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HomeMy WebLinkAboutConfirming Tax Abatement - Harrington Orthodontics 3340 Douglas Rd (3 Yr. Real Property) RESOLUTION 4243-13 Passed by the Common Council of the City of South Bend, Indiana March 11 , 13 20 Attest: s City Clerk Attest: b / . 11. President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana March 12, 20 13 Irr tOLL---° City Clerk Approved and signed by me M I Z 20 3 . f" / �� Mayor RESOLUTION NO. L{ 2--`( 3 - L.� A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3340 DOUGLAS ROAD AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A THREE (3) YEAR REAL PROPERTY TAX ABATEMENT FOR HARRINGTON ORTHODONTICS 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 located at 3340 Douglas Road and which is more particularly described as follows: A parcel of land being a part of the Northeast Quarter of the Northeast Quarter of Section 32, Township 38 North, Range 3 East and being more particularly described as follows: Commencing at the Northwest corner of the Northeast Quarter of the Northeast Quarter of said section 32,thence North 89 degrees 16' 18"East along the North Line of said Section 32, 140.70 Feet; Thence South 00 degrees 12 ` 28" West, 45.01 Feet to the point of beginning;thence North 89 degrees 16' 18"East parallel to the North Line of said Section 32, 188.55 Feet to a point on the West Line of Douglas Road Partners Minor,recorded in Instrument Number 0917426 in the Office of the Recorder of St. Joseph County, Indiana; thence South 00 degrees 29' 43"East along said West Line of said Minor, 175.00 Feet; thence South 89 degrees 16' 18" West along the Northerly Line of Lot 3 in said Minor, 187.70 feet to the East Line of a parcel of land recorded in Deed Record 784, Page 80 in said Recorders Office;thence North 00 degrees 12' 28"East along said East Line, 175.02 Feet to the point of beginning, said parcel containing 0.75 acres,more or less, and subject to all right- of-way, easements, covenants, and restrictions of record. and which has Key Numbers 02-2023-054801 presently at this point in time, be designated as an Economic Revitalization Area; 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 and Economic Development and to the Office of the City Clerk; 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 remonstrances 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 three (3) 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. eitk Member of the Common Council Filet! in Clerk's e F O ZQ13 PRESENTED 3 3 JOHN vunhoe NOT APPROVED CITY CLERK, 0 'CE tiEmo,IN A.DOPTEEQ 3 - l-L 3 `off \\\1',111;//„Vr 1200 COUNTY-CITY BUILDING F' ,.\ PHONE 574/235-9371 227 W.JEFFERSON BOULEVARD �.N■ FAX 574/235 9021 ' E ii( \\ PEACE SOUTH BEND,INDIANA 46601-1830 i 1865 ,••" CITY OF SOUTH BEND PETE BUTTTGTEG,MAYOR COMMUNITY & ECONOMIC DEVELOPMENT October 2, 2012 Council Member Henry Davis, 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: Douglas Road Land Partners South, L.P. /Harrington Orthodontics Dear Council Member Davis: When the petitioner first submitted their petition,the petition said that Douglas Road Land Partners South LP was the owner of the land, and that Harrington Orthodontics would be a tenant. In discussion with Paul Phair of Holliday Properties it was brought to staff's attention that the land will soon be sold to Harrington Orthodontics, and that Harrington Orthodontics will be the taxpayer. This would be an exception to policy as office buildings are not approved for tax abatement in that location. A representative of the Petitioner will be available to meet with the Committee on Monday, October 8, 2012. 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 235-9278. Sincerely, Kathy Hahn Economic Development Specialist Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT PAMELA C.MEYER DONALD E.INKS 574/235-9660 574/235-9371 Fax: 574/235-9469 ff,Y*fY(f/Ntjy�, 227 W.JEFFERSON BOULEVARD ,`O ` ,i�l; `IO 4 PHONE:574/235-9371 SUITE 1400 S. . �' "� FAX:574/235-9021 `� ,/ a SOUTH BEND,IN 46601-1830 �' �� �� "� .1865 xnr ..4Y�.Yf.N f1Z)14 CITY OF SOUTH BEND PETE BUTTIGIEG,MAYOR COMMUNITY INVESTMENT SCOTT FORD,EXECUTIVE DIRECTOR Council Member Henry Davis, Chairperson February 20, 2013 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: Harrington Orthodontics Dear Council Member Davis: Harrington Orthodontics previously filed a petition for property located at 3340 Douglas Road.The petitioner proposes to construct a 3,600 square foot office building for a tenant,Dr. Chad Harrington. If approved the abatement would be an exception to policy as office buildings are not targeted for abatement in that location. The estimated cost of the new building is$850,000.At the time the company filed their initial petition they did not have information about their contractors which is needed to set the term of their abatement.They supplied that information on February 20, 2013, and they qualify for a three year abatement. Attached is the point schedule.Attached also are the answers to questions 24 and 25 of the petition which were originally left blank. Total taxes to be paid during a three year term are estimated at$32,325. Total taxes to be abated during a three year term are estimated at$43,648.Per the original petition,the project will create one full time and one to two part time positions with total wages estimated at$40,000, and it will maintain thirteen jobs with a payroll of $521,000. A representative of the Petitioner will be available to meet with the Committee on Monday,March 11,2013. 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 235-9278. Sincerely, � CgariA(/ . Kathy Hahn Analyst-Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Don Inks PLANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RESOURCES JITJN KAIN PAMELA C.MEYER DONALD E.INKS 20-Feb-13 Public Benefit Points Summary* Qualify Earned Available Public Benefit Item: (Y or N) Points Points Proiect Related: . 1. A. Redevelop a Site that has Special Needs N 0 49 B. Develop Based on Local University Research N 0 35 C. Achieve a Physical Element of a Plan N 0 36 Sub-total Project Related: 0 120 2. Super Size Proiects(point values are cumulative): A. 100%to 199% N 0 25 B. 200%to 299% N 0 68 C. 300%to 399% N 0 65 D. 400%and Over N 0 52 Sub-total Super Size Projects: 0 210 3. Construction Related: A. Employ Local Companies N 0 20 B. Purchase Materials from Local Companies N 0 20 C. Require Employees vs.Independent Contract( N 0 19 D. Require Target Wage Levels N 0 22 E. Require Health Benefits Y 22 22 F. Require Pension Benefits N 0 18 G. Maintain Affirmative Action Plan N 0 20 Sub-total Construction Related: 22 141 4. Wage&Benefit Related: A. Pay Target Wage Levels N 0 33 B. Provide Health Benefits Y 34 34 C. Provide Pension Benefits Y 29 29 D. Provide Training Y 28 28 E. Provide Child Care N 0 15 F. Provide Transportation Assistance N 0 14 G. Provide Employer Assisted Housing program N 0 9 Sub-total Wage&Benefit Related: 91 162 5. Workforce Related: A. Create New Jobs Y 42 42 B. Retain Existing Jobs Y 41 41 C. Maintain Affirmative Action Plan N 0 35 D. Provide Targeted Hiring Preference N 0 34 Sub-total Workforce Related: 83 152 6. Pay for Municipal Infrastructure:(point values are cumulative): A. Pay for Oversizing or Upgrading N 0 14 B. Pay for 26-50%of Extension Cost N 0 26 C. Pay for 51-75%of Extension Cost N 0 39 D. Pay for 76-100%of Extension Cost NJ 0 52 Sub-total Infrastructure Related: 0 131 7. Support a Municipal Facility: A. Support a Municipal Facility N 0 84 Total Public Benefit Points: 196 1000 *Qualification for each Public Benefit Item based on best available information at time of application or good faith determination if no information available. Additional Years of Abatement Multi-family Development Projects: From To Additional Years 0 141 0 142 183 1 184 225 2 226 267 3 268 309 4 310 351 5 352 393 6 394 &over 7 Other Development Projects: From To Additional Years 0 300 0 301 357 1 358 414 2 415 471 3 472 528 4 529 585 5 586 642 6 643 1000 7 Subtotal from Points Summary: 196 Base Years of Abatement 3 Additional Years of Abatement: 0 Total Years of Abatement: 3 N o M000[) to o MOM COCf) 0 a) cI 72I ONM x- co `' 0 Ni N- N- d' r d' N Z H CO co ' Ni 6. 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DATE: September 20, 2012 On August 13,2012,a petition for real property tax abatement consideration for property identified as 3340 Douglas Road was filed with the City Clerk by Douglas Road Land Partners,L.P. 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,investigated the area, and makes the following report. PROJECT SUMMARY The petitioner,Douglas Road Land Partners South L.P. intends to construct an office building on a vacant parcel at 3340 Douglas Road. The building is being built for a tenant,Dr. Chad Harrington. The building will be used as a medical office building. If approved, the abatement would be an exception to policy as office buildings are not targeted for abatement in that location. The estimated cost of the new building is $850,000. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT PAMELA C.MEYER DONALD E.INKS 574/235-9660 574/235-9371 PAX: 574/235-9469 CITY OF 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 pursuant to I.C. 6-1 .1-12.1-1 , et seq., and South Bend Municipal Code Sec. 2-76 et seq., 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: - `1-4W Of 5TORy S' ft cc rn* P4-C , f Land Size acres; Building Size 0 0 g `, sq.ft. 2. Describe the overall nature of the business and of the operations occurring at the Property (attach additional sheet if more space is needed): O�Qc.� L.)E2 r- Cy,- -( [/ne 01;Lig- ( 6 e C� ( L c„0, RO LeK)-(S' 3. Estimate the dollar value of the project (excluding land): $ ea) DO 0 4. The current assessed valuation of the real property before rehabilitation, redevelopment, economic revitalization, or improvement: $ 5 (a) The real property for which tax abatement consideration is petitioned(Property)is owned (Rev 10/23/06) 6,( x�----- D®051c�5 �a Za d o�ifner s So, L . or to be owned by the following individuals or corporations(if the business organization is publicly held,indicate also the name of the corporate parent,if any,and the name under which the corporation has filed with the Securities and Exchange Commission): NAME ADDRESS INTEREST(%) o\AINel, TR) ger./40, L i2 4,0i (b) The following other person(s) lease,intend to lease,or have an option to buy the Property (include corporate information as required in 5(a) above, if applicable); NAME ADDRESS INTEREST(%) ' c. 3 ke‘f f; �� ���� c e,J lie/ 6. The commonly known address of the Property is: 3 3 D 1 c c C�-J 7. The Key Number(s) of said property is: 8. A legal description of the above address is attached hereto, marked AExhibit A,@ and incorporated herein. 9. A map and/or plat describing the Property is attached hereto, marked AExhibit B,@ and incorporated herein. 10. Photographs of the property, taken within two (2)weeks of filing of this petition, are attached hereto, marked AExhibit C,@ and incorporated herein. 9�i I 1 . 14e redevelopment or rehabilitation project itself will create full-time and t-a part-time permanent jobs within the first year, representing a new annual payroll of$ c ,Oct ) and will maintain t 3 existing permanent full-time and existing permanent part-time jobs including existing permanent full-time minority employment of and existing permanent part- time minority employment of 54 with an annual payroll of $ sat,000 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): 11 2 (Rev 12/29/06) k . CA<<'�i \✓ . A SS r s l/A,A T �/ S �� per 60c)( !-/( S <<� � rect,‘ s— 2,i u g -140Provide current employment wage information including; base rate, cost-of- living allowances, hazardous-duty pay, incentive 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 $ IS $ Technical $ $ Managerial $ $ Administrative $ 4 1 1 $ ,4;1dicate whether your company provides the following benefits (use Y/N): y Health Care Benefits y Pension Plan 'y Employer Provided Training (recognized or certified training/educational courses or programs) N 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 five years, whether paid by the current owner or a previous owner: Year Real Property Taxes Personal Property Taxes 3 (Rev 12/29/06) Zcor f' Z, /7Z . 0o Zoo? $ � /S"& - 00 2070 38'6, . 00 zo ff (this information may be obtained from the St. Joseph County Treasurers office 235- 9531) ,Please list the number of full-time and part-time minority employees for each of the last three years: Year Full Part Full Part Full Part Black 0 Hispanic Asian 0 Indian Other Q 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: ) 1,41,\-$tvie--- VC- rkie, -0476 P 12- Cf ( r rT) 14(4-1) IJd �9 `i . (off sdNoo. .{ fug• U C , OCrl ANZ.'1 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): lv Conversion to residential use of a commercial AEligible Building@ as j designated by the Community & Economic Development Dept. Rehabilitation of a building that is either designated as a National Register or local 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. A/ Rehabilitation and reuse of a property that is designated a Problem Property by the Community and Economic Development Department A/ Pays for the cost of cleaning up a ABrownfield,@ which is any site, building facility or complex that has been designated a brownfield by the 4 (Rev 12/29106) Community and Economic Development Department. ty Achieves a physical element identified in a development or revitalization plan that has been approved by the Council tads 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 yes, please include a description of the research based aspects of the business (attach additional sheet if more space is needed): Nc) goes your business financially support a Municipal Facility (i.e. municipally owned park, recreation center, cultural, arts, or entertainment facility)? 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, traffic control and related public improvements (attach additional sheet if more space is needed)' °I)ES' v74 /14 5- e.{4,--S cdt,\ vrede MAnformation is required on the companies through which construction materials will be purchased for the project. (Please complete the table on page 8 of this application). Lek be pro,:dec./ pr. o 14) application). ., 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). tJ:// be pr r3 *fie pr;GP v Co 5 re So cko 24. No building permit has been issued for construction on the property in connection with the improvement in question as of the date of filing of this petition. (The Property Owners signature at the end of this application is 5 (Rev 12/29/06) verification of this statement). ' he Standard Industrial Classification (SIC) or North American Industry Classification Systems (NAICS) major group within which the proposed project would be classified, by number and description: i1! (;r)- L) S! L- `90 a t 2 .. The Internal Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description: C0 d L D- i U 27. The current use of the Property is LA v\G( yr 17 and the current zoning is Cow-, (This information may be obtained from the Building Department 235-9554). $3 Has your business been granted previous tax abatement(s)? If yes, please provide type (real and/or personal property) and date of approval. N6 29. Other anticipated public financing for the project including, if any, industrial revenue-bonding to be sought or already authorized, assistance through the United States Department of Housing and Urban Development funds from the City of South Bend, Small Business Association Sections 503 and 504 financing through the Business Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana, Industrial Revolving Fund, Neighborhood Business Development Corporation, Corporation for Entrepreneurial Development; or other public financial assistance, including but not limited to public works improvements. !vo 30.. The following person(s) should be contacted as Petitioner=s agent regarding additional information and public hearing notifications: Pq v k 1A i r e �incke J Ne 6/,L ( Rev 12/29/06)2)4—Lift 2s8- L 0 Name: 7A� Address: 2C) S w\ n 51/ R 1t(i City, State, Zip: �4-e, i � � � cfCG6 Telephone: .$)6( - ts),F C,�a 31.Olease 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 petition if the real tax_abatement is for p�I warehouse or industrial developments. Name: Address: 7\//7 City, State, Zip: Telephone: WHEREFORE, 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 ec ion - o the Municipal Code of the City of South Bend has been paid in full. Name of Property Owner(s): By: (Signed Name) (Typed or printed name and capacity of signor if signed by an agent or representative of the owner.) 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'F aot) _ -0 J 0 4-72- u0 0 . 0 >00; Z 0 (1:3 .._, 0 — — ._ ,,.., " •_, < c co To 0 T13 (') -g2 0 0 •••••••-• 0 47" 'r• CI CU ;.> 0 4..) 1.* ...... c I t-■ N 0 .....• # 'N. ._.1 cc: WorkOne Northern Indiana Chairperson, Community and Economic Development Committee Department of Community and Economic Development City Clerk's Office EXHIBIT A • LEGAL DESCRIPTION: • A PARCEL OF LAND BEING A PART OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 32, TOWNSHIP 38 NORTH; RANGE 3 EAST AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 32; THENCE NORTH 89°16'18" EAST ALONG THE NORTH LINE OF SAID SECTION 32, 140.70 FEET; THENCE SOUTH 00°12'28" WEST, 45.01 FEET TO THE POINT OF BEGINNING; THENCE NORTH 89°16'18" EAST PARALLEL TO THE NORTH LINE OF SAID SECTION 32, 185.55 FEET TO A POINT ON THE WEST LINE OF DOUGLAS ROAD PARTNERS MINOR, RECORDED IN INSTRUMENT NUMBER 0917426 IN THE OFFICE OF THE RECORDER OF ST. JOSEPH COUNTY, INDIANA; THENCE SOUTH 00°29'43" EAST ALONG SAID WEST LINE OF SAID MINOR, 175.00 FEET;THENCE SOUTH 89°16'18" WEST ALONG THE NORTHERLY LINE OF LOT 3 IN SAID MINOR, 187.70 FEET TO THE EAST LINE OF A PARCEL OF LAND RECORDED IN DEED RECORD 784, PAGE 80 IN SAID RECORDERS OFFICE; THENCE NORTH 00°12'28" EAST ALONG SAID EAST LINE, 175.02 FEET TO THE POINT OF BEGINNING, SAID PARCEL CONTAINING 0.75 ACRES, MORE OR LESS, AND SUBJECT TO ALL RIGHT-OF- WAY, EASEMENTS, COVENANTS AND RESTRICTIONS OF RECORD. • F:\ProJecis\2012 Projects\12-0129 DOUGLAS RD ANNEX-REZONE\Annexallon 8 Rezoning\Le al Description for Annex-Rezone.docx Filed in Cleo`,;_e Office AUG 13 2012 JOHN VID CITY CLErIS,SCE T H ELNO,IN TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 13-19 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3340 DOUGLAS ROAD AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A THREE (3) YEAR REAL PROPERTY TAX ABATEMENT FOR HARRINGTON ORTHODONTICS 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 Investment Committee. Karen L. White Chairperson, Committee of the Whole