HomeMy WebLinkAboutConfirming Tax Abatement - Colfax Hill Partners LLC 525 E. Colfax Ave. (8 Year Real Property)Attest:
RESOLUTION
4364 -14
Passed by the Common Council of the City of South Bend, Indiana
May 28,
14
20
Presented by me to the Mayor of the City of South Bend, Indiana
May 29, 20 14.
City Clerk
President of Common Council
Approved and signed by me /"1 0 Z' 201 H .
City Clerk
RESOLUTION NO. 31<D A
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
525 East Colfax Avenue
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF AN EIGHT (8) YEAR REAL
PROPERTY TAX ABATEMENT FOR
COLFAX HILL PARTNERS, 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 525 East
Colfax Avenue, South Bend, Indiana, and which is more particularly described as follows:
Lots 89 -90 55 Ft W End Ea
O P Lowell and
Lot 89
44'N Side
Ex 55' W End
O P Lowell and
110 Ft E End Lot 90 22X 110
Ft S Side E End Lot 89
O P Lowell
and which has Key Numbers 018 -5005 -0128, 018 -5005 -0129, and 018 -5005 -0130 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 up to a period of eight (8) 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.
VIENTED
R0'r 'APPROVED
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CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
April 28, 2014
Council Member Gavin Ferlic, Chairperson
Community Investment Committee
South Bend Compton Council
4th Floor, County City Building
South Bend, IN 46601.
RE: Real Property Tax Abatement Petition for:
COLFAX HILL PARTNERS, LLC
Dear Council Member Ferlic:
.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
construction of a [nixed -use development at 525 East Colfax.
The report contains the Department's findings relative to the above petition. The total
cost for the construction is estimated at $2,900,000. The project meets the qualifications
for an eight -year real property tax abatement and a representative from Colfax Hill
Partners, LLC will be available to meet with the Committee on Monday, May 12, 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,
t
le mg
Director Busine Develop t
Attachments
cc: South Bend Common Council Members
Deputy Mayor Mark Neal
Scott Ford
Brock Zeeb
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SU(a it BErvO. IN 46601 -1830
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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:
COLFAX HILL PARTNERS. LLC
DATE: April 28, 2014
PHIIN.: 574n35 -9371
FAX: 574135 -1x121
On August 28, 2014, a petition for real property tax abatement consideration for property
located at 525 East Colfax was filed with the City Clerk by Colfax Hill Partners, LLC.
Pursuant to Chapter 2, Article 6, Section 2 -84.2 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
Colfax Hill Partners, LLC was formed to purchase and develop the vacant site located on the northwest
corner of Colfax Avenue and Hill Street in South Bend, Indiana. The company's background in
commercial development and leasing, architecture, and construction was primarily obtained in Chicago,
Denver, and Wyoming. They plan to develop a [nixed use building consisting of approximately 4,725
square feet of ground floor commercial space and 18,275 square feet of market rate residential
apartments (13 units) for a total development of approximately 23,000 square feet. Their development
plan reflects urban design principles and meets the criteria established in the East Bank Village Master
Plan for the infill site which has been vacant for over 15 years. They plan to attract and retain the
millennial demographic. The Department of Community Investment and the Redevelopment
Commission have determined that this project is necessary for economic growth and have requested
proposals in order to choose a development partner. Colfax Hill Partners, LLC was chosen because it
PLA]ll\n NEICnBORnOOD ENGAGILMENI at ER DEPr.1.oP %iENr ECOSo+nc RESM RCER
III I\KAI] P%111t I C. NI11'R CIImis Fll I Dna N", D E. NRs
South Bend Common Council
RE: Tax Abatement for Colfax Hill Partners, LLC
April 28, 2014
Page 2
It was determined they best met the established criteria. The site is surrounded by successful area
investment including Eddy Street, the Triangle Neighborhood, St. Joseph High School, and multiple
downtown South Bend projects. The successful development of this site will further the revitalization of
the East Bank Village and Downtown South Bend as well as enhance the ongoing area investment. The
project cost is $2,900,000.
Based on an eight year abatement, taxes abated would be $299,443 and net tax paid would be
$416,172.
EMPLOYMENT IMPACT
Per the petition, are not any jobs forecasted to be retained or created; however, there will be created
jobs for the businesses in the commercial space.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the Petitioner, Colfax Hill Partners,
LLC has not been granted any previous abatements.
2. The Building Commissioner has reviewed the petition and finds the property to beproperlyzoned
for the proposed project.
3. The property is located in the East Bank Business District.
4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the
qualifications for an (8) eight -year real property tax abatement under section 2 -80 Mixed Use
Developments in the East Bank Business District.
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City of South Bend
a °� °T °•�
Petition for Incentives
Petition must include a $250 filing fee payable to the City Clerk's Office before processing can be complete
11ib
General information Project Name Project Number
Legal name as registered with Secretary of Colfax Hill Partners, LLC
Business structure LLC
Company webslte ''.. colfaxalhill.com
Proposed Project Information
Proposed project address, 525 E Colfax Avenue, South Bend, IN Parent company name N/A
City, State, Zip
South Bend, IN
Legal owner Colfax Hill Partners, LLC
Site acreage or acreage required
Approximately 0.5 Acres
Is the real estate owned or Owned
Square feet of facility
22,963 SF
If leased by whom N/A
Primary Contact Information
Primary cumpanycontact ', name
Audm Sieradzki
Title Partner
Address of company contact
1115 Bums Avenue
Phone 773.343.7416
City, State, Zip South Bend, IN
Email Audm @colfaxathill.com
Senior Official
Companysenlor official name Audre Sieradzki
Title Partner
Address of companyantact If different from
Same
Phone 773.343.7416
City, State, Zip '.
Email Audra @colfaxathill.com
Consultant Information/Agent
Hired business consuhan tfagent name Rich Deahl, Barnes B Thornburg
Consultant release lY /Nj
Address
100 N Michigan Street, Suite 700
Lou) economic development partners
a roust y/ N
sty, State, Zip
South Bend, IN 46601 Email rdeahl @btlaw.com
Project Overview
Brief description of your
Colfax Hill Partners, LLC was formed to purchase and develop the vacant site located on the northwest comer of Colfax
company, project, and why the
Avenue and Hill Street in South Bend, Indiana. Our background is in commercial development and leasing,
property is necessary for
architecture, and construction primarily obtained in Chicago, Denver, and Wyoming. We are eager to share our vaned
economlcgrowth
experiences and urban understanding with South Bend through the development 525 Colfax Avenue. We plan to
develop a mixed use building consisting of approximately 4,725 SF of ground floor commercial space and 18,275 SF of
residential apartments for a total development of approximately 23,000 SF. Our development plan reflects urban design
principles and meets the criteria established in the East Bank Village Master Plan for this infll site which as been
vacant for over 15 years. We will be privately investing over $3.1 M to complete this project and believe that the unique
aspects of our design will help to attract and retain the millennial demographic. Community Investment and the
Redevelopment Commission have determined that this project is necessary for economic growth and requested
proposals in order to choose a development partner. Colfax Hill Partners was chosen because it was determined that
we best met the established criteria. This site is surrounded by recent, successful area investment including Eddy
Street, the Triangle Neighborhood, St. Joseph High School, and multiple downtown South Bend projects. The
successful development of this site will further the revitalization of the East Bank Village and Downtown South Bend as
'..
well as enhance the ongoing area investment.
Certified Technology Park I appropriate
No
Community Revitalixatloe En It nce mem
District 1
No
Lenity that the Building Permit has not been
IY/NI htued
N
Number of residential units vested by
ect
13
If this is a petition for personal property tax abatement, has
N/A
the equipment been Installed
Full-Time Permanent Indiana-Resident
Calendar Year Jobs retained
Positions
Totalhourly
wage w/o
fringe or
bonuses
by Calendar Year
Cumulative 11 of net NEW full time
permanent jobs created at protect
Hourly averaee wage, w/o on training Totalgto be
benefits or bonuses, of expenditure- trained - not
cumulative net new jobs not cumulative
cumulative
1014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
I
Fulltime
Parttime
Laborers
Technical
Managerial
I
Administrative
o will
be the Inannouin respons a or
Wor" on rewhin 7
na ng
Does your company have an EEO hiring polky?
Are you an EEO employer?
Year
the last three
years:
Please describe your commitment to
diversity and Inclusion by detailing your
outreach and recrultment efforts for the last
three years as well as torten[ policies.
Full Time
Part Time
Fulf Time
Part Time
Full Time
Part7ime
Black
Colfax Hill Partners, LLC is focused on
providing equal opportunities to all
who are qualified and able to complete
the work. Furthermore, Colfax Hill
Partners is owned and managed by
women and focused on the furthering
of women business enterprises.
Hispanic
Asian
Indian
Female
Other
Fil
2e` «ry
f
r
81`d I
Complete below for Real or Personal Property Tax Abatement . r nq,
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 Qualify Earned Points
you qualify for the points, please enter the full amount of available (yes or No)
points.
Available Points
1
Construction Related IContractorsl:
A.
Employ Local Companies (75 %)
Yes 20
20
B.
Purchase Materials from Local Companies (75 %)
Yes 20
20
C.
Require Employees vs. Independent Contractors
No
0
19
D.
Require Prevailing Wage (Davis Bacon)
No
0
22
E:
Require Health Benefits
Yes
22
22
F.
Require Pension Benefits
No
0
18
G'.
IMaintain Affirmative Action Plan
No
0
20
Sub -total Construction Related:
62
141
2
Wage & Benefit Related IOwnerl:
A.
Pay Target Wage Levels
N/A
33
B.
Provide Health Benefits
N/A
34
C.
Provide Pension Benefits
N/A
29
D:
Provide Training
N/A
28
E.
Provide Child Care
N/A
35
F.
Provide Transportation Assistance
N/A
14
G:
Provide Employer Assisted Housing program
N/A
9
Sub -total Wage & Benefit Related:
0
162
3
Workforce Related:
Al
Create New Jobs
No
42
Bi
Retain Existing lobs
No
41
C:
Maintain Affirmative Action Plan
No
35
D;
Provide Targeted Hiring Preference
No
34
Sub -total Workforce Related:
0
152
4�,
Support a Municipal Facility:
All
j
Support a 58 Municipal Facility (donations to the
200, conservatory, museum, etc.)
Yes
84
84
Name of Facility
Potawatomi Zoo, Center for History, Studebaker Museum
Subtotal Municipal Facility:
84
84
Sub -total from Above:
1 146
539
The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of the y
Of South Bend for a. real and /or personal property tax abatement consideration and pursuant to I.C., 6 -1.1. 12.1.1, et seo., and
W k nicipal Code Sec. 2.76 et seg.• for this petition state the above.
Submitted By: Date:
-For Staff Use Only Below This Line
What is the current assessed value?
Real Property:
Personal Property:
What is the projected assessed value?
Real Property:
Personal Property:
What is the tax key number for this project?
What 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
Year Two
Year Three
Year Four
Year Five
Please fill out the following Public Benefit Summary Information and add to total from above.
V orN
Paints
Points
Public Benefit Item:
'Pro ect Related:
5
A.
Redevelop a Site that has Special Needs
Yes
49
49
B'.
Develop Based on Local University Research
35
C',
Achieve a Physical Element of a Plan
Yes
36
36
Sub -total Project Related:
85
120
6
Super
Size Projects (point values are cumulativel:
Ai
100% to 199%
Yes
25
25
B.
200% to 299%
Yes
68
68
C:
300% to 399%
65
D.
400% and Over
52
Sub -total Super Size Projects:
93
210
7
Payfor Municipal Infrastructure:
A!
Pay for Oversizing or Upgrading
14
B.I
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:
146
539
Total from Staff Section:
1178
461
Total Public Benefit Points:
324
Iona
a od in 'fa3+Rd'y$k,z �--
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JOHN V00"04
CITY CLCP s;, :1;+f eR S< ; jp4
1) How do I pay my petition filing fee?
Your petition filing fee can be paid either in person or via mail to:
City Clerk's Office
Attn: Deputy City Clerk
227 West Jefferson 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 fall within the boundaries.
4) Has any 504 funding been received? (Page one, under investment details)
504 Funding is a loan that come from the Small Business Administration. This fundingmust 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 year on 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 ofpeople that you will train per year over the length of the project.
If you have any additional questions that are not addressed by this document, pleas - co.-qn7�,a�-c ara pv em tFe
Department of Community Investment at 574. 235.5842 or email at sheintzeCa�southbeifdrrPioin cler%9
S� r40114
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4) Has any 504 funding been received? (Page one, under investment details)
504 Funding is a loan that come from the Small Business Administration. This fundingmust 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 year on 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 ofpeople that you will train per year over the length of the project.
If you have any additional questions that are not addressed by this document, pleas - co.-qn7�,a�-c ara pv em tFe
Department of Community Investment at 574. 235.5842 or email at sheintzeCa�southbeifdrrPioin cler%9
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Print - Maps
V bing Maps
525 E Colfax Ave, South Bend, IN 46617
My Notes
On the go? Use m.bing.cnm 10 trod maps, --
&gn:Wns, businesses, and rare
Bend
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Page I of 1
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