Substitute 78-17 Tax Abatement Enforcement

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SUBSTITUTE 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 It is the intention of the City of South Bend to enforce its tax abatement ordinance and provide assurance to the public that taxpayer subsidies are used to provide real benefits to the community and that companies receiving taxpayer subsidies via tax abatements are complying with the terms of the abatement throughout the life of the abatement. 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 2-84.14 is hereby amended by replacing paragraph(g), and adding paragraphs 0), (k), and (1)to read as follows: Sec. 2-84.14. - Failure of petitioner to comply may result in fines being imposed or termination of economic revitalization designation and repayment of taxes previously abated. (g) If the Department of Community Investment recommends to the Council that there are factors beyond the control of the applicant that led to the applicant's inability to substantially comply with all of its commitments,the Department shall document these factors in detail to the Council. The Council's Community Investment Committee shall meet promptly to consider the applicant's compliance. All documentation related to the applicant's compliance shall be included in the Council's packet of materials distributed before the above-referenced meeting of the Community Investment Committee. Such packet shall be posted and maintained online on the City of South Bend's website. (j) Petitioner must inform each of its employees of the benefits provided to them due to the terms and conditions of its abatement by posting these terms and conditions in conspicuous locations throughout petitioner's premises including in places where EEOC posters are displayed. The posted benefits should include instructions as to how and where an aggrieved employee may file a complaint. Also, all new employees shall be given written notice of the employee benefits due to this abatement at the time of employment. (k) The chief executive officer, president, managing partner, general partner, managing member, owner, or their approved designee, of the petitioner shall represent and warrant to the Department of Community Investment("DCI")under penalty of perjury within 120 days of the end of each calendar year in which the petitioner receives the tax benefit of an abatement, that the petitioner is in compliance with the terms and conditions of the abatement. (1) DCI shall randomly audit no less than five tax abatement recipients each calendar year and certify the recipients' compliance with the terms and conditions of the their abatements.