HomeMy WebLinkAboutConfirming Tax Abatement - Mack Tool & Engineering, Inc. 2820 Vridian Dr. (5 Year Personal Property)Attes
RESOLUTION
4404 -14
Passed by the Common Council of the City of South Bend, Indiana
November 10,
14
20 .
Presented by me to the Mayor of the City of South Bend, Indiana
November 12,
20 14
City Clerk - T
dent of Common Council
Approved and signed by me� 20 .
City Clerk
RESOLUTION NO. q'�04"(
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
2820 Viridian Drive
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
MACK TOOL & ENGINEERING, INC.
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
1902 West Sample Street, South Bend, Indiana, and which is more particularly described
as follows:
Beg. 1242.51' W Ne Cor Se '' /4
Sec 28 -38 -2e On S Line
Boland S 293' W 260'
N 293' E 260' To
Pob 1.75 Ac
and which has Key Number 025- 1010 - 040029 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 five (5) years as shown
by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17 and further determines that the
petition, the Memorandum of Agreement between the Petitioner and the City of South
Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal
Code of the City of South Bend and Indiana Code 6- 1.1 -12 gt seq.
SECTION III. This Resolution shall be in full force and effect from and after its adoption
L y the Common Council an d approved by the M ° °^
PRESENTED l
MOT APPRO.,
nnoeli i3'
Red 1�fflce
CITY CLFN[ ,
227 W. JEFFERSON BOULEVAKD
SUITE 1400 S.
SOUTH BEND, IN 46601.1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
Council Member Gavin Ferlic, Chairperson October 6, 2014
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Personal Property Tax Abatement Petition for:
Mack Tool & Engineering, Inc.
Dear Council Member Ferlic:
PHONE: 574/235 -9371
FAx: 574/235 -9021
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 as part of the company's planned increase in productive capacity in its
facility located at 2820 Viridian Drive.
The report contains the Department's findings relative to the above petition. Mack Tool & Engineering,
Inc. will be purchasing and installing new equipment. The total project cost for the equipment is
estimated at $1,950,000. The project meets the qualifications for a (5) five -year personal property tax
abatement and a representative from Mack Tool & Engineering, Inc. will be available to meet with the
Committee on Monday, October 27, 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,
Brock Zeeb
Director Economic Resources
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITM KAPJ PAMELA C. MEYER CHRIS FIELDING DONALD E. INKS
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
Mack Tool & Engineering, Inc.
DATE: October 6, 2014
PHONE: 574 /235 -9371
FAX: 574/235 -9021
On October 6, 2014 a petition for personal property tax abatement consideration for property located
at 2820 Viridian Drive, South Bend, is filed with the City Clerk by Mack Tool & Engineering, Inc.
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
Mack Tool produces precision machined parts for the aerospace and medical industries. Part types
include: Surgical Instruments, Hydraulic and Fuel Manifolds, Actuation Cylinders and Pistons,
Matched Solenoid Valves, Gear Boxes, and Avionics Housings. Mack Tool relies on CNC
Equipment to increase the productivity of its workforce and allow it to be competitive in a global
market. Due to the increasing global demand for commercial airplanes, the aerospace industry is
projected to more than double in the next five to ten years. In order to grow and stay competitive
Mack Tool must continue to invest in equipment. The project cost for the new equipment for two
years is $1,950,000.
October 6, 2014
Page 2
South Bend Common Council
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITM KAIN PAMELA C. MEYER CHRIS FIELDING DONALD E. INKS
Total taxes to be abated during the (5) five -year abatement period are estimated at $79,349. Total
taxes to be paid over five years on the new equipment are estimated at $88,360.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will: (a) create 35 permanent, full -time and 0
permanent, part -time jobs within the first five years, representing a new annual payroll of $1,456,000
and (b) will maintain 60 existing permanent full -time and 0 (zero) existing part-time jobs representing
an annual payroll of $3,000,000 for existing employees.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has been granted or
associated with two (2) previous five year personal property tax abatements: 3586 -06 and
3361 -04.
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 South Bend Redevelopment designation areas finds that the property is located
in the Airport Economic Development Area.
4. 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.
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1 General information Project Name Mack Tool Expansion
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y MACK TOOL It ENGINEERING, INC
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Proposed Project Information
Propo'i;�fpro(e2j.�rpet `;.�4,'*s. „%'8sa; 2820 VIRIDIAN DRIVE @jr� oo ^14 'P'''
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:Pri ary Contact Information
�� 2r ?8�y PAUL FiARTZ
� PRESIDENT
Address= ofcdrnpanr fq,Rfaa, `^ i 2820VIRIDIFW DRIVE
-_ 1 A +ova i >�ust: -,,,I .:,
` 574. 233 -6424
City inle �* ^tx ""t
��1-� r.., , � SOUTH BEND, IN 46628
� PAUL.HARTZQMACKiOOL.COM
Senior Official Information
ComWnl.Jenlor bffldifha r'T4`37'� + ^
.,::; PAUL HART2
: -- PRESIDENT
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. 2820 VIRIDIAN DRIVE
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$74- 233-8424
clry kbte,2ip SOUTH BEND, IN 46628
Consultant Information/Agent
PAUL.HARTZOMACKTOOL.COM
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Project Oveiwiew
Brief desWpdbn ofyour
e^rnW^Y: wolect and why the
Mack TOOT produces precision machined pans for the aerospace and medical Indusaiss. Pan types Inciude: Su i
fg'cal
-'
Instruments. Hydmu6c and Fuel Manirolds, Actuation Cylinders and Pistons, Matched Solenoid Valves, Gear Boxes, and
propettYtt ^eeeswryVor;-
Avionics Housings. Mack Tool relies on CNC equipment to Increase the productivity of as workforce and allow it to be
ewnornty {rpwtll -"
competitive in a global market. Due to the increasing global demand fof commercial airplanes. the aerospace Industry is
--
projected to more than double in the next two to ten years, in order grow and stay wrnpetitive, Mack Tool must continue to
-.
Invest in equipment.
CerdBe l Tedrnolaay park' be
Community ResnbTnatWriEihanument :'
Certify dbt theDUgding Peimhbasnotleen . -
if this Iii petltlon brpersensl property a)(abatement,las
. the in`entbeealnsbtled
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