HomeMy WebLinkAbout6B(2) Resolution No. 2870b Cz)
RESOLUTION NO. 2870
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 Hoosier Tank and Manufacturing, Incorporated
for personal 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 (5) five years of personal 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 personal property tax abatement for Hoosier
Tank and Manufacturing, Incorporated.
Approved this 26"' day of April, 2011, at the regularly scheduled 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 of NW % SE 1/ and known as Gibbs
Wire & Steel Co. Inc. minor sub sec 33 -38 -2E cont appx AC
Tax Key No.: 018 - 2184- 693803 (Real Property): 018 - 07522 -00 (Personal Property)
Address: 1710 North Sheridan Street
South Bend, IN 46628
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND,INDUNA 46601 -1830
TO:
FROM:
PHONE 5741235 -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 ABATEMENT REPORT
SOUTH BEND REDEVELOPMENT COMMISSION
BOB MATHIA �, n/, ^
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
HOOSIER TANK AND MANUFACTURING, INCORPORATED
DATE: April 18, 2011
On April 18, 2011, a petition for personal 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 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.
The estimated cost of the equipment is $1,175,000.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235 -9660 574/235 -9371 ELIZABETH LEONARD
FAx: 5741235 -9697 574/235 -9371
South Bend Redevelopment Commission
RE: Tax Abatement for Hoosier Tank and Manufacturing, Inc.
April 18, 2011
Page 2
As part of the total project, the Petitioner is submitting a request for a seven -year real property tax
abatement for the addition it intends to construct on their building. 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 (5) five -year abatement period are estimated at $15,607. Total
additional taxes to be paid as a result of the project during the five -year abatement period are estimated
at $82,001.
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.
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 a (5) five -year personal property tax abatement under section 2 -84.2, Tangible
Personal Property Tax Abatement.
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