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Home My WebLink About17-45 NonCompliance Waiver for Vida Realty Filed in Clerk's Off+ .PEAfCE x x AUG 0 9 2017 1865 I ii rh lll!!"•iH R61WLEN CITY OF SOUTH BEN ^' LI�K, ®DTI BEN;a 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 Vida Realty, LLC 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 Vida Realty, LLC (the "Company"). The South Bend Common Council (the "Common Council") adopted its Confirming Resolution 4350-14 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/VBD with the City of South Bend in 2017, however, the Company inadvertently did not file the Forms CF-1/VBD and 322NBD in 2015 and 2016 with the Auditor's office. The Company received Tax Bills in 2015 and 2016 but was under assumption that since they were granted a tax abatement those bills were sent mistakenly. Then the Company received a Tax Bill in April 2017 providing that the spring installment of 2016 personal property taxes was due May 10, 2017. That time the Company remitted payment of$1.0,964.04 to the St. Joseph County Treasurer but it still owes $19,559.71 of delinquent taxes for the previous years. The Company is requesting that the Common Council waive noncompliance with the filing deadline for the Form 322NBD for 2015 and 2016. The Department of Community Investment endorses and supports this waiver as the Company has met and/or exceeded their abatement milestones.The Company exceeded the project cost stated in the original petition for tax abatement. The initial cost of the project was estimated to be $100,000 over two years and the actual cost was $184,368. EXCELLENCE I ACCOUNTABILITY INNOVATION I INCLUSION I EMPOWERMENT 14005 County-City Building 227W Jefferson Bvld. South Bend,Indiana 46601 p574.235.9371 www.southbendin.gov Year to date, the company has invested $220,675 compared to a projected amount of $250,000 through 2020. The project has met the employment representation stated in the original petition for tax abatement from when the project began operating,until the present date. 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.Vida,Managing Member of Vida Realty,LLC, will be presenting at the meetings. Should you require additional information, please let me know. Sincerely, Direc or Economic Resources&Business Development Department of Community Investment Attachments cc: Dane Vida, Vida Realty, LLC Aladean DeRose Thomas M. Walz EXCELLENCE I ACCOUNTABILITY INNOVATION I INCLUSION I EMPOWERMENT 14005 County-City Building 227W.Jefferson Bvld. South Bend,Indiana 46601 p 574.235.9371 1 www.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 1902 WEST SAMPLE STREET, SOUTH BEND,INDIANA FOR VIDA REALTY, LLC WHEREAS,the Common Council of the City of South Bend, Indiana(the"Common Council") at its meeting held on the 28th day of April, 2014 adopted its Confirming Resolution No. 4350-14 (the "Confirming Resolution") confirming the designation of a certain area within the City of South Bend, Indiana(the"City"), commonly known as 1902 West Sample Street, South Bend, Indiana(the "Real Property")pursuant to Indiana Code 6-1.1-12.1 (the "Act"), as an Economic Revitalization Area for the purposes of granting a two (2) year tax abatement for real property to Vida Realty,LLC, an Indiana Limited Liability Company (the "Company"); and WHEREAS,the Real Property was more particularly described as follows: Beg. 603.53' E of Inter of E Right of Way of Olive Street& N Right of Way of Western Avenue W 1/2 NE 1/4 Sec 10-37-2E Cont Approx 6.622 Act+- and which has Key Number 018-4096-35810. WHEREAS,the Common Council determined that the Company qualified for and the Common Council granted a real property tax abatement for the period of two (2) years as provided in the alternate abatement schedule pursuant to Section 17 of the Act; and WHEREAS,the Company inadvertently failed to file Form 322NBD for 2015 and 2016 and Form CF-INBD for 2015 and 2016; and 1 WHEREAS,the principals of the Company were unclear and unaware of the requisite ongoing procedures required to gain the tax abatement granted by the above referenced Resolution; and WHEREAS,the following facts support approval of this resolution: A. The Petitioner states that the Company was unclear of the necessity to file Form 322NBD and Form CF-INBD, which need to be filed with the Auditor's Office within thirty(30) days of September 14, 2015 and September 14, 2016; B. Petitioner failed to file its requisite forms due to its confusion and misunderstanding about its filing responsibilities; C. Upon learning of its mistake and receipt of a tax bill, the Company filed with the Company auditor a Form 322NBD and Form CF-lNBD in 2017; D. Petitioner has taken steps to avoid this problem in the future; E. The Company exceeded the estimates stated in the original Petition for Tax Abatement, in light of the fact that eight(8)new, permanent, full-time employment positions have been added since the granting of the tax abatement; F. That annual payroll for 2015 was Three Hundred Fifty-five Thousand Nine Hundred Two Dollars and Nine Cents ($355,902.09); G. That annual payroll for 2016 was Three Hundred Forty-four Thousand Three Hundred Thirty-three Dollars and Thirty-five Cents ($344,333.35); H. To date in 2017 payroll is Two Hundred Twenty-five Thousand Four Hundred Sixty- five Dollars and Ninety-nine Cents ($225,465.99), and annualized to Three Hundred Eighty-six Thousand Five Hundred Thirteen dollars and Twelve Cents ($386,513.12); I. Additionally,the Company has been able to retain twelve(12) current full-time positions of employment; J. Petitioner invested One Hundred Eighty-four Thousand Three Hundred and Sixty- eight Dollars ($184,368.00) in the subject real property and improvements in 2014 and 2015, and a total of Two Hundred Twenty Thousand Six Hundred and Seventy- five Dollars ($220,675.00) year to date; K. The project in question is a positive development to this community, especially in light of the location of the improvements and real property in question,being a 2 revitalization area. The Company continues to improve the project and the parcel to additional improvements; L. All other required documentation has been filed by the Company by the required dates; and. WHEREAS, due to the inadvertent lack of activity by the Company, unabated taxes were assessed against the property and outstanding billings are owed; and WHEREAS, the Company has been advised that its current liability for real property taxes is approximately Twenty Thousand Eight Hundred Twenty-seven Dollars ($20,827.00); and 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 to waive tax abatement noncompliance events such as the untimely or erroneous filing of an application form; and WHEREAS,the Company is requesting this Common Council to exercise its authority as the designated body to waive compliance by adopting a resolution pursuant to Section 11.3 of the Act; 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, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION 1. The above recitals are incorporated herein by reference, and the Common Council specifically finds that petitioner has presented supporting testimonial evidence of the those facts identified above and previously as"A"through"L" in support of this resolution. SECTION 11. The facts as stated in the recitals,taken together,lead the Common Council to conclude that compelling reasons exist to waive the filing deadline. SECTION 111. The Common Council hereby reaffirms that the two-year tax abatement previously granted to Vida Realty, LLC in Resolution No. 4350-14 remains in effect, and it further waives the filing deadline of Form 322NBD and Form CF-l/VBD within thirty (30) days of September 14, 2015 and September 14, 2016, for both years (2015 and 2016) and pursuant to Section 4.8 of the Act and Section 11.3 of the Act, adopts this resolution that authorizes acceptance. 3 SECTION IV. 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 Common Council Filed in Clerk's Office PRESENTED AUG 09 2011 4 HOT APPRC`v=`- KAREEMAH FOWLER +�OPT&U � CITY CLERK,SOUTH FEND,IN --- -