HomeMy WebLinkAboutConfirming Tax Abatement - East Bank South Bend Development LLC 215 N. Sycamore St. (8 Year Real Property)RESOLUTION
4307 -13
Passed by the Common Council of the City of South Bend, Indiana
December 9, 13
20
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
December 10, 20 13
Approved and signed by me
9 f (- 4r6fk to
City Clerk
President of Common Council
20 13 .
City Clerk
RESOLiT1'ION NO. '� 3 01 0
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
215 NORTH SYCAMORE STREET
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A (8) EIGHT -YEAR REAL
PROPERTY TAX ABATEMENT FOR
EAST BANK SOUTH BEND DEVELOPMENT LLC.
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 215 N.
Sycamore St., South Bend, Indiana, and which is more particularly described as follows:
LOT NUMBER 9 OF EAST BANK TOWNHOMES MINOR SUBDIVISION LOCATED IN
THE NORTHWEST 1/4 SECTION 12, TOWNSHIP 37 NORTH, RANGE 2 EAST, CITY OF
SOUTH BEND, PORTAGE TOWNSHIP, ST. JOSEPH COUNTY, INDIANA, AND
RECORDED AS INSTRUMENT NO 1100776 IN THE OFFICE OF THE RECORDER OF ST.
JOSEPH COUNTY, INDIANA
and which has Key Number of 71- 08 -12- 127 - 004.000 -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 (5) five 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 q.
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.
PRESENTED [ 2-A- 3
NOT APPROVED
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'. CITY CLERK, SOUTH SEND, IN
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, at se g., 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:
Construction of a 5 story mixed use building with ground floor commercial and residential on
floors 2, 3,4 and 5. Commercial ground floor space is approximately 3,200 square feet. The
objective is to test the market for new residential apartments in South Bend's Central
Business District. Each of the floors 2 - 5 will consist of a one bedroom apartment, a two
bedroom apartment and a three bedroom apartment. The total # of residential units is 12.
The building is to be built adjacent to the the East Bank Townhomes, facing Sycamore St.
Land Size o.lo
acres; Building Size 16,000 q.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):
Multifamily building renting to single families with ground floor commercial space.
3. Estimate the dollar value of the project (excluding land): $ 2, Soo, 000.00
4. The current assessed valuation of the real property before rehabilitation,
redevelopment, economic revitalization, or improvement is: $ 6,100.00
(This information may be obtained from the St. Joseph County Assessors 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( %)
East Bank South Bend Development, IJC
121 S. Niles Ave., South Bend, In 46617
1006
(Rev 5/13111) 1
(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(° /a)
6. The commonly known address of the Property is:
Vacant lot on Colfax Ave. `L� 1 N
The Key Number(s) of said property is: 01e- 5003 - 005808
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:
12. The redevelopment or rehabilitation project itself will: (a) create permanent,
full -time and 1-o permanent, part-time jobs within the first year, representing a
new annual payroll of $ 23. 000 ; and (b) maintain existing, permanent,
full -time and existing, permanent, part -time jobs (including existing,
permanent, full -time, minority employment of workers and existing, perma-
nent, part-time, minority employment of workers) with a total annual payroll
of $_23,000 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 $ $
Technical $ $
Managerial $ $
Administrative $ $ 23,000
(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 [FTj or Part Time [PTj) EMPLOYMENT WAGE
Part time property manager $18.00
15. Indicate whether your company provides the following benefits (use Y /N):
x Health Care Benefits
• Pension Plan
• 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
2012 $0.00 $0.00
2011 $0.00 $0.00
2010 $0.00 $0.00
2009 $0.00 $0.00
2008 $0.00 $0.00
(This information may be obtained from the St. Joseph County Treasurers 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
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):
No Conversion to residential use of a commercial building "Eligible Building" as
designated by the Community & Economic Development Department.
No 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):
(Rev 5/13111) 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. Market rate multi - family housing in the East Bank neighborhood
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:
28. The Internal Revenue Service Code of Principal Business Activity by which the
proposed project would be classified, by number and description is:
29. The current use of the Property is vacant Lot and the current zoning is _
CBD (This information maybe obtained from the Building Department 235-
9554).
(Rev 5/13/11)
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
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 publicfinancial assistance, including but not limited
to public works improvements.
No
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:
David Matthews
Address:
215 E. Colfax Ave
City, State, Zip:
South Bend, IN 46617
Telephone:
(574) 607 - 4271
E-mail address:
david@MatthewsLLC.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)
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):
East Bank South Bend Development, LLC
By:
(Signed Name)
David Matthews, Member
(Typed or printed name and capacity of signor if
signed by an agent or representative of the owner.)
Filed In fi @ce
CITY CLEW, 5 3 : "s S SEND, IN
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0 « ;n C_ T'
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. & Machine
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:
o The conditions of the abatement
o The timeframe for actions
o An agreement to respond to surveys related to compliance
(Rev. 5/13/11)
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 f
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. 5/13/11)
Yes: 49
Yes: 68
yes: 20
Yes: 20
Yes 22
Yes: 33
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
Yes: 34
Yes: 29
Yes: 28
Yes: 14
Yes: 09
Yes: 42
Yes: 34
Public Benefit Points and thresholds for Additional Abatement Years Total: 402
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)
X: 402 pts. 3 Years + 7 Additional Years: 10 Years
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 tax abatement for industrial or warehousing
developments must agree to work with Workforce Development Services of St. Joseph
County or its successor agency when developing plans and recruiting for employment
positions created.
(Rev. 5/13/11) 4
Filed ivr__..........^ .I floe
CITY CLERK, ZJU o' d SEND, IN