HomeMy WebLinkAboutConfirming Tax Abatement - Manufacturing Technology Inc. 402 N. Sheridan St. (5 Year Personal Property)Attest
RESOLUTION
4492 -15
Passed by the Common Council of the City of South Bend, Indiana
August 24, 15
20__.
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 ,Awns L z.s 20-1S.
City Clerk
im.
RESOLUTION NO. W2--(.5 -
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 FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
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:
Business Personal Property
and which has a Key Number 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 seq.
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved y the Mayor.
Member of the Common Council
Filed in ClOrk's Office
J% 2 0 2015
KnENTED 1Vrv�x va+ °.. --
C3TV (SLEW 4[1 j6U N 6FFND' IN
NOT AFPBONA
...
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
PHONE: 574/235 -9371
FAX: 574/235 -9021
RE: Personal Property Tax Abatement Petition for: Manufacturing Technology, Inc.
Dear Council Member Ferlic:
Please find the attached information pertaining to a personal property 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.
Manufacturing Technology, Inc. will be purchasing and installing approximately
$1,750,000 of new equipment to vertically integrate with their customer's production needs
and requirements. The new equipment will also all for MTI to provide scale and production
flow to support high volume production while adding additional production and system
processes. The project meets the qualifications for a (5) five year personal property tax
abatement and 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,
-1-31 Z Z%
Brock Zeeb
Director Economic Resources
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCKZEEB
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BROCK ZEEB
2XVA
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 personal 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.
PROJECT SUMMARY
➢ Manufacturing Technology, Inc. will be purchasing and installing approximately
$1,750,000 of new equipment to vertically integrate with their customer's
production needs and requirements. The new equipment will also all for MTI to
provide scale and production flow to support high volume production while adding
additional production and system processes.
➢ New project taxes over the five year abatement period — $150,008
➢ Estimated taxes being abated over the five year abatement period — $68,759
➢ Total taxes to be paid on new and existing equipment over five year abatement
period — $81,249
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will:
➢ Create (14) fourteen permanent, full -time and zero (0) permanent, part-time jobs
in the five year abatement period, representing a new annual payroll of $393,120
➢ Retain (25) permanent full -time jobs with an annual payroll of $382,000.
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
Jim FAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has
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.
0
O O N
N
0
O M m
M N W M
N N
(O
It"
( O
E N
o
N
} (d N
V cq
N m
N
M M
N
uinvroni
(p
M O
co
m
W
c o o V 0 0 M
n o N O
N
MM"
41 � M O m N n
C a N N n
.N- (m0 Omi
0
ONO
d
Z F d � V 0 (O
7 } m V
N (n
N
M N(O
NN
a
N V
N N
�
N
(0 > J O
T
m
X
Y N
t
0�
UM
y N'O CN
N
M(OO NI o10 r0
(m0
d N O
E Q
W MN
C
~ i0 M (Mro
}
Hwy
N
N
N N
M
C(m0
Cr
Q N N
d W
N
N (7
m
.M-
0
O O N
N
0
O M m
V Mr
♦
C61
Mcm
O O
E N
o
a`�
uinvroni
o
M O
co
m
W
2 �
m N
t�
N
d
N
N
�d
N
N V
X
N
(0 > J O
X
m
X
Y N
t
`
UM
y N'O CN
N
x C
mM
d N O
E Q
C
~
N C (7
N U U
y N N
¢¢Nmz
U
��z
a
X00
c Q Q
a`�
N (7
m
o
E
t (Oq N
(JIl
O
O
(Nil
N
Um�
Q
a m
ti
U
o
m �
�
T N
c (o
o �
J
aNi
�
o @
�N
w7
Ua
J «
w
m
6 T
ca
O �
A N
_C
E
'n
N
d�
oa
.
9
�
� U
0 T
N
E v °
J�a
Z Q d
N G
YP' E
Uw
Q
LU
N
0 0
m �
v
Lo
00
m
a
O O
O
v
M
m
m
N
e e
0
GZ
V Mr
o n
C61
Mcm
m
E N
o
a`�
uinvroni
o
M O
N M M N N
m
W
M
m
m
N
e e
0
o n
b
3 U N
m n N M W
m
o rn
a`�
uinvroni
o
M O
N M M N N
m
N �
2 �
t�
d
N
N
�d
N
N V
X
N
(0 > J O
X
m
X
Y N
t
`
UM
y N'O CN
N
x C
mM
d N O
E Q
C
~
N C (7
N U U
y N N
¢¢Nmz
U
��z
a
X00
c Q Q
a`�
N (7
m
R
E
t (Oq N
(JIl
O
O
(Nil
N
Um�
Q
C7�
U
N
N
b
3 U N
m n N M W
m
�
fp
a`�
uinvroni
o
yg
N M M N N
m
N �
2 �
t�
�d
N V
X
N
t
my
G (U
U
p
R
m
N
aaaaNa
t0
C N
o
m �
�
T N
c (o
o �
J
aNi
o @
�N
J «
6 T
ca
O �
A N
_C
E
'n
d�
oa
9
�
0 T
J Y
d �
N �
N _
� 3
City of South Bend
ge,t,. °r•qa
Petition for Incentives
Petition must Include a$250fiffngfee payable to the City Clerk's Offlce or online via the City's webslte at
Y, -
http: / /southbendin.govl governmentl contenVtax -obatement beforeprocessing can be complete
MS Expansion
Legal name as registered with Secretary of
State
Manufacturing Technology, Inc.
Business structure
S Corp Manufacturing
Companywebslte
Proposed Project Information
wraw.mtiwelcing.com
Proposed project address
402 N. Sheridan Street
Parentcompanyname manufacturing Technology, Inc.
City, State, zip
South Band, IN y/,�fq
legal owner
Sheaaeage or acreage required
73
is the real estate owned or
Owned
square feet of facility
Primary Contact Information
117.700
ff leased by wham
Primary company contact name
Michael Leaman
Title I Manufacturing Services Business Unit Manager
Addressofcompawcomact
1207 W Washington Street
Phone (574)233 -9490
City, State, zip Sculh Bend, IN 46628
Email mtlweld lalman.micheel
C ng.com
Senior Official
Companysmaromdal —on,
Doug ail
9
Title
Chief Operating Onion
Address of company contact (If different from
Phone
abafial
same
stanna,
City, State, 21p
Consultant Infornnation/Agent
Email
waN.doupilimliwaldin9.aom
Hired business consultant /agent name
Consultant release [Y/N)
Address
Local eronamic development partners
a oval Y N
CItY, State, 21P
Project Overview
Email
Brief description ofyour
Expansion of manufacturing services, providing friction welding services and other ancillary pre-
company, project, and why the
and post- processing. Vertically intergrate with customers' production needs and requirements.
property is necessary for
New facility will allow us to provide the scale and production flow to support high volume
ty P P PP 9
econcracgrovnh
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.
Filed in Clerk's
�.
Confined Technology Park appropriate
Community Revitalliatlon Enhancement
-
J,,
Calory that the Building Permit has not been
Numberofresidentaluniuneatedby
If this is a petition far personal proof bate ment, hss
thee it menbn
'dace
� i
lI
I
Full-Time
Permanent
Indiana-Resident
Positions
by Calendar Year
Calendar Year
lobs retained
Total hourly
wage w/o
Iringa or
bonuses
cumulative If of net NEW full time
permanent jobs created at project
Nourty vera wage,w /o Totaltraining Totail be
benefits or bonuses, of expenditure- trained -not
cumulative net new jobs not emulative
cumulative
2015
25
382000
5
$13 38640 6
2016
7
$14 63760 8
2017
10
314 53760 8
2018
12
$14 53780 6
2019
14
$14
2020
16
$14
2021
20
$16
2022
2023
7l
24
$18
316
2024
26
$16
2025
28
$16
2026
30
516
Full time
Partthne
laborers
31110
Technical
830
Managerial
$36
Administrative
$16
Who will
et the Individual responsible or coordinating win
WinkOneanreOldlimc
I Carol Sarrour (Hume ReBaurcea)
Does your company have an EEO hiring policy?
Yea
Am you an EEO employer?
Yes
Year
2014
2013
Please describe your commitment to
diversity and Inclusion by detailing your
outreach and recruitment efforts for the last
three years as well as current policies.
Full nme
Part Time
Full Time
Panllme
Black
5
0
3
0
All jobs postings state EOE/AA
Work place. (corporate
numbers reflected on the left.)
Hispanic 2
0
2
0
Aden 3
0
2
0
M70me
Indian 0
0
0
0
female 18
0
14
0
Other 1
0
1
0
Compleke b4low 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.
Please complete the table below with the appropriate Information. If
you qualify for the points, please enter the full amount of available
points.
Qualify
(Yes or No)
Earned Points
Available Points
1
Construction Related (Contractorsu
A.
Employ Local Companies (75 %)
Yes
20
20
B.
Purchase Materials from Local Companies (75 %)
Yes
20
20
C.
Require Employees vs. Independent Contractors
No
19
D.
Require Prevailing Wage (Davis Bacon)
No
22
E.
Require Health Benefits
No
22
F.
Require Pension Benefits
No
is
G.
Maintain Affirmative Action Plan
No
20
Sub -total Construction Related:
40
141
2
Wage& Benefit Related (Ownerl:
A.
Pay Target Wage Levels
Yes
33
33
B.
Provide Health Benefits
Yes
34
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.
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
B.
Retain Existing Jobs
Yes
41
41
C.
Maintain Affirmative Action Plan
Yes
35
35
D.
Provide Targeted Hiring Preference
34
Sub -total Workforce Related:
118
152
4
11122011!a Munitloal Fadlity:
A.
Support a SB Municipal Facility (donations to the
zoo, conservatory, museum, etc.)
YB8
84
84
Name of Facility
tub -total Municipal Facility:
184
84
Sub -total from Above:
346
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 2 -76 et sea., for this petition state the above.
What is the current assessed Yalu e?
Real Property:
e%rQQ Yr 700
IP eronat Property.
What is the protected assessed value?
Real Property:
Personal Property:
That is the tax key number (a, thisprolea?
G es[ �s/4�2_ ')as80If
What is the six digit NAILS Cade?
333992
Please attach a Google map and street New of the location.
hHps:/ /vrww.gpogle.wMmaps/pIaW402 +N +S heritlan +St +South +Bend, +IN +46619/041.6601542
Please list the amount of real and personal property taxes
paid for the last five years when applicable.
Real property Taxes:
Personal Propertyiaxes:
Year One
Year Two
Year Three
Year Four
Year Five
Staff Use
Please fill out the Public Benefit Summary Information
Only
and
JYq1_Nj
add to the total from above.
Points Points
Public Benefit Item:
protect Related:
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 Prolects(point values are cumulativeP
A.
IDO %to 199%
25
B.
200Y. 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 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
Subtotal Infrastructure Related:
0 131
Total from Applicant Section:
%6
539
Total from Staff Section:
0
461
Total Public Benefit Points:
346
1000
1) How do I pay my petition riling fee?
Yourpetitton fiBngfee can be paid either in person or via mail to: Or online via paypal at:
City Clerk's Office littp .Ilsoisthbenditi.gov /govermnent/
Attie: Deputy City Clerk cadent /tax - abatement
227 West Jefferson Blvd.. Suite 400 S
South Bend, Indium 46601
2) Certified Technology Park appropriate? (Page one, under project overview)
In the South Bend area there are only two Certified Technology Parks, Innovation Park and Ignition Park. If
your property is not located at either then the answer would be no.
3) Community Revitalization Enhancement District? (Page one, under project overview)
The map below outlines the CRED area, please check to see if you fall within the boundaries.
4) Has any 504 funding been received? (Page one, under Investment details)
504 Finding is a loan that conefrom the Small Business Administration. Thisfundingniust be appliedfor to be
received.
5) Total training expenditure- not cumulative (Page two, under full time Indiana resident positions)
Tim amount of money to be spent per year on training over the course of the project.
6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions)
The amount of people that you udll train per year over the length of the project.
If you have any additional questions that are not addressed by this document, please contact;
Department of Community Investment at 574. 235.5842 or entail at thcintzefsouthbendu vav
Filed in Clerk's Offish
AL 15 2015
JOHN VJOriu
CITY CLERK, SOUTH SEND, It.!
E
CREeD District
Boundary
Gmw
Scum Souln
�
rob
a... P...�.
N J
Polnrtl
k
nwM1em g
23
Fl91nr
Tut
Tw,
Sam c
qq�
Gam:
e'
n
u
r
w
8
�
emne..ay
6
_ _
Legond s€
,y,
Iroum �
N
OcXE.D N.W
�� 60uT
IMunn
�
N
aan0 raew4
�
4) Has any 504 funding been received? (Page one, under Investment details)
504 Finding is a loan that conefrom the Small Business Administration. Thisfundingniust be appliedfor to be
received.
5) Total training expenditure- not cumulative (Page two, under full time Indiana resident positions)
Tim amount of money to be spent per year on training over the course of the project.
6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions)
The amount of people that you udll train per year over the length of the project.
If you have any additional questions that are not addressed by this document, please contact;
Department of Community Investment at 574. 235.5842 or entail at thcintzefsouthbendu vav
Filed in Clerk's Offish
AL 15 2015
JOHN VJOriu
CITY CLERK, SOUTH SEND, It.!