HomeMy WebLinkAboutSubstitute 48-17 Tax Abatement Amendment City of South Bend
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Common Council
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-- South Bend,Indiana 46601-1830 Fax (574)235-9173
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Tim Scott http://wwwsouthbendin.gov
President
September 20, 2017 ----—
Oliver Davis Filed in Clerk's Office
Vice-President
South Bend Common Council SEP 2 0 2017
Gavin Ferlic 4th Floor, County-City Building
Chairperson,Committee
of the Whole South Bend, IN 46601 KAREEt, A i FOWLER
CITY CLERK,SO BEND,IN
Tim Scott Re: Sub. Bill 48-17- Proposed Tax Abateme TICIMCM
First District
Dear Council Members:
Regina Williams Preston
Second District I am filing the attached proposed ordinance amendment for section 2,
Article 6, section 2-76.3 of the municipal code with the Office of the City
Randy Kelly Clerk. The proposed amendment adds the requirement that applicants
third District for a base abatement be required to pay all company employees (full-
time, part-time, seasonal and temporary) a minimum wage at least as
Jo M. Broden
Fourth District high as the minimum wage paid to all employees of the City of South
Bend.
David Varner
Fifth District The primary change is to make compliance with the City's minimum
wage a requirement for obtaining or maintaining a tax abatement. The
Oliver Davis minimum wage would be inclusive of tips received by employees who
Sixth District receive tips. The requirement would take effect on January 1, 2018.
Gavin Ferlic
At Large Thank you for your consideration. Please do not hesitate to contact me
John Voorde should you have questions or concerns.
At Large
Karen White S* ly Yours,
At Large
�7�rl'k
Regina Williams-Preston
Councilmember, 2nd District
Substitute Bill NO. 48-17
ORDINANCE NO.
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA,AMENDING A SECTION OF CHAPTER 2,ARTICLE 6 OF THE
SOUTH BEND MUNICIPAL CODE PERTAINING TO TAX ABATEMENTS
STATEMENT OF PURPOSE AND INTENT
The Mayor of South Bend has stated that "Raising the minimum wage of our city
employees can increase morale and productivity, while cutting turnover. It's also good
economics, since city workers are consumers at local businesses. . . Most importantly, it's the
right thing to do for hardworking public servants. " The Mayor noted that this wage applies to
all City employees,part-time, temporary, and seasonal, as well as full-time employees. Since a
tax abatement is a subsidy to employers from the City and is intended to improve the economic
environment of the City of South Bend, it is incumbent upon companies receiving tax abatements
from the City to pay their employees at least as well as the City pays its employees.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, as follows:
Section I. Chapter 2, Article 6, Section 2-76.3 is hereby amended by modifying paragraph(3)
and by adding paragraph(6) and Sections II and III to read as follows:
See. 2-76.3. Base abatement.
A base abatement ("base abatement") is an abatement for three (3) years in the case of
real property other than single-family residential, five (5) years in the case of real property that is
single-family residential, and five (5) years in the case of personal property. The Council may
grant a base abatement to an applicant who fulfills the following requirements:
(3) The applicant has executed a memorandum of agreement ("memorandum of agreement")
prepared by the Community Investment Department. The memorandum of agreement is a legally
binding agreement representing a contractual relationship between the applicant and the Council.
It may become effective upon the Council granting the abatement, which includes provisions
setting forth:
a. The tax abatement recipient's agreement to fulfill the conditions upon which the tax
abatement is based ("conditions of abatement");
b. The time within which the tax abatement recipient must comply with the conditions of
abatement;
c. The tax abatement recipient's obligation to respond to periodic surveys regarding
compliance with the conditions of abatement;
d. The tax abatement recipient's obligation to allow representatives to the Community
Investment Department to have access to the project premises and to perform inspections
and audits as necessary to verify compliance with the conditions of abatement;
e. The tax abatement recipient's obligation to pay each of its employees(full-time,part-time,
seasonal, and temporary), at all times during the term of the tax abatement, a minimum
wage,inclusive of tips received by tipped employees,at least as high as the minimum wage
paid to an employee of the City of South Bend.; and
f. The events which:
1. Shall entitled the Council to terminate the abatement in whole or in part; and
2. Shall cause the tax abatement recipient to be obligated to repay all or a portion o
the property tax savings received.
(6) The applicant must pay each of its employees (full-time,part-time, seasonal and temporary) a
minimum wage, inclusive of tips received by tipped employees., at least as high as the minimum
wage paid to all employees of the City of South Bend.
SECTION II. This Ordinance shall have no effect on the terms of any tax abatement for
which the Council has adopted or will adopt a confirming resolution prior to January 1, 2018.
SECTION III. This Ordinance shall take effect on January 1, 2018, conditioned upon
passage by this Common Council, approval by the Mayor, and any publication required by law.
Member of the Common Council
Attest:
City Clerk
Presented by me to the Mayor of the City of South Bend, Indiana on the day
of , 2 , at o'clock_. m.
Deputy City Clerk
Approved and signed by me on the day of , 2 , at
o'clock m.
Mayor, City of South Bend, Indiana
Filed in Clerk's Office
1 sr READING SEP 2 0 2017
PUBLIC HEARIN<
3 rd READiN� KAREEIi��al-i FOWLER
NOT EADiN CITY CLERK,SOUTH SEND, IN
REFERRED
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