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HomeMy WebLinkAboutConfirming Tax Abatement - Kruk Electric, LLC 3702 W. Sample (5 Year Personal Property)Attest: RESOLUTION 4444 -15 Passed by the Common Council of the City of South Bend, Indiana May 26, 15 20_. Presented by me to the Mayor of the City of South Bend, Indiana May 27, 20 15 City Clerk President of Common Council Approved and signed by me Fa+e y 'rj 0 IeA W4U 205.E. City Clerk RESOLUTION NO. l V -A A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3702 W. Sample, South Bend, IN 46619 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Kruk Electric, 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 3702 W. Sample, South Bend, IN 46619 and which is more particularly described as follows: Business Personal Property and which has Key Numbers to be assigned 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 et se . 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. Member of the Common Council NOT APPQOVA , rm S Filed in Cioas r.'s Office E Y 2 0 2015 JOHw VOO"lix CITY CLERK, SOUTH FEND, IN 227 W. JEFFERsoN BOULEVARD SUITE 1400 S. SouTEBEND, IN 46601 -1530 May 4, 2015 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: Personal Property Tax Abatement Petition for: Kruk Electric, LLC Dear Council Member Ferlic: PHONE: 574235 -9371 FAx: 574235 -9021 Please find the attached information pertaining to a personal property tax abatement petition for Kruk Electric, LLC.: ➢ Department of Community Investment's summary report ➢ Copy of the petition ➢ Statement of Benefits form ➢ Supporting information. The report contains the Department's findings relative to the above petition. Kruk Electric, LLC will be purchasing and installing approximately $175,000 of new equipment to expand their production capabilities. The project meets the qualifications for a (5) five year personal property tax abatement and a representative from Kruk Electric, LLC will be available to meet with the Committee on Monday, May 11, 2015. 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 EcoNOMICRESOURCES JIHN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEES TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: Kruk Electric, LLC DATE: May 6, 2015 On Monday, May 4, 2015, a petition from Kruk Electric, LLC was received and subsequently filed with the City Clerk for personal property tax abatement consideration for property to be located at 3702 W. Sample, South Bend, IN 46619. 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 SUNIMARY ➢ Purchase of two new wire former machines to expand production capabilities ➢ New project taxes— $15,012 ➢ Estimated taxes being abated during five year abatement period— $6881 ➢ Total taxes to be paid on new and existing equipment over the next five years — $8131 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: ➢ Create zero (0) permanent, full-time and zero (0) permanent, part-time jobs within the first year, representing a new annual payroll of $0 ➢ Maintain (4) four existing permanent full -time and (0) zero existing part-time jobs with an annual payroll of $83,200. ➢ The project will create 0 jobs over ten years with a payroll of $0 per job. PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KARd PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB - ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous 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 South Bend Redevelopment designation areas finds that the property is located in the River West 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. May 6, 2015 p. 2 Bamar Plastics, Inc. �(§ E , z . @ )\k § � K ƒ° Q!/ ( MW E Of � \} A ©w ®w » #2 k§} \ » k & §@ ! ` ol Rig\ ��kV / /CD E§ n /k®0 ) ) )k § CD , -,aw ` \ °/ 4 . k) ] Co mma Mu WMN / cgcq � 2# f \f �(§ E , z . @ )\k § � K ƒ° % ( Q`2 E Of � \} » #2 \ k §@ ! ` ol Rig\ ��kV / /CD E§ n /k®0 ) ) )k § CD | ` ) °/ / k) ] Co Mu .. � 2# f \f Y ) \ /j° §k 6) )§ � @ � )k I )# �(§ E , z . @ )\k § � K ƒ° El f)§ (k} Q`2 E Of � \} » #2 . k El \k\\} » #2 " !! §@ ! > {]!7 ol Rig\ ��kV / E§ n /k®0 ) ) )k | \k\\} » #2 _6 f) ){ E§ 000ma o #! k) :l:az f \f §k 2! )§ )k \\ (® City of South Bend �eee I o49OD Petition for Incentives Petitlon.,must include a $150f fee payable to the 6rry,Clerk's Office or online via the City's website of - http:// sduthbendin. gqy/ goyemmerit/ fpntent/ tox- abotemenY before :processing can be complete Legal name as registered with Secretary of . Kruk Electric LLC State Business structure -! DBA Advance Wire Form Company website Proposed Project Information krukelectric @comcast.net Proposed project address l� Parent company name 3702 W. Sample Kruk Electric LLC City, state, Zip South Bend, IN 46619 Legal owner" Kruk Electric LLC Site acreage or acreage required Is the real estate owned or 75t Source Bank Square feet of facility '.. Primary Contact Information 10,000+ If leased by whom 1st Source Bank Primary company contact name Daniel Kruk Title Member Address of company contact 3702 W. Sample Phone City, State, Zip South Bend, IN 46619 Email 'Senior Official Information Company senior official name Daniel Kruk Title Member Address of company contact (if different from Phone City, State, Zip Email ,Consultant Information/Agent Hired business consultant /agent name : -777 Consultant release WN) Address Local economic development partners approval N City, state, Zip, - Email Project Overview Brief description of your Advance Wire Form is a DBA Kruk Electric LLC. Advance Wire Form manufactures springs and wire forms for the of company, project, and why the W medical and brake industries. We have experienced steady growth in recent years, and need to expand our production property is necessary for capabilities. Our project includes leasing more space from the business complex, purch",* wire formers economicgrowth machines. Our growth will result in increased sales and employment. - Filed —Wear—"— MAY CITY Old NN ill M 30M BEN Certified Technology Park appropriate NIA Community Revitalization Enhancement IlDistrict ^, /A Certify that the Building Permit has not been No rfumberof residential units created If this is a petition for personal property tax abatement, has I thee ui ment installed. No sae ,IN Full-Time Permanent Indiana-Resident Calendar Year '. Jobsretained Positions by Calendar Year Total Cumulative of net NEW full time wage w/o permanent jobs created at project hinge ar _ bonuses l "cumulative Hourly average wage,: w/o Total training 'Total #toba benefits or bonuses, of expenditure - ,trained - not cumulative net newjobs not cumulative 2015 4 $10.00 2016 2017 2018 2019 2020 2621 2022 2023 2024 2025 - 2026 - -- ''.Full time - - - Part time Laborers Technical $10.00 Managerial Administrative o will be the individual responsible for coordinating with WorkOne an recruiting? Daniel Kruk Does your company have an EEO hiring policy? No Are you an EEO employer? Yes Year 2013 three the last years: 2014 2015 - Please describe your commitment to I diversity and inclusion by detailing your outreach and recruitment efforts for the last three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Partrme Black Hispanic Asian Indian Female 1 1 1 Other 1 1 1 Complete below for Real or Personal Property Tax Abatement only. 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. p ppro riate information. If Qualify Please complete the table below with the a p (Yes or No) you qualify for the points, please enter the full amount of available points. earned Points Available Points 1 Construction Related (Contractorsl: A Employ Local Companies (75%) 20 B. Purchase Materials from Local Companies (75 %) 20 C. Require Employees vs. Independent Contractors 19 D. Require Prevailing Wage (Davis Bacon) 22 E. Require Health Benefits 22 -F. Require Pension Benefits 18 G. IMaintain Affirmative Action Plan. 20 Sub -total Construction Related: 0 141 2 :Wage & Benefit Related (Ownern. A. Pay Target Wage Levels Yes 33 33 B. - Provide Health Benefits No 34 C. Provide Pension Benefits No 29 D. Provide Training , Yes 28 28 E. Provide Child Care No 15 F. Provide Transportation Assistance No 14 . G. lProvide Employer Assisted Housing program No 9 Sub total Wage & Benefit Related: 61 162 3 Workforce Related: A. Create New lobs - - 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 56 Municipal Facility (donations to the Zoo, conservatory, museum, etc.) No 84 - - Name of Facility Sub -total Municipal Facility: 84 Sub -total from Above: 144 539 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 a real and /or personal property tax abatement consideration and pursuant to I.C., 6-1.1-12.1-1, et sea., and' South Bend Municipal Code Sec. _3-76 et seo.• for this petition state the above. Filed ira� r } office IN What is the cur rent assessed value? Real Property: Personal Property: What is the projected assessed value? Real Property: Personal Property: What is the tax key number for this project? What is the six digit NAICS code? Please attach a Google map and street view of the location'. S' Please list the amount of real and personal property taxes paid for the last five years when applicable. Real Property Taxes: r Personal Property Taxes: Year One Year Two Year Three Year Four Year Five Staff Use Please fill out the Public Benefit Summary Information Only and a., NJ add to the total from above. Points Points Public Benefit Item: - i 2 . 6�e° �e ".- rotectRe�lated:- -4 . �., 5 A. Redevelop a Site that has Special Needs 49 B. I Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan 36 - Sub -total Project Related: 0 120 6 Super Size Proiects(point values arecumulativel: A. 100% to 199 %. - - 25 - B. 200% to 299% C. 300% to 399% 65 D. 400% and Over 52 Sub -total Super Size Projects: 0 210 7 Pay for Municipal Infrastructure: A. Pay for Oversizing -or Upgrading 14 B. Pay for 26-50% of Extension Cost 26 C. Pay for 51 -75% of Extension Cost 39 D. Pay for 76- 100% of Extension Cost 52 Sub -total Infrastructure Related: 0 131 Total from Applicant Section: 144 539 Total from Staff Section: 10 461 Total Public Benefit Points: 1 1144 1000 Filed ira� r } office IN