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HomeMy WebLinkAbout4783-19 GLC Portage Prairie IV Confirming Real Property Tax Abatement RESOLUTION No. 4783-19 Passed by the Common Council of the City of South Bend, Indiana May 13, 20 19 Attest iflfiji-Z4it_.--, City Clerk Kareemah N. Fowler Attest President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 13, 19 20 . ''' /A•dic•mg-o-ITI f;z4/-(i.it----- City Clerk Kareemah N. Fowler Approved and signed by me u 1 5 20 19 , . AP' Maya United States of America ?os *.***k ms av Certificate STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss: I, Kareemah 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 4783-19 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND,INDIANA,COMMONLY KNOWN AS NE CORNER OF ADAM ROAD AND U.S. 31 BYPASS, SOUTH BEND, IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SIX (6) YEAR REAL PROPERTY TAX ABATEMENT FOR GLC PORTAGE PRAIRIE IV, LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, MAY 13,2019. PRESENTED TO, APPROVED AND SIGNED BY MAYOR PETE BUTTIGIEG, MAY 15, 2019. ATTEST: TIM SCOTT, PRESIDENT OF THE COMMON COUNCIL ATTEST: KAREEMAH N. FOWLER, CITY CLERK -RECE- i a; _ -_ MAY ( /2019 Si.JosEp ASSESSOR 1 NAY i 7 2019 the original of which is now on fi..le'ir+the office'of.the C rk of the City of South Bend, St. Joseph County, Indiana. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of the City of South Bend, St. Joseph County, Indiana, this I(/ day of M.u,' 20 11 Kareemah Fowler Clerk of the City of South Bend St. Joseph County, Indiana BY. L .. , 4,i/ IP ' Deputy BILL NO. 19-29 RESOLUTION NO. 4783-19 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS NE Corner of Adam Road and U.S. 31 Bypass, South Bend, IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SIX (6) YEAR REAL PROPERTY TAX ABATEMENT FOR GLC Portage Prairie IV, 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 NE Corner of Adam Road and U.S. 31 Bypass, South Bend, Indiana,and which is more particularly described as follows: S Pt Nw & W End N Sw & W End S Sw Ex 11.653 Ac To State &Ne Pt Sw Sec 8 38 2e Total 119.107 Ac Annxd 06-07 Ord#9638-05 and which has Key Number 025-1002-001301 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 three (3)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 up to a period of six (6) 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 - 100% Year 3 - 100% Year 4 - 95% Year 5 - 95% Year 6 - 95% 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 510I26I9i soa A(') wpzfi 51 t3 I 2-01 9 Flied in --- -� Cierk' � i � 1.±17 31019 KARE-Ek yy'T RR ClTy C1 ARK= DUTi,�,.BEND !�l CITY OF SOUTH BEND COMVU\ITY INVESTMENT Council Member Gavin Ferlic, Chairperson April 3,2019 Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Real Property Tax Abatement Petition for: GLC Portage Prairie IV,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. GLC Portage Prairie IV, LLC is proposing to invest more than $7,000,000 in the construction of a new speculative building located at NE corner of Adam Road and U.S. 31 Bypass, South Bend. The report contains the Department's findings relative to the above petition. The project meets the qualifications for a(6)six-year real property tax abatement and a representative from GLC Portage Prairie IV will be available to meet with the Committee on Monday,April 8, 2019. 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. Sin erel , t , 1111.- Dam Dani uckenmeyer Director Economic Resources&Business Development DANIELJ.BUCKENMEYER ALKEYNA ALDRIDCF. PAMELA MEYER TIM CORCORAN BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COMMUNITY RESOURCES EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 1400S County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 vvww.southbendin.gov TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Angelina Billo SUBJECT: Real Property Tax Abatement Petition For: GLC Portage Prairie IV, LLC DATE: April 1, 2019 On March 29, 2019, a petition for real property tax abatement consideration for property located at NE corner of Adam Road and U.S.31 Bypass,South Bend,IN was filed with the City Clerk by GLC Portage Prairie IV, LLC. 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,investigated the area,and makes the following report. PROJECT SUMMARY • GLC Portage Prairie IV, LLC is proposing to invest more than$7,000,000 in the construction of approximately 166,000 sq. ft. speculative industrial facility to be located on the NE corner of Adam Road and U.S. 31 Bypass, South Bend. • The new facility will attract companies that are either expanding their operations or establishing new operations in South Bend. The building will be designed as a modem cross docked facility with great access to the interstate with highway visibility. The new facility will provide much needed move in-ready inventory to market with extremely low vacancy and lack of bulk warehouse options. • Total project cost excluding equipment is approximately$7,370,000. • Petitioner is qualified for a six-year real property tax abatement. • The estimated amount of taxes phased-in for the six-year abatement is$962,891. Estimated paid taxes paid for the six-year term are $78,823. Current annual taxes are under$3,500. EMPLOYMENT IMPACT Due to the speculative nature of the building, only indirect jobs will be retained or created. ABATEMENT OUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner,GLC Portage Prairie IV, LLC has not been granted or associated with any previous tax abatement. 2. The Area Plan Commission has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. The Building Commission has reviewed the petition and finds no building permit was issued. 4 The property is located in the River West Development area. 5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for a(6)six-year real property tax abatement under section 2-75 Real Property Tax Abatement General Standards. U)l) (.0L- 0000 O N O N CO O O CA *3 CO 0 0 CO) 0) CO CO CO (0 } 00o000)a) N N N co- Y N-CO C)C) u7 ,_ Ct)cc; U) 0000 CCD NON WCO OO CO 0 07 O O M 0) CO. CD CD CD co co co>- I-CO CnCO CO N N a- N. a- ct).CC) o 0000 o 000 0)OCT Ct N C))O C0 co 00) co.NcoNCO 0 }00000)0) N N N N— N. 0 M M Cf) U)U) a) e M o 0p 00 o COR O) 0 0) G) X 2I V 'V 000 co )) 0 0 M O 000') CO0CCD CD CO 1.0 CD t0 Z ~0_ CO CO CCOO CCD_CCOO CND_CND_ CD a a r 0 co0W 0 co CO 0 r ri 0 U)U) N N N � Q CD I- CO CD'- U) a- r x— -.0 CO V U a) C)) ON 8000 CD OCC 000) CXO CCD COCCO 00) 00) 00) 0) +.. 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N o IF. o 0 w y f. c.. o O Co- 0. fir U_4 t U E c ci a� m °) cocr) -1 G: E > > iri m c U c 0 r H c7, 05 = -01:1 X X X Y NCO ® P' 7... O O+ -0vj City of South Bend Petition for Incentives . Petition must include a$250 filing fee payable to the Clay Clerk's Office or online via the City's website at http://southbendin.gov/government/content/tax-abatement before processing can be complete ams General Information Project Name SPEC IV Project Number Legal name as registered with Secretary of GLC Portage Prairie IV State Business structure Indiana Limited Liability Company Company website www.greatlakescapital.com Proposed Project Information Proposed project address NE corner of Adam Rd/U.S.31 Bypass Parent company name city,State,Zip South Bend IN 46628 Legal owner Waggoner's Dairy Farm Site acreage or acreage required t 1 acres+1- Is the real estate owned or Owned Irmsert Square feet of fadllty Approximately 166,000 If leased by whom Primary Contact Information Primary company contact name Jeff Smoke Title Director Address of company contact 112 W Jefferson Blvd.,Suite 200 Phone 574-855-5700 City,state,zip South Bend IN 46601 Email jsmoke@greatlakescapital.corn Senior Official Information Company senior official name Jeff Smoke Title Director Address of company contact(If different from Same Phone 574-855-5700 a hovel City,State,ZIP Email jsmoke@greatlakescapital.com Consultant Information/Agent Hired business consultant/agent name Richard Dedhl,Barnes and Thornburg Consultant release(Y/N) Yes Address 100 N Michigan Street, Suite 700 Local economic development partners approval(Y/N City,State,Zlp South Bend, Indiana 46601 Email rdeahl@btlaw.com Project Overview Brief description of your company,project,and why the Great Lakes Capital ("GLC") is the sponsor of GLC Portage Prairie IV. GLC propertylsnecessaryfor is proposing to develop a "spec" building with a proposed investment of over economic growth $7,000,000 within Portage Prairie, to help support continued building growth, momentum and attractiveness of City to prospective users/operators. This spec project will complement previous buildings which totaled over 420,000 SF and will house over 400 employees. SPEC IV will consist of approximately 166,000 SF and be designed as a modern cross docked facility with great access to the interstate with highway visibility. SPEC IV will provide much needed move in ready inventory to a market with extremely low vacancy and lack of bulk warehouse options. Filed in Clerk's O'fice Certified Technology Park appropriate N/A t Is the project in a Tax Incremental Financing Yes 1 l MAR 9 2019, (TIF 1 area? If so,which? 2 Certify that the Building Permit has not been No Permit Issued Number of residential units opted by N/4 issued(y/NI croiect j If this Is a petition for personal property tax abatement,has N/A KA.REEMAN FOWLER the equipment been installed I ;717-Y r+ `w,(,SOUTi I©END, IN : 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 protect In dollars) received? Indiana for the project? purchased from out of state for the project? No N/A N/A New Project Investments Calendar Year 2019 2020 2021 2022 2023 2024 2025 2026 Land Acquisition $270,000.00 Building Lease Payments Building Purchase Costs New Building Construction $5.100,000.00 $2,000.000.00 Existing Building Improvements New Machinery&Equipment Special Tooling/Retooling New Furniture/Fixtures New Computer/1T Hardware New Software On-site Rail Infrastructure On-site Fiber Infrastructure TOTAL $5,370,000.00 $2,000,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Total hourly Cumulative p 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 2019 2020 0-15 $15+ 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers Technical Managerial Administrative Who will be the indiviauai responsible tor coordinating with WorkOne on recruiting? 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 Year outreach and recruitment efforts for the last three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black Hispanic Asian Indian Female 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. complete the table below with theQualify Please appropriate information. If Earned Points Available Points you qualify for the points,please enter the full amount of available (yes or No) points. I. 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 No 18 G Maintain Affirmative Action Plan Yes 20 20 Sub-total Construction Related: 101 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels Yes 33 7 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: 124 162 3 Workforce Related: A. Create New Jobs Yes 42 42 B. Retain Existing Jobs N/A 41 C. Maintain Affirmative Action Plan Yes 35 35 D. Provide Targeted Hiring Preference _ 34 Sub-total Workforce Related: 77 (/--/j, - 152 4 Support a Municipal Facility: �/" Support a SB Municipal Facility(donations to the A. Yes 84 zoo,conservatory,museum,etc.) 84 Name of Facility /,LX c4--u`-(.mac -)D 1 c,/q Vii Q- o pYt f ? t_> ISub-total Municipal Facility: 84 ) 84 r,� Sub-total from Above: 31i- pt,:_ - 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 1.C.,6-1.1-12.1-1,et seq.,and Soutt penAMunici al Code Sec.2-76 et seq.,for this petition state the above. Submitted By: Date: -//09//'7 i For Staff Use Only Below This Line What Is the current assessed value? Real Property: I6 7 p 0 Personal Property: / 7 What Is the projected assessed value? Real Property: Personal Property: What is the tax key number for this project? (.7 5- _ 'o 2 _(Do( ( 2 What Is the six digit NAICS code? Please attach a Google map and street view of the location. Please Ilst 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 Five Please fill out the following Public Benefit Summary Information and add to total from above. (Y or N) Points Points Public Benefit Item: Prolect Related: 5 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: 120 6 Super Size Projects(point values are cumulative): A. 100%to 199% v 25 B. 200%to 299% 6{) 68 C 300%to 399% _ 6 65 D. 400%and Over 52 Sub-total Super Size Projects: 210 7 Py 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. P for 76-100%of Extension Cost 52 Sub-total Infrastructure Related: 131 Total from Applicant Section: 20 539 Total from Staff Section: .-/V 461 Total Public Benefit Points: 1000 •` 1L ai a UJ J 4 m � t, .ti'4 QC J W `J Q a S W N 0 2 g Q f— ZO I h-_,,_ �7'b^1/4d]�r ;r' 1 c a Z ..,._ N z Ovr.n , o •a. p c� a x c*i Q 3F,'is. 'C v C �+ b Li. ,M LL. F., cr .Qa .O O cd rn 4 c� „ - O Q U C W et w Z A 3 -x e CL1 W C o o C �°n c. E W Q C7 rat 3 > • O k+ av+os V) y a'+ O+ j.) .J V o �- c Q Q 3 = u 0 .= o PC U y ycv q S 4 a v H CA 1 N O Cn Q.�i p W N 0 C4 al '.4.\ 0" O M z E- 5 5 CC S M •°o O .4 Qts N0.5 oo c U M o a Z en 3r. o a7 C7 C7 e= c ,� Q O �i o N p, ^ O l-- 3 in Q fn fes/) 6. 6A 66 N as V] ri v) O J C. '-4. 0 y J O ms` s... '9 E o y CO) o C ii, y y C o 3 's s i' d m a n tn• _. v L 17 'r1 .V, a › u C l _N t+' p„ A O Q •o O. a t' w . in o a o L Y .-iEl C bL . °' Lr . > .. a 07 . 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