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Home My WebLink About2023-03-13 Bill No. 23-03 DCI_ PresentationDepartment of Community Investment March 13, 2023 CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Agenda: Bill No. 23-03 Declaratory Resolution: Six-Year (6) Industrial Development Real Property Tax Abatement for Properties Located at 2652 Jaclyn Court and 3161 Youngs Court Bill No. 23-09 Confirming Resolution: Eight-Year (8) Multi-Family Real Property Tax Abatement for Property Located at 536 South Main Street Bill No. 23-10 Declaratory Resolution: Ten-Year (10) Industrial Development Real Property Tax Abatement for Property Located at 7468 Vorden Parkway CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Industrial Development Real Property Tax Abatement for 2652 Jaclyn Court & 3161 Youngs Court CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Declaratory Resolution: Bill No. 23-03 Tax Abatement for 2652 Jaclyn Court & 3161 Youngs Court The Robert Henry Corporation (RHC) has been part of the South Bend community since 1974, delivering building and utility construction services, and prides itself on providing high paying local union jobs. Industrial Development Real Property Abatement •6-year abatement •RHC seeks to relocate current operations from its facilities on South Frances Street •New property is in an industrial park •South Frances Street operations are in Howard Park neighborhood •$6.5 million private investment to build a truck maintenance facility and new offices (33,000 square feet total) CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Declaratory Resolution: Bill No. 23-03 Tax Abatement for 2652 Jaclyn Court & 3161 Youngs Court Industrial Development Real Property Abatement •6-year abatement •Current taxes: $833 •First year of abatement, estimated taxes to be paid: $1,200 •During 6-year abatement period •Estimated taxes to be paid: $580,326 •Estimated taxes abated: $1,015,732 •Estimated taxes to be paid •After 10 years: $1,644,400 ($8,330 w/o abatement) •After 15 years: $3,212,200 ($12,500 w/o abatement) •After 20 years: $4,780,000 ($16,700 w/o abatement) CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Declaratory Resolution: Bill No. 23-03 Tax Abatement for Properties Located at 2652 Jaclyn Court & 3161 Youngs Court ESTIMATED* Taxes During Abatement Period Year Abatement Current Taxes Due New Projected Tax Combined Current & New Taxes Taxes Abated Net Taxes Paid 1 100%$ 833 $ 265,177 $ 266,010 $ (264,809)$ 1,200 2 90%833 265,177 266,010 (226,601)39,408 3 80%833 265,177 266,010 (188,393)77,617 4 70%833 265,177 266,010 (150,185)115,825 5 60%833 265,177 266,010 (111,976)154,033 6 50%833 265,177 266,010 (73,768)192,242 Total:4,998 1,591,060 1,596,057 (1,015,732)580,325 * Assumes constant tax rates and no changes in assessed value. CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Multi-Family Residential Tax Abatement for 536 South Main Street CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Confirming Resolution: Bill No. 23-09 Tax Abatement for 536 South Main Street Multi-Family Residential Real Property Abatement •8-year abatement •Building has been vacant since 2021 following 2 fires •$2.065 million private investment to rehabilitate existing real property •All new mechanical, HVAC, plumbing, fire, and electrical infrastructure; new appliances •New windows and restored exterior •12 apartments; 3 units for low-to moderate-income households CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Confirming Resolution: Bill No. 23-09 Tax Abatement for 536 South Main Street Multi-Family Residential Real Property Abatement •8-year abatement •Current taxes: $5,235 •Estimated $41k over 8 years •First year of abatement, estimated taxes to be paid: $10,451 •During 8-year abatement period (estimates) •Taxes to be paid: $129,693 •Taxes abated: $213,157 •Estimated taxes to be paid •After 10 years: $ 215,000 ($52,000 w/o abatement) •After 15 years: $ 430,000($77,000 w/o abatement) •After 20 years: $ 644,000 ($102,000 w/o abatement) CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Confirming Resolution: Bill No. 23-09 Tax Abatement for Property Located at 536 South Main Street ESTIMATED* Taxes During Abatement Period Year Abatement Current Taxes Due New Projected Tax Combined Current & New Taxes Taxes Abated Net Taxes Paid 1 100%$ 5,133 $ 37,723 $ 42,856 $ (32,405)$ 10,451 2 100%5,133 37,723 42,856 (32,405)10,451 3 95%5,133 37,723 42,856 (28,565)14,291 4 95%5,133 37,723 42,856 (28,565)14,291 5 90%5,133 37,723 42,856 (24,724)18,132 6 90%5,133 37,723 42,856 (24,724)18,132 7 85%5,133 37,723 42,856 (20,884)21,972 8 85%5,133 37,723 42,856 (20,884)21,972 Total:41,064 301,786 342,850 (213,157)129,693 * Assumes constant tax rates and no changes in assessed value. CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Industrial Development Real Property Tax Abatement for 7468 Vorden Parkway CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Declaratory Resolution: Bill No. 23-10 Tax Abatement for 7468 Vorden Parkway Coast Southwest is a leading chemical distribution and ingredient technology company serving the personal care and household products industry. Industrial Development Real Property Abatement •10-year abatement •Coast Southwest will relocate current distribution center to South Bend from Illinois •$8.203 million private investment to build 94,000 square foot facility •Future Phase II –136,000 square foot expansion CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Declaratory Resolution: Bill No. 23-10 Tax Abatement for 7468 Vorden Parkway Industrial Development Real Property Abatement •10-year abatement •Current taxes: $942 •Estimated $9,420 over 10 years •First year of abatement, estimated taxes to be paid: $1,353 •During 10-year abatement period •Estimated taxes to be paid: $1,225,917 •Estimated taxes abated: $824,136 •Estimated taxes to be paid •After 15 years: $2,250,940 ($14,120 w/o abatement) •After 20 years: $3,275,970 ($18,830 w/o abatement) CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Declaratory Resolution: Bill No. 23-10 Tax Abatement for Property Located at 7468 Vorden Parkway ESTIMATED* Taxes During Abatement Period Year Abatement Current Taxes Due New Projected Tax Combined Current & New Taxes Taxes Abated Net Taxes Paid 1 100%$ 942 $ 204,064 $ 205,005 $ (203,652)$ 1,353 2 90%942 204,064 205,005 (174,327)30,678 3 80%942 204,064 205,005 (145,002)60,003 4 70%942 204,064 205,005 (115,677)89,328 5 60%942 204,064 205,005 (86,352)118,653 6 50%942 204,064 205,005 (57,028)147,978 7 40%942 204,064 205,005 (27,703)177,303 8 30%942 204,064 205,005 (7,197)197,808 9 20%942 204,064 205,005 (4,798)200,207 10 10%942 204,064 205,005 (2,399)202,606 Total:9,417 2,040,636 2,050,053 (824,136)1,225,917 * Assumes constant tax rates and no changes in assessed value.