HomeMy WebLinkAbout6B(1) Resolution No. 2869RESOLUTION NO. 2869
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 seven (7) years of
real property tax abatement consideration from Hoosier Tank and Manufacturing, Incorporated for
real property located at 1710 North Sheridan Street 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 1710 North Sheridan Street 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 Hoosier Tank and Manufacturing,
Incorporated, for seven (7) years of real property tax abatement consideration for property located at
1710 North Sheridan Street 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 Patterson
Logistics Services, Inc.
Approved this 26th day of April, 2011, at the regular meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: Par of land beg appx 889.84 Ft So. & 40 Ft East ofNW' /a SE' /a and known as Gibbs
Wire & Steel Co. Inc. minor sub sec 33 -38 -2E cont appx AC
Tax Key No.: 018 - 2184- 693803
Address: 1710 North Sheridan Street
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
TDD 574/ 235 -5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABA TEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM; BOB MATHIA
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
HOOSIER TANK AND MANUFACTURING, INCORPORATED
DATE: April 18, 2011
On April 18, 2011, a petition for real property tax abatement consideration for property located at
1710 North Sheridan Street was filed with the City Clerk by Hoosier Tank and Manufacturing,
Incorporated. 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
Hoosier Tank and Manufacturing, Inc. is a manufacturer of air pressure reservoirs for OEM truck and
trailer manufactures domestically and internationally. They perform metal forming, welding and
painting operations required for the manufacture of air pressure reservoirs. The Petitioner is
proposing to: (a) construct a 70 X 290 foot addition (total additional area is 20,300 sq. ft.) to their
existing building; and (b) install equipment for a new production line. The addition will provide new
shipping docks with a turnaround access for six semitrailers, new warehouse space and a shipping
area to accommodate their customers' shipping needs. The addition will free up manufacturing floor
space and allow the company to add machinery for a complete third production line which will
increase their production capacity by 25 percent. The Petitioner is requesting a seven -year abatement
for the improvements it intends to make to the building. The cost of the construction portion of the
project is estimated at $ 760,000.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235 -9660 574/235 -9371 ELIZABETH LEONARD
FAx: 574/235 -9697 574/235 -9371
South Bend Redevelopment Commission
RE: Tax Abatement for Hoosier Tank and Manufacturing, Inc.
April 18, 2011
Page 2
The equipment for the production line includes a dust collector, air make up vent, new diameter
tooling, leveler for shear, laser cutter, roller, leak detection system, progressive strap bracket die,
forklift, washer, assembler, and an automated powder spray paint system. A personal property tax
abatement application is being submitted as part of the total project. The project's total cost is
estimated at up to $1,935,000.
The project will move the company's truck dock to a better location that will eliminate a major
traffic obstruction due to trucks using the street for turning and backing up to the current dock for
deliveries. This is something the City has been working with Hoosier Tank to alleviate for
approximately two years.
Total taxes to be abated during the seven -year abatement period are estimated at $31,422. Total
additional taxes to be amid as a result of the project during the seven -year abatement period are
estimated at $127,079.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create fifteen (15) new, permanent full -time
positions with an annual payroll $600,000. The project will also maintain seventy -two (72) existing
permanent full -time positions, including 22 existing permanent full -time minority employees, with a
total annual payroll of $3,000,000.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has been
associated with or granted the following previous abatements:
Term /Type
5 year personal property
5 year personal property
10 year real property
5 year personal property
5 year personal property
Resolution No. Date
2013 -93 2/22/1993
3213 -03 7/28/2003
3234 -03 8/25/2003
3843 -05 (Reconfirm & Inc.) 6/27/2005
4008 -10 1/11/2010
2. The Building Commissioner has reviewed the petition and finds the property to be properly
zoned for the proposed project.
South Bend Redevelopment Commission
RE: Tax Abatement for Hoosier Tank and Manufacturing, Inc.
April 18, 2011
Page 3
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 does meet the
qualifications for a seven -year (7) real property tax abatement under Section 2 -82, Industrial
Development, City -wide General Standards.
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* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
18- Apr -11
Patterson Logitics Services, Inc.
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 Projects (point values are cumulative):
A.
100% to 199%
Y
25
25
B.
200% to 299%
Y
68
68
C.
300% to 399%
N
0
65
D.
400% and Over
N
0
52
Sub -total Super Size Projects:
93
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 Contract(
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. Wage & Benefit Related:
A.
Pay Target Wage Levels
Y
33
33
B.
Provide Health Benefits
Y
34
34
C.
Provide Pension Benefits
Y
29
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:
124
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. Pay 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
N
0
84
Total Public Benefit Points:
526
1000
* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
Royal Holdings, Inc.
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 Proiects:
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: 526
Base Years of Abatement 3
Additional Years of Abatement: 4
Total Years of Abatement: 7