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Home My WebLink AboutConfirming Tax Abatement - USF Holland, Inc. 5550 Cleveland Rd. (6 Year Real Property)RESOLUTION NO. 2853 -00 Passed by the Common Council of the City of South Bend, Indiana March 27, Attest: 2E Presented by me to the Mayor of the City of South Bend, Indiana March 28, 20 00 City Clerk President of Common Council City Clerk Approved and signed by me March 29, 20 00 . 0 RESOLUTION NO. %S S 3 -Ob A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS: 5550 CLEVELAND ROAD TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A 6 (SIX) YEAR REAL PROPERTY TAX ABATEMENT FOR USF HOLLAND, 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 know as 5550 Cleveland Road, and which is more particularly described as follows: A part of the Northwest quarter of Section 20, Township 38 North, range 2 East, German Township, St. Joseph County, Indiana, described as follow: Commencing at the Northeast corner of said quarter section; thence S 00`48'35" E. along the East line of said quarter section 1773.14 feet (1758.34 feet deed): thence S 89'34'08" W, 30.00 feet (S 89'11'25" W Deed) to a point on the West right -of -way line of Mayflower Road and the point of beginning of this description; thence S 89'32'43" W, 564.69 feet meas. (West 594.00 feet deed) along the right -of -way of the Indiana Toll Road; thence S 00'I I' 18" E, 206.53 feet meas. (South, 206.63 feet deed) along the Indiana Toll Road right -of -way; thence S 89'38'41" W, 1361.44 feet meas. (West, 1361.3 feet deed) along the Indiana Toll Road right -of -way; thence N 00'43'34" W, 893.34 feet meas. (North, 875 feet deed); thence N 89'33'38" E, 257.96 feet meas. (251.84 feet deed) to the Southerly right -of -way of Cleveland Road by -pass; thence around a 1532.05 foot (1532.39 foot deed) radius curve to the left an arc distance of 528.07 feet (507.71 feet deed) to the end of a chord which bears S 67'41'32" E, (S 68'04'30" E deed) having a distance of 525.46 feet (505.39 feet deed) S 77'34'00" E, 1144.87 feet deed S 39'09'52" E, 115.08 feet meas. (116.17 feet deed) to the West right -of -way line of Mayflower Road; thence S 00'48'35" E. 140.60 feet meas. (125.32 feet deed) the point of beginning. Containing 26.312 acres more or less subject to all legal highways, easements and restrictions of record. and which has Key Number 25 -1018 0618, 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 a period of six (6) years, 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 sea. 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 NOT APPROVED ADOPTED 3 _21_ Oa Member of the Common C ci Filed In Clerk's Office MAR 0 8 2000 LORETTA S. ?9UDA MYCLERN.. ' j ^. 9END, N, 1200 COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 -1830 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT JON R. HUNT ANN E. KOLATA EXECUTIVE DIRECTOR DEPUTY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: CASSANDRA MORAN SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: USF HOLLAND INC. 5550 Cleveland Road DATE: March 7, 2000 PHONE 219/235 -9371 FAX 219/235 -9021 TDD 219/ 235 -5567 On February 28, 2000, a petition for tax abatement consideration for real property located at 5550 Cleveland Road was filed with the City Clerk by South Bend Redevelopment Commission on behalf of USF Holland Inc. Pursuant to Chapter 2, Article 6, Section 2 -77 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community and Economic Development 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 -1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petition (a copy of which is attached), investigated the area and makes the following report. PROJECT SUMMARY USF Holland is a less than truck load carrier providing logistics and just in time trucking operations supporting its customers throughout the United States and beyond. The petitioner proposes to construct a terminal facility between Cleveland Road and the Indiana Toll Road. The project is estimated to cost $6.0 million and reflects the need for expansion of the existing South Bend operations to accommodate the rapid growth of the company. REDEVELOPMENT BUSINESS ASSISTANCE FINANCIAL SL PROGRAM BUREAU OF HOUSING PLANNING & NEIGHBORHOOD ANN E. KOLATA & DEVELOPMENT MANAGEMENT KATHRYN BAUMGARTNER DEVELOPMENT 219/235 -9371 DONALD E. INKS ELLZABETH LEONARD 521 ECLIPSE PLACE PAMELA C. MEYER 219/235 -9335 219/235 -9335 219/235 -9475 219/235 -9660 FAX: 219/235 -9469 FAX: 219/235 -9697 South Bend Common RE: Tax Abatement March 7, 2000 Page 2 Council for USF Holland Inc. EMPLOYMENT IMPACT Per the petition, it is estimated that this project will create 25 -30 new, permanent, full time jobs within the first year, representing a new annual payroll of $1.3 - 1.5 million and will maintain 299 existing permanent full -time and two (2) part -time jobs representing an annual payroll of $15,300,000. over two (2) years we anticipate that approximately 45 new jobs will be created, which, after two years seniority, will pay an average wage of $52,000. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been granted one previous tax abatement. Term /Type Resolution No. Date 5 year real property R21 -89 08/12/97 *Note: This abatement was granted by the St. Joseph County Council 2. The building commissioner has reviewed the petition and has found the property to be properly zoned for the proposed use. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petition for real and personal property tax abatement must first be approved by the South Bend Redevelopment Commission. The Redevelopment Commission will consider this abatement at their regularly scheduled meeting on Friday, March 3, 2000. 4. A review of the Tax Abatement Ordinance (no. 8065 -90) finds that the petitioner meets the qualifications for a six year real property tax abatement under Section 2 -83 (Warehouse Development City- Wide). Tax Abatement Schedule prepared for: USF HOLLAND INC. South Bend Portage Township 6 Year Real Property Abatement Schedule* 29- Feb -00 Total estimated Project Cost: $6,000,000 Base Assessed Value: $2,000,000 (for assessed value - assume 1/3 of project cost) Assume constant tax rate of: 17.9396 Assume constant SRTC of: 15.6332 Assessed Gross Less Net Percent Tax Tax Year Value Tax SRTC Tax Abated Abated Paid 1 $2,000,000 $358,792 $56,091 $302,701 100% $302,701 $0 2 2,000,000 358,792 56,091 302,701 85% 257,296 45,405 3 2,000,000 358,792 56,091 302,701 66% 201,801 100,900 4 2,000,000 358,792 56,091 302,701 50% 151,351 151,351 5 2,000,000 358,792 56,091 302,701 34% 102,918 199,783 6 2,000,000 358,792 56,091 302,701 17% 51,459 251,242 $1,816,208 $1,067,527 $748,681 Total Taxes Due During Abatement: $1,816,208 Total Taxes Abated During Abatement: $1,067,527 Total Taxes Paid During Abatement: 748,681 * - This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. Filed In Clerk's 0 l ice MAR 0 8 2000 j IANETfA J. Ixli;/ WYCLENK, so Ii ru;, s