HomeMy WebLinkAboutConfirming Tax Abatement - Vida Realty LLC 2115 W. Western Ave. (2 Year Real Property)Attest:
RESOLUTION
4350 -14
Passed by the Common Council of the City of South Bend, Indiana
April 28, 14
20 .
Presented by me to the Mayor of the City of South Bend, Indiana
April 29, 20 14
City Clerk
President of Common Council
Approved and signed by me APB) L 21 20 I i .
'vJ
City Clerk
RESOLUTION NO.
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
2115 West Western Avenue
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A TWO -YEAR (2) REAL
PROPERTY TAX ABATEMENT FOR
Vida Realty, 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 1902
West Sample Street, South Bend, Indiana, and which is more particularly described as follows:
Beg. 603.53' E of Inter of
E Right of Way of Olive Street &
N Right of Way of Western Avenue
W %NE' /4 Sec 10 -37 -2E
Cent Approx 6.622 Ac +-
and which has Key Number 018-4096-358109, 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
remonstrances 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 11. The Common Council hereby determines that the annual amount for which
similar buildings in the county were leased or rented or offered for lease or rent during the
period the eligible vacant building was unoccupied is approximately in the amount of
$144,600.
SECTION III. The Common Council hereby determines that the property owner is qualified for
and is granted Real property tax deduction for a period of two (2) 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 IV. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approved by the Mayor.
PRESENTED qv�'o
NO.T. APPP0.VEGt
Filed in Clerk's Office
APR 2 3 2014
CITY CLEF.':,, J (K —REND, IN
227 W. JEFFERSONBOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
March 10, 2014 SCOTT FORD, EXECUTIVE DIRECTOR
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:
Vida Realty LLC
Dear Council Member Ferlic:
PHONE: 574/235 -9371
FAx:574/235 -9021
Please find attached the Department of Community Investment's report on a commercial
real property tax abatement petition from the above - referenced Petitioner for property
that is identified as 2115 West Sample Street. Also attached is a copy of the petition,
Statement of Benefits form, and supporting information.
The report contains the Department's findings relative to the above petition. The
Petitioner,. proposes to rent the vacant building to IRBN, Inc. This project qualifies for a
two year real property abatement under the Indiana State Code. A representative of the
Petitioner will be available to meet with the Committee on Monday, April 14, 2014.
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 -9339.
Sincerely,
Brock Zeeb
Director Economic Resources
Department of Community Investment
Attachments
cc: South Bend Common Council Members
Deputy Mayor Mark Neal
Scott Ford
Chris Fielding
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
Jim KAIN PAMELA C. MEYER CHRIS FIELDING 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: REAL PROPERTY TAX ABATEMENT PETITION FOR:
Vida Realty, LLC
DATE: March 10, 2014
On March 14, 2014 , a petition for real property tax abatement consideration for property
located at 2115 West Western Avenue was filed with the City Clerk by Mr. Jesse Vida
of Vida Realty, LLC. Pursuant to Chapter 2, Article 6, Section 2 -82 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 an Economic Revitalization 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, investigated the
area, and makes the following report.
PROJECT SUMMARY
Vida Realty, LLC is the real estate holding company. IRBN is the lessee. As part of the
company's growth plans, it is in need of centralized warehouse space and distribution
space for their finished food products that is shipped to non - profits, primarily jails and
food banks.
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITIN KAIN PAMELA C. MEYER CHRIS FIELDING DONALD E. INKS
South Bend Common Council
RE: Tax Abatement for Vida Realty LLC
March 10, 2014
Page 2
The company intends to purchase the vacant ABC Supply building and make $100,000 of
building improvements over the next two years. Over the next five years, they will make
$250,000 in improvements.
PLEASE NOTE: The applicant, Vida Realty LLC. , is respectfully requesting a
special exception because the project does not meet the general standards for real
property tax abatement as set forth in Chapter 2, Article 6, Sections 2 -77 through 2-
83.3 of the Municipal Code of the City of South Bend. hidiana State's legislation on
tax abatement has a provision for the granting of tax abatements on properties that have
been vacant for at least one year (IC 6- 1.1- 12.1 -4.8). However, because this is a
relatively new provision, the City's code does not provide for it. The state legislation
provides up to two years of tax abatement on the property subject to certain limitations on
the amount of the property's assessed valuation that can be considered in calculating the
abatement. The petitioner is respectfully requesting that the Common Council grant the
two year exception under this IC exception.
As noted this abatement only applies to a limited portion of the property's total assessed
valuation. This portion is equivalent to the estimate annual rent that the property could
generate. The building has been listed at $2.50 per square foot for the square foot
building. The maximum rent generated would be $142,500 and our estimate of the taxes
abated for two years is less than that amount.
Total taxes to be abated during the two -year (2) abatement period on the assessed
valuation are estimated at $13,187. Total taxes to be paid during the two -year (2)
abatement period on the assessed valuation are estimated at $7,592.
EMPLOYMENT IMPACT
Per the SB -1, it is estimated that the total project will create five (5) new, permanent,
full -time jobs representing a new annual payroll of $200,000. The project will retain nine
(9) positions with a payroll of $500,000.
South Bend Common Council
RE: Tax Abatement for Vida Realty, LLC.
March 10, 2014
Page 3
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has not been granted
or associated with any previous tax abatements:
2. The Building Commissioner has reviewed the petition and finds the property to be properly
zoned for the proposed project.
A review of the South Bend Redevelopment designation areas finds that the property is not
located in a Development area.
4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner does not meet
the qualifications for a real property tax abatement. A two -year (2) real property tax
abatement is being sought as a special exception.
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