HomeMy WebLinkAbout18-38 Rew, LLC Confirming Tax Abatement Filed in Clerk's Office
4SOUTH g �
AUG 0 8 2018
Bence
az KAREEMAH FOWLER
%. 1665 x CITY CLERK,SOUTH BEND, IN
CITY OF SOUTHBEND
COMMUNITY INVESTMENT
JAMES MUELLER, EXECUTIVE DIRECTOR
August 8,2018
Council Member Gavin Ferlic,Chairperson
Community Investment Committee
South Bend Common Council
4th Floor,County City Building
South Bend, IN 46601
RE:Real Property Tax Abatement Petition for: REW,LLC
Dear Council Member Ferlic:
Please find the attached information pertaining to a real property tax abatement petition submitted by REW,
LLC to build a new facility located at 5870 W. Carbonmill Dr., South Bend. Shambaugh& Son, a parent
of REW, LLC,has been in the construction/engineering services business since 1926. They are currently
the largest MEP construction services contractor in Indiana and ranked the third largest specialty contractor
in the United States.The company specializes in a full range of new and retrofit construction for industrial,
food processing,commercial,institutional,healthcare,pharmaceutical,and bio-fuel projects.The company
is planning to consolidate its operations and expand its business and employment base.
This petition package includes:
➢ Department of Community Investment's summary report
➢ Petition
➢ Statement of Benefits form
➢ Supporting information
The report contains the Department's findings relative to the above petition. The petitioner proposes to
build a new facility with estimated cost of$1,956,400. The project meets the qualifications for a(6) six-
year real property tax abatement but the company asked for a(4)four-year tax abatement.A representative
from REW,LLC will be available to meet with the Committee on Monday,August 13,2018.
Should you or any of the other Council members have any questions concerning the report, or need
additional information,please feel free to call me at 235-5823.
Sincerely
t.
Dan 1 B ckenmey r
Director Business Development
DANIEL J.BUCKENMEYER ALKEYNA ALDRIDGE PAMELA MEYER Tw GoRCORAN
BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COMMUNITY RESOURCES
EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT
14005 County-City Building 1 227 W.Jefferson Blvd.!South Bend,Indiana 466011 p 574.235.9371 www.southbendin.gov
Filed in Clerkll Uffice - m C;w'k,.'s Office
AUQ 1 AUG 1 ;
KAREEMAH FOWLER BILL NO. 18-38 KAREEMAk
CITY CLERK,SOUTH BEND,IN CITY CLERK,SC .; f ^P=€,,,�.
RESOLUTION NO.
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
Lot 12 US 31 Industrial Park Phase Ii
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FOUR (4) YEAR REAL
PROPERTY TAX ABATEMENT FOR
REW, LLC
WHEREAS, the Common Council of the City of South Bend, Indiana, has
adopted a Declaratory Resolution designating certain areas within the City as Economic
Revitalization Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as
5870 W. Carbonmill Dr., South Bend, IN 46628 and which is more particularly described
as follows:
LOT 12 US 31 INDUSTRIAL PARK PHASE Ii 02-03 NEW REPLAT TR 8044 10-9-01
and which has Key Number 025-1009-015217 be designated as an Economic
Revitalization Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public
hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5;
and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution
designating the area described herein as an Economic Revitalization Area for the
purposes of tax abatement. Such designation is for Real Property tax abatement only and
is limited to four (4) calendar years from the date of adoption of the Declaratory
Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is
qualified for and is granted a real property tax deduction for a period of(4) four years as
shown below and further determines that the petition, the Memorandum of Agreement
between the Petitioner and the City of South Bend, and the Statement of Benefits comply
with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana
Code 6-1.1-12 et seq.
Year 1 — 100%
Year 2 - 90%
Year 3 - 80%
Year 4—70%
SECTION 11I. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved by the Mayor.
Tim Scott, Council President
South Bend Common Council
TAX ABATEMENT REPORT
TO: South Bend Common Council
FROM: Daniel Buckenmeyer, Director of Business Development
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
REW,LLC
DATE: August 8,2018
On Wednesday,August 8,2018,a petition from REW,LLC was received and subsequently
filed with the City Clerk for real property tax abatement consideration for property located
at 5870 W. Carbonmill Dr., South Bend, IN 46628. Pursuant to Chapter 2, Article 6,
Section 2-84.2 of the Municipal Code of the City of South Bend,this petition was referred
to the Department of Community Investment 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 and whether all zoning requirements have been met.
The Department of Community Investment has reviewed the petition(a copy of which is
attached), investigated the area, and makes the following report.
PROJECT SUMMARY
➢ Estimated$1,956,400 construction of new warehouse and office building
➢ Company is planning to consolidate its business and move all employees to South
Bend from Mishawaka
➢ Estimated total taxes on the new building during the four(4)year abatement period
—$143,784
➢ Estimated taxes being abated during the four(4)year abatement period—$109,965
➢ Estimated taxes to be paid during the four(4)year abatement period—$33,819
EMPLOYMENT IMPACT
Per the petition,it is estimated that the total project will:
➢ Relocate 86 existing jobs to South Bend from Mishawaka t
➢ Create 25 permanent,full-time jobs within three years,representing anew estimate `
annual payroll of$425,000
i
S
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has
not been granted or associated with previous abatements.
2. The Area Plan Commission has reviewed the petition and finds the property to be
properly zoned for the proposed project.
3. A review of the South Bend Redevelopment designation areas finds that the property
is located in the River West Development Area.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner
meets the qualifications for a(4)four-year real property tax abatement under section
2-84.2,Real Property Tax Abatement.
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City of South Bend S'°Tf*d i cierk's otflce
PetiitiQn�f r II nt a
Petition must include o$250 filing fee payable to the City Clerk's Office or online via the City's website at tus A G 0 8 2018
http://southbendin.govlgovemmenticontentltax-abatement before processing can be complete
Shambaugh MAH FOWLER
Legal name as registered with Secretary of REW LLC
CITY CLERK.SOUTH BEND,I
Business structure LLC !r
Company website None
Proposed
Proposed project address Lot 2 US 31 Industrial Park phase 12 Parent company name NA
City,State,Zip South Bend,IN Legal owner REW LLC
Site acreage or acreage required 2 14 Is the real estate owned or owned
Square feet of facility 13500(expandable) If teased by whom NA
Primary Contact Information
Primary company contact name Robert W Wozny Title Owner
Address of company contact 51500 slratton court Phone
City,State,Zip Granger,IN 46530 Eman rew@rewlic.net
Official Senior
Company senior official name same Title
Address of company contact(lf different from Phone
above) I
City,State,Zip Email
Consultant Information/Agent
Hired business consultant/agent name Richard Doolittle Consultant release(YIN) Yes
Address 100 East Wayne Street Local economic development partners
app roval N
City,State,Zip South Bend,IN Email rdoolihle@cressy.com
Project Overview
Brief description of your Shambaugh&Son has been In the construction/engineering services business since 1926.Shambaugh is currently the
company,project,and why the largest MEP construction services contractor in Indiana and ranked the third largest specialty contractor In the United
property Is necessary for States.
economic growth Specializing in a full range of new and retrofit construction for industrial,food processing,commercial,institutional,
healthcare,pharmaceutical,and bio-fuel projects.Shambaugh is a national company currently located in Mishawaka,
IN with a small satellite site in South Bend.Shambaugh is currently seeking a site in northern Indiana to consolidate
their operations and expand their business and employment base.Shambaugh is in conversations on multiple sites in
the region and Is seeking incentives In an effort to make the construction of a new facility make financial sense for their
long term operations and growth.Shambaugh plans to occupy an initial 13,500 square foot facility with 50%office and
50%warehousing space.
Certified Technology Park appropriate No
Community Revitalization Enhancement No
District
Certify that the Building Permit has not been Yes Number ofresidentlal units created by 0
Issued
If this is a petition for personal property tax abatement,has FNA
the equipment been installed
Investment Details
Public Infrastructure needs(Off- Has any 504 funding been What is the value of any equipment being purchased In What is the value of any equipment bring
site of project in dollars) received? Indiana for the project? purchased from out of state for the project?
New Project Investments
Calendar Year 2018 2019 2020 2021 2022 2023 2024 2025
Land Acquisition $ 128,400
Building Lease Payments
Building Purchase Costs
New Building Construction $1,300,000
Existing Building Improvements
New Machinery&Equipment $180,000
Special Tooling/Retooling
New Furniture/Fixtures $250,000
New Computer/IT Hardware $98,000
New Software
On-site Rail Infrastructure
On-site Fiber Infrastructure
TOTAL 1$1,956,400 $0 $0 $01 $0 $0 $0 $0
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year Jobs retained Total hourly Cumulative#of net NEW full time Hourly average wage,w/o Total training Total#to be
wage w/o permanent jobs created at project benefits or bonuses,of expenditure- trained-not
fringe or cumulative net new jobs not cumulative
bonuses cumulative
2018 86
2019 20
2020 2
2021 2
2022 1
2023
2024
2025
2026
1 11
2025
2028
2029
Provide hourly wage information for new employees in the following positions.
Full time Part time
Laborers 20
Technical
Managerial
Administrative 14
Who will e the individual responsible for coor mating with
WorkOne on recruitin ?
Does your company have an EEO hiring policy? Are you an EEO employer?
Please list the number of full time and part time minority and/or female employees for each of Please describe your commitment to
the last three years: diversity and inclusion by detailing your
outreach and recruitment efforts for the last
Year
three years as well as current policies.
Full Time Part Time Full Time Part Time Full Time Part Time
Black 2
Hispanic 1
Asian 0
Indian 0
Female 10
Other 4
Complete / for or • Property
Please sign for all requested incentives.
Public Benefit Item:
Information Is required on both the construction companies and the
companies which will provide materials purchased for this project.
Please complete the table below with the appropriate information. If qualify Earned Points Available Points
you qualify for the points,please enter the full amount of available (yes or No)
points.
1 Construction Related(Contractors):
A. Employ Local Companies(75%) yes 20 20
B. Purchase Materials from Local Companies(75%) yes 20 20
C. Require Employees vs.Independent Contractors No 19
D. Require Prevailing Wage(Davis Bacon) No 22
E. lRequire Health Benefits No 22
F. Require Pension Benefits No 18
G. Maintain Affirmative Action Plan yes 20 20
Sub-total Construction Related: 60 141
2 Wage&Benefit Related(Owners:
A. Pay Target Wage Levels yes 33 33
B. Provide Health Benefits yes 34 34
C. Provide Pension Benefits yB5 29 29
D. Provide Training yes 28 28
E. Provide Child Care no 15
F. Provide Transportation Assistance no 14
G. Provide Employer Assisted Housing program no 9
Sub-total Wage&Benefit Related: 124 162
3 Workforce Related:
A. Create New Jobs yes 42 42
B. Retain Existing Jobs yes 41 41
C. Maintain Affirmative Action Plan yes 35 35
D. Provide Targeted Hiring Preference 34
Sub-total Workforce Related: 118 152
4 Support a Municipal Facility:
Support a SB Municipal Facility(donations to the
A. zoo,conservatory,museum,etc.) yB5 84
Name of Facility
Sub-total Municipal Facility: 84 84
Sub-total from Above: 386 539
The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City
of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and
South Bend Municipal Code Sec.2-76 et seg.,for this petition state the above.
OVA L��
What Is the current assessed value? Real Property: 3 O O Personal Property:
What is the projected assessed value? Real Property: / 0o p�D. Personal Property:
L..,
What Is the tax key number for this project? /
What is the six digit NAILS code? T
Please attach a Google map and street view of the location. ysf. O O(n g— ^/a 05
Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes:OC.
paid for the last five years when applicable.
Year One
Year Two fe 3J=`t7,C7
Year Three /o,/= Il�
pG(q l (!t7 Year Four l O/41e i 7
Year Five l0 y �O
Staff Use Only
Please fill out the Public Benefit Summary information and add to the total from above.
YorN Points 7 Points
Public Benefit Item:
Project Related:
A. Redevelop a Site that has Special Needs 49
B. Develop Based on Local University Research 35
C. Achieve a Physical Element of a Plan 36
Sub-total Project Related: 0 120
Super Size Projects(point values are cumulative):
A. 100Y.to 199% 25
B. 200%to 299% — 68
C. 300%to 399% 65
D. 400%and Over 52
Sub-total Super Site Projects: 0 210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing of Upgrading 14
B. Pay for 26-50%of Extension Cost 26
C. Pay for 51-75%of Extension Cost 39
D. Pay for 76-100%of Extension Cost 52
Sub-total infrastructure Related: 0 131
Total from Applicant Section: 386 539
Total from Staff Section: 0 461
Total Public Benefit Points: 396 1000
��ASS
Filed in Clerk's Office
STATEMENT OF BENEFITS - -° 20 PAY 20
t REAL ESTATE IMPROVEMENTS
State Form 51767(R412-13) AUG 0 8 2018 FORM Sli/Real Property
�' •° Prescribed by the Department of Local Government Fina ce
i �1`^, PRIVACY NOTICE
This statement is being completed for real property that qualifies under th followit AH ( lY¢CX e ) The cosL and any specific individual's
❑ Redevelopment or rehabilitation of real estate improvements(IC 6-1.1 1 4��I cLE�I< sou-�I�AEI IN salary Information Is confidential;the
Y __. balance of the filing is public record
❑ Residentially distressed area(IC 6-1.1-12,1-4.1) I _. ..----• per IC 6-1.1-12.1-5.1(c)and(d).
INSTRUCTIONS:
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction.
"Projects"planned or committed to after July 1, 1987,and areas designated after July 1, 1987,require a STATEMENT OF BENEFITS. (lC 6-1.1-12.1)
2 Approval of the designating body(City Council, Town Board,County Council,etc,)must be obtained prior to initiation of the redevelopment or
rehabilitation,BEFORE a deduction may be approved.
3. To obtain a deduction,a Form 3221RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty(30)days after the assessment notice Is mailed to the property owner if it was mailed afterApril 10. if the property owner
misses the May 10 deadline in the initial year of occupation,he can apply between March 1 and May 10 of a subsequent year,
4. Property owners whose Statement of Benefits was approved after June 30, 1991,must attach a Form CF-1/Real Property annually to the application to
show compliance with the Statement of Benefits. (1C 6-1.1-12.1-5.1(b)and IC 6-1.142.1-5.30)1.
5, The schedules established under iC 6-1.1-12.1-4(d)for rehabilitated property apply to any economic revitalization areas designated after June 30.2000,
unless an alternative deduction schedule is adopted by the designating body(iC 6-1.1-12.1-17). The schedules effective prior to July 1,2000,shall
continue to apply to economic revitalization areas designated before July 1,2000.
Name of axpayer 7
Address of taxpayer(numberand street,city state,and ZIP code _
Name of contact person Telephone rumber E-mail address
oe L4 _lk U7 tie'
Name of doena6ng bo/d�y Resolution number
t Cecut e.r.-P
Location of grope County DLGF taxing district number
38 A�,
Description of real property improvements,redevelopment,or rehabilitalion(use additional sheets it necessa Estimated start date(month,day.year)
'e";I, -5v
y! Estimated completion date(month,day year)
Currenlnu ber S.laries NLm rrela'.ned alaces Njmberaddit`onal Salariesf
�� 35,�oo-tlorooa �, 351oob IID oe� Z S 35,.. Ilotaoa
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values Pues xyv o
Plus estimated of pr oposed project / OOc7
Less values of any property being replaced
Net estimated values upon completion of project 41 zI SKIN I
Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds)
Other benefits
SECTION 6 TAXPAYER •
I hereby certify that the representations in this statement are true.
Signature of authorized representalivadz, /� Title t Dale signed(month,d y,year
\ ��� c Qq Q_ T l W
Z!�0 k �" Page 1 of 2
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under 1C 6-1.1-121,provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed calendar years`(see below). The date this designation
expires is
B. The type of deduction that is allowed in the designated area is limited to:
1.Redevelopment or rehabilitation of real estate improvements 13 Yes ❑No
2,Residentially distressed areas ❑Yes ®No
C. The amount of the deduction applicable is limited to$
D. Other limitations or conditions(spa cify)
E. The deduction Is allowed for years"(see below).
F. Did the designating body adopt an alternative deduction schedule per IC 6-1.1-12.1-177 ❑Yes ❑No
If yes,attach a copy of the alternative deduction schedule to this form.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved(signature and title ofeuthorized member ofdesignating body) Telephone number Date signed(month,day.year)
Attested by(signature and title of attester) Designated body
If the designating body limits the time period during which an area is an economic revitalization area,it does not limit the length of time a taxpayer is
entitled to receive a deduction to a number of years'destgnated under IC 6-1.1-12.1-4.
A. For residentially distressed areas,the deduction period may not exceed five(5)years.
B. For redevelopment and rehabilitation or real estate improvements:
1. If the Economic Revitalization Area was designated prior to July 1.2000.the deduction period is limited to three(3),six(6),or ten(10)years.
2. If the Economic Revitalization Area was designated after June 30,2000,and is not Ina residentially distressed area,the deduction period may not
exceed ten(10)years.
Page 2 of 2
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