HomeMy WebLinkAboutConfirming Tax Abatement - JSK Development Inc./Ireland Hospitality LLC 122 Callander St. (6 Year Real Property)Attest:
RESOLUTION
4467 -15
Passed by the Common Council of the City of South Bend, Indiana
July 13,
15
2Q—.
Presented by me to the Mayor of the City of South Bend, Indiana
July 14
15
City Clerk
President of Common Council
Approved and signed by me �y I L� '
20— .
City Clerk
RESOLUTIONNO.
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
122 Callander St. South Bend, IN 46614
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A SIX (6) YEAR REAL
PROPERTY TAX ABATEMENT FOR
JSK Development, Inc. /Ireland Hospitality, 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 122
Callander St., South Bend, IN 46614 and which is more particularly described as follows:
Key Number 023 - 1035 -1759 — Lots 1 &2 & N1 /2 Vac Callender St S & Adj N Pt SW E of
Hwy 029/10 Vac Ord 9885 -08
Key Number 023 - 1035 -1760 — 74.48 x 179.15' Beg 430'S Ireland Rd & E Line US 31 Ex
W 10' to State & N1 /2 Vac Callender St S & Adj 09/10 Vac Ord 9885 -08
Key Number 023 - 1035 -1761 — 60 x 135' On Callander E of US 31 & N %2 Vac Callender
S & Adj 09/10 Vac Ord 9885 -08
Key Number 023 -1035 -1767 — 110 x 141.32' Beg 420.17' E of E Line US 31 & S1 /2 Vac
Callender St N & Adj 09/10 Vac Ord 9885 -08
Key Number 023- 1035 -1768 — In Tr Beg 174.94' E & 673.04' S of Inter Us 31 & E & W
C/L &S1 /2 Vac Callender St N & Adj
Key Number 023 - 1035 -1769 — In Tr 118.25' E Side US 31 Beg 673.04' S of Ireland C/L
& S1 /2 Vac Callender St N & Adj
and which has Key Numbers listed above 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 (6) six 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 q.
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.
Member of the Common Council
:RESENTED ' -k 3 -t
Xt APPCOVID
� --13 �I s—
Filed in ! ':. , : �(�,1I.�ffice
CITY CLERK, SOUTH BEND, IN
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
June 15, 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./Ireland Hospitality, 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./Ireland Hospiltality, 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 $6,000,000. The project meets the qualifications for a
(6) six year real property tax abatement. A representative from JSK Development,
Inc./Ireland Hospitality, LLC will be available to meet with the Committee on Monday,
June 22, 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,
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
Jim KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BROCK ZEEB
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
JSK Development, Inc./Ireland Hospitality, LLC
DATE: June 15, 2015
On Thursday, June 11, 2015, a petition from JSK Development, Inc. /Ireland Hospitality,
LLC was received and subsequently filed with the City Clerk for real property tax
abatement consideration for property to be located at 122 Callander St, South Bend, IN
46614. 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 four story, 81 room Holiday Inn Express featuring standard
amenities including a conference room, business center, indoor swimming pool and
fitness facilities.
➢ $6,000,000 investment in new building construction and removal of three existing
buildings on the site
➢ Total project taxes during six year abatement period— $1,054,265
➢ Estimated taxes being abated during six year abatement period — $446,712
➢ Total taxes to be paid during six year abatement period — $607,553
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will:
➢ Create (14) fourteen permanent, full -time and zero (0) permanent, part-time jobs
within the first year, representing a new annual payroll of $305,760 upon opening.
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITPI KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted, finds that the petitioner has
been granted or associated with previous abatements.
2. The Building Commissioner has reviewed the petition and finds the property to be
properly zoned for the proposed project/ or a variance will be sought by the
petitioner.
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 (6) six -year real property tax abatement under section
2 -84.2, Real Property Tax Abatement.
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City of South Bend
Petition for Incentives
Y
Petition must include p $250 filingfee payable to the City Clerk's Office or online via the City's websife at
htcp://southbendin.gov /government/ content/ tax - abatement before processing can be complete
Is's
Legal name as registered with Secretary of JSK DEVELOPMENT INC
Bdsinessstructure &CORPORATION
Companywebsite WWW,JSKHOTELS.COM
'i Proposed Project Inform ation
Proposed project address 122 CALLANDER STREET Parent company name - N/A
City, State, Zip
SOUTH BEND IN
Legal owner IRELAND HOSPITALITY LLC
Site acreage or acreage required
3.73 ACRES
Is the real estate owned or OWNED
Square feet of facility
I
15,394 S.F. X 4 FLOORS
If leased by whom N/A
Prfmary Contact Information
Primary company contact name
A.J. PATEL
Title PRESIDENT
Address of company contact
247 DIXIE WAY NORTH
Phone 574 - 320 -2784
City, State, Zip I SOUTH BEND IN 46637
Email AJPATEL97 @YAHOO.COM
!Senior Official Information
Company senior official name A.J. PATEL
T'tie PRESIDENT
Address of company contact (if different from
abore)
Phone 574-320-2784
City, State, Zip
Email AJPATEL97 @YAHOO.COM
Consultant Information/Agent
Hired business mnsultant /agent name LANG, FEENEY B ASSOCIATES INC
Consultant release(Y)N) Y
Address
Lon] economic development partners
715 S. MICHIGAN STREET
approval
City, State, Zip
SOUTH BEND IN 46601 Email BERNIE @LANGFEENEY.COM
Project Overview
Brief description of your
3 EXISTING BUILDINGS ARE TO BE REMOVED ON THIS 3.73 ACRE SITE TO MAKE ROOM FOR CONSTRUCTION
company, project, and why the
OF FOUR STORY, 81 ROOM HOLIDAY INN EXPRESS.
property is necessary for
economic growth
THIS CONSTRUCTION WILL NOT NEED EXTENSION OF AN INFRASTRUCTURE TO THE SITE TO- CONSIDER IT
VIABLE FOR THIS DEVELOPMENT SINCE SEWER, WATER, GAS AND ELECTRIC ARE ALL CURRENTLY AVAILABLE.
SITE DEVELOPMENT WILL INCLUDE A SURFACE PARKING LOT CAPABLE OF PROVIDING MORE THAN THE
MINIMUM NUMBER OF REQUIRED PARKING SPACES ALONG WITH ADEQUATE DRAINAGE OF THIS FACILITY.
RRO "'S
THE HOTEL ITSELF WILL CONTAIN STANDARD AMENITIES INC pfgfjJ
fEtJ
CENTER, INDOOR SWIMMING POOL AND FITNES FACILITIES. ir�'1 9 �R Tr,
�I IgCiP.
III QUIN 11 2Q15
JOHN VOORDE
Certified Technology Park appropriate
WA
CLERK, H BEND, IN
Community Revitalization Enhancement
District
Certi"at the Building Permit has not been
YNOT ISSUED
Humber of residential units created by
0
If this is a petition for personal property tax abatement, has
the equipment been installed
Full-Time
Permanent
Indiana-Resident
Positions
by Calendar Year
Calendar Year
Jobs retained
Totalhourly
Cumulative# of net NEW full time
Hourlyavera¢ewage,w /o Total training Total #tobe
we w/o
permanentjobs created
at project
benefits or bonuses, of expenditure- trained -not
fringe or
cumulative net new jobs not cumulative
bonuses
cumulative
2015
N/A
NIA
2016
14
10.50
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Full time
Part time
Laborers
9.00
9.00
Technical
Managerial
21.60
Administrative
11.50
Who will
a the m wi ua rwponst a for coordinating with
KEN HERMAN
WorkOne on recruiting?
Does your company have an EEO hiring policy?
YES
Are you an EEO employer?
VES
Please describe your To—
the last three
years:
diversity and inclusion by detailing your
Year
outreach and recruitment efforts for the last
2D72
2013
2014
three years as well as current polides.
Full Time
Part Time
Full Time
Part Time
Full Time
Part Time
filadc
6
2
4
Hispanic 7
3
10
Asian
Indian
Female 20
5
18
Other
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
you qualify for the points, please enter the full amount of available
points.
Qualify
(Yes or No)
Earned Points
Available Points
1
Construction Related ICOntraotorsl:
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
20
19
D.
Require Prevailing Wage (Davis Bacon)
N
22
E.
Require Health Benefits
Y
22
22
F.
Require Pension Benefits
N
18
G.
Maintain Affirmative Action Plan
Y
20
20
Sub -total Construction Related:
102
141
2
Wage & 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
D.
Provide Targeted Hiring Preference
3,,l
34
Sub -total Workforce Related:
If
152
4
Support a Municipal Facility:
A
Support a SB Municipal Facility (donations to the
zoo, conservatory, museum, etc)
Y
84
84
Name of Facility
DISCOUNT FOR CITY EMPLOYEES
Sub -total Municipal Facility:
184
1
84
Sub -total from Above:
1
36-7 1
539
The undersigned ownef(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 seg., and
South Bend Municipal Code Sec. 2 -76 et sen.• for this petition state the above.
3
I
What is the current assessed value?
Real Property: s2%ao0
Personal Property:
0.00
What is the projected assessed value?
Real Property:
Personal Property:
0.00
What is the tax key numberfor this project?
SEE ATTACHED EXHIBIT'A'
What is the six digit NAICS code?
Please attach a Google map and street view of the location.
Please list the a mount of real and personal property taxes
paid for the last five years when applicable.
Real Property Taxes:
Personal Property Taxes:
Year One
"I"i $ 8 q
Year Two
3-6-
Year Three
jor n tom
Year Four
car /9r S3 �`
Year Five
'� 37t tt/8p'`
Please fill out the Public
Staff Use Only
Benefit Summary Information and
add to the total from above.
Yca N
Points
Points
Public Benefit Item:
Project Related:
5
A.
Redevelop a Site that has Special Needs
L19
49
B.
Develop Based on Local University Research
35
C.
lAchieve a Physical Element of a Plan
36
Sub -total Project Related:
120
6
Super
Size Proiects(point valuesare cumulative(:
A.
100% to 199%
25
B.
200% to 299%
68
C.
3009. 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 -7591 of Extension Cost
39
D.
Pay for 76- 100% of Extension Cost
52
Sub -total Infrastructure Related:
0 131
Total from Applicant Section:
3s /
539
Total from Staff Section:
SS
461
Total Public Benefit Points:
t1
yy /
1000