HomeMy WebLinkAbout24-12 Declaratory Resolution - Real Property Tax Abatement Steel Warehouse Company, LLC 2803 Tucker Drive and 2920 Tucker Drive (.,,,,,,,, Filed in Clerk's Office
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CITY OF SOUTH BEND APR 0 3 2024
EACE ,.
- = COMMUNITY INVESTMENT Bianca Tirado
,_ ; City Clerk, South Bend, IN
April 3, 2024
Council Member Troy Warner
Chairperson, Community Investment Committee
South Bend Common Council
County-City Building, 4th Floor
South Bend, Indiana 46601
RE: Declaratory Resolutions j2): Personal Property and Industrial Development Real
Property Tax Abatement Petition for Steel Warehouse Company, LLC
Dear Council Member Warner,
Please find the enclosed information pertaining to a personal property and industrial
development real property tax abatements petition submitted by Steel Warehouse Company,
LLC, an Indiana Limited Liability Company. This petition package includes:
• Department of Community Investment's summary report
• Petition for abatement
• Statement of Benefits forms (SB-1 / Real Property and SB-1 / Personal Property)
• Supporting information
The report contains the Department's findings relative to the above-mentioned petition. The
petitioner intends to construct a new building at 2803 and 2920 Tucker Drive on Steel
Warehouse's Tucker Drive campus to facilitate the installation of a new leveling line and
materials handling equipment. This new line will require the construction of a 30,852 square foot
building to house the equipment. The company's headquarters are located at 2722 Tucker
Drive, and this address is commonly used to describe the entire campus. The total investment
for this project is projected to exceed $14 million.
The project meets the requirements established by Section 2-84.2 and Sections 2-82 et seq.
and would respectively qualify for a five-year (5) personal property tax abatement and a six-year
(6) industrial development real property tax abatement. A representative from Steel Warehouse
Company, LLC, will be available to meet with the Committee on Monday, April 8, 2024.
If you or other Council members have questions about the report or need additional information,
please feel free to call me at (574) 235-5838.
Sincerely,)7)4. ��
Erik Glavich
Director, Growth and Opportunity
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
1400S County-City Building 227 W.Jefferson Blvd. South Bend.Indiana 46601 p 574.235.9371 www.southbendin.gov
BILL NO. 24-12
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
2803 Tucker Drive, South Bend, Indiana 46619
AND
2920 Tucker Drive, South Bend, Indiana 46619
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
SIX-YEAR (6) REAL PROPERTY TAX ABATEMENT FOR
Steel Warehouse Company, LLC
WHEREAS, a petition for real 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 described as:
Key Number: 71-08-15-151-002.000-026
Local Parcel Number: 018-8075-284403
Commonly Known As: 2803 Tucker Drive
Legal Description: 535 Ft E& W X 324.25 Ft N& S Beg 260 Ft S Of N
E Cor S WNW Sec 15-3 7-2e & S 1/2 Vac Tucker
Dr N&Adj Cont 4.228 Ac +-
Key Number: 71-08-15-151-003.000-026
Local Parcel Number: 018-8075-284406
Commonly Known As: 2920 Tucker Drive
Legal Description: Beg 580.64 Ft So Ne Cor Sw1/4 Nw1/4 Sec 15-37-
2e Also 79.3'E& W By 172'N& S Sw Cor Sw1/4
Nw1/4 Cont 5.112 Ac +- & S 1/2 Vac Tucker St N&
Adj
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 and owners of the area are common entities; and
WHEREAS, the area commonly known as 2803 Tucker Drive and 2920 Tucker Drive is
part of the Steel Warehouse campus, which also includes the company's headquarters at 2722
Tucker Drive; and
WHEREAS,petitioner has agreed to and has accepted responsibility to report any changes
in the Key Numbers and legal descriptions 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, is 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 the area as an Economic
Revitalization Area for purposes of real property tax abatement.
SECTION V. The designation as an Economic Revitalization Area shall expire on December 31,
2026.
SECTION VI. The Common Council hereby determines that the property owner is qualified for
and is granted property tax deduction for a period of six(6)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 - 90%
Year 3 - 80%
Year 4 - 70%
Year 5 - 60%
Year 6 - 50%
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.
Sharon McBride, Council President
South Bend Common Council
Attest:
Bianca Tirado, City Clerk
Office of the City Clerk
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 , 2024, at
o'clock .m.
Bianca Tirado, City Clerk
Office of the City Clerk
Approved and signed by me on the day of ,2024,at o'clock
.m.
James Mueller, Mayor
City of South Bend
TAX ABATEMENT REPORT Filed in Clerk's Office
TO: South Bend Common Council APR 0 3 2024
FROM: Erik Glavich, Director, Growth and Opportunity Bianca Tirado
City Clerk, South Bend, IN
SUBJECT: Industrial Development Real Property Tax Abatement Petition for Steel
Warehouse Company, LLC
DATE: April 3, 2024
On April 3, 2024, a petition for tax abatements from Steel Warehouse Company, LLC,was filed
with the Office of the City Clerk. The petition seeks consideration for an industrial development
real property tax abatement for the development of a new building at 2803 and 2920 Tucker
Drive in South Bend on Steel Warehouse's Tucker Drive campus. The new building will house
a new leveling line and material handling equipment for the company. The petition also seeks
consideration for a personal property tax abatement.
Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South
Bend, the 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 Indiana Code 6 1.1-12.1 and all zoning requirements have been
met.
The Department of Community Investment has reviewed the petition, investigated the area, and
makes the following report.
Project Summary
• The petitioner will erect a 30,852 square foot building at 2722 Tucker Drive with an
expected construction cost of$3,500,000.
• This building will be used to house a new leveling line which will require new machinery
and equipment with an expected cost of$9,050,000. This cost will be split roughly
evenly over 2024 and 2025.
• Total investment for the project is projected to exceed $14 million.
• The addresses of the impacted parcels are 2803 and 2920 Tucker Drive. These parcels
comprise two of 11 parcels on the Steel Warehouse Tucker Drive campus. The
company's headquarters are located at 2722 Tucker Drive, and the headquarters'
address is commonly used when speaking about the entire campus.
Employment Impact
• Steel Warehouse Company, LLC will retain 21 workers currently working at this location.
• By the end of 2027, the petitioner anticipates the project will result in an additional 11
full-time positions with an estimated total annual payroll of$566,134.
Filed in Clerk's Office
APR 0 3 2024
Bianca Tirado
Tax Estimates City Clerk, South Bend, IN
Industrial Development Real Property Tax Abatement: The petitioner qualifies for a six-year (6)
mixed-use development real property tax abatement.
Impacted Parcels Only
• Taxes due in 2024 for the property: $26,531
• Estimated annual taxes after the project's completion: $97,595
• Total estimated taxes during the six-year(6) abatement period: $585,567
o Estimated taxes being abated during the abatement period: $213.288
o Estimated total taxes to be paid during the abatement period: $372,280
The estimates above are for the two impacted parcels only. The Steel Warehouse campus on
Tucker Drive is comprised of 11 parcels, and Steel Warehouse will pay $199,203 total in real
property taxes on these parcels in 2024.
Entire Steel Warehouse Tucker Drive Campus
• Taxes due in 2024 for the property: $199,203
• Estimated annual taxes after the project's completion: $270,267
• Total estimated taxes during the six-year (6) abatement period: $1,621,599
o Estimated taxes being abated during the abatement period: $213.288
o Estimated total taxes to be paid during the abatement period: $1,408,311
Personal Property Tax Abatement: The petitioner qualifies for a five-year(5) personal property
tax abatement.
• Total taxes due in 2024 for existing personal property on the property: $629,005
• Estimated cumulative new personal property taxes on the equipment during the five-year
(5) abatement period (does not include existing personal property taxes): $805,443
o Estimated taxes being abated during the abatement period: $558,743
o Estimated taxes to be paid during the abatement period: $246,700
2
Abatement Qualification
1. A search of Common Council online records indicates that Steel Warehouse and its
subsidiaries have received 22 abatements since 2000.
• Personal Property: 16 abatements (12 for Steel Warehouse and 4 for Lock Joint
Tube, subsidiary)
• Real Property: 6 abatements (3 for Steel Warehouse and 3 for Lock Joint Tube)
Since 2000, the 22 tax abatements received by Steel Warehouse and its subsidiaries
had job-creation estimates totaling 99 to 149 jobs.
The most recent abatement was approved in 2022. Confirming Resolution No. 4982-22
approved a five-year(5) personal property tax abatement for$3.7 million in equipment to
expand the company's cold reducing mill operations.
2. The property is properly zoned for the proposed project.
3. Taxes on the property have been paid in full.
4. A review of the South Bend Redevelopment designation areas finds that the property is
in the River West Development Area.
5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets
the qualifications for a six-year(6) industrial development real property tax abatement
under Division 7 (Industrial Development Real Property Tax Abatement), Section 2-82
(Industrial development city-wide general standards).
The petitioner also meets the qualifications for a five-year(5) personal property tax
abatement under Division 10 (Personal Property Tax Abatement), Section 2-84.2
(Tangible personal property tax abatement).
Filed in Clerk's Office
APR 0 3 2024
Bianca Tirade
City Clerk, South Bun IN
3
6-Year Abatement April 2,2024
Steel Warehouse Company, LLC
South Bend Portage Township
Commerical Development Real Property Tax Abatement Schedule*
Type of Property: Industrial
Estimated Project Cost: $ 3,500,000 Addition
Property Address: 2722 Tucker Drive
Tax Key Number: 71-08-15-151-002.000-026&71-08-15-151-003.000-026
Without
Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Assessed Value(AV)
Land $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
Structure(Current AV+60%Project Cost) 684,000 2,784,000 2,784,000 2,784,000 2,784,000 2,784,000 2,784,000 2,784,000
Gross Assessed Value 784,000 2,884,000 2,884,000 2,884,000 2,884,000 2,884,000 2,884,000 2,884,000
Abatement 100% 90% 80% 70% 60% 50%
Abatement Deduction - (2,100,000) (1,890,000) (1,680,000) (1,470,000) (1,260,000) (1,050,000)
Net Assessed Value 784,000 2,884,000 784,000 994,000 1,204,000 1,414,000 1,624,000 1,834,000
Property Taxes
Assume constant tax rate of 5.3548%
Gross Tax(Tax Rate x Net AV) 41,982 154,432 41,982 53,227 64,472 75,717 86,962 98,207
Local Tax Credit(12.3682%of GT-DS) (4,820) (17,731) (4,820) (6,111) (7,402) (8,693) (9,984) (11,275)
Circuit Breaker Credit (10,631) (39,107) - - - - - -
Taxes Due $ 26,531 $ 97,595 $ 37,162 $ 47,116 $ 57,070 $ 67,024 $ 76,978 $ 86,932
3% 3% 3% 3% 3% 3% 3% 3%
Circuit Breaker Cap 23,520 86,520 86,520 86,520 86,520 86,520 86,520 86,520
Debt Service(0.3840%of Net AV) 3,011 11,075 3,011 3,817 4,623 5,430 6,236 7,043
Max Tax Under the Cap 26,531 97,595 89,531 90,337 91,143 91,950 92,756 93,563
Current Taxes New Combined Net Taxes -•
Year Abatement Due Projected Tax Current& Taxes Abated Paid CD
New Taxes n a
1 100% $ 26,531 $ 71,064 $ 97,595 $ (60,433) $ 37,162 N 03 ro --
2 90% 26,531 71,064 97,595 (50,479) 47,116 A-co
3 80% 26,531 71,064 97,595 (40,525) 57,070 (n 0 p 0
4 70% 26,531 71,064 97,595 (30,571) 67,024 0
5 60% 26,531 '''-‘71,064 97,595 (U,B17) 76,978 - 7-
6 50% 26,531 71,064 97,595 (10,663) 86,932 ?y o
Total: 159,183 426,384 585,567 (213,288) 372,280 7 C
C 0
*This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2023 Payable 2024. _} '. Department of Community Investment -"
The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. ` • .,, City of South Bend Z o
5-Year Abatement April 2,2024
Steel Warehouse Company, LLC
South Bend Portage Township
Personal Property Tax Abatement Schedule*
Estimated Equipment Cost: $ 9,050,000
Asset Pool: Pool#4(13 years and longer)
Property Address: 2722 Tucker Drive
Tax Key Number: 71-08-15-151-002.000-026&71-08-15-151-003.000-026
Year 1 Year 2 Year 3 Year 4 Year 5
Assessed Value(AV)
True Tax Value(TTV) 40% 60% 63% 54% 46%
New Base(Equipment Cost x TTV) 3,620,000 5,430,000 5,701,500 4,887,000 4,163,000
Abatement 100% 90% 80% 70% 60%
Abatement Deduction (3,620,000) (4,887,000) (4,561,200) (3,420,900) (2,497,800)
Net Assessed Value - 543,000 1,140,300 1,466,100 1,665,200
Property Taxes
Assume constant tax rate of 5.3548%
Gross Tax(Tax Rate x Net AV) - 29,077 61,061 78,507 89,168
Debt Service(0.3840%of Net AV) - 2,085 4,379 5,630 6,394
Local Tax Credit(12.3682%of GT-DS) - (3,338) (7,011) (9,014) (10,238)
Circuit Breaker Credit - - - - -
Taxes Due $ - $ 27,823 $ 58,429 $ 75,123 $ 85,325
Circuit Breaker Cap 3% 3% 3% 3% 3%
108,600 162,900 171,045 146,610 124,890
Year Abatement New ProjectedTa Taxes Abated Net Taxes
1 100% $ 122,501 $ (122,501) $ -
2 90% 183,751 (155,928) 27,823
3 80% 192,939 (134,510) 58,429
4 70% 165,376 (90,253) 75,123
5 60% 140,876 (55,551) 85,325
Years 1-5 Total: 805,443 (558,743) 246,700
Years 6-10 Total: 456,315 - 456,315
*This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2023 Payable 2024.
The true tax values will ultimately be determined by the actual assessed valuation and the then current tax r'S''''''AiN
i'Es Ilk
II Department of Community Investment
a ra City of South Bend
Filed in Clerk's Office
APR 0 3 2021t
Bianca Tirado
City Clerk, South Bend, IN
Filed in Clerk's Office
APR 0 3 202/f
City of South Bend Instructions:Completepagesl-3 Bi , ado
AND the proper FormSB-1fdL,lty CI r rBend, IN
Petition for Incentives the type of abatement(real
- ���`! j
property or personal property) 1ttt
Petition must Include a$250 filing fee payable to the for which you are applying. " '
"City of South Bend"before processing con be complete
General Information Project Name I I Project Number
Legal name as registered with
Secretary of State Steel Warehouse Company, LLC
Business structure Limited Liability Company
Company webslte 1
Proposed Project Information
Proposed project address 2722 W Tucker Drive Parent company name Lerman Holding Co. Inc.
City,State,Zip South Bend, IN 46619 Legal owner
Site acreage or acreage required Is the real estate owned
or leased? Owned
Square feet of facility
30,852 If leased,by whom?
Primary Contact Information
Primary company contact name Gerald F Lehman This Vice President
Address of company contact 2722 W Tucker Drive Phone 574-236-5100
City,State,Zip South Bend, IN 46619 Email gerryl@steelwarehouse.net
Senior Official Information
Company senior official name Randy Parsons Title General Manager-North Division
Address of company contact Phone
(If different from above) 574-236-5100
City,State,Zip Email
randyp@steelwarehouse.net
Consultant Information/Agent
Hired business consultant/agent name Consultant release?(Y/N)
Address Local economicdeveiopment partners
approval?(Y/N)
City,State,Zip Email
Project Overview
Brief description of your
company,pro)ect,andwhythe This project involves an investment of over$14 million to replace older
property Is necessary for leveling technology with state of the art equipment, together with erection of
economic growth a 30,852 square foot building to house the new equipment, and new
material handling equipment to service the new leveling line. It is believed
that the Project, when completed, will make the taxpayer among the most
competitive producers/processors in the industry, through its improvements
in both quality and productivity. The taxpayer expects that this will, in turn
create new opportunities to significantly expand its South Bend business
and operation, resulting in greater employment at every level, including
machine operators, support personnel, engineering and technical services,
material handling, sales, clerical functions and supervisors.
Certified Technology Park appropriate
Is the project in a Tax Incremental Flnandng
(rIF)area?if so,which?
Have Building Permits been Issued?(Y/N) Number of residential units created by
[Note-Not eligible for abatement if Yes] N project I0
If this is a petition for personal property tax abatement,has
the equipment been installed? N
Investment Details
Public Infrastructure needs Has any SO4 funding been What Is the value of any equipment being purchased In What Is the value of any equipment being
(Off-site of project In dollars) received? Indiana for the project? purchased from out of state for the project?
No J $50,000.00 $9 million
Rianna Tir ido
New Project Investments City Clerk, South Bend, IN
Calendar Year 2023 2024 2028 2026 2027 2028 2029 2030
Land Acquisition
Building lease Payments
Building Purchase Costs
New Building Construction $3,700.19 0U
Existing Building improvements
New Machinery&Equipment $4,500.000 00 $4,550,000.00
Special Tooling/Retooling I .
New Furniture/Fixtures
New Computer/IT Hardware
New Software
On-site Rall Infrastructure
On-site Fiber Infrastructure
TOTAL $0.00 $8000,000 00 $4,550.000,00 $0.00 $0.00 $0.00 $0.00 $0.00
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year lobs retained Hourly Cumulative B of net NEW full time Hourly average wage,w/o Total training Total B to be
avers a permanent jobs created at project benefits or bonuses,of expenditure- trained-not
wage.w o
benefits or cumulative net new jobs not cumulative
bonuses cumulative
2024 21 $23 82 $60,900 8
2025 0 $0.00
2026 5 $24.88 $3,600 2
2022 6 $24.63 $3,600 2
2028
2029
2030
2031
2032
2033
2034
2035
Provide hourly wage Information for new employees in the following positions.
Full time I Part time
laborers $22.78 I --
Technical $24.85
Managerial $23,48
Administrative $23.48
Who will be the individual responsible for coordinating l
with WorkOne on recruiting?
Does your company have an EEO hiring policy? Yes Are you an EEO employer? Yes
Please list the number of full time and part time minority and/or female Please describe your commitment to
employees for the following years: diversity and inclusion by detailing your
�— outreach and recruitment efforts for the last
rear 2024 2023 2022 three years as well as current policies.
Full Time Part Time Full Time Part lime Full Time Part Time
Black 79 79 77
Hispanic 56 56 55
Asian 0 0 0
Indian 1 1 1
Female 75 75 72
Other
Filed in Clerk's Office
A -P; 0 3 2024
City Clerik,South fiend, IN
Complete the table below for Real Property Tax Abatement only.
*** Sign at the bottom for all requested incentives(real AND personal property).***
Public Benefit Item:
Information is required on both the construction companies and the
companies which will provide materials purchased for this project.
Qualify
Please complete the table below with the appropriate information. If Earned Points Available Points
(yes or No)
you qualify for the points,please enter the full amount of available
points.
1 I Construction Related(Contractors!:
A. Employ Local Companies(75%) No 20
B. Purchase Materials from Local Companies(75%) "es 20 20
C. Require Employees vs.Independent Contractors No 19
D. Require Prevailing Wage No 22
E. Require Health Benefits No 22
F. Require Retirement Benefits No 18
G. Maintain Affirmative Action Plan No 20
!Sub-total Construction Related: I 20 141
2 Wage&Benefit Related jOwner): I}
A. Pay Target Wage Levels Yes 33 33
B. Provide Health Benefits Yes 34 34
C. Provide Retirement Benefits Yes 29 29
D. Provide Training Yes 28 28
E. Provide Child Care No 15
'Provide Transportation Assistance I No I 14
IG. 'Provide EmployerAssisted Housing program I No 9
ISub-total Wage&Benefit Related: 124 162
3 Workforce Related:
A Create NewJobs No 42
B Retain Existing Jobs Yes 41 41
1. Maintain Affirmative Action Plan No 35
D. Provide Targeted Hiring Preference No 34
ISub-total Workforce Related: 41 152
4 I Support a Municipal Faclli I
Support a 5B Municipal Facility(donations to the
A. zoo,conservatory,museum,etc.) Yes 84 84
Name of Facility Logan Community Center and Studebaker Nat'l Museum
ISub-total Municipal Facility: 64 84
Sub-total from Above: 269 539
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 seq.,for this petition state the above.
Submitted By: 6,,. .., F. .lnA..,,• Date: AP.,I a, 16 tN
Filed in Clerk's Office
APR 0 3 2024
Bianca Tirado
City Clerk, South Bend, IN
For Staff Use Only Below This Line
What Is the current assessed value? (Real Property: r 684,000 Personal Property:
What is the projected assessed value? 'Real Property: l 2,100,000 Personal Property:
What is the tax key number(s)for this project? 71-08-15-151-002.000-026& 71-06-15-151-003.000-026
What Is the six digit NAICS code?
423519
Please attach a Google map and street view of the location. I
Please list the amount of real and personal property loxes Real Property Taxes: Personal Property Taxes:
paid for the last five years when applicable.
Tax Year 2022/Pay 2023 526,143.613 $633,449.44
Tax Year 2021/Pay 2022 $24,873,20 $617,425.80
Tax Year 2020/Pay 2021 $24,868.80 $604,422.80
Tax Year 2019/Pay 2020 $21,945.00 $474,139.50
Tax year 2018/Pay 2019 $24,810.80 $502,353.02
Please fill out the following Public Benefit Summary Information and add to total from above.
jY or NI I Points I Points
Public Benefit Item:
Project Related_
A. Redevelop a Site that has Special Needs N I 49
i3. Develop Based on Local University Research N 35
C. Achieve a Physical Element of a Plan N 36
Sub-total Project Related: 12C
b Super Size Projects jpolnt values are cumulativej;
A. 100%to 199% Y 25 25
B. 200%to 299% N 68 68
C. 300%to 399% N 65 65
3. 400%and Over N I 52
Sub-total Super Size Projects: 210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing or Upgrading N 14
B. Pay for 26-50%of Extension Cost N 26
Pay for 51-75%of Extension Cost N 39
C. Pay for 76-1D0%of Extension Cost N I 52
jSub-total Infrastructure Related: 131
Total from Applicant Section: 269 539
Total from Staff Section: 158 461
Total Public Benefit Points: 427 1000
; R. :Q. STATEMENT OF BENEFITS 2024 PAY 2025
REAL ESTATE IMPROVEMENTS
state Form S•7s 'i7 •-t 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
O Redevelopment or rehabilitation of real estate improvements(IC 6-1,1-12.1-4) of the progeny and specific,atones
paid to Intlivtdtwl employees by the
❑ Residentially distressed area(IC 6-1.1-1 2 1-4 1) property owner is confidential per
C6 '2. 5 .
INSTRUCTIONS.
1 This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction
2 The statement of benellts 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 322/RE 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 alter April 10. A properly owner who
fatted to file a deduction application within the prescribed deadline may hie an application between January 1 and May 10 of a subsequent year
4 A property owner who hies for the deduction must provide the county auditor and designating body with a Form CF-1/Real Property The Form CF-1/Real
Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction its applicable.
IC 6-1 1-12 1-5 1(b)
5 For a Form SE-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 to effect. IC 5-1 1-12 1-17
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer Steel Warehouse Company LLC
a,:dras Taxpayer
Strnct 2722 Tucker Drive (-Ay, South Bend Stair IN ZIP- 46619
Name of contact person Telephone number E-mail address
Gerald Lerman (574)236-5100 gerryl@steelwarehouse-net
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
Common Council of the City of South Bend
location of property Number and Street C.in ;,,te z:P C;:ar•y DLGF taxing district number
2722 Tucker Drive South Bend IN 46619 St. Joseph 026(South Send-Portage)
Oesenption of real property improvements.redevelopment.or reeanArtatidn(use additional sheets If necessary) Estimated start date(month,day.year)
Erection of 30,852 sq. ft. building, together with crane rails, overhead cranes 6/30/2024
and relocation of water, electrical and gas utilities. Estimated completion date(m°n`°.day year)
9/15/2024
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current`lumner iiaiar,ea I`L.^'far%eta re:7 _;,.sites `,,.rnoer-'tc: :nal Salaries
575 $ 34,705.266 21 $ 1,000.440 11 $566,134
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values S'3'6,200 8 5 84000
Plus estimated values of proposed project i $3,500.000 8 2.100.000
Less values of any prope^y beirg replaced
Net estimated values upon corriplelior ,`project $5.416.200 f 2.784,000
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste convene _ >u iat d 1.i i,i.is waste converted(pounds _--- _
Other benefits
The real estate improvement, which will house the new state of the art equipment, will
strengthen the tax-payer and help to keep it competitive in the highly competitive and volatile
industry in which it conducts business.
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations n .b s ssate^-ent are tr„e
Signature of authorized representative Date signed(month.day.year)
Printed name of authorized representative
Gerald F. Lerman Vice President
Page 1 of 2
FOR USE OF THE DESIGNATING BODY
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 N/A calendar years'(see below). The date this designation
expires is 12/31/2026 , NOTE.This question addresses whether the resolution contains an expiration date for the designated area.
B. The type of deduction that is allowed in the designated area is limited to.
1 Redevelopment or rehabilitation of real estate improvements 13 Yes ❑No
2.Residentially distressed areas ❑Yes 0 No
C. The amount of the deduction applicable is limited to S N/A
0. Other limitations or conditions(spicery) N/A
E. Number of years allowed ❑Year 1 ❑Year 2 0 Year 3 ❑Year 4 ❑Year 5 (*see below)
❑Year 6 ❑Year 7 ❑Year 8 ❑Year 9 E 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?
0 Yes ❑No
If yes, attach a copy of the abatement schedule to this form.
If no,the designating body is required to establish an abatement schedule before the deduction can be determined.
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
Common Council of the City of South Bend
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. Except as provided in IC 6-1.1-12.1-18.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 Farm 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.(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. Except as provided in IC 6-1.1-12.1-18,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
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