08-08-11 Common Council Meeting Minutes

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REGULAR MEETING AUGUST 8, 2011 designated an economic revitalization area in accordance with I.C § 6-1.1-12.1-1, ND ODE et seq.; and WHEREAS, as part of the Building Project, Huron Partners described for the Common Council that (a) the Building Project (also known as the Huron Building) would be the first improvement scheduled for construction within the Portage Prairie project, (b) the Huron Building would be a speculative building containing approximately 150,000 square feet for single or multi-tenant use, (c) the construction of the Building Project would commence in late 2006 and be completed at an estimated cost of approximately $5,000,000, and (d) the success of the Building Project would be helpful to spur further private investment in the Portage Prairie area; and WHEREAS, as contemplated as part of the Building Project, Huron Partners (a) successfully completed constructed of the Huron Building which consists of approximately 150, 00 square feet, (b) met its proposed investment in construction and tenanting costs for the Huron Building, and (c) has entered into agreements with separate tenants to occupy 100% of the Huron Building (which tenants have reported their headcounts to Huron Partners during 2009 and 2010 of more than 40 employees); and WHEREAS, the (a) Building Project was first assessed for real property tax purposes as 100% complete for the March 1, 2009 assessment date for taxes payable in 2010 (the “First Tax Year”), and (b) notice of such assessment was provided in the form of a tax bill, as opposed to separate notice of assessment, received in 2010; and WHEREAS, as a result of an employee’s departure from Holladay Properties, the Taxpayer (through an inadvertent oversight) did not timely file a Form 322 ERA/RE “Application for Deduction from Assessed Valuation of Structures in Economic Revitalization Areas” (the “Application Form”) on the Huron Building which was to be filed within thirty (30) days after receiving notice of an assessment for the First Tax Year (as contemplated under I.C § 6-1.1-12.1-5); and ND ODE WHEREAS, this oversight was an unusual occurrence for Holladay Properties, which pays significant annual real property taxes and has made diligent efforts in good faith to make all required Indiana tax filings (including abatement filings) on a timely basis; and WHEREAS, the Taxpayer filed a belated Application Form to claim benefits of the property tax abatement for the First Tax Year (together with its filing of an Application Form to preserve the benefit of property tax abatement for subsequent years) with the St. Joseph County Auditor, which Application Form was denied due to the belated nature of the filing; WHEREAS, the Common Council recognizes that (a) the Taxpayer fulfilled its pledge to build a new light industrial facility in the City of South Bend and thereby to enhance the tax base and support employment in the City; (b) the Taxpayer has requested a waiver of its inadvertent oversight for late filing of the Application Form to claim benefits of the tax abatement for the First Year, which the Common Council has the power and authority to approve under Indiana law, and (c) the Taxpayer would have been entitled to receive the tax abatement benefits for the First Year had no noncompliance event occurred; and WHEREAS, the Indiana General Assembly has expressed the policy of this State by enacting laws that expressly permit tax abatement noncompliance events such as the untimely filing of an Application Form to be waived; and WHEREAS, the noncompliance event has been corrected, and a public hearing of the Common Council has been held on the subject of this Resolution. NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, AS FOLLOWS: 23