HomeMy WebLinkAbout4785-19 31 Nimtz Land Confirming Real Property Tax Abatement RESOLUTION
No. 4785-19
Passed by the Common Council of the City of South Bend, Indiana
May 13, 20 19
Attest: "' / 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
. /./at.4-te-we.o-061f
City Clerk
Kareemah N. Fowler
Approved and signed by me t" "C`^) I 20 19
BILL NO. 19-31
RESOLUTION NO. 4785-19
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
24605 Cleveland Road, South Bend, IN 46628
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A SIX (6) YEAR REAL
PROPERTY TAX ABATEMENT FOR
31 Nimtz Land, 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 24605
Cleveland Road, South Bend, Indiana, and which is more particularly described as follows:
E1/2 E1/2 Se Sw Ex S End To State Sec 19 38 2e 04-05 Annexed Fr 04 Per Ord#9428-03
W1/2 E1/2 Se Sw Ex S 40'For St Sec 19-38-2e 04-05 Split To City For St Per Tr 14573 2-3-04
and which has Key Numbers 025-1011-0189 and 025-1011-018901 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
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CITY OF SOUTH BEND
COMMUNITY 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:
31 Nimtz Land,LLC (an affiliate of Holladay Properties)
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. 31 Nimtz Land, LLC is proposing to invest $12,940,000 in the
construction of a new distribution center(speculative building)at 24605 Cleveland Road,South Bend,IN.
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 31 Nimtz Land and
Holladay Properties 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 erely,
tal
D• 1 el :uckenmeyer
Director Economic Resources&Business Development
DANIEL J.BUCKENMEYER ALKEYNA ALDRIDGE PAMELA MEYER TIMI 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 www.southbendin.gov
TAX ABATEMENT REPORT
TO: South Bend Common Council
FROM: Angelina Billo
SUBJECT: Real Property Tax Abatement Petition For:
31 Nimtz Land,LLC (an affiliate of Holladay Properties)
DATE: April 1, 2019
On April 1, 2019, a petition for real property tax abatement consideration for property located at 24605
Cleveland Road, South Bend, IN was filed with the City Clerk by 31 Nimtz Land, 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
• 31 Nimtz Land, LLC (an affiliate of Holladay Properties) is proposing to invest more than
$12,000,000 in the construction of approximately 225,000 sq.ft. speculative industrial facility to
be located on the NW corner of US 31 and Nimtz Parkway.
• The new facility will attract companies that are either expanding their operations or establishing
new operations in South Bend.The building will have 40 dock positions to accommodate modern
distribution users.
• Total project cost excluding equipment is approximately$12,940,000.
• Petitioner is qualified for a six-year real property tax abatement.
• The estimated amount of taxes phased-in for the six-year abatement is$1,785,826. Estimated paid
taxes paid for the six-year term are$149,218. Current annual taxes are under$6,500.
Holladay Properties,a parent of 31 Nimtz Land,is a full-scale land development,design/build,and fully-
integrated real estate company, and property management firm. The company has developed over 20
million square feet of commercial space and actively manage over 14.3 million square feet of office,
industrial,retail,multi-family,hotel,and healthcare space.Their medical office management portfolio is
one of the largest in the country.
EMPLOYMENT IMPACT
Due to the speculative nature of the building, only indirect jobs will be retained or created.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the Petitioner, 31 Nimtz Land, 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.
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City of South Bend
Petition for Incentives t
Petition must Include a$250ili ! '
f ng fee payable to the City Clerk's Office or online via the City's webs/te gL _ - __ -
http://southbendin.gov/government/content/tax-abatement before processing can be complete Pap rf in CIpfj q f)fflrue
General Information Project Name Project lumber ----
LegalnameasregisteredwithSecretaryof 31 Nimtz Land LLC
sus: APR Zig
Business truaare Limited Liability Company
Company website
www.holladayproperties.com KAREEMAH FOWLEF
Proposed Project Information CITY CLERK,SOUTH BEN`).IN
Proposed project address 24605 Cleveland Road Parentcampanyname Holladay Properties
City,State,Zip South Bend, IN 46628 legal owner 31 Nimtz Land LLC
Site acreage or acreage required 19.6 Is the real estate owned or Leased
teased
Square feet of facility 225,000 If leased by whom Speculative
Primary Contact Information
Primary company contact name Paul Phair Title
VP-Development
Address of company contact 227 S. Main Street,Ste.300 Phone 574-217-4498
City,State,Zip South Bend, IN 46601 Email pphair@holladayproperties.com
Senior Official Information
Company senior official name John Phair Title President
Address of company contact(if different from 227 S. Main Street, Ste. 300 Phone 574-217-4475
abovel
City,State,Zip South Bend, IN 46601 Ercall jphair@holladayproperties.com
Consultant Information/Agent
Hired business consultant/agent name N/A Consultant release(Y/N)
Address Local economic development partners
approval(Y(N)
City,State,Zip Email 11
Project Overview
Brief description of your
company,protect,and why the The proposed project is an approximately 225,000 square foot
property is necessary for speculative industrial facilityto be located in South Bend on the NW
economic growth
corner of US 31 and Nimtz Parkway. The construction investment
anticipated is approximately $12.94 million, which does not include
equipment and additional investment which may be made by future
Tenants of the building. Due to the speculative nature of the building, we
do not know specific job creation statistics, but we are moving forward
with the building to specifically attract companies that are either 1.
expanding their operations, or 2. establishing new operations in our
community. We fully expect that new jobs will be created as a result of
this new industrial building being constructed.
Certified Technology Park appropriate N/A
is the project In a Tax Incremental Financing Yes- River West District
(TIF I area? dm which?
Certify that the Building Permit has not been Yes Number of residential units vested by o
Issued IY/N) nro)
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?
N/A No Unknown-Speculative Development Unknown-Speculative Development
New Project Investments
Calendar Year 2019 2020 2021 2022 2023 2024 2025 2026
Land Acquisition 5 011 000 00
Building Lease Payments
Building Purchase Costs
New Building Construction 5 0025 Jr.)00 5 3,005,000 GO
Existing Building Improvements
New Machinery&Equipment
Special Tooling/Retooling
New Furniture/Fixtures
New Computer/IT Hardware
New Software
On-site Rail Infrastructure
On-site Fiber Infrastructure
TOTAL 5 3,93e.000 m a 3,005,000 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 It of net NEW full time Hourly average wage,w/o Total training Total ri 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 Unknown
2020
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 Unknown
Technical
Managerial
Administrative
Who will be the individual responsible for 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.
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(Contractors1
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 33
B. Provide Health Benefits 34
C. Provide Pension Benefits 29
D. Provide Training 28
E. Provide Child Care 15
F. Provide Transportation Assistance 14
G. Provide Employer Assisted Housing program 9
Sub-total Wage&Benefit Related: 0 162
3 Workforce Related:
A. Create New Jobs 42
B. Retain Existing Jobs Yes 41 a1
C. Maintain Affirmative Action Plan 35
D. Provide Targeted Hiring Preference 34
Sub-total Workforce Related: 41 152
4 Support a Municipal Facility:
Support a SB Municipal Facility(donations to the
A. Yes 84
zoo,conservatory.museum,etc.) 84
Name of Facility Potawatomi Zoo
ISub-total Municipal Facility: ea 84
Sub-total from Above: 226 539
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 seq.,for this petition state the above.
'
Submitted By: j l' - ,_ Date: o'S /z 'l / t`i
For Staff Use Only Below This Line
What is the current assessed value? Real Property: .9, f 17(�`> Personal Property:
What is the projected assessed value? Real Property: •N`/J/ ! Personal Property:
What is the tax key number for this project? r - C)• l /(/( -
What Is the six digit NAICS code?
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 Five
Please fill out the following Public Benefit Summary Information and add to total from above.
IV or NJ Points Points
Public Benefit Item:
Project 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 Sire Projects(point values are cumulative):
A. 100%to 199% r 25
B. 200%to 299% 6C-C' 68
C. 300%to 399% p 65
D. 400%and Over 5 ..2 52
'Sub-total Super Size Protects: (. . 210
Pay for Municipal Infrastructure:
A. Pay for Overslzing or Upgrading — 14
B. Pay for 26-50%of Extension Cost ) 26
C. Pay for 51-75%of Extension Cost r • 39
D. Pay for 76-100%of Extension Cost i 52
r
Sub-total infrastructure Related: / I 131
Total from Applicant Section: .7 [ 539
Total from Staff Section: ?(C' 461
Total Public Benefit Points: 6 1000
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