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Home My WebLink AboutBill No. 22-48 Confirming the Adoption of a Declaratory Resolution Steel Warehouse Tax AbatementSeptember 6, 2022 CITY OF SOUTH BEND COMMUNITY INVESTMENT Council Member Rachel Tomas Morgan , Chairperson Community Investment Committee South Bend Common Counc il 4th Floor, County City Building South Bend , IN 46601 OCT 1 9 ?022 L ____ --· RE: Personal Property Tax Abatement Pe ti t ion for Steel Warehouse Company LLC Dear Council Member Tomas Morgan : ...J -'") IN Please find the enclosed information pertain ing to a personal property tax abatement petition submitted by Steel Warehouse Company LLC to purchase new equipment to be used in a facility at 2722 W Tucker Drive, South Bend , IN 46619. This petition package includes : ► Department of Communi t y Investment's summary report ► Petition ► Statement of Benefits forms (Personal Property) ► Supporting information The report contains the Department's findings relative to the above petition . The petitioner plans to purchase and install machinery at the estimated cost of $3 ,697 ,000. The investment will expand the company's cold reducing mill operations and enable it to hire ten to twelve additional workers . A representative from Steel Warehouse Company LLC will be available to meet with the Committee on Monday , September 12 , 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. Caleb Bauer Acting Executive Director Department of Commun ity Investment EXC EL LE NCE ACCOUNTABI LI TY INNOVATION INC LUS ION EMPOWERMEN T 1400S Coun ty-City Buil d ing 227 \/1/. Jeffer son Blvd. Sou t h Bend , Indiana 46601 p 574.235 .93 71 www sout hbendi n.gov BILL NO. 22-48 RESOLUTION NO. 4982-22 1 OCT 1 9 2022 I DAVVN M. JONES CITY CLERK, SOUTH BEN D, IN A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 2722 W. Tucker Drive, South Bend, IN 46619 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Steel Warehouse Company 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 2722 W. Tucker Drive, South Bend, IN 46619, 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 3-90% Year 4-85% Year 5-80% 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. Attest: Dawn M. Jones, City Clerk Office of the City Clerk Sharon L. McBride, Council President South Bend Common Council Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend , Indiana on the ___ day of ---------' 2021, at ___ o'clock . m. Dawn M. Jones , City Clerk Office of the City Clerk Approved and signed by me on the ___ day of ______ , 2021, at o'clock .m . ---, OCT 1 9 2022 , L DP V\' \~ JON'::.S CITY CU::::t-ir<, Si_lU I 1-1 REN D, IN James Mueller, Mayor City of South Bend , Indiana TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director of Business Development SUBJ ECT: PERSONAL PROPERTY TAX ABATEM ENT PETITION FOR: Steel Warehouse Company LLC DATE: September 7, 2022 On July 29 , 2022 , a petition from Steel Warehouse Company LLC was received and subsequentl y filed with the City Clerk for a personal property tax abatement consideration _ for property located at 2722 W. Tu cker Drive , South Bend, IN 46619. 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 z oning 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 ► Steel Warehouse Company LLC is a family-owned steel service center which began in the City of South Bend in 1947. The company has grown from its single location in South Bend to multiple locations across the United States and the globe. Steel Warehouse is proud to call South Bend its home and headquarters. ► The main South Bend facility on W . Tucker Drive is roughly 170 ,000 SF and staffed with 513 individuals. In addition to its facility on Tucker Drive, the company has facilities at 1217 S. Walnut Street and 1400 Riverside Drive. ► The company is proposing an investment of approximately $3.7 million for the purchase of new industrial cold reducing mill equipment. As part of the project the company will also be constructing a new shipping bay that will cover 3 ,600 square feet with an investment of $216 ,000 . ► 5-year personal property tax abatement with estimated taxes of $45 , 141 for the five years of the tax abatement period. EMPLOYMENT IMPACT Per this petition , it is estimated that the company will: ► Retain five hundred and thirteen (513) jobs with a total annual payroll of $18 ,865 ,889.). ► Create ten to twelve ( I 0-12) new jobs with a minimum total annual payroll of $367,756 . ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted , finds that the petitioner has been granted eight (8) tax abatements. a. 10-Y Real Property -Confirming Resolution #1964-92 , August 1992 b. 10-Y Real Property Abatement -Confirming Resolution #2167-94, August 1994 c. 5-Y Personal Property Abatement -Confirming Resolution #3793-07, September 2007. d. 5-Y Personal Property Abatement -Confirming Resolution #3792-07 , September 2007. e. 5-Y Personal Property Abatement -Confirming Resolution #3 791-07, September 2007 . f . 5-Y Personal Property Abatement -Confirming Resolution #3995-09, October 2009. g . 5-Y Personal Property Abatement -Confirming Resolution #4054-10 , October 2010. h. 5-Y Personal Property Abatement -Confirming Resolution #4055-10 , October 2010 . 2 . A review of the South Bend Redevelopment designation areas finds that the property is located in the River West Development Area. 3. A review of the Tax Abatement Ordinance No . 9394-03 finds that the petitioner meets the qualifications for five (5) year personal tax abatements 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. SYEAR Steel Warehouse Company LLC South Bend Portage Township Personal Property Tax Abatement Schedule* Tax Key Number Current Assessed Value: 0 Estimated Project Cost: 3,697,000 100% 95% --Year1 Year 2 Current Assessed Value: AV & Tax Current Assessed Value 100% 0 0 0 Base Assessed Value 1,478,800 2,218,200 Less Abatement Deduction (1,478,800) (2,107,290) Net Assessed Value 0 0 110,910 Property Taxes: Assume constant tax rate of 5.3909% 5.3909% 5.3909% Gross Tax (tax rate x net assessed value) 0 0 5,979 Less Circuit Breaker Credit 0 0 0 Net Tax 0 0 5,979 Circuit Breaker Cap Circuit Breaker 3.0000% 0 44,364 66,546 Debt Service 0.0000% 0 0 0 Circuit Breaker Cap 0 44,364 66,546 New Combined Existing Project Existing & New Year Taxes Taxes Year1 0 44,364 Year2 0 66,546 Year3 0 61,001 Year4 0 49,910 Year5 0 41,037 Totals 0 262,857 *This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determin~d by the actual assessed valuation and the then current tax rates. Taxes 44,364 66,546 61,001 49,910 41,037 262,857 7-Sep-22 --90% 85% 80% ---Year3 Year4 Year5 0 0 0 2,033,350 1,663,650 1,367,890 (1,830,015) (1,414,103) (1,094,312) 203,335 249,548 273,578 5.3909% 5.3909% 5.3909% 10,961 13,453 14,748 0 0 0 10,961 13,453 14,748 61,001 49,910 41,037 0 0 0 61,001 49,910 41,037 Net Tax Tax Abated Paid 44,364 0 60,567 5,979 50,039 10,961 36,457 13,453 26,289 14,748 217,715 45,141 '[J f' -'\ i..) • -.),-• .. 'I' ·,( 1 7077 I I i City of South Bend i •✓·' ' 'J'-'"1 , Petition for Incentives Petition must Include a $250 filing fee payable to the City Clerk 's Office or online •io the City 's website at ht:tp://southbendln.go./go•ernment/content/tax-obatement before processing con be complete General Information Project Name I ProJed Number Leaal name as registered with seaeta~ of '"'°P Steel Warehouse Company LLC Business structure Indian a lim ited liability c ompa n y Company website www .st ee lwareho use .com Proposed Project Information Proposed project address 272 2 W . Tucker Drive Oty, State, Zip Sou th Bend , IN 46 619 Site acreage or acreage required Square feel of f•clllt\' Primary Contad lnfomgtlon Pr lmarycomp•nycontoctn•me Gerald F . Lerma n Address or company coni.ct 272 2 w. T uck er Drive City, Sratt, Zip South Bend , IN 46619 Senior Offldal Information Company sentor official 11ame Gera ld F. Ler man Address or company contact nf d ifferent from City, State, Zip COflsultant Information/Agent Hired buslne!s cons1.1lt.ant/agent name An drew G . He lfr ich . Esq . Address 201 S . Main Street, Suite 400 Oty, St ate, Zip Project Overview Brief desalptlon of your companv, project, and why the property Is necess ary for econom ic growth South B e nd , IN 4660 1 See attached letter. Certlned Tecl1nology Park appropriate N ot a p pl ica ble Parent company name Steel Ware hou se Comp any LLC Lesa I owner A & F Realty LL C Is the real estate ow ned or L eased II leued by whom Ste el Ware ho use Company LLC Titlf V ice Pres iden t, Gene ral Counse l Phone 574-236-5139 Email ge rry l@steelwarehou se .ne t lltle Vice Pres ident, Ge neral Co unsel Phon• Email Consultant release f"f/N) Local ec;o nomlc devetopment p;artners •ooroval (Y/NI Email and rew.h elfri c h@ btl aw .co m { i---I I ·1J,.., --1 )nrr : I !\ \) I . . u / I : ·--.----. ~_,_J 0 A •li.,i ,vi ,;( ,;, -'.~ ~ -=::--~ -'J :-:' 3i.~1 Is the proJtct In a Tax Incremental Flnancln1 ln1c, ----"' If en •-•~1ni, Yes , River West Development Area C•rtlfy that the Building Permit hes not been l, • ..,.a IV/NI Yes , no perm it. l~::':..,, ....... ., ... itscrea1e,11,y If this Is a petition for penonal property ta• abatement, has !No t he ~ul oment bel!:n lnstalle-d Investment Details Public lnfrastTucture needs (Off-Has any 504 fund ing been What Is the value of any equipment being purchased fn site of proJKt In doll;us) rece111ed? lndlana for the proJect7 None N/A Wh•t Is th• wlue of any equlpm,nt being purchased from out of stale for the proJect? $3 ,697 ,000 ,,s.: i I I I i I I . ..J !jl!!II fll!ll:0 1nw11ments ·= C~1ndlrYur 2022 2023 2024 20U 2021 21m 202I l029 Land Acquisition BufldI n1 L,ue P,1ymen<s Bulldl nc Pt1rd'lilse Cons New Su lldln1 Constru~lon &Jsd n 1 Building Impr ovements S.:: JU ~ll'J .. t New M1 c'1 lne ry & Equ._,ment $3,697 ,000 Spedill T00Un1/Rttooll n1 Ntw Furniture/Fixtures New Comi:,ute r/IT H;udwue Nw wSoftw,re Or,~JI~ R;a ll lnfr utruc,ur e 0rt-dtt Fiber lnfranructure TOTAL so .oo 13.913,000 so.co S0.00 SO .DO S0.00 S 0 .00 so.co Full-Tlme Permanerw lndlan.llesldent Podllons bV talendllr Var Cillendar lHr Totalhowty Cumu lative I of ne t~ full time Hourly m!!f!: w11t, w/o Tot1I tr1\nln1 Tota l " ta be wic e w/o perm;anent Job.1 anted ilt pro/ect beneftu or bonusH, ot e.pendtture -trained -not fr ln1e o r cumulat:hie net new /ot,s not rumuh1dve bonuses cu mulative 5 13 $18,8f,5 ,889 .Q. N/A N/A 12 2023 Throu gh 7/29122 20Z4 2025 202 6 2021 20Z8 2029 2030 20 31 20!2 20!3 Full tll'fte P ■r,ttme laboters $19 88/hr Technl QI $2 8 86 /~r $37 50/hr AdmlnlstriltlWe $27 60/h r Dawn Jorda n Are ~ou an no employer1 No Please 11st Ille number 1lme Ind pan time lllinarlty 1ft or '-le lfflPI0¥91S iacl'I af Pluse de scrtllt your commU mtnt to 1f1e last dlrff ynn: dl¥tutty and /nclu>lon by dttalllnnour ~----------------;;..;;....;.;;.;.;....,.;-;....:..;;...;..;_;_ _____ ..,. _______ --loutrt1d'l 1nd re<CU:t ment efforts fo, tt'lw lut 2021 2020 20 19 thrM Yf.iH$ u well is curr en t pokies, Full Tim• PHtTime FuU Ti me PartTlmt Fu /lTlme PiM'ITlm e 67 49 82 Hlt,panlc 58 51 58 As ian 2 0 0 0 0 0 Female 4 9 40 43 Ottte r 0 0 0 Complete below for Real or Personal Property Tax Abatement only. Please siln for all requested incentives. Public Benefit Item: Information Is required on both the construction companies and tile companies whlct, will provide materials purchased for this project. Qual ify Please complete the table below with the appropriate Information. If Earned Pa int< Availiiible PoiftlS you qua li fy for the points, please enter the full amount of availab le (Ve s or No) points. 1 tonriru ~!lgn RgLl!•!I C£!1!!!m~J ; A. Employ Lo cal Co mpanie s (75%) l\o 20 B. Purch ase Materia ls from Loc al Companies (75%) Yes ]. 0 20 C Requi re Em ployees vs . In dep ende nt Co n tr actors No 19 D. Requ i re Prevailing Wage (Oav,s Bac on) Ne 22 E. Requ ire Health Be ne fits Yes [_ L.. u F. Requ ire Pension Ben ef its Yes ;~ 18 G. Ma inta in Affi rmat ive Action Pl an No 20 lsub-tot•I Connruttlon Rel•ted : £,, C 141 2 .le!!!u, §,odi! B,iurtJ.Q~rl; A. Pay Targe t Wag e Leve ls tll<5? l3 8 . Prov ide ~ealt h Benef its Yes s"' 34 C Prov ide Pens ion Benefits Yes 7 't 19 0 . Provide Training Yes L.~ 28 E. Prov ide Chi ld Care No 15 F Provide Transpo rt ation Assistance No 14 G. Prov 'de Emp loyer Assisted Ho us ing program Ne 9 Sub •toul Wage & Benefit Related : qf 162 3 Wo rkforce ~e lated : A, Crea te New Jo bs. Yes u) ., B. Retam histing Jobs Y es i..l I 4] C. Maimain Aff irmative Action Pl an No 35 D, Provide Tarae ted Hir ing Prefe rence No .14 Sub -1ota l Workforce Re laled: ~J ]52 4 a!!eeon • Ml!!!lcl eat Fa cll lrt: A. Su p port a 59 Municip a l Facility (donatiO M to th e No zoo , conserva tory , mu se um, et c.) 84 Name of Facili ty ! Sub•total M unlclpal Facility : NIA ' 84 Sub-total from Above : 7~1/ 539 The undersig ned owner(s) of real property, located within the City of South Bend, hertiy petition the Common Council of the Qty of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C., 6·1 .1-ll.1·1, et seq .. and South Bend Municipal Code Sec. 2-76 et seq .. for this petition state the above. Submitted By: For Staff Use Only lelaw n,1, Une What Is the curre nt ~nened v11 ue1 IReal Property: I IH,600 PffSOnll PropttTy. 18,157,980 Wh~t 15 th·e p,oJectfd HMHed value? l""I Property: I 340 ,600 P,rson1I Pr~tv: 21 ,854,980 'Ntl1t Is the ti• ltty number for mts proJact1 0 l 8-8075-Zll39 Wllatl,~ ,11 dlf!t NA ICS code7 I H35l9 Pfene 1n1ch I Gqle map tnd itrNtW'Wof ttie focatkJn . PJ111e nst the am<Nnt of rnl and personal p,~ taHS Ru• Property Taae-s : Pan:o~I PtOJM,tv Tues: pa id for the #alt fll,tf, yurt whl!fl appUablt. YearOnr 4,304.02 604,422 .80 Ye;arTwo 3,807.00 474,139 .50 Year Three 4,430.98 502 ,353.02 YHr Four 4,788.82 51 1,680.18 Year five 1,946.70 500,97 0.56 Please nu oul th• following Public 8eneni Summ•rv mform•don and add to total from •bove . jVorNl Polnb Points Public Benefit Item: Pn:il«! llt~led! 5 A . Redeve lop• SIie t hat h•s Speclill Need> No 49 8. De ve lo p Ba sed on local Unive rsity Re.sear ch No 35 C. Ach ieve a Physical Element of a Plan No 36 !sub-total Project Related: 120 6 ~.l!tr 1l..rf Prokru lgolnt v•l ues •rt gimul13lvej : A. 100" lo 199" ~o 25 8 . 200" lo 299" :--io 68 C. 300"!0 399" Ko 65 D. 400l' and Over No 5 2 I sub-total Supor Sire Projects : 210 7 Piy for Muni(ie!;I tnfrutructure: A. Pay for Qv.,sb lns o r Up&f3dlns No 14 8 . Pay for 26·50" of Exton,ion Cost No 26 C. Pay for S1 -7S" of Extension Cost :-Ju 39 0 . Pay for 76-100" of ExteNion Cost No 52 !sub •rot•I Infrastructure Rolattd: 131 Toul from Applicant Soctlon: 23 4 S39 Tot•I f,om Staff SHtlon: 0 46 1 Tol•I Public Bonoflt Points: 234 1000 STATEMENT OF BENEFITS PERSONAL PROPERTY St al e Form 51764 (RS / 1-21 ) (· ... Prescribed by the Department of Loc al Gove rn ment Fi na nce INSTRUCTIONS. /,il:3 1 1 70?? I ·-----_ __J . · 'i:: .X)NE[j ,(;. ,, · H 8ENO. lt•i . --·--~ .. ___ __ FORM SB -1 / PP PRIVACY NOTICE Any informat ion concern ing th e co st of tho properly and specific salar ies pai d lo indiV1duaf employees by the propMy owner ls conn den tial per IC 6-1 1-12 1-5 1 1 Th is statement must be submitted to the body design ating the Economic Revitalization Area prior to the public hearing if the designating bo dy req uires information from the applicant in making its decision about whether to des ign a te an Economic Revitalization Area . Otherwise th is statement must be submitted to th e design ating body B EFORE a person inst alls the new manufacturing equipment and/or research and development equipment, and/or logistical distribution equipment and/or info rm ation technology equipment for which the person wishes to claim a deduction . 2 The statement of benefits form must be submitted to the design aling body an d 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 retum on a certified deduction schedule (Form 103-ERA) wi th the township assessor of the township where the property is situated or with the county assessor if there is no townsh ip assessor for the township. The 103-ERA mus t be filed between January 1 and May 15 of the assessment year in which new manufacturing equipment andlorresear ch and development equipment and/or logistical distribution eq uipment and/or information technology equipment is installe d and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension mus/ file the form between January 1 and the extended due date of tha t year. 4. Property owners whose Statement of Benefits was approved, mus/ submit Form CF-1/PP annually to show compliance with the Statemenl of Benefits (IC 6-1 1-12 1-5.6) 5. For a Form SB -1/PP tha t is approved after Jun e 30, 2013, th e designating body is req uired to establish an abatement schedule for each deduction allowed. For a Form SB-1/PP th at is approved prior to July 1, 2013, the aba tement schedule approved by the designating bo dy rem ain s in effect. (I C 6-1 . 1-12 1-17) .. -... . ...• Nam e of 1axpaye r I Name of contact pe rso n Stee l Ware ho use Company LLC G e ral d F . Le rm an Address of taxpaye r (number and s/n,e/, city, slate, and ZIP code} Te lephone ntJ mber 2722 W. Tucke r Drive , So ut h Bend , IN 46 6 19 ( 574 ) 236 -5 100 • h,-••••l•I .... .,, . -. ....... Name of designa1i ng bod y Resolution number (s) City of South Bend Com mon Counci l Loc ati on of pr ope rty I County OLGF taxi ng dis trict num ber 2 722 W. Tu c ke r Drive , So ut h Bend , IN 46619 St Joseph 026 (So ut h Ben d/Portage ) Desc ri ption of m anufacturing equipment and/or research and development equip ment EST IMAT ED and/or log istical distributi on equipment and/or information te chnology equip ment. (Use additional sheets if necessary ) START DATE CO MP LETION DATE See attachment. Manufacturing Equipment 0 8/20 22 0 7/20 23 R & D Equi p ment Log ist Dist Equ ipme nt IT Equipment • ······•---..... ··-· . . , __ .... ... Current Number I Sa la ries Nu mbe r Re ta ine d I Salaries Num ber Additional I Salaries 2 1 1,3 7 6 ,0 15 21 1 ,376 ,0 15 10 to 12 686 ,3 95 , •. • ...... 11:W~='IAl!J'e ... -.;;.;ii••• "' NOTE : Purs ua nt to IC 6-1 .1-1 2.1-5 .1 (d) (2) the MANUFACTURING R & D EQUIPMENT LO GIST 01ST IT EQUIPMENT EQUI PMENT EQUI PMENT COST of the property is confident ial. COST ASSESSED COST ASSESSED COST ASSESSE D COST AS SESSED VA LUE VALUE VALUE VALU E Cu rrent va lues 3 ,133 ,300 939 ,990 P lus estim ated values of proposed p ro ject 3 ,69 7 ,000 1,109 ,100 Less v alues of any property bei ng repla ce d 58 ,000 17 .400 Net estimated v alues upon completion of project 6 ,772 ,300 2,031 ,690 • . ... , . . • : . - Estimated s oli d waste conv erted (pounds) 0 Esti mated hazardo u s w aste con verted (po unds) 0 Other ben efits : SECTION I; TAXP,WER CERTIFICATION I he reby certify th at the re p resenta tions in this state ment are true . Si gnature of auth oriz ed represe ntative &.-..t ✓ F. /.,.,... __ Prin te d name of authorized represe ntative G erald F . Lerm an I Date si gned (month. day, year) ,r ,.f y "?.'I , Z<>l.l. I Ti lle Vi ce Presiden t, Gene ral Counsel Page 1 of 2 FOR USE OF THE DESIGNATING BODY I I , , ~ .... _ We have reviewed our prior actions relating to the designation of this econ omic re vi talization area and find th at Ille appllcani"::eis the ';~,I $1:alfd adopted in the resolut ion previously approved by this body. Sai d resolution , passed under IC 6-1 1-12 1-2 5 , p ro vides 1fo r the following ·limi aU~ lie' authorizedunderlC 6-1 .1-12 .1-2. 1-}/li'' _ ----- -I.J I 1 A . The designated area has been limited to a period of time not to exceed ______ calend a r years • (s~ bf/lo w} T date this aes,g oati~' expi e s -,/ r, L < !J. I is ______________ NOTE This ques/lon addresses whether /he resolu/lon contam ~)p l~ OQ a.te.{o r the des,g ed area -...~ f,;:./:?1,-J'r ;;.:~/ B The type of deduction that is allowed in the desig nated area is limited to : 1 . Installation of new manufacturing equip ment; 2 . Install ation of new research and development equipment: 3 . Installation of new logistical d istribution equipment. 4 Install ation of new information technolog y equipment ; O Yes 0 Yes 0 Ye s 0 Yes O No Q No O No O No -.__ 5,-V._;I•\,';::;:-._, ·-,JV.,.· vc::s O Enh anced A batemen per,'i ~ 1 1 1-1 8 Check box if an enhanced abarem , 'M.t approved for on e or more of these ty C The amount of deduction a pplicable to new m anufacturing equipment is li m ited 10 $ ________ cost w ith an assessed value of $ _________ (One or bo th lines may be filled out to establish a limit, if desired.} D . The a mo unt of deduction applicable to new researcll and development equ ipment is lim ited to$ ________ cost with an assessed val ue of $ _________ . (On e or both line s may be fill ed out to establish a limit. if desired.) E The amount of dedu ction applicable to new logistical d istribution eq uipme nt is limited t o$ ________ co s t with an assessed value of $ _________ . (One or both lines may be filted out to establish a limit. if desired.) F. The am ount of deduction applicable to new information tec hnology e quip ment is limited to $ ________ cost w ith an assessed va lue of $ _________ ., (One or both tine s may be filled out to establish a limit, if desired } G O ther lim itations or cond itions /sp ecify) _________________________________ _ H T he deduction fo r new manufacturin g equipme nt and/or new research and develo p ment equi pmen t and/o r new log istical d istribution equipment a nd /or new in forma tion technology equipme nt installed and fi rst claimed elig ible fo r deduction is allo w ed for: 0 Ye ar 1 0 Ye ar6 0 Year 2 0 Year ? 0 Yea r 3 0 Years 0 Year4 0 Year 9 0 Years 0 Ye ar 10 0 Enhanced A ba te ment per IC 6-1. 1-12.1-18 Number of yea rs appro ved : ____ _ (Enter one to twenty (1-20) yea rs ; m ay no t exceed twenty (20) years.) I. F or a Statement of Be nefits ap proved after June 30 , 2013 , did th is designating body ad opt an abatem ent schedule per IC 6-1 .1-12 1-17? 0 Yes O N o If yes , attach a copy of the abatement schedule to this form . If no. the designating body is required to establish an aba tement schedule before the deduction can be d etermined A lso we have reviewed the information co nta ined in the sta tement of be n efits and find tha t the e st imates an d expec tati o ns are re ason able a n d have determined that t h e totali ty of benefits is suffi cient to justify th e deduction described above Approve d by: (s ignature and title of authorized member of designating body) Te lephone number Date si gned (month, day_ year) Pri nl ed name of aulhorized member of designating body Name of designat ing body Attesled by : (signature and ti tl e of a/lester) Pri nted name of atteste r • If the designating body li m its the time period durin g which an area 1s an econ o m ic revitalization area . tha t li mitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less th a n 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 re located to a revitaliza tion a rea and th at receive s a ded uction under se c tion 4 or 4 .5 of this cllapter an abatement schedule based on the following fa ctors : (1) The total amount of the taxpayer's investment in real and personal pro perty. (2) The number of new full-time equivalent j obs created . (3) The average wage of the new employees compared to the state minimum wage (4) The infrastructure requirements for th e ta xpayer 's investment. (b) This subsection applies to a statement of benefits approved after June 30 . 2013, A designating body shall establish an abateme nt schedule fo r each deduction allowed under this chapter. A n abate m ent sched ule must specify th e percenta g e amount of the deduction fo r each year of the deduction. Except as p rovided in IC 6-1 .1-12 .1-18 , an abatement schedule may not exceed ten (1 0) years . (c) An abatement schedule approved for a particular taxpa yer be fore July 1, 201 3 , rema ins in effe ct u ntil the abatement schedule expires under the te rms o f the resolu tion approvi ng th e taxpa y er's statement of benefits. Page 2 of 2 July 6, 2022 Memorandum to :Files Subject :Cold Reducing Mill Enhancement Project Steel Warehouse Company LLC has operated a cold reducing mill in its South Bend facility for many years . In order to remain competitive in the markets that the mill serves, Steel Warehouse believes it is necessary to make enhancements to the mill , as well as to some subsidiary equipment, as set forth below: 1. Mill Entry Guides -this will include an entry guide box , to assist threading the steel strip into the mill and to pro vi de back tension on the payoff pass . It will also include new mounting arrangements for the X-ray Gauge, along with support structure and miscellaneous hardware ; entry and support structure. 2 . Mill Stand Equipment -this will include the addition of two top backup roll wipers to assist in strip cleaning , utilizing new spreader bar pods to support the new wiper assemblies. 3 . Mill Exit Equipment -this consists of new Coolant Dam , Exit Guide Box , Edge Bead Removal system , along with other as sociated equipment and exit end support structure. It will include addition of a las er type gauge for enhanced thickness control and a deflector roll wiper. 4 . Hydraulic Equipment -this will include a hydraulic valve stand for all new hydraulic functions. 5. Pneumatic Equipment -this will include valves for all pneumatically controlled functions . 6. Updated Electrical Equipment -this will include additional motors , limit switches , sensors and wiring injunction boxes for all the operation of the mill. 7. Spare Part s for all of the above. 8 . Foundation for the mill to replace the existing foundation . 9 . Enhancements to the exis ting slitting line next to the cold reducing mill. I 0 . Installation of wall partitions, to control the environment for operation of the mill from exposure to the various elements that enter the facility while the main doors are open. I -------F,1r-i . -. :.a 1n C'! ,·-----,_ :~~-s Offi c8 / i ·' ' ------) I /-l[_j[;• 1 1 ? ; 11 . Three high charge annealing intercovers with co . •at~d -~~r.i;f l.an~ rt'l/sed d d . h d h d • -I I L. ~-'[, I\ J • ------/ an 1s e ea . •·--::'. t:.Pr· .,, . Uf\/[/'§'"-' -. ·-·-._ 't)7~LffJ ::: 12 . Addition of a new shipping bay, to the existing facility in which th~-co RNo, IN reducing mill is located, estimated to be approximately 3,600 square feet , for the purpose of facilitating the loading and unloading of steel products for the mill. It is expected that the improvements to the mill and the slitting line will take up to a year to complete at a total cost of $3 ,913 ,000. This includes installation of the wall partitions in the facility . The cost for the erection of the new shipping bay is expected to be approximately $216,000. The Company believes that improvement in the cold reduction mill will provide it with a competitive advantage in the markets for cold reduced strip steel. To accommodate the additional usage expected for the mill , the Company expects to add eight to ten additional employees over a three year period once the project is complete. G. Lerman GL:ld D LJ D D c=J 0 ' D li D ,J 1 . I t x:,-_. \ ~ ~ \\ \ ' .~ .... l~ 1 1 .-C ~ I I.'-. I a, I I 1-., I I t3 ! ~ I I C) MEMORANDUM OF AGREEMENT (PERSONAL PROPER TY TAX ABATEMEN T) OCT 1 9 2022 DA\"1N 1.~ JONE ', CITY ' ; ·:D. IN This Memorandum of Agreement (Agreement) da ted as ----~ 2022 , serves as confirmation of a commitment by Steel Warehouse Company LLC (the "Applicant"), pending an October 24 , 2022 , public hearing, to comply with the project de scription, job creation, and retention (and a ssociated wage rates and salaries) figures contained in it s petition, Statement of Benefits, and attachments and this Agreement (Commitments). l. C omm itm ents of C it y and A ppl icant. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Comm on Council (the "SBCC "), the City of South Bend, Indiana (the "City") commits to provide a five (5) year personal property tax abatement for the Applicant, based on the Applicant 's commitment set forth in its Application. The Applicant commits to a capital expenditure of $3 ,69 7,00 0 associated w ith the purchase ofnew industrial cold reducing mill equipment for Steel Warehouse Company LLC located at 2722 W . Tucker Driv e, South Bend, IN 46619. This p ersonal property project will result in the creation of at least ten (10) permanent full-time jobs wi th a total estimated annual payroll of at least $367,756 . 2 . A ppli ca nt 's Co mpli a nce w it h C ity and Sta te Laws . During the term of the abatement, the Applicant shall comply with Chapter 2 , Article 6 of the South Bend Muni cipal Code entitled "Tax Abatement Procedures" and all governing provisions of the Indiana Code. During the term of this abatement, the City may annually request information from the Applicant concerning the nature of the Project, the approved capital expenditure of the Project, the number of full-time permanent positions newly created b y the Project, and the averag e wage rates and salaries (excluding benefits & overtime) associated w ith the positions, and the Applicant shall provide the City w ith adequate written evidence thereof within 15 days of such request (the "Annual Survey"). The City shall utilize thi s information and the informatio n required to be filed by the Applicant in the CF-1 Compliance with the Statement of Benefits form to verify that the Applicant has complied with the commitments contained in the Commitments at all times after the Commitment Date and during the duration of the abatement. The Applicant further agrees to provide the City with such additional information requested by the City related to the information provided in the Annual Survey and the CF-1 form within a rea sonable time following any such additional request. 3. Substan ti a l C omp li ance and Ri ghts of Termina ti on . The City , by and through the SBCC, reserves the right to terminate the Economic Revitalizati on Area designation and associated property tax abatement deductions if it determines that the Applicant has not made reasonable efforts to substantially comply with all the Commitments, and the Applicant's failure to substantially comply with the Commitments w as not due to factors beyond its reasonable control. As used in this Agreement, "substantial compliance" shall mean the Appli cant's compliance with the following : (a) making personal property expenditures of no less than Three Million Six Hundred Ninety Seven Thousand dollars ($3 ,697 ,000) for new industrial cold reducing mill equipment; (b) this personal property project will create at least ten (I 0) permanent full-time jobs with a total estimated annual payroll of $367,7 56 . 4. Fac to r Bevo nd Control. As u sed in this Agreement, factors beyond the control of the Applicant shall only include factors not reasonably foreseeable at the time of designation application and submission of Statement of Benefits which are not caused by any act or omission of the Applicant and which materially and adversely affect the ability of the Applicant to substantially comply with this Agreement. 5. Repayment of T ax Abatement Sa ving s . If at any time during the term of this Agreement the Applicant shall : (i) be delinquent or in default with respect to any tax payment in St. Joseph County, Indiana ; or (ii) cease operations at the facility for which the tax abatement was granted; or (iii) announce the cessation of operations at such facility, then the City may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require Applicant to repay all of the tax abatement savings received through the date of such termination. 6. otic e/Hearing of Tennination . In the event that the City determines that the Economic Revitalization Area designation and associated tax abatement deductions should be terminated or that all or a portion of the tax abatement savings should be repaid, it will give the Applicant notice of such determination , including a written statement calculating the amount due from the Applicant, and will provide the Applicant with an opportunity to meet with the City 's designated representatives to show cause why the abatement should not be terminated and/or the tax savings repaid . Such notice shall state the names of the person with whom the Applicant may meet and will provide that the Applicant shall have thirty days from the date of such notice to arrange such meeting and to provide its evidence concerning why the abatement termination and/or tax savings repayment should not occur. If, after giving such notice and receiving such evidence, if any, the City determines that the abatement termination and/or the tax repayment action is proper, the Applicant shall be provided with written notice and a hearing before the SBCC before any final action shall be taken terminating the abatement and/or requiring repayment of tax benefits. The Applicant shall be entitled to appeal that determination to a St. Joseph County Superior or Circuit Court . 7 . Repaym ent. In the event the City requires repayment of the tax abatement savings as provided hereunder, it shall provide Applicant with a written statement calculating the amount due (Statement), and Applicant shall make such repayment to the City within 30 days of the date of the Statement. If the Applicant does not make timely repayment, the City shall be entitled to all reasonable costs and attorneys ' fees incurred in the enforcement and collection of the tax abatement savings required to be repaid hereunder. 8 . Modi ficati on/Entire A gre ement. This Agreement and the schedules attached hereto contain the entire understanding between the City and the Applicant with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings, inducements, and conditions, expressed or implied, oral or written , except as herein contained. This Agreement may not be modified or amended other than by an agreement in writing signed by the City and the Applicant. The Applicant understands that any and all filings required to be made or actions required to be taken to initiate or maintain the abatement are solely the responsibility of the Applicant. 2 OCT ·1 9 ?fl:~-} I crwc ~;,, _ 9 . Wai ve rs . Neither the failure nor any delay on the part of the City to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy , power or privilege with respect to any occurrence or be construed as a waiver of such right , remedy, power or privilege with respect to any other occurrence . No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver . 10 . Governing Law of Indi ana. This Agreement and all questions relating to its validity , interpretation, performance, and enforcement shall be governed by the laws and decisions of the courts of the State of Indiana. 11 . Applicant's Consent to Jurisdiction. The Applicant hereby irrevocably consents to the jurisdiction of the Courts of the State of Indiana and of the St. Joseph County Circuit or Superior Court in connection with any action or proceeding arising out of or relating to this Agreement or any documents or instrument delivered with respect to any of the obligations hereunder, and any action related to this Agreement shall be brought in such County and in such Court. 12 . o ti ces. All notices , requests , demands , and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been received when delivered by hand or by facsimile (with confirmation by registered or certified mail) or on the third business day following the mailing , b y registered or certified mail, postage prepaid, return receipt requested , thereof, addressed as set forth below : If to Applicant: Steel Warehouse Company LLC 2722 W. Tucker Drive South Bend, IN 46619 Attn : Gerald F . Lerman [itle: Vice President and General Counsel If to the City: City of South Bend, Indiana 227 West Jefferson Blvd . Suite 1400S South Bend, Indiana 46601 Attn: Caleb Bauer, Department of Community Investment 3 J -0 , IN 13. Ass i gnment and Transfer Prohi bited . This Agreement shall be binding upon and inure to the benefit of the City and the Applicant and their successors and assigns, except that no party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party hereto, in which consent shall not be unreasonably withheld. 14. Valid and Binding Agreem ent. Thi s Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon , and all of which shall together constitute one and the same instrument. By executing this Agreement, each person so executing affirms that he has been duly authorized to execute this Agreement on behalf of such party and that this Agreement constitutes a valid and binding obligation of the party . 15. Severability . The provisions of this Agreement and of each section or other subdivision herein are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part unless this Agreement is rendered totally unenforceable thereby . 16 . No Per onal Liability. N o official, director, officer, employee, or agent of the City shall be charged personally by the Applicant, its employees or agents with any liabilities or expenses of defense or be held personally liable to the Applicant under any term or provision of this Agreement or because of the execution by such party of this Agreement or because of any default by such party hereunder. [Remainder of page intentionally blank.] 4 OCT ·, 9 2n ~? L . -·----_J I )() ,Lu l:...:._1 _ ' : · .. ~-~ __ BE ND, IN IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written . "Applicant" Steel Warehouse Company LLC By: f$ '-"-.1.../ T-. «~ _.. Gerald F . Lerman Vice President and General Counsel [Approved as to Legal Adequacy and Form this day of __ ___,. 2022 Counsel, South Bend Common Council Counsel for Applicant 5 'City " K:;ity of South Bend, Indiana IBy: !By : !By : By: --------------- Karen White President, South Bend Common Council Rachel Tomas Morgan Chairperson, Community Investment Committee ~ Caleb Bauer Department of Community Investment James Mueller Mayor OCT g ?r," I J [ CITYC I' .I N ---·-- RESOLUTION No. 4972-22 Passed by the Common Counci l of the City of South Bend , ln dia n=a _______ _ _______ S_e~pt_e_m_b_e_r_1_2_, __ 20 _ 22 Attest: -1/-~~-aW/D----~-~-__,~,.,-.---A~ · /\-) _______ City Clerk Da\fil M . Jones ~ Att~, ~Ii,;_ /IIA¼fE , President of Common Council Presented by me to the Mayor of the City or South Bend, Indiana _________ _ September 12 , _______________ 20_ 22 ,../,~..;;.:;..Ou;;;J,.;:;.._;....:_;;;....__~_..;....__· __ lfl+p,.· '--'--A.::;__ n_,., ) _______________ City Clerk Dawn M. Jones ~ Approved and s igned by me __ s_ .. +-n_t_~_~_if __ l-'1"'-l,-----=20 l, .!::_ ,-J ---------,~<--J.~-==--------Mayor BILL NO. 22-39 RESOLUTION NO. 4976-22 I c,-:1·, 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 2722 W. Tucker Drive, South Bend, IN 46619 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Steel Warehouse Company LLC OCT WHEREAS , a petition for personal property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly kn own as 2722 W. Tucker Drive, South Bend , IN 466 19, and which is more partic ularly described as follows : Business Personal Property and which has Key Numbers to be assigned, be designated as an Economic Revitalization Area under the provisio ns o f In d iana Cod e 6-1.1-12.1 ~ gg., and South Bend Municipal Code Sections 2-76 ~ ~-. 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 Ec onom ic Rev italization Area under Ind iana Code 6-1.1-12.1 , l<! ~-, and South Bend Municipal Code Sections 2-76 , !:! fil.9,, and.has further prepared maps and plats show ing the boundaries and such other informati on regarding the area in question as required by law; and WHEREAS , the Community Inve stment Committee o f the Common Council has reviewed said report and recomm ended to the Common Council that the area qual ifies 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 pursuant to Indian a Co d e 6- 1.1 -12.1-4.5 l<! ~-, that: a. T he estim ate of the co s t o f the new industrial and manufacturing equipment is rea sonable fo r equipment o f that type; b. That the estimate of the number o f individuals that will be employed or whose emp loyment will be retained by the Petitioner can reasonably be expected to resul t from the proposed installati on of new industrial and manufacturing equipment; c. That the estimate of the annual salaries o f those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new industrial and manufacturing equipment; d . Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new industrial and manufacturing equipment; and e . The to tality of benefi ts is sufficient to j ustify the deduction requested . SECTION II. The Common Counci l hereby determines and finds that the proposed new industrial and manufact uring equipment can be reasonabl y expected to yield the benefits identified in the Statemen t o f Benefits a s set forth in Sections I through 3 o f the Petition for Personal Property Tax J D,IN Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being pre sc ribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6-1.1-1 2.1 -4 .5. SECTION III . The Common Council hereby accepts the report and recommendation of the Department of Community Inve stment, and the Community Investment Comm ittee's favorab le recommendation, that the area herein described be de signated as an Economic Revitalization Area fo r purposes of personal property tax abatement and hereby makes such a designation. SECTION IV . The Common Council determ ines that such designation is for personal property tax abatement only and shall be lim ited to three (3) calendar years from the date of the adoption of thi s Resolution by the Common Council. SECTION V. The Common Council herc;by determines that the property owner is quali fied for and is granted property tax deduction for a period of (5) five years as shown below pursuant to Indiana Code 6-1.1-12 .1-17 . Year l-l00% Year2-95% Year 3-90% Year 4-85 % Year 5-80% SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Reso lution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5-3 -1, said publication provid ing not ice of the publ ic hearing before the Common Council on the proposed confirming of said declaration . SECTION VII . This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor . Dawn M . Jones, City Clerk' Office of the City Clerk South Bend Common Council Presented by me, the un dersigned Clerk o f th.e City o f So uth Ben d , to the Mayor of the City of South Bend, Indiana on the ___!L__ day o f ~ , 2022 , at _/j__ o'clock _. m . A!t'taµ /2 D,~ M. Jo,~. City CJ,~ Office of the City Clerk Approved and signed by me on the~ day of Srp1-.~v-f·m . , 2022 , at l_ o 'clock City of South Bend, Indiana "-.fr·""' ,, OCT ·1 9 20''~ 2 L_ ___ ___, DAWN M. JON :) CITY CLE:1"1K. ~G I I ,-i BEN D, IN