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Home My WebLink About17-47 NonCompliance Waiver for Manufacturing Technology, Inc. 4$OUTH,& Filed in Clerk's Office W d AUG 0 9 2017 PEACE' its 1565 CITY` _ �'Y'?,IN) CITY OF SOUTH BEND COMMUNITY INVESTMENT August 7, 2017 Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Submission of Resolution Approving Waiver of Noncompliance for Real Property Tax Abatement for Manufacturing Technology, Inc. Dear Council Member Ferlic, Attached please find a proposed form of resolution approving a waiver of noncompliance,pursuant to Indiana Code 6-1.1-12.1-11.3,for Manufacturing Technology, Inc. (the "Company"). The South Bend Common Council (the "Common Council") adopted its Confirming Resolution 4491-15 confirming the designation of a certain area in the City of South Bend, Indiana as an Economic Revitalization Area for the purposes of granting a two (2) year tax abatement for vacant real property in conjunction with investment in improvements to existing building construction along with purchase of new machinery&equipment, special tooling/retooling and new computer/IT hardware. The St. Joseph County Assessor's Office distributed a Notice of Assessment on January 1, 2016. The Company filed a Form CF-1/Real Property with the City of South Bend in 2016, however, the Company inadvertently did not file the Form 322NBD with the Auditor's office. The Company subsequently received a Tax Bill in April 2017 providing that the spring installment of 2016 personal property taxes was due May 10, 2017. The Company remitted timely payment of $28,854.36 to the St. Joseph County Treasurer prior to the May 10, 2017 due date for Spring Taxes. The Company is requesting that the Common Council waive noncompliance with the filing deadline for the Form 322NBD. The Department of Community Investment endorses and supports this waiver as the Company has been on track with their abatement milestones. The initial projection associated with building improvements was $929,000 and the actual cost through December 31,2016,was$718,962. The company is planning to invest around$650,000 in the roof over the next five to eight year. That investment is contingent upon getting more business into the building.The project has met the employment representation stated in the EXCELLENCE i ACCOUNTABILITY I INNOVATION ' INCLUSION EMPOWERMENT 14005 County-City Building 227W.Jefferson Bvld. South Bend,Indiana 46601!p 574.235.9371 www.southbendin.gov C� I original petition for tax abatement from when the project began operating,until the present date. In 2015 the company was also granted a personal tax abatement and it has appropriately and fully complied with reporting requirements. We ask that the attached resolution be referred to the Community Investment Committee for an advisory recommendation and then heard at the Common Council meeting to be held on August 14,2017. Mr. Laiman,Vice President and General Manager of Manufacturing Technology, will be presenting at the meetings. Should you require additional information,please let me know. I Sincerely, i�LL — Direct Economic Resources&Business Development Department of Community Investment Attachments cc: Michael Laiman,Manufacturing Technology, Inc. Aladean DeRose II I EXCELLENCE 1 ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 14005 County-City Building 227W Jefferson Bvld. South Bend,Indiana 46601 p574.235.9371 vwaw.southbendin.gov Bill No. RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,WAIVING NONCOMPLIANCE WITH TAX ABATEMENT PROCEDURES FOR REAL PROPERTY COMMONLY KNOWN AS 402 NORTH SHERIDAN STREET, SOUTH BEND,INDIANA FOR MANUFACTURING TECHNOLOGY, INC. WHEREAS, on August 24, 2015, the Common Council of the City of South Bend (the "Common Council") adopted Resolution No. 4491-15 (the "2015 Resolution"), approving a two (2) year real property tax abatement for the purchase and improvement of the vacant building located at 402 North Sheridan Street, South Bend, Indiana 46619 (the "Building") by Manufacturing Technology, Inc. ("MTI" or "Taxpayer"), within an area located in the City of South Bend that had been designated an economic revitalization area in accordance with IND.CODE § 6-1.1-12.1-1, et seQ.; WHEREAS, as part of MTI's abatement application, MTI described for the Common Council that MTI would by the end of the two (2) year abatement period (a) invest $929,000 on capital improvements to the Building, (b) create at least seven (7) new, permanent full time jobs with a total estimated annual payroll of $300,000, and (c) maintain twenty five (25) existing permanent full time jobs representing an annual payroll of$895,000; WHEREAS,MTI purchased and commenced operations in the former vacant Building and has made progress on meeting the objectives in its abatement application; WHEREAS,while MTI submitted its Application for Deduction from Assessed Valuation Real Property Vacant Building Deduction ("Form 322NBD") and related Compliance Statement of Benefits Vacant Building Deduction ("CF-INBD," and collectively with Form 322NBD the "Application Forms") to the City of South Bend Department of Community Investment in 2016, MTI may have inadvertently failed to timely and properly file Application Forms with the City Clerk and the St. Joseph County Auditor; WHEREAS,the Taxpayer timely filed Application Forms to claim benefits of the property tax abatement for the second year of the tax deduction 2017 (Pay 2018 tax year); WHEREAS, the Common Council recognizes that (a) MTI has fulfilled its pledge to purchase the Building and has made progress in meeting its capital improvement and employment goals, both of which enhances the tax base and supports employment in the City of South Bend; (b) MTI has requested a waiver of its inadvertent oversight for filing of the Application Forms in the wrong office to claim benefits of the tax deduction for the first year of the tax deduction,which 1 the Common Council has the power and authority to approve under Indiana law, and (c) MTI would have been entitled to receive the tax deduction for the first year of the deduction had no noncompliance event occurred; WHEREAS, the Indiana General Assembly enacted Ind. Code § 6-1.1-12.1-11.3 as the expression of this State's policy authorizing a local designating body, i.e., the South Bend Common Council, to waive tax abatement noncompliance events such as the untimely or erroneous filing of an application form; and WHEREAS, the noncompliance event has been corrected, and,pursuant to IC 6-1.1-12.1- 11.3(c), a public hearing of the Common Council has been held on the subject of this Resolution. NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, AS FOLLOWS: SECTION I. The Taxpayer has presented testimonial and documentary evidence supporting the Taxpayer's (a) progress towards satisfying its obligations detailed in its original Statement of Benefits and its application for tax abatement related to the purchase and improvement of the Building located at 402 North Sheridan Street, South Bend, Indiana (the "Property"),and(b)inadvertent oversight leading to a belated filing or filing in the incorrect office of the Form 322NBD"Application for Deduction from Assessed Valuation Real Property Vacant Building Deduction" to claim the benefits of a tax deduction for the January 1, 2016 assessment date of the Property. SECTION II. The foregoing facts, taken together, lead the Common Council to conclude that the Taxpayer has substantially fulfilled its projected plans to purchase, improve, and conduct operations at the Property contemplated as part of the 2015 Resolution(the "Deduction") and that its belated/errant filing of an application required to claim the benefits of the Deduction as of for taxes due and payable in 2016 was inadvertent. SECTION III. The Common Council hereby waives all matters of noncompliance that may be waived under State and local law regarding the late filing of applicable abatement applications in order for the Taxpayer to claim and receive the benefit of the abatement on its investment contemplated as part of the 2015 Resolution as of the January 1,2016 assessment date, all as is permitted under IND. CODE § 6-1.1-12.1-11.3 (including specific waiver of any and all nonconformities relating to the requirement, under IND. CODE § 6-1.1-12.1-5 that economic revitalization area deduction applications be timely filed with the county auditor to claim property tax deductions for the 2016 (Pay-2017)tax year. SECTION IV. The Common Council incorporates herein by reference, and hereby ratifies and reaffirms: (a)the 2015 Resolution;(b)the tax abatement application and statements of benefits of the Taxpayer; and (c) the recitals of this Resolution. The Common Council and the Clerk of the City of South Bend are authorized to take all such further acts and execute and deliver all such further documents for the St. Joseph County Auditor or otherwise as may be reasonably necessary to give effect to this Resolution,all without further application to or formal action by the Common Council. 2 SECTION V. This Resolution shall be in full force and effect from and after its passage and approval by the Mayor. Member of the Common Council DMS 9958433x4 FffClerk's ffice JRESEIVTE�.-.:., NOT APPPOVW. KAREEtViAH rOWLER �►BORTida 3 CITY CLERK,SOUTH SEND, IN -