HomeMy WebLinkAbout6.A.(2) Resolution No. 2530RESOLUTION NO. 2530
A RESOLUTION APPROVING AN APPLICATION FOI:
REAL PROPERTY TAX DEDUCTION
WHEREAS, LC. 6-I.1-12.1-2(1) provides that an application for property tax deduction may
not be approved when the property is located in an allocation area as defiucd in LC. 36-7-14-39,
unless the Redevelopment Commission which designated that allocation area adopts a resolution
approving that application; and
WHEREAS, the South Bend Common Council has received a petition Cor up to live (5) years
of real property tax abatement consideration from Fortis Plastics, LLC/AIC Ventures for real
property located at 3615 Voorde Drive in the Airport Economic Development Area, the legal
description of which is attached hereto, marked Exhibit "A" and incorporated herein; and
WIIlREAS, this Commission declared the Airport Economic Development Area by
Resolution No. 919, adopted February 23, 1990, and in the same resolution declared the Airport
Economic Devclopmcnt Allocation Area, Allocation Area No. 1; and
WHEREAS, the property located at 3615 Voorde Drive is located within the Airport
Economic Devclopmcnt Allocation Area, Allocation Area No. 1.
NOW, TIIEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission
as follows:
1) The Commission i7nds that the application from Fortis Plastics, LLC/AIC Ventures, for
up to five (5) years of real property tax abatement consideration for property located at 3615 Voorde
Drive the Airport Economic Development Allocation Area, Allocation Area No. 1, should be and is
hereby approved.
2) That a copy of this resolution be forwarded to the South Bend Common Council to
indicate the Commission's approval of the petition for real property tax abatement for Fortis Plastics,
LLC.
Approved this 19th day of December, 2008, at the regular meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
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TAX ABATEMENT REPOR T
~hO: SOUTH BI~Nll REDEVELOPMENT COMMISSION
PROM: BOB MATIIIA ~~~ iI`~`~'
SUBJEC"h: REAL PROPER"I~Y "I~AX ABA"I~F,MEN"I' PI:~fI110N EOR:
FORTIS PLAS"GIGS, LLCIAIC VENTURES
DA"hI?: December 16, 2008
On December 16, 2008, a petition for real property tax abatement consideration for property located at
361 ~ Voorde Drive was tiled with the City Clerk by Fortis Plastics, LLC in the name of its proposed
landlord, AIC Ventures. Pursuant to Chapter 2, Article 6, Section 2-82 of the Municipal Codc of the City
oI~ South Bend, this petition was referred to the llepartrnent oC Community and Economic Development
for purposes of investigation and preparation of a report determining whether the area qualifies as an
Economic Revitalization Urea pursuant to LC.6- l .l -12.1 and whether all zoning requirements have been
met.
The Department of Conul~unity and Economic Development has reviewed the petition, investigated the
area, and makes the following report.
PROJECT SUMMARY
Fortis Plastics is an estrudcr oC plastic components used in a ~~~ariety of~ industrial and consumer
applications. The compan}' is weighing the consolidation of its existing Elkhart operations to South Bend
or Henderson, Kentucky. The applicant has submitted an application in the name of its proposed landlord
in South Bend, AIC Ventures. ~l~hc South Bend site would require rehabilitation and installation oC
equipment in the landlord's building. ~hhe rehabilitation includes the installation of docks, office build
out/remodeling. ne~~° sprinkler system installation. electrical upgrades. 1IVAC improvements and
reception area build out in a 92?49 square foot building located at 361 ~ Voorde Drive. "fhe total cost of
the rehabilitation is estimated at Sl ,?77.000. Fortis Plastics would lease the building from AIC Ventures.
Qtemun~i rv Di vri i>rn~i,~ i ~;CONUibllC Du~r~nrnai_~ r riNnn~<ani. & Paocio~~n
... >~..~t~~~~ u~~~,_,r_;., iYLwncr~~n_~~r
South Bend Redevelopment Commission
RE: Tax Abatement for Fortis Plastics, LLC
December 16, 2008
Page 2
The equipment to be purchased includes new and used plastic injection mold machines and extruders,
computers, IT infrastructure and servers. The used equipment would be acquired from outside the State of
Indiana. A personal property tax abatement application is being submitted as part of the total project.
The applicant is in the early stages of the rehabilitation design and the contracting process. Therefore, it
does not have a film list of contractors. Based on current information it is estimated that the applicant will
qualify for athree-year abatement. The length of this period could increase depending on the final
selection of the contractors. However, it is not expected to exceed five years.
Total faxes to be abated during a (~) three-year abatcmcnt period are estimated at $41,998. Total taxes to
be paid during the three-year abatement period are estimated at $222,531. Total taxes to be abated during
a (5) live-year abatcmcnt period are estimated at $59,419. "fotal taxes to be paid during the five-year
abatement period arc estimated at $381,463.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will retain 146 employees with an annual payroll of
$5,54,904.
A13ATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has not been granted or
associated with any previous tax 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 Airport I~conomic Development Area, which is a "I'ax Incremental Allocation Area; therefore,
the petition for personal property tax deduction must first be approved by the South Bend
Redevelopment Commission.
4. A review of the "hax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications fora (5) five-year personal property tax abatement under section 2-82, Industrial
Development, City-wide General Standards.
16-Dec-08
Fortis Plastics, LLC
Public Benefit Points Sum mary "
qualify Earned Available
Public Benefit Item: Y or N Points Points
Project Related:
1 A. Redevelop a Site that has Special Needs N 0 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan N 0 36
Sub-total Project Related: 0 120
2 Super Size Projects (point values are cumulative):
A. 100`% to 199% N 0 25
B. 200% to 299% N 0 68
C 300°~ to 399°i N 0 65
D 400°~ and Over N 0 52
Sub-total Super Size Projects: 0 210
3 Construc tion Related:
A Employ Local Companies Y 20 20
B Purchase Materials from Local Companies Y 20 20
C Require Employees vs. Independent Coniracb N 0 19
D Require Target Wage Levels N 0 22
E Require Health Benefits N 0 22
E Require Pension Benefits N 0 18
G. Maintain Affirmative Acton Plan N 0 20
Sub-total Construction Related: 40 141
4 Wage & Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits Y 34 34
G. Provide Pension Benefits N 0 29
D. Provide Training Y 28 28
E Provide Child Care N 0 15
F Provide Transportation Assistance N 0 14
G Provide Employer Assisted Housing program N 0 9
Sub-total Wage & Benefit Related : 95 162
5. Workforce Related:
A Create New Jobs N 0 42
8 Retain Existing Jobs Y 41 41
C Maintain Affirmative Action Plan N 0 35
D Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 41 152
6 Pay for Municipal Infrastructure: (point values are cum ulative):
A. Pay for Oversizing or Upgrading N 0 14
B Pay for 26-W°/ of Extension Cost N 0 26
C Pay for 51-75°~ of Extension Cost N 0 39
D Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7 Support a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 176 1000
Qualification for each Pubic Benefit Item based on best available information at time of application or
good faith determination if no information available-
Fortis Plastics, LLC
Additional Years of Abatement
Multi-family Development Projects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Projects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 1000 7
Subtotal from Points Summary: 176
Base Years of Abatement
Additional Years of Abatement
Total Years of Abatement: 3
16-Dec-OS
Fortis Plastics, LLC
Public Benefit Points Sum mary
qualify Earned Available
Public Benefit Item: Y or N Points Points
Project Related:
1 A. Redevelop a Site that has Special Needs N 0 49
B Develop Based on Local University Research N 0 35
C Achieve a Physical Element of a Plan N 0 36
Sub-total Project Related: 0 120
2 Super $IZe PfOleCts (point VdU25 art CumUlatlve ):
A 100°~ to 199% N 0 25
B 200°~ to 299°/ N 0 68
C 300 ~ to 399°o N 0 65
D 400% and Over N 0 52
Sub-total Super Size Projects: 0 210
3 Construction Related:
A. Employ Local Companies Y 20 20
B Purchase Materials from Local Gom panles Y 20 20
C Require Employees vs Independent Gontractr Y 19 19
D. Require Target Wage Levels Y 22 22
E Require Health Benefits Y 22 22
F Require Pension Benefits Y 18 18
G Maintain Affirmative Action Plan Y 20 20
Sub-total Construction Related: 141 141
4. Wage & Benefit Related:
A. Pay Target Wage Levels Y 33 33
B. Provide Heal[h Benefits Y 34 34
C. Provide Pension Benefits N 0 29
D. Provide Training Y 28 28
E Provide Child Care N 0 15
F Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N D 9
Sub-total Wage & Benefit Related : 95 162
5. Workforce Related:
A Create New Jobs N 0 42
B. Retain Existing Jobs Y 41 41
C. Ma'mtaln Affirmative Acton Plan N 0 35
D Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 41 152
6. Pay for Municipal Infrastructure: (point values are cum ulative):
A Pay for Overslzing or Upgrading N 0 14
B Pay for 26-50°~< of Extension Gost N 0 26
C Pay for 51-75°m of Extension Gost N 0 39
D Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 0 131
7 Support a Municipal Facility:
A. Support a Municipal Faculty N 0 H4
Total Public Benefit Points: 277 1000
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available
Fortis Plastics, LLC
Additional Years of Abatement
Multi-family Development Projects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Projects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 1000 7
Subtotal from Points Summary: 277
Base Years of Abatement
Additional Years of Abatement
Total Years of Abatement:
00
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