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Home My WebLink AboutNo. 1456 approving an application for real property tax deduction (Nimet Industries, Inc., 2424 Foundation Dr.)RESOLUTION NO. 1456 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 six years of real property tax abatement consideration from Nimet Industries, Inc. for real property located at 2424 Foundation 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 located at 2424 Foundation 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 Nimet Industries, Inc. for six years of real property tax abatement consideration for property located at 2424 Foundation 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 Nimet Industries, Inc. Approved this 6th day of September 1996, at the regularly scheduled meeting of the South Bend Redevelopment Commission. SOU END REnDEIVEL MENT COMMISSION . Paula N. Auburn, President ATTEST: William P. H acki, Secretary js:ann/res1456 EXHIBIT A A parcel of land in part of the South Half of Section 28, Township 38 North, Range 2 East, German Township, St. Joseph County, Indiana, described as follows: Commencing at the southeast corner of said Section; thence North 90 degrees 00 minutes 00 second's West 2642.71 feet to the southeast ,corner of the Southwest Quarter of said Section; thence South 89 degrees 57 minutes 33 seconds West 171.27 feet; ihenca North 0 degrees 00 minutes 47 seconds East 528.56 feet; thence South 89 degrees 59 minutes 13 seconds East 40 feet to the point of beginning of this description: thence North 0 degrees 00 minutes 47 seconds East 375.00 feet; thence South 89 degrees 59 minutes 13 seconds East 450.00 feet; thence South 0 degrees 00 minutes 47 seconds West 375.00 feet; thence North 89 degrees 59 minutes 13 seconds West 450.00 feet to the point of beginning and containing 3.874 acres, more or less. The bearing of the South line of the Southeast Quarter of Section 28 is assumed North 90 degrees 00 minutes 00 seconds West. EJSOIO8O y y�Lct `SOU T1f BE U PEncr: 1865s City of South Bend Joseph E. Kernan. Mayor Community & Economic Development Jon R. Hunt Executive Director MEMORANDUM Ann E. Kolata Deputy Executive Director TO: SOUTH BEND REDEVELOPMENT COMMISSION FROM: MICHAEL BEITZINGERjN SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: NIMET INDUSTRIES, INC. 2424 NORTH FOUNDATION DRIVE DATE: AUGUST 26, 1996 On August 26, 1996, petitions for tax abatement consideration for real and personal property located at 2424 North Foundation Drive, were filed with the City Clerk by Nimet Industries, Inc. Pursuant to Chapter 2, Article 6, Section 2 -77 of the Municipal Code of the City of South Bend, these petitions were 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 -1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petitions (copies of which are attached), investigated the area and makes the following report. PROJECT DESCRIPTION Nimet Industries is in the industrial coatings business servicing high -end users of Apk industrially coated products. Nimet applies various coatings to machinery and equipment to enable products to perform at high tolerances in extremely adverse conditions. Their project calls for the building of a 24,000 square foot addition to the facility on Foundation Drive at a cost of $1,000,000, and will add new manufacturing equipment at a cost of $750,000 bringing the total project cost to $1,750,000. 1200 County -City Building • South Bend, Indiana 46601.219/235 -9371 • Fax (219) 235 -9021 • TDD (219) 235 -5567 Redevelopment Business Assistance Bureau of Housing Financial & Program Planning & Ann E. Kolata & Development Kathryn Baumgartner Management Neighborhood Development 235 -9371 Donald E. Inks 521 Eclipse Place Elizabeth Leonard Pamela C. Meyer 235 -9335 235 -9475 235 -9335 235 -9660 Fax: 235 -9469 Fax: 235 -9697 Redevelopment Commission Tax Abatement -Nimet Industries August 26, 1996 Page 2 Per the petition, it is estimated that this project will create nine (9) new permanent full -time jobs within the first year, representing an annual payroll of $190,000 and will maintain seventy (70) permanent full -time and five (5) permanent part -time jobs, representing an annual payroll of $1,500,000. REPORT SUMMARY 1. A review of the tax abatements previously granted finds that the petitioner has been granted two previous tax abatements. The first, a three year real property abatement granted on October 22, 1990 through resolution no. 1819 -90 and the second, a five year personal property abatement granted on May 11, 1992 through resolution no. 1941 -92. The petitioner is in compliance with the reporting requirements for the previous abatements. 2. The building commissioner has reviewed the petitions and finds the property to be properly zoned for the proposed use. 3. A review of the Redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petitions first require the approval of the South Bend Redevelopment Commission. 4. A review of the tax abatement ordinance (no. 8065 -90) finds that the petitioner meets the qualifications for a six (6) year real property tax abatement under Section 2 -82 (Industrial Development -City Wide) and meets the qualifications for a five (5) year personal property tax abatement under Section 2 -84.2 (Tangible Personal Property Tax Abatement). Tax Abatement Schedule prepared for: 27- Aug -96 NIMET INDUSTRIES, INC. 6 Year Real Property Abatement Schedule* Total estimated Project Cost: $1,000,000 Base Assessed Value: $333,333 (approx. 1/3 project cost) Assume constant tax rate of: 14.0121 (combined rate factoring in SRTC) * - This schedule is for estimation purposes only and may not reflect the true tax values, which will be determined by the actual assessed valuation. Assessed Tax Tax Year % Abated Value Abated Paid 1 100 $0 $46,707 $0 2 85 50,000 39,701 7,006 3 66 113,333 30,827 15,880 4 50 166,667 23,354 23,354 5 34 220,000 15,880 30,827 6 17 276,667 7,940 38.767 $164,409 $115,833 Without Abatement: $280,242 With Abatement: 115,833 Amount Abated: 164,409 * - This schedule is for estimation purposes only and may not reflect the true tax values, which will be determined by the actual assessed valuation.