HomeMy WebLinkAboutNo. 1415 approving an application for personal property tax deduction (Masterbilt, Inc., 325 S. Walnut St.)RESOLUTION NO. 1415
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 years
of personal property tax abatement consideration from Masterbilt, Inc., for personal property
located at 325 South Walnut Street in the West Washington - Chapin Development Area, the
legal description of which is attached hereto, marked Exhibit "A" and incorporated herein;
and
WHEREAS, this Commission declared the West Washington - Chapin Development
Area by Resolution No. 818, adopted October 23, 1987, and in the same resolution declared
the West Washington - Chapin Allocation Area (South Bend Allocation Area No. 7) and
WHEREAS, the property located at 325 South Walnut Street is located within the
West Washington - Chapin Allocation Area (South Bend Allocation Area No. 7);
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission as follows:
1) The Commission finds that the application from Masterbilt, Inc. for five years of
personal property tax abatement consideration for property located at 325 South Walnut
Street in the West Washington - Chapin Allocation Area (South Bend Allocation Area No. 7)
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
Masterbilt, Inc.
Approved this 2nd day of February, 1996, at the regularly scheduled meeting of the
South Bend Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
Paula N. Auburn, President
ATTEST:
William P. Hojn c , Secretary
ML:res1415
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PEACE
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City of South Bend
Joseph f:. Kernan. Mayor
Community & Economic Development
Jon R. Hunt
Executive Director
Ann E. Kolata
Deputy Executive Director
MEMO#MNOUM
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: MICHAEL BEITZINGERMY
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
MASTERBILT, INC.
325 SOUTH WALNUT STREET
DATE: January 30, 1996
On January 30, 1996, a petition for tax abatement consideration for personal property
located at 325 South Walnut Street, was filed with the City Clerk by Masterbilt, Inc.
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
Masterbilt, Inc. is a machine shop that supports the aerospace industry. Masterbilt
mainly produces components for fuel controls for Allied Signal and other aerospace
manufacturers. Their project calls for the purchase of one CNC 5 -axis turning center. The
new turning center is necessary to maintain quality and productivity. The total estimated
cost of the new equipment is $ 105,000.
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- MasterbiIt
January 30, 1996
Page 2
Per the petition, it is estimated that this project will create one (1) new permanent
full -time jobs within the first year, representing an annual payroll of $25,000 and will
maintain nine (9) full -time and part -time jobs, representing an annual payroll of $250,000.
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, however,
the property is located in the Economic Development Target Area and the Urban
Enterprise Zone.
4. A review of the Redevelopment designation areas finds that the property is located
in the West Washington /Chapin 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).
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MASTERBILT, INC.
5 Year Personal Property Abatement Schedule
Total estimated Equipment Cost:
Assume constant tax rate of:
TTV Assessed
Year
TTV%
(Year 5 -8)
Value
1
40
$42,000
$14,000
2
56
58,800
19,600
3
42
44,100
14,700
4
32
33,600
11,200
5
24
25,200
8,400
Without Abatement:
With Abatement:
Amount Abated:
30- Jan -96
$105,000
15.4932
100% Tax
Tax
Tax
Rate
Abated
Paid
$2,169
$2,169
$0
3,037
2,885
152
2,278
1,822
456
1,735
1,128
607
1,301
651
651
$10,520
$8,655
$1,865
$10,520
1,865
81655
MASTERBILT, INC.
EXHIBIT A
Key Number DESCRIPTION
18 3076 3053 LOT 34 EX 6 X 20 FT SW COR & N 1/2 VAC ALLEY SOUTH AND
AD KNOBLOCKS SUB BOL 84
18 3076 305401 E 48 FT OF LOT 43 KNOBLOCK SUB OF B.O.L.84
18 3076 3055 33 FT N SIDE LOT 39 & S1 /2 VAC ALLEY KNOBOCKS SUB BOL 84
N OF RR
18 3076 3058 33 FT S END LOT 40 KNOBLOCKS SUB BOL 84 N OF RR
18 3076 3060 LOT 41 EX SW PT NE COR LOT 42 KNOBLOCKS SUB BOL 84 N OF RR
18 3076 3057 16 1/2 FT N SIDE LOT 4 & 16 1/ FT LOT 39 KNOBLOCKS SUB BOL 84 N OF RR