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HomeMy WebLinkAboutConfirming Tax Abatement - JSK Development, Inc./Southhold, LLC 121 S. St. Joseph St. (9 Year Real Property)Attest: RESOLUTION 4457 -15 Passed by the Common Council of the City of South Bend, Indiana June 22, 15 20 Presented by me to the Mayor of the City of South Bend, Indiana June 23 Approved and signed by me ,)vne, 93 15 City Clerk President of Common Council 20 LL City Clerk RESOLUTION NO. I S % --T A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 121 South St. Joseph St., South Bend, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A NINE (9) YEAR REAL PROPERTY TAX ABATEMENT FOR JSK Development, Inc. /Southhold, 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 121 South St. Joseph St., South Bend, IN 46601 and which is more particularly described as follows: LOT 38A HALL OF FAME & CHOCOLATE CAFE MINOR SUB AND THE ORIGINAL TOWN OF SOUTH BEND 1sT RP RP6363 09 -30 -08 09/10 and which has Key Numbers 018 - 3001 -0024 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 up to (9) nine 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 v LL_t r i OT APPROVED A"TFQ 6�Z L lr Member of the Common Council Pilau it O' lark'(js Office IS FTMAV CITY GLEN[", SOUTH SEND, IN 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 May 18, 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 RE: First Substitute Filing Real Property Tax Abatement Petition for: JSK Development, Inc. /Southhold, LLC Dear Council Member Ferlic: PHONE: 574/235 -9371 FAx:574/235 -9021 An amended first substitution filing was made regarding the real property tax abatement petition for JSK Development Inc. /Southhold, LLC. The following information was amended from the original filing: ➢ Petition for Incentives - Legal owner name added, Southhold, LLC, on page one ➢ Statement of Benefits SB- 1/Real Property — Section 1, name of taxpayer changed from JSK Development or LLC to be named later to Southhold, LLC ➢ Statement of Benefits SB- 1/Real Property — Section 2, information added that was previously blank ➢ Statement of Benefits SB -I /Real Property — Section 3, number of additional jobs and salaries changed from 42 to 38 to match the Petition for Incentives ➢ Statement of Benefits SB- 1/Real Property — Section 4, information added that was previously blank Should you or any of the other Council members have any questions or need additional information, please feel free to call me at 235 -9339. Sincerely, Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES Jaw KAN PAMELA C. MEYER CHRIS FIELDING BROCKZEEB 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 May 18, 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 RE: Real Property Tax Abatement Petition for: JSK Development, Inc. /Southhold, LLC Dear Council Member Ferlic: PHONE: 574/235 -9371 FAx:574/235 -9021 Please find the attached information pertaining to a real property tax abatement petition for JSK Development Inc. /Southhold, LLC: ➢ 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 $9,250,000. The project meets the qualifications for a (9) nine year real property tax abatement. A representative from JSK Development, Inc. /Southhold, LLC will be available to meet with the Committee on Tuesday, May 26, 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. Sincerely, /1 . Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN ]CAIN PAMELA C. MEYER CHRIS FIELDING BROCKZEEB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEES SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: JSK Development, Inc. /Southhold, LLC DATE: May 19, 2015 On Tuesday, April 21, 2015, a petition from JSK Development, Inc. /Southhold, LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at 121 South St. Joseph St, South Bend, IN 46601. 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 ➢ Construction of a full- service national brand 120 room hotel and connecting annex to the former College Football Hall of Fame. The Hall of Fame would become a multi -use, owner- occupied property which would house all the support services for the new hotel (reception, restaurant, etc.) as well as the new home for JSK Development corporate offices. ➢ $9,250,000 investment in new building construction and building expansion/connection with HOF ➢ Total project taxes during nine year abatement period — $2,410,716 ➢ Estimated taxes being abated during nine year abatement period — $945,911 ➢ Total taxes to be paid during nine year abatement period — $1,464,805 EMPLOYMENTIMPACT Per the petition, it is estimated that the total project will: ➢ Create 33 permanent, full -time and zero (0) permanent, part-time jobs within the PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB first year, representing a new annual payroll of $884,083.20 upon opening. ➢ Retain 0 permanent, full -time jobs with an annual payroll of $0 ➢ Create a total of 38 permanent, full -time and zero (0) permanent, part-time jobs, representing a total annual payroll of $1,108,723.20. In addition, JSK Development, Inc. will be relocating approximately 32 jobs from their corporate office into the downtown building ABATEMENT QUALIFICATION 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 River West Development Area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for up to a (9) nine -year real property tax abatement under section 2 -84.2, Real Property Tax Abatement. O d S O O 'Y b O N W � W O�m � ryO W N IONN t+! N NO(NO N m W oW �2y��0000 Nd 000 N 1°d l� Orr °N^ O rNN NIn I� P W r uJ m N N m N "ills Will 11 N MOM NmN r N O O O $y 000 10 MCI m On ^r n NQV N � N N N 1`M< � Om/a Ny 000 � CS rcM o y 8WW 1 R N�t^+1 V W N IN N N r < N N v Y � d S Y CIS Y V V NNN ¢¢¢III m Oho N NNrHdY�O^W W O Y ya 0 0 O O C Z X 0 p O 0 0 O� O O WW N m 0 0 W b 0 r VQ N m r N U a N N N N N N N w a "-5 mN m m n r r N N Y d F om0 u O jU d, � �NmQnWrmm H > ~ Yom° mO Dd Xtx ' et E ca m 9 ~ Y V NN H tic. Address I local economic development partners approval N City, State, Zip Email I• s i Effam iption ofyou and "'Yon This project involves Construction national brand hole) and connecting annex to the former of a full-ld company, protect, onnia. y, of l'2 become, mo College FOOices Halthe Fame. The HOF would become a he 1 use, owner- occupied properly tie own0r a per,, is all the as property isnecessaryr c) as Development Cuse support services for the new hotel( receDdon, reslauant,etc)es well as the new home for JSK Development corporate e economicgrovRh offices. 011id In X;t'F,t �', JO JO H6d VG tCif r MTV SOUTH SEND, IN Certified Technology p rkappropriate Community Revltelirsad PEnhamement Cerdfolat the Whim Permithasnotbeen N -Not issued Number afre&lde.tial anus created by Ifthis isa petition for Personal property taxabatement, has PI thae mentbeenlustalled ' Land Acquisition Building Lease Payme 1. Building Purchase Cosj II New Building COnstrucdon Existing Building lmpro jements New Machinery & Equi0ment 5pecial Tooling /geWli New Furniture /Fl#ureS 1 New Computer /rr Hard'ytam New Software 0. lice Rail lnfranruct re On -site Fiber infrastm re 2�015 2016 2.017 1 la 2019 2020 2021 2022 SY).W0 515%000 S1 W,000 $250.000 $600,000 $500,000 56,000,000 5250,000 $30%000 5200.000 51.o00,oa0 61,000,000 l i lobsretained i 1 total hourly Cumulative# of no NEW full time wage w/o permanent fobs seated atpro)ect fringeor bonuses Houdyavemeewagew /o Tofalmining TaplRtobe benefitsorbonuses , of expenditure- trained -not consdativenetnewlobs not cumulative amuiative Calendar Year 2015 2016 2017 2018 2019 2020 2021 20u 2023 2024 2025 33 5 $12.88 $21.60 2026 Fulltime Porttime Laborers $9.00 $9.00 Technical Managerial $21.60 Admlmstrativl $11.50 o .11 be the J.d.dual WorkOne relponsuble for coor ma ng cut on remlHn? Ken Herman D¢esyourwmpamy hayean EEO hiring policy? Yes Areyouan EEOempioyer? yes ^r.. . r r TAMA Year h 2012 I _ 2013 2014 Please describe your commitment to diversity and inclusion by detailing your outreach and rmiment efforts for the last three years as well as amet polices. Full Time Part Time Fuilrme Part Time Full Time Part Time Black 6 2 4 Hispanic I ? 3 10 Pala. i Indian i Female I 20 5 t8 Other What is the current assessed value? Real Property: YO Personal Property: Whatistheprojectedats essedvaluc7 Real Property: Personal Property: Whatis the tax key number for this project? w / V .i T Y i J♦ What is the six digit NAr mde7 11 Please attach a Goalie cap and street view ofthe location. I Please list-the amount 6 real and personal property taxes paid for the last five years when applicable. Real Property Taxes: Personal Property Taxes: Year One I yearTwo Year Three Yearlour iYearMve Lam Points Points Public Benefit item: jPro act Related: 5 A. Redevelopa Sitethat has Special Needs 49 B. Develop Basedon Local University Research 35 C. Achieve a Physical Element of a Plan 36 i Sub -total Project Related: 0 120 6 i SuriarSize Prolects fa ' t i iaf eF A. 100% to 199% Z 5 25 B. 200% to 299% 68 C. 300% to 399% S" 65 j D. 400% and Over Z 52 Sub -total Super Size Projects: 0 210 7 Pay for Municipal lydrastruHUre: j A. Pay for Oversizing or Upgrading 14 & Payfor 26-50% of Extension Cost 26 C. Pay for 51-75% of Extension Cost 39 ID. Pay for 76.300% Of Extension Cost 52 Sub -total Infrastructure Related: 0 131 Total from AppRont Section: 539 I Total from Staff Section: e3"/6 0 e 461 Total Public Benefit Points: 32b 1000 Complete below for Real or Personal Property Tax Abatement only. 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 you qualify for the points, please enter the full amount of available (yes or No) - - points. Earned Points Available Points 1 Construction Related fOrmtractorsl: A. Employ Local Companies(75 %) - Y 20 20 B. Purchase Materials from Local Companies (75 %) Y 20 20 C. Require Employees vs. Independent Contractors Y 19 19 D. Require Prevailing Wage (Davis Bacon) Y 22 22 E. Require Health Benefits Y 22 22 F. Require Pension Benefits 1g G. Maintain Affirmative Action Plan Y 20 20 Sub -total Construction Related: 123 141 2 Waee & Benefit Related !Owner): A. Pay Target Wage Levels N 33 B. Provide Health Benefits Y 34 34 C. Provide Pension Benefits N 29 D. Provide Training Y 28 28 E. Provide Child Care N 15 F. Provide Transportation Assistance N 14 G. - Provide Employer Assisted Housing program N 9 Sub -total Wage & Benefit Related: 62 162 3 - Workforce Related: A. Create New Jobs Y 42 42 B. Retain Existing Jobs - 41 C. Maintain Affirmative Action Plan Y 35 35 0. Provide Targeted Hiring Preference 34 Sub -total Workforce Related: 77 152 4 5911e0rt a Municipal FaciIIN: A. Support a58 Municipal Facility (donations to the zoo, conservatory, museum, etc.) y 84 Name of Facility Sub -total Municipal Facility: 184 84 Sub -total from Above: 346 539 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., 6 -1.1. 12.1 -1, et sea., and South Bend Municipal Code Sec. 2 -76 et sea., for this petition state the above.