HomeMy WebLinkAboutConfirming Tax Abatement - South Bend Gear, LLC 3849 Showerlux Dr. (5 Yr. Personal Property) RESOLUTION
4085-1�
Passed by the Common Councii of the City of South Bend, Indiana
February 28, 20 11
Attest: City Clerk
Attest� President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
March 1, 20 11
-------� City Clerk
Approved and signed by me March 2 2p]�_.
,,.Lt. �,�.� -
May�or
RESOLUTION NO. ���S'L (
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
3849 SHOWERLUX DRIVE
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF
A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
SOUTH BEND GEAR, LLC
WHEREAS, the Common Council of the City of South Bend, Indiana, has
adopted a Declaratory Resolution designating certain areas within the City as Economic
Revitalization Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as
3849 Showerlux Drive, South Bend, Indiana, and which is more particularly described as
follows:
This real estate is commonly described as: vacant land North of and
adjacent to 4701 Nimtz Parkway, said property having frontage on
Showerl� 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,
and which has Key Number 71-03-21-300-001.000-009, as an Economic Revitalization
Area; and �
WHEREAS, notice of the adoption of a Declaratory Resolution and the public
hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5;
and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution
designating the area described herein as an Economic Revitalization Area for the
purposes of tax abatement. Such designation is for Personal property t� abatement only
and is limited to two (2) calendar years from the date of adoption of the Declaratory
Resolution by the Common CounciL
SECTION II. The Common Council hereby determines that the property owner is
qualified for and is granted Personal property tax deduction for a period of(5) five years,
and further determines that the petition complies with Chapter 2, Article 6, of the
Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et s�
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved by the Mayor.
Membe o the Common Council
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CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY HL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
January 31, 2011
Council Member Timothy Rouse, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
South Bend Gear, LLC
Dear Council Member Rouse:
Please find attached the Department of Community & Economic Development's report on a personal
property tax abatement petition for the above-referenced petitioner. Also attached is a copy of the petition,
Statement of Benefits form, and supporting information. The project calls for the acquisition and
installation of equipment to start up a new company to be located at 3849 Showerlux Drive.
The report contains the Department's findings relative to the above petition. The equipment will be used to
manufacture gears for the heavy duty truck market. The project will be carried out in two phases over a
period of two years.The total project cost for the equipment is estimated at$15,600,000.The project meets
the qualifications for a(S)five-year personal property tax abatement and a representative from 5outh Bend
Gear will be available to meet with the Committee on Monday, February 14, 2011.
Should you or any of the other Council members have any questions concerning the report, or need
additional information, please feel free to call me at 235-5835.
Sincerely,
!yo'"Y" /�L�ti'�7vt-�--i
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL AC PROGI2AM
PA�IELA C.MEYER DONALD E.INKS MANAGEMENT
574I235-96G0 574/235-9371 Ec�ueerH LEONARD
Fnx: 574/235-9469 574/235-9371
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1200 Co�rrrrr-Crrr BuiLOirrc ���.\ ���d PxoNE 574/235-9371
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SOUTH BEND,INOUrrn 46601-1830 `�^ r'� /�'�'a�
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CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY �L ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABA TEMENT REPOR T
TO: SOUTH BEND COMMON COUNCIL
FROM: BOB MATHIA
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
SOUTH BEND GEAR, LLC
DATE: January 31, 2011
On January 28,201 l,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(a copy of which is
attached), 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,2011
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 a�id during the(5)five-year abatement
period are estimated at $617,395.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL&PROGRAM
PAMELA C.MEYER DONALD E.INKS MANAGEMENT
574/235-9660 574/235-9371 Ec�znserH LeoNna�
Fex: 574/235-9469 574/235-9371
South Bend Common Council
RE: Tax Abatement for South Bend Gear, LLC
January 31, 2011
Page 2
EMPLOYMENT 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
1. 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.
3. 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 for a (5) five-year personal property tax abatement under section 2-84.2, Tangible
Personal Property Tax Abatement.
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CITY OF SOUTH BEND PETITION FOR
TANGIBLE PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of new manufacturing equipment, personal property,
located within the City of South Bend, hereby petitions the Common Council of the
City of South Bend for personal property (new manufacturing eguipment) tax
abatement consideration and pursuant to I.C., 6-1.1-12.1, et seq•, and South Bend
Municipal Code Section 2-84.2, et seq•, for this petition states the following:
1. Describe the proposed project, including information about the new
manufacturing equipment personal property (Aequipment@) to be installed, the
amount of land to be used, if any, the proposed use of the equipment, and a
general statement as to the value of the project to your business.
South Bend Gear, LLC is a start up Companv to produce en�ine gears for the
heaw dutv truck market in North America. This proiect will consist of several
pieces of turning, �ear cutting and gear finishin� equipment as well as robots
and automation equipment. This proiect allows a new start up Company to
�row and expand in South Bend, creatin� new jobs and having a significant
impact on purchases from local suppliers. In addition, it will create tax revenue
at local and state levels. This project will be implemented in two phases over a
two year period beginning with i�stallation of machines in July, 2011 and
ending June 30, 2013. It is estimated that there will be 26 new employees hired
bv June 30, 2013.
2. The project will create 12 new, permanent jobs within the first year,
representing a new annual payroll of $ 550,000 and will maintain 0 New
Start Up) existing permanent full-time and 0 existing part-time jobs
representing an annual payroll of$ 0 . The projected annual salaries for each
new position created are estimated to be as follows:
$37,440 each hourlv position. It is estimated that there will be 26 new
emplovees hired by June 30, 2013.
3. Estimate the total cost of the Equipment: $15,600,000 over a 2 year period.
4. (a) The Equipment is owned or to be owned by the following individuals or
corporations (if the business organization is publicly= held, indicate also the
name of the corporate parent, if any, and the name under which the
corporation has filed with the Securities and Exchange Commission):
NAME ADDRESS INTEREST
South Bend Gear, LLC 3849 Showerlux Drive, South Bend, In. 46628
100% interest.
(Revised 8/2/02) 1
(b)The following other persons lease, intend to lease, or have an option to buy
this Equipment (include corporate information as required in (4)(a) above, if
applicable):
NAME ADDRESS INTEREST
Not Applicable
5. Give a brief description of the overall nature of the business and of the
operations occurring at the location for which tax abatement is requested:
Manufacturing of gears to customer specifications.
6. Tne commonly known address of the property where the Equipment is to be
located is: 3849 Showerlux Drive, South Bend, Indiana 46628
7. The Key Number of said property is: 71-03-21-300-001.000-009
8. Attach the legal description of the property where the equipment is to be
located, marked AExhibit A,@ and is hereby incorporated herein.
9. Attach a map and/or plat describing the property where the equipment is to be
located, marked AExhibit B,@ and is hereby i�corporated herein.
10. Attach photographs of the property, taken within 30 days of filing of this
petition, marked AExhibit C,@ and hereby incorporated herein.
11. The current assessed valuation of the tangible personal property to be replaced
by the new manufacturing equipment is $ 0.
(This information may be obtained from the St. Joseph County Assessors office 235-9523)
12. The current use of the real property where the Equipment is to be installed is
New building under const. and the current zoning is E (use) and A
(height and area).
(This information may be obtained from the Building Department 235-9553)
(Revised 8/2/02) 2
13. List the real and personal property taxes paid at the location during the
previous five years, whether paid by the current owner or a previous owner:
YEAR REAL PROPERTY TAXES PERSONAL PROPERTY TAXES
2010 $1,881.42 $0.00
2009 $2,110.69 $0.00
2008 $6,279.20 $0.00
2007 $6,002.14 $0.00
2006 $4,282.62 $0.00
(This information may be obtained from the St. Joseph County Treasurers office 235-9531)
14. Describe the commitment made within the past five years by your firm to hiring
minority individuals, including number of minorities employed during each of
the past five years, specifying whether full time or part-time and whether
permanent or temporary employees. The Petitioner shall also list the current
number of total employees (full and part-time) and the current number of
minority individuals (full and part-time).
This is a new start up Company and there are no existing employees.
15. Describe on-site child care or day care facilities, services or benefits currently
offered or proposed to be offered by the Petitioner for children of employees.
No�e
16. What is your best estimate of the market value of the new Equipment after
installation? $ 15,600,000
17. What is your best estimate of the amount of taxes to be abated during each of
the five years after installatio�? $ Not sure
18. What is the commitment your firm will make to minority employment during
the five years of tax abatement?
As positions become available, South Bend Gear, LLC will hire qualified
i�dividuals without re�ard to race, creed, or color.
19. The Equipment has not been installed as of the date of filing of this petition.
(The signature at the end of this Petition is verification of this statement)
20. The standard Industrial Classification Manual major group within which the
proposed project would be classified, by number and description:
3566— Speed changers, industrial hi�h-speed drives and gears.
(Revised 8/2/02) 3
21. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description:
3566— Speed changers, industrial high-speed drives and gears.
22. The real property where the Equipment will be installed is located in the
following Allocation Area, if any, declared and confirmed by the South Bend
Redevelopment Commission:
Airuort Eco�omic Development Area
23. Other anticipated public financing for the project including, if any, industrial
revenue-bonding to be sought or already authorized, assistance through the
United States Department of Housing and Urban Development funds from the
City of South Bend, Small Business Association Sections 503 and 504 financing
through the Business Development Corporation of South Bend, Mishawal�a,
and St. Joseph County, Indiana; or other public financial assistance, including
but not limited to public works improvements.
None
24. Describe how and why the manufacturing equipment to be replaced or the
facility in which Equipment will be added is currently technologically,
economically or energy obsolete and how and why that obsolescence may lead to
a decline in employment and tax revenues:
New equipment for a new customer pro�ram.
25. The new manufacturing equipment will be used in the direct production,
manufacture, fabrication, assembly, extraction, mining, processing, refi�ing, or
finishing of other tangible personal property and that the equipment was never
before used by its owner for any purpose in Indiana. The signature at the end
of this Petition is verification of this statement.
26. The following person(s) should be contacted as Petitioner=s agent regarding
additional information and public hearing notifications:
(Revised 8/2/02) 4
Name: Stan Blenke
Address: 4701 Nimtz Parkwav
City, State, Zip Code: South Bend, Indiana 46628
Telephone: 574-234-4116 ext. 214
WHEREFORE, Petitioner requests that the Common Council of the City of South
Bend, Indiana, adopt a declaratory resolution designating the area described herein
to be an economic revitalization area for purposes of tangible personal property tax
abatement consideration, and after publication of notice and public hearing,
determine qualifications for an economic revitalization area have been met, and
confirm such resolution. Petitioner herein hereby verifies that the required $250.00
filing fee to cover processing and administrative costs pursuant to Section 2-84.7 of
the Municipal Code of the City of South Bend has been paid in full.
Name of Property Owner(s):
South Bend Gear, LLC
By:
`�y�,�,�. ,v' ��'`-
(Signed Name)
Bipin N. Doshi, Manager
(Typed or printed name and capacity of signor if signed
by an agent or representative of the owner)
F1�@CI !!� �+l��'k'��C3ffice
JAN � 32u�1
JOHt�4���,�►��� „� ;
CITY CLERFL,SG`a't.: ,.;y �.
(Revised 8/2/02) 5
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
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Map of Showerlux Dr, South Bend, IN 46628 Page 1 of 1
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\'��hen using any driving direction� or map, it's � good idea to do a reality check and make sure the road still exist,,
w�Ych out for con.<,truc.tion, and follo�r.� all traffic sUfety precautiens. This is only to be used as an aid in planning.
http://maps.yahoo.com/print?mvt=m&ioride=us&tp=1&stx=&fcat=&frat=&clat=41.72731... 1/31/2011