HomeMy WebLinkAboutConfirming Tax Abatement - 3445 William Richardson Drive - Jade Elephant Holding, LLC ( Lake Michigan Mailer, Inc)RESOLUTION
3841-08
Passed by the Common Council of the City of South Bend, Indiana
March 10, 20 8
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
March 11, 2dJ8
Approved and signed by me March 11, 20 08
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City Clerk
RESOLUTION NO. 3 B` `fI - 0 g
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
3445 William Richardson Drive
AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
FOUR-YEAR REAL PROPERTY TAX ABATEMENT FOR
Jade Elephant Holding, LLC (Lake Michigan Mailers, Inc.)
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
3445 William Richardson Drive, South Bend, Indiana, and which is more particularly
described as follows:
Lot Numbered Fourteen (14) as shown on the recorded Plat of the
Toll Road Industrial Park Section 6, recorded April 7, 1989 as
document number 8908570 in the Office of the Recorder of St, Joseph,
County, Indiana.
and which has Key Number 25-1013-021111 presently, 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
remonstrance's 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 two (2) 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 properly tax deduction for a period of four (4) years, 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 se .
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.
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Member of th mmon Council
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NOT APPROVED
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ADOPTER ~ 3
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULCVAAD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
Fax 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY "$L ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
February 7, 2008 EXECUTIVE DIRECTOR
Council Member Derek D. Dieter, Chairperson
Community & Economic Development~Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
Jade Elephant Holding, LLC (Lake Michigan Mailers, Inc.)
Dear Council Member Dieter:
Please f nd attached the Department of Community & Economic Development's report on a
commercial real property tax abatement petition for the above-referenced petitioner for a new facility
located at 3445 William Richardson Drive. Also attached is a copy of the petition, Statement of
Benefits form, and supporting information.
The report contains the Department's findings relative to the above petition. The petitioner, Jade
Elephant Holding, LLC (Lake Michigan Mailers, Inc.) proposes to construct an approximate 13,000
square foot mail assembly and document processing facility. The site is currently owned by Ancon
Construction Company, Inc. It will be purchased by Jade Elephant Holding who will in turn lease
the site to Lake Michigan Mailers, Inc. Jade Elephant Holding is seeking afour-year real property
tax abatement, and a representative of Jade Elephant Holding, LLC (Lake Michigan Mailers, Inc.)
will be available to meet with the Committee on Monday, February 25, 2008.
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 235-5835.
Sincerely,
~~ '~'~
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT
PAMELA C. MEYER DONALD E. INKS
574/235-9660 574/235-9371
FAX: 574/235-9697
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FINANCIAL HC PROGRAM
MANAC,EMENT
ELIZABETH LEONARD~-
574/235-9371
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY HL ECONOMIC. DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT RPPOR T
TO: SOUTH BEND COMMON COUNCIL
FROM: BOB MATHIA
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
JADE ELEPHANT HOLDING, LLC (LAKE MICHIGAN MAILERS, INC.)
DATE: February 7, 2008
On February 4, 2008, a petition for real property tax abatement consideration for property located at
3445 William Richardson Drive was filed with the City Clerk by Lake Michigan Mailers, Inc. on
behalf of Jade Elephant Holding, LLC. Pursuant to Chapter 2, Article 6, Section 2-82 of the
Municipal Code of the City of South Bend, this petition was referred to the Department of
Community and 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 and whether all zoning requirements have been met.
The Department of Community and Economic Development has reviewed the petition, investigated
the area, and makes the following report.
PROJECT SUMMARY
Jade Elephant Holding, LLC/Lake Michigan Mailers, Inc. are proposing to develop a 4.75 acre site to
include construction of an approximate 13,000 square foot mail assembly and document processing
facility. The facility will also serve as a "hot site" for disaster recovery for Lake Michigan Mailers'
document creation and mail assembly operations located in Kalamazoo, Michigan. In addition, the
site will serve as a sales facility and customer training site for customers located in northern Indiana.
The estimated cost of the building is $720,000. The site is currently owned by Ancon Construction
Company, Inc. It will be purchased by Jade Elephant Holding who will in turn lease the site to Lake
Michigan Mailers, Inc. Lake Michigan Mailers will own the equipment placed on the site.
COMMUNITY DEVELOPMENT - ECONOMIC DEVELOPMENT ~ FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS 1Vil1NAGEMENT
574/235-9660 574/235-9371 EL[znBerH LeoNaa~
Fax: 574/235-9697 5741235-9371
South Bend Common Council
RE: Jade Elephant Holding, LLC (Lake Michigan Mailers, Inc.)
February 7, 2008
Page 2
Total taxes to be abated during the (4) four-year abatement period are estimated at $61,526. Total
taxes to be paid during the (4) four-year abatement period are estimated at $36,914.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create five (5) new, permanent, full-time
jobs and six (6) new, part-time, permanent jobs within the first year representing a new annual
payroll of $250,000. The project is developing a completely new facility and, therefore, does not
have any existing employees.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has not been granted
or associated with any previous tax abatements:
2. The Building Commissioner 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 Airport Economic Development Area, which is a Tax Incremental Allocation Area;
therefore, the petition for real property tax abatement must first be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner does meet the
qualifications for afour-year (4) real property tax abatement under Section 2-82, Industrial
Development, City-wide General Standards.
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Tax Abatement Schedule prepared for: 8-1=eb-o8
JADE ELEPHANT HOLDING, LLC
(LAKE MICHIGAN MAILERS, INC.) .
Soufh Bend German Township 4 Year Real Property Abatement Schedule"
Total estimated Project Cost: $720,000
Base Assessed Value: $612,000
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 5.1376%
Assume constant SRTC of: 21.7293%
Assessed Gross
Year Value Tax
1 $612,000 $31,442
2 612,000 31,442
3 612,000 31,442
4 612,000 31,442
Less Net Percent Tax Tax
SRTC Tax Abated Abated Paid
$6,832 $24,610 100% $24,610 $0
6,832 24,610 75% 18,458 6,152
6,832 24,610 50% 12,305 12,305
6,832 24,610 25% 6,153 18,457
$98,440 $61,526 $36,914
Total Taxes Due During Abatement:
Total Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
$98,440
61,526
36, 914
• -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values wil{ ultimately be determined by the actual
assessed valuation and the then current tax rates.
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Jade Elephant Holding LLC
Public Benefit Points Sum mary
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Proiect Related:
1. A. Redevelop a Site that has Special Needs N 0 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan N 0 36
Sub-total Project Related: 0 120
2. Super Size Projects (point values are cumulative):
A. 100% to 199% Y 25 25
B. 200% to 299% N 0 68
C. 300% to 399% N 0 65
D. 400% and Over N 0 52
Sub-total Super Size Projects: 25 210
3. Construction Related:
A. Employ Local Companies N 0 20
B. Purchase Materials from Local Companies N 0 20
C. Require Employees vs. Independent Contracts Y 19 19
D. Require Target Wage Levels N 0 22
E. Require Health Benefits Y 22 22
F. Require Pension Benefits Y 18 18
G. Maintain Affirmative Action Plan Y 20 20
Sub-total Construction Related: 79 141
4. Wage 8 Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
C. Provide Pension Benefits Y 29 29
D. Provide Training Y 28 28
E. Provide Child Care N 0 15
F. Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage & Benefit Related: 124 162
5. Workforce Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs N 0 41
C. Maintain Affirmative Action Plan Y 35 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 77 152
6. Pav for Municipal Infrastructure:(point values are cumulative):
A. Pay for Oversizing or Upgrading N 0 14
B. Pay for 26-50% of Extension Cost N 0 26
C. Pay for 51-75% of Extension Cost N 0 39
D. Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7. Support a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 305 1000
' Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
COMPANY NAME
Additional Years of Abatement
Multi-family Development Projects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Projects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 1000 7
Subtotal from Points Summary: 305
Base Years of Abatement 3
Additional Years of Abatement: 1
Total Years of Abatement: 4
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City of South Bend
Petition for
Real Property Tax Abatement
Consideration
Respectfully Submitted By:
David C. Rhoa -President
Lake Michigan Mailers, Inc
3777 Sky King Blvd
Kalamazoo, Michigan 49009
269-488-9220
drhoaCc~barcodemail.com
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CITY OF SOUTH BEND
PETITION FOR REAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of real property, located within the City of South Bend,
hereby petition the Common Council of the City of South Bend for real 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 states the following:
1. Describe the proposed redevelopment or rehabilitation project, including
information about physical improvements to be made, the proposed use of
the improvements, and a general statement as to the importance of the
project to your business:
Pending the granting of the tax abatement, Ancon Construction Company,
Inc. (Ancon) of Goshen, Indiana has proposed to Jade Elephant Holding
LLC (JEH) of Mattawan, Michigan and Lake Michigan Mailers, Inc. (LMM)
of Kalamazoo, Michigan to sell to JEH the property described herein and
construct a mail assembly and document processing facility of the size
herein described.
This facility will be leased by JEH to LMM under along-term lease.
This facility represents the largest facility construction project undertaken
by LMM since 1999. The facility described herein is a critical component
of LMM"s long-term strategy for serving customers in Northern Indiana for
the provision of mail assembly, daily mail processing and document
creation. The facility will also serve as a "hot site" for disaster recovery for
LMM's document creation and mail assembly operations located in
Kalamazoo, Michigan. The facility will also serve as a sales facility and
customer training site for customers located in Northern Indiana.
The building will initially be constructed as a single story facility of
approximately 13,000 square feet on the parcel described herein
(currently owned by Ancon). It is essential to LMM's strategic plan that
the facility described herein be expandable to meet anticipated volume
growth and evolving technology. As such, the site plan for the facility
includes options for substantial building expansion so as to accommodate
additional processing and assembly volumes.
Land Size 4.75 acres;
Building Size: 13,000 sq.ft. (Initial size only.)
(Rev 12/29/06)
2. Describe the overall nature of the business and of the operations occurring
at the Property (attach additional sheet if more space is needed):
Currently, the parcel described herein is vacant, unimproved land.
LMM is a leading provider of mail assembly, direct mail marketing, daily
mail processing and document creation services.
If the LMM receives the requested tax abatements, it intends to offer the
following services from this location:
• Daily Mail Services including Premier Post®, Premier Post® Flats,
Option Free®, Option Free® Governmental, Option Free®
University, SortMaxT"", Mail ExpressT"'
• Direct Mail Assembly Services
• Direct Mail Campaign Development and Management
• Production Services for MailProT"" clients.
• Document creation and statement processing through RIPDocs®
The services described above represent LMM's core functionality and
involve the use of high-speed, technology-based equipment for the
manufacture, assembly and processing of data, documents, direct mail,
parcels, and First-Class mail for final delivery by the United States Postal
Service, FedEx, UPS and similar carriers.
3. Estimate the dollar value of the project (excluding land):
The value of this petition (excluding the land price) is $720,000.00. This
value excludes any tangible personal property (including manufacturing,
R&D equipment, logistical distribution equipment and IT equipment) that
may be installed by LMM. LMM intends to seek tax abatements on select
tangible personal property under a separate petition to the Common
Council of the City of South Bend.
4. The current assessed valuation of the real property before rehabilitation,
redevelopment, economic revitalization, or improvement:
$64,700.00 (3/01/2006)
2
(Rev 12/29/06)
5. (a)The real property for which tax abatement consideration is petitioned
(Property) is owned or to be owned by the following individuals or
corporations (if the business organization is publicly held, indicate also the
name of the corporate parent, if any, and the name under which the
corporation has filed with the Securities and Exchange Commission):
Pending the granting of the tax abatement, Ancon will sell the property
and the building to:
Jade Elephant Holdings LLC
25880 Trestle Creek Ave
Mattawan, MI 49071
Jade Elephant Holdings LLC is owned as follows:
Wingham Group, LTD.
4025 Wildon Court
Buchanan, MI 49107
Ownership of Jade Elephant Holdings LLC: 50%
Big W. Holdings, LLC
2329 Riverside Pointe Drive
Saint Joseph, MI 49085
Ownership of Jade Elephant Holdings LLC: 50%
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(Rev 12/29/06) ~;~_'~,~`~~
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(b) The following other person(s) lease, intend to lease, or have an option
to buy the Property (include corporate information as required in 5(a)
above, if applicable);
Pending the granting of the tax abatement, JEH will lease the property
and the building to:
Lake Michigan Mailers, Inc.
3777 Sky King Blvd
Kalamazoo, MI 49009
Lake Michigan Mailers, Inc. is owned as follows:
Robert J. Rhoa
2329 Riverside Pointe Drive
Saint Joseph, MI 49085
Ownership of Lake Michigan Mailers, Inc.: 60%
Karen Rhoa
2329 Riverside Pointe Drive
Saint Joseph, MI 49085
Ownership of Lake Michigan Mailers, Inc.: 30%
David Rhoa
25880 Trestle Creek Ave
Mattawan, MI 49071
Ownership of Lake Michigan Mailers, Inc.: 10%
6. The commonly known address of the Property is:
3445 William Richardson Drive, South Bend, 46628
7. The Key Number(s) of said property is:
25-1013-021111
8. A legal description of the above address is attached hereto, marked Exhibit
A, and incorporated herein.
9. A map and/or plat describing the Property is attached hereto, marked
Exhibit B, and incorporated herein.
10. Photographs of the property, taken within two (2) weeks of filing of this
petition, are attached hereto, marked Exhibit C, and incorporated herein.
4
(Rev 12/29/06)
11.The redevelopment or rehabilitation project itself is expected to create five
,(5~ full-time and six 6 part-time permanent jobs within the first year,
representing an estimated new annual payroll of $250,000.00. (Excluding
LMM's contribution to the associate's medical insurance premium, life insurance
premium, as well as, hazardous-duty pay, on-call pay and tips, back pay,
overtime pay, non-production bonuses, and tuition reimbursements. The dollar
value above includes LMM's guaranteed contribution to the associate's 401 (k)
plan once plan requirements are satisfied, as well as incentive pay including
commissions and production bonuses.)
(Rev 12/29/06)
5
12.The projected annual salaries for each new position indicated above are
estimated to be as follows (If more space is needed, please attach a
separate sheet):
Pending the granting of the tax abatement, LMM anticipates creating the
positions detailed below at the South Bend facility.
While full-time positions offer a more robust benefits package than that of
part-time positions, LMM typically does not pay a different hourly rate for
part-time positions versus similarly classified full-time positions. In short,
the only variable in annual costs for such differential is the total number of
hours worked. In the projection below, apart-time position is based on 25
hours per work week.
The "Mail Processor -Route Driver" position offers atwo-tier hourly rate;
a Mail Processor wage and a Route Driver wage.
The estimation below assumes a properly qualified/experienced individual
following LMM-provided training for specific menu of responsibilities. All
positions will be created based on business growth and market demands.
LMM is an Equal Opportunity Employer.
The dollar values include LMM's guaranteed contribution to the
associate's 401(k) plan once plan requirements are satisfied; holiday pay
and vacation pay. The dollar values exclude LMM's contribution to the
associate's medical insurance premium, life insurance premium, as well
as, hazardous-duty pay, incentive pay including commissions and
production bonuses, on-call pay and tips, back pay, jury duty pay,
overtime pay, severance pay, shift differentials, non-production bonuses,
and tuition reimbursements.
• Team Leader (Full-Time): $35,000.00
• Lead Operator - MLOCR (Full-Time): $28,000.00
• Mail Processor (Part-Time): $12,300.00
• Mail Processor -Route Driver (Full-Time): $21,800.00
• Account Executive (Full-Time): $40,000.00
6
(Rev 12/29/06)
13. Provide current employment wage information including; base rate, cost-of-living
allowances, hazardous-duty pay, incentive pay including commissions and
production bonuses, on-call pay and tips. Do Not Include; back pay, jury duty
pay, overtime pay, severance pay, shift differentials, non-production bonuses,
and tuition reimbursements (average hourly rate or range):
LMM's current employment wage information for its Kalamazoo facility is
detailed below. Please note that pending the granting of the tax
abatement, LMM intends to hire, when possible and practical, from the
local (i.e. South Bend/Northern Indiana market). While LMM would
anticipate creating the positions with the wages detailed in question #12, it
does not expect to create "Administrative" or "Executive" positions at the
South Bend facility.
The following dollar values include the base hourly wage for both Full-
Time and Part-Time associates. All positions are expressed as hourly
wages. Salaried positions are expressed as hourly wages based on a 40-
hourwork week. They exclude LMM's contribution to the associate's
medical insurance premium, life insurance premium, LMM's guaranteed
contribution to the associate's 401(k) plan once plan requirements are
satisfied, as well as, hazardous-duty pay, incentive pay including
production bonuses, on-call pay and tips, back pay, jury duty pay,
overtime pay, severance pay, shift differentials, non-production bonuses,
holiday pay, vacation pay and tuition reimbursements.
The job classifications used in this petition differ from those used by LMM.
However, for the purposes of clarity, LMM has submitted the data using
the classification of the petition shown below.
Full-Time Part-Time
• Laborers: $8.51-$11.39 $7.50 - $8.75
• Technical: $10.45-$14.63 N/A
• Managerial: $16.38-$18.50 N/A
• Administrative: $34.50-$42.50 N/A
7
(Rev 12/29/06)
14.Indicate whether your company provides the following benefits (use Y/N):
YES Health Care Benefits -LMM provides two health care insurance
plans. LMM's contribution of the monthly premium varies based on the
coverage plan selected by the associate and ranges from 67°l° of the
single associate monthly premium to 91.2% of the single associate
monthly premium.
YES Pension Plan -LMM provides a guaranteed contribution of 3.0% of
the associate's gross wages into an associate-controlled 401(k) plan. In
addition, LMM offers a discretionary profit sharing contribution of 0.1
based on the associate's gross wages. Participation in the Lake Michigan
Mailers, Inc. 401(k) Profit Sharing Plan is based on several criteria
detailed in the Summary of Plan Benefits.
YES Employer Provided Training (recognized or certified
training/educational courses or programs) -LMM provides paid training
for all associate training for the following activities:
• Mailpiece Quality Control Specialist - As implemented and certified
by the United States Postal Service.
• Forklift Training -Pursuant to training guidelines provided by the
Michigan Occupation Health and Safety Administration (MIOSHA)
for the purposes of self-certification.
• Lake Michigan Mailers Quality Process Management - As reviewed
and approved by the United States Postal Service
NO Day Care (provide or contribute to the cost of child day care for its
employees)
NO Transportation Assistance (provide direct or indirect support and
assistance to its employees without private transportation to get back and
forth from residence to place of employment)
NO Employer-Assisted Housing Program (provide an employer-
assisted home ownership program)
NO Taraeted Hirina Preference (provide hiring preference for residents
of Census Tracts designated by the Community & Economic Development
Dept. that have the highest unemployment or the highest percentage of
low and moderate income individuals).
(Additional information may be requested for verification of the above
items)
8
(Rev 12/29/06)
15. List the real and personal property taxes paid at the location during the
previous five years, whether paid by the current owner or a previous
owner: (this information may be obtained from the St. Joseph County
Treasurers office 235-9531)
The following real property taxes were paid by Ancon. As the property is
currently vacant/unimproved land, no personal property taxes have been
assessed. As of the date of this petition, Ancon has not received its 2007
tax invoice.
Year Real Property Taxes Personal Property Taxes
Not Applicable -
2002 $ 1,964.41 Vacant/Unimproved Land
Not Applicable -
2003 $ 2,101.67 Vacant/Unimproved Land
Not Applicable -
2004 $ 2,100.26 Vacant/Unimproved Land
Not Applicable -
2005 $ 2,211.68 Vacant/Unimproved Land
Not Applicable -
2006 $ 2,553.18 Vacant/Unimproved Land
Not Applicable -
2007 Pending Vacant/Unimproved Land
9
(Rev 12/29/06)
16. Please list the number of full-time and part-time minority employees for
each of the last three years:
LMM has always had and adheres to a policy of Equal Employment
Opportunity, as evidenced by its written Equal Employment Opportunity
policy that is contained in its Associate Handbook. A copy of that policy is
attached hereto and marked as Exhibit D. Because LMM does adhere to
this policy, we do not consider an individual's race, color, age, religion,
gender, etc. in determining whether to hire, promote, retain or discipline
associates. For the same reason, we do not maintain specific statistics
about the demographics of our workforce, nor do we compel associates to
self-identify their demographic characteristics. Having said that, our best
estimate of the composition of our workforce is shown on Exhibit E
attached hereto.
17. Does your business maintain an affirmative action plan or other similar
plan in order to achieve racial diversity? If yes, please briefly indicate
specific goals, objectives, and means as designated by your plan:
LMM has always had and adheres to a policy of Equal Employment
Opportunity, as evidenced by its written Equal Employment Opportunity
policy that is contained in its Associate Handbook. A copy of that policy is
attached hereto and marked as Exhibit D. Because LMM does adhere to
this policy, we do not consider an individual's race, color, age, religion,
gender, etc. in determining whether to hire, promote, retain or discipline
associates.
10
(Rev 12/29/06)
18.Indicate whether or not your project meets any of the following criteria
(contact Community & Economic Development Dept. 235-9335 for
information on this section):
NO Conversion to residential use of a commercial Eligible Building as
designated by the Community & Economic Development Dept.
NO Rehabilitation of a building that is either designated as a National
Register or local landmark or is eligible for nomination as one, located in a
National Register or local landmark district, or rated as Outstanding or
Significant in the most recent Historic Preservation Commission county
wide survey.
NO Rehabilitation and reuse of a property that is designated a Problem
Property by the Community and Economic Development Department
NO Pays for the cost of cleaning up a Brownfield, which is any site,
building facility or complex that has been designated a brownfield by the
Community and Economic Development Department.
_?_ Achieves a physical element identified in a development or
revitalization plan that has been approved by the Council.
• LMM is uncertain as to the proper answer for this question.
11
(Rev 12/29/06)
19.Is your business based upon licensing intellectual property from research
conducted at a public or private university, college, or community college
located within St. Joseph County, Indiana? If yes, please include a
description of the research based aspects of the business (attach
additional sheet if more space is needed):
No. LMM's business is not involved in licensing intellectual property from
research conducted at a public or private university, college, or community
college located within St. Joseph County, Indiana.
20. Does your business financially support a Municipal Facility (i.e. municipally
owned park, recreation center, cultural, arts, or entertainment facility)?
No. LMM does not financially support a Municipal Facility.
21.Is your company incurring any of the cost of extension or oversizing of
municipal infrastructure serving the project site? This includes water,
sewer, drainage facilities, wastewater treatment facilities, road and street
improvements, street lighting, traffic control and related public
improvements (attach additional sheet if more space is needed):
No. This project is not expected to include any extension or oversizing of
municipal infrastructure serving the project site
22.Information is required on the companies through which construction
materials will be purchased for the project. (Please complete the table on
page 8 of this application).
23.Information is required on the construction companies that will be utilized
for construction of the project. (Please complete the table on page 9 of this
application).
24.No building permit has been issued for construction on the property in
connection with the improvement in question as of the date of filing of this
petition. (The Property Owners signature at the end of this application is
verification of this statement).
12
(Rev 12/29/06)
25.The Standard Industrial Classification (SIC) or North American Industry
Classification Systems (NAICS) major group within which the proposed
project would be classified, by number and description:
The Standard Industrial Classification (SIC) of 7331 -Direct Mail
Advertising, while used in for select governmental reports, does not fully
reflect the full spectrum of services offered by LMM.
Where permissible, LMM prefers to utilize the North American Industry
Classification System (NAICS). The following NAICS codes are most
applicable to the services provided by LMM:
• 541860 Direct Mail Advertising
• 561499 All Other Business Support Services
• 561439 Other Business Service Centers
• 323119 Other Commercial Printing
• 518210 Data Processing, Hosting and Related Services
• 492210 Local Messengers and Local Delivery.
26.The Internal Revenue Service Code of Principal Business Activity by which
the proposed project would be classified, by number and description:
• 561490 Other Business Support Services
27.The current use of the Property is vacant/unimproved land and the current
zoning is Light Industrial.
28. Has your business been granted previous tax abatement(s)? If yes, please
provide type (real and/or personal property) and date of approval.
No. Neither LMM or JEH have been granted previous tax abatement.
13
(Rev 12/29/06)
29.Other anticipated public financing for the project including, if any,
industrial revenue-bonding to be sought or already authorized, assistance
through the United States Department of Housing and Urban Development
funds from the City of South Bend, Small Business Association Sections
503 and 504 financing through the Business Development Corporation of
South Bend, Mishawaka, and St. Joseph County, Indiana, Industrial
Revolving Fund, Neighborhood Business Development Corporation,
Corporation for Entrepreneurial Development; or other public financial
assistance, including but not limited to public works improvements.
Neither LMM or JEH have applied or expect to apply for any of the
financing opportunities described in question 29.
30.The following person(s) should be contacted as Petitioners agent
regarding additional information and public hearing notifications:
David C. Rhoa
President
Lake Michigan Mailers, Inc.
3777 Sky King Blvd
Kalamazoo, MI 49009
Office: 269-488-9220
Cell: 269-217-9043
31. Please indicate the name, address, and telephone number of the person
who will work with Employment Training Services (ETS) for employee
recruitment, and sign the ETS form attached to the petition if the real tax
abatement is for warehouse or industrial developments.
David C. Rhoa
President
Lake Michigan Mailers, Inc.
3777 Sky King Blvd
Kalamazoo, MI 49009
Office: 269-488-9220
Cell: 269-217-9043
~~~~~~
f~~~~ t ~~~`t~`~
,~
~ 2008
F~~
N G"yY ~~
14
(Rev 12/29/06)
WHEREFORE, Petitioner requests that the Common Council of the City of South
Bend, Indiana, adopt a declaratory resolution designating the area described
herein to be an economic revitalization area for purposes of tangible real property
tax abatement consideration, and after publication of notice and public hearing,
determine qualifications for an economic revitalization area have been met, and
confirm such resolution. Petitioner herein hereby verifies that the required
$250.00 filing fee to cover processing and administrative costs pursuant to
Section 2-84.7 of the Municipal Code of the City of South Bend has been paid in
full.
Contact: Doug VonGunten
Ancon Construction Company, Inc.
2146 Elkhart Rd
Goshen, IN 46527
~~/~~~
By:
(Signed Name)
Doug VonGunten
Project Manager
(Typed or printed name and capacity of signor if signed by an agent or representative of
the owner.)
(~ `yam E ~ '"Fr'~
a;~C! 61C C`~~~~ °~y' ~R~4d
F
r~n ~ ~ ~O~V
;,;~. r c.~ r.~.
15
(Rev 12/29/06)
22. In the following chart please indicate companies that were used for purchasing materials used in the construction or rehabilitation associated with the project.
Include the location of the company, description of the materials, and cost of the materials. Local companies include those located in St. Joseph County.
Additional information may be requested for verification of this information. (If more space is needed, please photocopy this page)
of
Name and Address of Company Description of Materials Cost of Materials Grand Total
Local Companies (see above):
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Total Local
Non-Local Companies:
1.Ancon Construction (2146 Elkhart Rd, Goshen, IN 46526 General Construction
2.Butler manufacturing (Kansas City, MO) Pre-engineered metal building
3.
4.
5.
Total Non-Local
GRAND TOTAL
F'tf;;~ 6,~ ~;e~ r ~.
FE6 - ~ 2iJ0~
~o;,N vc~o„c~
c~rvc«~n, so. e~F,~, ;rr.
16
(Rev 12/29/06)
23. In the following chart please list the companies that will be used for the construction associated with the project. Indicate the name and address of each company;
list the dollar amount of the work to be provided by each company; indicate whether or not 100% of the workers are employees of that company and not independent
contractors; indicate whether or not the company pays workers wages that meet the wage rates for each classification of laborers and mechanics published by the
U.S. Department of Labor; indicate whether or not the company contributes to a health plan for its employees; indicate whether or not the company contributes to a
pension plan for its employees; and indicate whether or not the company maintains an affirmative action plan or other similar plan to achieve racial diversity. Loca!
companies include those located in St. Joseph County. Additional information may be requested for verification of this information. (If additional space is
needed, please photocopy this page).
100% Workers Pay Maintain
are Employees U.S. Dept. Contribute Contribute Aitnr~tiue
Name and Address of Contract (Not Independent Labor Wage to a Health to a Pension Action
Construction Company Amount Contractors) Rate (Y/N) Plan (Y/N) Plan (Y/Nl Plan(YIN)
Local Companies (see above):
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Total Local
Non-Local Companies:
1.Ancon Construction
2.
3.
4.
5.
Total Non-Local
GRAND TOTAL
Total Project Cost from Petition
Difference (Please explain):
$72,000.00
Yes No Yes
FED - '- ~Gu3
~~I'4i~ ~vCCai:
CITY C~ L'.^i, '.~i:. ,''`!l !Ai
Yes Yes
17
(Rev 12/29/06)
CITY OF SOUTH BEND
PETITION FOR REAL PROPERTY
TAX ABATEMENT CONSIDERATION
Exhibit A
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