HomeMy WebLinkAboutConfirming Tax Abatement - Noble Americas South Bend Ethanol LLC 3201 W. Calvert St. (5 Year Personal Property)Attest:
RESOLUTION
4340 -14
Passed by the Common Council of the City of South Bend, Indiana
April 14,
14
2Q_..
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
April 15, 20 14
Approved and signed by me AP A IL, I S 20 1 it .
0
City Clerk
EWA
RESOLUTION NO.
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
3201 WEST CALVERT STREET
TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
NOBLE AMERICAS SOUTH BEND ETHANOL LLC
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Economic Revitalization
Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as 515 West
Ireland Road, South Bend, Indiana, and which is more particularly described as follows:
Vac Sunset Pk SE'/ Ex
Pt Sold to City S & Adj
& Mid Pt S 1/2E of Rr
Cont 61.834 Ac +-
See 16 -37 -2e
and which has Key Number 71- 08 -16- 400 - 002.000 -026 be designated as an Economic
Revitalization Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing
before the Council has been published pursuant to Indiana Code 6 -1.1- 12.1 -2.5; and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the
area described herein as an Economic Revitalization Area for the purposes of tax abatement.
Such designation is for Personal property tax abatement only and is limited to two (2) calendar
years from the date of adoption of the Declaratory Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is qualified for
and is granted Personal property tax deduction for a period of (5) five years as shown by the
attachment pursuant to Indiana Code 6 -1.1- 12.1 -17 , and further determines that the petition
complies with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana
Code 6- 1.1 -12 et SeMc .
SECTION III. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approved by the Mayor.
PRESENTED ` -4�-4
NOT APPRO,yEd
ADOPTED 4— —t
Filed in C es@s°s ice
JOHN VueRor.
CITY CLERK, SOUTH SEND, IN
Council Member Gavin Ferlic, Chairperson February 7, 2014
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition
Noble Americas South Bend Ethanol LLC
Dear Council Member Ferlic:
Please find attached the Department of Community Investment's report on a personal property tax
abatement petition for the above - referenced petitioner. Also attached is a copy of the petition, Statement of
Benefits form, and supporting information. The project calls for the acquisition and installation of new
equipment. The project cost is $2,425,000.
The equipment costs for two years are $2,425,000. The project meets the qualifications for a (5) five -year
personal property tax abatement A representative from Noble Americas South Bend Ethanol LLC will be
available to meet with the Committee on Monday, February 24, 2014.
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 -9339.
Sincerely,� L ✓/
Brock Zeeb
Director Economic Resources
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION
Noble Americas South Bend Ethanol LLC
DATE: February 7, 2014
On December 3, 2013 a petition for personal property tax abatement consideration forproperty located at
3201 W Calvert Street, South Bend, was filed with the City Clerk by Noble Americas South Bend, LLC.
Pursuant to Chapter 2, Article 6, Section 2 -84.2 of the Municipal Code of the City of South Bend, this
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 I.C.6 -1.1 -12.1 and whether all zoning requirements have been met.
The Department of Community Investment has reviewed the petition (a copy of which is attached),
investigated the area, and makes the following report.
PROJECT SUMMARY
Noble Americas South Bend Ethanol LLC (NASBE) is a large scale ethanol production facility
located in South Bend capable of producing up to 100,000,000 gallons of ethanol per year. The
project will involve restart, re- commissioning, significant upgrades, and subsequent operations of this
facility after being idle since November 2012. Upgrades would include substantial maintenance and
capital expenditure activities as well as installation of incremental on -site projects to improve and
stabilize the operations of the facility.
RE: Tax Abatement Noble Americas South Bend Ethanol LLC
December 6, 2013
Page 2
South Bend Common Council
From 2013 through 2015 the company plans to spend $11 M on new building construction, $9 M on
existing building improvements, $2 Mon new machinery and equipment, and $875,000 on IT equipment
and software. They have plans for investment going out five years. Because the designation given by the
designating resolution only extends out for two years they will need to reapply for abatement at the end of
those two years for the next two years. The overall cost over 5 years will be $36,175,000.
Total taxes to be abated during the (5) five -year abatement personal property period for Phase I are
estimated at $102,898. Total new taxes to be paid over five years are estimated at $208,639. Net tax paid
is estimated at $105,741.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create 50 permanent, full -time and 0 (zero)
permanent, part-time jobs within the first year, representing a new annual payroll of $2,808,000.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or
associated with any previous tax abatements:
2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned
for the proposed project.
3. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the
qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible
Personal Property Tax Abatement. They also qualify for a three year real property abatement.
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State......._._._
...: ._....._.._...: .: Noble Americas South Send Ethanol LLC
BusNettsWUtuie
LLC .
Compairywebdte
www.thisisnoble.com
Proposedprojectaddress
3201 W Calvert Street Parem wmpanyname
Noble Americas Corp
Qry,State,
Zip
South Bend, IN, 46613
Legalowner
-
Noble Americas Corp
Site acre ageoracreagerequired
Is the real estate ownedor
06- 1466543
Square feet of /adliry,
Ifleuetl by whom
Joseph Limone
Title Secretary
Primarycomparrywntact name
Address of company contact
107 Elm Street, 7th Floor
Phone 203.324.SSSS
Chy,State, Zip Stamford, CT, 06902
Email
jl @thisisnoble.com
ffile
Secretary
Companyseniorof cal name
Joseph Limone
Address ofcompanywnbct (lftiNuetn from
3201 W Calvert Street
phone
above
203.324.SSSS
Ctystate, Zip South Bend, IN, 46613
Email
jl@thishnoble.com
Hired business wnsultantlagerr name
Consultant release approval
Address
toatecon•mkdwetapment
partners releueapp,oval
City,Siate,2ip
Eman
.y�
Brie /desMptlon ofYOUr
company, project, and why the
Noble Americas South Bend Ethanol LLC ("NASBE ") Is a large scale ethanol production facility located in South
property is necessary for
Bend, IN, capable of producing up to 100,OODoOO gallons of ethanol per year. The project will involve restart,
econo nkfirowth
recommissioning, significant upgrades and subsequent operations of this facility after being idle since November
2012. Upgrades would Include substantial maintenance and capital expenditures activities, as well as Installation
of incremental onsite projects to Improve and stabilize the operations of the facility.
Cerdfied tech n eiogy Park appropriate?
No
Community Revitalization Enhancement
District?
No
Certify that the Building Permit has not been
issued lYesJNO)
No
if this isa petition forpersonalpropertytax
abatement,has theequipment been lnstaBel?
NO
9 VO? , vov
:.. ... ., a _. a .f•.,: ..:.. .',: a;S �,r,"�- s- „- v,.'tb 'sue :•':T ;?•�.
Public Infrastructure needs (OH- Has any Sine funding been What is the value ofany equipment being purchased in What lithe value ofanyequipment being
site of project) receiued7 Indiana for the projea7 purchased from out ofstate for the project?
$000000
Hourly average vago, w/o
Totaltralnln6 Total Ytobe
Calendar Year
Jobs retained
Total hourly
Cumulativelt of net NEW full time
wage w/o
permanent jobs created at project
benefits "bonus”, of
expenditure- trained -not
/ring¢ or
m
cuulativenMnewjobs
not cumulative
bonuses
cumulative -
Now
0
0
fMr ss:..:.r�
_ :3i • _. x.
27
250,000 35
zole
50
2016
2016
2037
2018
2019
2020
2021
2022
2023
207A
Provide hou'ty wage Information for newemployeas in the Wllawingposabns.
Full time rt
P
Part Nme
• laborers
98
5
Technical
$34
$
Managerial
9
$
Administrative $16
5
Who will be the individual
respombkfyrwori�eift"alli
Melissa TraffaS,(ICM Inc.)
fVakOneanr[adtl0{A :.
OxsyetvgooJpatsybareanD .�htringpoagi
AnyooadttE�eaoplgMYt.:.
Yes
Yes
For Staff Use Only Below This Line
ktVtearmait�ne.v�peT _:,
WhatBtlsepaoJectedanettedvgtae? RWProperty: PatseiWPa.partyc
25
WlwtkmetgiteynunibstwthkyreJeN
Whatkthes6tdigitNAlC5wde7
Please attach a Googkmap and street viewofthe location.
Please lift t e amount of Maine personal property axes
aid for the fast five ears when, riri6le.
Real Property Taxes:
Personal Property Taxes:
Year One
YearTwo
D. 1400% and Over
Year Three
Year Four
Yearfive
riease nn out me Tomwmg Public Benefit Summary Information and add to totalfrom above.
-Quality Earned Available
Public Benefit Item:
S A. Redevelop a Site that has Special Needs
49
B. Develop Based on Local University Research 35
C. Achieve a Physical Element of a Plan
36
Related:
120
A. 100% to 199%
25
B. 200% to 299%
68
C. 1300% to 399%
65
D. 1400% and Over
52
Sub -total Super size Projects: 0 210
7 Pav for Municipal Infrastructure:
A. Pay for Oversizing or Upgrading
ff26
0. Pay for 26-50% of Extension Cost
C. Pay for 51.75 %of Extension COSt
D. Pay for 76- 100% of Extension Cost
131
Total from Applicant Section: 256
539
Total from Staff Section: p
461
Total Public Benefit Points: 256 not