Substitute 48-17 Tax Abatement Amendment

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Substitute Bill NO. 48-17 ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,AMENDING A SECTION OF CHAPTER 2,ARTICLE 6 OF THE SOUTH BEND MUNICIPAL CODE PERTAINING TO TAX ABATEMENTS STATEMENT OF PURPOSE AND INTENT The Mayor of South Bend has stated that "Raising the minimum wage of our city employees can increase morale and productivity, while cutting turnover. It's also good economics, since city workers are consumers at local businesses. . . Most importantly, it's the right thing to do for hardworking public servants. " The Mayor noted that this wage applies to all City employees,part-time, temporary, and seasonal, as well as full-time employees. Since a tax abatement is a subsidy to employers from the City and is intended to improve the economic environment of the City of South Bend, it is incumbent upon companies receiving tax abatements from the City to pay their employees at least as well as the City pays its employees. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: Section I. Chapter 2, Article 6, Section 2-76.3 is hereby amended by modifying paragraph(3) and by adding paragraph(6) and Sections II and III to read as follows: See. 2-76.3. Base abatement. A base abatement ("base abatement") is an abatement for three (3) years in the case of real property other than single-family residential, five (5) years in the case of real property that is single-family residential, and five (5) years in the case of personal property. The Council may grant a base abatement to an applicant who fulfills the following requirements: (3) The applicant has executed a memorandum of agreement ("memorandum of agreement") prepared by the Community Investment Department. The memorandum of agreement is a legally binding agreement representing a contractual relationship between the applicant and the Council. It may become effective upon the Council granting the abatement, which includes provisions setting forth: a. The tax abatement recipient's agreement to fulfill the conditions upon which the tax abatement is based ("conditions of abatement");