HomeMy WebLinkAbout6. C (1) Tax Abatement - Global Parts Network~ ~-~')
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
C['I'Y OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY $L ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX A BA TEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA ~.,~
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
GLOBAL PARTS NETWORK, LLC
DATE: February 17, 2011
On February 17, 2011, a petition for personal property tax abatement consideration for property located at
5102 Dylan Drive was filed with the City Clerk by Global Parts Network, 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
Global Parts Network is proposing to set up a new manufacturing/distribution facility that will
manufacture/distribute brake shoes and other parts for the heavy duty truck market. The project will
acquire several pieces of equipment including a press, press washers, blasters, paint line, packaging
machines, forklifts, riveters and deriveters as well as computer hardware and peripheral equipment. The
Petitioner plans to lease a portion of the Huron Building managed by Holladay Properties to house the
new facility. The company is considering the South Bend location as well as sites in Illinois and
Kentucky.
The estimated cost of the project is $2,075,000. Total taxes to be abated during the (5) five-year abatement
period are estimated at $90,250. Total taxes to be paid during the (5) five-year abatement period are
estimated at $82,121.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELizAeEry LEONARD
FAx: 574/235-9469 574/235-9371
South Bend Redevelopment Commission
RE: Tax Abatement for Global Parts Network, LLC
February 17, 2011
Page 2
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create twenty-two (22) new, permanent, full-time
jobs in the first year of production representing a new annual payroll of approximately $565,000. The
petitioner has estimated that there will be a total of 30 permanent, full time jobs by the end of fourth year
of the project. 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.
2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned
for the proposed project.
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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RESOLUTION NO. 2847
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 Global Parts Network, LLC, for personal property located
at 5102 Dylan 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 5102 Dylan 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 Global Parts Network, LLC , for (5) five
years of personal property tax abatement consideration for property located at 5102 Dylan 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 Global
Parts Network, LLC.
Approved this 22°d day of February, 2011, at the regularly scheduled meeting of the South
Bend Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: Lot 1 of Portage Prairie Minor Subdivision # 1
Tax Key No.: 025-1009-014603
Address: 5102 Dylan Drive
South Bend, IN 46628