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HomeMy WebLinkAboutConfirming Tax Abatement - The Tower at Washintgon Square LLC 211 W. Washington St. (4 Year Real Property)Attes RESOLUTION 4361 -14 Passed by the Common Council of the City of South Bend, Indiana May 12, 14 2Q_ -. Presented by me to the Mayor of the City of South Bend, Indiana May 13, 20 14 City Clerk dent of Common Council Approved and signed by me /A / / 20 12 . City Clerk RESOLUTION NO. q 310_ I A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 211 West Washington Street AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FOUR (4) YEAR REAL PROPERTY TAX ABATEMENT FOR THE TOWER AT WASHINGTON SQUARE 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 211 West Washington, South Bend, Indiana, and which is more particularly described as follows: Lots 239 & 240 & Vac Alley W & Adj OP and which has Key Number 018 - 1008 -0321 be designated 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 II. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of four (4) 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 sea. 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 - -1 t-( I NOI APPROYID F."ed in Ciar%'a Offices APR -7 Z014 JOAN VOC�ME CITY CLERK, SOUTH SEND, IN 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT April 8, 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: The Tower at Washington Square LLC Dear Council Member Ferlic: PHONE: 574235 -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 they intend to rehabilitate that is identified as 211 West Washington 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, The Tower at Washington Square LLC . proposes to rehabilitate the building at a cost of $3,000,000 over a two year period. A representative of the Petitioner will be available to meet with the Committee on Monday, April 28, 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 -9335. 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 DEVELOPM ENT JITIN KAIN PAMELA C. MEYER CHRIS FIELDING ECONOMIC DONALD E. E. SOURCES 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 SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: The Tower at Washington LLC DATE: April 8, 2014 PHONE: 574/235 -9371 FAX: 574/235 -9021 On April 7, 2014 , a petition for real property tax abatement consideration for property identified as 211 West Washington Street was filed with the City Clerk by The Tower at Washington 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 The petitioner intends to rehabilitate the Chase Tower building which they recently purchased at tax sale. The cost to rehabilitate the facility is $3,000,000 over a two year period. The petitioner will refurbish and renovate such building systems as elevators, plumbing, and heating systems. The petitioner will complete work on the garae and will install new windows. The petitioner will modernize the Office elevators. g PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT JITBJKAIN PAMELA C. MEYER CHRIS FIELDING ECO DO RESOURCES DONNALAL D E. INKS RE: Tax Abatement for The Tower at Washington LLC April 8, 2014 Page 2 The total taxes to be abated during the four year term are estimated at $30,658. Total taxes to be paid during the four -year term are estimated at $1,039, 485. Our municipal city Code does not target service industries for tax abatements. Therefore, approval of this request would be an exception to our Code as this is a service business. The NAIC code for this business is for real estate rental. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create 1 new, permanent full -time position with a payroll of $40,000. The project will retain 18 employees with a payroll of approximately $630.000. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has not been granted any previous abatements. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a four -year real property tax abatement under Section 2 -84, Council's Authority to Enlarge Real Property Tax Abatement General Standards. . a v o o So 0 m om° N rn n 7 md'N N M N N N N r � K O O V M NOV .- N 7 Z F' a O } 0 0 N M L6 06 N r LO w 0000 I� O V O �O D ) M m M W M d' O M OM M F N bO)M (O N M Q m O M M N M N N N N O O o ^ 0 0 0 0 0 (D M M N M a 3 N O N h N O } N N N N M W M� M E ~ - O? I N N N N N O C U ._ N N N N O C1� W Q W N p h U W C Ul �p C J C 0000 O N O O O o t0 M W W 10 M N N M M M M M c ~ L E v 0 V M 01 V Lq (p M M N N Z .O N r n O N N > N O N ? o MIS Or 4. F O O O O M % �. V ON1_ M MN- N N Q N 0 Q O N m ,{r ¢ x CF k � � d iA m N t ~a °a M Nw� °r x nnn� rn d (66( 6 U¢14L N-- O M O W rn rn rn m x� It L6 d L y C j u pCO c > U N �-NM V yA d N (0 ~ d o Y m E th O N y T w m Z5 F U W m o y� N U j N � O � L c N y O T ry c a U N N O D O> m v aOi m E j >? m x x x -o �> E m H dY U m.2 m ov m yN l0 N a N N x CO N N m m d y hM H y Q c .• ~ m u n v � v QQ¢ 0 Z Z a N Z of U 0 U E E � Um� 211 W Washington St, South Bend, IN 46601 Directions, Location and Map I MapQuest M mapiquest, Map of. 211 W Washington St South Bend, IN 46601-1701 city Page I of I I I z 11 -7"� K colombvs�ctl I =w I sfl1ngt0nsC--- 31 933 II SOUTH >0 f S -ILI IS E: N D 1 to W.. w, C0 st I buun I L Ll st, P 11)201�, Quo it - I`Aorus (02014 T T 02014 MapOuest, Inc. Use of directions and maps is subject to the Ma, 4 1 —OMTOMJ MEUM-3i EUR!1 conditions or route usability. You all risk of use. V12—w Terms or, 81. Terms Of Use We make no guarantee Of the OccuracY Of their content, road City of South Bend y' Petition for Incentives Petition must Include a$250fllingfee payable to the City Clerk's Office before can be complete teas ' Project General Information Project Name L�processing Legal name as registered with Secretary of :I:!Te state f flutinewstmcture 7"l 1 9i f02 17 !' Company website Proposed Project information Proposed project address n, I rr( II { Parentompany, name (Jty, State, Zip dP 0 ✓ Lf0 , grf/, O I � eAtILO Legal owner e Siteacreage or acreage required r` -de ,s r istherealestateoumedor /a /Y Square feet of facility Iffeasedbywhom Primary Contact information primary company contact name 1'P 0) erw Title (SoO% Address of company rantatt 'i1, 1.. IN� 1 1... i {1T 1t�s i)N� r y 6 O:koTf�e I Phone S'� [fV 16 1900 City, State, 2)D �b n Email (� Zwje etrote S'� Senior Official Information Comparrysenlor official name i as 0 Rtie Address of company contact (if different from shown) {A� I IS—y� 7 ✓rn Phone (�16j3�i'" —�dfJU Cit My, State, Zip V fn 4f /84 r ffb 'Consultant InforMation/Agent Mali pjfe 4i. Fo( dJ �CQ(ft N1 c Hired business consultant /agent name Consultantrelease(Y/N) Address Local economic development partners one N ON, State, Zip Email Project Overview Brief description of your company, project, and why the property is necessary for / QP Y- SATyy 4, Li rP Y70 y/f'h c/ I)yi l�(i)Yf f:f:WJISJ / G / economicgrowth inCluCf�,y /1110/f)c�j r�Pra ri 1 ���rnl�f�ry r°t at Alva i4� ,a, l j ,rysY ro', °c os: �c• jaf�� T' e- N y, 2yn �e s wC�j(Q`� ✓1 l L --Jo s erdeed Technology Park appropriate Community Revlbgexdon Enhancement [ertHy tlwt the Building Permit has not been En J Numberofresldennas �pltsor. tadby loroteor ". O If this is a petition for Personal property tea abatement, has 'r the equipment been installed 6 fyt -w LCD' 0',V1 COM ,�vw S New Prolect Investments Calendar Year 2014 Land Acquisition .Q DD[hl Building tease Payments 0 Building purchase Costs /c:�0op New Building Construction Odsdng Building improvements p New Machinery & Equipment "!l ti 01 l Spedal Taoling/Retooling New Furniture/Fixtures New Computer /fT Hardware New Software Onslte hall infrastructure Onsite Fiber Infrastructure Full-Time Permanent Indiana-Resldent Positions Calendar Year lobs retained bonuses 2015 0 2016 CJ r t 18 2019 2020 t 0 �, G O a � a ( fi' C? 0 G O b� Q G C. F p / "600,uyl, /Code W sV l d pQ_ d`ati r by Calendar Cumulativelf permaneratjobscreatedatproject Year net NQW Poll time Hourty everagewage,w /o Total training 7#tWo benefits or bonuses, of expenditure- cumulativenetnewjobs not La �Otl.ct� cumuladve 2014 2015 2018 2017 2018 2019 2020 2021 2022 2023 2024 2025 Full time Partonse, Laborers Technical 71 Managerial Administrative o will be the Individual 19FMIble for coon aingvnl WcAtIneonreuultln 7 1 Odesyaar-Ml*nyhave an EEO hiring policy? Areyou an EEOemployer7 the last three Year years: please desalbe your commitment to dlvusltyand induiloo by detallingyour outreach anti reQYltmenl efforts for the last three years as well as current polities. Full Time Part Tme Full Time Part Time Full7lme Part Time Black Hispanic Asian Indian Female other 01WT,t 1) How do I pay my petition Filing fee? Yourpetition flingfee can be paid either in person or via mail to: City Clerk's Office Attn: Deputy City Clerk 227 West fefferson Blvd. • Suite 400 S South Bend, Indiana 46601 2) Certified Technology Park appropriate? (Page one, under project overview) In the South Bend area there are only two Certified Technology Parks, Innovation Park and Ignition Park. If your property is not located in either then the answer would be no. 3) Community Revitalization Enhancement District? (Page one, under project overview) The map below outlines the CRED area, please check to see if you fail within the boundaries. CREeD District Bounda YalaM Y }S FI¢her rwl r��n SPmPw Hpn Ohro fi ;y G+rs: 4) Has any 504 funding been received? (Page one, under investment details) /VO 504 Funding is a loan that come from the Small Business Administration. This funding must be applied for to be received. 5) Total training expenditure - not cumulative (Page two, under full time Indiana resident positions) The amount of money to be spent per yearon training over the course of the project. 6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions) The amount of people thatyou will train per year over the length of the project. If you have any additional questions that are not addressed by this document please contact Sarah Heintzel� the Department of Community Invest mentat574 .235.5842oremailatshein a southbend' . g i 4 i Filed in Clerk S ,r fi n 7 2a1� JCPtdP7 VonRDE SEND, IVl ~ �F igm4m S• =n c � j/ K / a = erwulxnV u — A Legend e x s N $ nmm�nF r. n •�1 _ "" mn;:;M h 5 i_J soe�. Dana va.u�, 3 i .` N 4) Has any 504 funding been received? (Page one, under investment details) /VO 504 Funding is a loan that come from the Small Business Administration. This funding must be applied for to be received. 5) Total training expenditure - not cumulative (Page two, under full time Indiana resident positions) The amount of money to be spent per yearon training over the course of the project. 6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions) The amount of people thatyou will train per year over the length of the project. If you have any additional questions that are not addressed by this document please contact Sarah Heintzel� the Department of Community Invest mentat574 .235.5842oremailatshein a southbend' . g i 4 i Filed in Clerk S ,r fi n 7 2a1� JCPtdP7 VonRDE SEND, IVl Complete ..- Please sign for all requested incentives. Public Benefit Item: Information is required on both the construction companies and the companies which will provide materials purchased for this project. Please complete the table below with the appropriate Information. If you qualify for the points, please enter the full amount of available points. qualify (yes or NO) Earned points Available Points 1 construction Related(Contraggmt: A. Employ Local Companies 175 %) Y 20 B. Purchase Materials from Local Companies (75%) Y 20 C. Require Employees vs. Independent Contractors 19 D. Require. Prevailing Wage (Davis Bacon) 22 E. Require Health Benefits 22 F. Require Pension Benefits 18 G. Maintain Affirmative Action Plan �f r 20 Sub -total Construction Related: 0 1 141 2 Wage & Benefit Related (Ovmert: A. Pay Target Wage Levels 33 B. Provide Health Benefits y 34 C. Provide Pension Benefits N 29 D. Provide Training 28 E. Provide Child Care 15 F. Provide Transportation Assistance 14 G. I Provide Employer Assisted Housing program 9 Sub -total Wage & Benefit Related: 0 162 3 workforce Related: A. Create NevrJobs V 42 B. Retain Existing Jobs 41 C. Maintain Affirmative Action Plan 35 0. Provide Targeted Hiring Preference 34 Sub -total Worldome Related: 0 152 4 Support a Municioal Facility: A. Support a 59 Municipal Facility (donations to the zoo, conservatory, museum, etc.) 84 Name of Facility Sub -total Municipal Facility: 84 Sub -total from Above: 10 539 The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of the City of South Bend for a real and /or personal property tax abatement consideration and pursuant to I.C., 61.1- 12.1 -1, et se ., and South Beqd MunicipakCoAe Sec. 2-76 et sec.. for this petition state the above. ayou rti rrF IY(< [oil 61 1 \ 1 Filed Jn Clark's 0 '14] JOHN YoOE'v I3E CITY CLERK, S®UTN BEN { D, IR! i ECONOMIC INTEREST BACKGROUND QUESTIONNAIRE Your Full Name Your EmaiAdres p / is a ar. f f al a1 %_'Q n h� emu. co rn Your Work •rcicphonc: %IS z r 6 cJ our �tobile'felephone: �/7 J 68i1 -ISd c/ Your Employer's Name rr/� // xo rvtCW %ik V ih is I /- L Your Employer's Address 5 y y V7-111 1'06,w ,r /✓ ///0/ VU / Nature of Your Employer's Business A LC Q Y / /Fi4„ Your Social Security number D53. �o_ 3 Have you ever been convicted of a felony or misdemeanor? If Yes, please list the date, place, nature and disposition of each: Yes Q NgQ State the name of any person(s) or business entity(ies) with which you intend to partner or work with on the intended project in which you are currently in discussi n with the City of South end,LIndian� Have you or any business owned by you ever filed bankruptcy? If yes, please state date and venue. f, Provide any additional information you would like to disclose below or on an attached sheet or check None if there is no other additional information you would like to disclose. NoneE] I AFFIRM ffUE HE PE NALTIES FOR PERJURY THAT MY STATEMENTS ARE TRUE AND ACCURATE TO THE BEST OF LED L Signarrre — Date - — PLEASE SIGN, DATE, AND RETURN THIS COMPLETED FORM VIA E -MAIL TO: Chris Fielding - Assistant Executive Director - Community Investment cfieldin(a,southbendin.Eov (574) 235 -5822 What is the current assessed value? Real Property: 6 lQ� T` L Personal Property: Whet is the projected assessed value? Real Property: Personal Property: What Isthe tax key number for this project? Whet Is the six digit NAICS code? Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes paid for the last five years when applicable. Real Property Taxes: Personal Property Taxes: Year One no Year Two Year Three D Year Four Year Five Staff Use Please fill out the Public Benefit Summary Only as, Points Points Public Benefit Item: DrolectRelatedf 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 35 C. lAchieve a Physical Element ofa Plan 36 Sub -total Project Related: 0 120 6 Super Size Projects 1polnt values are cumulativel: A. 100% to 199% 25 B. 200% to 299% 68 C. 300% to 399% 65 D. 400% and Over 52 Sub -total Super Size Projects: 0 210 7 Pay for Municipal infrastructure: A. Pay for Oversizing or Upgrading 14 B. Pay for 26 -50% of Extension Cost 26 C. Pay for 51 -75% of Extension Cost 39 D. Pay for 76- 100% of Extension Cost 52 Sub -total Infrastructure Related: 0 131 Total from Applicant Section: 0 539 Total from Staff Section: 10 461 Total Public Benefit Points: 0 1000