HomeMy WebLinkAbout21-14 Delta Management Company LLC Designating Tax AbatementFiled in Clerk's
Office
APR 0 6 2021
DAWN m- JONES CITY CLERIC, SOUTH SEND, IN
CITY OF SOUTHBEND
COMMUNITY INVESTMENT
April 6, 2021
Council Member Rachel Tomas Morgan, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Real Property Tax Abatement Petition for: Delta Management Company, LLC
Dear Council Member Tomas Morgan:
Please find the attached information pertaining to a real property tax abatement petition submitted by
Delta Management, LLC to expand the existing facility at 4755 Ameritech Drive, South Bend, IN 46628 for
KW Custom Controls, LLC. This petition package includes:
➢ Department of Community Investment's summary report
➢ Petition
➢ Statement of Benefits form
➢ Supporting information
The report contains the Department's findings relative to the above petition. The petitioner proposes to
invest approximately $1,800,000 in a new construction to accommodate growth of tenant KW Custom
Controls, LLC. Representatives from Delta Management Company, LLC and KW Custom Controls, LLC will
be available to meet with the Committee on Monday, April 12, 2021.
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 574-235-5823.
Sincerely,
Daniel J. Buckenmeyer
Director, Business Development
EXCELLENCE', ACCOUNTABILITY I 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 J. Buckenmeyer, Director of Business Development
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: Delta
Management Company, LLC
DATE: April 6, 2021
On Thursday, March 25, 2021, a petition from Delta Management Company, LLC was
received and subsequently filed with the City Clerk for real and personal property tax
abatements consideration for property located at 4755 Ameritech Drive, South Bend, IN
46628. 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), investigated the area, and makes the following report.
PROJECT SUMMARY
➢ Delta Management Company plans to expand the building at 4755 Ameritech
Drive, South Bend, IN with a $1.8m private investment and 30,000 SF addition in
order to accommodate growth of tenant KW Custom Controls, LLC.
➢ In September 2018, an investor group led by the Pfeil family restarted a previously
bankrupt business. The company rehired 50 people.
➢ Koontz-Wagner's origins date back to the 1920's when two brothers in South Bend,
Indiana began repairing motors in a small garage. Over the next 40 years, the
company diversified services, while maintaining a focus on electrification and
rotating equipment.
➢ Today, KW Custom Controls is focused solely on the construction and integration
of custom-built transportable packaged control houses. Across the globe, KW
Custom Controls has serviced a variety of industries including power generation,
oil & gas pipeline, power utility, materials handling, telecom or alternative energy.
➢ During the 5-year real property tax abatement, an estimated amount of taxes to be
paid is $34,063.
EMPLOYMENT IMPACT
Per this petition, it is estimated that the company will:
➢ Retain fifty (50) permanent full-time jobs representing a total annual payroll of
$3,640,000 and create, at least, twenty (20) new full-time jobs with an estimated
total annual payroll of $873,600.
ABATEMENT QUALIFICATION
L A review of the tax abatements previously granted, finds that the petitioner has not
been granted any tax abatements.
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 located in the River West Development Area.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner
meets the qualifications for the five (5) year real property under section 2-82.1,
Industrial development in Urban Enterprise Zone and Redevelopment Blighted
Areas, and section 2-84.2, Tangible Personal Property Tax Abatement.
Filed in Clerk's
Office
FAR 62021
DA
CI.n,CW M. JONES
URIC, SOUTH 1), IN
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BILL NO.21-14
RESOLUTION NO.
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN
THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS
4755 Ameritech Drive, South Bend IN
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE
(5) YEAR REAL PROPERTY TAX ABATEMENT FOR
Delta Management Company, LLC
WHEREAS, a petition for real property tax abatement has been filed with the City Clerk
for consideration by the Common Council of the City of South Bend, Indiana requesting that the
area located at 4755 Ameritech Drive, South Bend IN 46628, which is more particularly described
as:
Lot Numbered 7 as shown on the recorded Plat of U.S. 31 Industrial Park — Section
One, St. Joseph County, State of Indiana.
Lot Numbered 8 as shown on the recorded Plat of U.S. 31 Industrial Park Section
Two, St. Joseph County, State of Indiana
and which has Key Numbers 71-03-18-400-010.000-009 and 71-03-18-400-011.000-009 be
designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1-12.1
et seq., and South Bend Municipal Code Sections 2-76 et seq., and;
WHEREAS, petitioner has agreed to and has accepted responsibility to report any changes
in the final legal description and to report the final, appropriate Key Number to the Department of
Community Investment and to the Office of the City Clerk; and
WHEREAS, the Department of Community Investment has concluded an investigation and
prepared a report with information sufficient for the Common Council to determine that the area
qualifies as an Economic Revitalization Area under Indiana Code § 6-1.1-12.1, et seq., and South
Bend Municipal Code Sections 2-76, et seq., and has further prepared maps and plats showing the
boundaries and such other information regarding the area in question as required by law; and
WHEREAS, the Community Investment Committee of the Common Council has reviewed
said report and recommended to the Common Council that the area qualifies as an Economic
Revitalization Area.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds that the Petition for Real Property
Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the
requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement.
SECTION II. The Common Council hereby determines and finds the following:
A. That the description of the proposed redevelopment or rehabilitation meets the
applicable standards for such development;
B. That the estimate of the value of the redevelopment or rehabilitation is reasonable
for projects of this nature;
C. That the estimate of the number of individuals who will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result from the
proposed described redevelopment or rehabilitation;
D. That the estimate of the annual salaries of those individuals who will be employed
or whose employment will be retained by the Petitioner can be reasonably expected to result from
the proposed redevelopment or rehabilitation;
E. That the other benefits about which information was requested are benefits that can
be reasonably expected to result from the proposed described redevelopment or rehabilitation; and
F. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requirements of Indiana Code § 6-1.1-12.1-3.
SECTION III. The Common Council hereby determines and finds that the proposed described
redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the
Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement
Consideration and the Memorandum of Agreement between the Petitioner and the City of South
Bend, and that the Statement of Benefits form completed by the petitioner, said form being
prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under
Indiana Code § 6-1.1-12.1-3.
SECTION IV. The Common Council hereby accepts the report and recommendation of the
Community Investment Committee that the area herein described be designated as an Economic
Revitalization Area and hereby adopts a Resolution designating this area as an Economic
Revitalization Area for purposes of real property tax abatement.
SECTION V. The designation as an Economic Revitalization Area shall be limited to three (3)
calendar years from the date of the adoption of this Resolution by the Common Council.
SECTION VI. The Common Council hereby determines that the property owner is qualified for
and is granted property tax deduction for a period of five (5) years as shown by the schedule
outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17.
Year 1 - 100%
Year 2 - 100%
Year 3 - 95%
Year 4 - 90%
Year 5 - 85%
SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of
this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana
Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public
hearing before the Common Council on the proposed confirming of said declaration.
SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Karen White, Council President
South Bend Common Council
/ � -
i,t, �_,
C .of South Bend
S'
x
Petition fir incentives`''
PCNNan must In a $25[lplingfee Payable to the cfty Cleric's ajjlc& orvr,lln2 Ala the Clty'S w
7r trfi
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http;%/snpthbendln.gov/goverrrrncni/tonrent/tax-abatement before prvtessing can 6e'canapfe 4
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Ar.
Gpnerai;lnFarmatiori'-.' ...' :',::2k.
.:.` Rrgject'iVaine:::-'r 4755 Ameritech Drive Pro e;f�utn6f YE:.;
Aso N
Legal n. . as regl;Sexed with 5^notary oriiila . ;Delta
Management Company LLC ("Delta")
Business structure
UC
eompany Urebsitc.
Delta has no website; KW Custom Controls LLC ("KWCC", the tenant) site Is www,kwcustomcontrols,com
i r= �As?;":. Ere-.7.7; .:i s
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•�n
Proposed project addre$5_-v -:'•'% =
4755 Ameritech Drive
Parent[em namB:'•;: •'!;
' • ::
NA
Cltr, State, ZiP
South Bend, IN 46628
Le al.ov:ne !>ai::>:;.
Delta Managment Company LLC
51W aiaeagc or acreage
9 01
IS the real estate Own Ed 0r° :
owned
5 uarete@tY ;,.t of fa V;
q• '-
currently 50,000; addition will Increase to e0,000
if leased uy�t]iom:
property IS leased t0 KWCC
... .. .. .
Pnrpat'Y:�ontact;lnFarmat�o •.,..�,t,.; r�;� •�..:,�;•' -
Prlmi.r mmp;my on to name
Laura Pfeil Elliott
Title
Manager and Member
Address.ofCompany contan.
4755 Ameritech Drive
Ph;°qe.>`S`
;•,,.:,.:,
574-274-8051
clty,State, xfu .South
Bend, IN 46628
lmatt
elliottsb4@sbcglobal,net
Seriiiar;0fficial In arrriaY'a "
ter.
Company senior on;tlal narnc • .:. ; :=:.....�
William Harlan
'itl° ".
Manager and Director
Address of company can to (If diffgrentfrom :
4755 Ameritech Drive
Ptionc ;`.,
! ::;::
312-343-3920
city, Siate, 211)
South Bend, IN 46628
Emall
wharlan@kwcustomcontrols.com
Hired businrss consultant agent name[ :' '.:
Peter Agostino, Atty
COMWtip nt:releaie{YINf`
Address.::
131 S. Taylor Street
Coal,ecortornlGdavelajimeis'tpartrie .:
;:;:;,;_<,::'
a.. rove y-.:
cjry,:state,zip :. South Bend, IN 46601
Email agostino@aaklaw.com
..
ProjectOyervlt►v': r;,: y,;i•:, ;.:.,
�'r• '�:r
B v l e t d es criptio n of yo ur
Company, proJeot,andwhy lliL'-
Subject to approval of property tax abatement, Delta Management Company
opemt :,�, ,-:.'=-:
LLC plans to expand the building at 4755 Ameritech Drive with a $1.8 million,
gcessamyfar ec
etnnpmicg�roowth-.:i.- .� .....
30,000 SF addition in order to accommodate growth of tenant KW Custom
Controls, LLC ("KWCC"), with job growth of 20 full time jobs within 3 years.
In September 2018, an investor group led by the Pfeil family re -started a
previously bankrupt business now known as KWCC. Restart of the business
by the investor group led to the re-employment of previously displaced
workers following the July 2018 bankruptcy filing of Koontz -Wagner Custom
Controls Holdings LLC. KWCC continues to employ approximately 50
people, and has plans for additional growth following completion of the
building expansion. Please see Attachment 1 for additional information.
Ccrt,fied-tech nolopParkappropriate ,-.. ;:.
NA
Is th a prpje ct l n a.Tax:increm a ntal � n an dng; ••
NO
r ar ? If i'
Certifythat eha eulldli g Fernriihas nothces"'
>, urger' ,-46rj n - .'j ql ;,
N,_AQ:,, ..rh�, ',91 � IVA
iftKltilsi,petition•for.per4tinarpl'apertyta,S.adatenient,has A
'r
thee ul n tbemIns6INa
�i'�irpr$�ry�C!o . ' �+p. •,fr; :•." 4ti.p u7�°!. n?' ,"� 'yk' �. i5'� b.'�' • •t•L'';;?.. +'���.«`.'.e'7f.'A: .::, r.,^�1 CL:..,;.. • 4y.
.: �J •f. .-y ,�,ri73 i.Y,�jc: �.1C::. �_P.`'1���:.; .}i ; 1Yr, zqr .�: .1. • q�'. 4r+.0 - .0 5�•- .tci�i"';.. -4.
,9?::t'::'.':5,r.t:: �..�'•:.'ti •i.. ��::.::,:, t' •„L!�.i;'i?-,: .:i:,'y::r
Publicinrre3ti c}yre'cieeOiOt
elan'y.SOghrRdingbeeRjn:'YYFiaiU:tf{6ajue;ofany.egriipittetit6'el[8
r` -
P. urrhasedtisr•:
•[v at.3stttm:iiS4c-'tan :e uS meri befn
h r 4 :. v.:q.: o.: t; a
site af.Prt� Main slots rs : ; F
.,�1..
s - 'received �' ;'.�� }:�
. 'Indiana'�or<afire:project?,:;i;::�:':.'::., F
,
� iiit:h'sediruFri:ou dl,s etc l0 E' ra FCL%
NA
NA
Minimal or no new equipment being purchased
NA
cle
1
7
7 .
":7
7,7777' 7,777
Dulldlng Lama Payments
Building Puircha5,
Now SullUnt; CmIrtr"
New Machinery & Equip pi afl t
Spec] n I TCi of In gl fi oto o1i itg
NCSV Furnitwre/Hxtq2s. •
New Co M p U t er? fT H and vi4 re
hiew Software
on -site R R I I q fra FT ructu re
Cln-sitar Tiber lofta zF ucture
022
2023
$ 1,800,000.00
IT
.4
$
Full �,Tne.p rriian.eHorain4 •rda 'Year
Calendar Year JOLIN FOtalned To ta heme A •cum U I at I ve zI 04 net NEW full tim 0
-mr.4gewjo Total trailhing Total q to be
aeL w1o, PP Fmanen t jo lbs created at pro] ei:t
Wage
:H
b. ieSlts Prbosiuses, of opent-fiture - .Irained -not
fringe or
cumulative net new jobs not cumulative
.. bonuses
(,Umulative
2021 50 35
0
2022 10
$21/hr 0
5
$21/hr 0
2024 5
$21/hr 0
7025
2028
2027
ZR8
2029.
2030
203,
2032
ern b fa
yiees In Og
time
Laborers
$16 to $18
0
$20 to $25
0
Managerial
NA
0
Adm1nisiratIvo
NA
0
Who wi 11 b a I h e in divid u a I response h I a I o r coordina tin WiTh
Michelle Steele (KWCC's HR
Workd on nc r.1 ti. n.? person)
Doe5yoArcoinpanyhjie.al.EEChirifgpiIc?
IYes
you a�.EEQ.enpiQ Vqr?
:IYes
Plea., part:time: minqritya6d/dr.:feffiale.(.,iplbyeesfo-r'each of
Please describe your commItarentio
irLcl US Iion:V fj Rio i in&,OGU(
diver� 5 1w and
yp
.
outreach and recruitment efforts for the last
Year:
2020
2019
2018
three years as. well as currentpaficies.
Full Time
PanT=V:
Full Time
-PartTime'
:Full Time.
Part TIM a
Black
4
3
We reached out to Work
One regularly, as well as
other services for
referrals, and we do in
fact hire minorities and
Hisppnic
4
3
0
0
4
1
3
1
3
1
will continue to do so.
other
0
0
W..'tor al or ers e
for re Ves
19
ij
Public benefit Item,
.Information is:re.quired an both the c:onstr*tion:companies aril the
companies whiclqiwill provide rnaterials Ou rthased. for. this project,
Ptease coinglete.the table below with.the. approprlfate.lnformation. If
you qualify for thepqints; please enter the full Ornount of availaWe
points.
Qualify
(Yes or No)
Earned Points
7 �
--
Available Points
Construction ReIate'd -(CaMractors):
A.
E rn ploy: Lo cafl Companies (7 5%)..
No
0
20
8.
P u rch a s e M a i eiial s from local Companies (7 5'
Yes
20
20
C.
Require Em ploye es vs. I nd epe rid e nt Contractors
Yes
19
19
D
Require P revial I ITig Wage:[, 0 ayl 5 Satan}
Yes
22
22
E.
Req ui re 1H e a.t h Be riet it s:
Yes
22
22
F.
Requi re0e q " ftn benefits
no
0
18
G.
NJ a I n I a fn-AfFo r mative Action Plait
no
0
20
IISub-tot
. of construction Related:
83
141
-2-
Wage & Benefit kefatedjownerL-.
A.
Pay.Target Wajeleve`ls Yes
33
33
B.
Provide Health MniNts::
yes
34
34
C..
Provide Pension serieflts
No
0
29
D,
Provide T rainvig
No
0
28
Pravlde CM0 Care
No
0
15
F.
t A PrQviiJe ra n s p o rt a sslstdftq
No
0
14
C.
Provide E m P I eye r. A55 Ist ed: Hiowln g p rcgra m
No
0
9
Sub -total age &'Be n ef! t R ela ted.
67
162
Workforce Related:
A.
Cfg6t6 N1JOb�
4W
Yes
42
42
ReOIR. Uszlng.jobs
yes
41
41
C.
Maintain Afflrrria Cive Act! o n. PI a h:
No
0
35
0.
0
34
Subtotal Workforce Related:
83
152
uppf)r t. a M umcipal'Ncillty:
Support
ort a SB Municipal Facillty. (do;ia,.lc;ns to th
Zoe, conservatory, . .. , . mijse�ijn. ... , etc . : ES; S., A-- h1
84 84
Nameof Facility
Isub-total w1unidpal Filcility-.
84
84
Sub-Wa *L9rwAboVe::
317
539
The undle irsip eda'wner(s) of.real property, l6cated within the -City of South Bend, herby petition the: Common.Council of;the City.
of South Bend for a real at. ixor#.qrs a n a irty tax abatement con s I d e iratt on. and pursuant rs u a n t to 1. C,. 6- ill 71 L 1-1, gtj eg.
propi�and
S WOW,
4f tlon state the above.
o Municipal Cede Sec. 2-76 aLLeg, for peti
I � WWn, ater J. Agostino, Attorney for Fetltloner 1.01 00-1411. 13/18/2021
'ri7r ti '• }� L`�Jt �y'.,a•✓ . e+.i `
:..,sFQr Staff `'se..Ohy:Bejaw:iis; ; :r
What Isthaturrua? '.
Realproperty:..
1,557,300
%81 Property
s1.
Whatlsth0 projected ej ssed value?
Rcal'Proper{y:.
3,357,000
a}Property:
V!hatlsthe.tax key nyl`rrloa�,tarth[5pra]eC7.
71-03-18-400-010.000-009 71-03-18-400-011.000-009
WhatIsthesixd191tNA] C5tode7
332311
Pie Else.. attach.a GDOE le tnayand street VIEV).Of the focation.. :
Attached
Please Ilst the ainouatof real and personal property takes
Pal d for the last five yorswhen a IS[ahle,
Reef Pro;i".Taaes:
Pe onel FrvAe?4! T3Mer a} i ; ;:; a ';4• r
2i1Z4iPa ' ?fill vear O ie
148,307
2i) 9/2020 Year.Twa
0
20I8120 rear.Three
28,988
20 7/2018 Year.Pou '''4
58,97
206/MIT YearFlve "
63,528
Please fill out fhe following Pub11c SerleG[ Sunmary Information and,add to.total from.above.
Y or N '.
Points
Points
Publlc Benefit.ltemi .;: '
.. . .
',%rj.dr'P •f,
i eY ..r �„�1e. [O B •E BtBd� �.. .;_",...1•-„ .I :;
5
q, •
Redevelop a 51te that 65 Special Needs
49
B.'
develop Based on LOCaI:Unlyerslty Res arch
35
C,'..
Achieve a:PlhySlca!Element of a ?fan
36
Sub -tots I. P ro] ect Re] a to d :
120
." 6
.Super
Size Prolect,'jpoint values are cumidativO:
25
25
10056 to..i9.99.;
B:
2GOS5 to 299Yo'
°
68
C.:
3ON to 399Ya -'.:
65
G. < ..
4Q'-% aRd. Over
52
Sqb -tot aI uper51te Projects:
93
210
7.;.
Py for, M un l L I Da f1 nfra 5t rU Ctu re:
q.
Pay for `Jvv.s121ng or tlpgrading
14
B. Ray fcr 25.50% of Extension most
C. Pay for 51-75% of ExtensionC6
q, Pay:far.76 10uY oiExtenslon Cast.
Sub-totallnfrastructure Related:
26
39
S2
131
Total from-Appl Ica 6t5ectiori:.
539
Total from'5taff 5ectlon:-'.':
93
461
Total Public Benefit Points; '
41 R
1000
STATEMENT OF BENEFITS
REAL ESTATE IMPROVEMENTS
State Form 61767 (R6/1a-14)
Filed in Clerk's Office
APR 08 2021
DAWN M.'JONES
CITY CLERK, SOUTH BEND, IN
Prescribed by the Department of Local Government Finance
This statement. is being completed for real property that qualifies under the following Indiana Code (check one box):
�Q Redevelopment or rehabElitafion of real estate improvements (IC 13-1.1-12.1.4
I , I Residentially distressed area (IC &l.1-12,1-4.1)
20— PAY 20,-_
FORM SB4 f Real Property
PRIVACY NOTICE
Any Informatian concamlag the teat
of the pmper�y and speci[Ic salaries
pold to Individual ampFoyoe4 by trio
pprop•gY owner Is confi0anaal per
lC 6 1.1.121-5.1
INSTRUCTIONS;.
1, This statemenf must be submitted to the body designating Iho Economic Revitalization Area prior to the public hearing if the designating body requires
inrofmation from the applicant in making its decision about whelher to desIgnale an Economic Revitaldratlonxrea. Otherwise, Ibis slatfernenf must be
submitted to tha designating body BEFORE the redevelopmend or rahabillfaflan of real property for which the person wishes to claim a deduction.
2. The sfefemenf ofbeneft fame must be submAtedto tha designating body end the area designatodan economicrevitalirafion area before the Initiation of
the redevelopment or rehabilitation for wklch the person desires to claim a deduction.
3. To obtain a deduction, a Form 322114E must be fried wish the County Auditor before? May 10 In the year in which the addition to assessed valuation Is
made or not later than thlrfy (3T days aRer the assessment notica is r la4ad to the proporfy owner if it was malted after April 10, A properly owner who
failed to frla a deduction application within the prescribed deadline may Re an application between March 1 and May 10 of a subsequent year.
4. A property owner wino !lies for the deduction must provide the CountyAucNor and designating body with a Form CF 1lReal Property. The Form CF-11Reel
Property should be attached (o the Form 3221RE when the deduction is first claimed and then updated annually for each year The deduction is applicable.
IC Cr i.1.12.1-5, leb)
5. For a Form S9-1114eat property that is approved aRer June 30, 2013, The designralirlg bocy is required fo establish an abatement schedule for each
deduction allowed. For a Form S&ilReal Property fhal Is approved prior to July 1, 2013, the abatement schedule approved by the dasignaling body
remains in effricl. IC 6-1.1.12. r-17
SECTION•- •
Name of taxpayer
Delta Management Company LLC
Address of taxpayer (number end s6ecf, dN:sfole, endZfPcWa)
4755 Ameritech Drive, South Bend, IN 46627
Name or ccntact rwn I Teleprwnenamher
L 4a- kc�
Gj t � a
E-mall address
1wharlan&mustorricontrolsvi
` M —1" ( ) 312-343-3920
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of dexgnating body
Resolution number
Common Council of the City of South Bend
Location of property
County
04OF lazing district number
4:755 Ameritech Drive
I St. Jospeh
009 - South Bend German
t)escipbon of real prope ry imprmcmanLs, redevelopmtnt, orrehabllitoWn (use adWdonalsheetsifmcesmry)
Es'drnnted stag de le (monlh, day, year)
1511/2021
30,000 SF addition to existing structure
I EsllmatedoomploGon date (month, any, year)
11 /112021
SECTION 3 ESTIrA1AIE OF EMPLOYEES AND SALARIES AS RESULT OF ••• • PROJECT
ti.unvrir numuor am "a Num[er resainad Saingus Number addlWnel $atones
50 50 1 10 In near 1
SECTION 4 ESTIMATED TOTAL COST AND
VALUE OF PROPOSED PROJECT
REAL, ESTATE IMPROVEMENTS
COST ASSESSED VALUE
currenivalues
NA; was purchased in 2001 ai 1 417 200 + 140,000 land
Plus estimated values ofproposed project
1,800,000 1,800 000
Less values of any propertybeln replaced
0 0
Net estimated values Won com letlon.of ra act
I 3,357 000 3,217 200 + 140.000 land
SECTION• . r • OTHER
BENEFITS PROMISED:TAXPAYER
Estimated solid waste converted (pounds)
Estimated hazardous waste converted (pounds)
Other beneflls
•TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signalu f autho lead rcprca ve
oil [a signed /month, doy, year)
G:;•� -
3/24/2
q Hama of euthorlwd repro live
Tide
Laura Pfeil Elliott
Member and Manager, Delta Property Managemefil
Page 1 of 2
FOR OF DIESIONA71NG :Or
We find that the applicant meets the general standards In the resolution adopted or to be adopted by this body, Said resolution, passed or to be passed
under IC 6-1.1-121, provides for the following limitations:
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
B. The type of deduction that Is allowed In the designated area Is limited to:
1. Redevelopment or rehabllltadon of real estate Improvements ❑ Yes ❑ No
2. Residentially distressed areas ❑ Yes ❑ No
C, The amount of the deduction applicable Is limited to $
D. Other limitations or conditions (specify)
E. Number of years allowed: j] Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 [] Year 5 (" see below)
0 Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
F. For a statement of benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12,1-179
❑ 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.
We have also reviewed the Information contained In the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefit Is sufficient to Justify the deduction described above,
Approved (signature and llfle of authorized member ofdeslgnating body)
Telephone number
Date signed (month, day, year)
Printed name of authorized member of designating body
Name of designating body
Attested by (signature and Mle ofaffester)
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.
A. For residentially distressed areas where the Form SBA/Real Property was approved prior to July 1, 2013, the deductions established In IC
6-1.1-12,1-4,1 remain In effect. The deduction period may not exceed rive (5) years. For a Form SB-ilReai Property that Is approved after June 30,
2013, the designating body Is required to establish an abatement schedule foreach deduction allowed. The deduction period may not exceed ten
(10) years. (See IC 6-1,1-12,1-17 below,)
B. For the redevelopment or rehabilitation of real properly where the Form SB-1/Real Property was.approved prior Io July 1, 2013, the abatement
schedule approved by the designating body remains In effect. For a Form S13-1lReai Property that Is approved after June 30, 2013, the designating
body Is required to establish an abatement schedule for each deduction allowed, (See IC 6-1.1-12.1-17 below.)
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 revltallzatlon area and that �ecelves 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 slate minlmum wage,
(4) The Infrastructure requirements for the taxpayer's Investment.
(b) This subsection. applies to a statement of benefits approved after June 30, 2013, 6 designating body shall establish an abatement schedule
for each deduction allowed under thla chapter. An abatement schedule must specify the percentage amount of the deduction for 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
Attachment 1
In support of Petition for Incentives filed by Delta Management
Company, LLC to allow for facility expansion for tenant
KW Custom Controls LLC
Summary
KW Custom Controls LLC (KWCC or tenant) and Delta Management Company LLC (Delta) are
seeking a tax abatement coincident with the 30,000 s.f, expansion of the existing facility located at
4755 Ameritech Drive in South Bend. Projected cost of the expansion is approximately $1.8
million. Cost savings resulting from the tax abatement will facilitate the continued employment
of approximately 50 people at KWCC, and growth in that employment base by approximately 20
over the first three years following the expansion.
KWCC is a manufacturer of electrical packaged control houses and custom control buildings with
deep, century -long roots in South Bend. KWCC and Delta are both controlled by the Pfeil family
which has a similarly long -running history in South Bend and has supported the community
generously. The Pfeil's most recent support of the South Bend community includes the following:
(1) $500,000 gift in support of the expansion of the downtown South Bend library and (2) $250,000
committed to LaCasa code Almstead. Mr. Pfeil is a founder and continual supporter of The Music
Village in South Bend, in addition to support he has provided to Bethel College, IUSB, and many
other local concerns. Mr. Pfeil is a member of the County Council of St. Joseph County.
Background
The original Koontz Wagner Electric business was formed in the 1920's and grew to become a
multi -division electrical products and services business. One of the divisions, started in the
1950's, manufactured electrical control panels, electrical shelters, and packaged control houses
("PCH") and over decades became a significant supplier in the industry.
The Pfeil family's involvement with the business dates back to 1926. Over the course of several
decades, this involvement led to ownership of the business until 2008 when the Pfeil family sold
the business to High Street Capital. Following their purchase, High Street broke up and
separately sold off Koontz Wagner Electric's divisions, including the sale of the PCH business to
Global Power in 2012. Global Power is a publicly traded business based in Texas at the time and
now known as Williams Industrial Services Group, LLC. Global Power subsequently completed
other acquisitions and added locations in TX and ID. However, following a downturn in the
industry and broader challenges in its business, Global Power put the PCH business (known as
Koontz -Wagner Custom Control Holdings, LLC) into chapter 7 bankruptcy on July 11, 2018.
As a result of the prior business involvement and ownership, the bankrupt business was well
known to Richard Pfeil and Bill Harlan and Steve Vivian (through their prior involvement and
ownership of another of the divisions). This investor group (Pfeil family and Harlan/Vivian) also
had strong relationships with Don Eichstadt (former VP & GM of the PCH division) and Frank
Stec (former Director of Sales of the PCH division). Following investigation and due diligence by
Pfeil/Harlan/Vivian, along with Eichstadt and Stec who agreed to re -join the business, in
4755 Ameritech Drive
South Bend, IN 46628
Attachment 1
In support of Petition for Incentives filed by Delta Management
Company, LLC to allow for facility expansion for tenant
KW Custom Controls LLC
September 2018 the investor group (Pfeil and Harlan/Vivian) purchased the South Bend assets of
the bankrupt Koontz -Wagner Custom Control Holdings, LLC and committed to re -starting the
business under the name KW Custom Controls LLC (KWCC).
KWCC was well capitalized, and had substantial support from the Pfeil family in getting re-
started. KWCC re -hired approximately 50 people who had lost jobs following the bankruptcy
filing. Immediately following the re -start, KWCC worked to complete a large purchase order,
while also securing ISO and quality certifications, rationalizing facility expenses (KWCC had
assumed leases on three South Bend locations occupied by the bankrupt business), and working
to build a backlog of business by winning back customers left disappointed by the bankruptcy.
KWCC successfully completed the large purchase order, and continued by winning back several
key customers including Siemens, General Electric, and others. Facilities have been rationalized
from three down to a single facility located at 4755 Ameritech Drive. This facility is owned by
members of the Pfeil family who have provided a favorable lease to KWCC which was helpful in
containing costs while re -starting the business.
KWCC manages hundreds of projects annually, ranging from sub $100K to over $20 million in
scope. Customers include Siemens, General Electric, and other large companies in the power
generation, oil & gas pipeline, power utility, materials handling, telecom, and alternative energy
industries. Project locations are worldwide. KWCC is now poised for growth and in need of
additional manufacturing space. Following completion of the planned addition, KWCC
anticipates hiring 20 additional employees over the first three years in the new space.
4755 Ameritech Drive
South Bend, IN 46628
4/5/2021
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