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HomeMy WebLinkAbout4784-19 31 Nimtz Land Designating Real Property Tax Abatement RESOLUTION No. 4784-19 Passed by the Common Council of the City of South Bend, Indiana April 8, 20 19 . Attest: u7f GLi �� City Clerk Kareemah N. Fowler Attest' President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 8, 19 20 401/0" ,,,c. y � City Clerk K.reemah N. Fowler Approved and signed by me 4ftt 1 20i' / - - ecet,0 - United States of America *,► Certificate STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss: I, Kareemah N. Fowler, Clerk of the City of South Bend, County of St. Joseph, Indiana, hereby certify that the attached and foregoing is a full, true, and correct copy of RESOLUTION 4784-19 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 24605 CLEVELAND ROAD, SOUTH BEND, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SIX(6)YEAR REAL PROPERTY TAX ABATEMENT FOR 31 NIMTZ LAND,LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APRIL 8,2019. PRESENTED TO, APPROVED AND SIGNED BY MAYOR PETE BUTTIGIEG, APRIL 9,2019. ATTEST: TIM SCOTT, PRESIDENT OF THE COMMON COUNCIL ATTEST: KAREEMAH N. FOWLER, CITY CLERK FILED - - E EIVED- MAY 17 2019 I HAY 1 12019 DI STJOSEPH COUNTY ST JOSEPH COUNT',"AUDITOR� tIU ', t . ASSESSOR H • the original of which is now on file in the office of the Clerk of the City of South Bend, St. Joseph County, Indiana. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of the City of South Bend, St. Joseph County, Indiana, this day of ACEI 20 19 Kareemah N. Fowler Clerk of the City of South Bend St. J eph County, Indiana By: Kareemah N. Fowler BILL NO. 19-30 RESOLUTION NO. 4784-19 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 24605 Cleveland Road, South Bend, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SIX (6) YEAR REAL PROPERTY TAX ABATEMENT FOR 31 Nimtz Land, LLC WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana requesting that the area located at 24605 Cleveland Drive, South Bend, IN. which is more particularly described as: E1/2 E1/2 Se Sw Ex SEnd To State Sec 19 38 2e 04-05 Annexed Fr 04 Per Ord#9428-03 W1/2 E1/2 Se Sw Ex S 40'For St Sec 19-38-2e 04-05 Split To City For St Per Tr 14573 2-3-04 and which has Key Numbers 025-1011-0189 and 025-1011-018901 be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS,petitioner has agreed to and has accepted responsibility to report any changes in the final legal description and to report the final, appropriate Key Number to the Department of Community Investment and to the Office of the City Clerk; and WHEREAS,the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code § 6-1.1-12.1, et seq., and South Bend Municipal Code Sections 2-76,et seq., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS,the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable • • for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to three (3) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of six(6)years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17. Year 1 - 100% Year 2 - 100% Year 3 - 100% Year 4 - 95% Year 5 - 95% Year 6 - 95% SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Tim Scott, Council President South Bend Common Council • b - J o 1 Filed in Clerk's Office APR 0 3 2019 KAREEMAH FOWLER CITY CLERK,SOUTH BEND,IN CITY OF SOUTH BEND CQ'v1vU\ ITY INVESTvIE\T Council Member Gavin Ferlic, Chairperson April 3, 2019 Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Real Property Tax Abatement Petition for: 31 Nimtz Land,LLC (an affiliate of Holladay Properties) Dear Council Member Ferlic: Please find attached the Department of Community Investment's report on a real property tax abatement petition for the above-referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. 31 Nimtz Land, LLC is proposing to invest $12,940,000 in the construction of a new distribution center(speculative building)at 24605 Cleveland Road,South Bend,IN. The report contains the Department's findings relative to the above petition. The project meets the qualifications for a(6) six-year real property tax abatement and a representative from 31 Nimtz Land and Holladay Properties will be available to meet with the Committee on Monday,April 8,2019. 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 235-5823. Sin erely, Dan el uckenmeyer Director Economic Resources& Business Development DANIEL J.BUCKENMEYER ALKEYNA ALDRIDGE PAMELA MEYER TIM CORCORAN BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COMMUNITY RESOURCES EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 14003 County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov Filed in Clerk's Office APR 0 3 2019 T,-IX ABATEMENT REPORT IAAEEITAI B=OWLER I CITY CLERK,soLr�T H RIwIv© It _.1 TO: South Bend Common Council FROM: Angelina Billo SUBJECT: Real Property Tax Abatement Petition For: 31 Nimtz Land, LLC (an affiliate of Holladay Properties) DATE: April 1,2019 On April 1,2019, a petition for real property tax abatement consideration for property located at 24605 Cleveland Road, South Bend, 1N was filed with the City Clerk by 31 Nimtz Land, LLC. Pursuant to Chapter 2,Article 6, Section 2-84.2 of the Municipal Code of the City of South Bend,this petition was referred to the Department of Community Investment 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 Investment has reviewed the petition,investigated the area,and makes the following report. PROJECT SUMMARY • 31 Nimtz Land, LLC (an affiliate of Holladay Properties) is proposing to invest more than $12,000,000 in the construction of approximately 225,000 sq.ft.speculative industrial facility to be located on the NW corner of US 31 and Nimtz Parkway. • The new facility will attract companies that are either expanding their operations or establishing new operations in South Bend.The building will have 40 dock positions to accommodate modern distribution users. • Total project cost excluding equipment is approximately$12,940,000. • Petitioner is qualified for a six-year real property tax abatement. • The estimated amount of taxes phased-in for the six-year abatement is$1,785,826. Estimated paid taxes paid for the six-year term are$149,218. Current annual taxes are under$6,500. Holladay Properties,a parent of 31 Nimtz Land,is a full-scale land development,design/build,and fully- integrated real estate company, and property management firm. The company has developed over 20 million square feet of commercial space and actively manage over 14.3 million square feet of office, industrial,retail,multi-family,hotel,and healthcare space.Their medical office management portfolio is one of the largest in the country. EMPLOYMENT IMPACT Due to the speculative nature of the building, only indirect jobs will be retained or created. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner, 31 Nimtz Land,LLC has not been granted or associated with any previous tax abatement. 2. The Area Plan Commission has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. The Building Commission has reviewed the petition and finds no building permit was issued. 4. The property is located in the River West Development area. 5. 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