HomeMy WebLinkAboutBill 15-106 Designating 1915 Bendix Drive for purposes of a two (2) year vacant building tax abatement for Appletree Associates, LP227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
April 20, 2016
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
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:
Appletree Associates, LP
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 Appletree Associates, LP:
➢ 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 Appletree Associates, LP will be available to meet with the Committee on Monday,
April 25, 2016.
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 -5823.
Sincerely,
/� /`'`--f
Aaron Kobb
Director Economic Resources
Filed in Clerk's Office
APR 2 n 201E
KAREEMAH FOWLER
CITY CLERK, SOUTH BEND, IN
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
SUBJECT: VACANT BUILDING PROPERTY TAX ABATEMENT PETITION FOR:
Appletree Associates, LP
DATE: April 20, 2016
On Wednesday, December 9, 2015, a petition from Appletree Associates, LP was received
and subsequently filed with the City Clerk for vacant building property tax abatement
consideration for property to be located at 1915 Bendix Drive, South Bend, IN 46628.
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
➢ This 64,500 sq. ft. facility includes production, warehouse, and office space on 4.45
acres adjacent to the South Bend Airport and has been vacant since 2007. Royal
Adhesive wishes to move into the facility in order to expand their current operations
and help revitalize the area.
➢ Total project taxes during two year abatement period — $62,932
➢ Estimated taxes being abated during two year abatement period — $39,188
➢ Total taxes to be paid during two year abatement period — $23,744
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will:
➢ Create zero (0) permanent, full -time and zero (0) p,
the two year abatement period, representing a new
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT
PAMELA C. MEYER BRIAN PAWLOWSKI
payr
APR 2 Q 2016
KAREEMAH FOWLER
CITY CLERK, SOUTH BEND, IN
ECONOMIC RESOURCES
AARON KOBE
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has not
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 fmds 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.
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RESOLUTION NO.
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN
THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS
1915 Bendix Drive, South Bend, IN 46628
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
(2) TWO -YEAR VACANT BUILDING TAX ABATEMENT FOR
Appletree Associates, LP
WHEREAS, a petition for real property tax abatement consideration has been filed with
the City Clerk for consideration by the Common Council of the City of South Bend, Indiana,
requesting that the area commonly known as 1915 Bendix Drive, South Bend, IN 46628 and which
is more particularly described as:
295.33'X 661.97 BEG 40'W & 527.98'N SE COR NE SEC 33 -38 -2E 4.48 ACRES
and which has Key Numbers 025- 1006 - 030101 be designated as an Economic Revitalization Area
under the provisions of Indiana Code 6 -1.1 -12.1 etseci., and South Bend Municipal Code Sections
2 -76 et seq., and;
WHEREAS, petitioner has agreed to and has accepted responsibility to report any changes
in the final legal description and to report the final, appropriate Key Number to the Department of
Community Investment and to the Office of the City Clerk; and
WHEREAS, the Department of Community Investment has concluded an investigation and
prepared a report with information sufficient for the Common Council to determine that the area
qualifies as an Economic Revitalization Area under Indiana Code 6 -1.1 -12.1, et sec., and South
Bend Municipal Code Sections 2 -76, et seq., and has further prepared maps and plats showing the
boundaries and such other information regarding the area in question as required by law; and
WHEREAS, the Community Investment Committee of the Common Council has reviewed
said report and recommended to the Common Council that the area qualifies as an Economic
Revitalization Area.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds that the Petition for Real Property
Tax Abatement and the Statement. of Benefits form completed by the Petitioner meet the
requirements of Indiana Code § 6 -1.1 -12.1 et seq., for tax abatement.
SECTION II. The Common Council hereby determines and finds the following:
A. That the description of the proposed redevelopment or rehabilitation meets the
applicable standards for such development;
B. That the estimate of the value of the redevelopment or rehabilitation is reasonable
for projects of this nature;
C. That the estimate of the number of individuals who will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result from the
proposed described redevelopment or rehabilitation;
D. That the estimate of the annual salaries of those individuals who will be employed
or whose employment will be retained by the Petitioner can be reasonably expected to result from
the proposed redevelopment or rehabilitation;
E. That the other benefits about which information was requested are benefits that can
be reasonably expected to result from the proposed described redevelopment or rehabilitation; and
F. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requirements of Indiana Code § 6 -1.1- 12.1 -3.
SECTION III. The Common Council hereby determines and finds that the proposed described
redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the
Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement
Consideration and the Memorandum of Agreement between the Petitioner and the City of South
Bend, and that the Statement of Benefits form completed by the petitioner, said form being
prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under
Indiana Code § 6 -1.1- 12.1 -3.
SECTION IV. The Common Council hereby accepts the report and recommendation of the
Community Investment Committee that the area herein described be designated as an Economic
Revitalization Area and hereby adopts a Resolution designating this area as an Economic
Revitalization Area for purposes of real property tax abatement.
SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2)
calendar years from the date of the adoption of this Resolution by the Common Council.
SECTION VI. The Common Council hereby determines that the property owner is qualified for
and is granted 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.
SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of
this Declaratory Resolution for a Vacant Building Real Property Tax Abatement to be published
K
pursuant to Indiana Code § 5 -3 -1 and Indiana Code § 6 -1.1- 12.1 -2.5, said publication providing
notice of the public hearing before the Common Council on the proposed confirming of said
declaration.
SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Member of the Common Council
PRESENTED
NOT APPRCy.
ADOPTG)
Filed in Clerk's Office
E APR 2 0 2016
KARfEEMAH FOWLER
CITY CLERK, SOUTH BEND. IN
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STATEMENT OF BENEFITS
VACANT BUILDING DEDUCTION
State Form 65182 (R / 2 -14)
Prescribed by the Department of Local Government Finance
This statement Is being completed for real property that qualifies as an "eligible vacant building" as defined by
IC 6 -1,1- 12.1- 1(17).
20_15_ PAY 20,E
FORM SB -1 / VBD
PRIVACY NOTICE
The_cosl and`apy speciffc,llidividuars
,salary infom(alloh is 6i r fldenlial; the
4afanceol the filing Is'publlc:recgid
P, IC 6 -1.1- 12,,1 -5.1 (c) and (d).
INSTRUCTIONS.-
1, This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body
requires information from the applicant in making Its decision about whether to designate an Economic Revitalization Area. Otherwise, this statement
must be submitted to the designating body BEFORE the occupation of the eligible vacant building for which the person wishes to claim a deduction.
2. To obtain a vacant building deduction, a Form 3221VBD must be filed with the county auditorbefore May 10 in the year In which the property owner
or his tenant occupies the vacant building or not later than thirty (30) days after the assessment notice Is mailed to the property owner if it was
mailed afterAprll 10. If the property owner misses the May 10 deadline in the Initial year of occupation, he can apply between March 1 and May 10
of subsequent year,
3. A property owner who files the Form 322 1VBD must provide the county auditor and the designating body with a Form CF -1NBD to show compliance
with the approved Form SB -1NBD, The Form CF -1NBD must also be updated each year In which the deduction is applicable.
SECTION •- •
Name of taxpayer'
Appletree Associates LP
Address of taxpayer (rruthberand street oily, state, and ZlPcode)
2180 Hornig Road Philadelphia, PA 19116
Name of contact person Telephone number
mal l addess
Greg.Warshaw 215 673 -0400 i ..)
TEr
eg.warshaw @pelgenesis.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolutlod number
City of South Bend Common Council
Location of property
County
DLGF taxing district number
1915 Bendix Drive South Bend IN 46628
St. Joseph
German, South Bend
Description of eligible vacant 6ulldirig that the property owner or tenant will occupy (use addiflonai sheets If necessary).
Estimated occupancy date (month, day, year)
64,500 square foot facility including production, warehouse and office space on 4.45 acres adjacent
1/1/2016
to the South Bend Airport. This space has been vacant and for sale and /or lease since the prior
Estimated date placed -in -use (month, day, year)
tenant (PEI /Genesis, Inc.) moved to its new facility in 2007.
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS A RESULT OF PROPOSED PROJECT
Current number Salarles Number retained Selerles Numberaddiflonal Salaries
SECTION • TAL COSTANDVALUE OF • • PROJECT
REAL ESTATE - IMPROVEMENTS
COST
ASSESSEQ.VALUE
Current values
Plus estimated values of proposed project
Less values of any property-being replaced
Net estimated values °upon completion of project
5 EFFORTS TO SELL •-
_--SECTION
Described efforts by the owner or previous owner to sell, tease, or rent the building during period of vacancy:
This building has been for sale and /or lease since 2007 through numerous brokers. It Is currently listed with Newmark Grubb Cressy &
Everett.
Show amount for which the building was offered for sale, lease, or rent during period of vacancy.
Current listing; Sale $1.5 million: Lease $1.95 PSF NNN,
List any other benefits resulting from the occupancy of the eligible vacant building.
Increased employment, revitalization of neighborhood
"•cct-
fp+� FpV�f . e�, g,
SECTION •
1 hereby cer`fitq that the represonlations in this statement are true.
Signature of oulllddzad:r: resent ti
Title
Date sigried ( noii(1; day, year)
�� Page 1 of 2
We find that the applicant meets the general standards In the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed
under IC 6 -1.1 -12.1, provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed. calendar years* (see below). The date this
designation expires is
B. The amount of the deduction. applicable Is limited to $ .
C. Other limitations or conditions (specify)
D. Number of years allowed: ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 (* see below)
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
E. For a statement of benefits approved after June 30, 2013, did the designating body adopt an abatement schedule per IC 6- 1,1- 12.1 -177
❑ Yes ❑ No
If yes, attach a copy of the abatement schedule to this form.
If no, the designating body Is required to establish an abatement schedule before the deduction can be determined.
We have also reviewed the Information contained in the statement of benefits and Flnd that the estimates and expectations are reasonable and have
determined that the totality of benefits Is sufficient to Justify the deduction described above.
Approved (signature and title orauthorIzed memberof designating body) I Telephbne number
name of authorized member of designating body I Name of designating
by (signature and title of attester) I Printed name of
* If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a
taxpayer Is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6 -1.1- 12.1 -17,
IC 6 -1.1- 12.1 -1(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner of the building or a tenant of the owner occupies the building, as evidenced
by a valid certificate of occupancy, paid utility receipts, executed lease agreements, or any other evidence of occupation that the
department of local government finance requires.
IC 6- 1.1- 12,1 -17
Abatement schedules
Sec. 17. (a) A designating body may provide to a business that is established In or relocated to a revitalization area and that receives a deduction under
section 4 or 4.5 of this chapter an abatement schedule based on the following factors:
(1) The total amount of the taxpayer's Investment in real and personal property.
(2) The number of new full4lme equivalent Jobs created.
(3) The average wage of the new employees compared to the state minimum wage.
(4) The Infrastructure requirements for the taxpayer's Investment.
(b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule
for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of
the deduction. An abatement schedule may not exceed ten (10) years,
(c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under
the terms of the resolution approving the taxpayer's statement of benefits.
Page 2 of 2
11/23/2015
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Home)) Properties >> For Sale or Lease)) Industrial Properties )) Bendix Dr 1915
:i91.5 Bendix Dr
South Bend, Indiana
Well Maintained, Clean High-Tech Manufacturing Facility
4W
Property Snapshot
Building; 64,500 SF
Office SF: 3,700 SF
Warehouse SF: 20,600 SF; 40,200 SF (Production)
Land: 4.49 Acres
Year Built: 1975 (Production & Office), 2002 (Warehouse)
Zoning: LI (Light Industrial)
Parking: 137 Surface Spaces
OH Doors: I 10'x 12'
Docks/Levelers: 3 8'x 8'
Lighting, Fluorescent &Metal Halide
http:/Iwww,cressyandeverett.com/ProperUes/for-sale-or-feaseJindustrial/l915-bi3ndix-dr/ 1/3
11/23/2015
1915 Bendix Dr:: Newmark Grubb Cressy & Everett
Signage:
Ceilings;
Power:
Sprinklered;
Security:
Utilities;
HVAC:
Annual Taxes:
Reduced Price:
Lease Rate:
Building
13.5' -18'
1200 Amp /480 Volt 3- Phase, 4 -Wire
Yes
Yes
Municipal Water & Sewer, Gas & Electric
Gas Forced Air Heat & A/C
$38,538.88
$1,500,000( ?'0b o.06)
$2.60 PSF NNN
atr,yJ r�r rYrvry °
*hz addition to base rent, tenantpays utilities, janitorial,trash and snow removal, lawn
services, insurance, realestate taxes, and phone%omptrter /data.
Property Details
High -tech manufacturing facility consisting of 64,500 SF on 4.49 acres. The building is
steel frame structure with masonry covered block and metal siding. In 2002 the entire
facility was updated including all new mechanicals, new electric service and a new roof
over the production area. The building is divided into a warehouse, production and
office areas.
The warehouse offers 20,600 SF (116' x 162') with two (2) docks with electric openers
(one with leveler), 55' x 25' bay spacing, 13.5' to 18' ceiling height and metal halide
lighting. The warehouse is heated and cooled with two (2) gas forced air heat and two (2)
central air units.
The production area offers 40,200 SF (100'x 402') with one (1) 10' x 12' overhead door,
one (1) 8' x 8' dock, 50' x 24' bay spacing, airlines, buss ducts, fluorescent lighting and
four (4) restrooms. The production area is heated and cooled with eight (8) gas forced air
heat and eight (8) central air conditioning units.
The 3,700 SF office area consists of classroom/training room, file storage areas, four (4)
private offices, a large open area, reception area, kitchenette, and men's and women's
restrooms.
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For More Information Please Contact
hftp; / /www.cressyandeverett.com/ properties /tor- sale- or- leasellndustrlai /l9l&bendix -dr/ 213
11123/2015 1915 Bendlx Dr:: Newmark Grubb Cressy & Evereft
Tony Davey
Senior Broker
574,485.1536
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Rick Doolittle
Chief Operations Officer
574.485,1535
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