HomeMy WebLinkAboutNo. 1450 approving an application for personal property tax deduction (Total Enterprises, LTD, 3333 W. Lathrop St.)RESOLUTION NO. 1450
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 personal 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 years of
personal property tax abatement consideration from Total Enterprises, LTD, for personal
property located at 3333 West Lathrop 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 Area, Allocation Area No. 1; and
WHEREAS, the property located at 3333 West Lathrop Street is located within the
Airport Economic Development 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 Total Enterprises, LTD, for five years
of personal property tax abatement consideration for property located at 3333 West Lathrop
Street in the Airport Economic Development 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 Total
Enterprises, LTD.
Approved this 6 day of September 1996 at the regularly scheduled meeting of the South
Bend Redevelopment Commission.
ATTEST:
William P. nac Secretary
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SOUTH BEND REDEVELOPMENT CONNUSSION
Paula N. Auburn, President
EXaIBIT A - LEGAL DESCRIPTION
PARCEL I:
A tract. of land in. the Southeast Quarter of Section Twenty -eight
(2s) Township Thirty-eight . (3 8 ) North, Range Two ( 2 ) East,
German Township,-..-St- Joseph.County, Indiana, des =ibed as
follows; .
Commencing at the Southeast corner of said Section Twenty -eight
(28); thence South 90 degrees 00 minutes 00 seconds West on and
along the South line of said Section Twenty -eight (28), said
line being also the center line of Lathrop Street (formerly
Douglas Road) a distance of 990.00 feet; thence North 0 degrees
10 minutes 55 seconds East a distance of 20.00 feet to the North
line of Lathrop Street (formerly Douglas Road) and the true
place of beginning; thence continuing on a bearing of North 0
degrees to minutes 55 seconds East a distance of 620 feet;
thence North 90 degrees 00 minutes 00 seconds East a distance of
447.97 feet; thence South 00 degrees 00 minutes 00 seconds West
a distance of 620 feet to the North line of Lathrop Street
(formerly Douglas Road); thence South 90 degrees 00 minutes 00
seconds West on and along the North line of said Lathrop Street
(formerly Douglas Road) a distance of 449.94 feet to the place
of beginning, EXCEPTING T'EREF'ROM a tract of land in the
Southeast Quarter of Section Twenty -eight (28), Township
Thirty-eight (38) North, Range Two (2) East, German Township,
St. Joseph County, Indiana, described as follows: Beginning at
the Southeast corner of said Section Twenty -eight (28); thence
Westerly on and along the South line of said Section
Twenty -eight (28); said line also being the center line of
Lathrop Street, a distance of 540.00 feet; thence North 00
degrees 00 minutes 00 seconds East a distance of 20.00 feet to
the true place of beginning, said point also being on the
existing North right -of -way of Lathrop Street; thence South 90
degrees 00 minutes 00 seconds West a distance of 449.94 feet;
thence North 00 degrees 10 minutes 55 seconds East a distance of
20.00 feet; thence North 90 degrees 00 minutes 00 seconds East
a distance of 449.88 feet; thence South 00 degrees 00 minutes 00
seconds West a distance of 20.00 feet to the place of beginning.
Subject to legal highways.
PARCEL II:
A part of the Southeast Quarter of Section Twenty -eight (gin,
Township Thirty -eight (38) North, Range Two (2) East,
Township, St. Joseph County, Indiana, described as follows;
Commencing at the Southeast corner of said Section;
thence North
90 degrees 00 minutes 00 seconds West 540.00 feet along the
South line of said Section; thence North 0 degrees 00 minutes 00
seconds West 640.00 feet to the point of beginning of this
description; thence South 90 degrees 00 minutes 00 seconds West
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F.XiiIB I i A - CONT' D
447.97 feet; thence North 0 degrees 10 minutes 55 seconds East
151.26 feet; thence Southeasterly 34.57 feet along an arc to the
left having a radius of.480.00 feet and subtended by a long
chord. having a bearing'.cf South 87 degrees 58 minutes 20 seconds
East.,*
ast. and'. a -' length+ of 34:. 56 feet; thence South 90 degrees 00
minutes 00 seconds East 412.96 feet; thence South 0 degrees 00
minutes 00 seconds West 150.03 feet to the point of beginning.
SubjecZ to legal highways.
PARCEL III:
A part of the Southeast Quarter of Section Twenty -eight (28),
Township Thirty-eight (38) North, Range Two (2) East, St. Joseph
County, Indiana, described as follows:
Commencing-at the Southeast corner of said Section;
thence North
90 degrees 00 minutes oo seconds West 540.00 feet along the
South line of said Section; thence North 00 degrees 00 minutes
00 seconds West 40.00 feet to the point of beginning of this
description; thence North o0 degrees oo minutes 00 seconds West
750.03 feet; thence North 90 degrees 00 minutes 00 seconds East
44.05 feet; thence Easterly 25.96 feet along an arc to the sight
having a radius of 506.47 feet and subtended by a long chord
having a bearing of South 88 degrees 31 minutes 54 seconds East
and a length of 25.96 feet; thence South 00 degrees 00 minutes
00 seconds West 749.36 feet; thence North 90 degrees oo minutes
o0 seconds West 70.00 feet to the point of beginning.
Subject to legal highwaYs .
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PF:ACF:, City of South Bend
a� Joseph E. Kernan. Mayor
_1865
Community & Economic Development
Jon R. Hunt
Executive Director
MEMORANDUM
Ann E. Kolata
Deputy Executive Director
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: MICHAEL BEITZINGERO
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
TOTAL ENTERPRISES, LTD.
3333 WEST LATHROP STREET
DATE: AUGUST 5, 1996
On August 2, 1996, a petition for tax abatement consideration for personal property
located at 3333 West Lathrop Street, was filed with the City Clerk by Total Enterprises,
Ltd. 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 -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 DESCRIPTION
Total Enterprises manufactures tooling primarily for use in the automotive and office
furniture industries. They operate from a customer print through their CAD /CAM system
to produce a pattern from which an aluminum cast is made. These castings are then
machined and assembled into a finished operating tool. Such products as office and
automotive seats, arm rests, head rests, fire walls, floor pans and head liners are made
from the tools. Their project calls for the purchase of one Partner CNC Bridge Type
Machine, one 10,000# Linde -Baker Lift Truck, one Jason Time project time tracking
software package, one EDM Workstation, one reconditioned Easco Model B EDM Machine
and one toshiba 2550 Copier. The petitioner has indicated that the new equipment is
necessary to produce larger tooling more competitively. The total estimated cost of the
new equipment is $241,879.
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 -Total Enterprises
August 5, 1996
Page 2
Per the petition, it is estimated that this project will create six (6) new permanent
full -time jobs within the first year, representing an annual payroll of $167,450 and will
maintain forty seven (47) full -time and part -time jobs, representing an annual payroll of
$1,400,000.
REPORT SUMMARY
1. A review of the tax abatements previously granted finds that the petitioner has not
been granted any previous tax abatement consideration.
2. The building commissioner has reviewed the petition and finds the property to be
properly zoned for the proposed use.
3. A review of the tax abatement designation areas finds that the property is not
located in an area presently designated as a Tax Abatement Impact Area nor is it
located in the Economic Development Target Area.
4. 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 petition first requires the approval of the South Bend
Redevelopment Commission.
5. A review of the Tax Abatement Ordinance (No. 8065 -90) 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).
Tax Abatement Schedule prepared for:
TOTAL ENTERPRISES, LTD.
5 Year Personal Property Abatement Schedule
Total estimated Equipment Cost:
Assume constant tax rate of:
(combined rate factoring in SRTC)
TTV
Year TTV%
(Year 5 -8)
1 40
$96,752
2 56
135,452
3 42
101,589
4 32
77,401
5 24
58,051
05- Aug -96
Without Abatement: $19,840
With Abatement: 3,518
Amount Abated: 16,322
$241,879
12.6841
Assessed
100% Tax
Tax
Tax
Value
Rate
Abated
Paid
$32,251
$4,091
$4,091
$0
45,151
5,727
5,441
286
33,863
4,295
3,436
859
25,800
3,273
2,127
1,146
19,350
2,454
1,227
1,227
$19,840
$16,322
$3,518
Without Abatement: $19,840
With Abatement: 3,518
Amount Abated: 16,322