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HomeMy WebLinkAbout5119-25 Confirming Resolution - Real Property Tax Abatement for 225 and 229 South Michigan Street United States of America 2025-04405 RECORDED AS PRESENTED ON * 02/27/2025 09:11 AM * *aw �**iCANDACE S.BROWN *r ►`�• ST.] M COUNTY -RECEIVED- * '�'*` PGS. 11 FEE 2[,LED - FEB 2 7 2025 • lo FEB 2 7 2025 ST.JOSEPH COUNTY I! AUDITOR ASSESSOR ST. JOSEPH COUNTY Certificate STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss: I, Bianca L. Tirado, 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 NO. 5119-25 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 225 SOUTH MICHIGAN, SOUTH BEND, INDIANA 46601 AND 229 SOUTH MICHIGAN, SOUTH BEND, INDIANA 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) REAL PROPERTY TAX ABATEMENT FOR RSPG GLOBAL CONSULTING LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FEBRUARY, 10, 2025 PRESENTED TO APPROVED AND SIGNED BY MAYOR JAMES MUELLER, FEBRUARY, 18, 2025 ATTEST: CANNETH LEE, PRESIDENT OF THE COMMON COUNCIL ATTEST: BIANCA L. TIRADO, CITY CLERK 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 WI' day of Februa.rt 20 ZS ,,SQUTli`_ Bianca L. Tirado If 0 ��'����,f..t'� Clerk of the City of South Bend r„,�� :.� �', St. Joseph County, Indiana iY `�►''�. � � j0. ' 14? � � NI�. ���� al Deputy City Clerk rn � 865 RESOLUTION No . 5119_25 Passed by the Common Council of the City of South Bend, Indiana February 10, 25 20 Attest: City Clerk Bianca L. Tirado Attest: "y`y�k01 9- President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana February 11, 20 25 j(/ City Clerk Bia ca L. Tirado Approved and signed by me E. t l i 20 25 jill Mayor 4111111.1111 fir ` \ J;i_ 18 6 5 '„ BILL NO. 25-13 RESOLUTION NO. 5119-25 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 225 S. Michigan, South Bend, Indiana 46601 AND 229 S. Michigan, South Bend, Indiana 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) REAL PROPERTY TAX ABATEMENT FOR RSPG Global Consulting LLC WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as an Economic Revitalization Area for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area described as: Key Number: 71-08-12-157-010.000-026 Local Parcel Number: 018-3007-0248 Commonly Known As: 229 S. Michigan Street Legal Description: 24'S SIDE LOT 287 O P SO BEND Key Number: 71-08-12-157-009.000-026 Local Parcel Number: 018-3007-0247 Commonly Known As: 225 S. Michigan Street Legal Description: 42'North Side Except 5 3/8 North Side Lot 287 Op South Bend 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, 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; and WHEREAS, the Council adopted Declaratory Resolution No. 5107-25 on January 13, 2025. 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 mixed-use development real property tax abatement only and shall expire on December 31, 2027. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted real property tax deduction for up to a period of eight (8) years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 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. Year 1 - 100% Year 2 - 95% Year 3 - 95% Year 4- 90% Year 5 - 80% Year 6 - 80% Year?-60% Year 8-50% 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. 6„, Canneth Lee, Council President South Bend Common Council Attest: f ,I Biai a irado, i Clerk Office of the Ci Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana, on the 11 th_day of February , 2025, at 12 o'clock p.m. Bianca rado, City Cler Office of the City Clerk n Approved and signed by me on the I day of 1 �1•.tt ,2025,at Li o'clock t.m. Jame Mueller, Mayor City f South Bend MEMORANDUM OF AGREEMENT (MIXED-USE REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of February 9, 2025, serves as confirmation of a commitment by RSPG Global Consulting LLC ("RSPG Global Consulting") and Ben Miller or His Assigns ("Ben Miller") (each an"Applicant" and collectively the"Applicants"), pending a February 10,2025,public hearing,to comply with the project description,job creation and retention (and associated wage rates and salaries) figures contained in its petition, Statement of Benefits,and attachments and this Agreement. 1. Property Associated with the Abatement and Responsibilities of the Applicants. At the time of this Agreement,the property is located at 225,227,and 229 S.Michigan Street,South Bend,Indians 46601, and has Key Numbers 71-08-12-157-009.000-026 and 71-08-12-157-010.000-026. Throughout the duration of the abatement, the Applicants shall promptly report any changes in the address or Key Number of the property receiving the abatement to the Department of Community Investment and to the Office of the City Clerk. Moreover,the Applicants also shall report any material changes or improvements made to the property subject to the abatement including changes as the result of subdividing,replatting, or otherwise. The Applicants agree that failure to promptly report changes can result in a finding of noncompliance on behalf of the Applicants under the commitments of this Agreement. 2. Commitments of City and Applicants. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Common Council(the"SBCC"),the City of South Bend, Indiana,(the"City")commits to provide an eight-year (8)mixed-use real property tax abatement for the Applicants,based on the Applicants' commitment set forth in its Application. The Applicants commit to completing the following(the"Commitments"): (a) making total combined real property expenditures of no less than Four Million dollars ($4,000,000.00) for the renovation of an existing structure totaling approximately Thirty-Eight Thousand(38,000)square feet at property identified in Section 1 of this Agreement; (b) creating at least eleven (11) permanent full-time jobs with a total estimated annual payroll of at least Eight Hundred Thousand and Eight Hundred dollars($800,800.00)as outlined in its Application; and (c)acting in good faith to complete the project as described in its Application. 3. Applicants' Compliance with City and State Laws. During the term of the abatement, the Applicants shall comply with Chapter 2,Article 6, of the South Bend Municipal Code, entitled"Tax Abatement Procedures," and all governing provisions of the Indiana Code. During the term of this abatement, the City may annually request information from the Applicants concerning the nature of the Project, the approved capital expenditure of the Project, the number of full-time permanent positions newly created by the Project,and the average wage rates and salaries(excluding benefits& overtime)associated with the positions,and the Applicants shall provide the City with adequate written evidence thereof within fifteen(15)days of such request(the"Annual Survey"). The City shall utilize 1 this information and the information required to be filed by the Applicants in the CF-1 Compliance with the Statement of Benefits form to verify that the Applicants have at all times complied with the Commitments after the Commitment Date and during the duration of the abatement and for no other purpose. The Applicants further agree to provide the City with such additional information as requested by the City to determine the Applicants' compliance with the Commitments and with local and state requirements within twenty(20) days following any such request. Notwithstanding anything herein to the contrary, the Applicants acknowledge that the City may be required to disclose certain documents provided by the Applicants as required by a court order or applicable law. 4. Substantial Compliance and Rights of Termination. The City, by and through the SBCC, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it reasonably determines that the Applicants have not made reasonable efforts to substantially comply with all the Commitments, as defined in Section 2 of this Agreement, and the Applicants' failure to substantially comply with the Commitments was not due to factors beyond its reasonable control,as described in Section 5 below. 5. Factors Beyond Control. As used in this Agreement, factors beyond the control of the Applicants shall only include factors not reasonably foreseeable at the time of designation application and submission of Statement of Benefits which are not caused by any act or omission of the Applicants, and which materially and adversely affect the ability of the Applicants to substantially comply with this Agreement. The Applicants has the burden to communicate to the City any such factors in which it believes is beyond its control and impacting its ability to fulfill the terms of this Agreement or any tax abatement benefit provided to the City. The City reserves the right to investigate the factors cited by the Applicants under this Section 5 to the fullest extent possible and may deny the Applicants' request upon the completion of the City's investigation. 6. Repayment of Tax Abatement Savings. If at any time during the term of this Agreement the Applicants shall: (a)be delinquent or in default with respect to any tax payment in St. Joseph County, Indiana;or(b)cease operations at the facility for which the tax abatement was granted;or(c)announce the cessation of operations at such facility, then the City may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require the Applicants to repay all of the tax abatement savings received through the date of such termination. 7. Notice/Hearing of Termination. In the event that the City determines that the Economic Revitalization Area designation and associated tax abatement deductions should be terminated or that all or a portion of the tax abatement savings should be repaid,it will give the Applicants notice of such determination,including a written statement calculating the amount due from the Applicants, and will provide the Applicants with an opportunity to meet with the City's designated representatives to show cause why the abatement should not be terminated and/or the tax savings repaid. Such notice shall state the names of the person with whom the Applicants may meet and will provide that the Applicants shall have thirty (30) days from the date of such notice to arrange such meeting and to provide its evidence concerning why the abatement termination and/or tax savings repayment should not occur. If,after giving such notice and receiving such evidence, if any,the City determines that the abatement termination and/or the tax repayment action is proper, the Applicants shall be provided with written notice and a hearing before the SBCC before any final action shall be taken terminating the abatement 2 and/or requiring repayment of tax benefits. The Applicants shall be entitled to appeal that determination to a St. Joseph County Superior or Circuit Court. 8. Repayment. In the event the City requires repayment of the tax abatement savings as provided hereunder, it shall provide the Applicants with a written statement calculating the amount due (the "Statement"), and the Applicants shall make such repayment to the City within one hundred twenty (120)days of the date of the Statement. If the Applicants do not make timely repayment,the City shall be entitled to all reasonable costs and attorneys' fees incurred in the enforcement of this Agreement and the collection of the tax abatement savings required to be repaid hereunder. 9. Modification/Entire Agreement. This Agreement and the schedules attached hereto as Exhibit A contain the entire understanding between the City and the Applicants with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings, inducements, and conditions, expressed or implied, oral, or written,except as herein contained. This Agreement may not be modified or amended other than by an agreement in writing signed by the City and the Applicants. The Applicants understand that any and all filings required to be made or actions required to be taken to initiate or maintain the abatement are solely the responsibility of the Applicants. 10. Waivers. Neither the failure nor any delay on the part of the City to exercise any right,remedy, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right,remedy,power,or privilege preclude any other or further exercise of the same or of any other right,remedy,power,or privilege with respect to any occurrence or be construed as a waiver of such right,remedy,power,or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 11. Notices. All notices, requests. demands, and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been received when delivered by hand or by facsimile (with confirmation by registered or certified mail) or on the third business day following the mailing,by registered or certified mail,postage prepaid,return receipt requested,thereof, addressed as set forth below: If to Applicant: RSPG Global Consulting LLC 1650 South Bend Avenue South Bend,IN 46617 Attn: Dawn Martin If to Applicant: Ben Miller 1311 Sunnymede Avenue South Bend,IN 46615 If to the City: City of South Bend,Indiana 227 W.Jefferson Boulevard, Suite 1400S South Bend,Indiana 46601 • Attn: Executive Director of Community Investment 3 12. Governing Laws of Indiana. This Agreement and all questions relating to its validity, interpretation,performance,and enforcement shall be governed by the laws and decisions of the courts of the State of Indiana. 13. Applicants' Consent to Jurisdiction. The Applicants hereby irrevocably consents to the jurisdiction of the Courts of the State of Indiana and of the St.Joseph County Circuit or Superior Court in connection with any action or proceeding arising out of or relating to this Agreement or any documents or instrument delivered with respect to any of the obligations hereunder, and any action related to this Agreement shall be brought in such County and in such Court. 14. Assignment and Transfer Prohibited. This Agreement shall be binding upon and inure to the benefit of the City and the Applicants and their successors and assigns,except that no party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party hereto, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, the Applicants may,without prior written consent:(a)assign and transfer their rights under this Agreement in accordance with Section 15 of this Agreement and (b) assign and transfer their rights under this Agreement to the Permitted Assign. "Permitted Assign" means the affiliated single purpose entity created for purposes of designing, constructing,owning,operating,and maintaining the project which is the subject of this Agreement. 15. Purchase Agreement Between Applicants for Property Associated with Abatement. The Applicants entered into a certain Purchase Agreement for Commercial-Industrial Real Estate dated effective June 3,2024("Purchase Agreement"),under which Ben Miller or his assigns will acquire the property described in Section 1 of this Agreement from RSPG Global Consulting, including all buildings and permanent improvements and fixtures, together with all privileges, easements and appurtenances pertaining thereto including any right,title,and interest in and to adjacent streets,alleys, rights-of-way, leases,rents, security deposits, licenses and permits with respect to the property,trade name,and warranties or guarantees relating to the property onsite the day of payoff. Upon the transfer of the property as contemplated in the Purchase Agreement, RSPG Global Consulting's rights and obligations under this Agreement will also transfer to Ben Miller or his assigns. 16. Valid and Binding Agreement. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon,and all of which shall together constitute one and the same instrument. By executing this Agreement, each person so executing affirms that he has been duly authorized to execute this Agreement on behalf of such party and that this Agreement constitutes a valid and binding obligation of the party. 17. Severability. The provisions of this Agreement and of each section or other subdivision herein are independent of and separable from each other,and no provision chall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part unless this Agreement is rendered totally unenforceable thereby. 18. No Personal Liability. No official, director, officer, employee, or agent of the City shall be charged personally by the Applicants, its employees, or its agents with any liabilities or expenses of defense or be held personally liable to the Applicants under any term or provision of this Agreement 4 or because of the execution by such party of this Agreement or because of any default by such party hereunder. [Remainder of page intentionally blank.] 5 IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the day and year first above written. ['Applicants" "City" •RSPG Global Consulting LLC City of South Ecntl,Indiana I . 2(()acf.,..,',1.‘ Ita -/\,' tiv: c---=7,LA 1- 4------ _ , lawn Martin Carmeth Lee Registered Agent President,South Bend Common Council en Miller or His Assigns ../ -/. , ��j� Ly: a %4 / By: Troy Warrior(/ Chauuperson,Community Investment Ben Miller Committee Approved as to Legal Adequacy and Form this <_. _--) 7-- `D _ day of j . , 2025. Y P...-6.4.-- Erik Glavich C nsel, South Be td mrncm Council Department of Cornmuuity- Investment itAlk BY .—.. J es Mueller Counsel for Applicants I Mayor 6 EXHIBIT A Abatement Schedule Subject to the adoption by the SBCC of a resolution confirming the adoption of Declaratory Resolution No. 5107-25, the property owner is qualified for and is granted a mixed use development real property tax abatement for a period of eight(8)years as shown by the schedule outlined below. Year 1 - 100% Year 2-95% Year 3 -95% Year 4-90% Year 5 -80% Year 6-80% Year 7—60% Year 8-50% 7