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HomeMy WebLinkAboutNo. 1849 approving an application for real property tax deduction (110 S. Hill St.)RESOLUTION NO. 1849 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 ten years of real property tax abatement consideration from J & J Leasing, LLC (Underwriters Laboratories/ Environmental Health Laboratories), for real property located at 110 South Hill Street in the South Bend Central Development Area, the legal description of which is attached hereto, marked Exhibit "A" and incorporated herein; and WHEREAS, this Commission declared the South Bend Central Development Area by Resolution No. 737, adopted May 10, 1985, and in the same resolution declared the South Bend Central Development Area, Allocation Area No. 1 A; and WHEREAS, the property located at 110 South Hill Street is located within the South Bend Central Development Area, Allocation Area No. IA; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1) The Commission finds that the application from J & J Leasing, LLC (Underwriters Laboratories/ Environmental Health Laboratories), for ten years of real property tax abatement consideration for property located at 110 South Hill Street in the South Bend Central Development Area, Allocation Area No. 1 A, 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 J & J Leasing, LLC (Underwriters Laboratories/ Environmental Health Laboratories). Approved this 19th day of October 2001 at the regularly scheduled meeting of the South Bend Redevelopment Commission. SOUTH BEND REDEVELOPMENT COMMISSION Robert W. Hunt, President ATTEST: Marcia Jones, Vice -- President 1m:Resl849 L*1;1G� The commonly known addresses of the properties being developed are: 110 S. Hill Street, 616 East Washington Street, 109 South St. Louis Street, and 524 East Washington Street. A legal description of the above addresses are: That part of the Northeast Quarter of Section 12, Township 37 North, Range 2 East, Portage Township, City of South Bend, St. Joseph County, Indiana which is described as: Lots 171 and 172 of the Plat of "Samuel L. Cottrell's Addition to the City of South Bend" as recorded in Plat Book #1 on Page #49 the Records of the St. Joseph County, Indiana Recorder's Offce and Lot #178A of the Plat of " Cottrell's Addition First RePlat" as recorded in the records of said recorder and also the proposed Vacated 14 Ft. Wide North and South Alley located between said lots described above. Containing 1.14 Acres more or less. Subject to all legal highways, easements and restrictions of record. Avpl Lots or parts of Lots as shown on the recorded Plat of Samuel L. Cottrell's First Addition to the Town of Lowell, now within and a part of the City of South Bend, in St. Joseph County, Indiana, viz: The East Half of Lots numbered One Hundred Seventy -Seven (177) and One Hundred Seventy -eight (178), and A lot or parcel of land 33 feet in width, East and West, taken off of and from the entire length of the East side of the West Half of Lots Numbered One Hundred Seventy -Seven (177) and One Hundred Seventy -Eight (178), and Part of Lot Numbered One Hundred Seventy -Nine (179) described as beginning at the Northeast corner of said Lot 179; running thence West on the North line of said lot, 120 feet; thence South 33 feet; thence East 120 feet; thence North 33 feet to the place of beginning. A lot or parcel of land 49 1/2 feet in width, East and West, taken off of and from the entire width of the West ends of Lots Numbered One Hundred Seventy - Seven (177) and One Hundred Seventy -Eight (178) as shown on the recorded Plat of Samuel L. Cottrell's First Addition to the Town of Lowell, now within and a part of the City of South Bend, excepting therefrom a strip of land 12 feet in width, North and South, taken off of and from the entire width of the South end thereof. More commonly known as 616 E. Washington Street, South Bend, Indiana. A lot or parcel of land 46 feet in width, East and West, taken off of and from the entire width of the West Ends of Lots Numbered One Hundred Sixty -Four (164) and One Hundred Sixty -five (165) as shown on the recorded Plat of Samuel L. Cottrell's Addition to the Town of Lowell, now within and a part of the City of South Bend Part of Lots numbered One Hundred Sixty -Four (164) and One Hundred Sixty -Five (165) as shown on the recorded Plat of Samuel L. Cottrell's Addition to the Town of Lowell, now within and a part of the City of South Bend, described as beginning at a point 36 feet West of the Northeast Corner of said Lot Numbered 164 on the North line of said lot; thence running South 88 feet; thence West 12 feet; thence North 88 feet to the North line of said Lot numbered 164; thence East 32 feet to the place of beginning. The Key Number(s) of said property are: 18-5011-0307, 18-5011-0308, 18-5011-0309, 18-5011-0310, 18-5011-0321, 18-5011-0322, 18-5011-0322, 18-5011-0321.01, 18- 5010 -0297, 18- 5010 -0294 1200 COUNTY -CITY BUILDING Souni BEND, INDUNA 46601 -1830 PHONE 219 /235 -9371 FAx 219/235 -9021 TDD 219/ 235 -5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT ,JON R. HUNT EXECUTIVE DIRECTOR TAX ABA TEMENT REPORT TO: SOUTH BEND REDEVELOPMENT COMMISSION FROM: MICHAEL BEITZINGER SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: J & J LEASING, LLC (Underwriters Laboratories /Environmental Health Labs) (W 110 S. HILL STREET DATE: OCTOBER 15, 2001 On October 15, 2001, a petition for real property tax abatement consideration for property located at 110 S. Hill Street was filed with the City Clerk by Underwriters Laboratories /Environmental Health Labs. Pursuant to Chapter 2, Article 6. Section 2 -77 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 J & J Leasing is the real estate holding company that leases to Environmental Health Laboratories (EHL) located at 110 S. Hill Street. Since 1987, EHL has focused on becoming the nation's largest and most prestigious provider of laboratory analysis for the public water supply industry. EHL has now become the nation's most comprehensive certified facility with certifications for Safe Drinking Water Act compliance monitoring from 47 state agencies. EHL currently provides analyses to thousands of municipalities and hundreds of laboratories and engineering firms across the nation. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 219/235 -9660 219/235 -9371 ELIZABETH LEONARD FAY- 2191235 -9697 2191235 -9371 South Bend Redevelopment Commission RE: Tax Abatement for J & J Leasing (UL /EHL) October 15, 2001 Page 2 In April 2001, EHL was purchased by Underwriters Laboratories (UL). UL wants to continue the tremendous growth that EHL has experienced in the past few years by nearly tripling the size of the facility with a 50,000 square feet building addition. The total cost of the new building is estimated at $7 million. UL will also be investing additional funds for new instrumentation, furniture, fixtures and infrastructure improvements. EMPLOYMENT IMPACT Per the petition, it is estimated that this project will create thirty -two (32) new permanent jobs within the first year, representing a new annual payroll of $1,256,096 (for an average salary of $39,253 per position). The project will also maintain 91 existing permanent full time jobs and 12 part time jobs representing an annual payroll of $3,925,255 (for an average salary of $40,467 per position). The expansion plan will also permit UL to move existing business programs from other UL facilities to the enlarged South Bend facility with the potential for 150 new jobs within the next 5 years. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been granted one previous tax abatement and it is as follows: Term /Type Resolution No. Date 6 year real property 1985 -92 November 9, 1992 The petitioner is in compliance with all of the reporting requirements for the previous abatement. 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 tax abatement designation maps finds that the property is located in an area presently designed as a Tax Abatement Impact Area by the South Bend Common Council. South Bend Redevelopment Commission CWRE: Tax Abatement for J & J Leasing (UL /EHL) October 15, 2001 Page 3 4. A review of the South Bend Redevelopment designation areas finds that the property is located in the South Bend Central Development Area which is a Tax Incremental Allocation Area, therefore the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. 5. A review of the Tax Abatement Ordinance, no. 8065 -90, finds that the petitioner does not fully meet the qualifications for the requested ten year abatement. Although the petitioner's property is located in a Tax Abatement Impact Area, that only qualifies the company for a three year abatement. The petitioner is respectfully requesting consideration of special exception ten year real property abatement. This request would fall under Section 2 -84 of municipal code, which is the Council's Authority to Enlarge Real Property Tax Abatement General Standards. Tax Abatement Schedule prepared for: 15- Oct -01 ENVIRONMENTAL HEALTH LABS South Bend Portage Township 10 Year Real Property Abatement Schedule" Total estimated Project Cost: $7,000,000 Base Assessed Value: $1,400,000 (for base assessed value - assume 1/3 project cost) Assume constant tax rate of: 18.8638 Assume constant SRTC of: 15.1622 " - This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. Assessed Gross Less Net Percent Tax Tax Year Value Tax SRTC Tax Abated Abated Paid 1 $1,400,000 $264,093 $40,042 $224,051 100% $224,051 $0 2 1,400,000 264,093 40,042 224,051 95% 212,848 11,203 3 1,400,000 264,093 40,042 224,051 80% 179,241 44,810 4 1,400,000 264,093 40,042 224,051 65% 145,633 78,418 5 1,400,000 264,093 40,042 224,051 50% 112,025 112,025 6 1,400,000 264,093 40,042 224,051 40% 89,620 134,431 7 1,400,000 264,093 40,042 224,051 30% 67,215 156,836 8 1,400,000 264,093 40,042 224,051 20% 44,810 179,241 9 1,400,000 264,093 40,042 224,051 10% 22,405 201,646 10 1,400,000 264,093 40,042 224,051 5% 11,203 212,848 $2,240,509 $1,109,052 $1,131,457 Total Taxes Due During Abatement: $2,240,509 Total Taxes Abated During Abatement: $1,109,052 Total Taxes Paid During Abatement: $1,131,457 " - This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates.