HomeMy WebLinkAbout5124-25 Confirming Resolution - Vacant Building Tax Abatement for 425 South Michigan Street United States of America-06647
• RECORDED AS PRESENTED ON
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03/25/2025 11:43 AM
*f't*��* CANDACE S.BROWN
*�s*`*1. Sr.JOSEPH COUNTY
•�* RECORDER
PGS: 10 FEES:25.00
- FILED - RLCEI
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MAR 2 5 2025 sT 2075
AUDITOR ASSE C�UN
ST. JOSEPH CQUN ertificate SOq TY
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. 5124-25
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION 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
ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, MARCH, 10, 2025
PRESENTED TO APPROVED AND SIGNED BY MAYOR JAMES
MUELLER, MARCH, 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 ZS+" day of Mara 20 Z5 .
Bianca L. Tirado
"' utii z Clerk of the City of South Bend
0� , 1 tl St. Joseph County, Indiana
\ N � By. -144 o'
Vim`` °c- 'S d �Ilaa Ihw �ew� Deputy City Clerk x a
RE S OLUT I ON No . 5124-25
Passed by the Common Council of the City of South Bend, Indiana
March 10, 20 25
Attest: j• City Clerk
Bianca L. Tirado
Attest: /(+ d. --z-"'W President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
March 11, 20 25
14114-114)) . City Clerk
Bianca L. Tirado
Approved and signed by me NG L 16 20 25
K- AA--------- Mayor
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BILL NO. 25-18
RESOLUTION NO. 5124-25
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION 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, 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: 71-08-12-303-020.000-026
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, 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.
WHEREAS, the Council adopted Declaratory Resolution No. 5120-25 on February 24,
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 vacant building 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 vacant building tax deduction for up to a period of two (2) 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 - 100%
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.
Canneth Lee, Council President
South Bend Common Council
Attest:
tau;
Bianca Tirado, Ci ler
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 11`h day of March , 2025, at 12 o'clock
p.m.
tcata.4., ause,
Bianca Tirado, City Clcl
v Office of the City Clerk ro'clock
and signed by me on the l 0 day ofillt#4 ,2025, at J o'clock
m.
Jam Mueller, Mayor
Cit of South Bend
MEMORANDUM OF AGREEMENT
(VACANT BUILDING TAX ABATEMENT)
This Memorandum of Agreement (Agreement) dated as of February 25, 2025, serves as
confirmation of a commitment by Penny Hill Homes LLC (the "Applicant"), pending a March 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 Applicant. At the time of
this Agreement, the property is located at 425 S. Michigan Street, South Bend, IN 46601, and has
Key Number 71-08-12-303-020.000-026. Throughout the duration of the abatement, the Applicant
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 Applicant 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 Applicant agrees that failure to promptly report changes can result in a finding of
noncompliance on behalf of the Applicant under the commitments of this Agreement.
2. Commitments of City and Applicant. 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 a two-year (2) vacant building tax abatement for
the Applicant, based on the Applicant's commitment set forth in its Application. The Applicant
commits to the following(the"Commitments"):
(a) making total combined real property expenditures of no less than One Million Four
Hundred Forty Thousand dollars ($1,440,000.00) for the redevelopment of the structure totaling
approximately Fifty Thousand (50,000) square feet at property identified in Section 1 of this
Agreement;
(b) creating at least eight (8) permanent full-time jobs with a total estimated annual payroll
of at least Three Hundred Sixty Thousand dollars($360,000.00); and
(c) acting in good faith to complete the project as described in its Application.
3. Applicant's Compliance with City and State Laws. During the term of the abatement, the
Applicant 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 Applicant 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 Applicant shall provide the City with adequate
written evidence thereof within fifteen (15) days of such request (the "Annual Survey"). The City
shall utilize this information and the information required to be filed by the Applicant in the CF-1
Compliance with the Statement of Benefits form to verify that the Applicant has at all times complied
with the Commitments after the Commitment Date and during the duration of the abatement and for
no other purpose. The Applicant further agrees to provide the City with such additional information
as requested by the City to determine Applicant's compliance with the Commitments and with local
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and state requirements within twenty (20) days following any such request. Notwithstanding
anything herein to the contrary,the Applicant acknowledges that the City may be required to disclose
certain documents provided by the Applicant 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 Applicant has not made reasonable
efforts to substantially comply with all the Commitments, as defined in Section 2 of this Agreement,
and the Applicant's 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
Applicant 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
Applicant, and which materially and adversely affect the ability of the Applicant to substantially
comply with this Agreement. Applicant 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 Applicant under this Section 5 to the fullest extent possible and may
deny Applicant's 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
Applicant 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 Applicant 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 Applicant notice of
such determination, including a written statement calculating the amount due from the Applicant, and
will provide the Applicant 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 Applicant may meet and will provide that the
Applicant 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 Applicant shall be provided
with written notice and a hearing before the SBCC before any final action shall be taken terminating
the abatement and/or requiring repayment of tax benefits. The Applicant 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 Applicant with a written statement calculating the amount due
(the "Statement"), and Applicant shall make such repayment to the City within one hundred twenty
(120) days of the date of the Statement. If the Applicant does 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.
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9. Modification/Entire Agreement. This Agreement and the schedules attached hereto as
Exhibit A contain the entire understanding between the City and the Applicant 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 Applicant. The Applicant understands 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
Applicant.
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. 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.
12. Applicant's Consent to Jurisdiction. The Applicant 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.
12. 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: Penny Hill Homes LLC
1512 E. Wayne Street
South Bend,Indiana 46615
Attn: Sarah Hill
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
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13. Assignment and Transfer Prohibited. This Agreement shall be binding upon and inure to the
benefit of the City and the Applicant and their successors and assigns, except (a) that no party may
assign or transfer its rights or obligations under this Agreement without the prior written consent of
the other party hereto, in which consent shall not be unreasonably withheld, and (b) Applicant may
assign and transfer its rights under this Agreement to the Permitted Assign without prior written
consent. "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.
14. 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.
15. 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 shall 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.
16. No Personal Liability. No official, director, officer, employee, or agent of the City shall be
charged personally by the Applicant, its employees, or its agents with any liabilities or expenses of
defense or be held personally liable to the Applicant under any term or provision of this Agreement
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.]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.
"Applicant" "City"
Penny Hill Homes LLC City of South Bend, Indiana
By: LA By: �,�►.— i2! — ��_
Sarah Hill Canneth Lee
Owner President, South Bend Common Council
Approved as to Legal Adequacy and Form this
By:
l 04 day of t4
Troy Warner
/0'4"eif 1.9v-4/ Chairperson,Community Investment
Counsel, South Be Common Council Committee
By:
Erik Glavich
Counsel for Applicant Department of Community Investment
By:
Ja es Mueller
M yor
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EXHIBIT A
Abatement Schedule
Subject to the adoption by the SBCC of a resolution confirming the adoption of Declaratory
Resolution No. 5120-25, the property owner is qualified for and is granted a vacant building tax
abatement for a period of two (2) years as shown by the schedule outlined below.
Year 1 - 100%
Year2 - 100%
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