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Home My WebLink About20-14- Confirming Personal Property Tax Abatement for Bamar Plastics of 03TH 8�'1' � G ra ��A= a� >t moi+ x 1865 CITY OF SOUTH BEND COMMUNITY INVESTMENT May 6, 2020 Council Member Jake Teshka, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601. RE: Personal Property Tax Abatement Petition for: Bamar Plastics, Inc. Dear Council Member Teshka: Please find the attached information pertaining to a personal property tax abatement petition submitted by a woman-owned business, Bamar Plastics, Inc. to purchase the new manufacturing equipment for a facility located at 1702 Robinson Street, South Bend, IN 46613.The company,which has primarily served the automotive industry, is expanding into medical device manufacturing.This petition package includes: ➢ Department of Community Investment's summary report ➢ Petition ' Statement of Benefits Personal property form > Supporting information The report contains the Department's findings relative to the petition. The petitioner proposes to purchase the new manufacturing equipment with estimated cost of $647,000. A representative from Bamar Plastics will be available to meet with the Committee on Monday, May 11, 2020. Should you or any of the other Council members have any questions concerning the report, or need additional information, please feel free to email or me at dbuckenm@southbendin.gov. Sincerely, Daniel J. Buckenmeyer Director, Business Development D.MELD.BUCKE`\(EYF.R ALKE\\A ALDRII)CE PAMELA MEYER 'ELM C:ORCORAN BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC:EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&CONIMUNI I V 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: Daniel Buckenmeyer, Director of Business Development SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: BAMAR PLASTICS,INC. DATE: May 6,2020 On Monday, April 20, 2020, a petition from Bamar Plastics, Inc. was received and subsequently filed with the City Clerk for a personal property tax abatement. Bamar Plastics is located at 1702 Robinson Street, South Bend, IN 46613. 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) and makes the following report. PROJECT SUMMARY ➢ Private investment in personal property — new manufacturing equipment, with purchase price of$647,000.The company is planning to purchase large presses and IT equipment. > A woman-owned business, Bamar Plastics, which has primarily served the automotive industry, is expanding its business product line and moving into the medical field. The medical line requires high volumes, larger part sizes and assembly. > An estimated amount of personal property taxes for a 5-year period with this private investment is $11,673. EMPLOYMENT IMPACT Per this petition, it is estimated that the company will: > Retain fourteen (14) permanent full-time jobs representing a total annual payroll of$680,205. The hourly average wage is$23.35. > Create one (1) new permanent, full-time job within the first year of this tax abatement with a total estimated annual payroll of$60,000. The estimated hourly average wage is$28.85. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been granted or associated with two previous abatement. a. Resolution#2782-99, 5-Year Personal Property b. Resolution#4440-15, 5-Year Personal Property 2. The Area Plan Commission 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 not located in a TIF district. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for a five (5) year personal tax abatement under section 2- 84.2, Tangible Personal Property Tax Abatement. 5 YEAR 6-May-20 Bamar Plastics South Bend Portage Township Personal Property Tax Abatement Schedule* Tax Key Number TBD Current Assessed Value: 0 Estimated Project Cost: 647,000 100% 95% 85% 75% 65% Year 1 Year 2 Year 3 Year 4 Year 5 Current Assessed Value: AV&Tax Current Assessed Value 100% 0 0 0 0 0 0 Base Assessed Value 258,800 388,200 355,850 291,150 239,390 Less Abatement Deduction (258,800) (368,790) (302,473) (218,363) (155,604) Net Assessed Value 0 0 19,410 53,378 72,788 83,787 Property Taxes: Assume constant tax rate of 5.0894% 5.0894% 5.0894% 5.0894% 5.0894% 5.0894% Gross Tax(tax rate x net assessed value) 0 0 988 2,717 3,704 4,264 Less Circuit Breaker Credit 0 0 0 0 0 0 Net Tax 0 0 988 2,717 3,704 4,264 Circuit Breaker Cap Circuit Breaker 3.0000% 0 7,764 11,646 10,676 8,735 7,182 Debt Service 0.0000% 0 0 0 0 0 0 Circuit Braker Cap 0 7,764 11,646 10,676 8,735 7,182 New Combined Net Existing Project Existing&New Tax Tax Year Taxes Taxes Taxes Abated Paid Year 1 0 7,764 7,764 7,764 0 Year2 0 11,646 11,646 10,658 988 Year 3 0 10,676 10,676 7,959 2,717 Year 4 0 8,735 8,735 5,030 3,704 Year 5 0 7,182 7,182 2,918 4,264 Totals 0 46,002 46,002 34,329 11,673 'This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. City of South Bend Petition for Incentives Petition muff include o$250 filingfee payable to the City Clerk's office or online via the City's website at http://southbendin.gov/government/content/tox-abatement before processing con be complete General Information Project Name 20-21 Automation Project Number Legal name as registered with Secretary of gamer Plastics, Inc. $tate Business structure Manufacturer CDn'°an'lsNe a www.bamarplastics.com Proposed Project Information Proposed project address 1702 Robinson St. Parent company name City,set.,req South Bend,IN 46613 legal owner Heather Meixel Site acreage or acreage required is the real estate owned or Leased benne/ Square fret of facility 35,000 If leased by whom HCDM Real Estate Holdings LLC Primary Contact Information Primary company contactname Tricia Blair r�` Controller/Secretary Address otcompany contact 1702 Robinson St. Phone 574-234-4066 up,State,rip So ;h Bend,IN 46613 Email tblair@bamarplastics.com Senior Official Information Company senior official name Heather Meixel rite President/Owner ess Addrof company contact(if different Pram Phone 574-309-1892 above/ City.State,Bp Email heather@bamarplastics.com Consultant Information/Agent Hired business consultant/agent name ?Consultant release(y/N) Add Ks Local economic development partners approvalfy/nl may,State,Zip Em ei I Project Overview Brief description of yew company,project,and wnythe Bamar Plastics, Inc. is a custom injection molder of small parts. In the past we property is necessary far primarily served the automotive industry(90%). We are moving into the medical economic growth devices manufacturing arena. The medical field requires high volumes, larger part size and assembly. In order to be competitive in this space we need larger presses, automation and improved IT capabilities. This expansion of services and capabilities is vital to the continuation of the company. With the recent COVID-19 Pandemic and the shutdown of the automotive sector worldwide it is imperative our company pivot into other markets. This is necessary for the company's growth,diversification and continued viability. Certified Tedsnology Pah appropriate - -- Is the project Ina Tu rnaemertel Financing RIF 1 arta?if to.Which' Certify that the Building Permit has not been Number of retidennal units created by Issued fvfel) oro!er. Ifthis is a petition foe personal property tan abatement,has the equloenent been Installed No, (some eq,..pment ras aeon ordered) Investment Details Public Infrastructure needs(Offs 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 prolect in dollars) received? Indiana for the project? purchased from out of state for the project? $60,000 (estimated) $590,000 (estimated) New Protect Investments Calendar Year 2020 2021 2022 2023 2024 2025 2026 2027 Land Acquisition Budding leasee Payments Building Purchase Costs New Building Construction Earsing Buliding Improvements New Machinery L Equipment S 212.000.00 $220,000 20 Special Tooling/Retooling New Furniture/Fames New Computer/it Hardware 5 55,000 00 5 I62.200 00 New Software ' On-site Rail Infrastructure On-Ute Fiber Infrastructure TOTAL $265.000 00 $382 ODD 00 $0 00 $0.00 $0.00 $0 00 _ $000 $0 00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Total hourly Cumulative a of net NEW full time Hourly average wage,w/o Total training Total 0 to be wage w/o permanent lobs created at psofect benefits or bonuses,of expenditure- trained-not fringe or cumulative net new Jobs not cumulative bonuses cumulative 2020 1. 3312-1 �.26 CC, /Bu 2022 2023 2024 202.5 2026 2027 2028 2029 2080 2083 Provide hourly wage information for new employees in the following positions. Full time I Part time Laborers Technical Managerial Administrative Who will be me mdmduat rssponvlie for coordinating with Worrone onrraultbrgf Tricia Blair Does your company have an EFA hiring pokey? Yes 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 2018* and recruitment efforts for the last 2018 2019- three years as well as current polides. Full Time Part Time Fun Time Part Time Full Time Part Time Black • 1 1 2 We have,m¢eu hvzOne -.aline Job Fays Nigh School Recruitment Fats and Hispanic Indeed 0 roach potential candidates We baso hienj der.Knrs sore),en lee candidales ab:Gly Asian In compiele the job We KI I conhnue to use resources at Cu: Indian 1 1 2 disposal Female 1 7 5 12 11 5 .erp oymont man ze•s refueled Icrminaled elnp'.oyees throughout the year as well Other 20 3 10 3 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. Qualify Please complete the table below with the appropriate information. If 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%) N/A 20 B. Purchase Materials from Local Companies(75%) NiA 20 C. Require Employees vs.Independent Contractors 10 D. Require Prevailing Wage(Davis Bacon) .. . 22 Require Health Benefits 22 F. Require Pension Benefits 14 G. Maintain Affirmative Action Plan 20 Sub-total Construction Related: 0 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels YES 33 B. Provide Health Benefits YES 34 C. Provide Pension Benerrts SES 29 29 D. Provide Training YES 28 28 E. Provide Child Care NO 0 F. Provide Transportation Assistance NO 3 G. Provide Employer Assisted Housing program Sub-total Wage&Benefit Related: '24 .._ 3 Workforce Related: A. Create New Jobs ,ES ••. B. .Retain Existing Jobs C. Maintain Affirmative Action Plan 'ES _- D. Provide Targeted Hiring Preference Y E S • Sub-total Workforce Related: 1'7 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the N O A. zoo,conservatory,museum,etc.) Name of Facility [Sub-total Municipal Facility: Subtotal from Above: 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.,fcr this petition state the above. Submitted By: 1 `.✓Lim � �=�✓-1 Date: '.// L/ )C -Z For Staff Use Only Below This Line What Is the current assessed value? Real Property: Personal Property: -766/ 7'U!' OAU What Is the projected assessed value? Real l Property: Personal � What is the tar key number for this project? -7/_/02.6' _f ?Z"�Co — v What is thesis digit hLIICS code? �I . please attadr a Boogie map and street New of the location. Please Rst the amount of real and personal property tales Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. cSO/p _,r,Yeat One �1�, �t1h �(jV Year Two w� Year Throe o75-/ �3 43 d92 C �li,�� /J"i! Year Four u/6/r' .�‘'1 /NC•'�/O Year Fite �,, / b, /// Please fill out the following Public Benefit Summary Information and add to total from above. 1YorNI Points Points Public Benefit Item: Efflitailidelt 5 A Redevelop a Site that has Spedal Needs 49 r B Develop Based on Local University Research 35 Achieve a Physical Element of a Plan 35 ISub-total Project Related: i 20 6 Suver Size Projects foam s values are Sumulatlyel: A. 100%to 199% B. 200%to 299% 66 C 300%to399% 65 D. 400%and Over 52 Subtotal Super Site Projects: 210 pay for Municipal Infrastructure: (_\ A. Pay for Overshing or Upgrading ) 1 a B. Pay for 26-SO%of Extension Cost J/ 25 C. Pay for 51-75%of Extension Cost 39 D. Pay for 76-100%of Extension Cosy 52 ISub-total Infrastructure Related: 13 Total from Applicant Section: 2- 539 Total from Staff Section: O 461 Total Public Benefit Points: 2.7 6 too:: STATEMENT OF BENEFITS jcs 1 PERSONAL PROPERTY I FORM SB-1 /PP I �. t/ State Form 51764(R4/'1-15) i• ii Prescribed by the Department of Local Government Finance PRIVACY NOTICE Any informator concerning the cast of me property and specific salaries paid to indindual employees by the property owner is confidential per IC 6-1.1-12.1.5.1 INSTRUCTIONS 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted to the designating body BEFORE a person installs the new manufacturing equipment and/or research and development equipment,and/or logistical distribution equipment and/or information technology equipment for which the person wishes to claim a deduction- • 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the installation of qualifying abatable equipment for which the person desires to claim a deduction. 3. To obtain a deduction,a person must file a certified deduction schedule with the person's personal property return on a certified deduction schedule l (Form 103-ERA)with the township assessor of the township where the property is situated or with the county assessor if there is no township assessor for the township. The 103-ERA must be filed between January 1 and May 15 or the assessment year in which new manufacturing equipment ' and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional.unless a filing extension has been obtained. A person who obtains a filing extension must file the form between January 1 and the extended ' due date of that year. • 4 Property owners whose Statement of Benefits was approved,must submit Form CF-1/PP annually to show compliance with the Statement of Benefits (IC 6-1 1-12.1-5.6) 5 For a Form SB-1/PP that is approved after June 30,2013,the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/PP that is approved prior to July 1.2013,the abatement schedule approved by the designating body remains in effect. (IC 6-1.1-12.1-17) SECTION 1 TAXPAYER INFORMATION Name of taxpayer Name of contact person Bamar Plastics, Inc. Tricia Blair Address of taxpayer(number and skeet,city state,and ZIP code) Telephone number 1702 Robinson St.South Bend,IN 46613 ( 574 ) 234-4066 SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number(s) South Bend Common Council r Location of property County DLGF taxing district number 1702 Robinson St.South Bend,IN 46613 St.Joseph Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and/or information technology equipment. START DATE COMPLETION DATE (Use additional sheets if necessary) Injection Molding Presses Material Grinders Manufacturing Equipment 04/01/2020 01/31/2022 Robots Computers R&0 Equipment Conveyors Phone System Pickers IT Server Logist Dist Equipment ERP System CAD System IT Equipment 1 5 - .1 i• :ii SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 14 $560,5c5 I 14 $680,205 1 $60,000 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE:Pursuant to IC 6-1.1-12.1-5.1(d)(2)the MANUFACTURING R&0 EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT iiotfiPMENT COST of the property is confidential. COST ASSESSED COST ASSESSEC ASSESSEDVACOs' ', ASSESSED VALUE LUE ,s'_uE VALUE Current values 2,587,513 �_ 70,111 Plus estimated values of proposed project 432,104 217,000 Less values of any property being replaced 148,000 __L 13,000 Net estimated values upon completion of project 2,871,617 I I 274,111 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) --__=__I =stiroated nazardcus was;e convened(pounds/ OM-,. SECTION 6 TAXPAYER CERTIFICATION 1 hereby certify that the representations in this statement are true. Signature of authorized re ceeLfbve cii Dain • i --tit.0 11-ar) Printed name of authorized representative Tide Tricia Blair Secretary Page 1 of 2 FOR USE OF THE DESIGNATING BODY We have reviewed OUr prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution. passed under IC 6-1.1-12.1-2.5,provides for the following limitations as authorized under IC 6-1.1-12.1-2. A. The designated area has been limited to a period of time not to exceed calendar years'(see below). The date this designation expires is . NOTE.This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to 1 .Installation of new manufacturing equipment; ❑Yes 0 N o ❑ Enhanced Abatement per IC 6-1.1-12.1.18 2.Installation of new research and development equipment; 0 Yes ❑N o Check box if an enhanced abatement was 3. Installation of new logistical distribution equipment. 0 Yes 0 N approved for one or more of these types. 4.Installation of new information technology equipment; ❑Yes 0 N C.The amount of deduction applicable to new manufacturing equipment is limited to$ cost with an assessed value of $ . (One or both lines may be filled out to establish a limit,if desired.) D. The amount of deduction applicable to new research and development equipment is limited to$ cost with an assessed value of S . (One or both lines may be filled out to establish a limit,if desired.) E. The amount of deduction applicable to new logistical distribution equipment is limited to$ cost with an assessed value of S . (One or both lines maybe filled out to establish a limit,if desired) F The amount of deduction applicable to new information technology equipment is limited to s cost with an assessed value of (One or both lines may be filled out to establish a limit,if desired.) G. Other limitations or conditions(specify) H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment and/or new information technology equipment installed and first claimed eligible for deduction is allowed for: El Year 1 0 Year 2 0 Year 3 ❑ Year 4 ❑ Year 5 ❑Enhanced Abatement per IC 6-t.I-12.t-I8 Number of years 0 Year 6 0 Year 7 ❑ Year 8 0 Year 9 0 Year 10 approved: (Enter one to twenty( (1-20)years,may not exceed twenty(20)years.) I. For a Statement of Benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? 0 Yes ❑No If yes,attach a copy of the abatement schedule to this form. If no,the designating body is required to establish an abatement schedule before the deduction can be determined. Also we have reviewed the infomialion contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved by:(signature and title of auMonzed member or designating body) Telephone number Date s,gnea(n.cnrn,day;yea.; Printed name of authorized member of designating body Name of designating body Altesred ny.(signature and rifle of attester) Printed name of attester 'If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17, IC 6-1.1-12.1-17 Abatement schedules Sec.17.(a)A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1)The total amount of the taxpayer's investment in real and personal property. (2)The number of new full-time equivalent jobs created. (3)The average wage of the new employees compared to the state minimum wage. (4)The infrastructure requirements for the taxpayer's investment. (b)This subsection applies to a statement of benefits approved after June 30,2013.A designating body shall establish an abatement schedule for each deduction allowed under this chapter.An abatement schedule must specify the percentage amount of the deduction far each year of the deduction. An abatement schedule may not exceed ten(10)years. (c)An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 Filed in Clerk's Office MAY Q 6 2020 RESOLUTION NO. 4855-20 DAWN vi:JONES CITY CLERK,SOUTH BEND,IN A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1702 Robinson Street, South Bend, Indiana 46613 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Bamar Plastics, 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 1702 Robinson Street, South Bend, Indiana 46613 and which is more particularly described as follows: Business Personal Property and which has Key Numbers to be assigned, 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 personal 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 personal property tax deduction for a period of five (5) years as shown below 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- 95% Year 3- 85% Year 4- 75% Year 5- 65% 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, President South Bend Common Council