HomeMy WebLinkAboutConfirming Tax Abatement - Manufacturing Technology Inc. 402 N. Sheridan St. (2 Year Vacant Building)Attest
RESOLUTION
4491 -15
Passed by the Common Council of the City of South Bend, Indiana
August 24,
15
2Q_.
Presented by me to the Mayor of the City of South Bend, Indiana
August 25, 20 15
City Clerk
President of Common Council
Approved and signed by me f gut 73Z S 20/5
City Clerk
RESOLUTION NO. 1, 4,j l"(
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
402 N. Sheridan St., South Bend, IN 46619
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A TWO (2) YEAR VACANT BUILDING TAX
ABATEMENTFOR
Manufacturing Technology, 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
402 N. Sheridan St., South Bend, IN 46619 and which is more particularly described as
follows:
PT SW SE NE COR SHERIDAN & LINDEN 12 AC SEC 4 -37 -2E
and which has Key Numbers 018 - 2193 - 725801 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 a real property tax deduction for a period of (2) two 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 seq.
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 F - " -tf-
NOT APPRO.NA
ADOPTia""r T• t' .--t r
Fitcci Ili
.Ikk S 6ifIce
I rs�i
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
July 20, 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: Vacant Building Tax Abatement Petition for:
Manufacturing Technology, Inc.
Dear Council Member Ferlic:
PHONE: 574/235 -9371
FAx: 574/235 -9021
Please find the attached information pertaining to a vacant building tax abatement petition
for Manufacturing Technology, 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. The project
meets the qualifications for a (2) two year vacant building tax abatement. A representative
from Manufacturing Technology, Inc. will be available to meet with the Committee on
Monday, July 27, 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
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
11TIN KAIN PAMELA C. MEYER CHRIS FIELDING 13ROCK ZEEB
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
[�Z�77�:1K�Z�I:f�i111�1:
SUBJECT: VACANT BUILDING PROPERTY TAX ABATEMENT PETITION FOR:
Manufacturing Technology, Inc.
DATE: July 20, 2015
On Wednesday, July 15, 2015, a petition from Manufacturing Technology, Inc. was
received and subsequently filed with the City Clerk for vacant building property tax
abatement consideration for property to be located at 402 N. Sheridan St., 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.
' : 4711MOL&II1luallS/_\m
➢ Expansion of manufacturing services, providing friction welding services and other
ancillary pre and post - processing. Vertically integrate with customer's production
needs and requirements. New facility will allow MTI to provide the scale and
production flow to support high volume production, adding systems and production
processes.
➢ $929,000 investment in improvements to existing building construction along with
approximately $1.75M in new machinery & equipment, special tooling/retooling
and new computer/IT hardware
➢ Total project taxes during two year abatement period — $145,128
➢ Estimated taxes being abated during two year abatement period — $90,031
➢ Total taxes to be paid during two year abatement period — $55,097
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will:
➢ Create 7 permanent, full -time and zero (0) permanent, part-time jobs in the two
year abatement period, representing a new annual payroll of $196,560
➢ Retain 25 permanent, full -time jobs with an annual payroll of $382,000
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted, finds that the petitioner has
been granted or associated with a previous abatement.
2. The Building Commissioner has reviewed the petition and finds the property to be
properly zoned for the proposed project.
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 two (2) vacant building tax abatement under section
IC. 6- 1.1- 12.1 -4.8.
{
\
;
|
\
! $
ƒ \{
)
\
)-
§
§
E §! !2 §!
§! !
!
|\)§
!
{) }�
!)
� \{
- ;!
>!
!!
§ §s■ §
;!
• ■ :| .a
§(
1 =�88 !
aul ;•
;!
7!!! •!•
!;
/! || [ |)
�()
!!
/}
St.Joseph Indiana, Assessor
St.Joseph Indiana, Assessor
Parcel
Page 1 of 1
generated on 711512015 8:44:22 AM CDT
Parcel ID Parcel Address AV - Total Land & Data as of
Improv.
71-08-04-461- 402 N SHERIDAN $2,004,700 7/12/2015 8:28:00 PM
001.000 -026 -026
Owner Information
Owner Name Mohawk Flush Doors Inc. % Premdor Inc
Owner Address Ste 300
Tampa FL 33602 -5105
Transfer Date 09/09/1991
Location Information
District No. 026 Section & Plat
Area No. 011 State Assigned District No. 026
Parcel Address 402 N SHERIDAN Routing No. 8 -C
Parcel Address 402 N SHERIDAN
Legal Desc. - Pt Sw Se Ne Cor Sheridan & Linden 12 Ac Sec 4-37 -
2e
Parcel Information
Topography
Services
Current AV - Total Land
Zoning
$0
Level
Y
Water
Y
Property Class Code
350
High
N
Sewer
Y
Neighborhood Code
7126026
Low
N
Gas
Y
Neighborhood Factor
100.00
Rolling
N
Electricity
Y
Neighborhood Type
B
Swampy
N
Sidewalk
N
Street or Road Code
A
Flood Hazard
0.00
Alley
N
$0
Waterfront Property Type
httn• /An- .atinsenh- assPSCnr onvernmax rnm /nrnnerlvmsx /A( AMA Tnfliana /tsh narcel v07 _ 7/15/2015
Assessment Information
Current AV - Total Land
$107,400 AV - Res. Land & Lots
$0
Legal Acreage
.0000
Current AV - Total lmprov.
$1,897,300 AV - Res, improv.
$0
Average AV/Acre
$0
AV - Total Land & lmprov.
$2,004,700 AV - Res. Land & lmprov.
$0
Appraisal Date
AV - Commercial Land
$107,400 AV - Non -Res. Land
$107,400
Reason for Change Code
19
AV - Comm. lmprov.
$1,897,300 AV - Non -Res. Imp.
$1,897,300
Prior AV - Total Land
$107,400
AV - Comm. Land & Imp.
$2,004,700 AV - Non -Res. Land & lmprov.
$2,004,700
Prior AV -Total improv.
$1,898,200
AV - Dwelling
$0 AV - Classified Land
$0
Adj. Factor Applied
0.00
AV - Farmland
$0 AV - Homesite(s)
$0
httn• /An- .atinsenh- assPSCnr onvernmax rnm /nrnnerlvmsx /A( AMA Tnfliana /tsh narcel v07 _ 7/15/2015
City of South Bend
d
Petitian for Incentives
Petition must Include a $250 filing fee payable to the C1 'CCha,k's Office or online via the City's websrte at °
httpi / /sourhbendln.pov /pavernment /convent /tax -g prrytrent before processing can be mfiplete
General Information MS Expansion
Project
Legal name as registered with Se netar'yof
Idenulectudnp Technology, Inc.
auslnesestrucmre S Corp Manufacturing
[ompanvwebsite
vavw.mavyeldng.com
Proposed Project information
Propoied profett adtlress - d02 N. Shanden SUe at Rueniwmpany nine
-
Manufacturing Technology, Inc.
aty, State, zip South Band,IN 46614 Legal owner
Site aoreage or acreage required
73 Is the real estate owned or
11,110m,
(574)293 -9490
paned
Square feet of fad ll ty
117,700 Itleased by whom
Email
Prima il' company c ,.Ct'nanm
Michael Laiman
Title
Manufacturing
Manufacturing Sendcas Business Unit Manager
Address Of company contact
W Washington Slreel
11,110m,
(574)293 -9490
city, state, zip
Senior Official
South Bend, IN 46628
Email
' Iaiman.mlchael ®mlfwelding.com
Company senior offldal name
Doug Wall
Ttle
Chkl OpareStq OlAcer
walt.douglimliwelding.com
game
npn°n o' your Expansion of manufacturing services, providing friction weldin services and other ancilla
proleR,.aa wnyme and post- processing. Vertically intergrale with customers' production needs and requirements.
6rmmhsary far New facility will allow us to provide the scale and production flow to support high volume
production, adding systems and production processes.
We Will consolidate two facilities, Sample Street FSW site which produces large panels and
Washington Street RFW into one facility for manufacturing of components.
Washington Street Will have additional space to expand equipment.manufacturing.
I _ _ __
mnoiogy Park appropriate
Rey1b11aatlon Enhanceme
.)fflce
J01414 V0'__
Sv`171 n B "ND'
� rs�am,I wnaiismevaiueolanyequlpmentbeingpurch warn l What is the valddblanl 'eyulpinentlielni;
sIt- of pI0Jeit In dorm,) raelvedl -
Indiana for the prole Ra purchased from mm of state for the prdl,d
b191,O00 1,485,000
$230,000
New Prolect Investment
2015
Land Acquls0loo
Building tease Payments
Building Purchase Coats 5 900,000
New Building Construction
Existing 0uildin8amprovemem,, 3659,000
New Machinery$ Equipment a $630,000
Spedlal TO011og /Retooling - $200,000
New Furniture /Fixtures 330,000
New Computer /IT Hardware ! 554,660
New Software $35,000
OneFc Fell InNstructure
OR site Flbepinfr:r, qwe 312,000
TOTAL
2016
2017
2018
1
5 1
2021
2022
560,000
$20,000
3720,000
350.000
350.000
350,000
3 5,000
$ 5,000
3193,760
$20,500
35,000
36,000
Full-rime Permanent Indiana-Resident Positions by Calendar Year
Calendar Year- "ISSpbs retain.d TdtaiTobrly Cumulativegofn,t NEW full time
wage w/o permanent lobs created at protect
Iringe or
bonuses
HOUrty average wage, w/o
benefits or bonuses, of
c- muirlivenetnewj -b5
Tool training or St. be
expenditure- trained -not
not cumulative
cumulative
2015 25 362000 5
$13
36640 6
2016 7
2017 10
$14
63760 8
$14
63760 8
2018 12
2019 14
2020 16
$14
63760 6
$14
$14
2021 20
2022 22
$16
$16
2023 24
$16
2024 26
$16
2025 28
$16
2026 30
$16
Full time
part time
Loborem
$13.10
` Technlcel
$34
Managerial
$36
Adminlslrallve
$16
Who vvill be t the mcMd.alme,pso,lble to, connfir.11m,
workone o feuui In ?
Carol Senour (Human Resources)
Does your company have a n EEO Wring policy? Yes
Are you an EEO employer?
VGS
the last three
Year 2014
years:
2013
2012
Pleue tlesalbe your commltmms to
diversity and Inclusion by 8e alling your
---reach eqd recrullment e6ore for the last
three years as well as current polldes.
Full Time
ear ik 5
Part Tlme
0
Full Tlma
3
Part Time
0
Futl rime
4
Pan Tlme
0
All jobs postings state EOE7AA
work place. (corporate
numbers reflected on the left.)
Hhpanlr 2
0
2
0
0
o
Amsn 3
0
2
0
2
0
Indian 0
0
0
0
0
0
Female ig
0
14
0
16
0
Other 1
0
1
0
2
0
Complete below for Real or Personal Property Tax Abatement only.
Please sign for all requested incentives.
Public alerhBfft Item:
Information Is required on both the construction companles.and tie
companies which will provide materials purchased for this project.
Please complete the table below with thea p
p appropriate f a ation. If
you qualify for the points, please enter the full amountof available
points.
Qualify
Earned Points
(yes or No)
Available Points
1
Construction Related iContractorsF
A.
Employ Local Companies (75%)
Yes 20
10
B.
Purchase Materials from Local Companies 175 %)
Yes 20
20
C.
Require Employees vs. Independent Contractors
No
19
D.
Require Prevailing Wage(Da4ls Bacon)
No
22
E.
Require Health Benefits
No
22
F.
Require Pension Benefits
No
18
G.
Maintain Affirmative Action Plan
No
20
Sub -total Construction Related:
40
141
2
Wage$ Benefit Related LQwnerP
A.
Pay Target Wage Levels
Yes 33
33
B.
Provide Health Benefits
Yes 34
34
C.
Provide Pension Benefits
No
�9
D.
Provide Training
Yes 29
28
E.
Provide Child Care
No
19
F.
Provide Transportation Assistance
No
14
G.
Provide Employer Assisted Housing program
Yes 9
9
Sub -total Wage & Benefit Related:
104
162
3
Workforce Related:
A.
Create New Jobs
Yes 42
42
8.
Retain Existing Jobs
Yes 41
41
C.
Maintain Affirmative Action Plan
Yes 35
35
D.
Provide Targeted Hiring Preference
34
Subtotal Workforce Related:
118
152
4
JUJorta MWIIc1Lal Facility
A.
Support a SB Municipal Facility (donailons io the
zoo, conservatory, museum, etc.)
Yes as
84
Name of Facility
Sub -total Municipal Facility:
84
84
Sub -total from Above:
346
539
The undersigned owner(,) of real property, low ted withln 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 see., and
South Bend Municipal Code Sec. 2 -76 et sea. for this petition state the above.
at is the current assessed value?
Real Property:
0,00 t(r %00 Peoopal'PfoPern:
at is the projected assessed value?
Real Property:
Personal Property:
[What is the taxkeynumber for this project? sgo
t Is the six digitNAICS rode?
333992
se attach a Gdbgle map and street view of the location.
hhps: //v .google.coMImapsiplace/ 402+ N+ Sheridan+S� +Soulh.Dend,+IN+46619 /@41.6801542
se list the• mount of real andpersonal propertytaxes
paid for the lost live years when 'app las ble.
Real Property Taxes:
Personal Property Taxes:
Yeu One
Year Two
Year Tinee
Year Four
Year Five -
Staff Use Please fill Out the Public Benefit Summary Information
Only
and add to the total from above.
Y rN pdints o -ta
Public Benefit Item:
Proledt Refatetl:
5
A.
Redevelop a Site that has Special Needs
49
B.
Develop Based on Local University Research
35
C.
lAchieve a Physical Element of a Plan
36
Sub -total Project Related:
0
120
6
Steer Size Projects (point values are cumulative):
A.
100Y to 199%
25
B.
200% to 299%
68
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 Oversiting or Upgrading
14
B.
Pay for 2650% 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: -
346
539
Total from Staff Section:
0
461
Total Public Benefit Points:
346
1000
1) How do I pay my petition filing fee?
Your peNflon flhtgfee can be paid either in person or via mail to: Or online via paypal at:
City Clerk's Office http:/ /soutbbendin.gov /government/
Attu; Deputy Cify Clerk conten /tax- abatement
227 West Jefferson Blvd.. Suite 400 S
South Bead, Indiana 46601
2) Certified Technology Park appropriate? (Page one, under project overvimv) -
fit file South Bend area there are only two Certified Technology Parks, Innovation Park and Ignition Park. If
yam•prope ty is not located lit either then the mnsnver would be no.
3) Community Revitalization Enhancement District? (Page one, under project overview)
The map belov outlines the CRED area, please check to see ifyoufall within the boundaries.
. -
- era
Logo na • 31 N r
OCPF.D.—. 9 W34.. A
r1 owa o.w v.rca,
4) Has any 504 funding been received? (Page one, under investment details)
504Fmndingisa loan that conrfrot the Small Brashness Adniitdstntionn. Thisfundimgnunsibeappliedfor tube
received.
5) Total training expenditure - not cumulative (Page two, under full time Indiana resident positions)
The amount of nnoney to be spent per year on training over the course of the project.
6) Total number to be trained - not cumulative (Page trvo, under full time Indiana resident positions)
The amount of people that you will train per year at," the length of fhe project.
If you have any additional question that are not addressed by this document please contact San io-FWntarlsonau -'n thus._, _ p.�_,__
Department ofConnuunty Investment at 574.235.5842 or email at; lfwtrerasauth0oidi, vov Filed In rvrfr- 1rk1';S 0 ffFCy -. 1
I 7L-1 5 2015
Jo €iii ' i;i_}s;uW
CITYCLERk.;'E
4CREeD District
Boundary
�
�.% Grvv
soum sown
" rob
oWw po.,
4P
nm.na
p
s Duman )
x
Fi.M1n
luC
TO.
f.empb
�Ktll
g
OM1n
Girv:
e
�emmn swi
�
. -
- era
Logo na • 31 N r
OCPF.D.—. 9 W34.. A
r1 owa o.w v.rca,
4) Has any 504 funding been received? (Page one, under investment details)
504Fmndingisa loan that conrfrot the Small Brashness Adniitdstntionn. Thisfundimgnunsibeappliedfor tube
received.
5) Total training expenditure - not cumulative (Page two, under full time Indiana resident positions)
The amount of nnoney to be spent per year on training over the course of the project.
6) Total number to be trained - not cumulative (Page trvo, under full time Indiana resident positions)
The amount of people that you will train per year at," the length of fhe project.
If you have any additional question that are not addressed by this document please contact San io-FWntarlsonau -'n thus._, _ p.�_,__
Department ofConnuunty Investment at 574.235.5842 or email at; lfwtrerasauth0oidi, vov Filed In rvrfr- 1rk1';S 0 ffFCy -. 1
I 7L-1 5 2015
Jo €iii ' i;i_}s;uW
CITYCLERk.;'E