HomeMy WebLinkAboutConfirming Tax Abatement - 211 N. Eddy Street - The South Bend Clinic, LLP, South Bend Mac, L.P. & Eddy Property Development, LLCRESOLUTION
3712-07
Passed by the Common Council of the City of South Bend, Indiana
February 26,
Attest:
07
20
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
February 27,
20
07
Approved and signed by me February 28 2007
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~~~~e-_
City Clerk
RESOLUTION NO. 3 ~ 12 - 0
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORYRESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OFSOUTH BEND, INDIANA, COMMONLY
KNOWN AS
211 N. EDDY STREET
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A THREE (3) YEAR REAL
PROPERTY TAX ABATEMENT FOR
THE SOUTH BEND CLINIC, LLP, SOUTH BEND MAC, L.P. &
EDDY PROPERTY DEVELOPMENT, 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
211 N. Eddy Street, South Bend, Indiana, and which is more particularly described as
follows:
PARCEL I: Apart of the East Half of the Northeast Quarter of Section
12, Township 37 North, Range 2 East, of the Second Principal Meridian,
Portage Township, City of South Bend, St. Joseph County, Indiana, and
described as Lots 1 through 14, all inclusive, as shown on the recorded
Plat of Christiana Hall's Subdivision, together with 14.00 feet vacated
alley lying North/South and East/West as shown on the drawing, more
particularly described as follows: Beginning at the intersection of the
North right-of--way line of Colfax Avenue (U.S. Highway 20) with West
right-of--way line of Eddy Street, said point being identified by a cross cut
in the sidewalk; thence North 89°54'32" West (bearing assumed) along the
North right-of--way line of Colfax Avenue 388.50 feet (platted 387.00
feet) to a point at the intersection of the North right-of--way line of Colfax
Avenue with the East right-of--way line of Frances Street; thence North
00°00'00" East along the East right-of--way line of Frances Street, 410.00
feet to the intersection of the South right-of--way line of LaSalle Avenue
with the East right-of--way line of Frances Street; thence South 89°54'32"
East along the South right-of--way line of LaSalle Avenue, 388.50 feet
(platted 387.00 feet) to the intersection of the South right-of--way line of
LaSalle Avenue with the West right-of--way line of Eddy Street; thence
South 00°00'00" East along the West right-of--way line of Eddy Street,
410.00 feet to the point of beginning.
EXCEPTING THEREFROM THE FOLLOWING: Apart of Lot 10 in
Christiana HaII's Subdivision of Large Lot or Block 15 in Samuel L.
Cottrell's First Addition to the Town of Lowell, now within and part of
the City of South Bend, Indiana, the plat of which is recorded in Plat Book
2, page 66, in the Office of the Recorder of St. Joseph, Indiana, described
as follows: Beginning at the Northeast corner of said Lot 10; thence South
0°06'00" West 20.00 feet along the East line of said Lot 10; thence North
36°46'12" West 25.00 feet to the North line of said Lot 10; thence South
89°54'00" East 15.00 feet along said North line to the point of beginning.
PARCEL II: Apart of the East Half of the Northeast Quarter of Section
12, Township 37 North, Range 2 East, of the Second Principal Meridian,
City of South Bend, Portage Township, St. Joseph County, Indiana, and
described as follows: A part of Lot Fourteen (14) in Cottrell's First
Addition to the City of South Bend, Indiana, as recorded under Plat Book
1, page 49, dated April 28, 1854, at the Office of the Recorder, St. Joseph
County, Indiana, and described as follows: Beginning at a point 138.00
feet North of the Southeast corner of said Lot 14, said Southeast corner of
Lot 14 being at the intersection of the North right-of--way line of Colfax
Avenue with the Westerly right-of--way line of Frances Streets thence
North 89°54'32" West (bearing assumed), 92.00 feet; thence North
00°00'00" East, 60.00 feet; thence South 89°54'32" East 92.00 feet; thence
South 00°00'00" East, 60.00 feet to the point of beginning, TOGETHER
WITH the North Half of the vacated alley lying South and adjacent to the
parcel described above, and also TOGETHER WITH a part of Lot 14 in
Cottrell's First Addition to the City of South Bend, Indiana, and described
as follows: Beginning at the Southeast corner of said Lot 14, said point
being at the Intersection of the North right-of--way line of Colfax Avenue
with the West right-of--way line of Frances Street; thence North 89°54'32"
West, 165.00 feet; thence North 00°00'00" East, 128.00 feet; thence South
89°54'32" East, 165.00 feet; thence South 00°00'00" East, 128.00 feet to
the point of beginning, TOGETHER WITH the South Half of the vacated
alley lying North and adjacent to the second parcel described above;
and which has Key Numbers 18-5017- 0494, 18-5016-056101, 18-5016-056102, 18-
5016-0563, 18-5016-0564 and 18-5016-0566, 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 a period of three (3) years,
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 .
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 C on Council
.z~-ol
PRESENTED Z
NOT APPROVED
ADOPTED Z ~ '~~, -v~
Filed In C1~rk's Office
F E d 1 7. 2007
JG ~•i ~lavR~E
CITY CtF";S, °^. CcNa, fN.
1200 COUNTY-CITY BUILDING
227 W JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
January 15, 2007
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~ ECONOMIC DEVELOPMENT
Council Member Roland Kelly, Chairperson SHARON T. KENDALL
Community & Economic Development Commi~tee uTrvE DIRECTOR
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
THE SOUTH BEND CLINIC
Dear Council Member Kelly:
Please find attached the Department of Community & Economic Development's report on a commercial real
property tax abatement petition for the above-referenced petitioner for expansion of a facility located at 211 North
Eddy Street. Also attached is a copy of the petition, Statement of Benefits form, and supporting information.
The report contains the Department's findings relative to the above petition. The petitioner, The South Bend Clinic
proposes to add a (3) three-story, 104 square foot building addition connected to the existing 100,000 square foot
medical office structure, along with a (3) three-story and (2) two story parking lot structure. The total cost of the
project is estimated to be between $30 to $33M. Please note that the Clinic is asking for a special exception
because the application does not meet the general standards for a real property tax abatement as set forth in
the City's ordinance The South Bend Clinic is seeking a (3) three-year real property tax abatement, and a
representative of The South Bend Clinic will be available to meet with the Committee on Monday, February 12,
2007.
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 235-5825.
Sincerely,
Sharon Terrell
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
Bill Schalliol
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574!235-9371 ELizASErH LEON.4Rp
FAX: 574/235-9697 574/235-9371
1200 C.oUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~L ECONOMIC DEVELOPMENT
SHARON T. KENDALL
EXECUTNE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: SHARON TERRELL~
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
THE SOUTH BEND CLINIC
DATE: January 15, 2007
On January 8, 2007, a petition for real property tax abatement consideration for property located at
211 North Eddy Street was filed with the City Clerk by The South Bend Clinic, LLP and its wholly-
owned subsidiary, Eddy Property Development, LLC. The applicant is asking for a special
exception because the project does not meet the general standards for real property tax
abatement set forth in Chapter 2, Article 6, Section 2-77 through 2-83.3 of the Municipal Code
of the City of South Bend. Pursuant to Chapter 2, Article 6, Section 2-82 of the Municipal Code of
the City of South Bend, this petition was referred to the Department of Community and Economic
Development 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 and Economic Development has reviewed the petition (a copy of
which is attached), investigated the area, and makes the following report.
PROJECT SUMMARY
The South Bend Clinic will add a new (3) three-story 104,000 gross square foot building addition
connected to the existing 100,000 square foot medical office structure and two separate tiered
parking structures -one will be a (3) three-story parking structure and the other will be a (2) two-
storyparking structure, all on the main campus of the South Bend Clinic located on Eddy Street.
The overall project is critical to accommodate growth in new physicians by the Clinic to serve an
increasing patient population. In addition, the project will replace and expand current ambulatory
surgical facilities.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCUIL SC PROGRAM
PA\1ELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 EL[ZABE'I'H LEONARD
FAX: 574/235-9697 574/235-9371
South Bend Common Council
RE: Tax Abatement for The South Bend Clinic
January 15, 2007
Page 2
The project is estimated to cost between $30 and $33M. Total taxes to be abated during the (3)
three-year abatement period is estimated at between $2,047,465 and 2,252,212. Total taxes to be
paid during the (3) three-year abatement period is estimated at between $1,039,166 and 1,143,083.
After discussions between City staff and the Clinic, it was determined that only (3) three years of
base abatement would be applied for instead of working through the Points Benefit Summary to
score additional years. Staff was willing to support the request as a business incentive to add in alI of
the additional development requirements for the project, but also wanted to protect the TIF increment
generation of the NNDA TIF Allocation Area.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create (40} forty new, permanent, full-time
jobs and (6) six new, permanent part-time jobs representing a new annual payroll within the first year
of $4.86 million. The project will also maintain (409) four hundred nine existing, permanent, full-
time jobs and (62) sixty-two existing, permanent, part-time jobs with an annual payroll of $34.5
million.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been granted or
associated with one previous tax abatements:
Term/Type Resolution No. Date
5-year real property 3679-07 1/22/2007 (Declaratory
Resolution)
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 Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area;
therefore, the petition for real property tax abatement must first be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner does not meet
the qualifications for a real property tax abatement. A (3) three-year real property tax
abatement is being sought as a special exception.
Tax Abatement Schedule prepared for: 15-Jan-o7
THE SOUTH BEND CLINIC, LLP
South Bend Porfage Township 3 Year Real Property Abatement Schedule*
Total estimated Project Cost: $30,000,000
Base Assessed Value: $25,500,000
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 5.1524%
Assume constant SRTC of: 21.6906%
Assessed Gross Less Net Percent Tax Tax
Year Value Tax SRTC Tax Abated Abated Paid
~
1 $25,500,000 $1,313,862 $284,985 $1,028,877 100% $1,028,877 $0
2 25,500,000 1,313,862 284,985 1,028,877 66% 679,059 349,818
3 25,500,000 1,313,862 284,985 1,028,877 33% 339,529 689,348
$3,086,631 $2,047,465 $1,039,166
Total Taxes Due During Abatement:
Totai Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
$3,086,631
2,047,465
1,039,166
* -This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
Tax Abatement Schedule prepared for: 15-.Ian-o7
THE SOUTH BEND CLINIC, LLP
Soufh Bend Portage Township 3 Year Rea! Property Abatement Scheduie*
Total estimated Project Cost: $33,000,000
Base Assessed Value: $28,050,000
(base assessed value is estimated at 85% of project cost)
Assume constant tax rate of: 5.1524%
Assume constant SRTC of: 21.6906%
Assessed Gross Less Net Percent Tax Tax
Year Value Tax SRTC Tax Abated Abated Paid
1 $28,050,000 $1,445,248 $313,483 $1,131,765 100% $1,131,765 $0
2 28,050,000 1,445,248 313,483 1,131,765 66% 746,965 384,800
3 28,050,000 1,445,248 313,483 1,131,765 33% 373,482 758,283
$3,395,295 $2,252,212 $1,143,083
Total Taxes Due During Abatement:
Total Taxes Abated During Abatement:
Total Taxes Paid During Abatement:
$3,395,295
2,252,212
1,143,083
-This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values vrill ultimately be determined by the actual
assessed valuation and the then current tax rates.
CITY OF SOUTH BEND PETITION FOR
REAL PROPERTY TAX ABATEMENT CONSIDERATION
The undersigned owner(s) of real property, located within the City of South Bend, hereby
petition the Common Council of the City of South Bend for real property tax abatement
consideration and pursuant to I.C. 6-1.1-12.1-1, et se ., and South Bend Municipal Code Section
2-76, et seg., for this petition states the following:
Describe the proposed redevelopment or rehabilitation project, including information
about physical improvements to be made, the proposed use of the improvements, and a
general statement as to the importance of the project to your business.
The proposed project will add (a) a new 3-story 104,000 building_ orb ss square foot
addition connected to the existing 100,000 square foot medical office structure, and (b)
two separate tiered parking structures -one of which will be a 3-story parking structure
and the other which will be a 2-stormsstructure, all on the main campus of The South
Bend Clinic ("Clinic") eg nerally located at 211 N. Eddy Street in South Bend. All
construction will be performed on existing real estate owned by the Clinic and its
affiliated entities (including certain property recently acquired as a result of the vacation
of a portion of Francis St. (between Colfax Ave. and Luther Ct.) approved by the South
Bend Common Council. The project will conclude with some renovation and retrofitting
of the existing 100,000 s.f. structure to accommodate new physicians and chap es in
particular space use. The overall project is critical to accommodate growth in new
physicians by the Clinic to serve an increasing patient population. Additionally, the
project will replace and expand current ambulatory surgical facilities on ig na11X
constructed in 1984 and now terribly undersized for demand and technology. Inability to
expand on site will result in expansion elsewhere, and loss of clinical integration and
economy of scale otherwise available in a single site operation. The project will also
allow the Clinic to relocate three satellite offices to the expanded main campus for eater
economy of scale. Two of the satellite offices are located within two blocks of the
Clinic's campus in leased space, while the third office is in Gran er in property owned by
the Clinic. This relocation will reduce operating expenses associated with third party
leases as well as bring clinicians together in a single facility for greater clinical
integration and collaboration.
Land Size 4+/- acres; Building Size 205,338 BGSF (consisting of 104,000 sq. ft. new
building addition) plus two new tiered parking structures.
2. Describe the overall nature of the business and of the operations occurring at the Property
(Please attach additional sheet if more space is needed):
The South Bend Clinic provides a comprehensive array of ambulatory/outpatient medical
services through physicians and allied health providers The expanded and renovated
facilities will offer the services of up to 91 physicians and mid-level medical~roviders
(as compared to 50 in current facilities specializing in 21 different primary care medical
and surgical subspecialties. Supporting the ~hysicians will be a complement of expanded
on-site diagnostic services including radiology, clinical laboratory, cardiac dia ostic
neurological,_pain visual and auditory services. The current 2 suite/4500 s.f. outpatient
sur ery center will be replaced and expanded with a 8 suite 22 000 s.f. center. The
physicians serve a patient population from obstetric and newborn care through children
adolescents adults and the elderly. In addition to routine physician office visits,
outpatient surgery and diagnostic tests, on site procedural services include minor office
surgery and care of acute injury, flexible siQmoidoscopy, dermatologic services, skin
cancer surgery and cosmetic dermatology, routine fracture care, and retail pharmac}_and
optical dispensing and hearing aid services. Current facilities are frequented by well over
1,000 patient per day (M-F) seeking medical care.
3. Estimate the dollar value of the project (excluding land): $32,984,000 for construction
and A&E fees, but not including owner's costs for fixtures and furnishings estimated at
$3,500,000 or financing fees and interest expense.
4. The current assessed valuation of the real property before rehabilitation, redevelopment,
economic revitalization, or improvement: $5,517,530
5. (a) The real property for which tax abatement consideration is petitioned (Property) is
owned or to be owned by the following individuals or corporations (if the business
organization is publicly held, indicate also the name of the corporate parent, if any,
and the name under which the corporation has filed with the Securities and Exchange
Commission):
Name Address Interest
Eddy Property Development, LLC, a wholly owned real estate entity of The South Bend
Clinic, LLP; and South Bend MAC, LP, an affiliated partnership owning current facilities
and real estate. All entities have address of record as 211 N. Eddy St, South Bend, IN
46617
(b) The following other person(s) lease, intend to lease, or have an option to buy the
Property (include corporate information as required in (5)(a) above, if applicable):
Name Address Interest
The South Bend Clinic, LLP, 211 N. Eddy St., South Bend, IN 46617--Lessee
6. The commonly known address of the Property is: 211 N. Eddy St, South Bend, Indiana
46617
7. The Key Number(s) of said property is: 018-5017-0594 plus contiguous minor parcels
which will be used to facilitate the development (see Attached Exhibit
D).
8. A legal description of the above address is attached hereto, marked "Exhibit A," and
-2-
incorporated herein. See Attached Exhibit A
9. A map and/or plat describing the Property is attached hereto, marked "Exhibit B," and
incorporated herein. See Attached Exhibit B
10. Photographs of the Property, taken within two (2) weeks of filing of this petition, are
attached hereto, marked "Exhibit C," and incorporated herein. See Attached Exhibit C
11. The redevelopment or rehabilitation pro~ect itself will create 40 full-time and 6 part-time
permanent jobs~a~ within the first year ~, representing a new annual payroll of 4.86
millions°~ and will maintain 409 existing permanent full-time and 62 existing permanent
part-time jobs with an annual payroll of $34.5 million~`~ including existing permanent
full-time minority employment of 52 and existing permanent part-time minority
employment of 7.
Footnotes to # 11
(a) New positions include medical providers physicians and mid level providers) as
well as support staff.
fib) Due to the timing of additions to bring online the new facilities, first year has
been assumed to be the twelve months before and/or after the opening of the new facility.
(c) Compensation includes additional benefit cost/contribution factor of 27% for
retirement plan, medical, dental, life insurance, FICA, etc. Payroll for physician
providers (i.e. partners or associate partners) is calculated by their contract or estimated
K-1 earnings.
12. The projected annual salaries for each new position indicated above are estimated to be as
follows (If more space is needed, please attach a separate sheet):
All total compensation figures which follow do not include a 27% benefit factor on top of
base salary or hourly wage rates. Average compensation per physician providers is
estimated at $179,000. Average compensation per Medical Assistant is 12.50/hr.
Average compensation per Audiologist is $50,000/yr. Average compensation per Nurse
Practitioner is $65,000/yr. Average compensation per Registered Nurse is 16.00/hr.
Avera a compensation per Licensed Practical Nurse is 12.50/hr. Avera_ eg compensation
per Radiological Technologist is 18.00/hr. Average compensation per Clinical Float staff
is 14.00/hr. Average compensation per Phlebotomist is 10.00/hr. Avera eg compensation
per clerical and records staff is 10.00/hr. Average compensation per Patient Service
representative is 12.00/hr. Avera eg_ compensation per Accounts Receivable and Collector
staff is 14.00/hr. Avera a compensation per Administrative, Human Resource and
Information Systems staff is $57,000/yr.
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13.
List the real and personal property taxes paid at the location during the previous five
years, whether paid by the current owner or a previous owner:
Year Real Property Taxes Personal Property Taxes
14.
15.
See Attached Exhibit D for five year history of real and personal property tax patents
on primary and minor Conti ous parcels
(Please contact the St. Joseph County Treasurer's office at 235-9531 for this
information.)
Please list the number of minority employees for each of the last three years:
YEAR 2006 YEAR 2005 YEAR 2004
FULL PART FULL TIME FULL PART
Black 35 5 23 3 29 4
Hispanic 14 2 9 1 6 0
Asian 1 0 0 0 0 0
Indian 3 0 3 0 1 0
Other NA NA NA NA NA NA
Data Source: South Bend Clinic EEO-1 report
What is the commitment your firm makes to minority employment during the next five
years?
The South Bend Clinic is an equal opportunity employer. Employment decisions are
based on merit and business needs, and have not been based on race, color, citizenship
status, national origin, gender, age, reli ion, physical or mental disability, veteran status,
or any other factor protected by law. The South Bend Clinic does, however, follow a
strategy to attract minority candidates for positions and will continue to do so during the
next five (5) years as the Clinic pursues its expansion efforts. The South Bend Clinic is
committed to minority recruitment and hiring in all its offices and positions. The Clinic
provides externship opportunities for local students in medical training_programs offered
by such institutions as Ivy Tech and Brown Mackie colleges. Clinic employment
recruitment strategy relies heavily on media (newspaper and internet as opposed to walk
in applicants. Additionally, the Clinic commits to targeting minority recruitment and
hiring opportunities through area publications and internet web sites specifically designed
for and targeting minority populations and new efforts with the Workforce Development
Department. In recent hiring, the Clinic has specifically targeted individuals of Hispanic
origin and speaking skills to as to better serve an increasing Hispanic population seeking
medical care. Additionally, the Clinic will continue its relationship with Logan Center
providing employment opportunities for the disabled Depending on the position to be
recruited, targeted minority hiring sources the Clinic can and will use include IUSB
diversity departments and publications and web sites such as: African-American Career
World, Hispanic Career World, Women in Business, Careers & the disabled, National
Black Nurses Association, Indian Country Today, Veterans Today, and other tar eg tied
associations and publications.
-4-
16. No building permit has been issued for construction on the property in connection with
the improvement in question as of the date of filing of this petition. (The signature at the
end is verification of this statement.)
17. The Standard Industrial Classification (SIC) or North American Industry Classification
Systems (NAILS) major group within which the proposed project would be classified, by
number and description: SIC is 8011: Offices of Medical Doctors, NAILS is 621111:
MD or DO Offices
18. The Internal Revenue Service Code of Principal Business Activity by which the proposed
project would be classified, by number and description: 621111 Offices of Physicians
(except mental health specialists)
19. The current use of the Property is medical offices and the current zoning is "O", office
for Eddy parcel and "MU", mixed use for Frances addresses (use) and NO height or area
restrictions per Bldg Dept. (height and area).
(Please contact the Building Department at 235-9554 for this information.)
20. Has your business been granted previous tax abatement(s)? If yes, please provide type
(real and/or personal property) and date of approval.
No, althou~~h an application for abatement has been submitted for propert two be
developed by the Clinic and its related entities with address of 4440 N. Portage, South
Bend, IN 46628
21. Other anticipated public f nancing for the project, including, if any, industrial revenue
bonding to be sought or already authorized, assistance through the United States
Department of Housing and Urban Development funds from the City of South Bend,
Small Business Association Section 503 or 504 financing through the Business
Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana,
Industrial Revolving Fund, Neighborhood Business Development Corporation,
Corporation for Entrepreneurial Development, or other public financial assistance,
including but not limited to public works improvements.
No public financin ig 's expected. Project will be privately financed by owners through
National City Bank and conventional mort~ige financing.
22. (Please See Chart and Response on Following Page)
23. (Please See Chart on Following Page)
-5-
22. In the following chart please indicate companies that were used for purchasing materials used in the construction or
rehabilitation associated with the project. Include the location of the company, description of the materials, and cost of the materials.
Additional information may be requested for verification of this information. (If more space is needed, please photocopy this page)
Name and Address of Company Description of Materials Cost of Materials
Marshall Erdman & Associates - 5117 University Ave,
PO Box 5249, Madison, WI 53705 All -steel, concrete, plumbing, wiring,
HVAC, etc See schedule of
values in Exhibit E
23. In the following chart please list the companies that will be used for the construction or rehabilitation associated with the
project. Indicate the name and address of each company; list the dollar amount of the work to be provided by each company; indicate
whether or not 100% of the workers are employees of that company or independent contractors; indicate whether or not the company
pays workers wages that meet the wage rates for each classification of laborers and mechanics published by the U.S. Department of
Labor; indicate whether or not the company contributes to a health plan for its employees; indicate whether or not the company
contributes to a pension plan for its employees; and indicate whether or not the company maintains an affirmative action plan or other
similar plan to achieve racial diversity. Additional information maybe requested for verification of this information. (If additional
space is needed, please photocopy this page).
6
NOTE: Please see Attached Exhibit E for schedule of values for construction by trade and subcontract. Marshall Erdman
& Associates (MEA) will function as the general contractor. Local firms in Michiana will be contracted as subcontractors
and sub-sub contractors. It is expected that subcontractors will be majority union firms and thus meet local union
collective bargaining requirements for employment, and contribution to pension, health and welfare plans and meet equal
opportunity employment and affirmative action requirements.
Due to the size and scope of the construction project over a two near period, and its current status as to timing of
commencement, most subcontracts have not vet been "let" thus accurate answers to the individual firm by subcontract is
not vet available.
Construction Company
Name and Address
Cost of All Workers
Work Employees or
or independent
contractors
Pay Contribute Contribute
Wage to a to a
Rate Health Pension
(v/nl Plan (v/nl Plan (v/nl
Maintain
Affirmative
Action
Plan (v/nl
Marshall Erdman &
Associates - 5117
University Ave, PO Box
5249, Madison, WI
53705 $32,984,000 Employees Y Y Y Y
24. The following person(s) should be contacted as the petitioner's agent regarding additional
information and public hearing notifications:
NAME: Richard J. Deahl, Barnes & Thornburg LLP
ADDRESS: 600 1St Source Bank Center, 100 North Michigan
CITY, STATE, ZIP CODE: South Bend, IN 46601
TELEPHONE: 574-233-1171
25. Please indicate the name, address, and telephone number of the person who will work
with Employment Training Services (ETS) for employee recruitment, and sign the ETS
form attached to the petition if the real tax abatement is for warehouse or industrial
developments.
NAME: Beth Pemberton and Julie Funk c/o The South Bend Clinic
ADDRESS: 211 N. Eddy St.
CITY, STATE, ZIP CODE: South Bend, IN 46617
TELEPHONE: 574-239-1406 and 574-239-1559, respectively
WHEREFORE, Petitioner requests that the Common Council of the City of South Bend,
Indiana, adopt a declaratory resolution designating the area described herein to be an economic
revitalization area for purposes of tangible real property tax abatement consideration, and after
publication of notice and public hearing, determine qualifications for an economic revitalization
area have been met, and confirm such Resolution. Petitioner herein hereby verifies that the
required $250.00 filing fee to cover processing and administrative costs pursuant to Section 2-
84.7 of the Municipal Code of the City of South Bend has been paid in full.
Name of Property Owner(s):
Attachments:
Exhibit A -Legal Description
Exhibit B -Map or Plat
Exhibit C -Photographs of the Property
Exhibit D -Five year tax history by parcel
Exhibit E -Construction budget -schedule of values
SBDS02 RJD 349618v2
~~~~d eli G~~P~'a Off~C~
JAN ' 8 2007
JOHN VOORDE
CfTY CLERK, S0.6~!~p, IN.
-8-
(Typed or printed name and capacity of signor if
signed by an agent or representative of the owner.)
I NC KINIEY AY[Nfh a+~ I
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H
Exhibit D
Summary of Detailed Property Tax Calculations
Main Campus Only
Actual 2002 Actual 2003 Actual 2004 Actual 2005 Fstlmate 2006
Tax lD# .payable 2003 payable 2004 payable 2005 payable 2006 payable 2007
Real Estate
1000 LaSaile 018-5017-0582 $ 319 $ 339 $ 334 $ 351 $ 351
1D19LaSalle 018-5017-0583 $ 1,164 $ 1,236 $ 1,215 $ 1,279 $ 1,279
1023 LaSalle 018-5017-0584 $ 360 $ 382 $ 376 $ 395 $ 395
1025 LaSalle 0185017-0585 $ 319 $ - $ - $ - $ -
1031 LaSalle 018-5D17-0588 $ 279 $ 296 $ 291 $ 307 $ 307
211 N Eddy 018-5017-D594 $ 96,088 $ 92,301 $ 90,732 $ 95,492 $ 95,492
905 Luther Oi8-5016-055601 $ - $ 1,053 $ 1,035 $ 1,089 $ 1,089
313 Eddy 018-5D17-0587 $ - $ - $ - $ - $ 173
317 Eddy 018-5017-0586 $ 158 $ 168 $ 165 $ 173 $ 173
213 Francis 018-5016-0584 $ 1,142 $ 1,213 $ 1,192 $ 1,255 $ 1,255
217 Francis 018-5016-056101 $ 496 $ 526 $ 518 $ 545 $ 545
215 Francis 018-5016-056102 $ 602 $ 640 $ 629 $ 662 $ 662
915 921 Colfax D18-5016-0563 $ 1,520 $ 1,615 $ 1,587 $ 1,670 $ 1,670
923 Colfax 018-5016-0566 $ 661 $ 702 $ 690 $ 726 $ 726
Total Real Property $ 103,107 $ 100,471 $ 98,763 $ 103,945 $ 104,118
Persona! Property
Main Clinic 018-35067-03304 $ 113,850 $ 89,687 $ 121,736 $ 140,719 $ 117,633
SBMAC Eddy 018-35203-33604 $ 182 $ 149 $ 147 $ 156 $ 156
Total Personal Property $ 114,032 $ 99,836 $ 121,883 $ 140,875 $ 117,790
Total Property Taxes $ 217,138 $ 200,307 $ 220,646 $ 244,820 $ 221,908
- ,,., ~
~~.
JAN " ~ 2C07
J
r E" ~^, ru'~~~~ tt'1
Exhibit E
,~5,-a~~t;~i m~~ ~~ ~
~,~~
saa Eenu ~~at~. r-mm~ e:a t z4tm a t,.es
PeriOnDaempa 6,787,892 S 5a0S
PoudaBend 658.974 6 S.TI
8ase*eentO~nehvction 911.SS1 S 3.t9
~r,b„~, t,ertoo5 s t738•
Edericrgasurs 1,e92.aSe S 1539
Pe~+O 298.835 ; 28s
.
ImadorCaisWcC~n Lrl~rdasd~rrs7e R,77$et4 S Retie
~~ ~~ 7,D90,T41 S , A4t
Cerneyln0 Z30.OD0 S 2,9
Plmbkg 5,234,594 1 11]9
~~ zas1,7e2 s Rant
RraPtotegion 494R4t 5 4.78
Etactdari ~ 1.998,320 i 19.07
FusnlsHngt ~ 25.397 9 ~`
SPeclal Cons
74,772E
D.72
Caa+o:iRoa t51yT7 a 1d5
LianeWCo~Qloru-9ubs 84?,T~ b 9.00
fietnedel Atiowance ~ 2.t~Aro S ~ 20.23
c~n~tuah~uivy,su~ ~ a13,69e a at4
Sak,p 108.379 5 ~ 1.92
cmm~tssraning 192.tss S 1.74
~,, 32e,e4o a 21s
Applfe4Ovctfie~ 280.219 s 2a8
PrntnmRucflon 6acvims 277.587 S 284
Qcnetal Coh~iats•Fie•d 6tpttStta i»a+ 658,t2D a e.z0
prt~jeet aAena4SmaII 798,004 5 7.67
Ae5cburcebdsE~ensas(travelezpense%) t~5.65s 5 f.tD
Total Protect Cost $26,9i3,i82
Deva,oomecrt9ervfees 5229.957 0.$9X
A Fgaetutii 5 Lingineerin0 8sa1 ems
8as1c Sarvbes (Arch} j1,3l8,941 t12X ,
Basic Secvbes (E~p] 656286 2.$0>:
AddiOormlServlw(SIRCbAJnteri~ts) 237{85 0.72?.'
Relmbursabb 6cpsnaes ts2e9 02196
a~s11,a7s 7b59:
S'(,3,28,773 4.OOR
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