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HomeMy WebLinkAboutConfirming Tax Abatement - Rainbow Rascals South Bend LLC 3230 South Bend Ave. (4 Year Real Property)Attest RESOLUTION 4439 -15 Passed by the Common Council of the City of South Bend, Indiana April 27, 15 20 Presented by me to the Mayor of the City of South Bend, Indiana April 28, 2015 City Clerk U 1 C-& President of Common Council Approved and signed by me / y /� /� 20L5. City Clerk RESOLUTION NO. � l 3cI - I S A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3230 South Bend Avenue AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FOUR (4) YEAR REAL PROPERTY TAX ABATEMENT FOR Rainbow Rascals South Bend 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 3230 South Bend Avenue, South Bend, IN 46635 and which is more particularly described as follows: Pt of SW 1/4 SE 1/4 Sec 29- 38 -3e; Ex Part Sold NW Side & Adj to IN 23 and which has Key Numbers 002-2019-041103 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 a 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 seq. 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 \ -0 "1 r- NOT APK()W p Ak O Tff �, +-o -k S. K1-40WMP Filed in Clark's Office 0R� - 7 Zold JOHN V00806 CITY CLERK, SOUTH SEND, IN 227 W. JEFFERSON BOULEVARD SURE 1400 S. SOUTH BEND, IN 46601 -1830 April 6, 2015 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT 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 PHONE: 574/235 -9371 FAX: 574/235 -9021 RE: Real Property Tax Abatement Petition for: Rainbow Rascals South Bend LLC Dear Council Member Ferlic: Please find the attached information pertaining to a real property tax abatement petition for Rainbow Rascals South Bend LLC's new building construction: ➢ Department of Community Investment's summary report ➢ Copy of the petition ➢ Statement of Benefits form ➢ Supporting information. The report contains the Department's findings relative to the above petition. The total cost for the construction is estimated at $1,255,000. The project meets the qualifications for a (4) four year real property tax abatement and a representative from Rainbow Rascals South Bend will be available to meet with the Committee on Monday, April 6, 2015. 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. Sincerel`y,J /� Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding Filed In Office APR, �O)E 015 CITY C4ER soyH END, IN PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JmN KABJ PAMELA C. MEYER CHRIS FIELDING BROCKZEEB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: Rainbow Rascals South Bend LLC DATE: April 7, 2015 On Friday, March 6, 2015, a petition from Rainbow Rascal South Bend LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at 3230 South Bend Ave., South Bend, IN 46635. 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 (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY ➢ Child care center that will provide care for 150 children and create no fewer than 30 jobs for the community ➢ $1,255,000 investment in new building construction ➢ Total project taxes — $160,135 ➢ Estimated taxes being abated during four year abatement period — $63,612 ➢ Total taxes to be paid during two year abatement period — $96,523 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: ➢ Create 20 permanent, full-time and zero (0) permanent, part-time jobs within the first year, representing a new annual payroll of $457,600 ➢ The project will create 30 jobs over five years with a total payroll of $2,962,897. PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RE SOURCES JITRJ KAM PAMELA C. MEYER CHRIS FIELDING BROOK ZEEB ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with 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 South Bend Redevelopment designation areas finds that the property is located in the South Side Development Area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (4) four -year real property tax abatement under section 2 -84.2, Real Property Tax Abatement. April 7, 2015 p. 2 Heraeus Kulzer, LLC 0 `r0000 0 MtmW omw N m 0 0 0 0 M 7 ry m } 0 O l° L f� °I 7 V O M M° M O N c0 N LO e M O O O O o t0 O (O O MM N.� at O0 M O I 0 0 0 o O o ~ O. Y 0 0 M M M M M N G M M O M mt ui � c r o N 0000 o M OM O W a! x '� n y 0 0 0 0 M M M ~ f0 V� m m 0 <1 O M � N O 00 0 000 a O� ONN a 3 H J 0 0 0 0 0 0 0 W O a0 M m m NX M M 0 0 O 0 0 0 0 U 1 N O C C Z N I O O O �ioo v l° t° m M Eces t- &000 0 �'-c� o rn avvv co m a U c N N m a� o 4w 3 3 O C N L O N O O 0 O (p0-M 0 M 0 0 O a0p 0t s o �� 0 Zm 'O N N mx N V M MV fV ? tm h NR mi 000 t+)(p0 I- X000 y IA U r.. jp O O O f0 N a M V 4' M M M M �/'w/ ¢ QUO h •// m N a k 2 V m~ _ Hd N C �O U� m e d C I U; 0 8 0 m°9 ' N p m O O ' L M M M M M M M > W U c L 3� ® ma �� pp i 227 W. JEFFERSON BOULEVARD SurrE 1400 S. SOUTH BEND, IN 46601 -1830 3/16/2015 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR Mr. Charles Bulot Building Commissioner St. Joseph Co. /South Bend Building Dept. 125 S. Lafayette Boulevard South Bend, IN 46601 RE: Commercial Property Tax Abatement Petition For: Rainbow Rascals South Bend LLC Dear Mr. Bulot: PHONE: 574/235 -9371 FAX: 574/235 -9021 Please review the enclosed tax abatement petition for the above identified petitioner for the purpose of determining whether this project has met all zoning requirements. I also ask that you confirm whether or not any building permits have been issued for this project as of the date that you process this request. If a building permit has been issued, please indicate in your report the date of issue and include a copy of the permit with your report. This information will be included in a written report to the Community Investment Committee of the South Bend Common Council in order to determine tax abatement eligibility. I would appreciate your written determination by Tuesday, March 17, 2015. I thank you in advance for your time and consideration and, if you should have any questions, please call me at 235 -5823. Sincerely, jz-r-� Aaron Kobb Department of Community Investment Enclosures Filed in CIimsk° ff L Fo p -'` 7 2015 CITY C � HN . :-. Z� — '� +ii SEND, IN PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES IRIN KAIN PAMELA C. MEYER CHRIS FIELDING BROOK ZEEB City of South Bend Petition for Incentives alyaeT.,,�o ° Petition must include o $250iffing fee payable to the City Clerk's Office or online via the City's website at http: / /southbendin.gov /government/ content /tax - abatement before processing can be complete 1865 General Information - Rainbow Child Care Cente - 14 -0038 Legal name as registered with Secretaryof Rainbow Rascals South Bend LLC Suite Business stmcture Limited Liability Company Company website www.rainbowcoc.com Proposed Project Information Proposed project address 17288 State Road 23 Parent company name Rainbow Child Care Center City, State, Zip South Bend, IN 46635 Legal owner Patrick Fenton Site acreage or acreage required 1.5 Is the real estate owned or Owned Square feet of facility 10420 If leased by whom Primary Contact Information Primarycompanycontact name Chauncey Hitchcock Title In -House Counsel Address of company contact 1732 Crooks Road Phone 2485191928 City, State, Zip Troy, MI 48084 Email chitchcockPrainbowcc..corn Senior Official Information Company senior official name Patrick Fenton Thle Owner i Address of company concoct (if different from Phone City, State, Zip Consultant Information/Agent Email pfentonQrainbowccawm Hired business consultant /agent name NONE ConzulWmrelease lT /N) Address Local economic development partners aamroval N City, State, Zip Email Project Overview Brief description of your We are a National Child Care provider servicing children from 6 weeks to 6 years of age. Our services go hand in hand with company, project, and why the the economic growth of any thriving community. Residents and business alike benefit from quality child care. Our center will property is necessary for provide care for 150 children and create no fewer than 30 jobs for the community. economicgrowth We are installing an additional 300 LF of underground sewer Main along our property to the North for future surrounding community growth and to lend benefit to the surrounding properties. This 300' of additional Sewer Service serves absolutely no purpose for our use and is being provided strictly for future benefit of the City and surrounding properties. Filed i .. , - ` Office Certified Technology Park appropriate - Community Revitalization Enhancement District Certify that the Building Permit has not been YES Number of residential units created by issued IY/Nl TED If this is a petition for personal property tax abatement , has theequipment been installed NO Building Construction Machinery Equipment New Furniture /Fixtures New Computer /IT Hardware New Software On -site Rail Infrastructure Dn -site Fiber Infrastructure 2014 2015 2016 2017 2018 2019 2020 2021 Calendar Year Jobsretained Totalhourly Cumulative d of net NEW full time Hourly average wage, w/o Totaltraining Tolzllltobe wage w/o permanent jobs created at project benefits or bonuses, of expenditure- trained-not fringe or cumulative net new jobs not aunubth" honuses cumulative 2014 0 0 0 0 0 0 2015 20 11.00 0 0 2016 21 11.29 0 0 2017 24 11.57 0 0 2018 27 12.00 2019 30 12.19 2020 2021 Full-Time Permanent Indiana-Resident Positions Calendar Year Jobsretained Totalhourly Cumulative d of net NEW full time Hourly average wage, w/o Totaltraining Tolzllltobe wage w/o permanent jobs created at project benefits or bonuses, of expenditure- trained-not fringe or cumulative net new jobs not aunubth" honuses cumulative 2014 0 0 0 0 0 0 2015 20 11.00 0 0 2016 21 11.29 0 0 2017 24 11.57 0 0 2018 27 12.00 2019 30 12.19 2020 2021 2022 2023 2024 2025 Fulitime Parttime Laborers 16 5 Technical 1 0 Managerial 2 0 Administrative 1 0 o will be the in ivi ua responsible for coordinating wit WorkOne on recruiting? Lindsey Wilson Does your company have an EEO hiring policy? Are you an EEO employer? Yes Yes - Please describe your commitment to three the last diversity and inclusion by detailing your Year outreach and recruitment efforts for the Wst 2013 2014 20158 three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black 73 240 265 We seek unique individuals who are team players and dedicated to creating Hispanic 8 32 36 and maintaining a positive leaming environment that is coupled with Asian 3 18 20 laughter and smiling faces. Our 3 year Indian 0 0 0 growth has demanded the recruitment of exceptional team members, Female 2252 2198 2370 throughout our organization. We are committed to our communities and there Other families. Complete below for Real or Personal Property 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 Paid 1 Construction Related (Contractors): 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 19 D. Require Prevailing Wage (Davis Bacon) No 22 E. Require Health Benefits No 22 F. Require Pension Benefits No 18 G. Maintain Affirmative Action Plan Yes 20 20 Sub -total Construction Related: 60 141 2 Wage Benefit Related (Ownerl: A. Pay Target Wage Levels No 0 33 B. Provide Health Benefits Yes 34 34 C. Provide Pension Benefits Yes 29 29 D. Provide Training Yes 28 28 E. Provide Child Care Yes 15 15 F. Provide Transportation Assistance No 0 14 G. Provide Employer Assisted Housing program No 0 9 Sub -total Wage Benefit Related: 106 162 3 Workforce Related: A. Create New Jobs Yes 42 42 B. Retain Existing Jobs Yes 41 41 C. Maintain Affirmative Action Plan Yes 35 35 D. Provide Targeted Hiring Preference Yes 34 34 Sub -total Workforce Related: 152 152 4 Support a Municipal Facility: A Support a 58 Municipal Facility (donations to the zoo, conservatory, ry, museum, etc.) o 0 gq Name of Facility N/A Sub -total Municipal Facility: 10 84 Sub -total from Above: 318 539 The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of theQy 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 sea,ad SouthKnd Municipal Code Sec. 2 -76 et seg., for this petition state the above. 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 NAILS 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 Taxe _`ty Year One Year Two Year Three G Year Four Year Five Staff Use Please fill out the Public Benefit Summary Information Only and add to the total from above. or N Points Points Public Benefit Item: Protect Related: 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan 36 Sub -total Project Related: 0 120 6 Super Size Projects (point values are cumulatjvel- A. 100% to 199% 25 B. 200% to 29991 68 C. 30051 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 26-5091 of Extension Cost 26 C. Pay for 51 -75% of Extension Cost 39 D. Pay for 76-10091 of Extension Cost 52 Sub -total Infrastructure Related: 0 131 Total from Applicant Section: 318 539 Total from Staff Section: 0 461 Total Public Benefit Points: 318 1000 The undersigned owners) of real property, located within the City of South Bend, herby petition the Common Council oftheck of South Bend for a real and /or personal property tax abatement consideration and pursuant to I.C. 61.1- 12.1 -i, et tea. ,and Sout]�Wd Municipal Code Sec. 2.76 et seo., for this petition state the above.