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Home My WebLink AboutSM 06-24-93REDEVELOPMENT COMMISSION SPECIAL MEETING June 24, 1993 1308 County -City Building Presiding: Roman J. Pia.secki 227 W. Jefferson Boulevard Vice - President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Roman J. Piasecki, Vice - President Mr. Theo F. Sharp, Secretary Mr. Michael Donoho Members Absent: Ms. Paula Auburn, President Mr. Philip Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Ms. Martha Lantz, Recording Secretary Mr. Michael Beitzinger, Economic Dev. Specialist Media: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Others: Mr. David Stopczynski, AE Piston Mr. Dick Monagle, AE Piston 2. APPROVAL OF MINUTES There were no Minutes. 3. APPROVAL OF CLAIMS Claims submitted June 24, 1993 for Approval: ADMIN 1993 Recorders Office (Blackthorn) Auditors Office Federal Express South Bend Drafting Total Admin 1993 -1- THERE WERE NO MINUTES $ 104.00 75.00 49.75 3.60 $ 232.35 South Bend Redevelopment Commission Special Meeting - June 24, 1993 3. APPROVAL OF CLAIMS (Cont.) SBCDA TIF Real Estate Corp G.W. Berkheimer Co., Inc. NIPSCO Indiana Bell Telephone Howard Park Hardware C & S Service Inc. Total SBCDA TIF BOND ANTICIPATION NOTE The Troyer Group Palm & Associates Era Economic Research Assoc. Total Bond Anticipation Note LaFree Excavating Total Studebaker Corridor GRAND TOTAL Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Claims submitted June 24, 1993 for approval. 4. COMMUNICATIONS Ms. Manier read a letter from Michael B. Seitz of the Chamber of Commerce in support of the tax abatement request from AE Piston. -2- $ 1650.66 19.68 133.81 51.99 6.27 128.01 $ 1,990.42 11,661.00 600.00 5,000.00 17261.00 9,000.00 9)000.00 $ 28.483.74 COMMISSION APPROVED CLAIMS SUBMITTED JUNE 24, 1993 FOR APPROVAL COMMUNICATION FROM MICHAEL B. SEITZ, CHAMBER OF COMMERCE OF ST. JOSEPH COUNTY South Bend Redevelopment Commission Special Meeting - June 24, 1993 4. COMMUNICATIONS (Cont.) June 23, 1993 Redevelopment Commission 1400 County -City Building South Bend, Indiana 46601 Dear Members of the Redevelopment Commission: The Chamber of Commerce of St. Joseph County is a non-profit business organization that is made up of over 1, 400 firms that employ 75, 000 people in St. Joseph County. The Chamber also has 400 Chamber volunteers working on 31 various committees and a staff of 22 that meets and supports the overall Chamber mission statement which is to serve its members, stimulate economic progress and job opportunities, and enhance the area's quality of life. Within the Chamber is the Existing Business Development Division. The purpose of this division is to enhance existing business retention, success and growth. I'm contacting you on behalf of AE Piston's request for tax abatement for a major expansion. This company is seeking both real and personal property tax deduction on $7,100, 000 in upgrades. It is our understanding that the plans call for construction of a 59, 000 square foot addition to the existing building at an estimated cost of $4,200, 000. In addition, new equipment is to be installed at an estimated cost of $2.9 million. This work over the next two years will be an investment of approximately $21,000,000. In addition to the plant and capital investment, the company plans to create 156 new full -time jobs and add about $4,500, 000 to the payroll. -3- South Bend Redevelopment Commission Special Meeting - June 24, 1993 4. COMMUNICATIONS (Cont.) AE Piston was established in St. Joseph County in 1987 During the past five years they have been one of the most consistently growing manufacturers in employment and expansion. This outstanding company has also earned several certificates of recognition for producing quality automotive components. This proposed expansion supports the overall goals of the Chamber and of the Existing Business Development Division. Because of AE Piston's fine track record of capital and human investment in our community, the Chamber of Commerce highly endorses this tax abatement request. I respectfully request that you approve it. Sincerely, Michael B. Seitz Vice- President Existing Business Development Division 5. OLD BUSINESS a. Commission ayproval requested for Resolution No. 1165 approving an application for personal property tax deduction for property located at 3605 W. Cleveland Road in the Airport Economic Development Area. (AE Piston) Mr. Beitzinger read the staff report on the project. AE Piston Products is in the business of manufacturing automotive pistons. Their project calls for a 59,000 square foot addition to the building on Cleveland Road and the installation of a piston prototype machining line and a skirt coating line. The building addition will house foundry equipment, bulk melting equipment, the skirt coating line and -4- South Bend Redevelopment Commission Special Meeting - June 24, 1993 5. OLD BUSINESS (Cont.) a. continued... three machining lines. The construction will be identical to the existing building which is a single story steel frame with masonry and steel walls. It is estimated that the expansion will allow AE Piston to increase sales by 78%. The total estimated cost of the new building is $4,210,000 and the estimated cost of the new equipment is $2,900,000. The project will create a total of one hundred and fifty -six (156) new permanent, full-time jobs, representing a total annual payroll of $4,470,000. The project will also maintain two hundred and sixteen (216) existing full - time (and no part time) jobs representing an annual payroll of $4,210,000. AE Piston was granted a ten year real property and a five year personal property tax abatement on May 13, 1986. The property is properly zoned for the proposed use. The property is not located in a Tax Abatement Impact Area, but is located in a Tax Incremental Financing Allocation Area. The project qualifies for five years of personal property tax abatement and for 10 years of real property tax abatement under the Tax Abatement Ordinance. Without abatement, the taxes on the personal property would be approximately $269,965. With abatement, the taxes are estimated to be approximately $47,870. Therefore, the cost of the personal property tax abatement over the five years would be approximately $222,095. -5- South Bend Redevelopment Commission Special Meeting - June 24, 1993 5. OLD BUSINESS (Cont.) a. continued... Without abatement on the real property, real property taxes are estimated to be approximately $2,020,169. With abatement, the taxes are estimated to be $1,020,185. Therefore, the cost of the real property tax abatement over the ten year period is estimated to be approximately $999,983. Mr. Monagle, General Manager of AE Piston, explained that the personal property tax abatement petition concerns two projects of personal property. The first is a piston prototype line. It will be housed in the existing building and will employ twelve people. The work was formerly done in England. The second project is a piston skirt coating line. This is an additional coating that will be added to the skirt of the pistons. That will be housed in a small part of the new building to be built. That project is on a fast track and must be built this summer. The remainder of the new building, 56,000 square feet, will be started this fall and will house additional equipment which will not be purchased until 1994. However, the tax abatement is being sought in conjunction with this fast -track project. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1165 approving an application for personal property tax deduction for property located at 3605 W. Cleveland Road in the Airport Economic Development Area. (AE Piston) W COMMISSION APPROVED RESOLUTION NO. 1165 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3605 W. CLEVELAND ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (AE PISTON) + South Bend Redevelopment Commission Special Meeting - June 24, 1993 0 5. OLD BUSINESS (Cont.) b. Resolution No. 1166 approving an application for real property tax deduction for property located at 3605 W. Cleveland Road in the Airport Economic Development Area. (AE Piston Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1166 approving an application for ten years of real property tax deduction for property located at 3605 W. Cleveland Road in the Airport Economic Development Area. (AE Piston) 6. NEW BUSINESS There was no New Business. 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled to be July 2, 1993 at 10:00 a.m. COMMISSION APPROVED RESOLUTION NO. 1166 APPROVING AN APPLICATION FOR TEN YEAR S OF REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3605 W. CLEVELAND ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (AE PISTON) THERE WAS NO NEW BUSINESS THERE WERE NO PROGRESS REPORTS NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 1 5 a. m. Paula N. Auburn, President Ann t. Kolata, Director -7-