HomeMy WebLinkAboutConfirming Tax Abatement - 128 South Michigan - The South Bend Chocolate Companyr
RESOLUTION
3628-06
Passed by the Common Council of the City of South Bend, Indiana
August 28 Zo 06
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
August 29,
20 06
Approved and signed by me ~~u?tts t 30 20 06
~~
~Ya
City Clerk
RESOLUTION NO. 3 ~' Z~---off
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
128 SOUTH MICHIGAN STREET
AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
(5) FIVE-YEAR REAL PROPERTY TAX ABATEMENT FOR
THE SOUTH BEND CHOCOLATE COMPANY
WHEREAS, the Common Council of the City of South Bend, Indiana, has
adopted a Declaratory Resolution designating certain areas within the City as Economic
Revitalization Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as
128 South Michigan Street, South Bend, Indiana, and which is more particularly
described as follows:
Parcel 1: The North Half of Lot Numbered Forty-two (42) and a strip of
land in width, North and South, taken off of and from the entire length of
the South side of a Lot Numbered Forty-three (43) in the Town of South
Bend, being a part of the Northwest Fractional Quarter of Section 12, and
the Southwest Fractional Quarter of Section 1 all in Township 37 North,
Range 2 East of the Second Principal Meridian according to the plat
thereof recorded March 28, 1831, in Deed Record A, page 13, in St.
Joseph County, Indiana.
Parcel II: Apart of Lot Numbered Forty-three (43) as shown on the
Original Plat of the Town, now City of South Bend, which part is bounded
by a line running as follows: Beginning on the East line of the South
Michigan Street in said City, at a point 3 feet North of the Southwest
corner of said Lot Numbered 43; thence running North on said East line of
South Michigan Street, a distance of 18 feet; thence East 165 feet to the
East line of said lot; thence South on said East line 18 feet; thence West
165 feet to the place of beginning.
Parcel III: Beginning 21 feet North of the Southwest corner of Lot
Numbered Forty-three (43) in the Original Plat of the Town now City of
South Bend; thence North 18 %2 feet; thence East to the East line of said
Lot Numbered Forty-three (43); thence South 18 1/2 feet; thence West to
the place of beginning.
and which has Key Numbers 18-3001-0014; 18-3001-0015; and 18-3001-0016, as an
Economic Revitalization Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public
hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5;
and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrance's and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution
designating the area described Herein as an Economic Revitalization Area for the
purposes of tax abatement. Such designation is for Real property tax abatement only and
is limited to two (2) calendar years from the date of adoption of the Declaratory
Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is
qualified for and is granted Real property tax deduction for a period of (5) five years, and
further determines that the petition, the Memorandum of Agreement between the
Petitioner and the City of South Bend, and the Statement of Benefits comply with
Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code
6-1.1-12 et seq.
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved by the Mayor.
-T ~. ~
Member of the Co on Council
o~
PRESENTED ~~~
NOT APPROVED
,~So
ADOPTED g-Z~
~il~~ In Glerl~'~ ®f~fic~
AUG - 7 2006
JO}l}! v pRBEND, }N.
CITY CLERK,
12()0 COUN'T'Y-CIT'Y BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
July 31, 2006 COMMUNITY ~ ECONOMIC DEVELOPMENT
SHARON T. KENDALL
EXECUTIVE DIRECTOR
Council Member Roland Kelly, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
SOUTH BEND CHOCOLATE COMPANY
Dear Council Member Kelly:
Please find attached the Department of Community & Economic Development's report on a
commercial real property tax abatement petition for the above-referenced petitioner for expansion of
a facility located at 128 South Michigan Street. Also attached is a copy of the petition, Statement of
Benefits form, and supporting information.
The report contains the Department's findings relative to the above petition. The petitioner, South
Bend Chocolate Company proposes todevelop anew retail store called the South Bend Candy, Card
& Convenience Store, along with the expansion of the existing cafe and restaurant. The total cost of
the project is estimated to be approximately $750,000 to $1,200,000. South Bend Chocolate is
seeking a (5) five-year real property tax abatement, and a representative of South Bend Chocolate
will be available to meet with the Committee on Monday, August, 14, 2006.
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 235-5825.
Sincerely,
9U.~L.~UC~"]l~
Sharon Terrell
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Sharon Kendall
Don Inks
COMMUNITY DEVELOPMENT' ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 EuueErx LEONARD
Fax: 574/235-9697 574/235-9371
1200 ~.OUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~L ECONOMIC DEVELOPMENT
SHARON T. KENDALL
EXECUTNE DIRECTOR
TAX ABATEMENT REPOR T
TO: SOUTH BEND COMMON COUNCIL
FROM: SHARON TERRELL~
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
SOUTH BEND CHOCOLATE COMPANY
DATE: July 31, 2006
On July 17, 2006, a petition for real property tax abatement consideration for property located at 128
South Michigan Street was filed with the City Clerk by The South Bend Chocolate Company.
Pursuant to Chapter 2, Article 6, Section 2-82 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 (a copy of
which is attached), investigated the area, and makes the following report.
PROJECT SUMMARY
The South Bend Chocolate Company is planning the development of a new retail store called the
South Bend Candy, Card & Convenience Store, along with expansion of the existing cafe and
restaurant. A family area called The Play Cafe will include the installation of a high-tech video
infrared computer game system and state-of--the-art signage and displays. This retail development
will connect with the Gridiron Row building and allow for expansion of both the chocolate cafe and
the restaurant space. The Chocolate Cafe and the restaurant would occupy the smaller building
adjacent to their current locations. Additional space will be rented to other retail stores. Total taxes
abated during the (5) five-year abatement period is between $77,166 and $128,610.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT MINA*N,C.IA-L HL PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 EL~zAaerx LeoNAxD
PAX: 574/235-9697 574/235-9371
Tax Abatement Schedule prepared for: i-Aug-os
SOUTH BEND CHOCOLATE COMPANY
South Bend Portage Township 5 Year Real Property Abatement Schedule*
Total estimated Project Cost: $750,000
Base Assessed Value: $637,500
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 5.1524%
Assume constant SRTC of: 21.6906%
Assessed Gross Less Net Percent Tax Tax
Year Value Tax SRTC Tax Abated Abated Paid
1 637,500 32,847 7,125 25,722 100% 25,722 0
2 637,500 32,847 7,125 25,722 80% 20,578 5,144
3 637,500 32,847 7,125 25,722 60% 15,433 10,289
4 637,500 32,847 7,125 25,722 40% 10,289 15,433
5 637,500 32,847 7,125 25,722 20% 5,144 20,578
128,610 77,166 51,444
Total Taxes Due During Abatement: 128,610
Total Taxes Abated During Abatement: 77,166
Total Taxes Paid During Abatement: 51,444
' -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
Find ierk'~ ®~fice
JUL 3 1 2006
JD~td VQ ~RDE
cn °cND, IN.
C(71r CLE<<r:,
Tax Abatement Schedule prepared for: 1-Aug-O6
SOUTH BEND CHOCOLATE COMPANY
South Bend Portage Township 5 Year Real Property Abatement Schedule'
Total estimated Project Cost: $1,250,000
Base Assessed Value: $1,062,500
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 5.1524%
Assume constant SRTC of: 21.6906%
Assessed Gross Less Net Percent Tax Tax
Year Value Tax SRTC Tax Abated Abated Paid
1 1,062,500 54,744 11,874 42,870 100% 42,870 0
2 1,062,500 54,744 11,874 42,870 80% 34,296 8,574
3 1,062,500 54,744 11,874 42,870 60% 25,722 17,148
4 1,062,500 54,744 11,874 42,870 40% 17,148 25,722
5 1,062,500 54,744 11,874 42,870 20% 8,574 34,296
214,350 128,610 85,740
Total Taxes Due During Abatement: 214,350
Total Taxes Abated During Abatement: 128,610
Total Taxes Paid During Abatement: 85,740
' -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current taz rates.
ail d CI~9'-'~'~ 4fiice
JUL 3 1 20~~
JO".tt Y~s~ADG ^ ~~~~
~ r, 11. til. ttl~, II'1.
CITY CL'e""^;.,
JUL-14-2006 10 53 COMM & ECON DEV 574 235 9021 P.17i25
CITY Ol~ SOUTH BEND
PETITION FOR REAL. PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of real property, located within the City of South Bend,
hereby petition the Common Council of the City of South Bend for real property tax
abatement consideration and pursuantto f.C_, 6-1.1-12.1-1, et sea.• and South Bend
Municipal Code Sec. 2-76 et- sep.• for this petition states the following:
1. Describe the proposed redevelopment or rehabilitation project, including
information about physical improvements to be made, the proposed use of the
improvements, and. a general statement as to the importance of the project to
your business:
d~Ed~,cpPM~T O•F l~ lfZw Q~TL 51Z~~~Sdvrt-~~1~ ~JDY~~/~,~1~ ~~NVE,US~~C`£
- SID,~~, EK~A-~5=o~ ot= ~~ ~K~Sr~~ c~eau4r~ ~FE. -
~- rcc~
~~4-(~~' IJ 71~- Ac~4-~; G4~~ ~s~L ~ r'~ e lvd¢ ~Tt~ zvSr~cL;47z~,c~ 6~- ~4 t~i-c-f/
T~ C l-E 1/ri L~E'p T_.cJ ~~/~. i~D Cbrit r~c'T ~'~2 ~-~4>lf E 5 ~5'T~ ,(,(~ ST34Tf-D ~T~~-r~-T
srG-,v ~ C E ~4N D ~ts~~~4 YS .
Land Size acres; Building Size s ft_
9•
2. Describe the overall nature of the business and of the operations occurring at
the Property (attach additional sheet if more space is needed):
A~T~ SA~L~S, ~~ ~P Kok 5~(.~5~ ~~~t1~~'~ ~o~?
~-#fL~D~i'~~ M~~.~,~G- ~oont i=~>a tom- ~c 3~?-~ use .
3. Estim to the dollar value of the project (excluding land): $
~~ 50~ Dc~O. ~o '~~ DD GAD
4. The current assessed valuat on of the real propert before reha ' '
redevelopment, economic revitalization, or improvement: $ bilitation,
I~al~~a ~-T ego, oc~. ~~~~ ~~,oc~.
S_ (a} The real property for which tax abatement consideration is petitioned (Property) is owned
(RCY 8/l 1/Q3)
JUL-14-2006 10 53 COMM & ECON DEV 574 235 9021 P.18i25
or to be owned by [he following individuals or eotporatiotts (if the business organization
is publicly held, indicate also the name ofthe corporate parent, i f any, and the name under
which the corporation has filed with the Securities and Exchange Commission):
. NAME. ADDRESS IN'X'EREST("/o)
\~~ BEU~ C!-fD~C'ot~TE 3~Xj (i.~. SA~v~tt~L~ Sf.
~'.~~JEL.l7P11i1c~T Cb2P~ ~uTl-f~-7t1D,? ~~{(~ol~
(b) The following other person{s) lea,Se, intend to lease, or have an option to buy the Property
(include corporate information as required in 5{a) above, if applicable);
NAME ADDRESS ~~~(%)
~uT~-I ~~ 1j CF-f~~-7`~ 33cx~ lc~ . ~ivi~JL~. ~~ • ,
6_ The commonly known address of the Property is:
tag ~, ~~. ~-z~~-~ ~T
7. The Key Number(s) of said property is:
~S ~ 1--bbl~ ~ 1 f3 -3CY~I -cX~i S, l8-~~- ~ l Lo
8- `gal description of the above address is attached hereto, marked "Exhibit
A," and incorporated herein.
9• ap andlor plat describing the property is attached hereto, marked "Exhibit
B,' and incorporated herein.
10. Photographs of the property, taken w' o (2) weeks of filing of this petition,
are attached hereto, marked "E it C " nd incorporated herein.
1'l . The redevelopment or rehabilitation project itself will create ~_ full-time and
-1,~ part-time permanent jobs within the first year, representing a new
annual payroll of $ ~ and will maintain u ~- existin
full-time and-~#L'----- existing permanent part-time obs includi permanent
permanent full-time minority employment of and existin ng exis#~ng
time minority employment of ~U ~ 9 permanent part-
with an annual payroll of ~
12. The projected annual salaries for each new position indicated above are
estimated to be as follows (If more space is needed, please attach a separate
sheet): ld t~.,q~T TTW(!= ~-~LbyEES
~ 20 h~~• ~F~ cc)~~1~ -7, dOV
(Rev ii/I 1/03) o? F-u (( ~YYI ~ ~'rV1t~Cc7Y~~ 5 @ 2~1.G~
JUL-14-2006 10 54 C~MM & ECON DEV
574 235 9021 P.19i25
13. Provide current employment wage information including; base rate; cost-of
living allowances, hazardous-duty pay, incen#ive pay including commissions
and production bonuses, on-call pay and tips. Do Not Include; back pay, jury
duty pay, overtime pay, severance pay, shift differentials, non-production
bonuses, and tuition reimbursements {average hourly rate or range):
Full-Time Part-Time
Laborers $ q,oo ,~~~~~), $ .~.oo
T,~ef-irri~al ~~-a~~ $ _ '7-s~ , ~J~-~ !<~.ly. $ 7~so
Managerial $ ~~p q ft,~q~~~k • $ N~~
Administrative $ i~.p~ ,~ ~,~ ~ , $ ,~~
14. Indicate whether your company provides the following benefits (use Y/N):
X Health Care Benefits ~u.ll 7n~t E~~y~~
.. 7~_ Pension Plan ~~ ~~ ~ -~
Employer Provided Training (recognized or certified training/educational
courses or programs)
Day Care (provide or contribute to the cost of child day care for its
employees)
Transportation Assistance (provide direct or indirect support and
assistance to its employees without private transportation to get back
and forth from residence to place of employment)
Employer-Assisted Housing Program (provide an employer-assisted
home ownership program)
Targeted Hiring Preference (provide hiring preference for residents
of Census Tracts designated by the Community & Economic
Development Dept. that have the highest unemployment or the
highest percentage of low and moderate income individuals).
(Additional information may be requested for verification of the above
items)
15. List the real and personal property taxes paid at the location during the
previous eve years, whether paid by the current owner or a previous owner_
Year Rea! Property Taxes Personal Property Taxes
C--vra2.~uME~ i Dw~J~,IJ ~ ~O ~~ES ~~-rD r-~.l 7"~fc ~f~r ~~/r25.
(Rev $!i 1/03) .~.. ~~ 5-~• So~~ C1~U~V-I`~ ~E}~}5U~2~i ~ vT't'1-CE. l
JUL-14-2006 10 54 COMM & EC~N DEV 574 235 9021 P.20i25
(this information may be obtained from the St. Joseph County Treasurers office 235-
9531) ,
16. Please list the number of full-time and part-time minority employees for each
of the last three years: V,1E ~o DoT ~cK t~~s-r ~n~t~j~y~s ~ ~~~~~ ,
Year ~ _
Full .Part ~ Full Part Fuli Part
Black
Hispanic
Asian
Indian
Other
17. Does your business maintain an affirmative action plan or other similar plan
in order to achieve racial diversity? If yes, please briefly indicate specific
goals, objectives, and means as designated by your plan:
i`xe~~~ -r~F~ C. 12~a~r~~M~~7-s v~ ~~~G LELTSc.x~~o,v.
~ar-~e-r~ Nls~o,e.~tr~s,~~i~) gy woe wt~ uP r~t~ rn~3o~r~
~~,
18. Indicate whether or not your project meets any of the following criteria
/(contact Community & Economic Development Dept_ 235-9335 for information.on
this section):
Conversion to residential use of a commercial "Eligible Building" as
designated by the Community & Economic Development Dept.
Rehabilitation of a building that is either designated as a Na#ional
Register or focal landmark or is eligible for nomination as one, located
in a National Register or local landmark district, or rated as
Outstanding or Significant in the most recent Historic Preservation
Commission county wide survey.
Rehabilitation and reuse of a property that is designated a Problem
Property by the Community and Economic Development Department
Pays for the cost of cleaning up a "Brownfield," which is any site,
building facility or complex that has been designated a Brownfield by the
(Rev 8/11/03) 4
JUL-14-2006 10 54 COMM & ECON DEU 574 235 9021 P.21i25
Community and Economic Development Department.
Achieves a physical element identified in a development or revitalization
plan that has been approved by the Council
79. Is your business based upon licensing intellectual property from research
conducted at a public or private university, college, or community college located
within St. Joseph County, Indiana? If es,
research based aspects of the business (attach additional sheet ifi more s °f the
needed}: ~ pace is
~~
20. hoes your business financially support ~a Munici al t=acili
owned park, recreation center, cultural, arts, or entertainment fac lily)? -cipally
.110
21 _ Is your company incurring any of the cost of extension or oversizing of municipal
infrastructure serving the project site? This includes water, sewer, drainage
facilities, wastewater treatment facilities, road and street improvements, street
lighting, trafFtc control and related public improvements (attach additional sheet if
more space is needed):
!f0
22. Information is required on the companies through which construction ma#erials
will be purchased for the project. (Please complete the table on page 8 of this
application). ~~~5~-f12UC-I-=D,V Hxl-5 SOT B~G~,~.
23_ Information is required on the construction companies that will be utilized for
construction of the project. (Please complete the table on page 9 of this
application). ~pu~a~r~,~s fd~A-vim ~~~,~ =,~~vr~cv~D ~,-~ No7-
ffre ~ ~4-s o -_ ~~'~ Y
24. No building permit has been issued for construction on the properly in
connection with the improvement in question as of the date of frling of #his
petition, (The Property Owners signature at the end of this application is
(Rev 8/11/03)
S
JUL-14-2006 10 54 COMM & ECON DEV 574 235 9021 P.22i25
verification of this statement).
25. The Standard Industrial Classification (SIC) or North American Indust
Classification Systems (NAILS) major group within which the proposed project
would be classified, by number and description: ~
~~399~ 6~2 ~~CLAL ~y ~P~rL
2fi. The Internal Revenue Service Code of Principal Business Activity b which the
proposed project would be classified, by number and description: y
~ /~3~ao ~A,vD y ~c.~s .
.27. The current use of the Prop rty is a,y-~ .
current zoning is~ ~ °~C ,~and.the
(This information m~~ to n) and ~ _ (height and area).
Y ed from the Building Department 235-9554).
28. Has your business been granted previous tax abateme ~
provide type {real and/or personal property) and date of approvalf yes' please
Y~5 r ~~2sov»I ~ro~~r-f -y ~~j98
29. Other anticipated public financing for the project including, if an , indust '
revenue-banding to be sought or already authori2ed, assistance through the
United States Department of Housing and Urban Development funds from the
City of South Bend, Small Business 1~ssociation Sections 503 and 504 financin
through the Business Development Corporation of South Bend, Mishawaka and
St. Joseph County, Indiana, Industria(Revolving Fund, Neighborhood Busine
Development Corporation, Corporation for Entrepreneurial Develo ment• or
other public financial assistance, including but not limited to public works
improvements.
~1(ON~
30. The following person(s) should be contacted as Petitioner's a ent r
additional information and public hearing notifications: 9 egarding
(xcv sil ~:~a:~
6
JUL-14-2006 10 55 COMM & ECON DEV 574 235 9021 P.23i25
Name: M ~fRK ~RKE~
Address: 33cx~ kJ, ~A-Ivl~[~" ~;
City, State, Zip: ~~~ B~vD,si~l ~~~t9
Telephone: shy-a3.32s~-7
31. Please indicate the name, address, and telephone number of the person who
will work with Employment Training Services (ETS) for employee recruitment,
and sign the ETS form attached to the peti#ion if the real tax abatement is for
warehouse or industrial developments. .
Name:
Address:
City, State, Zip:
Telephone:
WHEREFQRE, Petitioner requests that the Common Council of the City of South
Bend, Indiana, adopt a declaratory resolution designating the area described herein
to be an economic revitalization area for purposes of tangible real property tax
abatement consideration, and after publication of notice and public hearing,
determine qualifications for an economic revitalization area have been met, and
confirm such resolution. Petitioner herein hereby verifies that the required $250.00
filing fee to cover processing and administrative costs pursuant to Section 2-84.7 of
the Municipal Code of the~City of South Bend has been paid in full.
Name of Property Owner(s):
So~-~ -ff ~~D CHac~~~'~--rte ~~v ~ ~v P ~c ~ ~s~-
~~
By:
(Si ned ame) ~E5=D~~T-
(Typed or printed name and capacity of signor if
signed by an agent or representative of the
owner.}
F~il~d in Cleric's Office
i) ' +ii.u~,ui:
(Rev 8/I E•'U_ ~Cr::3, ;;.; ^~''-
'] CITY CLchK, 5.~. Ei~P7, !"J.
EXHIBIT A
LEGAL DESCRIPTION
Description:
Parcel 1: The North Half of Lot Numbered Forty-two (42) and a strip of land in
width, North and South, taken off of and from the entire length of the South side of a
Lot Numbered Forty-three (43) in the Town of South Bend, being a part of the
Northwest Fractional Quarter of Section 12, and the Southwest Fractional Quarter of
Section 1 all in Township 37 North, Range 2 East of the Second Principal Meridian
according to the plat thereof recorded March 28, 1831, in Deed Record A, page 13, in
St. Joseph County, Indiana.
Parcel II: A part of Lot Numbered Forty-three (43) as shown on the Original Plat of
the Town, now City of South Bend, which part is bounded by a line running as
follows: Beginning on the East line of the South Michigan Street in said City, at a
point 3 feet North of the Southwest corner of said Lot Numbered 43; thence running
North on said East line of South Michigan Street, a distance of 18 feet; thence East
165 feet to the East line of said lot; thence South on said East line 18 feet; thence
West 165 feet to the place of beginning.
Parcel III: Beginning 21 feet North of the Southwest corner of Lot Numbered Forty-
three (43) in the Original Plat of the Town now City of South Bend; thence North 18
%2 feet; thence East to the East line of said Lot Numbered Forty-three (43); thence
South 18 '/2 feet; thence West to the place of beginning.
Tax Key Nos.:
18-3001-0014; 18-3001-0015; 18-3001-0016
Address:
128 South Michigan Street
South Bend, IN 46601
ti
22. Ire the following chart please indicate companies that were used for purchasing materials used in the construction or
A
re abilitation associated with the project. Include the location of the company, description of the materials, and cost of the rv
raterials. Additional information may be requested for verification of this information. (If more space is needed, please
photocopy this page)
Name anr~ Artrlraee nP/-''n.~,.,......
-- --- - - ~•• ~ ,ic,u a «un vi iviaiertals ~ Cost of IVlateriats
~'D
~.l
f
E ~N
<.:~ c_n
~ G3 0
i„n
A
~~i
~~
~ C7
47
'_ Z
~~ Z
O J
~
~ U
7
~..)
(Rev $/tl/D3) $
LL
O
--I
D
r
N
23. In the following chart please list the companies that will be used for the construction or rehabilitation associated with the
project. Indicate the name and address of each company; list the dollar amount of the work to be provided by each company;
indicate whether ar not 100°l° of the workers are employees of that company or independent contractors; indicate ~vliether or not
the company pays workers wages that meet the wage rates for each classification of laborers and mechanics published by the U.S.
Department of Labor; indicate whether or not the company contributes to a health plan for its employees; indicate whether or not
the company contributes to a pension plan for its employees; and indicate whether or not the compan~+ maintains an affirmative
action plan or other similar plan to achieve racial diversity. Additional information maybe requested for verification of this
information. (If additional space is needed, please photocopy this page).
Construction Company Cost a1' Aft Workers Pay 'Contribute Contribute Maintain
Name and Address ~ Work Employees or Wage to a to a Affirmative
ar independent Rate Health • Pension Action
contractors /n) Plan ~/n Plan (/n Plan (vln
~,
w~
E'.
i •~ i
I
•~;: a 7
(Rev 8?l 1?03)
9
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m
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Exh~ 6. ~" a
124 North Micltigan Street, Redevelopmertt Project
.Summary
The South Bend Development Corporation (SBDC) and the South Bend Chocolate Company
(SBCC) proposes to purchase the former Osco's building for rehabilitation into an upscale retail
development called Michigan Street Shops. This retail development would connect with the
Gridiron Row building and allow for expansion of both the Chocolate Cafe and the restaurant
space formerly occupied by The Vine. Michigan Street Shops will keep standard operating
hours and a marketing budget.
The Proposed Development
The former Osco's building occupies 11,847 square feet between the Gridiron Row Building and
the Jefferson Center Building. Michigan Street shops would be developed in this space with
entrances and storefront facing both DeRue Court and Michigan Streets.
The building is actually composed of two separate buildings with a 1970's era stuccoed facade
that gives the impression of one storefront. The SBDC and the SBCC companies propose to
return the Michigan Street facades to their original look (or historically similar) and add a central
entry way and a hallway from Michigan to DeRue Court.
The Chocolate Cafe and the restaurant would occupy the smaller building adjacent to their
current locations. The additional space will be rented to other retail stores.
Rationale
The South Bend Chocolate Company has had great success in downtown South Bend with its
Chocolate Cafe and the SBDC has made the Gridiron Row Building one of the cities nicest, most
affordable, multi-use buildings in the downtown. However, both companies have concern about
the adjoining retail (or lack of it) and the negative effects this may have on business. Also
Jefferson Building, an office building in the same block, has an uncertain future and its success is
important to both companies' interests.
The SBCC and SBDC are the best developers for this parcel and the Michigan Street shops for
three reasons. First, proximity. Second, experience in both what makes downtown retail and
development work. Third, commitment and vision. Both companies are committed to seeing
South Bend improve and have the retail vision (and key tenants) that are required that a purely
profit-driven developer would not have, consider, invest or risk. Fourth, this project, if
successful, could help stabilise (if not improve) the Jefferson Building and increase downtown
retail while at the same time setting a good model for other sustainable retail developments.
Positive Effects on the Downtown
The SBCC and SBDC believe the highest and best use of the former Osco building will be to
blend the odd and new into a major downtown and regional amenity. The key to this project and
its positive ripple effects will be the positive architectural changes made, the creative reuse of
both front and back of the building, the correct tenant mix, creative parking options and
continued downtown improvements by DTSB and the City.
Obstacles to the Project
There are several areas of concern surrounding this development. One, risk. The downtown _
retail market is better than in the past but is still very risky. This block particularly only has
- three retailers on it. Two, high costs of development, acquisition, tax uncertainty, etc. Three, -
retail rent rates in downtown are at $10.50 or less and city effectively sets base retail rates. Four,
project is only partially tenant driven. This is a tenant driven market. Five, complexity and .
- ~ expense of urban developments. Six, parking problems. Seven, chance of real returns lies iri
success of ripple effect. Can downtown South Bend ever become the hot place to be? Or a hot
retail/office/ commercial market? Eight, overall costs of project.
Incentives to the Project
There are several potential incentives. One, Chocolate Cafe and restaurant appear to need more
space. Two, positive public relations boost for South Bend Chocolate. The company appears to
be selling South Bend as much as its chocolate products. Three, past success rate of SBCC and
SBDC. Four, the city may have a plan for the block which would provide additional incentives
and help. Five, DTSB has facade grants, many which may be available. Six, DTSB and City
(despite setbacks) appear to be making headway into the complex issues surrounding downtown
South Bend and its future.
Recommendations
We advise to open up discussion with Redevelopment about the Michigan Street Shoppes
project. Areas of concern and focus by SBCC and SBDC should be cost/benefit analysis, risk
factors, and instability of downtown market in general. Though both companies have experience
in this market, nothing should be taken as given. Also note that the SBCC and SBDC's current
developments are tenant driven and more stable office/retail markets that would be entered into.
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Buildin size 11,847
Rental) 9,000
Gross rent er s . ft. - $9 - $12.50
Building o erations s . ft. $5 - $7
Taxes $1 - $1.50
Net annual income
Ca rate
Value of buildin
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Costs
HVAC/Plumbin lectrical s . ft. $18 - $22 -
Remodeling er s ft. $25 - $45