HomeMy WebLinkAboutConfirming Tax Abatement - Masterbilt, Inc. 325 S. Walnut (5 Year Personal Property)Attest:
RESOLUTION
4460 -15
Passed by the Common Council of the City of South Bend, Indiana
June 22,
15
20 .
Presented by me to the Mayor of the City of South Bend, Indiana
June 23
Approved and signed by me 0-6 nc,
a3
15
City Clerk
President of Common Council
20ti .
City Clerk
ll:' rte'
RESOLUTION NO.
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
325 S. Walnut St., South Bend, IN 46601
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
Masterbilt, 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 325 S.
Walnut St., South Bend, IN 46601 and which is more particularly described as follows:
Business Personal Property
and which has Key Numbers 018 - 08790 -00 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 Ise .
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.
PRESLNTED (Cr-2v -t Y
NOT APPROVED
Member of the mon Council
Filed in CIArk's Office
MAY `2
,1O ; )I
CITYCLERV, Ii<U'�F111 SEND, IN
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
May 14, 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: Masterbilt, Inc.
Dear Council Member Ferlic:
PHONE: 574 /235 -9371
FAx:574/235 -9021
Please find the attached information pertaining to a personal property tax abatement
petition for Masterbilt, Inc.
➢ 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. Masterbilt,
Inc. will be purchasing and installing approximately $600,000 of new equipment to
improve capabilities, efficiencies, and produce more complex parts to meet market
demands. The project meets the qualifications for a (5) five year personal property tax
abatement and a representative from Masterbilt, Inc. will be available to meet with the
Committee on Tuesday, May 26, 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,
>3 ) ?�
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
JITIN KAN PAMELA C. MEYER CHRIS FIELDING BROOK ZEEB
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BROCK ZEEB
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
Masterbilt, Inc
DATE: May 18, 2015
On Tuesday, May 12, 2015, a petition from Masterbilt, Inc. was received and subsequently
filed with the City Clerk for personal property tax abatement consideration for property to
be located at 325 S. Walnut, South Bend, IN 46601. 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
➢ Purchase new equipment to improve capabilities and efficiencies, making them
more competitive. The new equipment will allow Masterbilt, Inc. to produce more
complex parts which their customers have found difficult to source
➢ New project taxes over the five year abatement period — $51,472
➢ Estimated taxes being abated over the five year abatement period — $23,593
➢ Total taxes to be paid on new and existing equipment over five year abatement
period — $27,879
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will:
➢ Create (4) four permanent, full -time and zero (0) permanent, part-time jobs within
the first year, representing a new annual payroll of $133,120
➢ Maintain (6) six existing permanent full -time and (3) three existing part -time jobs
with an annual payroll of $234,780.
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOmic RESOURCES
J11 IN (CAIN PAMELA C. MFYFR 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.
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.
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City of South Bend
a4�eTd
F �
'
Petition for Incentives
Penton must include a $250flling fee payable to the City clerk's Office or online via the City's wehsite at
http: / /muthb- din gov/ govemm eWwntent /-- batementbefore processing can be complete 'a`z
• .
- Falcon
legal nameearegl5tefetlwitlr Seaetaryoi .:
Mast - rbilt, Incorporated
Badness Sbatlpm S- Corporation
Companywebsite ' - www.maslerbilt- inc.com
Proposed Project Information
Proposed poled address t. Paremcompanyname
326 S. Walnut S
city, State, Zlp
South Bend, IN 46601
Legal owner MasterNft, Inc.
Site acreage or acreage required
Isthe real estate owned or
Owned
Squarefeetoffacility
Primary Contact Information
_8,500
aleasedbywhom
primary cempanycontact name
Rob Michalak
7Nle Vice President
Addresaofcompanycontact -
325 S. Walnut SL
Phone 574.287.6567
City, State, Zip - South Bend, IN 46601
Emu robQmasterbitt- inc.com
Senior Official
Company senioroffitlat name
Bob Michalak
Tide President
Address ofcompany contact (IfdWerem from
Phone
City, State, ZIP
Consultant Information/Agent
Emag bob aQmasterbitt- inc.com
Hired business consultant/agent ncrme
Consultant release (YIN)
Address
Local eonnornicdevdopmem parmus
a ovY N
CIry,State,7lp.:
Emag
Project Overview
Bdeftlescriptionofyour.
Masterbitt is an aerospace recision machining business which has an customers.
P p rg opportunely to grow with es
company, project, and why the
wing
Investment in new machinery and technology necessary to improve capabilities and efficiencies which will make us more
make
propetty is eecessaryfor
t
competitive. The new machines will allow MasterbiR to produce more complex parts which our customers have found
emnomicgrowth
difiwh to source. We have already received request for quotas and have won several jobs due to our history of top quality
and delivery performance but can grow rapidly with newer technology. Masterbitt will need to hire new employees and
invest in employee training and development to support the growth a
in Clerk's Office
[Filed
MAY 2 20'15
Ni
Y CLERK, SOUTH i
BEND, IN
Certified Technology Park appropriate
NIA
Community Revitalization Enhancement
NIA
Cerftthatthe BuilAng Permit has not hePn-
tWadjeFgEtgfdCr)I yrgesaeapadptt -,
-
I.M MINI
y
1fth6ha petition far personal property tax Statement. has
the egularneirt tbeerinstaBed
No
Fufl-Time
Permanent
Indiana-Resident
Positions
by Calendar Year
Calendar Year
fobs retained=
Totalhourly
- CuanuladvedofnetNW fuII 6m6
Hourly avenaewage, w /o. 7oW_Alning Taal tl -tote '�i
wa6ew /o
permanentjoa¢atedat WO*t
benefits orbenuses, of expenditure- trained -riot
fringe or
_
cumulativenetrlawjobs . not cumulathre
bonuses
cumulative
2015:.
9 %��' 4
g/�
//3.s
h% 2WW 3
2016
2017
2015
2019
2020
2021
2022
2023
2024
3025
2026
Full time
parttime
Laborers
Technical
average $16.00
Managerial
Adm1nistra5ve
o
e n ue r soar g
WouWneenrecruftina?
Rob Michalak
Does Your company have
an EEO hiring policy] Yes
Are you an EEOempbyeYi
Yes
Please describe your commbment to
dilmrsiryand Indudon by detsilmgyour
. Year
- - 2015(Current)
2014
2013
outreach and montiment efforts forthe last
three Years as well as currentpo5tles.
Fullnme
Part Time
Fullnme
Partrane
Full nme
Part7ime
Black:.
1
1
We have reached out to WorkOne to
explore opporiuni0es to hire from their
candidates. We have also met with
local businesses (West side) to find
Hkpanlc
1
_ Arian
Indian
canditlates.
Female -
2
4
4
- OMer,
Complete below for Real or Personal Property Tax Abatement only.
Please sign for all requested incentives.
Public Benefit Item:
Information is required on Loth the construction companies and the
companies which will provide materials purchased for this project.
Please complete the table below with the appropriate information.- If Qualify
you qualify for the points, please enter . the full amount of available nes or No)
points.
Earned Points
Available points
1
Construction. Related (Comractorii
A.
Employ Local companies (7S%)
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 fChvner):
�> A.
Pay Target Wage Levels
Yes
33
33
B. :
Provide Health Benefit
Yes
34
34
C.
Provide Pension Benefits
Yes
29
29
- D. -
Provide Training ,
Yes
26
28
E.
Provide Child Care
15
F.
Provide Transportation Assistance
14
G. r
Provide Employer Assisted Housing program
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
Yes 35
35
D.
Provide Targeted Hiring Preference
34
Sub -total Worldorce Related:
118
152
4
Support a Municipal Facilhv:
A'
Support a 58 Municipal Facility (donations to the
zoo, conservatory, museum, etc)
84
Name of Fadliry
Sub -total Municipal Fadaty: -
84
Subtotal from Above:
242
539
The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of th
Whatis the current assessed value?
Real Property:
spa C�r C�O�
Personal Property:
S
X37 Sy0
Whafis the pro)ettetl assessed value ? Real Property: personal property;
What is the tax key numberfor this project?
What is the six digit NAILS code ?'
Please attach a Google map and street view of the location.
Please list the amount of real andpwxonalproperty taxes
paidforthelastfiveyearewhenapplic atile..
Real Property Taxes:
Personal Property Taxes: -
YearOne
/p
��(O /.3� 9a
'sc Zi'9G9.98
YearTwo
1-/ 70 �p
OOb
//
o.���.(O2Q
YearThree ..:
//8-o 9. a
(p7
Year Four
(770P
Year Five
O
S,20
Staff Use
Please fill out the Public Benefit Summary Information
.
and
YorN
add to the total from abow.
Points Points
- Public Benefit Item:. -
- -
-vi
5
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
Sub- total.Project Related:
0
120
''6
- Super
Size Proiects(point valuesarecumolativel: -.
-. A.
100 %to 199% -
25
-
- B. . -
200% to 299 %
68
' C.
300%to 3901
65
D. -
400% and Over
52
-
SU"otal Super Size Projects:
0
210
7
- Pavfor Municipal Infrastructure:
A.
Pay for Oversizing.or Upgrading - _ -
14
B.
Pay for26 -50% of Extension Cost
26
C.
Pay for 5175% of Extension Cost _
39
D.
Pay for 76- 1009L of Extension Cost
52
Sub -total Infrastructure Related:-
0 131
Total from Applicant Section :..
0 ava
539
Total from Staff Section: -
0
461
Total Public Benefit Points: -
0 Ql ya
1000