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HomeMy WebLinkAbout10535-17 Amending Chapter 2, Article 6 of the South Bend Municipal Code pertaining to tax abatements ORDINANCE No . 10535-17 Passed by the Common Council of the City of South Bend, Indiana October 9, 20 17 Attest: City Clerk Attest: - President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 10, 20 17 Q City Clerk Approved and signed by me 20 Mayor e Second Substitute Bill NO. 48-17 ORDINANCE NO. 10 53 5- 1 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: Sec. 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; a 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 as defined in the tax abatement's confirming resolution, a minimum wage, inclusive of tips received by tipped employees, defined as follows: — in the first year of the abatement, the tax recipient's lowest paid employee is compensated at least as high as the minimum wage paid to an employee of the City of South Bend as of the time of the tax abatement's confirming resolution, and —in the second and subsequent years of the abatement, the effective minimum wage for the tax abatement recipient increases by by two percent over the previous year; 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. 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. PASSED AND ADOPTED by the Common Council of the City of South Bend, Indiana this q� day of , 20 . Member, moron Council of the City of South Bend ATTE T aree Fo er, Ci ler Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City for his approval on the 10441 day of 661 - 6tn , 2017, at IQ o'clock VGL.m. Lr, W mah F er Having examined the foregoing Ordinance, I do now, as the Mayor of the City of South Bend, approve id�Ordinance and return the same to the Clerk of the City of South Bend this day of V^ D kJ41 , 2017. Pete Buttigieg, r } Filed in Clerk's Office t st READING '81W IV, OCT 0 9 2017 PUBLIC HEARING j0 f 4I I I'l 3rd READING 10/61/1-1 e NOT APPROVED KAREEMAH FOWLER REFERRED 5II411'7 CITY CLERK,SOUTH BEND,IN PASSED I OA I I rJ 004 4"', f, X13 rIt City of South Bend Common Counci �.. 7336"a 441 County-City Building • 227 W.Jefferson Blvd (574)235-9321 South Bend,Indiana 46601-1830 Fax (574) 235-9173 TDD: (574)235-5567 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 KAREEMAH FOWLER CITY CLERK,SOUTH BEND, IN Tim Scott Re: Sub. Bill 48-17- Proposed Tax Abateme 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 Regina Williams-Preston Councilmember, 2nd District