HomeMy WebLinkAboutRenewing & Extending the term of the South Bend Urban Enterprise Zone RESOLUTION
4219-12
Passed by the Common Council of the City of South Bend, Indiana
November 26, 12
Attest: City Clerk
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Attest h �� ' =� President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
November 27, 2012
rt �►: - City Clerk
Approved and signed by me 61'61 tM 8 £< 21 20 Z .
Mayor
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RESOLUTION NO. L€uCk
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA,RENEWING AND EXTENDING THE
TERM OF THE SOUTH BEND URBAN ENTERPRISE ZONE
WHEREAS, the Common Council of the City of South Bend, Indiana, (the "Common
Council") has a continuing interest in the economic and community development of the City of
South Bend, Indiana (the "City") and its residents; and
WHEREAS, the South Bend Urban Enterprise Zone (the "Enterprise Zone"),, which is
governed by Indiana Code 5-28-15 (the "Act"), was established on January 1, 2004, all pursuant
to the Act, and has been active in enhancing and promoting economic and community
development within the Enterprise Zone and the City; and
WHEREAS, the current designation term of the Enterprise Zone is scheduled to expire
on December 31, 2013; and
WHEREAS, Indiana Code 5-28-15-10(b) of the Act authorizes the Common Council to
extend the current term of the Enterprise Zone for an additional five (5) years without application
to or authorization by the Indiana Economic Development Corporation; and
WHEREAS, it is the desire and intent of the City to extend the current term of the
Enterprise Zone to continue for an additional five (5) years until December 31, 2018; and
WHEREAS, after being fully advised in the matter,
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, ST JOSEPH COUNTY, INDIANA, THAT:
Section 1. The Common Council finds that the Enterprise Zone facilitates and
promotes economic and community development in the City and for its residents and hereby
reaffirms its support of the Enterprise Zone.
Section 2. The Common Council hereby renews and extended the current expiration
date of the Enterprise Zone from December 31, 2013 until December 31, 2018 pursuant to and in
accordance with Indiana Code 5-28-15-10(b) of the Act.
Section 3. This Resolution and the actions of the Common Council do not limit or
restrict the statutory ability of the Enterprise Zone to be renewed by the Board of the Indiana
Economic Development Corporation in accordance with Indiana Code 5-28-15-10(c) and -10(d)
of the Act.
Resolution of Common Council Extending
and Renewing Lafayette Enterprise Zone Term
Section 4. The City Clerk is hereby directed to file an executed copy of this
Resolution with the Board of the Indiana Economic Development Corporation on or before
December 1, 2013, pursuant to the Act, and to file this Resolution with the permanent minutes of
this meeting.
Section 5. This Resolution shall be in full force and effect immediately upon its
adoption.
[Remainder of Page Intentionally Left Blank]
2 Resolution Common Council Extending
And Renewing South Bend Enterprise Zone Term
PASSED AND ADOPTED by the Common Council of the City of South Bend, Indiana,
this day of 2012.
COMMON COUNCIL OF THE
CITY •F SOUTH ND, IN IANA
// (I
Presiding Officer
Filed In Clerk's Office
9�
JOHN VOORDE
( -L�-�t CITY CLERK,SOUTH BEND,IN
NOT APPROV 3 Resolution Common Council Extending
rr qq And Renewing South Bend Enterprise Zone Term
l�®QP
• TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
12-85 A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, RENEWING AND
EXTENDING THE TERM OF THE SOUTH BEND URBAN
ENTERPRISE ZONE
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
This bill was heard by the Community & Economic Development Committee.
Karen L. White
Chairperson, Committee of the Whole
i1
'N IL
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0•�••■�, November 9, 2012
Urban Enterprise'1
Association
OF SOUTH BEND INC. Mr. Derek Dieter
President
South Bend Common Council
227 W.Jefferson Blvd.
Suite 400
South Bend, IN 46601
Dear President Dieter:
The attached resolution is submitted pursuant to Indiana Code 5-28-15-10(b)
which permits the term of an Indiana Enterprise Zone to be renewed and
extended for an additional five (5)years from the date of its current expiration.
The South Bend Enterprise Zone is approaching its 10th year with an expiration
date of December 31,2013.This resolution would renew and extend the Zone
to a new expiration date of December 31,2018.
The Urban Enterprise Association of South Bend, Inc. (SBUEA) recommends this
renewal and extension and asks for Council's approval. This recommendation is
based on the SBUEA's consideration of long term planning and strategy related
to three issues: (1)the opportunity for Zone businesses to take advantage of
Zone benefits, (2)the ability of the SBUEA to responsibly address the future of
its facility-the Sample Street Business Complex(SSBC,) and (3)the ability of the
SBUEA to attempt to address in some way,opportunities for Zone residents.
While tax benefits under a Zone program have changed over time,there
remains a group of businesses in the South Bend Zone that continue to take
advantage of benefits,and pay the required fee to the SBUEA. Having said that,
the change in benefits and the subsequent decrease in fee revenue for Zones is
a significant issue. For South Bend,this revenue is the only source that the
SBUEA has to continue the operations and maintenance of the Sample Street
Business Complex(SSBC),a multi-tenant facility developed to promote, house,
and incubate Zone businesses. The SBUEA knows it cannot depend long term
on Zone fees to address any deficit in the operations and maintenance of this
facility. To that end the SBUEA has, and will continue to, pursue new ownership
for the Complex.
1200
COUNTY-CITY BUILDING'. The SSBC,originally developed in the late 1980s, has experienced cash flow
SOUTH BEND, IN 46601 challenges,still requires SBUEA subsidy to operate and support building
Phone: ;74,235-966o repairs/improvements, but continues to be an option for small and start-up
Fax: 574/2 15-9697
:...__ ...._..,_...-.,.. ._-:acs
businesses. As part of the SSBC's original donation from the Torrington
Company/Ingersoll Rand,the SBUEA oversaw significant environmental
remediation on the site. This negotiated remediation was the responsibility of
both parties, however there was never a formal close-out using the State of
Indiana's Voluntary Remediation Program (VRP). The SBUEA recently retained
services for a review and documented summary of historical environmental
work on site,and were pleased to be informed the site is basically"clean".
Based on this determination,the UEA made the decision to apply for the VRP.
All costs related to the VRP will be paid by the SBUEA.
The VRP would be significant in that its product is a review and covenant not to
sue certificate from the Indiana Department of Environmental Management
(IDEM). For practical reasons the renewal/extension request is necessary as the
timeframe of the VRP would extend beyond the current expiration date.
Additionally,completion of the VRP and receipt of the certificate would enhance
the SBUEA's long term disposition strategy for the SSBC.
Due to the significant costs related to operating such a facility,the SBUEA has
continued to offer opportunities for direct assistance to Zone residents;
however this has been on a very limited basis. It is projected that a change in
ownership of the Complex would allow for the remaining resources to be
directed towards Zone resident efforts.
Attached for your review is:the list of current Association members; a map of
the Zone,current revenues,a sampling of activities in the past years, a listing of
the current tenants at the SSBC; and, information on some of the successful
business operations that started in the Complex. I will be present,with
members of the Association,to present this request at the November 26,2012
Council meeting. If there are any questions prior to that time please contact
me.
Thank you.
Sincere!
C1'/ 1 Xei
Pamela C. Meyer
Director
cc:Association Members/Staff
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�.�.■■r� Enterprise Zone/Association Highlights 2004-2012
Urban Enterprise's'• 2004
Association • Brownfield Grants-$34,887-Assisted in Studebaker Corridor and Oliver
Plow locations
Or SOUTH BEND INC. Individual Development Accounts—Assisted 4 persons depositing in
accounts for homeownership
Became MWBDC fiscal agent
2006
Enterprise Zone Deduction(new State tax benefit)created
SSBC-11 new leases and 34 renewals
MWBD Director Resigns
Micro Enterprise Grant from IEDC
New building on Burke building—So.Michigan Street corridor
Purchased and landscaped Western Avenue corridor lots
2007
SSBC- 19 new leases 14 renewals/Coordinated MLK Breakfast
2008
SSBC 7 new leases and 14 renewals
$75,000 donation to KROC
Assisted Old Forty Building Supply with process for EZ 1 benefit in order
for them to construct 12,000 sq.ft. warehouse
Coordinated MLK Breakfast
2009
Legislative effort with Association of Indiana Enterprise Zones(AIEZ and
Senator John Broden to defeat SB 236 proposing to eliminate EZ
Deduction and other benefits
SSBC-5 new leases 5 renewals;45 tenants—63%leased
Considered RAITT proposal for SSBC
Administered 3 Western and 1 Miami facade grants
Partnered with SBHA on IDA program committed$2400 for 6 residents
2010
Legislative effort to assist in defeating SB 589 proposing to eliminate EZ
Deduction and other benefits
SSBC 10 renewals;74 leases for 40 tenants-52%leased
LOI w/RAITT-Negotiated Purchase Agreement
2011
SSBC-7 renewals-55%of facility units leased;free/reduced space for MAACC and
Bridges for Digital Excellence
RAITT declines purchase of SSBC
4 Phase II Environmental Assessment completed
2012
Indemnity Agreement/IRF for sewer work
VRP application submission and acceptance
VRP Process started
1200
Masonry,fire suppression,HVAC capital items accomplished
`. �vrtTr-ErTY 136ttoir4c
SOUTH BEND, IN 4660(
Phone:574/235-9660
Fax: 574/235-9697
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