Drive was filed with the City Clerk by South Bend, Gear, LLC. 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 South Bend Gear, LLC is a start up company that will produce engine gears for the heavy duty truck market in North America. The project will acquire several pieces of turning, gear cutting and gear finishing equipment as well as robots and automation equipment. Under a separate project a building is being constructed to house the new company. The personal property project will be implemented in two phases over a two year period beginning with installation of an initial group of machines during July, 201 1 with final installation of machinery by February, 2013. The estimated cost of the two phase project is $15,600,000. Total taxes to be abated during the (5) five- year abatement period are estimated at $678,507. Total taxes to be paid during the (5) five-year abatement period are estimated at $617,395. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL BL PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD EAX: 574/235-9469 574/235-9371 South Bend Redevelopment Commission RE: Tax Abatement for South Bend Gear, LLC January 31, 20l 1 Page 2 F,MPLOYMENT IMPACT Per the petition, it is estimated that the total project will create at least twelve (12) new, permanent, full- time jobs in the first year of production representing a new annual payroll of at least $550,000. The petitioner has estimated that there will be a total of 26 full time jobs by the end of phase two. Because the project is new there are no existing jobs. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the petitioner has not been granted or been associated with any previous tax abatements. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 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