HomeMy WebLinkAbout6A(1) Resolution No. 2564L ~co
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RESOLUTION NO.2564
A RESOLUTION APPROVING AN APPLICATION FOR
PERSONAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6-1.1-12.1-2(1) provides that an application for property tax deductionmay
not be approved when the property is located in an allocation area as defined in I.C. 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 for (5) five years of
personal property tax abatement consideration from Treadstone, LLC for personal property located at
445 North Sheridan Street in the Airport Economic Development Area, the legal description of
which is attached hereto, marked Exhibit "A" and incorporated herein; and
WHEREAS, 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 Development Allocation Area, Allocation Area No. 1; and
WHEREAS, the property located at 445 North Sheridan Street is located within the Airport
Economic Development Allocation Area, Allocation Area No. 1.
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission
as follows:
1) The Commission finds that the application from Treadstone, LLC for (5) five years of
personal property tax abatement consideration for property located at 445 North Sheridan Street in
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 personal property tax abatement for
Treadstone, LLC.
Approved this 6th day of March, 2009, at the regularly scheduled meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: 371.5 Ft on Linden Ave, Beginning 277 Ft West and 60 Ft North Southeast Corner of
Southwest Section 4-37-2E
Tax Key No.:18-2193-75701
Address: 445 North Sheridan Street
South Bend, IN 46619
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-9371
FAx 574/235-9021
TDD 5741235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~L ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REP~R T
TO:
FROM:
SOUTH BEND REDEVELOPMENT COMMISSION
BOB MATHIA ~~~
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
TREADSTONE, LLC
DATE: March 2, 2009
On February 27, 2009, a petition for personal property tax abatement consideration for properly located at
445 North Sheridan Street was filed with the City Clerk by Treadstone, LLC. 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 and Economic Development 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 and Economic Development has reviewed the petition, investigated the
area, and makes the following report.
PROJECT SUMMARY
Treadstone, LLC recycles solid rubber tires into rubber mulch of various sizes and weights depending on
use. Ninety percent of their production is a large premium size that is used primarily for children's
playgrounds and for landscaping.
The equipment to be purchased is a tire shredding machine. The new machine will double the company's
production capacity to recycle solid rubber tires into mulch. The company is relatively new. For the past
two years it has been using three prototype machines to manufacture its product. These machines are not
built to withstand the rigors of the company's current production schedule. The new machine is stronger
and will ease the burden on the three prototypes. In fact, the new machine is based on a design that
Treadstone developed and provided to the machine manufacturer. The design is based on Treadstone's
experience with their prototypes. The estimated cost of the new machine is $200,000.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HL PROGRAM
PAMELA C. MEYER - DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZABETH LEONARD
FAX: 574/235-9697 574/235-9371
South Bend Redevelopment Commission
RE: Tax Abatement for Treadstone, LLC
March 2, 2009
Page 2
Total taxes to be abated during the (5) five-year abatement period are estimated at $7,815. Total
additional taxes to be paid as a result of the project during the five-year abatement period are estimated at
$6,311.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create three (3) new, permanent full-time positions
with an annual payroll $60,000. The project will also maintain four (4) existing permanent full-time
positions and one. (1) existing part-time position with a total annual payroll of $160,000.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the Petitioner, Treadstone, LLC, 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 Economic Development Area, which is a Tax 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 Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications fora (5) five-year personal properly tax abatement under section 2-84.2, Tangible
Personal Property Tax Abatement.
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