The URL can be used to link to this page

Home My WebLink AboutWaiving Required Filing Date & Acceptance of the Deduction Application McCormick & CompanyRESOLUTION 4281 -13 Passed by the Common Council of the City of South Bend, Indiana September 9, 13 20 Attest: Presented by me to the Mayor of the City of South Bend, Indiana September 10, 20 13 City Clerk President of Common Council Approved and signed by me S i PT f�"� R £ 20 13 City Clerk RESOLUTION NO. q ZJV1—(J A RESOLUTION WAIVING THE REQUIRED FILING DATE OF MAY 15, 2013 AND ACCEPTANCE OF THE DEDUCTION APPLICATION OF THE LATE FILING OF DEDUCTION APPLICATION FOR THE NEW REAL PROPERTY ADDITION LOCATED IN AN ECONOMIC REVITALIZATION AREA FILED UNDER RESOLUTION 4077 -11 FOR MCCORMICK AND COMPANY, INC. LOCATED AT 3425 W. LATHROP DRIVE Whereas, The State of Indiana, County of St. Joseph, Adopted by the Common council of the City of South Bend, Indiana commonly known as 3425 W. Lathrop Drive, South Bend, Indiana had adopted Resolution 4077 -11, pursuant to Indiana Code 6 -1.1 -12.1 to be an economic revitalization area for purposes of an eight (8) year real tax abatement for McCormick and company, Inc. Whereas, Resolution 4077 -11 was presented and adopted by the Common Council on January 24, 2011. Whereas, Ms. Deidre Cassidy, Director of State and Local Tax for McCormick and Company, Inc. states that the Application for Deduction from Assessed Valuation for New Manufacturing Equipment in Economic Revitalization area (Form 322) was never received by McCormick and Company, Inc. Whereas, the Auditor's Office states that it has never received the required Form 322. Whereas, the tax bill which was to have been 100% abated results in a tax being due of Now, therefore be it resolved by the Common Council of the City of South Bend, Indiana as follows: SECTION 1. The petitioner has presented testimonial evidence of the following facts in support of this resolution: A. The Department of Community Investment Department cannot find the required Form 322 in the department files. B. The stated property cannot afford this large tax bill at the present time. The 2012 taxes payable 2013 would be $44,844.34 with the abatement and $117,742.72 without the abatement. C. McCormick and Company, Inc has met or exceeded all financial goals stated in their original petition for a tax abatement. The initial cost of the project was estimated to be $5,894,948 and the actual cost was $7,721,643. The company committed to creating five (5) new permanent full time jobs with a payroll of $177,240 and they have created twelve (12) additional jobs with a payroll of $545,958. The company was to retain one hundred twenty -three (123) jobs with a payroll of $6,288,000. They have retained one hundred twenty -three (123) employees with a payroll of $5,596.069. D. The project is an outstanding asset to this community. E. The tax abatements received from the City of South Bend play a key role in the company's decision to invest in the City of South Bend. F. All other required documentation has been received from McCormick and Company, Inc. by the required due dates. SECTION II. The foregoing facts, taken together, lead the Common Council to conclude that compelling reasons exist to waive the filing deadline. Section III. The Common Council hereby waives the filing deadline of May 15, 2013 and pursuant to Indiana Code 6 -1.1- 12.1 -4.8 adopts this resolution that authorizes acceptance. PPESENTW, dam` O-A. ;kPPROVED Member of - • • (founcil Filed in Office SEP - 3 2013 CITY CLERIC, SOUYH SEND, IN TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 13 -61 A RESOLUTION WAIVING THE REQUIRED FILING DATE OF MAY 15, 2013 AND ACCEPTANCE OF THE DEDUCTION APPLICATION OF THE LATE FILING OF DEDUCTION APPLICATION FOR THE NEW REAL PROPERTY ADDITION LOCATED IN AN ECONOMIC REVITALIZATION AREA FILED UNDER RESOLUTION 4077 -11 FOR MCCORMICK AND COMPANY, INC. LOCATED AT 3425 W. LATHROP DRIVE This bill was heard by the Community Investment Committee. Karen L. White Chairperson, Committee of the Whole 227 W JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1 830 August 20, 2013 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Real Property Tax Abatement Petition for: McCormick & Company, Inc. Dear Council Member Ferlic: PHONE: 574/235 -9371 FAX: 574/235 -9021 McCormick & Company, Inc..was approved for an eight year real property tax abatement on January 24, 2011 through resolution number 4076 -11. The resolution which was sent to the petitioner by the City Clerk's office was numbered Resolution 4076 -10. In August of 2010, Bob Mathia did send a letter to the petitioner referencing the necessity to file a Form 322 to insure that the petitioner would receive an abatement but it was sent for Resolutions 4038 -10 and 4049 -10 which were for the project before McCormick & Company, Inc. decided to upgrade their project. A form 322 was not sent out by Mr. Mathia pertaining to Resolution 4076 -11. The filing deadline for Form 322 was May 15, 2013. The petitioner did not file a Form 322. The petitioner maintains that they did not know they had to file a Form 322 for Resolution 4076 -11. The company is requesting a resolution from the Common Council waiving the filing date for the Deduction Application. A representative of the company will be available to meet with the Committee on Monday, September 9, 2013. . To accomplish this request, a tax abatement recipient must notify the Council in writing. Attached you will find a letter from the company's representative, Deidre Cassidy, Director of State and Local tax, requesting the waiver. 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 235 -9278. Sincerely, 061�, E� 1 Kathy Ha Economic Development Specialist Attachments c: South Bend Common Council Members Mayor Pete Buttigieg Sco PLANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C. MEYER DONALD E. INKS Dave Relos Chris Fielding m McCORMICK & COMPANY INC. 18 LDVETON CIRCLE, SPARKS. MD 21152- 6000 USA /TEL (410) 771 -7301 FAX 1410) 771 -7462 August 19, 2013 To Whom It May Concern': McCormick and Company, Inc. (McCormick) respectfully requests that the Common Council of South Bend consider a "Waiver of Non Compliance" for the non - filing of Form RE 322 for a real estate tax abatement related to Resolution #4077 -11. We are requesting this waiver because we were not aware of the need to file Form RE 322 and had we known we were supposed to file Form RE 322, we would have filed the form in a timely manner. McCormick did receive a letter form Bob Mathias dated August 3, 2010 related to Resolutions No. 4038 -10 and 4039 -10 stating that a number of forms including the RE 322 would need to be filed pertaining to these Resolutions. Soon after these approvals McCormick began to consider expanding the project to be a much larger undertaking. McCormick later submitted new paperwork for the expanded project which then went before the Common Council January 24, 2011. This paperwork generated a new file and new Resolution numbers. The approvals related to the earlier projects (Resolutions No. 4038 -10 and 4039 -10) were disregarded at that time. New Resolution numbers were issued in February of 2011, 6 months after the earlier project approvals. There was no additional letter that McCormick received related to the updated Resolutions. For McCormick's filing purposes, the letter that was received from Bob Mathias back in August of 2010 was filed with the paperwork related to the prior resolutions and was not included with the file that included the new Resolution #4077 -11 that we are discussing here. Additionally, it has come to our attention that the City issued an incorrect resolution number at that time and the Resolution we received was Resolution #4077 -10 which we have now learned should have been Resolution #4077 -11. Below is a description of the Project referred to in this request: Pro'ect Summaa of Resolution 4077 -11 In February 2011, McCormick applied for a real property tax abatement based on our consideration of South Bend for a possible expansion. The Common Council approved an eight (8) year tax abatement for McCormick for a 75,000 square foot expansion to our manufacturing facility located at 3425 West Lathrop Drive in South Bend. The estimated investment in the facility at that time was $5,894,948 and McCormick committed to creating five (5) new, permanent full time jobs with an estimated annual payroll of approximately $177,240. McCormick also promised to retain the one hundred twenty three (123) existing, permanent full -time jobs. Total future estimated annual payroll Would, be approximately $6,288,000. McCormick completed this project in at the end of2012 with a total investment of $7,721,643. We created an additional twelve (12) jobs totaling one hundred and thirty- five (135) permanent full -tune jobs with an annual payroll of $6,140,027. McCormick worked very closely with the South Bend Common Council when they were considering expanding in IN for this project. The tax abatements we received from the City of South Bend play a key role in our decision to invest in the State of Indiana and the City of South Bend. McCormick is constantly growing and expanding and would like to consider IN as a passible location for future investments and expansions as well. Thank in advance for your understanding in this matter. If you have questions, please feel free to contact me at 410 -771 -7381. ,—Sincerely, _ K�(i De i e Cassidy Director of State and Local Tax