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1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-9371
FAx 574/235-9021
CITY OF SOUTH BEND STEPHEN J. LUECKF., MAYOR
COMMUNITY HL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
T.-1.~~ , t 1~. 1 Tf.~.1I1; a"T REPORT (UPDATE)
TO: SOUTII BEND REDEVELOPMENT COMMISSION
FROM: BOB MA'I'IIIA ~j,-~
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
MC CORMICK AND COMPANY, INC.
DATE: February 4, 2011
Please find attached a letter from Ms. Deidre Cassidy, Director of State and Local Tax for
McCormick & Company. The letter, contains a request for an increase in the amount of the
company's five year personal property tax approved by the Redevelopment Commission through
resolution #2677on July 10, 2010 and approved by the South Bend Common Council through
resolution #4076-11on January 24, 2011. The original amount requested, as amended, was
$1,362,173. They are planning to move an existing brand of products from a co-packer to a company
owned facility at a cost of $6,744,426. They are considering their South Bend facility for that move.
As a result, they are asking that the amount of their personal property abatement by increased by
$6,744,426 to a new total of $8,136,599.
With this increase the total taxes abated and paid will increase from $10,073 and $103,084
respectively to $125, 205 and $550,707. It should also be noted that the company had planned to
increase employment by five positions under its current abatement. However, it has already
increased total employment by 10 positions and total wages have gone from $6,288,988 to
$6,718,833 for an increase of $429,845. With the proposed move the company would add an
additional 14 positions and increase wages by another $483,1 O 1.
The request requires a reconfirming resolution from the South Bend Common Council. In addition
to Ms. Cassidy's letter, I have attached a copy of a revised Statement of Benefits (Form SB-1) and a
copy of the estimated Personal Property Tax Abatement Schedule for your review.
The Redevelopment Commission is requested to approve the $6,774,426 increase in the estimated
value of McCormick's personal property tax abatement to a new total of $8,136,599.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HL PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 >74/235-9371 ELIZAeeTH LEONARD
FAX: 574/235-9469 574/235-9371
m
McCORMICK& COMPANY INC. 16 LOVETON CIRCLE, SPARKS, MD 21152-6000 USA /TEL (410) 771-7301 FAX (410) 771-7462
February 3, 2011
To Whom It May Concern:
McCormick and Company would like to request a confirming resolution from the
Common Council to increase the dollar amount approved for their personal property tax
abatement. McCormick is considering increasing the size of their investment in personal
property located at 3425 West Lathrop Drive; South Bend, Indiana 46628 from
$1,362,173 to $8,136,599. The total amount of the increase is $6,774,426.
The increase is due to the fact that we are considering moving an existing brand of
products from a co-packer to a company owned facility. The investment would include
additional packaging equipment allowing us to sort, fill, wrap and palletize plastic bottles
for liquid marinades. This in-sourcing of manufacturing is expected to create
approximately 14 additional jobs in the state of Indiana with estimated annual salaries of
$483,101.
Thank in advance for your support on this project. If you have questions, please feel free
to contact me at 410-771-7381.
Sincerely,
~s. cV.~~~O~`aIC~.~/
Deidre Cassidy
Director of State and Local Tax
'~• ~~~ STATEMENT OF BENEFITS
~~ ~ PERSONAL PROPERTY AMENDED
Stale Form 51764 (R I 1-06)
~ ' '• ~ Prescribed by the Department of Local Government Finance
INSTRUCTIONS:
FORM SB-1 1 PP
PRIVACY NOTICE
The cost and any specific individual's
salary information is confidential; the
balance of the filing is public record
per IC 6.1.1.12.1-5.1 (c) and (d).
1, This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted
to the designating body BEFORE a person installs the new manufacturing equipment and/or research and development equipment, and/or logistical distribution
equipment and/or inlonnation technology equipment for which the person wishes to claim a deduction. "Pro)ects"planned or committed to after Juty 1, 1987,
and areas designated afterJuly 1, 1987, require a STATEMENT OF BENEFITS. (IC 6.1.1-12. f)
2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manufacturing equipment
and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment, BEFORE a deduction may
be approved
3. To obtain a deduction, a person must file a certified deduction schedule with the person's persona[ property return on a certified deduction schedule (Form
103-ERA) with the township assessor of the township where the property is situated. The 103-ERA must be tiled between March 1 and May 15 of the
assessment year in which new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or
information technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must
file the form between March 1 and the extended due date o/that year.
4. Property owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF-1 / PP annually to show compliance with the
Statement of Benefts. (IC 6-1.1-12.1-5.6)
5. The schedules established under !C 6-1.1-12.1-4.5(d) and (e) apply to equipment installed after March 1, 2001. For equipment installed prior to March 2,
2001, the schedules and statutes in effect at the time shall continue to apply. (IC 6-1.1-f2.1-4.5(7) and (g))
~ •- ~
Name of taxpayer
McCormick and Company, Inc.
Address of taxpayer (number and street, city, stale, and Z1P code)
18 Loveton Circle, Sparks, MD 21152
Name of contact person
Deidre Cassidy Telephone number
(470) 771-7381
Name of designating body Resolution number (s)
Location of property
3425 West Lathrop Drive, South Bend, IN County
St. Joseph DLGF taxing district number
Description of manufacturing equipment and/or research and development equipment ESTIM ATED
and/or logistical distribution equipment and/or information technology equipment.
(use additional sheets if necessary) START DATE COMPLETION DATE
We are expanding the investment in personal property Manufacturing Equipment 09/01/2010 01/01/2012
through the purchase of additional packaging equipment R $ D Equipment
allowing us to sort, fill, wrap and palletize plastic bottles Logist Dist Equipment
for IlgUld marlnadeS. IT Equipment
Current number Salaries Number retained Salaries Number addi[ionat Salaries
133 6,718,833.00 133 6,718,833.00 14 483,101.00
NOTE: Pursuant to IC 6-1.1-12.1-5.1 d 2 the
( ) () MANUFACTURING
EQUIPMENT R $ D EQUIPMENT LOGIST DIST IT EQUIPMENT
EQUIPMENT
COST of the property is confidential.
** Please see attachment COST ASSESSED
VALUE COST ASSESSED
VALUE COST ASSESSED COST
VALUE ASSESSED
VALUE
Current values zo,no9,99z.oo 7,439,430.00 685,405.00 225,674.00
Plus estimated values of proposed project 7,950,655.00 185.944.00
Less values of any property being replaced o.oo
Net estimated values upon completion of project
• • z5.7so,sa7.oo
~
~ •
•
• ~ e7t,34s.oo
Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds)
O[her benefits:
None with current project. Wast water facility previously built to treat H2O
I hereby certify that the representations in this statement are true.
Si uthori;ed representativ Title
~ ~ Director -State & Local Tax Date signed (month, day, year)
a ~ I I
U
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards
adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5, provides for the following limitations as
authorized under IC 6-1.1-12.1-2.
A .The designated area has been limited to a period of time not to exceed calendar years' (see below). The date this designation expires
is
B .The type of deduction that is allowed in the designated area is limited to:
1. Installation of new manufacturing equipment; ^ Ye s ^ N o
2. Installation of new research and development equipment; ^ Ye s ^ N o
3. Installation of new logistical distribution equipment. ^ Ye s ^ N o
4. Installation of new information technology equipment; ^ Ye s ~ N o
C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of
$
D. The amount of deduction applicable to new research and development equipment is limited to $ ___,_______~ cost
with an assessed value of $ _________~____.
E .The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of
F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of
G. Other limitations or conditions (specify)
H. The deduction for new manufacturing equipment andlor new research and development equipment and/or new logistical distribution equipment and/or
new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for:
^ 1 year ^6 years "For ERA's established prior to July 1, 2000, rLnly a
^ 2 years ^7 years 5 or 10 year schedule may be deducted.
^3 years ^8 years
^4 years ^ 9 years
^ 5 years " ^ 10 years "
Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
(signature and title oI authohzed member) ~ Telephone number Oate signed (month. day, year)
by: ~ Designated body
' If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is
entitled to receive a deduction to a number of years designated under IC 6.1.1-12.1-4.5
McCormick and Company, Inc.
Attachement to SB-1 Statement of Benefits -Personal Property
Section 4 -Estimated Ttotal Cost and Value of Proposed Project
Current Values have been estimated as follows:
Value on original SB-1
Estimated value of proposed project on Original SB-1
Estimated value of proposed project on Amended S8-1
21,495,397 7,668,104
1,362,173
6,774,426
8,136, 599
Total Estimated Current Value
29,631,996 7,668,104
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