HomeMy WebLinkAbout6A (1)lep A— ( 1)
RESOLUTION NO. ):`l ► 3
A RESOLUTION APPROVING AN APPLICATION FOR
REAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6 -1.1- 12.1 -2(1) provides that an application forpropertytax deductionmay
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 up to seven (7)
years of real property tax abatement consideration from the South Bend Redevelopment Commission
on behalf of GVW Realty, LLC for real property identified as 4411 Quality 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 tentatively identified as 4411 Quality 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 the South Bend Redevelopment
Commission on behalf of GVW Realty, LLC for up to six (6) years of real property tax abatement
consideration for property tentatively identified as 4411 Quality 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 real property tax abatement for the South Bend
Redevelopment commission on behalf of GVW Realty, LLC.
Approved this 28th day of June, 2011, at the regular meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: 71 -03 -19 -126- 002.000 -009
Lot numbered One (1) as shown on the recorded Plat of Hayes Olive
Road Minor Subdivision, recorded July 17, 2000 as Document
Number 0033926 in the Office of the Recorder of St. Joseph County, Indiana.
71- 03 -19- 126 - 001.000 -009
Lot numbered Twenty A (20A) as shown on the recorded Plat of
Landmark Business Park, Section 7, recorded October 19, 1992 as
Document Number 9238271 in the Office of the Recorder of St.
Joseph County.
Tax Key No.: 71 -03 -19 -126- 002.000 -009 and 71-03-19-126-001.000-009
Address: 4411 Quality Drive, South Bend, Indiana 46628
German Township, St. Joseph County
1200 COUNTY -CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601 -1830
PHONE 574 /235 -9371
FAX 574/235 -9021
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
,JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABA TEMENT REPORT
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: KATHY HAHN
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
GVW Realty, LLC
DATE: June 22, 2011
On June 21, 2011, a petition for real property tax abatement consideration for property identified as
4411 Quality Drive was filed with the City Clerk by GVW Realty, LLC 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
The petitioner, GVW Realty, LLC intends to construct a 30,635 square foot building addition to an
existing building located at 4411 Quality Drive. The existing building is occupied by a tenant, Best
One Tire. The new addition will be occupied by another tenant, Premier Bandag #3. The new
addition will be primarily made of steel, masonry, and concrete materials. The estimated cost of the
new addition is $1,500,000.
Premier Bandag #3, a franchisee of Bandag and Bridgestone Commercial Services Group, recycles
used truck tires by retreading them for reuse primarily for semi - trucks and buses. Premier Bandag #3
has operated in the area since 1989. With this project they will be relocating from a facility on Nome
Street in Mishawaka which involves the transfer of 15 full time positions and l part time position.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235 -9660 574/235 -9371 ELIZABETH LEONARD
FAx: 574/235 -9469 574/235 -9371
RE: Tax Abatement for GVW Realty, LLC
June 22 , 2011
Page 2
The project is vital to the future growth of Premier Bandag #3 because it will enhance the
Company's image and level of services it provides to its largest customer (Best One Tire) which will
be located next door.
Assuming a seven year abatement term is approved at the Confirming Resolution, the total taxes to
be abated during that term are estimated at $ 185,279. Total taxes to be paid during the seven year
term are estimated at $130,537.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create fifteen (15) new, permanent full -time
positions and one (1) part-time position with total wages estimated at $450,000.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been granted or
been associated with one previous ten (10) year real property tax abatement which was approved
on October 23, 2000.
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 up to a six year real property tax abatement under Section 2 -83.1, Warehouse
Development in the Economic Development Target Areas, Urban Enterprise Zone and
Redevelopment Blighted Areas.
* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
23- Jun -11
GVW Realty, LLC
Public Benefit Points Summary
Qualify
Earned
Available
Public Benefit Item:
Y or N
Points
Points
Proiect Related:
1. A.
Redevelop a Site that has Special Needs
N
0
49
B.
Develop Based on Local University Research
N
0
35
C.
Achieve a Physical Element of a Plan
N
0
36
Sub -total Project Related:
0
120
2. Super Size Proiects (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
N
0
20
C.
Require Employees vs. Independent Contract(
Y
19
19
D.
Require Target Wage Levels
N
0
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:
99
141
4. Waae & 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
g
Sub -totaf 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
Y
35
35
D.
Provide Targeted Hiring Preference
N
0
34
Sub -total Workforce Related:
118
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:
434
1000
* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
GVW Realty, LLC
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 Projects:
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: 434
Base Years of Abatement 3
Additional Years of Abatement
Total Years of Abatement: 6
O CA �ICD
x
D
0 0 0
CD
v
n�vv
v
CD
0
cn
3
IV N N N N N
CCDD
CD
x x
x
Cnc cnCAC-nM <m
1 N
(
*
CD CD
000000g? vi
DCD
>
°o °o °o °o oo m a
s-a
oo
W cn
v� v
m
avCD
33cNC—D
C.
0
-�s
CD
pav
CD CD
CD CD
m
�m
me
.v�
000000)
0
0 =
y D-
m 0 v
0) c
cQ cCc
WwwwWw G�
�_
CD m
o>
CD
-0
(A � Fn.
D � D
� m
Cv
3 � �'
M X o
a- y ai
1--,
00 00 00 00 00 00 x Cn
m
�
a; a
m
su
m
a
o
v '
CD 3'
3'3
CD CD
��v
0
C
cDc
^'
0
�
�
�
0
00053 . n
-r
C C
:
00000
-h
C
DO
y y y y y
c
O
Q3 a
NNNNNN C'n
.h
Q
N
v
m cnn
O
CD
CD l<
n�
S CD O
m
fig
n
a
=
:D LL D
_w fig
1'
3
r*
c w
CJiNNNNNN
0
3
m30
�wwwwwwly CD
0 0) 0) 0 0) 0) O x
CD x U)
CL C
y
`
v 3
fig fig
ty
CD
s n
W
0) �
G) >
O Ul Cn
> CD
00
CV 77 O
0 a
N w
W v�
- �WCT�0000v o
1l,AOOCnO CD
C0 co
coCn
00
OO
-I000
o 0 0 0 0 o CD
\ \ \ \\ \ate
\o
00
v
x
v
CD
00 - �NW�c�i�D
Cn co V 0) 4 � N Q'
N CC) CO W -1 -1 0
CD00wO x
m
x
-CA
W �• W N �
�
(CZ
N
w
O W� 0 -I V
v, a) -4 w 00 Co -�
D
c
I�
w00�—oCn -CA v
4wCDw0cnoax
<
fig
C-n m cn
W
N -4 -4 -4 v-4 --4 m
o
0000000
00
x Cc
�oc000 -4 Ocn o0
N O -' W 4 4 V a v
cj, --I
�I co CO 00 O PO
N N O co 4
la � cD N
* N