HomeMy WebLinkAboutNo. 1110 approving an application for real property tax deduction (P.A.I. Properties, 3601 Lathrop St.)cl-�,
RESOLUTION NO. 1110
A RESOLUTION APPROVING AN APPLICATION FOR
REAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6 -1.1- 12.1 -2(j) 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 P.A.I. Properties for real property located at 3601 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 Allocation Area, Allocation Area No. 1; and
WHEREAS, the property located at 3601 Lathrop Street 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 P.A.I.
Properties for six years of real property tax abatement
consideration for property located at 3601 Lathrop Street 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 real property tax abatement for P.A.I. Properties.
Approved this 26th day of October 1992, at the regularly
scheduled meeting of the South Bend Redevelopment Commission.
ATTEST:
Michael Donoho, Secretary
Res1110
SOUTH BEND REDEVELOPMENT COMMISSION
Gu ��c cc
/v
Paula N. Auburn, President
EXHIBIT "A"
A part of the Southeast Quarter of Section 28, Township
38 North, Range 2 East of the Second Principal Meridian,
German Township, St. Joseph County, Indiana and described
as follows:
Commencing at the Southeast corner of said Section 28
said point being at the intersection of centerlines of
Bendix Drive and Lathrop Street, thence North 90 -00 -00
West (bearing assumed) along the South line of the
Southeast quarter of said Section 28 (being along the
centerline of Lathrop) 1423.75 feet; thence North
00 -05 -56 East, 40.00 feet to the point of beginning;
thence North 90 -00 -00 West 454.93 feet; thence North
00 -05 -56 East, 803.76 feet; thence North 45 -40 -30 East,
243.40 feet; thence North 44 -29 -49 East, 191.12 feet to
the South line of 40' easement granted to C.S.S. and
South Bend Railroad; thence South 45 -02 -33 East along the
said southerly easement 202.36 feet; thence South
00 -16 -23 East, 606.98 feet; thence South 00 -05 -56 West,
360.20 feet to the point of beginning and containing
10.226 acres more or less and is subject to 'easements,
restrictions and or covenants of record.
EJS01498
City of South Bend
Joseph E. Kernan, Mayor
Department of Economic Development
Jon R. Hunt
Executive Director
MEMORANDUM
Ann E. Kolata
Deputy Executive Director
TO: HUMAN RESOURCES COMMITTEE OF THE SOUTH BEND COMMON COUNCIL
FROM: DEPARTMENT OF ECONOMIC DEVELOPMENT - MICHAEL BEITZINGER /,f
SUBJECT: TAX ABATEMENT PETITION
P.A.I. PROPERTIES
_ 3601 LATHROP STREET
DATE: OCTOBER 22, 1992
On October 14, 1992, a petition for tax abatement consideration for real property
located at 3601 Lathrop Street was filed with the City Clerk by P.A.I. Properties.
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 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 wether all zoning
requirements have been met.
The Department of Economic Development has reviewed the petition (a copy of which is
attached), investigated the area and makes the following report.
PROJECT DESCRIPTION
The petitioner is the owner of property which is leased to North American Signs,
Inc. North American Signs is a manufacturer of electric signs for local, regional and
national customers. North American Signs also offers' installation, maintenance and sign
1_+ repair. The project calls for a 20,000 square foot expansion of the present facility.
The addition will be primarily used for new production space and approximately one third
will be used for expanded office space. The total cost of new construction is estimated
at $550,000.
1200 County -City Building • South Bend, Indiana 46601 • 219/235 -9371 Fax 219/235 -9021
Redevelopment Business Assistance Housing Rehabilitation
Ann Kolata & Development Kathryn Baumgartner
235 -9371 Donald Inks 521 Eclipse Place
235 -9335 235 -9475
CDBG Program &
Financial Management
F,lizabeth Leonard
235 -9335
Pl;mning &
Neighborhood Development
Pamela Meycr
235-9449
The project will create ten (10) new permanent full -time jobs in the first year
representing an annual payroll of $187,000. The project will also maintain sixty (60)
existing permanent full -time jobs with an annual payroll of $1,900,000.
OTHER ITEMS
1. The petitioner has not been granted, nor applied for any previous tax abatement
consideration.
2. The property is properly zoned for the proposed use. A copy of the report from the
Building Commissioner is attached.
3. The property is not located in an area presently designated as a Tax Abatement Impact
Area by the South Bend Common Council.
4. The property is located in the Airport Economic Development Area.
5. The property is located in a Tax Incremental Financing Allocation Area. The
Redevelopment Commission considered this abatement petition at a special meeting on
Monday, October 26, 1992. A copy of their resolution is attached.
6. The petitioner qualifies for 6 years of real property tax abatement under Section
2 -82 (Industrial Development City Wide) of the Tax Abatement Ordinance (No. 8065 -90).
22- Oct -92
6 YEAR
ILI' Real Property Abatement Schedule
--------------------------------
Total estimated Project Cost: $550,000
Base Assessed Value: $183,333
(Approx. 1/3 Project Cost)
Assume constant tax rate of: 14.1075
$91,040 $ 64,142
Without Abatement: $155,183
With Abatement: 64,142
I Amount Abated: 91,040
Assessed
Tax
Tax
Year
% Abated
Value
Abated
Paid
------------------------------------
1
------------------
100
- - - - -- ------------------
$0
- - - - -- ------------------------
$25,864
$0
2
85
27,500
21,984
3,880
3
66
62,333
17,070
8,794
4
50
91,667
12,932
12,932
5
34
121,000
8,794
17,070
6
17
152,167
4,397
21,467
$91,040 $ 64,142
Without Abatement: $155,183
With Abatement: 64,142
I Amount Abated: 91,040