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HomeMy WebLinkAbout25-35 Designating Resolution - Real Property Tax Abatement for South Bend Chippewa, LLC and South Bend Chippewa ACG, LLC Filed in Clerk's Office 4. ((c.), . ,...., 41/4 CITY OF SOUTH BEND Bianca Tirado ice . YEACE r; City Clerk, South Bend, `� . 4/,;;,, COMMUNITY INVESTMENT IN;ra„ / June 17, 2025 Council Member Troy Warner Chairperson, Community Investment Committee South Bend Common Council County-City Building, 4th Floor South Bend, Indiana 46601 RE: Declaratory Resolution: Industrial Real Property Tax Abatement for South Bend Chippewa, LLC and South Bend Chippewa ACG, LLC Dear Council Member Warner, Please find the enclosed Declaratory Resolution and supporting information pertaining to a tax abatement petition submitted by South Bend Chippewa, LLC, and South Bend Chippewa ACG, LLC, which are Foreign Limited Liability Companies with principal offices in Richfield, OH. This petition package includes: • Department of Community Investment's summary report • Petition for abatement • Statement of Benefits form (SB-1 / Real Property) • Supporting information The report contains the Department's findings relative to the above-mentioned petition. The petitioner intends to redevelop the property at 701 W. Chippewa Ave. The building has special needs as sections were used as former aviation engine testing cells during World War II. The impacted space is approximately 221,248 square feet which is currently unusable. Once the aviation test cells are demolished, it will allow for modern development with improvements to include additional loading dock positions, a truck court for tractor/trailer storage, and allow for truck circulation for additional tenants. The total investment for this project is $11,200,000. The project meets the qualifications for an eight- year(8) industrial development real property tax abatement. A representative from South Bend Chippewa, LLC and South Bend Chippewa ACG, LLC, will be available to meet with the Committee on Monday, June 23, 2025. If you or other Council members have questions about the report or need additional information, please feel free to call me at(574)235-5836. Sincerely, Mark Bemenderfer Manager of Business Development EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 1400S County-City Building 227 W.Jefferson Blvd. South Bend.Indiana 46601 p 574.235.9371 www.southbendin.gov Filed in Clerk's Office May 15, 2025 JUN 1 7 2025 Bianca Tirado City Clerk, South Bend, IN Mark W Bemenderfer Manager Business Development Department of Community Investment City of South Bend 227 W.Jefferson Blvd., Ste. 1400S South Bend, IN 46601 RE: 701 W. Chippewa Street, South Bend, IN 46614 Dear Mr. Bemenderfer: The current owners of the property located at the above-address is a subsidiary of Industrial Realty Group.. (n - s:i%n,'wv 1. dus`~ e D.ry:;-o,,,D.c:Di ) Industrial Realty Group, LLC (IRG) is among the country's largest owners of commercial and industrial properties with a privately held and managed portfolio in excess of 100 million square feet. IRG is a nationwide company, which owns and operates more than 150 major projects and developments in 31 states. Nationally recognized as a leading force behind the adaptive reuse of buildings and facilities throughout the nation, our projects often involve acquiring under-performing real estate and developing a creative repositioning plan to renovate, lease and maintain the property to stabilization. Retrofitting otherwise obsolete buildings, corporate campuses, and industrial complexes resulting in a collaborative win for local communities,tenants and IRG. IRG has been recognized for its success in solving complex real estate challenges, including converting corporate campuses into mixed use projects and brownfield sites (including NPL Superfund Sites) into vibrant, environmentally-clean, business parks. In addition, IRG is a leader in the conversion and privatization of federal properties. Our portfolio includes three closed military bases, a former NASA manufacturing facility and a closed Veterans Affairs complex. IRG has an extensive national team of over 150 employees prepared to manage contractors, subcontractors, and/or hire staff to meet and exceed project expectations. IRG's operating plan is to hire locally with rare exceptions. IRG identifies and builds relationships with key site personnel and retains experts with deep institutional knowledge about the property's past to support the site's future vision. IRG secures vetted, local architects, civil engineers, construction companies and service companies, and those with experience working on the site are often selected. IRG has master developed projects of varying scales throughout the U.S, and their internal team and third-party experts analyze each project and prepare a customized development plan to cultivate the project's next chapter.This project will reposition the asset for job creation. 701 W. Chippewa Street is a 29-acre property, comprised of 1.4 Million (975,000 Leasable) sq.ft. of manufacturing, industrial, and office space in South Bend, Indiana. It was built in 1940 and renovated in 1993,with portions of the aging property still in need of further cost prohibitive improvements.This would improve the former Studebaker manufacturing facility by taking unusable areas and converting it into high-demand, leasable industrial space. This will be accomplished with abatement/demolition of the former aviation engine test cells,which are obsolete.The test cells were previously used for testing Boeing'sB-17 Flying Fortress engines produced during World War II, but no longer support this function and hinder access. Once the aviation test cells are demolished, it wilt allow for modern development of approximately 221,248 sq. ft. making leasable these inaccessible (dead) areas. IRG can then construct additional loading dock positions, create a truck court for tractor/trailer storage, and provide truck circulation around the multi-tenanted property. We look forward to this opportunity and seeing the community benefits as a result of our investment. Sincerely, Michele Kiernan Vice President Asset Development Manager as Agent for South Bend Chippewa, LLC and south Bend Chippewa ACG, LLC Filed in Clerk's Office ` N 1 BILL NO. 25-35 Bianca Tirado RESOLUTION NO. City Clerk, South Bend, IN 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 701 W. Chippewa Ave, South Bend, IN 46614 AND AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) REAL PROPERTY TAX ABATEMENT FOR South Bend Chippewa, LLC AND South Bend Chippewa ACG, 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: 71-08-23-400-001.000-026 Local Parcel Number: 018-8020-083 7 Commonly Known As: 701 W Chippewa Ave Legal Description: Lot 1 Indiana G R Q Minor Sub 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, the petitioner and the owners of the area are common entities; and WHEREAS, the petitioner has agreed to and has accepted responsibility to report any changes in the Key Number and legal description 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, 2028. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of eight (8) 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 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6 - 75% Year? - 70% Year 8 - 65% 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. Canneth Lee, 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 , 2025, at o'clock .m. Bianca Tirado, City Clerk Office of the City Clerk Approved and signed by me on the day of ,2025, at o'clock .m. James Mueller, Mayor City of South Bend TAX ABATEMENT REPORT Filed in Clerk's Office J U N 1 7 2025 TO: South Bend Common Council Bianca Tirado FROM: Mark Bemenderfer, Manager of Business Development City Clerk, South Bend, IN SUBJECT: Industrial Real Property Tax Abatement Petition for South Bend Chippewa, LLC and South Bend Chippewa ACG, LLC DATE: June 17, 2025 On June 17, 2025, a petition for tax abatement from South Bend Chippewa, LLC and South Bend Chippewa ACG, LLC was filed with the Office of the City Clerk. The petition seeks consideration for an industrial real property tax abatement for 29-acre property located at 701 W Chippewa Ave. 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 petitioners, South Bend Chippewa, LLC and South Bend Chippewa ACG, LLC, seek to perform demolition and renovations to a 1.4 million square foot building that was formerly a Studebaker manufacturing facility. A significant portion of the facility (approximately 221,248 sq. ft.) consists of former aviation engine test cells that limit future development. • Once the cells are demolished, it will allow for modern development of this 221,000 square foot area and turn it into leasable space. • Planned improvements include adding additional loading dock positions, creating a truck court for tractor&trailer storage, and providing for truck circulation around the multi- tenanted property. Employment Impact Per this petition and supporting material, it is estimated that the company will create: • Upon completion of the current building's rehabilitation and conversion, at least fifty-five (55) new full-time jobs with an estimated total annual payroll of$1,944,800. • These jobs will be created through the leasing of space due to the project. Tax Estimates The petitioner qualifies for an eight-year(8) industrial real property tax abatement. • Current estimated combined annual real property taxes: $364,181 • Estimated combined annual taxes after the project's completion: $503,182 • Total estimated combined taxes during the eight-year(8) abatement period: $4,025,454 o Estimated taxes being abated during the abatement period: $97,683 o Estimated total taxes to be paid during the abatement period: $3,927,771 Abatement Qualification 1. A review of the tax abatements previously granted finds that the petitioner has not been granted prior abatements. 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 Southside Development Area. 5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for an eight-year (8) industrial real property tax abatement under Division 7 (Industrial Development Real Property Tax Abatement), Section 2-82 (Industrial development city-wide general standards). 2 8-Year Abatement June 17,2025 South Bend Chippewa, LLC & South Bend Chippewa ACG, LLC (Indiana GRQ Inc.) South Bend Portage Township Commerical Development Real Property Tax Abatement Schedule' Type of Property: Industrial Estimated Project Cost: $ 6,900,000 Rehabilitation Property Address: 701 W.Chippewa St,South Bend,IN 46614 Tax Key Number: 71-08-23-400-001.000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Assessed Value(AV) Land $ 1,005,300 $ 1,005,300 $ 1,005,300 $ 1,005,300 $ 1,005,300 $ 1,005,300 $ 1,005,300 $ 1,005,300 $ 1,005,300 $ 1,005,300 Structure(AV=60%Project Cost) 9,841,500 13,981,500 13,981,500 13,981,500 13,981,500 13,981,500 13,981,500 13,981,500 13,981,500 13,981,500 Gross Assessed Value 10,846,800 14,986,800 14,986,800 14,986,800 14,986,800 14,986,800 14,986,800 14,986,800 14,986,800 14,986,800 Abatement 100% 95% 90% 85% 80% 75% 70% 65% Abatement Deduction - (4,140,000) (3,933,000) (3,726,000) (3,519,000) (3,312,000) (3,105,000) (2,898,000) (2,691,000) Net Assessed Value 10,846,800 14,986,800 10,846,800 11,053,800 11,260,800 11,467,800 11,674,800 11,881,800 12,088,800 12,295,800 Property Taxes Assume constant tax rate of 5.0426% Gross Tax(Tax Rate x Net AV) 546,961 755,724 546,961 557,399 567,837 578,275 588,713 599,152 609,590 620,028 Local Tax Credit(10.1130%of GT-DS) (51,393) (71,008) (51,393) (52,373) (53,354) (54,335) (55,316) (56,296) (57,277) (58,258) Circuit Breaker Credit (131,387) (181,534) (7,187) (15,904) (24,622) (33,339) (42,056) (50,774) (59,491) (68,209) Taxes Due $ 364,181 $ 503,182 $ 488,381 $ 489,121 $ 489,861 $ 490,601 $ 491,341 $ 492,081 $ 492,821 $ 493,561 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Circuit Breaker Cap 325,404 449,604 449,604 449,604 449,604 449,604 449,604 449,604 449,604 449,604 Debt Service(0.3575%of Net AV) 38,777 53,578 38,777 39,517 40,257 40,997 41,737 42,477 43,217 43,957 Max Tax Under the Cap 364,181 503,182 488,381 489,121 489,861 490,601 491,341 492,081 492,821 493,561 Combined Year Abatement Current Taxes New Net Taxes Current& Taxes Abated Due Projected Tax Paid New Taxes 1 100% $ 364,181 $ 139,001 $ 503,182 $ (14,801) $ 488,381 2 95% 364,181 139,001 503,182 (14,060) 489,121 3 90% 364,181 139,001 503,182 (13,320) 489,861_ 4 85% 364,181 139,001 503,182 (12,580) 490,601 5 80% 364,181 139,001 503,182 (11,840) 491,341 6 75% 364,181 139,001 503,182 (11,100) 492,081 7 70% 364,181 139,001 503,182 (10,360) 492,821 8 65% 364,181 139,001 503,182 (9,620) 493,561 Total: 2,913,450 1,112,004 4,025,454 (97,683) 3,927,771 o 'This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2024 Payable 2025. ',4 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 City of South Bend Instructions:Complete pages 1-3 AND the proper Form SB-1 for Petition for Incentives the type ofabatement(real property or personal property) Petition must include a$250 filing fee payable to the for which you are applying. "City of South Bend"before processing can be complete General Information s Project Name 701 W.Chippewa Project Number Legal name as registered with Secretary of State South Bend Chippewa, LLC & South Bend Chippewa ACG, LLC Business structure Subsidiaries of Indiana GRQ, Inc, which is a subsidiary of Industrial Realty Group Company website https://www.industrialrealtygroup.com/ Proposed Project Information Proposed project address 701 W. Chippewa Ave. Parent company name Industrial Realty Group City,State,Zip South Bend, IN 46614 Legal owner Holdings JLC, LLC Site acreage or acreage required Is the real estate owned Owned 29 acres or leased? Square feet of facility 1.4M SF If leased,by whom. Primary Contact Information Primary company contact name Michele Kiernan Title VP, Asset Development Manager Address of company contact 4020 Kinross Lakes Pkwy.,Ste.200 Phone 330.671.9825 City,State,Zip Richfield, OH 44286 Email mkiernan@irgra.com Senior Official Information Company senior official name Michele Kiernan Title Agent for Owner Address of company contact Phone (if different from above) City,State,Zip Email Consultant Information/Agent Hired business consultant/agent name n/a Consultant release?(Y/N) Address Local economic development partners approval?(Y/N) City,State,Zip Email Project Overview Brief description of your company,project,and why the This is a 29 acre property, comprised of 1.4 Million (975,000 leaseable)sq. ft. of property is necessary for manufacturing, industrial, and office space in South Bend, Indiana. It was built in 1940 and economic growth renovated in 1993, with portions of the aging property still in need of further cost prohibitive improvements. This would improve the former Studebaker manufacturing facility by taking unusable areas and converting it into high-demand, leaseable industrial space. This will be accomplished with abatement/demolition of the former aviation engine test cells, which are obsolete. The test cells were previously used for testing Boeing's B-17 Flying Fortress engines produced during World War II, but no longer support this function and hinder access. Once the aviation test cells are demolished, it will allow for modern development of approximately 221,248 sq. ft., making leaseable these inaccessible areas. IRG can then construct additional loading dock positions, create a truck court for tractor/trailer storage, and provide truck circulation around the multi-tenanted property. Certified Technology Park appropriate Is the project in a Tax Incremental Financing (TlF)area? If so,which? Southside Development Area Have Building Permits been issued?(Y/N) Number of residential units created by (Note-Not eligible for abatement if Yes] Y project 0 If this is a petition for personal property tax abatement,has the equipment been installed? Investment Details Public Infrastructure needs Has any 504 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? n/a No n/a n/a New Project Investments Calendar Year 2023 2024 2025 2026 2027 2028 2029 2030 Land Acquisition Building Lease Payments Building Purchase Costs New Building Construction Existing Building Improvements New Machinery&Equipment Special Tooling/Retooling I New Furniture/Fixtures New Computer/IT Hardware New Software On-site Rail Infrastructure On-site Fiber Infrastructure TOTAL $0.00 $0.00 $lt,200,00000 $0.00 $0 00 $0.00 $0.00 $0.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Hourly Cumulative 9 of net NEW full time Hourly average wage,w/o Total training Total#to be average 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 2025 2026 55 $ 17.00 2027 2028 2029 2030 2031 2032 2033 2034 2035 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers Technical Managerial Administrative Who will be the individual responsible for coordinating 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 Year 2025 2024 2023 three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black Hispanic We do not track Asian employees of our tenants Indian Female Other 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 Construction Related(Contractors): A. Employ Local Companies(75%) Yes 20 I 20 B. Purchase Materials from Local Companies(75%) Yes 20 20 C. Require Employees vs.Independent Contractors No 19 D. Require Prevailing Wage No 22 E. Require Health Benefits Yes 22 22 F. Require Retirement Benefits No 18 G. Maintain Affirmative Action Plan No 20 Sub-total Construction Related: 62 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels Yes 33 33 B. Provide Health Benefits Yes 34 34 C. Provide Retirement Benefits No 29 D. Provide Training Yes 28 28 E. Provide Child Care No 15 F. Provide Transportation Assistance No 14 G. Provide Employer Assisted Housing program No 9 Sub-total Wage&Benefit Related: 95 162 3 Workforce Related: A. Create New Jobs Yes 42 42 B. Retain Existing Jobs Yes 41 41 C. Maintain Affirmative Action Plan No 35 D. Provide Targeted Hiring Preference Yes 34 34 Sub-total Workforce Related: 117 152 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A. zoo,conservatory,museum,etc.) No 84 Name of Facility ISub-total Municipal Facility: 84 Sub-total from Above: 274 539 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: i/J/i/j - Date: 06/16/25 For Staff Use Only Below This Line What is the current assessed value? Real Property: $9,841,500 Personal Property: nia What is the projected assessed value? Real Property: $13,981,500 Personal Property! n/a What is the tax key number(s)for this project? 71-08-23-400-001.000-026 What is the six digit NAICS code? 531 120 Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. Tax Year 2023/Pay 2024 $112,819.86 n/a Tax Year 2022/Pay 2023 $179,563.97 n/a Tax Year 2021/Pay 2022 $52.982.85 n/a Tax Year 2020/Pay 2021 $106,134.06 n/a Tax Year 2019/Pay 2020 $90.280.00 n/a Please fill out the following Public Benefit Summary Information and add to total from above. (Y or N) Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs Y 49 49 B. Develop Based on Local University Research N 35 C. Achieve a Physical Element of a Plan N 36 Sub-total Project Related: 49 120 6 Super Size Projects(point values are cumulative): A. 100%to 199% Y 25 25 B. 200%to 299% Y 68 68 C. 300%to 399% Y 65 65 D. 400%and Over Y S2 52 Sub-total Super Size Projects: 210 210 7 Pay for Municipal Infrastructure: A. Pay for Oversizing or Upgrading N 14 B. Pay for 26-50%of Extension Cost N 26 C. Pay for 51-75%of Extension Cost N 39 D. Pay for 76-100%of Extension Cost N 52 Sub-total Infrastructure Related: 0 131 Total from Applicant Section: 274 539 Total from Staff Section: 259 461 Total Public Benefit Points: 533 1000 ~otiE4-'-t• STATEMENT OF BENEFITS 2025 PAY2026 'L Ie REAL ESTATE IMPROVEMENTS State Form 51767(R7/1-21) FORM SB-1 I Real Property fb /sis/ 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 of❑� ries Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) paideto individual employees and pg bfic athe PY ❑ Residentially distressed area(IC 6-1.1-12.1-4.1) property owner is confidential per IC6-1.1-12.1-5.1. 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 benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction,a Form 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 after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between January 1 and May 10 of a subsequent year. 4. A property owner who files 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 is applicable. IC 6-1.1-12.1-5.1(b) 5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. IC 6-1.1-12.1-17 SECTION 1 TAXPAYER INFORMATION Name of taxpayer South Bend Chippewa, LLC & South Bend Chippewa ACG, LLC Address of taxpayer Number and Street:4020 Kinross Lakes Pkwy Ste. 200 Citn Mishawaka state: IN ZIP 46545 Name of contact person Telephone number E-mail address First Name: Michele Kiernan (330)671-9825 mkiernan@irgra.com 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 City State ZIP County DLGF taxing district number 701 W Chippewa St South Bend IN 46614 St. Joseph 026(South Bend-Portage) Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year) This is a 29 acre property,comprised of 1.4 Million(975,000 Leaseable)sq.ft.of manufacturing,industrial,and office space in South 6/1/2025 Bend,Indiana.It was built in 1940 and renovated in 1993,with portions of the aging property still in need of further cost prohibitive improvements.This would improve the former Studebaker manufacturing facility by taking unusable areas and converting it into Estimated completion date(month,day,year) high-demand,leaseable industrial space. 6/1/2027 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Currert Numbe, 'Salaries Nur^bee Retained Salaries Number Additional Salaries 200 $ 6,800,000 • 200 $ 6,800,000 55 $ 1,944,800 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values $0 $9,841,500 Plus estimated values of proposed project $6,900,000 $4,140,000 Less values of any property being replaced $0 $0 I Net estimated values upon completion of protect $6.900,000 $13,981,500 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signal f authori ed representative Date signed(month,day,year) 6/16/2025 Printed name of authorized representative Title Michele Kiernan Authorized Agent for Owner Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed 3 calendar years*(see below). The date this designation expires is 12/31/2028 . NOTE:This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements ✓❑Yes ❑No 2.Residentially distressed areas ❑Yes ❑✓ No C. The amount of the deduction applicable is limited to$ n/a D. Other limitations or conditions(specify) n/a E. Number of years allowed: ❑Year 1 ❑Year 2 ❑Year 3 ❑Year 4 ❑ Year 5 (*see below) ❑Year 6 ❑Year 7 Q Year 8 ❑Year 9 ❑Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ❑✓ Yes ❑No If yes,attach a copy of the abatement schedule to this form. If no,the designating body is required to establish an abatement schedule before the deduction can be determined. We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved(signature and title of authorized member of designating body) Telephone number Date signed(month,day.year) Printed name of authorized member of designating body Name of designating body Common Council of the City of South Bend, Indiana 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 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.(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 2 111 _ , AIL- 1 ( t } ... { fit ; , x - f JY� 4 . v I._.Z9tJ v��r ' ? H? d K' i3�� "vlE 7[— s y y p.,,•_ r.I Ap•-., . 4 u ' � 1.-E:IN#131T.--!FT4'. ' NA CI tiT �� � � �F r.ti T: 11 1 sd1-0�.��� 1 V I PI l i vo J- 6,-• io : ! IUIf +S` lF31N. 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SITE IMPROVEMENTS SOUTH BEND CHIPPEWA 701 West Chippewa Avenue,South Bend,IN 46614 A II June 23rd,2025 MEP)ADVI10A1.II( �• IRG • • • • • Environmental, Social, & Governance Statement IRG's core business and mission deliver substantial environmental and social 100 Million benefits to countless communities, residents, watersheds, companies and their 4,1 Square Feet employees. While cleaning and modernizing millions of square feet of historic building stock, IRG catalyzes new clusters of job opportunity, works closely with local governments and citizen groups to create mutual benefits, and resolves historic environmental issues. By redeveloping and repositioning existing , 150+Employees properties which often provide irreplaceable or unique infrastructure and location, not to mention legacy and significance to local communities, IRG delivers C&I property with a lower carbon footprint and environmental impact than a comparable greenfield development. Our staff is our greatest resource and the key to our success, so we strive to provide a positive, transparent, rewarding and 4C4Wfd150+Major philanthropic workplace, recognizing that diversity of people and opinion creates Projects a more resilient and profitable company in the long run. 12 Affiliated Offices Industrial Realty Group. LLC 11111 Santa Monica Boulevard, Suite 800, Los Angeles, CA 90025 (310)806-4434 I www.industrialrealtygroup.com IRG Environmental In the course of reusing obsolete buildings and cleaning up brownfields, IRG directly improves environmental conditions in communities around the country. IRG works closely with regulators and stakeholders around the U.S. to eliminate environmental risks, improve soil and groundwater health, and reduce carbon footprints of our own and our tenant's operations by reducing and reusing building stock and creating space for companies to operate near communities and reduce their transport impacts. We have treated soils, removed dangerous building materials, and protected air quality for our tenants and neighbors. We are implementing energy efficient building systems, installing solar PV to provide carbon-free power to tenants. and empowering our tenants to reduce their wastes, water use, and other impacts by investing in our sites for the long term. Social Revitalizing environmentally impacted or derelict property is an extremely efficient use of capital that creates positive economic knock-on effects measured in orders of magnitude. Our projects employ locals, reignite community pride, preserve historic locations, and enable many other companies—those both established and starting up —to offer many more 'nb opportunities, right here at home. IRG and IRG Realty Advisors recognize that our people are our greatest resource and that a happy, healthy and rewarded group of employees will drive better performance, capital efficiency, and create a better tenant experience; providing a competitive and robust benefits package is about supporting people's lives as well as attracting talent. We strive for a workplace that is diverse in people, opinion, and solution. Governance IRG uses a transparent. horizontal corporate structure so our entire staff and leadership can remain in touch and coordinate with one another on the challenges of the day. Our decision- making process is broad and deep, relying on a diverse set of opinions and insisting on accountability at all levels to create a more resilient business and mitigate business risks. We strive to create a two-way street that is always open to ideas for improvement. !RG has a long history of working closely and collaboratively with local governments, NGOs, and our neighbors to deliver environmental and community benefits. Success means wins for every stakeholder in the room: we believe our business is stronger when we have positive working relationships with our partners in local and state government, including our regulators. Our management teams and investment committee provide a corporate system of checks and balances that delivers outperformance via diversity of opinion and accountability to our employees and investors. Outperformance for IRG and our stakeholders means outperformance for the communities we partner with. Industrial Realty Group, LLC 11111 Santa Monica Boulevard, Suite 800, Los Angeles, CA 90025 (310)806-4434 I www.industrialrealtygroup.com