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HomeMy WebLinkAboutBill No. 22-22 Resolution Confirming Intersection Dylan Dr. & Adams Rd. Tax Abatement for GLC Portage Prairie V LLC � ih Clerk r CITY OF SOUTHBE D eFNo COMMUNITY INVESTMENT Caleb Bauer, Deputy Executive Director May 18, 2022 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: GLC Portage Prairie V LLC Dear Council Member Tomas Morgan: Please find the attached information pertaining to a real property tax abatement petition submitted by GLC Portage Prairie V LLC to build a new speculative warehouse building at the intersection of Dylan Drive and Adams Road,South Bend, IN,46628. GLC Portage Prairie V LLC is a subsidiary of Great Lakes Capital. This petition package includes: Department of Community Investment's summary report Petition Statement of Benefits forms(Real property) Supporting information The report contains the Department's findings relative to the above petition. The petitioner proposes to invest approximately$15,318,200 in new construction. A representative from GLC Portage Prairie V LLC will be available to meet with the Committee on Monday, May 23, 2022. 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 574-235-5898. Since ly, Caleb Bauer Acting Executive Director EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 14005 County-City Building 227 W.Jefferson Blvd. South Bend.Indiana 46601 p 574.235.9371 www.southbendin.gov 5 Office o i BILL NO. 22-22 MAY i 8 2022 —AV, ___ D /iv °,�. JONES RESOLUTION NO. 4957-22 CITY CLERK, SOUTH SEND, IN A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS Intersection Dylan Drive and Adams Road, South Bend IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SEVEN (7) YEAR REAL PROPERTY TAX ABATEMENT FOR GLC Portage Prairie V LLC WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as Dylan Drive, South Bend IN 46628, and which is more particularly described as follows: Parcel ID: 025-1002-0013 01 Parcel Number: 71-03-08-326-002.000-009 Legal Description:Lot 3 Portage Prairie Business Park 21122 NP#20801012212020 and which has Key Number 025-1002-001301 be designated as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to three(3) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for up to a period of seven (7) years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. Year 1 - 100% Year 2 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6- 75% Year 7- 70% 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. Sharon McBride, President South Bend Common Council TAX ABA TEMENT REPOR T" Mqy r TO: South Bend Common Council rYc�Fq�titi,`/ �o�� FROM: Mark Bemenderfer, Manager of Business Development UOv tiBF NO r N SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: GLC Portage Prairie V LLC DATE: May 18,2022 On Wednesday, May 11, 2022, a petition from GLC Portage Prairie V LLC was received and subsequently filed with the City Clerk for real property tax abatements consideration for property located at the intersection of Dylan Drive and Adams Road, South Bend, IN I 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 ➢ GLC Portage Prairie V LLC proposes to invest $15.3m into a new warehouse building in the Ameriplex Industrial Complex where the company owns 30 acres. ➢ South Bend tenants currently have limited options for move in ready, modern, 50,000 SF+ facilities with 32' clear ceilings. The new 296,000 SF speculative warehouse building is considered by a few tenants with solid interest. ➢ The company has a proven track record of getting projects leased within 12 months of the construction start date. ➢ Current property taxes for 2021 pay 2022 is$1,565. EMPLOYMENT IMPACT Per this petition, it is estimated that the company will: ➢ Create between fifty(50)to two hundred(200) indirect full-time jobs representing a total annual payroll between$2,033,200-$8,132,800. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been granted any tax abatements. 2. The Zoning Administration has reviewed the petition and finds the property to be property zoned for the proposed project and no building permit has been issued. i 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 seven(7)year real property tax abatements under section 2-82.1, Industrial development in Urban Enterprise Zone and Redevelopment Blighted Areas. i� Cie�� I S once C�F9�S�✓ 1?0?? o�,yaps Np �N 7 YEAR 13-May-22 GLC Portage Prairie V LLC South Bend German Township South Bend Portage Township Real Property Tax Abatement Schedule' Tax Key Number Multiple Current Assessed Value 0 Estimated Project Cost 15,318,200 Current Without 100% 95% 90% 85% 80% 75% 70% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Assessed Value: AV&Tax Abatement Current Assessed Value 100% 0 0 0 0 0 0 0 0 0 Base Assessed Value 80% 12,254,560 12,254.560 12,254,560 12,254,560 12,254,560 12,254,560 12,254,560 12,254,560 Less Abatement Deduction 0 (12,254,560) (11.641,832) (11,029,104) (10,416,376) (9,803,648) (9,190,920) (8,578,192) Net Assessed Value 0 12,254,560 0 612,728 1,225,456 1,838,184 2.450,912 3,063,640 3,676,368 Property Taxes: Assume constant tax rate of 5.3510% 5.3510% 5.3510% 5.3510% 5.3510% 5.3510% 5.3510% 5.3510% 5.3510% Gross Tax(tax rate x net assessed value) 0 655,747 0 32,787 65,575 98,362 131,149 163,937 196,724 Less Circuit Breaker Credit 0 (288,111) 0 0 0 0 0 0 0 Net Tax 0 367,637 0 32,787 65,575 98,362 131,149 163,937 196,724 Circuit Breaker Cap Circuit Breaker 3.0000% 0 367,637 367,637 367,637 367,637 367,637 367,637 367,637 367,637 Debt Service 0.0000% 0 0 0 0 0 0 0 0 0 Circuit Braker Cap 0 367,637 367,637 367,637 367,637 367,637 367,637 367,637 367,637 New Combined Net Existing Project Existing&New Tax Tax Year Taxes Taxes Taxes Abated Paid 1 0 367,637 367,637 367,637 0 2 0 367,637 367,637 334,849 32,787 3 0 367,637 367,637 302,062 65,575 4 0 367.637 367,637 269,275 98,362 5 0 367.637 367,637 236.487 131,149 6 0 367.637 367,637 203,700 163,937 7 0 367.637 367,637 170,913 196,724 Totals 0 2.573,458 2,573,458 1,884.923 688 535 *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 co Q C-2' �C) u i filed in Clerk's Office � City of South Bend PSAY 1 R 2022 rI�,oF w� Petition for Incentives„ DAwN M 16&;Es CLERK, SOU 5' Petition must include a$150 filing fee payable to the City Clerk's Office or onrne-1�1a'C/refity'�wel te.�H BED, I http://Southbendin.govlgovernment/content/tax-abatement before processing can be complete General Information Project Name GLC Portage Prairie V Project Number Legal name as registered with Secretary of GLC Portage Prairie V LLC t Business structure Company website greatlakescapital.com Proposed Project Information Proposed project address Dylan Drive Parent company name Great Lakes Capital City,State,Zip South Bend, IN, 46628 Legal owner GLC Portage Prairie V, LLC Site acreage or acreage required 30 acres Is the real estate owned or Owned Square feet of facility 296,400 If leased by whom Primary Contact Information Primary company contact name Isaac Hall Title Analyst Address of company contact 130 S Main St. Suite 325 Phone 574-360-5441 City,State,Zip South Bend, IN, 46601 Email ihall @ greatlakescapital.com Senior Official Information Company senior official name Jeff Smoke Title Managing Director Address of company contact(if different from 130 S Main St. Suite 325 Phone 574-360-5441 above City,State,Zip South Bend, IN, 46601 Email jsmoke@greatlakescapital.com Consultant Information/Agent Hired business consultant/agent name Rob Nichols Consultant release(Y/N) Address 315 W Jefferson Blvd Local economic development partners approval Y N City,State,Zip South Bend, IN 46601 Email rnichols@ abonmarche.com Project Overview Brief description of your company,project,and why the Great Lakes Capital is a private equity real estate company based in property is necessary for South Bend, Indiana that has and is currently developing assets across economic growth 8 states. Our company specializes in industrial and mixed-use developments. South Bend tenants currently have limited options for move in ready, modern, 50,000 SF+ facilities with 32' clear ceilings. GLC has proven this concept with three very successful "Spec" buildings in this same park in the last 36 months. The project is a 296,000 SF speculative warehouse building (no tenant signed up but a few with solid interest) and we have a solid track record of getting projects leased within 12 months of the construction start date. Without an abatement we are less competitive then other municipalities. Certified Technology Park appropriate Is the project in a Tax Incremental Financing Yes TIF area? If so which? Certify that the Building Permit has not been no permit Number of residential units created by lissued Y N If this is a petition for personal property tax abatement,has the equipment been installed Investment Details Public Infrastructure needs(Off- Has any 504 funding been What is the value of any equipment being purchased in What is the value of any equipment being site of project in dollars) received? Indiana for the project? purchased from out of state for the project? None No N/A TBD New Protect Investments Calendar Year 2022 2023 2024 2025 2026 2027 2028 2029 Land Acquisition 900000 Building Lease Payments Building Purchase Costs New Building Construction 6709200 7709000 Existing Building Improvements New Machinery&Equipment Special Tooling/Retooling New Furniture/Fixtures New Computer/IT Hardware New Software On-site Rail Infrastructure On-site Fiber Infrastructure TOTAL $7,609,200.00 $7,709,000,00 $0.00 S 0.00 $0.00 S 0.00 S 0.001 $0.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Total hourly Cumulative#of net NEW full time Hourly average wage,w/o Total training Total#to be wage w/o permanent jobs created at project benefits or bonuses,of expenditure- trained-not fringe or cumulative net new jobs not cumulative bonuses cumulative 2022 2023 50-200+ (estimated) $18-28/hr estimate 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers Technical Managerial Administrative w io w`777-tNe'Inchvidual responsible for coordinating with WorkOne on recruiti2 ? Does your company have an EEO hiring policy? Are you an EEO employer? Please list the number of full time and part time minority and/or female employees for each of Please describe your commitment to the last three years: diversity and inclusion by detailing your outreach and recruitment efforts for the last 6 Year 2021 2020 2019 three years as well as current policies. mmFull Time Part Time Full Time Part Time Full Time Part Time Black Hispanic Asian Indian Female Other Complete below for Real or Personal Property Tax Abatement only. Please sign for all requested incentives. Public Benefit Item: Information is required on both the construction companies and the companies which will provide materials purchased for this project. Please complete the table below with the appropriate information. If es or No)(Yes or Earned Points Available Points you qualify for the points,please enter the full amount of available points. 1 Construction Related(ContractorsL A. Employ Local Companies(75%) yes 20 20 B. Purchase Materials from Local Companies(75%) yes 20 20 C. Require Employees vs.Independent Contractors yes 19 19 D. Require Prevailing Wage(Davis Bacon) no 0 22 E. Require Health Benefits yes 22 22 F. Require Pension Benefits no 0 18 G. Maintain Affirmative Action Plan yes 20 20 Sub-total Construction Related: 101 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels no 33 B. Provide Health Benefits no 34 C. Provide Pension Benefits no 29 D. Provide Training no 28 E. Provide Child Care no 15 F. Provide Transportation Assistance no 14 G. Provide Employer Assisted Housing program no 9 Sub-total Wage&Benefit Related: 0 162 3 Workforce Related: A. Create New Jobs yes 42 42 B. Retain Existing lobs n/a 41 C. Maintain Affirmative Action Plan yes 35 35 D. Provide Targeted Hiring Preference 34 Sub-total Workforce Related: 77 152 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A. zoo,conservatory,museum,etc.) Yes 84 gq Name of Facility MLK Statue+ Potawatomi Zoo Sub-total Municipal Facility: 84 84 Sub-total from Above: 262 539 The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and South Bend Municipal Code Sec.2-76 et seg.,for this petition state the above. Submitted By: Date: 1 5/11/2022 For Staff Use Only Below This Line What is the current assessed value? Real Property: Personal Property: What is the projected assessed value? Real Property: Personal Property: What is the tax key number for this project? What is the six digit NAICS code? Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. Year One Year Two Year Three Year Four Year Five Please fill out the following Public Benefit Summary Information and add to total from above. Y or N Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan 36 Sub-total Project Related: 120 6 Super Size Projects(point values are cumulative): A. 100%to 199% 25 B. 200%to 299% 68 C. 300%to 399% 65 D. 400%and Over 52 Sub-total Super Size Projects: 210 7 Pay for Municipal Infrastructure: A. Pay for Oversizing or Upgrading 14 B. Pay for 26-50%of Extension Cost 26 C. Pay for 51-75%of Extension Cost 39 D. Pay for 76-100%of Extension Cost 52 Sub-total Infrastructure Related: 131 Total from Applicant Section: 539 Total from Staff Section: 461 Total Public Benefit Points: 1000 Le al Description for GLC Porta e Prairie V Lot 3 of Portage Prairie Business Park Section 1 1 filed in Clerk's Office MAY 16 202Z STATEMENT OF BENEFITS DAWN M.JONES d; . I 20_PAY 20_ REAL ESTATE IMPROVEMENTS CITY CLERK, SOI_tTH SEND IN State Form 51767(R6/10-14) ��—� ­_-1-- FORM SB-1/Real Property Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost 0 Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) of the property and specific salaries paid to individual employees by the ❑Residentially distressed area(IC 6-1.1-12.1-4.1) property owner is confidential per INSTRUCTIONS: IC 6-1.1-12.1-5.1. 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 the redevelopment or rehabilitation of real property 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 initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction,a Form 3221RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation is made or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year. 4. A property owner who riles for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-I/Real Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable. IC 6-1.1-12.1-5.1(b) 5. For a Form SB-1/Real Property 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/Real Property 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 •- • Name of taxpayer GLC Portage Prairie V, LLC Address of taxpayer(number and street,city,state,and ZIP code) 130 S Main St. Suite 320, South Bend, IN 46601 Name of contact person Telephone number E-mail address ( ) 574-276-18971 ihall@greatlakescapital.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number City of South Bend Location of property County DLGF taxing district number St. Joseph Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year) June 1, 2022 296,400 SF warehouse building on 30 acres of land in the Ameriplex Industrial Park Estimated completion date(month,day,year) iJan. 1, 2024 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries 0 1 1 150-200+ 1$18 h r+ SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS I COST I ASSESSED VALUE I Current values 1900,000 I I Plus estimated values of proposed project 115,000,000+ I Asssessed Per Reg 17 I Less values of any property being replaced I Net estimated values upon completion of project 1 15,000,000 Asssessed Per Reg 17 SECTION • .AND OTHER BENEFITS PROMISED Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) Other benefits i SECTION • I hereby certify that the representations in this statement are true. Signature of authorized repres tative Date signed(month,day,year) ?t--4V,4.� Printed name of authorized re e e Title _1eFg= smolcc MANn4.Lrt__ Page 1 of 2 •- 30 We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed calendar years*(see below). The date this designation expires is B. The type of deduction that is allowed in the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements ❑Yes ❑No 2.Residentially distressed areas ❑Yes ❑No C. The amount of the deduction applicable is limited to$ D. Other limitations or conditions(specify) E. Number of years allowed: ❑Year 1 ❑Year 2 ❑Year 3 ❑Year 4 ❑ Year 5 (*see below) ❑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 6-1.1-12.1-17? ❑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 benefits is sufficient to justify the deduction described above. Approved(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year) Printed name of authorized member of designating body Name of designating body Attested by(signature and title 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. A. For residentially distressed areas where the Form SB-1/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 five(5)years. For a Form SB-1/Real Property that is approved after June 30, 2013,the designating body is required to establish an abatement schedule for each 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 property where the Form SB-1/Real Property was approved prior to July 1,2013,the abatement schedule approved by the designating body remains in effect.For a Form SBA/Real 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 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 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. Y � Page 2 of 2 f :a IL —odor r' w_ 00ON k Imagery©2022 IndianaMap Framework Data,Maxar Technologies,USDA/FPAC/GEO,Map data©2022 200 ft E! A&-— — — — — — — — — — "7V _ III • E� 111 e FUTURE `i FUTURE I I 315,600 SOFT 166,500 SOFT UJ • III _ � III. / v _ III PEC IV EXISTING SPEC V . • I'I 296,400 SOFT . ��� • �'�� I; '�i{;"sli t 111111111 I I I I I I W11 11 I I I I I I I I I I I Ill I I LLLI L I I I I I 11111 I I I I I I I I I I I L I ll l l l l l �"'� ' _-- .