HomeMy WebLinkAboutNo. 1379 approving an application for personal property tax deduction (South Bend Absorbtech, LLC, 3900 William Richardson Dr.)RESOLUTION NO. 1379
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 South Bend Absorbtech, L.L.C. for
personal property located at 3900 William Richardson 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 3900 William Richardson 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 South Bend Absorbtech, L.L.C. for
five years of personal property tax abatement consideration for property located at 3900
William Richardson Drive in the Airport Economic Development Allocation Area, Allocation
Area No. 1, 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
South Bend Absorbtech, L.L.C.
Approved this 20th day of October 1995, at the regularly scheduled meeting of the
South Bend Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
FU-
i
ATTEST:
Robert W. Hunt, Secretary
ML:Res1379
The "Premises" subject to this Agreement shall be that portion of the land legally described
below which lies south of the William Richardson Drive (extended) right -of -way.
20 acres of land off the Fast end of the South half of the Northwest Quarter of Section 21,
Township 38 North, Range 2 East excepting therefrom the following: A part of the South
Half of the Northwest Quarter of Section 21, Township 38 North, Range 2 East, St. Joseph
County, Indiana, described as follows: Beginning on the South line of said quarter Section,
South 88' 57' 48" West 160.62 feet from the Southwest corner of said Quarter Section; thence
South 88' 57' 48" West 501.97 feet along said South line to the Southwest corner of the
owner's land; thence North 0° 52' 00" West 221.16 feet along the West line of the owner's
land; thence Southeasterly 548.23 feet along an arc to the right having a radius of 4,718.66
feet and subtended by a long chord having a bearing of South 67° 13' 54" East and a length of
547.92 feet to the point of beginning.
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City of South Bend
Joseph E. Kernan. Mayor
Community & Economic Development
Jon R. Hunt Ann E. Kolata
Executive Director Deputy Executive Director
MEMORANDUM
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: DEPT. OF COMMUNITY & ECONOMIC DEVELOPMENT - MICHAEL BEITZINGER
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
SOUTH BEND ABSORBTECH °, L.L.C.
3900 WILLIAM RICHARDSON DRIVE
DATE: October 16, 1995
On October 16, 1995, a petition for tax abatement consideration for personal property
located at 3900 William Richardson Drive was filed with the City Clerk by South Bend
Absorbtech®, L.L.C. 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.
The petitioner is in the business of industrial laundering. They have developed a
launderable sorbent product, called Sorbits®, that is a practical and cost effective
alternative for the disposal of material saturated with industrial process fluids in an
environmentally friendly manner. Their dry cleaning process captures these fluids so they
can be reused or safely disposed of, and not landfilled. The overall project calls for the
construction of a 40,000 square foot dry cleaning facility on 12 acres of land in the Toll
Road Industrial Park. The total estimated cost of the building is $1.2 million.
1 200 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
Absorbtech L.L.C.
October 16, 1995
Page 2
This petition for tax abatement deals with the machinery and equipment to be installed
at the new facility. The total estimated cost of new machinery and equipment is now at
$1.3 million, while it is expected that $674,000 will be eligible for tax abatement.
As indicated on Absorbtech's real property tax abatement petition, it is estimated that
the project will create twenty three (23) new permanent jobs within the first year
representing a new annual payroll of $530,000.
1. A review of the tax abatements previously granted finds that the petitioner was
granted a six year real property tax abatement through resolution no. 2251 -95
passed on June 12, 1995.
2. The building commissioner has reviewed the project and has found the property to
be properly zoned for the proposed use.
3. A review of the tax abatement maps finds that the property is not located in an area
presently designated as a Tax Abatement Impact Area by the South Bend Common
Council.
4. A review of the Redevelopment Allocation areas finds that the property is located
in the Airport Economic Development Area, which is a Tax Incremental Financing
Allocation Area, therefore, the petition 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
meets the qualifications for a five (5) year personal property tax abatement under
section 2 -84.2 (Tangible Personal Property Tax Abatement).
SOUTH BEND ABSORBTECH, LLC
5 Year Personal Property Abatement Schedule
Total estimated Equipment Cost: $604,000
Assume constant tax rate of: 15.4932
Tax
Abated
$12,477
16,595
10,481
6,488
3,743
$49,784
17- Oct -95
Tax
Paid
$0
873
2,620
3,494
3,743
$10,730
TTV
Assessed
100% Tax
Year
TTV%
(Year 5 -8)
Value
Rate
1
40
$241,600
$80,533
$12,477
2
56
338,240
112,747
17,468
3
42
253,680
84,560
13,101
4
32
193,280
64,427
9,982
5
24
144,960
48,320
7,486
$60,514
Without Abatement:
$60,514
With Abatement:
10,730
i
Amount Abated:
49,784
Tax
Abated
$12,477
16,595
10,481
6,488
3,743
$49,784
17- Oct -95
Tax
Paid
$0
873
2,620
3,494
3,743
$10,730