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Home My WebLink AboutRecinding Resolutions 4353-14 and 4361-14 211 West Washington (4 Year Real Property) RESOLUTION 4500-15 Passed by the Common Council of the City of South Bend, Indiana September 28, 15 20 . Attest: City Clerk Attest' President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana September 29, 20 15 -104( / City Clerk Approved and signed by me S2 Ter'''l7 e r 2 q ` 20 5 Maya RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND RESCINDING RESOLUTIONS 4353-14 AND 4361-14 WHICH DESIGNATED 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 WHEREAS, a petition for real property tax abatement had previously been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana requesting that the area located at 211 West Washington Street, South Bend, Indiana which is more particularly described as: Lots 239 & 240 & Vac Alley W & Adj OP and which has Key Numbers 018-1008-0321 be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq.; and WHEREAS, the property owner previously petitioned the Common Council for real property tax abatement consideration for the purposes of refurbishing and renovating such building systems as elevators, plumbing and heating systems which had an expected investment amount of$3,000,000 over a two year period; and WHEREAS, the Common Council previously adopted Resolution 4353-14 on April 28, 2014 designating the real property as an Economic Revitalization Area under Indiana Code § 6- 1.1-12.1, et seq., and South Bend Municipal Code Sections 2-76, et seq.; and WHEREAS, the Common Council held a public hearing for the purposes and the public hearing before the Common Council and determined the qualifications for an economic revitalization were met; and WHEREAS, the Common Council previously adopted Resolution 4361-14 on May 12, 2014 which determined that the property owner is a qualified for and granted a real property tax deduction for a period of four(4) years; and WHEREAS, such refurbishing and renovation have not commenced and the property owner now intends to increase the scope of the rehabilitation and has submitted new petitions for tax abatement to reflect the greater investment; and U5.99336782.02 WHEREAS, the Common Council desires to rescind Resolution 4353-14 and Resolution 4361-14 in order to permit the property owner to submit new petitions for tax abatement; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby rescinds Resolution 4353-14 adopted on April 28, 2014 in its entirety. SECTION II. The Common Council hereby rescinds Resolution 4361-14 adopted on May 12, 2014 in its entirety, including its memorandum of agreement. SECTION III_ This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Member of the ..Million Council File: Or ' Office PR?SENTtD 1.�L b r 2 N1 NOT APPROVEgi CITY CI., BEND,IN US.99336782.02 TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 15-88 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, RESCINDING RESOLUTIONS 4352-14 AND 4361-14 WHICH DESIGNATED CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 211 WEST WASHINGTON STREET AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSE OF A FOUR (4) YEAR REAL PROPERTY TAX ABATEMENT Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with no recommendation due to a lack of a quorum. This bill was heard by the Community Investment Committee. Karen L. White Chairperson, Committee of the Whole � �� o45UH/e�tiiCX 227 W.JEFFERSON BOULEVARD ;F /� PHONE:574/235-9371 SUITE 1400 S. v E ��o' FAX:574/235-9021 TW '/ SOUTH BEND,IN 46601-1830 y' _ � �' 2 1865 CITY OF SOUTH BEND PETE BUTTIGIEG,MAYOR COMMUNITY INVESTMENT SCOTT FORD,EXECUTIVE DIRECTOR September 22, 2015 Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Vacant Building Tax Abatement Petition for: The Tower at Washington Square,LLC Dear Council Member Ferlic: Please find the attached information pertaining to vacant building and real property tax abatement petitions for The Tower at Washington Square, LLC: ➢ Department of Community Investment's summary report > Copy of the petitions > Statement of Benefits forms ➢ Supporting information. The report contains the Department's findings relative to the above petitions. As detailed in the accompanying Tax Abatement Report, for each separate petition, the petitioner is requesting exceptions to the local ordinance as allowed by State law. A representative from The Tower at Washington Square, LLC will be available to meet with the Committee on Monday, September 28, 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, 77// Brock Zeeb Filed t <.r,fs Office Director Economic Resources 22 2015 CITY I.1END,IN PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES 11TIN 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: The Tower at Washington Square, LLC DATE: September 22, 2015 Attached please find the petitions of The Tower at Washington Square LLC (the "Petitioner"), seeking real property tax abatement for the real property within the City of South Bend, Indiana, commonly known as 211 West Washington Street (the "Property"). In order to permit Petitioner to increase the scope of the rehabilitation of the Property, Petitioner requests that the Common Council rescind Resolution 4353-14 adopted on April 28, 2014 by the Common Council and Resolution No. 4361-14, adopted on May 12, 2014 by the Common Council which previously designated the Property as an Economic Revitalization Area for the purposes of tax abatement and only for a period of two (2) calendar years. As part of the increase in scope of rehabilitation, the Property shall be subdivided into four (4) separate tax parcels based upon the designated use of each tax parcel. The designated uses of the parcels shall be(i)a hotel; (ii)parking garage; (iii)retail; and(iv)residential apartments.Upon the subdivision of the Property,the Petitioner expects that each parcel will be owned by a separate entity, each affiliated with the Petitioner. The Petitioner requests a vacant building deduction for the parcel designated for a hotel. At this time, the Petitioner also requests a deduction for real estate improvements for the parking garage and the retail uses. The Petitioner expects to file a petition for the apartment use at the next Common Council meeting. The requested tax deduction for the hotel, parking garage and retail is set forth in the tax abatement schedule in each petition. The Petitioner requests that the Common Council now consider the three(3)petitions filed herewith. The Petitioner requests that Common Council consider the petitions and adoption of the related declaratory resolutions prior to such subdivision. The Petitioner shall provide the Common Council with the key numbers for the new parcels prior to the Common Council's consideration of confirming resolutions. PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C.MEYER CHRIS FIELDING BROCK ZEEB The Common Council should note the following exceptions to the local ordinance being requested for each petition: • Tower-Hotel > Standard designation for an Economic Revitalization Area is two years. Petitioner is requesting this be three years. > Project would qualify for a two year vacant building tax abatement. Petitioner is requesting a ten year abatement. > Petitioner is requesting a revised abatement schedule as detailed in the accompanying Designating Resolution • Tower-Retail > Standard designation for an Economic Revitalization Area is two years. Petitioner is requesting this be three years. > Project would qualify for a six year real property tax abatement. Petitioner is requesting a ten year real property abatement > Petitioner is requesting a revised abatement schedule as detailed in the accompanying Designating Resolution • Tower-Parking Garage > Standard designation for an Economic Revitalization Area is two years. Petitioner is requesting this be three years > Project would qualify for a three year real property tax abatement. Petitioner is requesting a ten year real property tax abatement. > Petitioner is requesting a revised abatement schedule as detailed in the accompanying Designating Resolution The Common Council should also note the following business case considerations for allowing an exception to the local ordinance: • The building is the most prominent building in downtown and requires substantial investment to cure mechanical and structural deficiencies • The proposed use fits in with the overall pan for the downtown • The proposed deal structure requires no public cash investment PROJECT SUMMARY FOR THE THREE REQUESTED ABATEMENTS > Total project taxes during ten year abatement period—$4,134,637 > Estimated taxes being abated during ten year abatement period—$2,789,447 ➢ Total taxes to be paid during ten year abatement period—$1,345,190 EMPLOYMENT IMPACT Per the petitions, it is estimated that the total project will: > Create 83 permanent, full-time jobs in the ten year abatement period, representing a new annual payroll of$2,699,715 ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been granted or associated with a previous abatement. 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 does not meet the qualifications for a ten year real property tax abatement under section IC. 6-1.1-12.1-4.8 and requests an exception to the local ordinance. Filed i_-�;T _T r-, Office ,.i. C,,, i,.4{ I L____.. L . .. . _....I CI CLEk . . .. .�.....0 'k - RESULTS 100% 100% 90% 85% 85% 85% 85% 60% 60% 60% 18 pay 19 _ 19 pay 20 20 pay 21 _ 21 pay 22 22 pay 23 23 pay 24 24 pay 25 25 pay 26 26 pay 27 27 pay 28 Base Taxes tax paid Tax abated Parking Garage 70,038 70,038 58,047 58,047 58,047 58,047 58,047 58,047 58,047 58,047 604,456 Hotel - - 7,518 11,278 11,278 11,278 11,278 30,073 30,073 30,073 142,849 640,048 Retail/Commercial 13,693 13,693 11,348 11,348 11,34.8 11,348 11,348 11,348 11,348 11,348 118,173 Residential 60,103 60,103 45,886 45,886 45,886 45,886 45,886 45,886 45,885.6S 45,886 487,292 New Taxes 1,352,770 Parking Garage - - 1,677 2,516 2,516 2,516 2,516 6,708 6,708 6,708 31,863 142,765.25 Hotel - - 22,868 34,302 34,302 34,302 34,302 91,472 91,472 91,472 434,490 1,946,775.75 Retail/Commercial - - 703 1,055 1,055 1,055 1,055 2,813 2,813 2,813 13,359 59,858.43 Residential - - 11,337 17,006 17,006 17,006 17,006 45,349 45,349 45,349 215,409 988,578.55 695,121 3,137,978 Total Paid 2,047,891 Total Abated 3,778,026 Total Taxes 5,825,917 5,825,917 formula check tr-;-''' .."-'.. 11 l 1 . l • gm ,' I R1-.." vn m