11-08-10 Council Agenda & Packet

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Summary Bill 25 -10 November 2010 South Bend's Tax Abatement (Phase -In) Program for real property (buildings) provides for a base 3 -year abatement and an add -on abatement of up to 7 additional years. Companies earn points for providing benefits to the community, and additional points translate into a longer term of abatement. Base Abatement Requirements • The applicant must be current in their taxes, sign a Memorandum of Agreement, and supply written documentation to support all claims made in connection with its abatement. • The applicant must pay all company employees at least a Poverty Wage. The Poverty Wage is defined as the wage rate that provides a full -time worker an income at the government - defined poverty level. Step 1: Determine the Poverty Annual Income Level for a household of size three, as listed in the annual Federal Poverty Guidelines. Data for these income levels are published at http: / /aspe.hhs.gov /poverty /index.shtml. Step 2: Divide the Poverty Annual Income Level by 2,080 hours (the number of hours worked in 52 weeks, at 40 hours per week) to get the Poverty Wage. The Poverty Wage until March 1, 2011 is $8.80 per hour. The Poverty Wage shall be recalculated annually on March 1St using the calculation described above. • The applicant and construction contractors for the applicant must maintain a written Affirmative Action Plan. (Exemptions: small companies and residential construction) • Construction employees may not be misclassified as independent contractors. Add -On Abatement One to seven additional years of abatement may be considered for projects achieving the following Public Benefit Points: Project Related Actions Points Redevelop a site which has special needs such as converting a commercial 25 building to residential use, rehabilitating and reusing an historic building, rehabilitating and reusing a property that has been designated a "problem property" by the Community and Economic Development Department, or paying the cost of cleaning up a Brownfield. Technology -based business. Develop a product or business based on 100 nanotechnology and/or licensing intellectual property arising from research conducted at a university in St. Joseph County. Meet energy- efficient building standards at the Silver level or higher, as 100 prescribed by the US Green Building Council's current Leadership in Energy and Environmental Design (LEED) rating system and reference guide, published at -littp://www.usgbg.org Green business. Develop a business whose primary function is the manufacture, 100 distribution or installation of renewable energy products and materials, including solar, wind and/or geothermal.