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RESOLUTION NO. 2842
A RESOLUTION APPROVING AN APPLICATION FOR
REAL 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 up to eight (8)
years of real property tax abatement consideration from the South Bend Redevelopment Commission
on behalf of Oliver Plow Partners, LP for real property tentatively identified as 815 Oliver Plow
Court 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 tentatively identified as 815 Oliver Plow Court 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 the South Bend Redevelopment
Commission on behalf of Oliver Plow Partners, LP for up to eight (8) years of real property tax
abatement consideration for property tentatively identified as 815 Oliver Plow Court 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 the South Bend
Redevelopment commission on behalf of Oliver Plow Partners, LP.
Approved this 8`h day of February, 2011, at the regular meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: To be replatted as Lot 2 of Oliver Plow Works First Minor Subdivision (currently
identified as the east 4.4 acres of Lot 8 Oliver Plow Works)
Tax Key No.: Current Key Number is 018-3061-2351
Address: Tentative address is 815 Oliver Plow Court,
South Bend, Indiana
1200 COl1N'iY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, 1NDLWA 46601-1830
PHONE 574/ 235-9371
FAx 574/235-9021
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY HL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA ~'~
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
OLIVER PLOW PARTNERS, LP
DATE: February 2, 2011
On February 2, 2011, a petition for real property tax abatement consideration for property tentatively
identified as 815 Oliver Plow Court (currently identified as the east 4.4 acres of Lot 8 Oliver Plow
Works and which is being replatted) was filed with the City Clerk by Oliver Plow Partners, LP.
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
The petitioner, Oliver Plow Partners, is in the process of purchasing 4.4 acres in the Oliver Plow
Industrial Park from the South Bend Redevelopment Commission. Oliver Plow intends to construct
a warehouse/distribution facility to accommodate a tenant, ABC Supply Company Incorporated. The
new building will have a total of approximately 40,800 square feet. It will be apre-engineered steel
facility with a masonry wainscot or facade. The building will be of high quality and will match the
character of the surrounding industrial uses inclose proximity to the property. The estimated cost of
the building is $1,750,000.
ABC Supply Company is a distributor of exterior housing products. They are a primary supplier to
the construction industry which will match the current uses found within Oliver Plow Industrial Park.
The Petitioner has just begun collecting information on potential suppliers and contractors for the
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZABETH LEONARD
FAx: 574/235-9469 574/235-9371
RE: Tax Abatement for Oliver Plow Partners, LP
February 2, 2011
Page 2
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 a four year terns. If they score all of the points for construction they would
have enough for seven years. For purposes of consideration of the Declaratory Resolution we are
estimating the term at eight years to allow for any extra adjustment. Anything less will result in a
reduction in the amount of tax revenue abated.
Assuming an eight year abatement term is approved at the Confirming Resolution, the total taxes to
be abated during that term are estimated at $ 192,799. Total taxes to be paid during the eight year
term are estimated at $224,308. If the tern remained at four years, total taxes to be abated are
estimated at $109,044. Total taxes to be paid over the four year term are estimated at $99,509.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create two (2) new, permanent full-time positions
with total wages estimated at $65,000. It will retain ten (10) existing permanent full-time positions
and one (1) existing part time position, including two (2) existing permanent full-time minority
employees, with a total annual payroll of $419,958.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that neither the petitioner, Oliver Plow
Partners, nor the proposed tenant, ABC Supply Company, has been granted or been associated
with previous tax abatements. However, Holliday Properties, a major partner in Oliver Plow
Partners has received previous tax abatements through various limited partnerships and limited
liability corporations.
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 2-83.1,
Warehouse Development in the Economic Development Target Areas, Urban Enterprise Zone
and Redevelopment Blighted Areas.
1-Feb-11
Oliver Plow Partners, LP
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 Y 49 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan Y 36 36
Sub-total Project Related: 85 120
2. Super Size Proiects (point values are cumulative):
A. 100% to 199% N 0 25
B. 200% to 299% N 0 68
C. 300% to 399% N 0 65
D. 400% and Over N 0 52
Sub-total Super Size Projects: 0 210
3. Construction Related:
A. Employ Local Companies N 0 20
B. Purchase Materials from Local Companies N 0 20
C. Require Employees vs. Independent Contracts N 0 19
D. Require Target Wage Levels N 0 22
E. Require Health Benefits N 0 22
F. Require Pension Benefits N 0 18
G. Maintain Affirmative Action Plan N 0 20
Sub-total Construction Related: 0 141
4. Wage & Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits N 0 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 & Benefit Related: 95 162
5. Workforce Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan N 0 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 83 152
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 Y 84 84
Total Public Benefit Po ints: 347 1000
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Oliver Plow Partners, LP
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: 347
Base Years of Abatement 3
Additional Years of Abatement
Total Years of Abatement: 4
1-Feb-11
Oliver Plow Partners LP
Public Benefit Points Summary'
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Project Related:
1. A. Redevelop a Site that has Special Needs Y 49 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan Y 36 36
Sub-total Project Related: 85 120
2. Super Size Proiects (point values are cumulative):
A. 100% to 199% N 0 25
B. 200% to 299% N 0 68
C. 300% to 399% N 0 65
D. 400% and Over N 0 52
Sub-total Super Size Projects: 0 210
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 Y 22 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: 141 141
4. Waae & Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits N 0 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: 95 162
5. Workforc e Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan N 0 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 83 152
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. Suaaort a Municipal Facility:
A. Support a Municipal Facility Y 84 84
Total Public Benefit Po ints: 488 1000
* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Oliver Plow Partners, LP
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: 488
Base Years of Abatement 3
Additional Years of Abatement: 4
Total Years of Abatement: 7
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