HomeMy WebLinkAboutConfirming Tax Abatement - CBK Land Development, LLC. 5233 Dlyan Dr. (10 Year Real Property)Attev
RESOLUTION
4406 -14
Passed by the Common Council of the City of South Bend, Indiana
November 10, 14
Presented by me to the Mayor of the City of South Bend, Indiana
November 12, 20 14
City Clerk
-e4zl—
dent of Common Council
Approved and signed by me `" 2, 20�
�J
City Clerk
RESOLUTION NO. q 00—
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
5233 Dylan Drive
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A TEN (10) YEAR REAL
PROPERTY TAX ABATEMENT FOR
CBK Land Development, 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 5233
Dylan Drive, South Bend, Indiana, and which is more particularly described as follows:
613.6' E.n. N.e. & 613.6'
E Side S.e.n.e Ex: 4.718 Ac to
State and Ex Irr Tract Nel/4 Nel /4
And ex Irr tract cont 5.26 ac +/-
18-38N-2E 9.155 ac tot
12/13 split to 025- 1010 - 017002
Per 1111301/08/09 missed and fixed in 2013
Split to 04- 1010 - 017001
00 -01 Split Trans 12204 2/9/1998
Annxd 06 -07 per Ord 9587 -05
09/10 Pt to Ptg Prairie Manor #2
10 /11 pt to ptg Prairie Minor 43
Beg 910.31' from the NW Y< of
38 2e thence Ne 345.46'
Thence Se 919.19 thence SW 958.27'
Thence Nw 731.96 thence Ne 445.17'
Thence Nw 187.23' thence Ne 167.04
To point of Beg cont 5.26 Ac +/-
Lot 1 Portage Prairie
Minor #2
RP 1732 04 -03 -08
and which has Key Numbers 025- 1010 -0170, 025- 1010 - 016902, and 025- 1010 - 017002 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 Real 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 Real property tax deduction for up to a period of ten (10) 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 et se q.
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 I� t
NOT APPROVED
,,ADOPTED
Filed 9 `:: °�s'� Office
,r<; 2 N14
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: Real Property Tax Abatement Petition for:
CBK Land Development, LLC
Dear Council Member Ferlic
Please find attached the Department of Community Investment's report on a real 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 construction of a distribution center as part of the
company's planned increase in productive capacity at 5233 Dylan Drive. The project cost is $4,885,376.
The report contains the Department's findings relative to the above petition. The project meets the
qualifications for a (10) ten -year real property tax abatement and a representative from CBK Land
Development, LLC 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
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
CBK Land Development LLC
DATE: October 6, 2014
On October 6, 2014 , a petition for real property tax abatement consideration for property located at 5233
Dylan Drive was filed with the City Clerk by CBK Land Development, 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, investigated the area, and makes the
following report.
PROJECT SUMMARY
Chase Plastics will be the tenant leasing from the ownership entity of CBK Land Development, LLC. The
ownership of these two entities are closely related.
Chase Plastics is a leading North American full- service specialty engineering thermoplastics distributor
serving plastic processors throughout North and Central America. This application is being made in
regards to Chase Plastic's desire to build a new distribution center which will support its operations. The
facility to be located in the Ameriplex at Interstate 80/90 project will be approximately 125,000 square
feet in size and located on 9.55 acre's in South Bend's l' District.
This location is exceptional for a distribution operation. Due to its close proximity to the intersection of
the Interstate 80/90 and US Highway 31, it allows Chase to transport goods in all directions in a very
South Bend Common Council
RE: Tax Abatement for CBK Land Development, LLC
October 6, 2014
Page 2
efficient manner. A new facility will allow Chase additional capacity for the storage of product and to
provide additional truck dock doors to gain functional efficiencies.
Taxes abated for the ten year abatement are $546,734. Taxes paid for the ten year term are $960,185
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create five (5) new, permanent full -time positions and
zero (0) part-time positions with an annual payroll of $143,000 by the end of 2019. In ten years the
project will create 13 jobs with a payroll of $400,000. The project will maintain 12 jobs with a payroll of
$430,000.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the Petitioner, CBK Land
Development, LLC has not been granted any previous abatements.
2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned
for the proposed project.
3. 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 (10) ten -year real property tax abatement under section 2 -75 Real Property
Tax Abatement General Standards.
City of South Bend
rl8%
�aa,
Petition for Incentives
A
Petition must include a $250 filing fee payable to the City Clerk's Office or online via the City's website at
http.Il southbendin .gov/govemmenticontentltmx batement before processing can be complete
V i
Legal name as registered with Secretary of CBK Land Development LLC ( Real Property); Chase Plastics ( Personal Property)
Ilibite
Business structure Limited Liability Company /Corporation
Companywebsite http: /Aw . chaseplastics.com/
Proposed Project Information
Proposed project address 78D (5233 Dylan Drive) Parent companyname Chase Plastics
City, State, Zip
South Bend, Indiana 46628
Legal owner Waggoner Farm Development, L.P.
Site acreage or acreage required
9.55 Acres
Is the real estate owned or Owned
Square feet of facility
Primary Contact Information
125,000 Square Feet
If leased by whom N/A
Primary company contact name
Robert Hoff
Title Business Process Manager
Address of company contact
6467 Walden Center Drive
Phone 248 - 620 -8302
City, State, Zip Clarkston, Michigan 48346
Email bhoff @chaseplastics.com
Senior Official
Company seniorof vial name Kevin Chase
Title President
Address of company contact (if different from Same as above
above) I
Phone 248 - 620 -2120
City, State, Zip Same as above
Consultant Information/Agent
Email kchase @chasePlastics.com
Hi red business consultan [/agent name Holladay Properties - Paul Phair
Co nsuhantreleam(Y /N) Yes
Address
227 S. Main Street, Suite 300
Local economic development partners
yes
approval N
City, State, Zip
South Bend, Indiana 46601 Email -
pphair @holladayproperties.com
Project Overview
Brief description ofyour
company, project, and why the
Chase Plastics is a leading North American full - service specialty engineering thermoplastic distributor serving plastic
processors throughout North and Central America. This application is being made in regard to Chase Plastics' desire to
property is necessary for
build a new distribution center which will support its operations. The facility, to be located in the Ameriplex at Interstate
econornkgrowth
80/90 project, will be approximately 125,000 square feet in size and located on 9.55 acres in South Bend's 1st District.
This location is exceptional for a distribution operation. Due to its close proximity to the intersection of the Interstate 80/90
and US Highway 31, it allows Chase to transport goods in all directions in a very efficient manner. A new facility will allow
Chase additional capacity for the storage of product and to provide additional truck dock doors to gain functional
efficiencies.
CHASE PLASTICS WILL BE THE TENANT LEASING FROM THE OWNERSHIP ENTITY OF CBK LAND
DEVELOPMENT LLC. THE OWNERSHIP OF THESE TWO ENTITIES ARE CLOSELY RELATED.
" Chase Plastics is also looking at possible site locations in Elkhart as well as South West Michigan as these locations
would still be in close proximity to the majority of the existing Chase employee base.
Certified Technology Park appropriate
No
Community Revitalization Enhancement
District
No
Certify that the Building Permit has not been
Yes
Number of residential units created by
Issued trial
call
an
None
If this is Petition for personal property tax abatement has
the equipment been installed
No
s¢ mtrastructure annals (Ell Has any 506 funding been What is the value of any equipment hel .
site of project in dollars) rece ived? Indiana for the project?
No I No I I I MT 13 M14 11
CITY CLERIC, SOUTH BEND, IN
New Pro6ect Investment
Calendar Year 14
Land Acquisition $ 477,500
Building Lease Payments
Building Purchase Costs
New Building Construction
Existing Building Improvements
New Machinery & Equipment
Special Tooling/Retooling
New Furniture /Fixtures
New Computer /IT Hardware
New Software
On -she Rail Infrastructure
On -sRe Fiber Infrastructure
TOTAL
Full-Time Permanent Indiana-Resident Positions
Calendar Year lobsretained Toblhouriy
wage w/o
fringe or
bonuses
2015
2016
1
1 18
2019
2020
2021
$ 4,885,376
$210,000
$40,000
576,500
$20,000
$90,000
$20,000
$40,000
$15,000
$45,000
$15,000
$15,000
$10,000
$30.000
$10,000
by Calendar Year
Cumulative# of net NEW
permanent jobs created
full time
at project
Hourly average wage, w/o
benefits or bonuses, of
cumulative net newjobs
Total training
expenditure-
not
cumulative
Total #to be
trained -not
cumulative
2014
2015 1
13.00
2016 2
14.50
2017 1
13.25
2018 0
13.50
2019 1
13.50
2020 2
14.85
2021 1
13.75
2022 1
14.00
2023 1
14.00
2024 2
15.00
2025 1 14.25
Full time Part time
Laborers
13.00
Technical
Managerial
Administrative
15.00
Who will a the individual responsible for coordinating cart
WorkOne on recruiting?
Gusting Sell and Mike Hall
Does your company have an EEO hiring policy? Yes
Are you an EEO employer?
Yes
-
three the last
Year 2014
4
-
Please describe your comm- itmentto
diversity and inclusion by detailing your
2013
2012
outreach and recrultment efforts for the last
three years as well as current polidM.
Full Tlme
Part Inme
Full Time
Part7me
Fuli Time
Part7me
Black 4
4
2
Hispanic 1
Asian
Indian
Female 3
3
3
Other
Complete below ..-
Please sign for all requested incentives.
Public Benefit Item:
Information is required on both the construction companies and the
companies which will provide materials purchased for this project.
Please complete the table below with the appropriate information. If
you qualify for the points, please enter the full amount of available
points.
Qualify
(yes or No)
Earned Points
Available Points
1
Construction Related lccntractorsl:
A.
Employ Local Companies (7591)
Yes
20
20
B.
Purchase Materials from Local Companies (75 %)
Yes
20
20
C.
Require Employees vs. Independent Contractors
Yes
19
19
D.
Require Prevailing Wage (Davis Bacon)
No
22
E.
Require Health Benefits
No
22
F.
Require Pension Benefits
No
18
G.
IMaintain Affirmative Action Plan
No
20
Sub -total Construction Related:
59
141
2
Wage & Benefit Related IOwnern
A.
Pay Target Wage Levels
Yes
33
33
B.
Provide Health Benefits
Yes
34
34
C.
Provide Pension Benefits
Yes
29
29
D.
Provide Training
Yes
28
28
E.
Provide Child Care
No
15
F.
Provide Transportation Assistance
No
14
G.
I Provide Employer Assisted Housing program
No
9
Sub -total Wage & Benefit Related:
124
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
No
34
Sub -total Workforce Related:
83
152
4
Support a Municipal Facility:
A.
Support a SB Municipal Facility (donations to the
zoo, conservatory, museum, etc.)
Yes
84
84
Name of Facility
Sub -total Municipal Facility:
84
84
Sub -total from Above:
350
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 areal and /or personal property tax abatement consideration and pursuant to I.C., 6.1.1. 12.1.1, et secs, and
South Bend Municipal Code Sec. 2 -76 et seq, for this petition state the above.
- .: Robert Hoff
What is the current assessed value?
Real Property:
$50900
Personal Property:
0
What is the projected assessed value?
Real Property:
$4,885,376
Personal Property:
What is the tax key number for this project?
025-1010-0170; 025-1010-016902; 025-1010-017002 (to be subdivided in one legal lot)
What is the six digit NAICS code?
424610, Foam, plastics, resins and shapes, merchant wholesalers
Please attach a Google map and street view of the location.
See Attached
Please list the amount of real and personal property taxes
paid for the last five years when applicable.
Real Property Taxes:
Personal Property Taxes:
Year One
$1141
YearTwo
$1,239
Year Three
$1,407
Year Four
$1,524
Year Five
$1,639
Staff Use Only
Please fill out the Public Benefit Summary Information and
L.r NJ
add to the total from above.
ints Points
Public Benefit Item:
Rmkq telated:
5
A.
Redevelop a Site that has Special Needs
No
49
B.
Develop Based on Local University Research
No
35
C.
Achieve a Physical Element of a Plan
Yes
36
36
Sub -total Project Related:
36
120
6
Super
Size Projects (point values are cumulatmel:
Yes
25
25
A.
100% to 199%
B.
200% to 299%
Yes
68
68
C.
300% to 399%
Yes
65
65
D.
400% and Over
Yes
52
52
Sub -total Super Size Projects:
210
210
7
Pay for Municipal Infrastructure:
A.
Pay for Oversizing or Upgrading
Yes
14
14
B.
Pay for 26-50% of Extension Cost
Yes
26
26
C.
Pay for 51 -75% of Extension Cost
Yes
39
39
D.
Pay for 76 -300% of Extension Cost
Yes
52
52
Sub -total Infrastructure Related:
131
131
Total from Applicant Section:
350
539
Total from Staff Section:
377
461
Total Public Benefit Points:
727
1000