HomeMy WebLinkAboutNo. 1113 approving an application for personal property tax deduction (Mack Tool & Engineering, Inc.)RESOLUTION NO. 1113
A RESOLUTION APPROVING AN APPLICATION FOR
PERSONAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6 -1.1- 12.1 -2(j) 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 Mack Tool & Engineering, Inc., for personal property located
at 2820 Viridian 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 Area, Allocation Area No. 1; and
WHEREAS, the property located at 2820 Viridian Drive 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 Mack Tool &
Engineering, Inc., for five years of personal property tax
abatement consideration for property located at 2820 Viridian Drive
in the Airport Economic Development 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 Mack Tool &
Engineering, Inc.
Approved this 6th day of November 1992, at the regularly
scheduled meeting of the South Bend Redevelopment Commission.
ATTEST:
A
Michael Donoho, Secretary
Res1113
SOUTH BEND REDEVELOPMENT COMMISSION
Paula N. Auburn, President
i
49 X N D=T is
LEGAL IDESCIRIPTIC"= AIRPORT INDUSTRIAL PARK - I,OT 5 -3A:1
A PART of the Southeast (guar-ter or Sec t i orr 28, Townsh i tr 30 North,
Ranqe 2 East, of the Second Principal Meridian, City of South
Bend, St. Joseph County, Indiana and described as follows:
COMMENCING at the Northeast corner of tyre Southeast (Ulmer of
said Section 28, said point beinq at the intersection of Bendix
and Boland Drives; thence South 89 058'56" West (bearirrq assume)
a.l onq the Southerly r i cih t -o f -way line o f Bo I and Dr- i ve 1 2h2 . 51
feet to the Point of Beqinninq; thence South 00 021'33" West,
293.00 feet; thence South 89 °58'56" West, 260.00 feet; thence
North 00 021'33" East, 293.00 feet; thence North 89 058'56" East,
260.00 feet to the Point of Beginninq and r_oritaininq 1.75 acres,
more or less,.and is subject to all easements, restrictions and
or covenants of record.
PREPARED FOR: 114DUSTRIAL FOUNDATION
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S0335
STAIE
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Groma K.• Bhagavan, Registered Land Surveyor No. S038
Valley Engineering Consultants, Inc. A PART of THE SOUTHEAST QUARTER OF
14887 State Road 23 SECTION 28, TOWNSHIP 38 NORTH,
Granger , Indiana 46530. RANGE 2 EAST, SECOND PRINCIPAL
Phone 219-277-9075 MERIDIAN, CITY OF SOUTH BEND,
ST. JOSEPH COUNTY
Professional Engineers-al-and Surveyors INDIANA
bRAWN By CHECKED RY SCALE " ^-,T DATE � ^ ^ JOB N0, r ^
City of South Bend
Joseph F. 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 BEITZINGERMI1a
SUBJECT: TAX ABATEMENT PETITION
MACK TOOL AND ENGINEERING, INC.
2820 VIRIDIAN DRIVE
DATE: NOVEMBER 6, 1992
On October 29, 1992, a petition for tax abatement consideration for personal
property located at 2820 Viridian Drive was filed with the City Clerk by Mack Tool and
Engineering, 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 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 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 a precision machine shop which manufactures prototype and
experimental parts primarily for use in the medical and aerospace industries. Their
project calls for the installation of a EDM Machine, a VMC 4020 Machine, three VMC 2020
Machines, a CNC Lathe, a Control Lazer Etcher and a CAD /CAM System with a RAM Optical
Camera. This equipment will increase production capacity by over 20 %. The total
estimated cost of the equipment is $458,000.
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
Elizabeth Leonard
235 -9335
Planning &
Neighborhood Development
Pamela Mcycr
235 -9449
a
The project will create three (3) new permanent full -time jobs in the first year,
representing an annual payroll of $135,000 and will maintain twenty (20) existing
permanent full -time and existing part -time jobs with an annual payroll of $712,625.
OTHER ITEMS
1. The petitioner was granted a real property abatement, resolution number 1767 -90, on
February 12, 1990 and a personal property abatement, resolution number 1768 -90, on
February 12, 1990. The petitioner is in compliance with the reporting requirements
for those abatements.
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
Redevelopment Commission
scheduled meeting on Friday
attached.
Tax Incremental Financing Allocation Area. The
considered this abatement petition at its regularly
, November 6, 1992. A copy of their resolution is
6. The petitioner qualifies for 5 years of personal property tax abatement under Section
2 -84.2 (Tangible Personal Properly Tax Abatement) of the Tax Abatement Ordinance (No.
8065 -90).
04- Nov -92
5 YEAR
Personal Property Abatement Schedule
Total estimated Equipment Cost: $458,000
Assume constant tax rate of: 14.1075
TCV
Assessed
100% Tax
Tax
Tax
Year
TCV%
5( 8 yr)
Value
Rate
Abated
Paid
1
40
$183,200
$61,067
$8,615
$8,615
$0
2
56
256,480
85,493
12,061
11,458
603
3
42
192,360
64,120
9,046
7,237
1,809
4
32
146,560
48,853
6,892
4,480
2,412
5
24
109,920
36,640
5,169
2,585
2,585
Without Abatement:
$41,783
t34,37
With Abatement:
7,409
Amount Abated:
34,374