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HomeMy WebLinkAbout5144-25 Amending and Reconfirming Resolution - Real Property Tax Abatement for 505 South Michigan Street United States of America Lo IIIMOMMIIMMN- an a * *r, �cN �- + • FILED - � �: -RECEIVED- #• .-17- , . o =`, OCT 17 2025 OCT 1 1 2025 AUDITOR St JOSEPH COUNTY '1.3 F.. JOSEPH COUNTY ASSESSOR 2025-26502 • • RECORDED AS PRESENTED ON ertl icate 10/17/2025 09:32 AM CANDACE S.BROWN ST.JOSEPH COUNTY RECORDER PGS:9 FEES:25.00 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. 5144-25 A RESOLUTION AMENDING DECLARATORY RESOLUTION NO. 4972- 22 AND MODIFYING AND RECONFIRMING THE ADOPTION OF DECLARATORY RESOLUTION NO. 4972-22 DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 SOUTH MICHIGAN STREET, SOUTH BEND, INDIANA 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) MIXED-USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT FOR THE MONREAUX LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, OCTOBER, 13, 2025 PRESENTED TO, APPROVED AND SIGNED BY MAYOR JAMES MUELLER, OCTOBER, 16, 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 /0'6 day of 0c746er. 20 ZS . sOUTx '.. Bianca L. Tirado - :1 i�^�;���i,� 4 Clerk of the City of South Bend ti � ":a;�C�.\. 4 St. Joseph County, Indiana Oj` � �. e %f x t. 1 .. 3 .„ )b 1 By: `._ti` �� Deputy City Clerk .R :.,1865 ` RESOLUTION No . 5144-25 Passed by the Common Council of the City of South Bend, Indiana October 13, 25 20 Attest: 47----- City Clerk Bianca L. Tirado Attest: ; i President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 14, 20 25 /C\ City Clerk Bianca L. Tirado Approved and signed by me D C'fl 7 1 G 20 25 )7 .1111"•----- Mayor ‘41'SOUTH�rt\ " '\ , `', 0 ,0-4, ..- / NI � I65� SUBSTITUTE BILL NO. 25-39 RESOLUTION NO. 5144-25 A RESOLUTION AMENDING DECLARATORY RESOLUTION NO. 4972-22 AND MODIFYING AND RECONFIRMING THE ADOPTION OF DECLARATORY RESOLUTION NO. 4972-22 DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 South Michigan Street, South Bend, Indiana 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) MIXED-USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT FOR The Monreaux LLC WHEREAS, on July 20, 2022, the Department of Community Investment filed with the Office of the City Clerk a Declaratory Resolution for Real Property Tax Abatement and a Confirming Resolution for Real Property Tax Abatement for consideration by the Common Council of the City of South Bend, Indiana, to designate certain areas within the City as an Economic Revitalization Areas for the purpose of tax abatement; and WHEREAS, the Meeting Agenda for the August 8, 2022, Common Council Meeting included Bill No. 22-38 with the title, "A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, DESIGNATING A TAX ABATEMENT FOR CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 S MICHIGAN ST., SOUTH BEND, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT (8) YEAR MIXED-USE REAL PROPERTY TAX ABATEMENT FOR THE MONREAUX, LLC;"and WHEREAS, on August 8, 2022, the Common Council considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that designated the area commonly known as 505 S. Michigan Street, South Bend, Indiana, and which is more particularly described as follows: (1) 132 Ft E End Lot 19Martins Add (2)N 44' Lot 20 Martins Add (3) S 1- 3 Lot 20 Martins Add (4) Lot 21 & N 1/2 Vac Alley S & Adj Martins Add and which has Key Numbers 71-08-12-306-010.000-026, 71-08-12-306-011.000-026, 71-08-12- 306-012.000-026, and 71-08-12-306-013.000-026 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, the Common Council further considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that established that the Economic Revitalization Area shall be limited to three(3) calendar years from the date of the adoption of Bill No. 22-38 by the Common Council; and WHEREAS, the Common Council further considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that asserts that the Common Council determines that the property owner is qualified for and is granted property tax deduction for a period of eight (8) years as shown by the schedule outlined below pursuant to Indiana Code 6-1.1-12.1-17. Year 1 - 100% Year 2 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6 - 75% Year? - 70% Year 8 - 65% WHEREAS, the Common Council further considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that directs the City Clerk to cause notice of the adoption of Bill No. 22-38 as a Declaratory Resolution for 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; and WHEREAS,on August 8,2022,the Community Investment Committee debated the merits of Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement, held a public hearing for the bill,and reported the bill to the Common Council with a favorable recommendation; and WHEREAS, the minutes of the Community Investment Committee meeting held on August 8, 2022,provide that the Community Investment Committee considered Bill No. 22-38 as a"Resolution Designating Tax Abatement for 505 S. Michigan St., South Bend, Indiana;" and WHEREAS, on August 8, 2022, the Common Council debated the merits of Bill No. 22- 38 as a Declaratory Resolution for Real Property Tax Abatement,held a public hearing for the bill, and voted in favor of adopting Bill No. 22-38; and WHEREAS,the minutes of the Common Council meeting held on August 8,2022,provide that the Common Council considered Bill No. 22-38 with the title, "A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, DESIGNATING A TAX ABATEMENT FOR CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 S MICHIGAN ST., SOUTH BEND, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT (8)YEAR MIXED- USE REAL PROPERTY TAX ABATEMENT FOR THE MONREAUX, LLC;" and WHEREAS, Bill No. 22-38 was passed by a vote of eight (8) ayes and zero (0)nays; and WHEREAS, upon adoption by the Common Council on August 8, 2022, Bill No. 22-38 was filed as Declaratory Resolution No. 4972-22; and WHEREAS, upon proper notice, a public hearing was held, after which the Common Council issued Confirming Resolution No. 4975-22 on August 22, 2022, confirming the adoption of Declaratory Resolution No. 4972-22; and WHEREAS, through the adoption of Declaratory Resolution No. 4792-22on August 8, 2022, and the adoption of Confirming Resolution No. 4975-22 on August 22, 2022, the Common Council intended to grant The Monreaux LLC, an Indiana Limited Liability Company, an eight- year(8) mixed-use real property tax abatement; and WHEREAS,through the adoption of Declaratory Resolution No.4792-22 and the adoption of Confirming Resolution No. 4975-22, the Common Council intended to grant The Monreaux LLC a three-year(3) designation period, which would have expired on August 8, 2025; and WHEREAS, the Common Council now desires to amend Declaratory Resolution No. 4792-22 to match the form of Declaratory Resolution filed by the Department of Community Investment on July 20, 2022, to ensure that The Monreaux LLC receives the benefits of the real property tax abatement as the Common Council intended; and WHEREAS,the Common Council further desires to modify and reconfirm the adoption of Declaratory Resolution No. 4972-22, as amended by this Resolution, designating certain areas an Economic Revitalization Area for purposes of an eight-year (8) mixed-use real property tax abatement; and WHEREAS, completion of the project by end of the original designation period as the Common Council intended through the adoption of Declaratory Resolution No.4972-22 on August 8, 2022, and the adoption of Confirming Resolution No. 4975-22 on August 22, 2022, was not possible; and WHEREAS, The Monreaux LLC has requested to extend the designation period that the Common Council intended to confirm through the adoption of Confirming Resolution No. 4975- 22; and WHEREAS, the Common Council further desires to reconfirm the designation of certain areas designated by Declaratory Resolution No. 4972-22, as amended by this Resolution, and confirmed by Confirming Resolution No. 4975-22 as an Economic Revitalization Area for purposes of an eight-year(8)mixed-use development real property tax abatement; and WHEREAS, the Common Council further desires to extend the designation period confirmed by Confirming Resolution No. 4975-22; and NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby amends Resolution No. 4972-22 to read in its entirety as follows: "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 area located at 505 S. Michigan Street, South Bend, IN, which is more particularly described as: (1) 132 Ft E End Lot 19Martins Add (2) N 44' Lot 20 Martins Add (3) S 1- 3 Lot 20 Martins Add (4) Lot 21 &N 1/2 Vac Alley S & Adj Martins Add and which has Key Numbers 71-08-12-306-010.000-026, 71-08-12-306-011.000-026, 71- 08-12-306-012.000-026, and 71-08-12-306-013.000-026 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, the petitioner has agreed to and has accepted responsibility to report any changes in the Key Numbers and legal descriptions 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 the area as an Economic Revitalization Area for purposes of real property tax abatement." "SECTION V. The designation as an Economic Revitalization Area shall be limited to three (3) calendar years from the date of the adoption of this Resolution by the Common Council." "SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for 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. Year 1 - 100% Year 2 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6 - 75% Year 7 - 70% Year 8 - 65%" "SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for 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." SECTION II. The Common Council hereby reconfirms Declaratory Resolution No. 4972-22, as amended by this Resolution, and Confirming Resolution No. 4975-22 for purposes of an eight- year(8)mixed-use development real property tax abatement. SECTION III. The designation as an Economic Revitalization Area for purposes of an eight-year (8) mixed-use development real property tax abatement expires on December 31, 2028. SECTION IV. The Common Council hereby determines that the Petitioner is qualified and is granted property tax deduction for a period of eight(8)years as shown in Section VI of Declaratory Resolution No. 4972-22, as amended by this Resolution, and further determines that the petition, the Statement of Benefits,and the Memorandum of Agreement between the Petitioner and the City of South Bend 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 V. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. 2- )-------- Canneth J. L e, Council President South Bend Common Council Attest: AktWfr Bianca L. Tirado, City 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 14th day of October ,2025, at 12 o'clock p.m. fitkaitAit/4 Bianca L. Tirado, City Cler Office of the City Clerk N Approved and signed by me on the `6 day of 004 I' , 2025, at I o'clock .m. 114/1 Jam s Mueller, Mayor City of South Bend, Indiana "'"• STATEMENT OF BENEFITS 2025 PAY2026 ihwq REAL ESTATE IMPROVEMENTS FORM SB-1 I Real Property State Form 51767(R7/1-21) a.: Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost of the property and specific salaries E Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) paid to individual employees by the ❑ Residentially distressed area(IC 6-1.1-12.1-4.1) property owner is confidential per IC 6-1.1-12.1-5.1. 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 redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction,a Form 322/RE must be filed with the county auditor before May 10 in the year in which the addition to assessed valuation is made or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between January 1 and May 10 of a subsequent year. 4. A property owner who files for the deduction must provide the county auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction is applicable. IC 6-1.1-12.1-5.1(b) 5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. IC 6-1.1-12.1-17 SECTION 1 TAXPAYER INFORMATION Name of taxpayer The Monreaux LLC Address of taxpayer NumberandStreet: 1335 Pyle Avenue City: South Bend State: IN ZIP. 46615 Name of contact person Telephone number E-mail address First Name: Devereaux Last Name. Peters (773)484-8430 devereauxpeters14@gmail.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Common Council of the City of South Bend 514 -25 Location of property Number and Street City State ZIP County DLGF taxing district number 505 S. Michigan Street South Bend IN 46601 St. Joseph 026(South Bend-Portage) Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year) Construction of an affordable mixed-use building(4 stones,approx.56,000 sq ft)consisting of approx.57 10/20/2025 apartment units and other mixed-use space.Project will cover parcel numbers 71-08-12-306-010.000-026, Estimated completion date(month,day year) 71-08-12-306-011.000-026,71-08-12-306-012.000-026,and 71-08-12-306-013.000-026 12/31/2026 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current Number Salaries Number Retained Salanes Number Additional Salaries 0 $0 0 $0 8 $266,240 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values $o $o Plus estimated values of proposed project $14,000,000 $4,075,360 Less values of any property being replaced $o $0 Net estimated values upon completion of project $14,000,000 $4,075,360 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) Other benefits 45 of the 57 apartments will be affordable to low-income person and families. SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative ^ Date signed(month,day,year) Oct 13,2025 Printed name of authorized representative Title Devereaux Peters sole member of managing member Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed n/a calendar years*(see below). The date this designation expires is 12/31/2028 . NOTE:This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements 0 Yes ❑No 2.Residentially distressed areas ❑Yes ❑Q No C. The amount of the deduction applicable is limited to$ n/a . D. Other limitations or conditions(specify) n/a E. Number of years allowed: ❑Year 1 ❑Year 2 0 Year 3 ❑Year 4 ❑ Year 5 (*see below) ❑Year 6 ❑Year 7 ❑✓ Year 8 ❑Year 9 ❑Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ❑✓ 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. Ap ed(signature and tit f authorized member of designating body) Telephone number Date signed(month,day,year) �' ( 514 ) 23M13"932( /0/17/2025 d name of au7NTorized membe of designating body Name of designating body al>1i'�5, / ,� - Common Council of the City of South Bend,Indiana Attested by(signature andte�title of attes(erf Printed name nname of attester vg '� 7)re cHo- f .4-�L c�.I Ma.4#ic`^' Nta' 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. A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1,2013,the deductions established in IC 6-1.1-12.1-4.1 remain in effect.The deduction period may not exceed five(5)years. For a Form SB-1/Real Property that is approved after June 30, 2013,the designating body is required to establish an abatement schedule for each deduction allowed. Except as provided in IC 6-1.1-12.1-18,the deduction period may not exceed ten(10)years. (See IC 6-1.1-12.1-17 below.) B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1,2013,the abatement schedule approved by the designating body remains in effect. For a Form SB-1/Real Property that is approved after June 30,2013,the designating body is required to establish an abatement schedule for each deduction allowed.(See IC 6-1.1-12.1-17 below.) 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 taxpayers 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 taxpayers statement of benefits. Page 2 of 2