HomeMy WebLinkAboutDCI_ Presentation_2024-04-08Department of Community Investment
April 8, 2024
CITY OF SOUTH BEND
DEPARTMENT OF COMMUNITY INVESTMENT
Agenda
Bill No. 24-11 Declaratory Resolution: Five-Year (5) Personal Property Tax Abatement for Steel
Warehouse Company, LLC (2803 & 2920 Tucker Drive)
Bill No. 24-12 Declaratory Resolution: Six-Year (6) Real Property Tax Abatement for Steel
Warehouse Company, LLC (2803 & 2920 Tucker Drive)
CITY OF SOUTH BEND
DEPARTMENT OF COMMUNITY INVESTMENT
Steel Warehouse, LLC
2722 Tucker Drive
CITY OF SOUTH BEND
DEPARTMENT OF COMMUNITY INVESTMENT
Steel Warehouse, LLC
2722 Tucker Drive
•Impacted parcels are 2803 $ 2920 Tucker Drive
CITY OF SOUTH BEND
DEPARTMENT OF COMMUNITY INVESTMENT
Bill No. 24-11: Declaratory Resolution – Personal Property
Bill No. 24-12: Declaratory Resolution – Real Property
•Steel Warehouse plans to significantly upgrade a
production line.
•New machinery and equipment; expected cost of
$9,050,000.
•New 30,852 square foot building; expected cost of
$3,500,000.
•Total investment for the project is projected to exceed
$14 million.
Employment Summary
•Retain 21 workers currently working at this
location
•By the end of 2027, additional 11 full-time
positions with an estimated total annual payroll of
$566,134
Steel Warehouse Company, LLC
CITY OF SOUTH BEND
DEPARTMENT OF COMMUNITY INVESTMENT
Bill No. 24-11: Declaratory Resolution – Personal Property
Personal Property Abatement (5 years)
Tax Summary
•Current tax year 2023/pay 2024 personal
property taxes total for the entire campus:
$629,005
•NEW equipment during the 5-year abatement:
•Total estimated taxes: $805,443
•Taxes abated: $558,743
•Taxes paid: $246,700
•NEW equipment, Years 6-10
•Total estimated taxes: $456,315
Steel Warehouse Company, LLC
CITY OF SOUTH BEND
DEPARTMENT OF COMMUNITY INVESTMENT
Bill No. 24-12: Declaratory Resolution – Real Property
Industrial Development Real Property Tax Abatement (6 years)
•For the entire Steel Warehouse Tucker Drive campus, current
estimated annual taxes: $199,203
Tax Summary – Impacted Parcels Only
•Current estimated annual taxes: $26,531
•Estimated annual taxes after project: $97,595
•During the 6-year abatement
•Total estimated taxes: $585,567
•Taxes abated: $213,288
•Taxes paid: $372,280
•Estimated taxes paid with abatement included
•After 10 years: $762,700 ($265,300 w/o the project)
•After 15 years: $1,250,600 ($398,000 w/o the project)
•After 20 years: $2,122,600 ($418,600 w/o the project)
Steel Warehouse Company, LLC