The URL can be used to link to this page

Home My WebLink About5120-25 Designating Resolution - Vacant Building Tax Abatement for 425 South Michigan Street 2025-05627 RECORDED AS PRESENTED ON 03/12/2025 1-1•4^AK United States of AmeriH�aNwY _ RECORDER ��( N PGS:7 FEES: 25.00 CNI �m A .* N r*X -RECEIVED- *' : .*1 * - FILED - o ,- MAR 12 2025 MAR 12 2025 ST. JOSEPH COUNTY 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. 5 1 20-25 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 425 SOUTH MICHIGAN STREET, SOUTH BEND, INDIANA 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO-YEAR (2) VACANT BUILDING TAX ABATEMENT FOR PENNY HILL HOMES LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FEBRUARY, 24, 2025 PRESENTED TO APPROVED AND SIGNED BY MAYOR JAMES MUELLER, MARCH, 5, 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 `S day of Mare) 20 ZS . Bianca L. Tirado 4- / 50-°Th . 8t. Clerk of the City of South Bend 4.Q� \le ^�!i fir,+d A. St. Joseph County, Indiana lif t "4 t s‘4....A4 v ��,� MAI.4.6,4 i Je t Deputy City Clerk ii:,ciz... , I RESOLUTION No . 5120_25 Passed by the Common Council of the City of South Bend, Indiana February 24, 20 25 Attest: (p City Clerk Bianca L. Tirado /) Attest: 2 - 2 - President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana February 25, 20 25 i4tA47- 4_ cs City Clerk Bianca L. Tirado Mutt,Approved and signed by me 20 25 17 ilifk - Mayor is()TI 4 s, ‘i,'t"`/ '.4,yk \.w.t,i:. �i . Vt.\\IPA'`\\**Ns'N4 4-''..—..1 .114, 1 ,� ' j865:'a, BILL NO. 25-14 RESOLUTION NO. 5120-25 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 425 S. Michigan Street, South Bend, Indiana 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO-YEAR (2) VACANT BUILDING TAX ABATEMENT FOR Penny Hill Homes LLC WHEREAS, a petition for real property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the areas described as: Key Number: 71-08-12-303-020.000-026 Local.Parcel Number: 018-3016-060001 Commonly Known As: 425 S. Michigan Street Legal Description: Lot 2 Martin's Addn-Penny Hill Minor Sub25/26 NP#964 5/24/2024 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 Key Number and legal description 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, is 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 Areas shall expire on December 31, 2027. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted a vacant building property tax deduction for a period of two(2)years outlined below as well as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17. Year 1 - 100% Year 2 - 100% SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for a Vacant Building 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. Canneth Lee, ouncil President South Bend Common Council Attest: • Bi. ca Tirado, y Clerk Office of the City 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 25th day of February , 2025, at 12 o'clock p.m. laittarael . Bianca Tirado, Ci derk Office of the City Clerk V ' Approved and signed by me on the day of 144141^ ,2025, at 14 o'clock __.m. Jame ueller, Mayor City f South Bend :at STATEMENT OF BENEFITS 2025 PAY2026 FORM Ss-�/vso VACANT BUILDING DEDUCTION .� State Form 55182(R2/1-21) ,. Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies as an"eligible vacant building"as defined by The cost and any specific individual's IC 6-1.1-12.1-1(17). salary information is confidential;the balance of the filing is public record per IC 6-1.1-12.1-5.1(c)and(d). INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be submitted to the designating body BEFORE the occupation of the eligible vacant building for which the person wishes to claim a deduction. 2. To obtain a vacant building deduction,a Form 322NBD must be filed with the county auditor before May 10 in the year in which the property owner or his tenant occupies the vacant building or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed after April 10. If the property owner misses the May 10 deadline in the initial year of occupation,he can apply between January 1 and May 10 of a subsequent year. 3 A property owner who files the Form 322NBD must provide the county auditor and the designating body with a Form CF-1NBD to show compliance with the approved Form SB-1NBD. The Form CF-1NBD must also be updated each year in which the deduction is applicable. SECTION 1 TAXPAYER INFORMATION Name of taxpayer Penny Hill Homes LLC Address of taxpayer Number and Street: 1512 E. Wayne Street City: South Bend State: IN ar 46616 Name of contact person Telephone number E-mail address First Name. Sarah last Name: Hill (706) 206-1363 pennyhillhomes@gmail.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Common Council of the City of South Bend 51 20-15 Location of property County DLGF taxing district number Number and Street: 425 S.Michigan Street City: Sootsfiend State: IN 7ip:46601 St. Joseph 026(South Bend-Portage) Description of eligible vacant building that the property owner or tenant will occupy(use additional sheets if necessary). Estimated occupancy date(month,day,year) Renovate and reactivate the interior and exterior of the building to create spaces for a variety of 3/1/2026 businesses.The plan is to provide a mixture of distinct enclosed commercial spaces and an"art Estimated date placed-in-use(month,day,year) market"arcade of mini-spaces created for artists and small businesses to occupy. 3/1/2026 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS A RESULT OF PROPOSED PROJECT Current Number O Salaries O Number Retained O Salaries O Number Additional 8 Salaries $ 360,000 SECTION ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values $0 $182,374 Plus estimated values of proposed project $1,440,000 $840,000 Less values of any property being replaced $0 $0 Net estimated values upon completion of project $1,440,000 $1,022,374 SECTION 5 EFFORTS TO SELL OR LEASE VACANT BUILDING Described efforts by the owner or previous owner to sell,lease,or rent the building during period of vacancy: Current owner purchased the building in 2022. Building is currently not habitable. It has been vacant for 25 years and has experienced significant water damage. Show amount for which the building was offered for sale,lease,or rent during period of vacancy. N/A List any other benefits resulting from the occupancy of the eligible vacant building. After renovation,the restored expansive storefront entrance will enhance the urban streetscape,while the rear entrance and parking lot will provide convenient access and provide ample opportunities for businesses to create both indoor and outdoor experiences.The renovation of this building will have an extremely large impact on this block and on the Monroe Street Arts District in general, having a positive impact on current surrounding businesses. SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative fi //,A„ TitleI Date signed(month,day,year) ¢d( 7J'kZY Owner 2/18/2025 Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed N/A calendar years*(see below). The date this designation expires is 12/31/2027 _. NOTE:This question addresses whether the resolution contains an expiration date for the designated area. B. The amount of the deduction applicable is limited to$ N/A C. Other limitations or conditions(specify) N/A D. Number of years allowed: ❑ Year 1 ® Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5(*see below) ❑ Year 6 ❑ Year 7 ❑ Year 8 0 Year 9 ❑ Year 10 E. For a statement of benefits approved after June 30,2013,did the designating body adopt an abatement schedule per IC 6-1.1-12.1-17? N Yes ❑ No If yes,attach a copy of the abatement schedule to this form. If no,the designating body is required to establish an abatement schedule before the deduction can be determined. We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approve Q(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year) /J i.,,._.. ? ( 514 ) 235—9321 Vii4//5 P ted name of authorized member esignating body Name of designating body Tor PI h-e -3 ' 1,�`� Common Council of the City of South Bend Attested by(signature and title of attester) I I I Printed name of attester . 1)6r71.." �tfvk1 -Dire.c'of OC?e1 C,\I 10.41Nt - 'ke *If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. IC 6-1.1-12.1-1 (17) "Eligible vacant building"means a building that: (A)is zoned for commercial or industrial purposes;and (B)is unoccupied for at least one(1)year before the owner of the building or a tenant of the owner occupies the building,as evidenced by a valid certificate of occupancy,paid utility receipts,executed lease agreements,or any other evidence of occupation that the department of local government finance requires. IC 6-1.1-12.1-17 Abatement schedules Sec.17. (a)A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (b)This subsection applies to a statement of benefits approved after June 30,2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. Except as provided in IC 6-1.1-12.1-18,an abatement schedule may not exceed ten(10)years. (c)An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2