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Home My WebLink About4747-18 National Distribution Centers, LLC Confirming RESOLUTION No. 4747-18 Passed by the Common Council of the City of South Bend, Indiana October 8, 20 18 . i Attest: City Clerk Kareemah N. Fowl- Attest _ ` President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 8, 20-1 . /A _, 41,,, City Clerk Kar:emah N. Fowler Approved and signed by me OC u ,r 201 . '/- �; Mayor __,peti- / ....- United States of America S �c d yF 4i r R*i Rf CTR y 1� e t OCT 16 2018 OCT16 201 -'�.'_•.- ....,._,,.-.�,-.� S4. :� WdJih iai�t:illi iMgJ� Certificate STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss: I, Kareemah N. Fowler, Clerk of the City of South Bend, County of St. Joseph, Indiana, hereby certify that the attached and foregoing is a full, true, and correct copy of RESOLUTION 4747-18 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS LOT 5 U S 31 INDUSTRIAL PARK PHASE II AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A NINE(9)YEAR REAL PROPERTY TAX ABATEMENT FOR NATIONAL DISTRIBUTION CENTERS, LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, OCTOBER 8, 2018. PRESENTED TO,APPROVED AND SIGNED BY MAYOR PETE BUTTIGIEG, OCTOBER 9, 2018. ATTEST: TIM SCOTT,PRESIDENT OF THE COMMON COUNCIL ATTEST: KAREEMAH N. FOWLER, CITY CLERK the original of which is now on file in the office of the Clerk of the City of South Bend, St. Joseph County, Indiana. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal f the City of South Bend, St. Joseph County, Indiana, this // ' day of 'i �4/ 20 /j Kareemah N. Fowler Clerk of the City of South Bend St. Jph County, Indiana By: Kareemah N. Fowler BILL NO. 18-54 RESOLUTION NO. 4747-18 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS Lot 5 U S 31 Industrial Park Phase II AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A NINE (9) YEAR REAL PROPERTY TAX ABATEMENT FOR National Distribution Centers, 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 the intersection of Dylan Drive and Parkland Drive, South Bend,Indiana described as follows: Lots 5 U S 31 Industrial Park Phase Ii 02-03 New Replat Tr 8044 10-9-01 and which has Key Number 025-1009-015209, and 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 real property tax deduction for a period of nine (9) years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 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 - 90% Year 4 - 80% Years - 80% Year 6-70% Year ?-70% Year 8—60% Year 9-60% SECTION III. 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 4501TH BEfY O• d �� Filed in Clerk's Office IJ 5.d ,`, � PEACE.- - , SEP 192018 1865 KAREEMAH FOWLER CITY OF SOUTH BENSD, IN COMMUNITY INVESTMENT JAMES MUELLER, EXECUTIVE DIRECTOR September 19, 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: National Distribution Centers, LLC Dear Council Member Ferlic: Please find attached the Department of Community Investment's report on a real property tax abatement petition for the above-referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the construction of a new warehouse and distribution facility, located at the intersection of Dylan Drive and Parkland Drive, South Bend, IN. The report contains the Department's findings relative to the above petition. The total amount of private investment for the new building construction and land purchase is estimated at$14M. The project meets the qualifications for a nine-year real property tax abatement. A representative from a parent company, NFI Industries, will be available to meet with the Committee on Monday, September 24th, 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 235-5838. Sincerely, /` ''..--- - r% Celina Billo Business Development Manager Department of Community Investment DANIEL j.Lua.nc:\.v..1 raw ru1,1,11rn 1-11.1/Ill we a ru•icun 1Y1.I ca 1 III vvna.vnruf BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHI3ORHOOD DEVELOPMENT PLANNLNG&COMMUNITY RESOURCES EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 1400S County-City Building j 227 W.Jefferson Blvd.1 South Bend,Indiana 466011p 574.235.93711 www.southbendin.gov Filed in Clerk's Office City of South Bend �° _19 20188 Petition for Incentives °4l-+F-OWL=R Petition must Include a$250 filing fee payable to the City Clerk's Office or online via the City's website at CITICLW{ . OU 1H"i BEN D.IN http://southbendln.gov/government/content/tax-abatement before processing can be complete General Information Project Name Project Number Legal name as reistered wIth Secretary of National Distribution Centers, LLC ("NFI") .tate Business structure Limited Liability Company Company website www.nfiindustries.com Proposed Project Information Proposed project address Dylan Drive Parent company name NFI CIty,State,Zip South Bend, IN 46628 Legal owner NFI Site acreage or acreage required --20.0 acres Ie the real estate owned or owned Square feet of facility 232,000 If leased by whom Primary Contact Information Primary company contact name Troy Adams Title Director of Real Estate Address of company contact 1515 Burnt Mill Road Phone (0)856-552-3178 (C)267-872-24; City,State,Zip Cherry Hill, NJ 08003 Email troy-adams@nfiindustries.com Senior Official information Company senior official name as above Title Address of company contact(If different from Phone above( City,State,Zip Email Consultant Information/Agent Hired business consultant/agent name Bradley Company/M. Ne Consultant release(Y/N) y Address 112 W. Jefferson Blvd,Suiteaep30( Localeconomlcdrevallpevelopmentpartners n/a City,State,Zip South Bend, IN 46601 'Email mneal@bradleyco.com Project Overview Brief description of your NFI is a leading international third party logistics provider offering company,project,and why the property lsnecessary for services in distribution, transportation, logistics and real estate. NFI economic growth operates more than 40 million square feet of distribution and logistics real estate and employs more than 10,000 people throughout the US and Canada. NFI is entering its 86th year in business as a privately held, family-owned company. The project is precipitated by the strong growth of its client which requires a significant expansion (and its current subleased facility is inadequate). Seeking a new project site of at least 20 acres to construct (using local GC, subs and materials) its own 232,000 sq ft h(lilriinn the cmmoanv has considered jnrations in South Ranh as well Certified Technology Park appropriate n/a Is the project In a Tax incremental Financing Yes, River West Development TIF (TIP Iarea? If to.which? Certify that the Building Permit has not been Y Number of residential units treated by n/a .. od ly/Nj ara1:.^t If this Is a petition for personal property tax abatement,has No 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 being site of project In dollars) received? Indiana for the project? purchased from out of state for the project? To be discussed No TBD - —$1.0 million TBD - —$3.0 million New Project Investments Calendar Year 2018 2019 2020 2021 2022 2023 2024 2025 Land Acquisition $1.000,000 Building Lease Payments Building Purchase Costs New Building Construction $2,000,000 S 11,000.000 Existing Building Improvements New Machinery&Equipment S 4,000,000 Special Tooling/Retooling New Furniture/Fixtures S 25,000 New Computer/IT Hardware S 25,000 New Software 5 50,000 On-site Rail Infrastructure On-site Fiber Infrastructure TOTAL $3,000,000 515,100,000 $0 $0 $0 S 0 $0 $0 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Total hourly Cumulative 4 of net NEW full time Hourly average wage,w/o Total training Total r 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 108 01825 or$4.1M 2019 2020 2021 2022 2023 2024 2025 2026 2025 2028 2029 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers Technical Managerial Administrative Who will be the individual responsible for coordinating with WorkOne on recruiting? Does your company have an EEO hiring policy? Yes Are you an EEO employer? Yes 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 2018 2018 2018 three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black 54 Hispanic 5 Asian 1 Indian Female 39 Other Complete below for Real or Personal Property Tax Abatement only. 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 (Yes or No) you qualify for the points,please enter the full amount of available 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 Yes 19 19 D. Require Prevailing Wage(Davis Bacon) No 22 E. Require Health Benefits Yes 22 22 F. Require Pension Benefits Yes 18 18 G. Maintain Affirmative Action Plan Yes 20 20 Sub-total Construction Related: 1 1 9 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels Yes 33 33 B. Provide Health Benefits Yes 34 34 C. Provide Pension Benefits Yes 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: 1 24 =^2 3 Workforce Related: A. Create New Jobs No B. Retain Existing Jobs Yes 4 C. Maintain Affirmative Action Plan Yes 35 -- D. Provide Targeted Hiring Preference No o Sub-total Workforce Related: 76 102 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A. zoo,conservatory,museum,etc.) Yes 84 Name of Facility ISub-total Municipal Facility: R4 • Sub-total from Above: Troy Ada 94 3 39 The undersigned owners)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 •r..•. tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and South Be.• 'unit-;f ode•ec.2-76 et seq.,for this petition state the abovvg. Submitted By: r/rill- Date: eo For Staff Use Only Below This Line What is the current assessed value? Real Property: ( 4 c)D Personal Property: What Is the projected assessed value? Real Property: .'77Y •C .� rJ Personal Property: What Is the tax key number for this project? Ot�� c7t7 ^O/ 5— q 7 What Is the six digit NAILS code? 9 Ota Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. Year One Year Two Year Three Year Four Year Flve Please fill out the following Public Benefit Summary Information and add to total from above. 1Y or NI Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 25 C. Achieve a Physical Element of a Plan iS Sub-total Project Related: :20 6 Super Size Projects fpolnt values are cumulative): A. 100%to 199% 02 5-- 25 B. 200%to 299% 6R 69 C. 300%to 399% C.0 ES D. 400%and Over 5 Sub-total Super Size Projects: 01.1(7- 210 7 Pay for Municipal Infrastructure: A. Pay for Oversizing or 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: 131 Total from Applicant Section: 4,/03 539 Total from Staff Section: ,'L 'ffl 461 Total Public Benefit Points: / 3 1000 Filed in Clerk's Office TAX ABATEMENT REPO.R T SEP 19 2018 TO: SOUTH BEND COMMON COUNCIL KAREEMP.H FOWLER CITY CLERK,SOUTH BEND, !N FROM: ANGELINA BILLO -"-SUBJECT: REAL REAL AND PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: National Distribution Centers, LLC DATE: September 19,2018 On Monday September 17t, 2018, a petition from National Distribution Centers, LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at the intersection of Dylan Drive and Parkland Drive, South Bend, IN. 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 > Construction of the approximately 232,000 sq. ft. new warehouse and logistic distribution building > Building is designed as a concrete block/precast masonry construction, with 32' clear ceiling heights; cross dock design and office space 5,000 sq. ft. ➢ $14,000,000 private investment in the building construction and land purchase > A parent company, NFI Industries, is a leading international third-party logistics provider offering services in distribution, transportation, logistics and real estate. NFI operates more than 40 million square feet of distribution and logistics real estate and employs more than 10,000 people throughout the US and Canada. > The project is precipitated by the strong growth of the company's client base which requires a significant expansion. The current subleased facility on Sample Street in South Bend is inadequate. > The company has considered locations in South Bend as well as east central Indiana (1-69 corridor) which would be more centrally located to expand its distribution and fulfillment commitments for product delivery in the upper Midwest (IN, OH,MI&IL) and possibly in KY and MO. > Estimated taxes being paid during the nine-year abatement period—$1,138,755 > Estimated taxes being abated during the nine-year abatement period—$1,675,590 1 1 EMPLOYMENT IMPACT Per the petition, currently, there are 108 employees with an -$4.1 million annual payroll. The average hourly wage is $18.25.The company's commitment is to retain all existing jobs. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous abatements. 2. 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