HomeMy WebLinkAboutConfirming Tax Abatement - Hoffman Hotel Apartments Housing Partners L.P. 120 W. LaSalle St. ( 10 Year Real Property)Attest:
RESOLUTION
4286 -13
Passed by the Common Council of the City of South Bend, Indiana
September 23,
20 �3
Presented by me to the Mayor of the City of South Bend, Indiana
. September 24, 20 0
^LLJ
City Clerk
President of Common Council
Approved and signed by me Z 5 Fr FM B 19 e, -20A.
3.
City Clerk
RESOLUTION NO. ' 24�- -(3
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
120 W. LASALLE STREET
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A (10) TEN -YEAR REAL
PROPERTY TAX ABATEMENT FOR
HOFFMAN HOTEL APARTMENTS HOUSING PARTNERS, L.P.
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 commonly known as 120 W.
LaSalle Street, South Bend, Indiana, and which is more particularly described as follows:
East 87.7 feet Lot 12 Original Plat of South Bend
and which has Key Number 71 -08 -12 -107- 002.000 -026, as an Economic Revitalization Area; 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 remonstrance's
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 (10) ten years as shown by 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 se g.
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.
Member of the Common Council
SBDS02 RJD 316305v1
r'RESENrEO
NOT AP��t7,V
-2-
Filed It'd Clerk', &1Ce
V -P
JOHN VOORDE
CITY CLERK, SOUTH SEND, IN
10 YEAR 22- Aug -13
Hoffman Apartments Housing Partners, L.P.
South Bend Portage Township
Real Prope7ty Tex Abatement Schedule'
To Key Numbs
New
Comoined
0
Net
Existing
Project
F ''sung & New
Tex
Tax
Year
Taxes
Taxes
Current Assessed Value:
Abated
Paid
864,200
31.373
123,428
154.80'
111,394
43.407
- 2
31,373
123,428
154,801
102,855
Estimated Project Cost:
3
31.373
4,000,WD
154.801
77,239
77,562
4
31,373
123,428
154,801
51,623
103,178
5
31,373
Cunenl
Without
100%
95%
80%
65%
50%
40%
301/6
20%
10%
5%
Assessed Value.
Cunenl
154,801
AV & Taz
Abatement
Year 1
Year 2
Year 3
Year 4
year 5
Year ¢
Yg ,
Year 5
Yearl
Year 5
Assessed Value
100%
864,200
664.200
864,200
864,200
864,200
664,200
864,200
864200
864,200
864,200
864,200
864,200
Base Assessed Value
85%
The true to values
3.400.000
3,400,000
3.400,000
3,400,000
3.400,000
3,400,000
3,400.000
3,400.000
3,400,000
3,400,000
3,400,000
Less Abatement Deduction
0
(3,400.000)
(3 230 000)
(2,720,000)
(2.210.000)
(1,700.000)
(1,360,000)
(1,020,000)
(660 0001
(340 000)
(170 000)
Net Assessed Value
864,200
4.254,200
864,200
1.034,200
1,544,200
2.054,200
2,564,2C0
2,904,200
3,244,200
3.584,200
3,924,200
4,094,200
Property Taxes:
Assume constant tax late of
5.0228%
5.0228%
5.0228%
5.0228%
5.0228%
5.0228%
5.0228%
5.0228%
5.0228%
50228%
5.0228%
6.0228%
Gross To (tax fate x net assessed
value)
43,407
214.181
43,407
51.945
77,562
103,178
128.794
145,671
162.949
180,026
197,104
205,642
Less C-4 Breaker Credit-
(12,034)
(59381)
0
0
0
0
0
0
(14577)
(295111
(44446)
(51913)
Net Tax
_31,373
154,801
43.407_
51,946
77562
103,178
128.794
145.871
148.372
150515
152658
153,729
Circuit 13-ka, Cep
Circuit Breaker
3.0000%
25,926
127,926
127.926
127.926
127.926
127,926
127,926
127.926
127.926
127,926
127,926
127,926
Debt Service
0.8302%
5,447
26,875
5,447
8.518
9732
12,946
16161
18.303
20446
22569
26732
25803
Circuit Blakey Cap
31,373
154,801
133.373
134,644
137 656
140 672
144 087
146,229
148 372
150 515
152 658
153 729
New
Comoined
Net
Existing
Project
F ''sung & New
Tex
Tax
Year
Taxes
Taxes
Taxes
Abated
Paid
31.373
123,428
154.80'
111,394
43.407
- 2
31,373
123,428
154,801
102,855
51,946
3
31.373
123,428
154.801
77,239
77,562
4
31,373
123,428
154,801
51,623
103,178
5
31,373
123,428
154.801
26,007
128,794
6
31,373
123,428
154,801
8.929
145,871
7
31,373
123,428
154,801
61426
148,372
8
31,373
123,428
154,901
4,286
150,515
9
31,373
123,428
154,801
2,143
152,658
10
31,373
123,426
154,801
1,071
153,729
Tciels
313,725
1.234,280
1,548,005
391,974
1156,031
'This schedule is for estimation purposes only and assumes constant
lax rates.
The true to values
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
August 14, 2013
Council Member Gavin Ferlic, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
Hoffman Apartments Housing Partners L.P.
Dear Council Member Ferlic:
PHONE: 574/235 -9371
FAX: 574/235 -9021
Please find attached the Department of Community Investment's report on a real property tax abatement
petition for the above - referenced petitioner. Also attached is a copy of the petition, Statement of Benefits
form, and supporting information. The project calls for the renovation of a building located at 120 W.
LaSalle Street.
The report contains the Department's findings relative to the above petition. The total cost for the renovation
is estimated at $4,000,000. The project meets the qualifications for a ten -year real property tax abatement
and a representative from Hoffman Apartments Housing Partners L.P. will be available to meet with the
Committee on Monday, September 9, 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,
Kathy Hahn
Analyst Economic Resources
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
Dave Relos
PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC REsouRcFs
JITIN KAIN PAMELA C. MEYER DONALD E. INKS
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
PHONE: 574/235 -9371
FAX: 574/235 -9021
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
Hoffman Apartments Housing Partners L.P.
DATE: August 14, 2013
On August 13, 2013 , a petition for residential tax abatement consideration for real property located at 120
W. LaSalle Street was filed with the City Clerk by Hoffman Apartments Housing Partners L.P. Pursuant
to Chapter 2, Article 6, Section 2 -77.1 of the Municipal Code of the City of South Bend, this petition was
referred to the Department of Community Investment for purposes of investigation and preparation of a
report determining whether the area qualifies as a Residentially Distressed Area pursuant to I. C.6-1.1-12.1
and whether all zoning requirements have been met.
The Department of Community Investment has reviewed the petition (a copy of which is attached),
investigated the area, and makes the following report.
PROJECT DESCRIPTION
Italbro Enterprises LLP is the General Partner and the owner of the land. Hoffinan Apartments Housing
Partners L.P. is the Limited Partner. Italbro Enterprises LLP intends to convey the real estate to Hoffman
Apartments Housing Partners L.P. Hoffman Apartments Housing Partners L.P. intends to redevelop the
historic Hoffman Hotel located at 120 W LaSalle Street. The 60,000 square foot building will be
converted from an office building to affordable apartments to house artists. The estimated dollar value of
the project is $4,000,000.
Total taxes to be abated during the (10) ten -year abatement period is estimated at $391,974. Total taxes to
be paid during the (10) ten -year abatement period is estimated at $1,156,031.
Per the petition, the project will create zero permanent full -time and one permanent part-time job within
the first year representing a new annual payroll of $35,000 and will maintain zero existing permanent full-
PLANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RFSOURCEs
JITIN KAIN PAMELA C. MEYER DONALD E. INKS
South Bend Common Council
RE: Hoffman Apartments Housing Partners L.P.
August 14, 2013
Page 2
time and zero existing part-time jobs.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has not been associated
with or granted any previous tax abatements. However, the General Partner has been granted tax
abatements on Prairie Apartments (2007 -10 year) and Prairie Apartments Phase II (2009 -10 year).
2. The Building Commissioner has reviewed this petition and finds the properties to be properly zoned
for the proposed project.
4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the
qualifications for a (10) ten -year real property tax abatement under Section 2 -77, Multi - Family
Residential Developments.
* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
22- Aug -13
HOFFMAN APARTMENTS HOUSING PARTNERS LP
Public Benefit Points Summary *
Qualify
Earned
Available
Public Benefit Item:
Y or N
Points
Points
Project Related:
1. A.
Redevelop a Site that has Special Needs
Y
49
49
B.
Develop Based on Local University Research
N
0
35
C.
Achieve a Physical Element of a Plan
Y
36
36
Sub -total Project Related:
85
120
2. Super Size Projects (point values are cumulative):
A.
100% to 199%
Y
25
25
B.
200% to 299%
Y
68
68
C.
300% to 399%
Y
65
65
D.
400% and Over
Y
52
52
Sub -total Super Size Projects:
210
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
N
0
22
F.
Require Pension Benefits
N
0
18
G.
Maintain Affirmative Action Plan
N
0
20
Sub -total Construction Related:
0
141
4. Wage & Benefit Related:
A.
Pay Target Wage Levels
N
0
33
B.
Provide Health Benefits
Y
34
34
C.
Provide Pension Benefits
N
0
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
0
Sub -total Wage & Benefit Related:
62
162
5.' Workforce Related:
A.
Create New Jobs
Y
42
42
B.
Retain Existing Jobs
N
0
41
C.
Maintain Affirmative Action Plan
N
0
35
D.
Provide Targeted Hiring Preference
N
0
34
Sub -total Workforce Related:
42
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
N
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:
399
1000
* Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
PRAIRIE APARTMENTS - PHASE II
Additional Years of Abatement
Multi - family Development Proiects:
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 Proiects:
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: 399
Base Years of Abatement 3
Additional Years of Abatement: 7
Total Years of Abatement: 10
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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 seg., and South Bend Municipal Code
Sec. 2 -76 et seg., for this petition state the following:
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:
The proposed redevelopment of the Historic Hoffman Hotel,
located at 120 W LaRalle 4t will h to convert thP huil ing
from an office building to affordable apartments to house
artists.
Land Size < • 5 acres; Building Size +-60,000 sq.ft.
2. Describe the overall nature of the business and of the operations occurring at the
Property (Please attach an additional sheet if more space is needed):
The property will be professionally managed as an affordable
artist apartment building.
3. Estimate the dollar value of the project (excluding land): $ 4, 000, 000
4. The current assessed valuation of the real property before rehabilitation,
redevelopment, economic revitalization, or improvement is: $ 864, 200
(This information may be obtained from the St. Joseph County Assessor's Office 235-
9557. )
5. (a) The real property for which tax abatement consideration is petitioned (Property) is
owned or to be owned by the following individual(s) or corporation(s) (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 ( %)
Italbro Enterprises LLP PO Box 1635, South Bend, IN 46634
100%
(Rev 5/13/11)
(b) The following other person(s) or corporation(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( %)
Hoffman Apartments Housing Partners, L.P.
4000 W. 106th Street; Suite 125 -146, Carmel, IN 46032
100%
6. The commonly known address of the Property is: 120 W. LaSalle St, South
Bend Indiana
7. The Key Number(s) of said property is: 71-08 -12 -107- 002.000 -026
8. A legal description of the above address is attached hereto, marked "Exhibit A," and
incorporated herein.
9. A map and /or plat describing the Property is attached hereto, marked "Exhibit B," and
incorporated herein.
10. Photographs of the property, taken within two (2) weeks of filing of this petition, are
attached hereto, marked "Exhibit C," and incorporated herein.
11. The REAL property where the proposed redevelopment or rehabilitation project will be
carried out is located in the following Allocation Area, if any, declared and confirmed
by the South Bend Redevelopment Commission:
South Bend Central Development Area [Downtown] Development Plan
12. The redevelopment or rehabilitation project itself will: (a) create o permanent,
full -time and 1 permanent, part-time jobs within the first year, representing a
new annual payroll of $ 35, 0 0 0 ; and (b) maintain o existing, permanent,
full -time and o existing, permanent, part-time jobs (including existing,
permanent, full -time, minority employment of o workers and existing, perma-
nent, part -time, minority employment of o workers) with a total annual payroll
of $ 3-5,000 for all existing employees.
13. Provide current wage information for existing employees including: base rate, cost -of-
living allowances, hazardous -duty pay, incentive pay including commissions and
production bonuses, on -call pay and tips (please show average hourly rate or range).
Do Not Include: back pay, jury duty pay, overtime pay, severance pay, shift
differentials, non - production bonuses, and tuition reimbursements.
Full -Time Part-Time
Laborers $ N/A $
Technical $ $
Managerial $ $
Administrative $ $
(Rev 5/13/11)
14. The projected annual salary for each new position indicated in item 12 above is
estimated to be as follows (Please attach additional sheet (s) if more space is
needed):
POSITION (Indicate Full Time [FT] or Part Time [PT]) EMPLOYMENT WAGE
Property Manager (PT) $20,000
- Maintenance (PT) $15,000
15. Indicate whether your company provides the following benefits (use Y /N):
Y Health Care Benefits
Pension Plan
Y Employer Provided Training (recognized or certified training /educational
courses or programs)
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 who lack 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 City's Community & Economic
Development Department 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)
16. 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
2013 $7238
_2012 $
2011 $
2010 S
(This information may be obtained from the St. Joseph County Treasurer's office
235 -9531)
(Rev 5/13/11)
17. Please list the number of full -time and part -time minority employees for each of the
last three years:
Year n/a n/a n/a
Full Part Full Part Full Part
Black
Hispanic
Asian
Indian
Other
18. Does your business maintain a written (formal) 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:
19. Indicate whether or not your project will finance any of the following activities (If
desired, please contact the Community & Economic Development Department
235 -9335 for additional information on this section):
X Conversion to residential use of a commercial building "Eligible Building" as
designated by the Community & Economic Development Department.
X Rehabilitation of a building that is either: (a) on the National Register of
Historic Places; (b) designated as a local landmark, (c) located in a National
Register or local landmark district; (d) eligible for nomination as a National
Register or local landmark; or (e) is rated as Outstanding (0/13) or
Significant (S/12 or S/11) in the most recent Historic Preservation county-
wide survey.
Rehabilitation and reuse of a property that is designated a Problem Property
by the Community and Economic Development Department.
Cleaning up a "Brownfield," which is any site, building, facility or complex that
has been designated a brownfield by the Community and Economic
Development Department.
20. Is 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 (Please attach additional sheet (s) if more space is needed):
No.
(Rev 5/13/11) 4
21. Will your project achieve one or more physical elements identified in a development or
revitalization plan that has been approved by the Common Council? If yes, please
explain.
Yes, it will provide artist housing, rehabilitation of
a cinwntnwn hip i 1 chi ng a-, desrri hPCA i n the CRT) Devel n= mPnt Plan
22. Does your business provide significant financial support to a Municipal Facility (i.e.
municipally owned park, recreation center or cultural arts or entertainment facility or
other similar public amenity)? If yes, please explain.
No.
23. Is your company incurring any of the costs of extension or over - sizing 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 (Please attach additional sheet (s) if more
space is needed):
No.
24. Information 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).
25. Information is required on the construction companies that will be utilized for the
construction or rehabilitation associated with the project. (Please complete the table
on page 9 of this application).
26. 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
Owner's signature at the end of this application is verification of this statement).
27. The 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 is: 6513
28. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description is:
531110
29. The current use of the Property is offices and the current zoning is _
cBD (This information maybe obtained from the Building Department 235-
9554).
(Rev 5/13/11) 5
30. Has your business been granted previous tax abatement(s)? If yes, please provide
type (real and /or personal property), term and date of approval. (Please attach
additional sheet(s) if more space is needed)
ABATEMENT TYPE TERM DATE OF APPROVAL
No, but the General Partner has been granted tax abatements
on Prairie Apartments (2007 10 Year) and Prairie Apartments
PAga TT (9nnQ - in va�r)
31. 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 Administration Sections 503 and 504 financing through the Business
Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana,
Industrial Revolving Fund; or other public financial assistance, including but not limited
to public works improvements.
Federal Low Income Housing Tax Credits from the Indiana
Housing and Community Development Authority.
32. The following person(s) should be contacted as Petitioner's primary agent(s) regarding
additional information and public hearing notifications and the following individual(s)
may participate at the committee and full council meetings of the South Bend Common
Council:
Name: William J. Hollingsworth
Address: 4000 W. 106th St., Suite 125 -146
City, State, Zip: Carmel, IN 46032
Telephone: 317- 557 -9442
E -mail address: whollingsworth@equaldevelopment.com
33. If this real property tax abatement is for warehouse or industrial developments,
pursuant to South Bend Municipal Code Sec. 2 -83.2, please indicate the name,
address, telephone number and e-mail address of the person who will work with
WorkOne Northern Indiana (WNI) or its successor agency for employee recruitment,
and sign the required WNI form attached to the petition.
Name:
Address:
City, State, Zip:
Telephone: _
E -mail Address:
(Rev 5/13/11) 6
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 Section 2 -84.7 of the Municipal Code of the City of South
Bend has been paid in full.
(Rev 5/13/11)
Name of Property Owner(s):
Italbro Enterprises LLP
By:
(Signed Name)
Pe. iw R : A GOS -?ND
(Typed or printed name and capacity of signor if
signed by an agent or representative of the owner.)
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South Bend Tax Abatement Ordinance Overview
Procedures and General Standards — Abatement in Tiers
South Bend's Abatement Program is a program which awards a base level of
abatement for any project that meets certain minimum level development standards.
Additional years of abatement may be added to this base for projects involving the
development or rehabilitation of commercial real property listed in the following table
provided the project fosters certain economic development and other public benefits.
Base Abatement
Base Abatements may be awarded according to the following schedule:
Development
Area
New
Constr.
Rehab.
Add-
On?
Base
Yrs
Multi-Family
EDTA
$1,000,000
$250,000
Yes
3
Single Family
City -wide
Any
n.a.
No
5
Office
CBD
15,000 sf
5,000 sf
Yes
3
Office
EBDA, TAIA
7,500sf
5,000 sf
Yes
3
Retail
CBD, EBDA, TAIA
Any
Any
Yes
3
Retail
UEZ
Any
Any
Yes
3
Mixed Use
CBD
15,000 sf
5,000 sf
Yes
3
Mixed Use
EBDA
7,500 sf
5,000 sf
Yes
3
Institutional
CBD, EBDA, UEZ
Any
Any
Yes
3
Hotel/Motel
CBD, EBDA, AEDA
20 rooms
n.a.
Yes
3
Industrial
City-wide
10,000 sf
10,000 sf
Yes
3
Industrial
UEZ, RBA
Any
Any
Yes
3
Warehouse
City-wide
25,000 sf
25,000 sf
Yes
3
Warehouse
EDTA, UEZ, RBA
Any
Any
Yes
3
Personal Property
(Equip. & Machinery)
City -wide
Any
None
No
5
Definitions of Area Abbreviations
Airport Economic Development Area
East Bank Development Area
Redevelopment Blighted Area
Urban Enterprise Zone
Additional Base Abatement Criteria
Central Business District
Economic Development Target Area
Tax Abatement Impact Area
The project must be perceived to generate a ten -year financial return (in taxes,
fees, pmts, community econ & social benefits...) sufficient to justify the
City's direct investment in infrastructure support.
A Memorandum of Agreement is executed which speaks to:
• The conditions of the abatement
• The timeframe for actions
• An agreement to respond to surveys related to compliance
(Rev. 5113/ 11)
South Bend Tax Abatement Ordinance
• An agreement to grant access related to compliance inspections
• Any events that might cause termination or payback actions
The applicant must be current in their taxes.
There must be no pattern of local, state or federal law or regulatory violations.
Add -On Abatement
One to seven additional years abatement may be considered for projects involving certain
commercial real property (listed above) that achieve Public Benefit Points described in
the following tables:
Table I
Project Related Actions
Points
Redevelop a site which has special needs such as converting a commercial
building to residential use, rehabilitating and reusing an historic building,
rehabilitating and reusing a property that has been designated a "problem
property" by the Community and Economic Development Department, or
paying the cost of cleaning up a Brownfield.
49
Develop a product or business based on licensing intellectual property arising
from research conducted at a university in St. Joseph County.
35
Achieve one or more physical elements identified in a development or
revitalization plan that has been approved by the Common Council.
36
Super -Size Development Actions (For exceeding the minimum hard $ costs or
s . footage required to meet base year criteria ) Cumulative!
100 to 199%
25
200 to 299%
68
300 to 399%
65
400% and over
52
Construction Related Actions
Employ local companies for at least 75% of construction work(of that which is
reasonably available locally)
20
Purchase 75% of materials locally of that which is reasonably available locally)
20
100% of construction workers are employees not Independent Contractors
19
Pay 100% of the wage that the US Dept. of Labor has determined to be
prevailing in St. Joseph County. Published on the Davis -Bacon website at
http://www.access.gpo.gov/davis.bacon/.
22
All contractors must contribute to a health plan.
22
All contractors must contribute to a retirement plan.
18
Contractors must maintain an Affirmative Action Plan.
20
Wage & Benefit Related Actions of Applicant
Pay average of 100% of mean hourly wage reported by the Bureau of Labor
Statistics in its most recent Metropolitan Area Occupational Employment
Annual Wage Estimates for South Bend, Indiana Metropolitan Statistical Area.
33
(Rev. 5113/11) 2
South Bend Tax Abatement Ordinance
Contribute toward health plan
34
Contribute to pension or retirement plan
29
Provide training to employees which consists of certified training or educational
courses or programs conducted within or outside the place of employment
28
Provide or contribute to cost of child day care
15
Provide Transportation Assistance to lower income employees such as using
public transportation, subsidized public transportation orspecial van services.
14
Provide an employer-assisted home ownership program
9
226
267
Workforce Related Actions of Applicant
268
Create a specified number of new jobs
42
Retain a specified number of existing jobs
41
Maintain or establish an Affirmative Action Plan
35
Provide targeted hiring preference for residents of Census Tracts designated by
the Community & Economic Dev. Dept. that have the highest unemployment or
the highest percentage of low and moderate income individuals.
34
394
& over
Pay for extending or over sizing municipal infrastructure including water,
sewer, drainage facilities, wastewater treatment facilities, road and street
improvements, street lighting, and traffic control and related public
improvements.
Over sizing cumulative
14
Pay 26 to 50% of extension cumulative
26
Pay for 51 to 75% of extension cumulative
39
Pay for 76 to 100% of extension (cumulative)
52
Support a Municipal Facility
Provide significant financial support to a municipally owned facility such as a
ark, recreation, cultural arts or entertainment facility.
84
Public Benefit Points and thresholds for Additional Abatement Years
The following points must be achieved to earn consideration for each additional year of
abatement.
Table II - Multifamily 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
(Rev. 5/13/11)
39 C
W
South Bend Tax Abatement Ordinance
Table III - All 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
& over
7
Additional Requirements
All petitioners seeking real property
developments must agree to work wit h
County or its successor agency when
positions created.
(Rev. 5/13/11)
tax abatement for industrial or warehousing
Workforce Development Services of St. Joseph
developing plans and recruiting for employment
d
® is e�4
4 CG
P