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HomeMy WebLinkAboutNo. 2766 approving an application for personal property tax deduction (2722 W. Tucker Dr.)RESOLUTION NO. 2766 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 five (5) years of personal property tax abatement consideration from Steel Warehouse Company, LLC and Affiliates and Equipment Lessors for personal property located at 2722 W. Tucker Drive in the South Bend Airport Economic Development Area, the legal description of which is attached hereto, marked Exhibit "A" and incorporated herein; and WHEREAS, this Commission declared the South Bend Airport Economic Development Area by Resolution No. 919, adopted February 23,1990, and in the same resolution declared the South Bend Airport Economic Development Area, Allocation Area No. 1; and WHEREAS, the property located at 2722 W. Tucker Drive is located within the South Bend Airport Economic Development Area, Allocation Area No. 1; WHEREAS, the property located at 2722 W. Tucker Drive is located within the Urban Enterprise Zone; L�- NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1) The Commission finds that the application from Steel Warehouse Company, LLC and Affiliates and Equipment Lessors for five (5) years of personal property tax abatement consideration for properties located at 2722 W. Tucker Drive in the South Bend Airport Economic Development Area, Allocation Area No. 1, should be and is hereby approved. 2) Should the Company receive the Enterprise Zone Investment Deduction under I.C. 6- 1.1 -45 for the same property, this Tax Abatement designation shall become null and void. The Company may not receive an economic revitalization area deduction if it receives an enterprise zone investment deduction under I.C. 6 -1.1- 45 for the same property. 3) 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 Steel Warehouse Company, LLC and Affiliates and Equipment Lessors. Approved this 17th day of September 2010 , at the regularly scheduled meeting of the South Bend Redevelopment Commission. SOUTH BEND RED, LOPMENT COMMISSION Marcia I. Jo es esident ATTEST: Nancy N. , c ry LIS G A EXHIBIT A LEGAL DESCRIPTION Description: See the attached Exhibit A Tax Key No.: 018- 8075 -2838; 2839; 2843; 2844.03; 2844.04; 2844.06; 2845.01; 2845.02; 2845.03 Address: 2722 W Tucker Dr., South Bend, IN M EXHIBIT A LEGAL DESCRIPTION Description: See the attached Exhibit A Tax Key No.: 018 - 8075 -2838; 2839; 2843; 2844.03; 2844.04; 2844.06; 2845.01; 2845.02; 2845.03 Address: 2722 W Tucker Dr., South Bend, IN 11 EXHIBIT A A part of the South '/z of the Northwest 1/4 of Section 15, Township 37 North, Range 2 East in the City of South Bend, St. Joseph County, Indiana, described as follows: Beginning at a point on the East line of the Southwest 1/4 of the Northwest 114 of said Section 15, 580.64 feet South of the Northeast comer of said Southwest 1/4 of the Northwest 114, said point being 172.0 feet North of the North right of way line of the Indiana Northern Railway Company; thence Westerly parallel with said North right -of -way line 565 feet to the Southwest comer of a tract of land conveyed to Stanley Enterprises, Inc. By a deed recorded October 16 , 1993 in Deed Record 777, page 226; thence North along the West line of said Stanley Enterprises, Inc. tract, said line being parallel with the East line of said Southwest 114 of the Northwest 1/4, 323.0 feet to the South line of Tucker Drive; thence West along the South line of Tucker Drive 215.93 feet; thence South parallel with said East line of the Southwest 1/4 of the Northwest 1/4, 495.90 feet to the North right -of -way line of the Indiana Northern Railway Company; thence Easterly along said North right -of -way line, 860.23 feet to the West edge of Steel Warehouse Co. Inc.'s building; thence North along said West edge of building, 172.0 feet; thence Westerly parallel with the North right -of -way line of the Indiana Northern Railway Company, 79.3 feet to the point of beginning, containing 5,0 acres, more or less. A part of the Southwest Quarter of the Northwest Quarter of Section 15, Township 37 North, Range 2 East in the City of South Bend, Indiana, more particularly described as follows: Beginning at a point 260 feet South and 25 feet West of the Northeast comer of said Southwest Quarter of the Northwest Quarter, thence West 540 feet; thence South parallel with the East line of said Southwest Quarter of the Northwest Quarter, 324.25 feet to a point 172 feet North of the North line of the right -of -way of the Indiana Northern Railway Company; thence East parallel with said North line of said right -of -way, 540 feet; thence North parallel with the East line of said Southwest Quarter of the Northwest Quarter, 320.75 feet to the place of beginning. A tract of land in the West Half (1/2) of the Northwest Quarter (1/4) of Section Fifteen (15), Township Thirty -seven (37) North, Range Two (2) East, now within and a part of the City of South Bend, St. Joseph County, Indiana, more particularly described as follows: Beginning at the center of the Northwest Quarter (1/4) of said Section Fifteen (15); thence South along the Norther and South center line of said Quarter Section Two Hundred Twenty (220) feet to the North line of Tucker Drive; thence West along said North line to the West line of said Section Fifteen (15); thence North along said West fine One Hundred Twenty -eight and One Tenth (128.1) feet, more or less, to a line Two Hundred Fifty (250) feet by rectangular measurement Southeasterly from said original centerline of the New York Central Railroad right -0f - -way; thence Northeasterly parallel to the Two Hundred Fifty (250) feet by rectangular measurement Southeasterly from said original centerline of the New York Central Railroad right -of -way, Seven Hundred Twenty-seven and One One - Hundredth (727.01) feet, more or less, to a point on the East line of the Southwest Quarter (1/4) of the Northwest Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15); thence Southerly along said East line One Hundred Ninety-nine and Eighty -six Hundredths (199.86) fat, more or less, to the South line of the Northwest Quarter (1/4) of the Northwest Quarter (1/4) of Section Fifteen (15); thence East along said South line Six Hundred Sixty -three and Fifty - two hundredths (663.52) feet, more or less, to the place of beginning, excepting Thirty (30) feet off the East side thereof for purposes of a public highway. 14 A lot or parcel of land situated in the Northwest Quarter of Section 15, Township 37 North, Range 2 East, now within and a part of the City of South Bend, bounded by a line running as follows, to -wit: Beginning at a point on the North line of the Southeast Quarter of the Northwest Quarter of said Section 15, 600 feet West of the Northeast corner of the Southeast Quarter of the Northwest Quarter of said Section 15; thence running West along said North line a distance of 725.8 feet to the Northwest corner of said Southeast Quarter of said Northwest Quarter; thence South a distance of 220 feet, more or less, to the North line of a 40 foot road known as Tucker Drive; thence East along the North Line of said roadway to a point due South of the place of beginning; thence North to the place of beginning. Together with and subject to an easement over the 40 foot roadway lying immediately South of the above described real estate known as Tucker Drive, and extending Eastward to Olive Street. Part of the Southeast Quarter (114) of the Northwest Quarter (114) of Section Fifteen (15), Township Thirty -seven (37) North, Range Two (2) East, now within and a part of the City of South Bend, described as beginning at a point 260 feet South of the Northwest comer of the Southeast Quarter (1/4) of the Northwest Quarter (1/4) of said Section Fifteen (15); thence South 492.9 feet to the North line of the right -of -way of the Indiana Northern Railroad; thence Fast along the said North line of the right -of -way of the Indiana Northern Railroad 305 feet; thence North 492.9 feet; thence West 305 feet to the place of beginning. Together with a right -of -way over a 40 foot roadway North of and adjoining the aforedescribed tract, and continuing Easterly to Olive Street, which said 40 foot roadway is now commonly known as Tucker Drive in said City of South Bend. The East Half of the South East Quarter of the North East Quarter of Section No. 16, Township No. 37 North, Range No.2 East, containing 20 acres, more or less, and being Lot No. 16 in the Sub - division of said Section No. 16, and now within a part of the City of South Bend, excepting there from the following: [A The original right -of -way across, the North West corner heretofore conveyed by Joseph B. Arnold, to the Indiana Illinois, and Iowa Railway Company by Warranty Deed dated August 21, 1894, and recorded in Deed Record 95, page 553, of the records of St. Joseph County, Indiana; and excepting second the following: Beginning at a point on the West line of said Lot Numbered 16, where the same is intersected by the South Easterly line of said original right -of -way, thence running South on the west line of Lot Numbered 16, 219 feet, more or less, to a point distant 250 feet by rectangular measurement from the original center line of said right -of -way; thence North Easterly parallel with and 250 feet distant by rectangular measurement from the original center line of said right -of -way a distance of 73 3.3 feet, more or less, to a point on the East line of said Section No. 16, thence North on said East line, a distance of 105.5 feet, more or less, to the North East comer of said Lot No. 16; thence West along the North line of said Lot No. 16, thence North on said East fine, a distance of 105.5 feet, more or less, to the North East corner of said Lot No. 16; thence West along the North line of said Lot No. 16, a distance of 254.5 feet, more or less, to the intersection with the said Easterly line of said original right -of -way; thence South Westerly with said Easterly line a distance of 454.5 feet, more or less, to the place of beginning, containing 3.04 acres, more or less; excepting third, all that part of said Lot No. 16 which lies South of the North line of the right -of -way of the St. Joseph, South Bend and Southern Railroad Company, excepting fourth, a strip of land 70 feet wide North and South lying next north of and adjoining the right -of -way of the St. Joseph, South Bend and Southern Railroad Company; excepting further that a strip of 40 feet in width, North and South, and being a extension of Tucker Drive, shall be established through the Northerly part of said tract and dedicated to the public as a highway, which said extension shall extend to the right -of -way of the New York Central Railroad Company. s All that part of the Southwest Quarter of the Northwest Quarter of Section 15, Township 37 North, Range 2 East, described as follows: Beginning at a point 260 feet South and 330 feet West of the Northeast comer of the said Southwest Quarter of the Northwest Quarter; thence West 996.08 feet to the West line of said section; thence South 498.35 feet to the North line of the right -of -way of the Indiana Northern Railway Company; thence Easterly along the said Northerly line of said Indiana Northern Railway Company a distance of 996.08 feet, more or less, to a point on the Northerly line of the said Indiana Northern Railway Company South of the place of beginning; thence North to the place of beginning. Beginning in the center line of Olive Street in said City at a point Seven Hundred Eighteen and twenty -five hundredths (718.25) feet South of the North line of said Section No. 15, said point of beginning being on the Southerly line of a strip of land Fifty (50) feet wide reserved for the right IM LIM of way of the Indiana Northern Railroad Company thence running South on the center line of Olive Street, a distance of Six Hundred Eight and fifteen- hundredths (608.15) feet to the South east corner of said North East quarter of the North West quarter of Section No. 15; thence running West on said South line, a distance of Thirteen Hundred twenty-seven (1327) feet to the West line of said quarter quarter Section, thence North on said West line, a distance of Four Hundred Ninety-three and four hundredths (493.04) feet to the Southerly line of said parcel deeded by said Grantors to the New York central Railway Company; thence North Easterly along the Southerly line of said last named parcel to a point on the South line or the right of way of the Indiana Northern Railroad Company due West of the place of beginning; thence East ten hundred Fifty -seven and Thirteen hundredths (1057.13) feet, more or less, to the place of beginning, and containing Seventeen and seven hundred Sixty -one thousandths (17.761) acres, exclusive of Olive Street. All that part of the East Half of the North West Quarter of the North West Quarter of Section No. 15, Township No. 37 North, Range No. 2 East, that lies South of the right -of -way of the Indiana, Illinois, and Iowa Railroad Company (now New York Central Railroad), now within and a part of the City of South Bend; excepting therefrom a lot or parcel of land bounded as follows: Beginning at the intersection of the South Easterly line of said right -of -way and the East line of the East Half of the Northwest Quarter of the North West Quarter of said Section No. 15, thence running South Westerly along the South Easterly line of said right -of -way to the West line of the East Half of the North West Quarter of the North West Quarter of said Section; thence running South 219 feet, more or less, to a point; thence North Easterly parallel with and 219 feet South of the Southerly line of said right -of -way to the East line of the East Half of the North West Quarter of the North West Quarter of said Section No. 15; thence North 219 feet, more or less, to the place of beginning. 2010 L._ r,.. +. And which has Tax Key Numbers 018- 8075 -2838; 2839; 2843; 2844.03; 2844.04; 2844.06; 2845.01 TAX ABA TEMENT REPOR T TO: SOUTH BEND REDEVELOPMENT COMMISSION FROM: KATHY HAHN SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITIONS FOR: STEEL WAREHOUSE COMPANY, LLC and AFFILIATES and EQUIPMENT LESSORS 2722 W. TUCKER DRIVE DATE: September 7, 2010 On September 3, 2010, a petition for personal property tax abatement consideration for property located at 2722 W. Tucker Drive was filed with the City Clerk by Steel Warehouse Company, LLC, et al. Pursuant to Chapter 2, Article 6, Section 2 -77 of the Municipal Code of the City of South Bend, the petition was referred to the Department of Community and Economic Development for purposes of investigation and preparation of a report determining whether the areas qualify as Economic Revitalization Areas 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. The report reviews and summarizes the request from Steel Warehouse Company LLC for the personal property abatement. PROJECT SUMMARY Steel Warehouse Company LLC is a steel service center with a primary focus on flat rolled, low carbon steel with operations involving slitting, leveling, pickling, shearing, temper rolling, and cold reducing. The petitioner also supplies profiling parts through its plasma and laser cutting operations. In connection with its operations, the company takes substantial positions in steel and steel products for the future sale and marketing of the same to its customers. CThe abatement request for personal property at 2722 W. Tucker involves the acquisition of [A South Bend Redevelopment Commission RE: Steel Warehouse (Personal Property Abatement) September 7, 2010 Page 2 equipment for manufacturing, servicing, processing and material handling of steel and steel products, having a total cost expected to be from $1,000,000 to $2,500,000. The acquisition will enable the company to add capacity to and to modernize its existing manufacturing equipment and facilities at this location. Total taxes to be abated during the five -year (5) abatement period are estimated to be between $6,445 and $16,113. Total taxes to be paid during the five -year (5) abatement period are estimated to be between $67,999 and $169,997. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create four (4) to seven (7) new permanent full time jobs at the Tucker location representing a new annual payroll of $134,500 to $232,600.. The project is also expected to retain a total of four (4) full -time jobs, representing an annual payroll of $133,120 at the facility. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has been granted the following previous tax abatements: Term/Type Resolution No. Date 5 year personal property 1169 -84 June 25, 1984 5 year personal property 1432 -86 Sept. 8, 1986 5 year personal property 1674 -88 Nov. 28, 1988 10 year real property 1964 -92 July 27, 1992 5 year personal property 1965 -92 July 27, 1992 10 year real property 2157 -94 July 11, 1 994 5 year personal property 2158 -94 July 11, 1994 10 year real property 2371 -96 June 24, 1 996 5 year personal property 2372 -96 June 24, 1996 10 year real property 2496 -97 August 25, 1997 5 year personal property 2495 -97 August 25, 1997 5 year personal property 2714 -99 March 22, 1999 10 year real property 2798 -99 Oct. l 1, 1999 5 year personal property 2896 -00 June 26, 2000 10 year real property 2895 -00 June 26, 2000 South Bend Redevelopment Commission RE: Steel Warehouse (Personal Property Abatement) September 7, 2010 Page 3 5 year personal property 3035 -01 Sept. 24, 2001 10 year real property 3036 -01 Sept. 24, 2001 5 year personal property 3380 -04 Sept. 27, 2004 5 year real property 3381 -04 Sept. 27, 2004 5 year personal property 3382 -04 Sept. 27, 2004 5 year personal property 3791 -07 Sept. 24, 2007 5 year personal property 3792 -07 Sept. 24, 2007 5 year personal property 3793 -07 Sept. 24, 2007 5 year personal property 3995 -09 Oct. 26, 2009 The petitioner is in compliance with the reporting requirements for the previous 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 located at 2722 W. Tucker Drive is- located in the Sample Ewing Development Area, which is a Tax Increment Allocation Area; therefore, the petition for personal property tax abatement for that location 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 five (5) year personal property tax abatement under Section 2 -84.2 (Tangible Personal Property Tax Abatement) for the 2722 W. Tucker Drive location. 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