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HomeMy WebLinkAbout05-24-10 Council Agenda & PacketAGENDA SOUTH BEND COMMON COUNCIL MONDAY, MAY 24, 2010 1. INVOCATION 2. PLEDGE TO THE FLAG 3. ROLL CALL 4. REPORT FROM THE SUB - COMMITTEE ON MINUTES 5. SPECIAL BUSINESS 7:00 P.M. 10 -23 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PUBLICLY COMMENDING, HONORING AND REMEMBERING THE RICH LIFE AND ENDURING LEGACY OF THE LATE ROSS K. STEPHENSON 10 -24 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PUBLICLY CONGRATULATING SERGEANT RONALD NOWICKI OF THE SOUTH BEND POLICE DEPARTMENT FOR HIS EXEMPLARY WORK IN SOLVING A LOCAL BANK ROBBERY WHICH RESULTED IN SPECIAL RECOGNITION BY THE FBI FOR HIS ACTIONS 10 -25 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PUBLICLY COMMENDING THE JOHN ADAMS HIGH SCHOOL' S MOCK TRIAL TEAM FOR WINNING THE 2010 INDIANA HIGH SCHOOL MOCK TRIAL COMPETITION AND FOR ACHIEVING THE EAGLE'S 10T', CONSECUTIVE INDIANA CHAMPIONSHIP 6. REPORTS OF CITY OFFICES 7. RESOLVE INTO THE COMMITTEE OF THE WHOLE TIME: RTT,T. VTO 8. BILLS, THIRD READING TIME: BILL NO. 9. RESOLUTIONS R T T.T. NY) 10 -26 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 2629 FOUNDATION DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR VALUE PRODUCTION, INC. 10. BILLS, FIRST READING BILL NO. 25 -10 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 2, ARTICLE 6 OF THE SOUTH BEND MUNICIPAL CODE PERTAINING TO TAX ABATEMENTS 26 -10 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING VARIOUS SECTIONS OF CHAPTER 17, ARTICLE 2, OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST SEWER RATES AND CHARGES INCREMENTALLY THROUGH 2013 11. UNFINISHED BUSINESS A. REPORTS FROM AREA PLAN COMMISSION 1. BILL NO. 18 -10 - REZONING 220 S. TAYLOR ST. 12. NEW BUSINESS 13. PRIVILEGE OF THE FLOOR 14. ADJOURNMENT TIME: NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services are Available upon Request at No Charge. Please give Reasonable Advance Request when Possible. RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 2629 FOUNDATION DRIVE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR VALUE PRODUCTION, INC. WHEREAS, a petition for personal property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 2629 Foundation Drive, South Bend, Indiana, and which is more particularly described as follows: A parcel of land in the Southwest Quarter of Section 28, Township 38 North, Range 2 East, St. Joseph County, Indiana and which has Key Number 25 -1010 - 0400.12 be designated as an Economic Revitalization Area under the provisions of Indiana Code 6 -1.1 -12.1 et s___,e�., and South Bend Municipal Code Sections 2 -76 et seMc ., and; WHEREAS, the Department of Community and Economic Development has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6 -1.1- 12.1, et seMc ., and South Bend Municipal Code Sections 2 -76, et seMc ., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community and Economic Development Committee of the Common Council. has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area.. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds pursuant to Indiana Cade 6- 1.1- 12.1 -4.5 et seq., that: a. The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type; b. That the estimate of the number of individuals that will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed installation of new manufacturing equipment; C. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION 11. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6- 1.1- 12.1 -4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community and Economic Development, and the Community and Economic Development Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the, property owner is qualified for and is granted property tax deduction for a period of (5) five years. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5 -3 -1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. 2 SECTTQN- —VIT. This Resolution shall be in full force and effect f the Common Council and approval by the Mayor, from and after its adoption by k40T APTROVID A D OPT FO Member of the Common Council —y- 6-DISTY coura acgDn Oft due, Filed In Clork'S Offics 2010 icqu, VOORDE CTTY CV!qK, �0. ES", 14- 1200 CouNTY -CITY BUILDING 227 W. JEFFERSON BOUI,EvARD Sours BEND, INDIANA 46601 -1830 May 3, 2010 PHONE 5741 23 5 -9371 FAx 5741 235 -9021 TDD 574/ 235 -5567 CITY of SOUTH BEND STEPHEN J. LuEcKE, MAYOCZ COMMUNITY& EcONomic DEVELOPMENT JEFFRF -Y V. GiBNFY EXECUTIVE DIRECTOR Council Member Timothy Rouse, Chairperson Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Personal Property Tax Abatement Petition for: Value Production, Inc. Dear Council Member Rouse: Please rind attached the Department of Community & Economic Development's report on a personal property tax abatement petition for the above - referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the acquisition and installation of new equipment as part of the company's planned increase in productive capacity in its facility located at 2629 Foundation Drive. The report contains the Department's findings relative to the above petition. Value Production will be purchasing and installing new equipment. The total project cost for the equipment is estimated at $1,500,000. The project meets the qualifications for a (5) five -year personal property tax abatement and a representative from Value Production will be available to meet with the Committee on Monday, May 24, 2010. 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 -5835. Sincerely, Bob Mathia Assistant Director, Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks COMMUNITY DEVELOPMENT P.GONOMIC: DE"LOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INK5 MANAGEMENT 5741235 -9660 5741235 -9371 ELIZABETH LEONARD FAX: 574/235 -9697 5791235 -9371 1200 CouNTY -CSTY BUILDIN6 227 W. JEFFERSON Boui,FvAm Soum BEND, INDLwNA 4660 1 -1 830 PHONE 5741235 -9371 FAx 5741235 -9021 TDD 574! 235 -5567 CITY OF SOUTH BENZ? S'T'EPHEN J. LUEcKF, MAYOR COMMUNITY& EcONOMIC EVELOPMENT JEFFREY V. GIBNEY EXEcMvE DIRECTOR TAX ABA TEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: VALUE PRODUCTION, INC. DATE: May 3, 2010 On May 3, 2010, a petition for personal property tax abatement consideration for property located at 2629 Foundation Drive was filed with the City Clerk by Value Production, Inc, Pursuant to Chapter 2, Article 6, Section 2 -84.2 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 Value Production is a modern production machining facility. They provide one -stop shopping for design, prototypes, and production, and it is an ISO 9001:2000 certified company. Value Production was established in October of 2000. The company manufactures products for use in the aerospace, automotive, medical, and commercial markets. The company will purchase a new, Swiss lathe, 2 Mazak horizontal machining centers and a pallet control center for their custom manufacturing needs. The project will invest $1,500,000 in this new equipment. Total taxes to be abated during the (5) five -year abatement period are estimated at $41,882. Total taxes to be paid during the (5) five -year abatement period are estimated at $124,606. Commumn NvELOPM.ENT ECONOM1c DEVELOPMENT FINANCIAL & PROCR M PAMELA C. MEYER DONAW F., INKS MANACFMF..NT 5741235 -9660 5741235 -9371 ELJZAwm LEONARD FAX: 5741235 -9697 574/235 -9371 South Bend Common Council RE: Value Production, Inc. May 3, 2010 Page 2 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create four (4) new, permanent, full -time jobs in the first year of production representing a new annual payroll of $120,000. The project will also maintain twenty -three (23) existing, permanent, full -time jobs and one (1) existing part-time job representing an annual payroll of $1,000,000. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the petitioner has been granted or been associated with the following previous tax abatements: Term /Tyne Resolution No. Date 5 -year personal property (Increase) 3770 -07 August 13, 2007 5 -year personal property 3669 -06 November 27, 2006 5 -year personal property 3305 -04 February 23, 2004 5 -year personal property 2955 -00 December 18, 2000 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax deduction 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 meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement. o a �"' O O r o N o o N N 0(o(D A LZ m �mti�v `['°' LO d 7 0 0 0 C14 N V N 0000 M dd Z �--. 'CY Cl) 1-O 0 0 00 C6 U5 C6 C5 C�5 L6 V5 dT 0 i' 0 } U u O� N CO r (D 0 U) (D r If (D C o o d0 v O�(o o o N N 0(o(D r LZ m �mti�v `['°' LO d 7 0 0 0 O N W� d' N N Q dd Z �--. 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L) Z m (.� ❑ (} } `) N U D N U LO m -i Q U J 0 V) 0 h O M CD �Z CD0w(0 M 'E c� (— t77 L M N M LC5 Nr (n (n 0 t a CN C N �X W NV1 = X M "0V h u7 0 > Z'2 O U7 m Cf d: (D x� �M . - -rcoMrn C' N M N N i x � c M � U c m 00000 +» C W~ N N N N N 0(V 2 m C 'p .2 C N UC D w m rNM��i Ql N N dN N N N> T m T T T [n aaaan. ¢ � v c � o � v c � U o � aw c C a 0-0 @ C N O 'U . a [tl U N a N _ � �3 V) 0 h O M CD �Z CD0w(0 M 'E c� (— t77 L M N M LC5 Nr (n (n 0 t a CN C N �X W NV1 = X M "0V h u7 0 > Z'2 O U7 m Cf d: (D x� �M . - -rcoMrn C' N M N N i x � c M � U c m 00000 +» C W~ N N N N N 0(V 2 m C 'p .2 C N UC D w m rNM��i Ql N N dN N N N> T m T T T [n aaaan. ¢ � v c � o � v c � U o � aw c C a 0-0 @ C N O 'U . a [tl U N a N _ � �3 f 4PF., LTA tp' a STATEMENT OF BE IEITS y. � , PERSONAL PROPERTY ' V i T J' " Slate Form 51764 (R / 1 -06) lv�ot.� Prescribed by the Department of Local Government Finance INSTRUCTIONS: tp�gg;F ^.f �tY iwCC �"'t 'ice j LAO FORM SE -1!PP 1 } PRIVACY NOTICE I The cililst and any specific individual's salary nformalion is confidential; the Wan of the filing is public record per IC 1,1- 12.1 -5.1 icl and (d). 1. This statement must be submitted to the body designating the Economic Revita 'zaton Arme n fc hearing if the designating body requires information from the applicant in making its decision about whether to designate an ceraerrriC Tevitaliration Area. Otherwise this statement must be submitted to the desiynating body BEFORE a person instalis the new manufacturing equipment and /or research and development equipment and/or logistical distribution equipment and/or information technology equipment for which the person wishes to claim a deduction. 'Projects 'planned or committed to after July 1, 1987, and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (1G 6- 1.1 -12. f) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manufacturing equipment and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment, BEFORE a deduction may be approved 3. To obtain a deduction, a person must file a certified deduction schedule with the person's personal property return on a certified deduction schedule (Form 903 -ERA) with the township assessor of the township where the property is situated. The 103 -ERA must be fled between March 1 and May 15 of the assessment year in which new manufacturing equipment and/or research and development equipment andlor logistical distribution equipment and /or information technology equipment is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 and the extended due date of that year. 4. Properly owners whose Statement of Benefits was approved after June 30, 1991, must submit Form CF -1 / PP annually to show compliance with the Statement of Benefits. (ICU-1.1-12,1-5.6) 5. The schedules esfablished under IC 6 -1.1- 12.1- 4.5(d) and fe) apply to equipment installed after March 1, 2001. For equipment installed prior to March 2, 2001. the schedules and statutes in effect at the time shall continue to apply. (1C 6- 1.1- 12.1 -4.5(o and (g)) Name of taxpayer Address of taxpayer fnumber and street, city, state. and ZIP code) 2 Name of contac�jperson Telephone number lv�ot.� s7�r 24� �`i13 _ 0 o cl t e; • e Narne at designating b dy / L1,, Resolution number (s) N rA h ant it i G t L— Location of property S>n M � t�5 d County <11- :OS £ DLGF taxing district number Description of manufacturing equipment and/or research and development equipment ESTIMATED and/or logistical distribution equipment and /or information technology equipment, (use additional sheets if necessary) START GATE COMPLETION LATE Manufacturing Equipment I �O SWl�jS L i t / J4 G`� a i �vt -S R & D Equipment G1 Logist Dist Equipment IT Equipment T, l a:r -, %y� :- - ®• n r V. ; *w l§y ar Current Current number Salaries Number retained Sa €arjes Number additional Salaries , GaU • � J' 1 , fXs�t, G d a Lr t "e �� s F s a �o o e n - a• e a s XT r t UY ' a NOTE: Pursuant to IC 8- 1.1- 12,1 -5,1 (d) (2) the MANUFACTURING R S p EQUIPMENT LOGIST DIST IT EQUIPMENT EQUIPMENT EQUIPMENT _ COST of the property is confidential. COST ASSESSED COST ASSESSED CO;TJ ASSESSED COST ASSESSED VALUE VALUE VALUE VALUE Current values Ir7LIS 1 M roi Plus estimated values of proposed project Ir Soo , Soo Less values of any property being replaced Net estimated values upon completion of project : FRET 4R .. ~ xr s ".s'r:F�anvi..,fr�.' .Tf ., . ^ Estimated solid waste converted (pounds) Estimated hazardous waste converted (pounds) Other benefits' .,, _ .....,. _ �.� ,„xs.. _ . s ,..s: - ,...., a., b:. dv,..wau,•+.,;.a.�....a.L,it;�� ...,- .�.--- ...�,Aw.s,�.'K ,. r�u ... �-°, 1�.. .. ,S•�:�,` � __...<,..��. I hereby certify that the representations in this statement are true. Signature of authorized representative vw l 5 -LS ti Title ���5 date signed (month, day, year} trD��.3`� 31CS O We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adopted in the resuMion previously approved by this body. Said resolution, passed under IC 6 -1.1- 12.1 -2.5, provides for the following limitations as authorized under IC 6- 1.1- 12.1 -2. A . The designated area has been #united to a period of time not to exceed #5 B . The type of deduction that is allowed in the designated area is limited to: 1. Installation of new manufacturing equipment; 2. installation of new research and development equipment; 3. Installation of new logistical distribution equipment. 4, installation of new information technology equipment; calendar years " {see below). The date this designation expires ©Yes ❑N o ❑Yes FjN o ❑Yes ❑N o ❑Yes ®N o C. The amount of deduction applicable to new manufacturing equipment is limited to $ cost with an assessed value of D, The amount of deduction appl {cable to new research and development equipment is limited to cost with an assessed value of $ E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of G. Other limitations or conditions (specify) H. The deduction for new manufacturing equipment and /or new research and development equipment andlor new logistical distribution equipment and/or new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for: ❑ 1 year 06 years ** For ERA's established prior to July 1, 2000, only a ❑2 years ❑7 years 5 or 10 year schedule may be deducted. El years 0 years 04 years ❑ 9 years ❑ 5 years `* ❑ 10 years " Afso we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: (signature and vie of authorized member) by: Telephone number Designated body Date signed (month. day, year) If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under 1C 6- 1.1- 12.1 -4.5 CITY OF SOUTH BEND PETITION FOR TANGIBLE PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION The undersigned owner(s) of new manufacturing equipment, personal property, located within the City of South Bend, hereby petitions the Common Council of the City of South Bend for personal property (new manufacturing equipment) tax abatement consideration and pursuant to I.C., 6- I.1-I2.I, et sect., and South Bend Municipal Code Section 2-84.2, et s_ sec . for this petition states the following: I. Describe the proposed project, including information about the new manufacturing equipment personal property (Aequipment @) to be installed, the amount of land to be used, if any, the proposed use of the equipment, and a general statement R�' to the value of the project to your business. 't lG C-� O'� t+- QL'"uti e 2. The project will create Li- new, permanent gobs within the first year, representing a new annual payroll of S 12u, G co and will maintain 2-3 existing permanent full -time and 1 existing part -time jobs representing an annual payroll of $ kog� � . rm �. The projected annual salaries for each new osition created are estimated to be as follows: 3. Estimate the total cost of the .Equipment: I I So-D , 0 C 4. (a) The Equipment 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 (Revised 8/2/02) 5. Cll (b)The following other persons lease, intend to lease, or have an option to bay this Equipment (include corporate information as required in (4)(a) above, if applicable): NAME ADDRESS INTEREST Give a brief description of the overall nature operations occurring at the location for vyhich tax of the business and batement is requested: of the The commonly known address of the property where the Equipment is to be located is: Z 6 'FCA,,143!j7T[. ---I 1A W 7. The Key Dumber of'said property is: Z S 16 l r 0 1,0cN 1 L 8. Attach the legal description of the property where the equipment is to be located, marked AExhibit A,@ and is hereby incorporated herein. 9. Attach a map and /or plat describing the property where the equipment is to be located, marked AExhibit B,@ and is hereby incorporated herein. 10. ,attach photographs of the property, taken within 30 days of filing of this petition, marred AExhibit C,@ and hereby Incorporated herein. F 1. The current assessed valuation of the tangible personal property to be replaced by the new manufacturing equipment is $ --E!!Yr (t'his information may be obtained from the St. Joseph County Assessors office 235 -9523) 12. The current use of the real property where the Equipment is to be installed is and the current zoning is (use) and (height and area). (This information may be obtained from the Building Department 235 -9553) (Revised 8/2/02) 2 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 'SAXES PERSONAL PROPERTY TAXES (This information may be obtained from the St. Joseph County Treasurers office 235 -9531) 14. Describe the commitment made within the past five years by your farm to hiring minority individuals, including number of minorities employed during each of the past rave years, specifying whether full time or part -time and whether permanent or temporary employees. The Petitioner shall also list the current number of total employees (full and part -- tune) and the current number of minority individuals (full and part- tim(1 - e). { W-Q 1_"� Ik'AT t- v\_ -ia1 N /AY CllN'I'A Wes.• v�l 15. Describe on -site child care or day care facilities, services or benefits currently offered or proposed to he offered by the Petitioner for children of employees. 16. What is your best estimate of the market value of the new Equipment after installation? 15G, () 01) -- 17. What is your best estimate of the amount of taxes to be abated during each of the five years after installation? $ 18. What is the commitment your firm will make to minority employment during the five years of tax abatement? r, (Revised 8/2102) 3 19. The Equipment has not been installed as of the date of fling of this petition. (The signature at the end of this Petition is verification of this statement) 20. The standard Industrial Classification Manual major group within which the proposed project would be classified, by number and description: 32,-2--700 21. The Internal .Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description: 22. The real property where the Equipment will be installed is located in the following Allocation Area, if any, declared and confirmed by the South Bend Redevelopment Commission: Y It 430A t P CowcM..t C_ 23. Other anticipated public financing 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 fend, Small Business Association Sections 503 and 504 financing through the Business Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana; or other public financial assistance, including but not limited to public works improvements. 24. Describe how and why the manufacturing equipment to be replaced or the facility in which Equipment will be added is currently technologically, economically or energy obsolete and how and why that obsolescence may lead to a decline in employment and tax revenues: 25. The new manufacturing equipment will be used in the direct production, manufacture, fabrication, assembly, extraction, mining, processing, refining, or finishing of other tangible personal property and that the equipment was never before used by its owner for any purpose in Indiana. The signature at the end of this Petition is verification of this statement. (Revised 8/2102) 4 26. The following person(s) should be contacted as Petitioners agent regarding additional information and public hearing notifications: Name: 4 Q t � . S(CdLk- r— sa -A Address: A517o o City, State, Zip Code: CsKn -r t Telephone: 5 7 - 7 4 9 t 71, r 3f 5 r S:5-9 c) 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 personal 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. (Revised 8/2/02) Name of Property Owner(s): Ntiv 103 �\ �4 U*—LaA A Ss L Df"T (Typed or printed n me and capacity of signor if signed by an agent or representative of the owner) GJ MAY 2010 EXHIBIT A LEGAL DESCRIPTION Description: A parcel of land in the Southwest Quarter of Section 28, Township 38 North, Range 2 East, St. Joseph County, Indiana. Tax Key Number: 25 -1010- 0400.12 Address: 2629 Foundation Drive, South Bend, Indiana 46628 Vi AY - 3 2010 Map of VaWe Tod & EnglneeHng Mcorporated Y:j -�4,,) (574) 246-191 3 ..1 P �cy zrk .7 C- flegionalAfrpGrt LJL( 4�� Sl 12il LX Uli:r R--` t F7 K itu St kr t a KLIJ;.:rSt f: t I.. rl !I -.ii 1 11,1 if!. Tk� i• j: pia ,1i1,31- P G rT- �3 2629 Froundation Drive 25-1010-040012 erg 13= aE&-No am= C3 LL 2010 Bcfand Dr[ve L--j � ova 2629 Foundation Drive .25-1010-040012 FM �5 --- NO Drive if South Bend Regional Airport F1 F---� U L---j > p X N� G V South Bend Regional Airport F1 F---� U L---j ,� ,�, ,. � �: �� 6'� t�'- "l'' : \ ° �: \ � .�� y � \ / � � \ \® � � \ \ - » 2`� \ \ � « : � / ��2 � \ \ � \ƒ � � 3, �� \: � � . �. - � � : : \\ \ 5°urJf \e ACE '/ ,4 CITE' OF SOUTH END STEPHEN J. LUECKE, MAYOR OFFICE OF THE MAYOR May 19, 2010 South .Bend Common Council 4a` Floor, County City Building South Bend, IN 46601 Dear Councilmembers: I am submitting a proposed revision to the City's Tax Abatement Ordinance. As you know, there has been much discussion about the proper use of tax phase -ins in our city. As we work to attract new investment and jobs to our community, we want to reward companies that stand out as good corporate citizens. This amendment builds on the point system in our existing ordinance. It provides incentives for good paying jobs, for certain employee benefits, for super -sized developments or investment in underdeveloped areas. It supports projects that grow out of research at our colleges and universities or that are ecologically sustainable. It requires applicants and their contractors to have Affirmative Action plans. This revision to our current ordinance reflects important community values and is a public statement of the kind of community we want to be. I will make the formal presentation to the Council along with a coalition of community members. Councilmembers Tom LaFountain, Oliver Davis, Karen White, Al Kirsits, Henry Davis and Ann Puzzello join me in proposing these changes. I look forward to working with you to update our Tax Abatement Ordinance. Thank you for your attention to this matter. Sincerely, L Stephen J. Luecke Mayor, City of South Bend COUNTY-CITY BUILDING • SOUTH REVD, INDIANA 46601 Filed In MAY 1 9 210 C!"re PHONE 2191235 -9261 • FAX 2191235 -9892 • TDD 2191235 -5567 ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 2, ARTICLE 6 OF THE SOUTH BEND MUNICIPAL CODE PERTAINING TO TAX ABATEMENTS STATEMENT OF PURPOSE AND INTENT On August 15, 2003 this Council effectuated Ordinance 1#9394 -03 to improve the tax abatement procedure for the City of South Bend, and to articulate its purpose and philosophy. It is now time again to assure that tax abatement promotes mutual benefit to both the City and the abatement recipient. Through this ordinance, tax abatement recipients will provide South Bend with jobs that pay wages and benefits adequate for workers to be self sufficient. Recipients will be encouraged to construct energy efficient buildings and include persons recruited from historically underprivileged groups. This ordinance is intended to achieve the objective of granting tax abatements which assure South Bend of an economically and socially beneficial return, in the best interest of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: Section I. Chapter 2, Article 6, Sections 2 -76.1, 2 -76.3, 2.76.4, 2 -77.1, 2.84.2, 2 -84.7, 2.84.9, 2.84.10, 2- 84.12, 2 -84.13 and 2 -84.14 are hereby amended to read as follows: Sec. 2 -76.1. Definitions, interpretation and area maps. (a) For purposes of this article, unless the context otherwise requires, a term that begins with an upper case letter has the meaning assigned in the sentence in which it appears within quotation marks; and the following words and phrases have the meanings set forth below. (1) Airport Economic Development Area and AEDA mean the area located within the City's corporate boundaries designated by the South Bend Redevelopment Commission and the Common Council, as amended from time to time, and filed with the City Clerk's Office with notice to the President of the South Bend Common Council and the Chair of the South Bend Common Council's Community and Economic Development Committee. (2) Available.for use means publicly advertised at rates not to exceed Section 8 Rental Guidelines for the unit size. (3) Central Business District and CBD mean the area located within the City's corporate boundaries designated by the South Bend Redevelopment Commission and the Common Council, as amended from time to time, and filed with the City 1 Clerk's Office with notice to the President of the South Bend Common Council and the Chair of the South Bend Common Council's Community and Economic Development Committee. (4) City means the City of South Bend, Indiana. (5) City Clerk means the City Clerk of the City of South Bend, Indiana, (6) Council means the Common Council of the City of South Bend, Indiana. (7) Designating body means the Common Council of the City of South Bend, Indiana. (S) Community and Economic Development Department means the Community and Economic Development Department of the City of South Bend, Indiana. (9) County Assessor means the Assessor of St. Joseph County, Indiana. (10) County Auditor means the Auditor of St. Joseph County, Indiana (11) East Bank Development Area and City 's corporate boundaries designatf Commission and the Common Council, EBDA mean the area located within the ;d by the South Bend Redevelopment as amended from time to time, and filed with the City Clerk's Office with notice to the President of the South Bend Common Council and the Chair of the South Bend Common Council's Community and Economic Development Committee. 2 MINOR I Fou... W-.. 2 12 Economically Distressed Area means those Census Tracts in the City that the Council determines have the highest levels of poveLty and unemployment, and the lowest levels of median income. According to the 2000 Census, these are currently tracts 20, 21, 23, 19, 6, 29, 10, 27, 17, 1, 30, 22, 24, 5, and 4. (13) Economic Development Target Area and EDTA mean the area located within the City's corporate boundaries designated by the Economic Development Commission as amended from time to time, and filed with the City Clerk's Office with notice to the President of the South Bend Common Council and the Chair of the South Bend Common Council's Community And Economic Development Committee. A maximum of fifteen (15) percent of the total geographic territory of the City may be designated as Economic Development Target Areas. (14) Economic Revitalization Area and ERA have the meaning set forth in 1C 6- 1.1- 12.1 -1 et seq. (15) Hard - dollar costs means expenses directly related to the proposed new construction or rehabilitation excluding costs of land, financing, architect, engineering, and attorney fees. (16) Industrial development means and includes the economic activities described in major groups 31 through 33 of the North American Industry Classification System -- United States, 2002 manual published by the United States Office of Management and Budget's Economic Classification Policy Committee, which manual is hereby incorporated by reference, with copies being maintained in the Office of the City Clerk. (17) Institutional development means the development of day care or educational facilities. (18) Local company means a legal entity that the Council deems to have an existing substantial place of business located in St. Joseph County. (19) Low and moderate income individuals or families means those persons who qualify under the Department of Housing and Urban Development, Section 8 income requirements. (20) Minority means: a. Black (i.e., all persons having origins in any of the Black African racial groups not of Hispanic origin); b. Hispanic (i.e., all persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin, regardless of race); 3 c. Asian and Pacific Islander (i.e., all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); d. American Indian or Alaskan Native (i.e., all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification); (21) Mixed use means any mix of two (2) or more of the following uses only: office, retail, multi- family housing, or hotel uses. (22) New Information Technology Equipment has the meaning set forth in IC 6- 1.1- 12,1-1 et seq: (23) New Logistical Distribution Equipment has the meaning set forth in IC 6- 1.1- 12.1 -1 et seq. (24) New Manufacturing Equipment has the meaning set forth in IC 6- 1.1 -12.1- ( et seq. (25) New Personal Property includes New Manufacturing Equipment, New Research and Development Equipment, New Logistical Distribution Equipment and New Information and Technology Equipment, all having the meaning set forth in IC 6- 1.1- 12.1 -1 et seq. (26) New Research and Development Equipment has the meaning set forth in IC 6- 1.1- 12.1 -1 et seq. (27) Property has the meaning set forth in IC 6- 1.1- 12.1 -1 et seq. (28) Redevelopment has the meaning set forth in IC 6- 1.1- 12.1 -1 et seq. (29) Redevelopment Blighted Area and RBA mean real Property meeting the standards set forth in IC 6- 1.142.1 et seq., excluding the South Side Development Area. (30) Rehabilitation has the meaning set forth in IC 6- 1.1- 12.1 -1 et seq. (31) Related Party means any person who is related within the meaning of Section 267 of the Internal Revenue Code (i.e., United States Code, Title 26, Subtitle A, Chapter 1, Subchapter B, Park IX, Section 267). (32) Residentially Distressed Area and RDA mean an area that meets any of the following findings as declared by the Council: 11 a. The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings or multi- family dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or b. Any dwellings in the area are not permanently occupied and are: 1. The subject of an order issued under IC 36 -7 -9; or 2. Evidencing significant building deficiencies; or c. Parcels of property in the area: 1. Have been sold and not redeemed under IC 6- 1.1 -24 and IC 6- 1.1 -25; or 2. Are owned by a unit of local government; or 3. A significant number of dwellings within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or 4. A significant number of dwelling units within the area are: (i) The subject of an order issued under IC 36 -7 -9; or (ii) Evidencing significant building deficiencies; or 5. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the area is owned by Indiana or the United States; or 6. The area (plus any areas previously designated under this subsection) will not exceed ten (10) percent of the total area within the Council's jurisdiction. (33) Retail means and includes the economic activities described in major groups 44 through 45 of the North American Industry Classification System- - United States, 2002 manual published by the United States Office of Management and Budget's Economic Classification Policy Committee, which manual is hereby incorporated by reference, with copies being maintained in the Office of the City Clerk. (34) South Side Development Area and SSDA mean the area located within the City's corporate boundaries designated by the South Bend Redevelopment Commission and the Common Council, as amended from time to time, and filed with the City Clerk's Office with notice to the President of the South Bend Common Council and the Chair of the South Bend Common Council's Community And Economic Development Committee. (35) Tax Abatement Impact Areas and TAIA mean the area located within the City's corporate boundaries designated by the South Bend Common Council, as amended from time to time, and on file with the City Clerk's Office. 5 (36) Tax Increment Allocation Areas and TIAA have the meaning set forth in IC 36- 7- 14- 39(a). (37) Urban Enterprise Zone and UEZ mean the area located within the City's corporate boundaries designated by the Urban Enterprise Association and South Bend Common Council, as amended from time to time, and on file with the City Clerk's Office. (38) Warehouse Development means and includes the economic activities described in major groups 423, 424, 425, 421, 422, and 493 of the North American Industry Classification System -- United States, 2002 manual published by the United States Office of Management and Budget's Economic Classification Policy Committee, which manual is hereby incorporated by reference with copies being maintained in the Office of the City Clerk. (39) Workforce Development Services and WDSA mean Workforce Development Services of St. Joseph County or its successor agency. (b) Any term not otherwise defined in this article has the meaning ascribed to it In IC 6- 1.1- 12.1 -1 et seq. (c) All defined terms are to be interpreted that the singular includes the plural and vice versa as indicated by the context. (d) The terms "including ", "such as ", and similar terms, when used as part of a phrase containing one or more specific items, are to be interpreted as being used by way of example and not of limitation. (e) All references to provisions of the Indiana Code, the Municipal Code of South Bend, and the United States Code are to be interpreted as meaning these provisions as they exist on the effective date of the ordinance from which this article derives and as they may be amended in the future. (f) Accurate and current maps of all areas defined in this section with legal descriptions are available in the Office of the City Clerk and are printed at the end of this Article. Larger versions of said maps are available for public inspection in the Office of the City Clerk and in the Community and Economic Development Department during regular business hours. Said maps may also be accessed on the City's website at http: / /www.southbendin.gov. 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 Con single - family residential, and five (5) years in the case of personal property. The Council may grant a bast, abatement to an applicant who fulfills the following requirements: (1) The applicant's proposed project meets the requirements set forth in sections 2 -77 through 2 -83.3 for real property or section 2 -84.2 for personal property. (2) The Council deems the applicant's proposed project likely to generate within a ten -year period financial returns (i.e., revenue from sources such as new real or personal property taxes, additional or retained county option income taxes, payments- in- I ieu of taxes, private contributions, and public user fees) and other economic and social benefits to the community sufficient to justify the costs that would be incurred by the City for municipal infrastructure improvements (including water, sewer and drainage facilities; wastewater treatment facilities; road, street and alley improvements; street lighting; and traffic control) and additional municipal services needed to enable or directly benefit the project. (3) The applicant has executed a memorandum of agreement ( "memorandum of agreement ") prepared by the Community and Economic Development 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 of the Community and Economic Development 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 events which: 1. Shall entitle the Council to terminate the tax abatement in whole or in part; and 2. Shall cause the tax abatement recipient to be obligated to repay all or a portion of the property tax savings received. 7 (4) Neither the applicant nor any related party of the applicant is delinquent or in default with respect to any property tax payment in St. Joseph County, Indiana. (5) Neither the applicant nor any related party of the applicant has a record of violations of local, state, or federal laws or regulations over a period of time that, in the opinion of the Council, tends to show a consistent pattern. 6 The applicant must-ppy all company employees at least a Poverty Wage. The Poverty Wage is defined as the wa e rate that provides a full -time worker an income at the government-defined poverty level. It is calculated as follows: Ste 1: Determine the Poverty Annual Income Level for a household of size three as listed in the annual Federal Poverty Guidelines. Data for these income levels are published at http://asj2e.hhs.gov/poverty/index.shtml. Ste 2: Divide the Poverty Annual Income Level by 2,080 hours the number of hours for full -time work in a year, to get the Poverty Wage. The Poverty Wage until March L2011 is $8.80 per hour. The Poverty Wage shall be recalculated annually on March 1st usin the calculation described above. 7 The applicant maintains a written Affirmative Action Plan. The Plan must indicate the positive steps being taken to encourage the hiring, promotion, and retention of qualified members of historically disadvantaged groups, such as minorities, women, and the disabled. 8 The construction contractors for the applicant maintain a written Affirmative Action Plan. The Plan must conform to those required of federal contractors as specified in Executive Order 11246 and the Federal Code of Regulations at http://www.dol..gov/dol/allcfr/ESA/Title 41/Part 60- 4 /41CFR60- 4.3.htm. 9 All construction personnel must be employees of a licensed bonded or registered contractor. Sec. 2 -76.4. Add -on abatement. An Add -on Abatement ( "Add -on Abatement ") is available only for real property other than single-family residential construction and may be from one (1) to seven (7) years of abatement in addition to the Base Abatement. Hence, an applicant for real property tax abatement who is granted both a Base Abatement and an Add -on Abatement may receive in total from four (4) to ten (10) years of abatement. The Council may, in its discretion and in light of its evaluation of the public benefits produced by the applicant's proposed project, grant an Add -on Abatement to any applicant for real property tax abatement who qualifies for a Base Abatement under the provisions of section 2 -76.3 and whose proposed project is not single - family residential construction. The Community 0 and Economic Development Department shall provide a summary of each applicant's public benefit point calculations which have been awarded as part of their written report which is further addressed in section 2 -84.9 of this article. As a guide to its deliberations regarding an Add -on Abatement, the Council may consider, among other things: (i) the number of Public Benefit Points ( "Public Benefit Points ") awarded for the applicant'& including in the Memorandum of Agreement commitments to execute one (1) or more of the Public Benefit Actions ( "Public Benefit Actions ") described in subsection (1) below; and (ii) the total number of Public Benefit Points awarded in relation to the threshold numbers of Public Benefit Points required to earn consideration for additional years of abatement set forth in subsection (2) below. (1) Public benefit actions and public benefit points. The public benefit actions for which public benefit points may be awarded are as set forth below. The number of public benefit points that may be awarded is set forth in square brackets following the description of each public benefit action. a. Project related actions. The applicant will: 1. Redevelop a site that has special needs by one of the following actions tfer-ty- nine (49) twenty -five (25) public benefit points]: (i) Convert an eligible building to residential. Convert to residential use a commercial building that has been designated an eligible building ( "eligible building ") by the Community and Economic Development Department, The Council intends generally that an eligible building shall be a building identified as an important element in achieving the goals and objectives of a formally adopted plan (such as a neighborhood revitalization plan) or a building of such magnitude (as determined by its context) that it is considered critical to the success of efforts to enhance, improve, revitalize or preserve the surrounding area. (ii) Rehabilitate an historic building. Rehabilitate and reuse a building that is on the National Register of Historic Places, a locally designated historic landmark, located in a National Register or local landmark district, eligible for nomination as a National Register or local landmark, or rated as Outstanding (0113) or Significant (S /12 or S /11) in the most recent Historic Preservation Commission county -wide survey. (iii) Rehabilitate a problem property. Rehabilitate and reuse a property that that has been designated a problem property by the Community and Economic Development Department ( "problem property "). The Council intends generally that a problem property shall be a building, facility, or complex that has been cited by the City's Neighborhood Code Enforcement agency, or a difficult -to -adapt building or facility that was constructed and used for a single, unique purpose (such as a school building), or a building of such magnitude (as determined by its context) that it is considered critical to the success of efforts to enhance, improve, revitalize or preserve the surrounding area. 9 (iv) Clean up a Brownfield. Pay the cost of cleaning up a brownfield ( "brownfield "), which is any site, building, facility, or complex that has been designated a brownfield by the Community and Economic Development Department. 2. Develop a business based on local university research. Develop a commercial product or enterprise that is based upon licensing intellectual property arising from research conducted at a public or private university, college, or community college within St. Joseph County. [64iAy five twenty -five (25) public benefit points] 3. Meet enerQv- efficient building standards. Meet enerRv- efficient buildin standards at the Silver level or higher, as prescribed by the US Green Building Council's current Leadership in Energy and Environmental Design (LEED) rating systern and reference euide. published at www.usabc.ore. lfifty (50) public benefit points 4. Promote )zreen technology. Develop a business whose primary function is the manufacture, distribution or installation of renewable energy products and materials, including solar, wind and /or geothermal. Ififty (50) public benefit pints 5. Invest in targeted areas. Locate a real property investment in the Economically Distressed Area. [one hundred (100) public benefit pointsl b. "Super- size" project development actions. Produce new construction or rehabilitation that exceeds either the number of square feet or the amount of hard - dollar cost that is required to qualify under the applicable provisions of sections 2 -77 through 2 -83 by one hundred (100) percent or more. [T-we h,,ndr -ed tan (210) One hundred (100) public benefit points awarded in cumulative increments based on the percentage by which the number of square feet or the amount of hard - dollar cost that is required to qualify, as follows: r�.� eeearss� I Now �iI YarJ ia�a ��s� t 3. Meet enerQv- efficient building standards. Meet enerRv- efficient buildin standards at the Silver level or higher, as prescribed by the US Green Building Council's current Leadership in Energy and Environmental Design (LEED) rating systern and reference euide. published at www.usabc.ore. lfifty (50) public benefit points 4. Promote )zreen technology. Develop a business whose primary function is the manufacture, distribution or installation of renewable energy products and materials, including solar, wind and /or geothermal. Ififty (50) public benefit pints 5. Invest in targeted areas. Locate a real property investment in the Economically Distressed Area. [one hundred (100) public benefit pointsl b. "Super- size" project development actions. Produce new construction or rehabilitation that exceeds either the number of square feet or the amount of hard - dollar cost that is required to qualify under the applicable provisions of sections 2 -77 through 2 -83 by one hundred (100) percent or more. [T-we h,,ndr -ed tan (210) One hundred (100) public benefit points awarded in cumulative increments based on the percentage by which the number of square feet or the amount of hard - dollar cost that is required to qualify, as follows: TABLE INSET: 1. 100% to 199% twenty -five (25) public benefit points 2. 200% to 299% s twenty- five (25) additional public benefit points 3. 300% to 399% s €i ) twenty -five (25) additional public benefit points 4. 400% and over €i€t -two (52) twenty -five (25) additional public benefit points c. Construction related actions, The applicant will: 1, Employ local companies. Employ local companies for at least seventy -five (75) percent of the cost of construction work associated with the project, except for the cost of any construction work that is not reasonably available from a local company jt ty (20) twenty -five (25) public benefit points]. cep -at least seventy that is not reasonably available f�om a leeal eempany ftwenty (20) pub beffe t poin '. Employ local construction workers. Fifty (50 %) percent of construction workers on abated project reside in St. Joseph County [twenty-five 25 public benefit points I. 3. Pay the common construction wage. Construction contractors pay all construction employees one - hundred percent 100% of the total wage package of the most recent wage adopted by a Common Construction Wage Committee as defined by IC 5 -16 -7 for St. Joseph County Building Projects, This Common Construction Wage setting can be found at www.in.,ov Idol /2596.htm. II r_ UN d. Wages and benefits related actions. The applicant will: 1. Pa self-sufficiency wage levels. Pay to all company employees Self- Sufficiency Wages. A Self-Sufficiency Wage is defined as the wage rate that provides a full -time worker an income sufficient to meet basic needs without subsidies of any kind. It is calculated as follows;. Sten 1: Determine the Self-Sufficiency Annual Income Level. Avera e the self-sufficiency annual income levels for a household of size three calculated by the Indiana Coalition for Housing and Homeless Issues for St. Joseph County at: http://www.region4workforeeboard,org/calculator/selfsuffeale.c 12 . . _ .. ,,. 1. Pa self-sufficiency wage levels. Pay to all company employees Self- Sufficiency Wages. A Self-Sufficiency Wage is defined as the wage rate that provides a full -time worker an income sufficient to meet basic needs without subsidies of any kind. It is calculated as follows;. Sten 1: Determine the Self-Sufficiency Annual Income Level. Avera e the self-sufficiency annual income levels for a household of size three calculated by the Indiana Coalition for Housing and Homeless Issues for St. Joseph County at: http://www.region4workforeeboard,org/calculator/selfsuffeale.c 12 Ste 2: Divide the Self-Sufficiency Annual Income Level by 2,080 hours the number of hours for full -time work in a year, to get the Self - Sufficiency Wage, The Self- Sufficiency Wage until March 1, 2011 is $12.90 per hour. The Self - Sufficiency Wage shall be recalculated annually on March 1st using the calculation described above. For the puKposes of this sub ara rah and subparagraph 2 below, "Wage" means straight -time, gross pay, exclusive of premium pay, and subject to the following specific inclusions and exclusions. (i) Included are: base rate; cost -of- living allowances; guaranteed pay; hazardous -duty pay; incentive pay including commissions and production bonuses; on -call pay; and tips. (ii) Excluded are: back pay; jury duty pay; overtime pay; severance pay; shift differentials; nonproduction bonuses; and tuition reimbursements. one hundred 100 public benefit points awarded in cumulative increments based on the extent to which all company employees are paid a wage above the poverty wage, as follows: 1. 10 % to 33% of the difference between twenty-five (251 public benefit the overt and self - sufficient wa e Dints 2. 34% to 66% of the difference between twenty- -five (25) additional public the poverty and self- sufficiency __w_a benefit paints 3. 67% to 99 % of the difference between twenty -five (25) additional public the p2ygily and self - sufficient wa e benefit points 4. Self-sufficiency wage or higher twenty-five (25) additional public benefit Dints 13 • 011F. M 11-1-21 RM M4=1 UUM 13 7. P-r ire leweF a &zqls-ted h . -,�g . - r-am. — e „tee- an Ter 2. Pa above -avera e wa es. Pay aver@ e wages total wa e bill divided by number of employees) greater than the mean hourly wage rate for all occupations for the South Bend - Mishawaka Metropolitan Statistical Area. Published at http: / /www.bls,gov /oes /current /oes 43780.htm #b00 -0000 ]fifty (50) public benefit points], The mean hour] wa e rate for all occupations for the South Bend - Mishawaka Metropolitan Statistical Area until March 1 2011 is $18.07 per hour. The mean hourly wage rate shall be determined annually on March 1 st by referencing the source listed above. 3. Provide health benefits. Make a contribution to a standard health plan for rejeular full - and art -time employees equal to at least _..e ht -five (85 %) percent of the premium costs of the plan. The plan includes coverage for at least eighty (80%) percent of medical services paid by the plan, with no more than $3,000 out -of- pocket costs for a family, as well as prescription drugs and mental health services with affordable co -pays. (fifty (50) public benefit points]. 4. Provide Pension bene its. Make a contribution to a retirement plan, available to all regular full- and art-time em to ees of fifty 50% percent of employee contributions, up to five (5 %) percent of total wages. ]fifty (50) public benefit points]. 5. Provide training. Provide training to o employees, which consists of certified training or educational courses equal to at least $500 per employee, [fifty 50 public benefit points]. 6. Provide day care. Provide an on -site child care center and /or a fl6xible spending account providing for before -tax payments of dependent care expenses, with an annual limit of $5,000 per employee. ]twenty -five (25) public benefit points]. 7. Provide transportation assistance. Provide Transportation Assistance to lower income employees such as using public transportation, subsidized public transportation or special van services equal to at least $150 per employee. f twenty -five (25) public benefit points]. 8. Provide employer- assisted housing program. Provide an employer - assisted home ownership-_p "gram equal to at least $150 per employee. ]twenty. - f�(25) public benefit points]. f 4} e. Workforce related actions. The applicant will: 14 a. 1 Create new jobs. Create at least a specified number of new jobs one hundred 100 ublic benefit Dints awarded in cumulative increments based on the number of new jobs created, as follows: I 1. 1 'obs twenty -five (25) public benefit points =t2=25 2. 2b to 50 'obs twenty-five 25 additional public benefit oints 3. 51 to 75 jobs twenty-five 25 additional ublic benefit Dints 4. More than 75 jobs twenty -five (25) additional public benefit points b. 2. Retain existing jobs. Retain at least a spee fied ~,,,-Y be thbresent level of existing jobs [f Ay ene (44 -' twenty -five (25) public benefit points]. othef similaf plan with speeifie goals, objeetives, and fneafts O-e, ifi house •- :. -10._ 15 3. Employ residents of Census Tracts in Economically Distressed Areas. Employ residents of Census Tracts in Economically Distressed Areas as a percentage of total coMpany company employees. one hundred 100 public benefit points awarded in cumulative increments based on the number of Economical) Distressed Area residents employed as a percentage of total company employees as follows: 1. 1% to 10% of ern to ees twenty-five. 25 public benefit 12oints 2. 11%o to 20% of employees twenty-five 25 additional public benefit amts 3. 21 °Io to 30% of employees twenty-five 25 additional public benefit oints 4. More than 30 % of employees twenty-five (25). additional public benefit olnts (2) Public benefit points thresholds and additional abatement years, except multi family development. Except with respect to multi - family development projects, the threshold number of public benefit points required to earn consideration by the Council of each additional year of abatement shall be as set forth below: IMMIL -7 07d lac• 16 612, IIIIIIJ ON a. Zero (0) throujzh three hundred ninety -nine (399) public benefit points earns consideration of zero (0) additional years of abatement; b. Four hundred (400) through four hundred ninety -nine (449) public benefit points earns consideration of one (1) additional year of abatement; c. Five hundred (500) through five hundred ninety -nine (599)_ public benefit points earns consideration of two (2) additional years of abatement; d. Six hundred 600 throu six hundred ninety-nine 699 public benefit Dints earns consideration of three 3 additional years of abatement; e. Seven hundred (700) through seven hundred ninety -nine (799) public benefit points earns consideration of four (4) additional years of abatement; f. Eight hundred (800) through eight hundred ninety -nine (899) p_ublc_benefit points earns consideration of five (5) additional years of abatement;_ g_. Nine hundred (900 through nine hundred ninety -nine (999) public benefit Dints earns consideration of six 6 additional years of abatement; h. Three Hundred ninety -four (394) Sec. 2- 84.14. Failure of petitioner to comply may result in fines being imposed or termination of economic revitalization designation and repayment of taxes previously abated.* *Note: IC 6 -10,1- 12.1 -5 -9, Version b provides in part that if the Common Council "determines that the property owner has not substantially complied with the statement of benefits and that the failure to substantially comply was not caused by factors beyond the control of the property owner" (such as declines in demand for the property owner's products or services) the Council shall hold a hearing after proper notice has been given, with the Council determining whether the property owner has "made reasonable efforts to substantially comply with the statement of benefits and whether any failure to substantially comply was caused by factors beyond the control of the property owner ". (a) The Council believes that the granting of a request for real and/or personal property tax abatement under the terms and conditions of this article and the memorandum of agreement 17 constitutes'a contractual arrangement between the Council and the property owner granted the abatement. ` (b) Accordingly, if the petitioner fails to achieve the estimates set forth in its original petition for tax abatement consideration and its statement of benefits, fines may be imposed by the Council relative to the severity of the failure to achieve. (c) Therefore, a petitioner who fails to file its annual report and meet with the Council's Community and Economic Development Committee as required by section 2 -84.13 shall be fined two thousand five hundred dollars ($2,500.00), (d) A petitioner who complies with section 2- 84.13, but fails to provide evidence as to why it has not fulfilled the obligations set forth in the memorandum of agreement and the petitioner's related documents used by the Council when granting the abatement, may be required to pay part or all of the tax abated to -date and may be fined in the minimum amount of two hundred fifty dollars ($250.00) to a maximum amount of two thousand five hundred dollars ($2,500.00) for each such failure to perform. (e) During the term of the abatement, the Community and Economic Development Department may annually request information from the applicant concerning the nature of the project, the approved capital expenditures for the project, the number of full -time permanent positions newly created by the project, and the average wage rates and salaries (excluding benefits and overtime) associated with the positions, and the applicant shall provide adequate written evidence thereof within fifteen (15) days of such request (the "annual survey "), The Community and Economic Development Department shall utilize this information and the information required to be filed by the applicant in the CF -1 compliance with statement of benefits form to verify that the applicant has complied with the commitments contained in the memorandum of agreement at all times after the memorandum of agreement date and during the duration of the abatement. The applicant further agrees to provide any additional information requested by the Community and Economic Development Department related to the information provided in the annual survey and the CF -1 form within a reasonable time following any such additional request. (f) The City, by and through the Council, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it determines that the applicant has not made reasonable efforts to substantially comply with all of the commitments, and the applicant's failure to substantially comply with the commitments was not due to factors beyond its control. (g) As used in this section, factors beyond the control of the applicant shall only include factors not reasonably foreseeable at the time of the designation, application and submission of statement of benefits which are not caused by any act or omission of the applicant and which materially and adversely affect the ability of the applicant to substantially comply with this section. (h) If the Council terminates the Economic Revitalization Area designation and associated tax abatement deductions, it may require the applicant to repay all or a portion of the tax abatement savings received through the date of such termination. The amount of tax abatement required to be repaid for each year of noncompliance shall not exceed an amount equal to the percentage by which the applicant has failed to attain substantial compliance in any of the aforementioned investment,, position retention and/or creation and average hourly wage rate and salary categories multiplied by the dollar amount of taxes actually abated. If the applicant fails to comply with more than one of the aforementioned categories, repayment shall be based on the highest level of non - compliance. The City's Legal Department is hereby authorized to pursue all legal actions necessary in the event of such non- compliance or failure by the applicant to perform other duties and responsibilities arising when it agreed to certain contractual obligations by signing the memorandum of agreement. (i) If at any time during the term of the agreement, whether before or after the commitment date, the applicant shall: (i) cease operations at the facility for which the tax abatement was granted; or (ii) announce the cessation of operations at such facility, then the Council may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require applicant to repay all of the tax abatement savings received through the date of such termination. or more public benefit 2oints earns consideration of seven 7 additional years of abatement. 'From To Additional Years 0 399 0 400 499 1 500 599 2 .600 699 3 700 799 4 800 899 5 900 999 6 _11,10-00 & over 7 (3) Public benefit points thresholds and additional abatement years, multi family development. With respect to multi - family development projects, the threshold number of public benefit points required to earn consideration by the Council of each additional year of abatement shall be as set forth below: a. Zero (0) through one hundred forty -one (141) public benefit points earns consideration of zero (0) additional years of abatement; b. One hundred forty -two (142) through one hundred eighty-three (183) public benefit points earns consideration of one (1) additional year of abatement; 19 c. One hundred eighty -four (184) through two hundred twenty -five (225) public benefit points earns consideration of two (2) additional years of abatement; d. Two hundred twenty -six (226) through two hundred sixty -seven (267) public benefit points earns consideration of three (3) additional years of abatement; e. Two hundred sixty -eight (268) through three hundred nine (309) public benefit points earns consideration of four (4) additional years of abatement; f. Three hundred ten (310) through three hundred fifty -one (351) public benefit points earns consideration of five (5) additional years of abatement; g. Three hundred fifty -two (352) through three hundred ninety -three (393) public benefit points earns consideration of six (6) additional years of abatement; h. Three hundred ninety -four (394) to one thousand (1,000) public benefit points earns consideration of seven (7) additional years of abatement. Sec. 2 -77.1. Single - family residential construction. (a) Generally. The Council believes that the following general standards have a reasonable relationship to the development objectives of single-family residential construction within the City, and would warrant tax abatement consideration as set forth herein. (b) Base abatement general standards. (1) Proposed single- family new construction homes which are to be located within the City's corporate boundaries and meet the requirements addressing residentially distressed areas set forth in IC, 6- 1.1- 12.1 -2 and the provisions of subsection (d) below, may be considered for a base abatement consisting of five (5) years real property tax abatement. 2 Rehabilitation. Proposed single-family residential developments which into orate rehabilitation of not less than ten thousand dollars ($10,000.00) in hard - dollar costs which are to be located in the Economically Distressed Area,-mav be considered for a base abatement consisting of five 5 ears real property tax abatement. This abatement will be considered only if the property in question does not qualify for either of the 5-ye abatements specified in Indiana Code 6- 1.1 -12 -18 or 6-1.1-12-22. (c) No add -on abatement. No add -on abatement will be granted for single - family residential construction. 20 (d) Residentially distressed area designation. The grant of a residentially distressed area designation is subject to the following conditions: (1) The deduction will not be allowed unless the dwelling is constructed to meet the local code standards for habitability. (2) If a designation application is filed, the Council may require that the construction be completed within a reasonable period. Sec. 2 -842. Tangible personal property tax abatement. (a) Generally. The Council believes that the following general standards have a reasonable relationship to the development objectives of promoting the installation of New Personal Property in urban development areas within the City's corporate boundaries, and would warrant tax abatement consideration as set forth herein. (b) Base abatement general standards. (1) An applicant seeking personal property tax abatement must comply with all of the provisions of IC 6 -1.1- 12.1 -4.5, and the provisions of division I I that are applicable. (2) An applicant complying with such provisions may be considered for a base abatement consisting of five (5) years personal property tax abatement. In the case of exceptional developments that create significant employment and tax revenues such as I/N Tek UN Kote and the AM General H2 project, the Council may consider a personal ro erty tax abatement of up to ten (10) years. (c) Certification of New Manufacturing Equipment, New Research and Development Equipment, New Logistical Distribution Equipment and New ,Information Technology Equipment. An applicant seeking personal property tax abatement must certify that it will use the New Manufacturing Equipment, New Research and Development Equipment, New Logistical Distribution Equipment and New Information Technology Equipment in one (1) or more of the uses listed within the definition of New Manufacturing Equipment, New Research and Development Equipment, New Logistical Distribution Equipment and New Information Technology Equipment set forth in IC 6 -1.1 -12.1 et seq. (d) No add -on abatement. No add -on abatement will be granted for personal property Sec. 2 -84.7: Designation application required. (a) Owners must. file. Owners of real property or new manufacturing equipment located within the City may petition the Council on forms provided by the City Clerk for real or personal property tax abatement consideration. All information and attachments required by the 21 designation application must be completed and filed with the City Clerk together with a filing fee set forth below to cover the review, processing and administrative costs of the Community and Economic Development Department and City Clerk. However, the filing fee charged for filing a designation application for a parcel that contains one (1) or more owner - occupied, single - family dwellings may not exceed the cost of publishing the required notice. (b) Schedule of fees. The application/review and Clerk's Office fees set forth below must be paid by the applicant to the City Clerk simultaneous with the filing of application or petition for real or personal property tax abatement consideration. The annual administration fees set forth below must be paid by the applicant upon receipt of a billing from the Community and Economic Development Department after the Council has adopted the pertinent declaratory resolution. (1) Outside a TIAA: a. Real property: 1. Application review ... $323.00 2. Clerk's Office ... 250.00 3. Annual administration, fee per year of abatement ... 117.00 b. Personal property: 1. Application/review ... $323.00 2. Clerk's Office.. . 250.00 3. Annual administration, fee per year of abatement. 117.00 c. C'ombined: 1. Real property: (i) Application/review ... $323.00 (ii) Clerk's Office ... 250.00 (iii) Annual administration, fee per year of abatement. 117.00 2. Personal property: (i) Application/review ... $161.50 (ii) Clerk's Office ... 250.00 (iii) Annual administration ... 292.50 (2) Inside a TIAA: a. Real property: 1. Application/review ... $393.00 2. Clerk's Office.. . 250.00 3. Annual administration, fee per year of abatement ... 117.00 b. Personal property: 1. Application/review ... $393.00 2. Clerk's Office ... 250.00 3. Annual administration, fee per year of abatement ... 117.00 c. Combined: 1. Real property: (i) Application/review ... $393.00 (ii) Clerk's Office ... 250.00 (iii) Annual administration, fee per year of abatement ... 117.00 22 2. Personal property: (i) Applicationfreview. ... $196.50 (ii) Clerk's Office ... 250.00 (iii) Annual administration ... 292.50 The application/review and City Clerk's components of each of the above fees are nonrefundable. The annual administration component of each of the above fees may be refunded in the event the application or petition for tax abatement consideration is not approved by the Council or is withdrawn by the owner prior to final action by the Council. Should a tax abatement be rescinded, the annual administration fee for that abatement may be refunded subject to any refund being prorated and reduced by any costs incurred by the City in taking such action. Fees collected under this section shall be deposited as follows: Office of the City Clerk, fee of two hundred fifty dollars ($250.00) to the General Fund; and All other fees to Fund 212 to be used by the Community and Economic Development Department- (c) Petition information. Property owners petitioning for tax abatement shall provide the following information on the petition to enable the Council to consider their request: (1) The name(s) and address(es) of the real property owner(s) (and personal property owner(s), in the case of the request for personal property tax abatement), and any other person(s) leasing, intending to lease, or having an option to purchase such property, and a brief description of the business. (2) If the business organization is publicly held, the name of the corporate parent and the name under which the corporation is filed with the Securities Exchange Commission. (3) The legal description and commonly known address of the real property for which real property tax abatement is being petitioned; or the legal description and commonly known address of the facility at which the New Personal Property for which tangible personal property tax abatement is being petitioned will be located. (4) A map and /or plat describing the area where tax abatement is being requested. (5) 'The current assessed valuation of the real property improvement before Rehabilitation, Redevelopment, economic revitalization, or improvement; or the current valuation of the tangible personal property to be replaced by New Personal Property. (6) Photographs of the location taken within two (2) weeks of the filing of the petition. (7) The real and personal property taxes paid at the location during the previous five (5) years, whether paid by the current owner or a previous owner. 23 (8) The commitment made within the past five (5) years to hiring minority persons including number of minority persons employed during each of the past five (5) years, specifying whether full -time or part-time and whether permanent or temporary employees. The petitioner shall also list the current number of total employees (full- and part -time) and the current number of minority persons (full- and part - time). (9) An estimate of the after - rehabilitation market value of the real property or an estimate of the market value of the New Personal Property after installation. (10) The commitment to minority employment during the first five (5) years of tax abatement. (11) A description of the proposed project (whether Rehabilitation, new construction, or installation of New Personal Property), including information about physical improvements to be made or the New Personal Property to be installed, an estimate of the cost of the project, the amount of land to be used, the proposed use of the improvements, and a general statement as to the value of the project to the business. (12) An estimate of the number of new permanent jobs to be created by the project within two (2) years, a statement of the current number of permanent and part -time jobs at the location and the impact on those current jobs to be caused by the project, and the projected annual salaries for each such position to be created. (13) Certification that no building permit has been issued for construction on the property for the improvement proposed or verification that the New Personal Property has not been installed. (14) The North American Industry Classification System (NAICS) major group within which the proposed project would be classified, by number and description, (15) The Internal Revenue Service Code of principal business activity by which the proposed project would be classified, by number and description. (16) A description of on -site child care or day care facilities, services, or benefits currently offered or proposed to be offered by the petitioner for children of employees. (17) Other anticipated public financing 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 Administration Section 544, financing through the Business Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana; financing through the Industrial Development Revolving Fund; f ; or other public financial assistance, including public works improvements. 24 (18) For real property tax abatement, a description of how the property in question has become undesirable for or impossible of normal development and occupancy because of lack of development, cessation of growth, deterioration of improvements, or character of occupancy, age, obsolescence, substandard buildings or other factors which have impaired values and prevent a normal development of the property or property use. (19) For personal property tax abatement, a description of why the facility or group of facilities to be replaced are technologically, economically or energy obsolete, whereby the obsolescence may lead to a decline in employment and tax revenues; together with a verification that the New Personal Property will be used and that the New in one (1) or more of the uses listed within the definitions of New Manufacturing Equipment, New Research and Development Equipment, New Logistical Distribution Equipment and New Information and Technology Equipment, all as set forth in IC 6 -1.1 -12.1 et seq., was never before used by its owner for any purpose in Indiana. (20) The name, address, telephone number, facsimile number, email address, and web address of the person to contact regarding notice of Council meetings and public hearings concerning the petition. (21) The name, address, telephone number, facsimile number, and email address of the person who will work with WDS for employee recruitment. 22) Certified payrolls to document the payMent of employee wage rates. Identif in individual information should be withheld. (23) Certified payrolls to document the payment of wage rates residency, and em to ment status of construction workers em to ed on the abated project..- (Identifying individual information should be withheld. 24) A written Affirmative Action Plan for company employees, which indicates the positive steps being taken to encoura e the Kirin romotion and retention of ualified members of historically disadvantaged grougn, such as eo le of color, women and the disabled. 25) A written Affirmative Action Plan maintained b construction contractors which conforms to those required of federal contractors as specified in Executive Order 11246 andihe Federal Code of Regulations. (26) Written documentation to support all claims for public benefit points made in connection with their abatement. (d) Power of attorney. If a person other than the person signing the application is to represent the applicant at any meeting of the Community and Economic Development Committee or the Council, a duly executed power of attorney authorizing such representation must be on file with the City Clerk. 25 Sec. 2 -84.3. Advisory review by Community and Economic Development Department, (a) Upon the filing of a completed tax abatement petition, including all attachments, filing fee, statement of benefits form, and the declaratory and confirmatory resolutions by the owner, the City Clerk shall refer the documents to the Community and Economic Development Department for an advisory review. The review shall be for informational purposes only, and shall not be binding on the designating body. (b) The Community and Economic Development Department shall review the petition, statement of benefits, and all attachments thereto. It shall also have the authority to request additional information from the petitioner which are relevant to the petition and statement of benefits. (c) Within fifteen (15) days from the receipt of the documents from the Office of the City Clerk, the Community and Economic Development Department shall prepare a written report setting forth a review of its advisory findings. The report shall be sent to the Council's Community and Economic Development Committee, to the City Clerk, and to the petitioner. (d) The report shall address but not be limited to addressing the following: (1) Whether all required information has been submitted by the petitioner. In the event that additional information was requested of the petitioner, the report shall address such requests and the response received from the petitioner. (2) Whether the information contained in the petition and statement of benefits indicates that the requirements of this article are met by the project as described in the petition. (3) Whether zoning requirements have been met, according to the BUildin Department of Code Enforcement. A copy of the Building Department's of Code report shall be attached to the report. (4) ' Whether the project is located in a tax allocation area, as defined in IC 36- 7 -14 -39 and, if so, whether the South Bend Redevelopment Commission has adopted a resolution approving that application. A copy of such a resolution if required shall be attached to the report. (5) The proposed memorandum of agreement shall be attached to the report. (6) Whether in the Community and Economic Development Department's opinion, a deduction should be allowed based on the following: a. Whether the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of that nature. 26 b. Whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation. c. Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation. d. Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation. (e) The Community and Economic Development Department's report shall also have attached to it a copy of the petition and statement of benefits form and all attachments thereto. Sec. 2- 84.14. Review and recommendation by Council's Community And Economic Development Committee. (a) The Council's Community and Economic Development Committee shall examine, review and conduct a public committee meeting concerning the petition and statement of benefits, and declaratory resolution. Such meeting shall not be scheduled until the advisory report from the Community and Economic Development Department Develepme has been received by the City Clerk, the Council's Community and Economic Development Committee, and the petitioner. (b) The petitioner and /or its representatives shall be required to attend all such committee meetings where such information is to be reviewed. The petitioner shall present verbal and written evidence as to why it believes it should be granted the tax abatement sought. (c) At the Committee meeting, the Committee shall specifically consider, among other information provided by the petition, the commitment made to minority employment by the petitioner during the past five (5) years and during the first five (5) years of tax abatement. (d) Following questioning and review, the Committee shall take action on the request and shall submit its recommendation to the Council as to whether the property qualifies as an Economic Revitalization Area under the terms of this article and IC 6 -1.1- 12.1 -1 et seq. Sec. 2- 84.12. Confirmatory resolution. (a) "Following the legal publication and on the date published in the legal notice, a public hearing on the confirmatory resolution shall be held by the Council. The petitioner and/or its representative shall be present and shall be required to present evidence why it believes the tax abatement requested should be granted, at which time the Council shall receive and hear all remonstrances and objections from interested persons pertaining to the petition. At the public 27 hearing, the Council shall determine whether the petition complies with this article and with IC 6- 1.1- 12.1,et seq., and shall consider all pertinent requirements for Economic Revitalization Areas prior to taking final action determining whether the petition meets qualifications for an Economic Revitalization Area and confirming, modifying and confirming, or rescinding the declaratory resolution. The determination of Council is final except that an appeal may be taken and heard as provided by IC 6- 1.1- 12.1- 2.5(d) and (e). (b) The Geoneil must make a determination as to wheth" the deduetieffs shall be 6E)ffiPly 4044-h- I-C-2. 4 1.1 12,1 4.5 wp� ;�ake speeifie finding thereto wben eensi eta requests--, —The Council must make a determination as to whether the deductions shall be allowed and make-specific findings pursuant to IC 6- 1.1- 12.1-3 when considering real property tax abatement requests to be located in economic revitalization areas. The Council must further comply with IC 6- 1.1- 12.1 -4.5 and makespecific findings thereto when considering personal property tax abatement requests, In the case of real property tax abatement requests to be located in residentially distressed areas the Council must make a determination as to whether deductions shall be allowed and makespecific findings ursuant to IC 5- 1.1- 12.1 -2 and IC 6 -1.1- 12.1 -3. (c) In declaring an area an Economic Revitalization Area, the designating body may: (1) Limit the time period to a certain number of calendar years during which the area shall be so designated; (2) Limit the type of deductions that will be allowed within the Economic Revitalization Area to either the deduction allowed under IC 6- 1.1- 12.1 -3, IC 6- 1.1- 12.1 -4.1 IC 6 -1.1- 12.1 -4.5 or the deduction allowed under IC 6- 1.1- 12.1 -4. -58; (3) Limit the dollar amount of the deduction that will be allowed with respect to New Personal Property if a deduction had not been filed before July 1, 1987, for that equipment; (4) Limit the dollar amount of the deduction that will be allowed with respect to redevelopment and rehabilitation occurring in areas that are designated as Economic Revitalization Areas on or after September 1, 1988; or (5) Impose reasonable conditions related to the purpose of state law or to the general standards adopted herein for allowing the deduction for the Redevelopment or Rehabilitation of the property or the installation of the New Personal Property. (d) Tp exercise one (1) or more of the above- described powers, the Council must include this fact in the resolutions adopted. (e) Prior to the Common Council taking final action on a Confirmatory Resolution which involved Public Benefit Points being awarded for construction jobs, a list of contractors M which are intended to be used must be filed by the Petitioner with the Department of Community and Economic Development for verification purposes by the Department. The Department shall confirm in writing to the Office of the City Clerk receipt of such information which will trigger the Confirmatory Resolution being placed on a Common Council agenda. Sec. 2- 84.13. Annual review of petitions by Council. (a) All property owners who receive approval of their real and /or personal property tax abatement requests as a result of the Council's action under this article, shall be required to appear before the Council's Community and Economic Development Committee. Such appearances shall take place at a committee meeting following the petitioner's filing of the first Certified declaration application with the County Auditor, required by the State Board of Tax Commissioners pursuant to IC 6- 1.1- 12.1 -5. (b) Additionally the petitioner shall file with the Committee its annual report on forms previously sent to it by the Community and Economic Development Department. Such mailing by the Community and Economic Development Department shall be done annually to each such petitioner on or before February 1, by certified mail, and shall provide notice that if the property owner fails to comply, that it may be subject to fines as set forth in this article. Petitioners must return their completed annual report within thirty (30) days from receipt with such date being calculated "from the returned receipt mail card date. (c) The annual report shall include, but not be limited to, the following information. (1) The name and address of the person(s) filing the report. (2) The amount of real and/or personal property taxes paid for the property during the year before the property was declared as an Economic Revitalization Area and during the most recent tax year. (3) The current number of part-time and full -time jobs, specifying whether permanent or temporary, and the number of such jobs as of the end of the year immediately prior to receiving tax abatement. (4) The names of Local Company and/or Minority contractors used during the renovation of the real property and /or installation of New Personal Property for which tax abatement was received. (5) The number of minority persons hired for full -time and part -time jobs, specifying whether such jobs are permanent or temporary, since the completion of the project for which tax abatement was given. 6 Updated certified payrolls to document the payment of em to ee wage rates. (Identifying individual information should be withheld. c 7 Updated certified payrolls to document the payment of wage rates residency, and employment status of construction workers employed on the abated proLect, if the construction project is still ongoing_ $ Written documentation to demonstrate that the petitioner is still in compliance with the commitments made to receive public benefit points. (d) In addition to the Council's Community and Economic Development Committee being present at said committee meeting to review the petitioner's progress, Workforce Development Services, and members of the Community and Economic Development Department shall be in attendance to question the petitioner. (e) The Council's Community and Economic Development Committee shall review the material presented by the petitioner in comparison to the information published by the County Auditor as required by IC 6- 1.1- 12.1 -8, (f) The Council's Community and Economic Development Committee shall specifically advise each property owner in writing as to whether subsequent appearances before the Committee shall be necessary. If such additional appearances are not required, the property owner shall be duly advised that its future annual reports may be mailed. Failure to mail such completed reports shall result in a fine of two thousand five hundred dollars ($2,500.00) for each such failure to comply. Sec. 2- 84.14. Failure of petitioner to comply may result in fines being imposed or termination of economic revitalization designation and repayment of taxes previously abated.* *Note: IC 6- 101 - 12.1 -5 -9, Version b provides in part that if the Common Council "determines that the property owner has not substantially complied with the statement of benefits and that the failure to substantially comply was not caused by factors beyond the control of the property owner" (such as declines in demand for the property owner's products or services) the Council shall hold a hearing after proper notice has been given, with the Council determining whether the property owner has "made reasonable efforts to substantially comply with the statement of benefits and whether any failure to substantially comply was caused by factors beyond the control of the property owner ". (a) The Council believes that the granting of a request for real and/or personal property tax abatement under the terms and conditions of this article and the memorandum of agreement constitutes a contractual arrangement between the Council and the property owner granted the abatement. (b) Accordingly, if the petitioner fails to achieve the estimates set forth in its original petition for tax abatement consideration and its statement of benefits, fines may be imposed by the Council relative to the severity of the failure to achieve. (c) Therefore, a petitioner who fails to file its annual report and meet with the Council's Community and Economic Development Committee as required by section 2 -84.13 shall be fined two thousand five hundred dollars ($2,500.00). (d) A petitioner who complies with section 2- 84.13, but fails to provide evidence as to why it has not fulfilled the obligations set forth in the memorandum of agreement and the petitioner's related documents used by the Council when granting the abatement, may be required to pay part or all of the tax abated to -date and may be fined in the minimum amount of two hundred fifty dollars ($250.00) to a maximum amount of two thousand five hundred dollars ($2,500.00) for each such failure to perform. (e) During the term of the abatement, the Community and Economic Development Department may annually request information from the applicant concerning the nature of the project, the approved capital expenditures for the project, the number of full -time permanent positions newly created by the project, and the average wage rates and salaries (excluding benefits and overtime) associated with the positions, and the applicant shall provide adequate written evidence thereof within fifteen (1 S) days of such request (the "annual survey "). The Community and Economic Development Department shall utilize this information and the information required to be filed by the applicant in the CF -1 compliance with statement of benefits form to verify that the applicant has complied with the commitments contained in the memorandum of agreement at all times after the memorandum of agreement date and during the duration of the abatement. The applicant further agrees to provide any additional information requested by the Community and Economic Development Department related to the information provided in the annual survey and the CF -1 form within a reasonable time following any such additional request. (f) The City, by and through the Council, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it determines that the applicant has not made reasonable efforts to substantially comply with all of the commitments, and the applicant's failure to substantially comply with the commitments was not due to factors beyond its control. (g) As used in this section, factors beyond the control of the applicant shall only include factors not reasonably foreseeable at the time of the designation, application and submission of statement of benefits which are not caused by any act or omission of the applicant and which materially and adversely affect the ability of the applicant to substantially comply with this section. (h) 'If the Council terminates the Economic Revitalization Area designation and associated tax abatement deductions, it may require the applicant to repay all or a portion of the tax abatement savings received through the date of such termination. The amount of tax abatement required to be repaid for each year of noncompliance shall not exceed an amount equal to the percentage by which the applicant has failed to attain substantial compliance in any of the aforementioned investment, position retention and/or creation and average hourly wage 31 rate and salary categories multiplied by the dollar amount of taxes actually abated. If the applicant fails to comply with more than one of the aforementioned categories, repayment shall be based on the highest level of non - compliance. The City's Legal Department is hereby authorized to pursue all legal actions necessary in the event of such non - compliance or failure by the applicant to perform other duties and responsibilities arising when it agreed to certain contractual obligations by signing the memorandum of agreement. (i) If at any time during the term of the agreement, whether before or after the commitment date, the applicant shall: (i) cease operations at the facility for which the tax abatement was granted; or (ii) announce the cessation of operations at such facility, then the Council may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require applicant to repay all of the tax abatement savings received through the date of such termination. Section II. This Ordinance shall be in full force and effect from and after its adoption by the Common Council, approval by the Mayor, and any publication required by law. Attest: City Clerk Member, South Bend Common Cou `il �lm�yfog, �.� b!"'u- e� a .gg��', �r for x.Gp � iYp�43� #3 � Y'� < , Presented by me to the Mayor of the City of South Bend, Indiana on the day of , 2 , at o'clock , M. City Clerk Approved and signed by me on the day of , 2 , at o'clock . m. ZA v NOT APFkQVW WERPM DASSEA Mayor, City of S 32 11,11 AY ? 2010 Crry C,Eff #r', �'Q. E_IN"), IN. CrrY oi-, Soui•ii 131,,,ND ST .FPHFN J. LuEcn,, MnYoR DEPARTMENT OF PUBLIC; WORKS May 19, 2010 Common Council Members — Subject: Sewer Rates 2010 -2013 We started this briefing in January 2010. We have had work sessions on the past 4 years of progress on the CSO Long Term Control Plan and what comes next in the next 4 years. We are now prepared to discuss the rates necessary to continue to move forward with environmental health stewardship and meet the federal mandate. We once again need to address rates to keep moving forward environmentally on controlling overflows from our combined sewer system, including basement backups, It is never popular to increase rates, but that Is the necessary task before us. It is over 4 years since the Common Council voted on sewer rates. It is time to review our progress, current status and make decisions on the next stage of implementing the plan we worked collectively as a community to create a 20 year roadmap for this major environmental infrastructure aspect of City Plan, We are facing a big $ 450 million CSO LTCP implementation ahead for the next 20 years. We will operate under Environmental Protection Agency, Indiana Department of Environmental Management and Federal Department of Justice Consent Decree for a long time (same as Mishawaka, Elkhart and many other communities in Indiana). Rates need to increase in 2010 and for the next 3 years (each year) to produce capital for sewer infrastructure investment of $70 million of dollars for the next priority group of projects. We continue to focus on public health as our priority most supported by the public - -- continuing to address chronic basement backup areas. There will be some more significant work to maximize our wastewater treatment plant wet weather capacity, both for higher flows and in terms of organic, nitrogen, solids and disinfection processes. This treatment plant aspect is the most cost- effective environmentally acceptable project to help everyone in the community. As local leaders, we want to avoid sewage backups into basements; we want to keep raw sewage out of the river after most rain storms. We also want to buffer rates. However, it should be communicated clearly that the EPA is mandating that we act and pushing us eventually beyond engineering break -even point - -- where each increment of cost produces an equal or greater increment of environmental benefit (called knee of the curve economic project scope). The EPA is eventually under the pending consent decree pushing us and other CSO communities under the 20 year plan to sewer rates that are above the guidance in the Clean Water Act of 2 % of median household income allocated to sewer bill (in the guidance in the Clean Water Act this is accepted as the level of "widespread economic hardship° due to high sewer rates), Department of Public Works Engineering Water Works Central Services Streets Fnviromne,1W Services Liar) A, Gilot, Director Carl P. C.ittrell. P.E. David'fungete Matt Chleliowski Sam Ilensley John J. Dillon, Ph.D. 574/735.92 1 574/235 -9251 574/235 -9322 574/235 -9316 574/235 -9244 5741277 -8515 .Fax 574/235 -9171 Fax 574/ 235 -9171 Fax 5741235 -5595 Fax 574/ 235 -9007 Fax 5741235 -9272 Fax 574/277 -8980 We have followed the plan we communicated to the Council in January 2010 to explain the necessary sewer rates by; 1.) Review what we accomplished on the CSO Long Term Control Plan (LTCP) the last 4 years with the prior 4 step rate increase. We reviewed what is done so far and what is in progress in the presentation 1 of 3. 2.) Next we reviewed the larger CSO LTCP and explained what comes next 2010 -2013 for rates and capital that will produce and why it is prioritized in presentation 2 of 3 and finally, 3,) We will explain the across the board rate adjustments needed for 2010 through 2013 to continue the mandated CSO LTCP efforts (bottom line rate ordinance proposal for 2010 -2013 in presentation 3 of 3). We are prepared to highlight presentation 3 of 3 as well as the full Rate Study and will have our rate expert consultant, John Skomp of Crowe, present this to the Council. We have provided much background so you can make a well informed though admittedly difficult public policy decision in these challenging economic times. We heard Council concerns and buffered rates by: 1.) No increase the first half of 2010, 2.) Reducing engineers and operations requests (Scenario 1) to a level that is progress from first 4 years, but not as high requested --- $ 70 million is that buffered need level to show progress to EPA and restraint to ratepayers in scenario 2 of the rate study --of which $60 million raised through sewer rates and $ 10 million from other existing sources of capital. 3.) We reduced taxes paid as PILOT to current rate plus 5 % per year. 4.) We propose meeting the $ 70 million capital investment level by use of $ 10 million of EDIT in a companion ordinance to follow to keep sewer rates increases to single digit and annual increases under a dime a day for typical residential customer using 5,000 gallons per month. Regards, gi r/�� a'h Gary A. Gilot, Public Works Director CC Mayor Stephen J. Luecke City Clerk John Voorde Council Attorney Kathleen Cekanski- Farrand ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING VARIOUS SECTIONS OF CHAPTER 17, ARTICLE 2, OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST SEWER RATES AND CHARGES INCREMENTALLY THROUGH 2013 STATEMENT OF PURPOSE AND INTENT On November 28, 2005 South Bend enacted a sewer rate adjustment through Ordinance #9639 -05 which set rates for the years 2006 through 2009. At this time the 2009 rates in Ordinance #9639 -05 apply to South Bend's sewer utility customers. South Bend is under a mandate from the federal Environmental Protection Agency (EPA) to greatly reduce combined sewage overflow (CSO) events in the St. Joseph River in compliance with the Clean Water Act. The cost of meeting this mandate and protecting the St. Joseph River is substantial, and South Bend has prudently planned for this remediation through a 20 year environmental infrastructure improvement and replacement process. The cost of river protection through improvements to the sewage utility's infrastructure is financed through sewer rates, and South Bend's current rates are inadequate to cover EPA mandated changes to the City's sewage treatment system. Additionally, South Bend's basic costs of operation and maintenance of its sewer utility have increased despite innovative cost savings programs initiated by the City's Environmental Services Department. It, therefore, becomes necessary to increase sewage utility rates across the board for all users and it is prudent to do so on an incremental basis to correspond with expected increased costs of Clean Water Act remediation, and the expected increased costs of general operation and maintenance. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND as follows: Section I. Chapter 17, Article 2, Division 4, Section 17 -20 of the South Bend Municipal Code be and hereby is amended to read as follows: Section 17 -20. Rates established. Every person whose premises are served by said sewage works shall be charged for the service Provided. These charges are established in order that the sewage works shall recover revenue which is proportional to its use of the treatment works in terms of volume and load. User charges are levied to defray the cost of operation and maintenance (including replacement) of the treatment works. User charges are subject to the rules and regulations adopted by the U.S, Environmental Protection Agency published in the Federal Register February 17, 1984 (40 C.F.R. 35.2140). Replacement costs, which are recovered through the system of user charges, shall be based upon the expected useful life of the sewage works equipment. Section II. Chapter 17, Article 2, Division 4, Section 17 -21 of the South Bend Municipal Code be and hereby is amended to read as follows: Section 17 -21. Sewage rates determination. (a) Generally. For the use of the service rendered by sewage works, rates and charges shall be collected from the owners of each and every lot, parcel or real estate or building that is connected with the City sanitary system or otherwise discharges sanitary sewage, industrial wastes, water or other liquids, either directly or indirectly, into the sanitary sewage system of the City of South Bend. Such rates and charges include user charges, debt service costs, excessive strength surcharges and other service charges, which rates and charges shall be payable as hereinafter provided. (b) ,Schedule of Rates and Charges (1) The sewage rates and charges shall be based on the quantity of water used on or in the Property or premises subject to such rates and charges as the same is measured by the water meter there in use, plus a base charge based on the size of water meter installed, except as herein otherwise provided. For the purpose of billing and collecting the charges for sewage service, the water meters shall be read monthly and the users shall be billed each month (or period equaling a month). The water usage schedule on which the amount of said rates and charges shall be determined is as follows: Schedule of Rates and Charges W4 2.047 V2M Metered Rates 2 899 2 2010* 2011 2012 2013 (per 100 cubic feet) $1-23 $-1-44 S4-.W $144 $1.98 2.05 2.23 SL43 Base Monthly Charge 518 inch meter $ 3,27 $15.26 $16.94 314 inch meter $7.89 $28 ¢'� $4$;4y 19.94 12L73 IZLO 125 .82 -.57 1 inch meter ez, $35.16 $24$g 26,$7 29.29 31.93 34.82 $39,03 1 1 /2inch meter $68.6 $78.89 $42,54 45.94 095 50.07 54.58 59.49 $97.5 2 inch meter $116.9 $i 34.54 -45r 103.04 112.37 122.48 1133.5 0 8.149,34 3 inch meter $267.0 eat 440 79 1.175.9 0 191.62 S 208.87 227,67 $340.9 4 inch meter $474,49- $545.6 g 401.31 437.43 476.8 $519.71 $6050 6 inch meter $ nom, - 2-34 �' e'er, Wo lg 713.01 777.18 847.13 923.37 Og 8 inch meter $1,892.88 $2,176.81 $1,47 $1,596.38 $1,740,0 5 1 896.65 U-067.35 $2,416.26 10 inch meter $2,952.71 S3,395.62 2 844.42 13-100,42 3 379.46 S3,683.61 $7gq,44 12 inch meter $4,254.3$ $4;g9,?34 $4�198.3 g 4 437.03 $4,836.3 6 5 271.63 JLL46.08 $5,490.72 *Rates effective July 1, 2010- December 31, 2010. Rates for 2011, $5,93 $6,393.04 2012 and 2013 are for full 16,968,41 calendar years. 7,595J7 U-279,17 Unmetered Monthly Rate 24% 2:997 2448 2089 2010* 2011 2012 2013 Per Single Family Residential Dwelling Unit $1s1$ - $2528 $2&06 $30,5 JE.04 36.01 la.25 JIZ.Z8 *Rates effective July I, 2010 - December 31, 2010. Rates for 2011, 2012 and 2013 are for full calendar years. (2) For the service rendered to the City of South Bend said City shall be subject to the same rates and charges established in harmony therewith. (3) In order to recover the cost of monitoring industrial wastes, the City shall charge the user not less than $100.00 per sampling event plus the actual cost for collecting and analyzing the sample(s) as determined by the City or by an independent laboratory. This charge will be reviewed on the same basis as all other rates and charges in this ordinance. (c) Former Wholesale Users. (1) Billing for sewage services to previously designated Class II wholesale users shall be in accordance with the executed intermunicipal contract for wastewater treatment services, but such contracts shall not be extended after their expiration dates due to elimination of the wholesale class of users. This shall not affect authority to enter special rate contracts as provided in Section 17 -29 of this Chapter. Section III. Chapter 17, Article 2, Division 4, Section 17 -23 of the South Bend Municipal Code be and hereby is amended to read as follows. Section 17 -23, Heavy demand surcharge. (a) In order that the rates and charges may be justly and equitably adjusted to the service rendered to users, the City shall base its charges not only on the volume, but also on strength and character of the stronger -than- normal domestic sewage and wastes which it is required to treat and dispose of The City shall require the user to determine the strength and content of all sewage and wastes discharged, either directly or indirectly into the sanitary sewage system, in such manner, by such method and at such times as the City may deem practicable in light of the conditions and attending circumstances of the case, in order to determine the proper charge. The user shall furnish a central sampling point available to the City at all times. (b) Normal sewage domestic waste strength should not exceed ammonia- nitrogen in excess of twenty -five (25) milligrams per liter of fluid, suspended solids in excess of two hundred fifty (250) milligrams per liter of fluid, biochemical oxygen demand in excess of two hundred fifty (250) milligrams per liter of fluid, or phosphorus in excess of ten (10) milligrams per liter of fluid. Additional charges for treating stronger - than - normal domestic waste shall be made on the following basis: Excess Strength of Waste surcharges 2986 - Suspended Solids (Per Pound) $8, 09. 2892 2998 2989 2010* 2011 202 2013 $9 112 $9-124 $0.145 0.146 lQdi2 0.173 JQzM (Concentration Limit 250 mg/l) - Biochemical Oxygen Demand (Per Pound) (Concentration Limit 250 mg/1) - Ammonia ]Nitrogen (Per Pound) $A-67! (Concentration Limit 25 mg /1) - Phosphorous (Per Pound) (Concentration Limit 10 mg/1) $0,772 $0.85 $9.934 ILM 0.193 1Q2LQ 11M 0.254 1.10D 1.199 IL10 1.719 ki .874 2.043 $2.227 *Rates effective July 1, 2010 - December 31, 2010. Rates for 2011, 2012 and 2013 are for full calendar years. (c) The determination of suspended solids, biochemical oxygen demand, ammonia- nitrogen, phosphorus, ammonia and COD contained in the waste shall be in accordance with the latest copy of "Standard Methods for the Examination of Water and Wastewater," as written by the American Public Health Association, the American Water Works Association and the Water Pollution Control Federation, and in accordance with "Guidelines Establishing Test Procedures for Analysis of Pollutants," 40 C.F.R. Part 136. (d) If the City and the user can agree upon the relationship between BOD and COD, then COD may be used for calculating the BOD surcharge, Section IV. Chapter 17, Article 2, Division 4, Section 17 -25 of the South Bend Municipal Code be and hereby is amended to read as follows: Section 17 -25 Review of irate schedule. The sewage rates and charges set forth in the preceding section 17 -21 shall be revised and adjusted for calendar year 2040 2014 to assure adequacy in the cost of maintaining the City sewer works in sound physical and financial condition necessary to render adequate and effective service. However, until such adjustment, the sewage rates and charges in the preceding Section 17 -21 shall remain in full force and effect. Discussions between the City Administration and the Common Council concerning sewer rates for 24W 2014 and thereafter shall commence by June 2009 2013. The Mayor and Common Council retain ultimate authority and responsibility for the operations and finances of the Municipal Utilities. Section V. This Ordinance shall be in full force and effect from and after adoption by the Common Council and approval by the Mayor. Attest: City Cleric Member, South Bend Commode,'ouneil '.f}'ER�� Cowl and of Presented by me to the Mayor of the City of South Bend, Indiana on the day 2 , at _ o'clock I M. City Clerk Approved and signed by me on the - day of M. 2 , at —o'clock Mayor, City of South Bend, Indiana Fifild in C!'arf,%'s. NjU;[C HTM1f,NG, 3 rd READ!�',,'G NOT APPROVED REFERRED PASSED ORDINANCE NO. AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 220 S. TAYLOR STREET COUNCILMANIC DISTRICT #2 IN THE CITY OF SOUTH BEND, INDIANA STATEMENT OF PURPOSE AND INTENT THE CURRENT ZONING IS MIXED USE. I WISH TO CHANGE IT TO SINGLE FAMILY 2. I LIVE AT THE HOUSE AND INTEND TO KEEP IT AS MY HOME. NOW THEREFORE BE IT ORDAINED by the Common Council of the City of South Bend, Indiana as follows: SECTION 1. Ordinance No. 9495 -04, is amended, which ordinance is commonly known as the Zoning Ordinance of the City of ,South Bend, Indiana, be and the same hereby is amended in order that the zoning classification of the following described real estate in the City of South Bend, St. Joseph County, State of Indiana: A LOT OR PARCEL OF LAND 45 V FEET IN WIDTH FROM NORTH AND SOUTH TAKEN OFF OF AND FROM THE ENTIRE LENGTH OF THE NORTH SIDE OF LOT NUMBERED THIRTEEN (13) IN BLOCK NUMBERED THREE (3) AS SHOWN ON THE PLAT OF WILLIAM S. VAIL'S ADDITION TO THE CITY OF SOUTH BEND, RECORDED IN THE OFFICE OF THE RECORDER OF ST. JOSEPH COUNTY, INDIANA be and the same is hereby established as SF2 SINGLE FAMILY AND TWO FAMILY DISTRICT SECTION 1T. This ordinance shall be in fall force and effect from and after its passage by the Common Council, approval by the Mayor, and legal publication. Member of the Common— ouncil Attest: City Clerk Presented by me to the Mayor of the City of South Bend, Indiana on the day of 2010, at o'clock -.m. Approved and signed by me on the .m. -M 4 REFERRED PASS C-0 City Clerk day of- 2010, at o'clock Mayor of the City of South Bend, Indiana `Mica F ME CITY CLZ:,.Y,, Bvi Date Filed Application N Date received by the Area Plan Commission I (we) the undersigned make application to the Common Council of the City of South Bend, Indiana to amend the zoning ordinance as herein requested. 1) The property sought to be rezoned is located at: 220 S. TAYLOR STREET 2) Name and address of property owner(s) of the petition site: JEAN DIBBLE 220 S. TAYLOR STREET SOUTH BEND, IN 46601 3) Name and address of contingent purchaser(s), if applicable: Name Full Address and Phone Number 4) It is desired and requested that this property be rezoned from; MU MIXED USE DISTRICT to; SF2 SINGLE FAMILY AND TWO FAMILY DISTRICT 5) This rezoning is requested to allow the following use(s): TO BE USED AS A SINGLE FAMILY RESIDENCE 6) Attached is a copy of (a) legal description of the property; (b) a statement of purpose and intent; (c) a list of names and addresses of all property owners and the tax key numbers for all properties within 300 feet of the petition property; and (d) addressed, stamped envelopes for all property owners within 300 feet of the petition property (e) a location map, if available, drawn to scale, which includes street names, printed in 8' /z" x I I" format. c Signature(s) of All Property owner(s) / r h orAt-t—omey for all l2ropegy Owner s PETITION PREPARED BY: CONTACT PERSON: (If different) Name: JEAN DIBBLE 224 S. TAYLOR STREET SOUTH BEND, IN 46601 574 - 287 -8130 jdibble @nd.edu Hold CITY GL Area Plan Commission of St. Joseph County 1140 County -City Building South Bend, Indiana 46601 John W. Byorni Larry P. Magliozzi Executive Director Assistant Director Phone 574 235 -9571 www. stiosephcountyindiana .com /areaplan Fax 574 235 -9813 May 19, 2010 The Honorable Council of the City of South Bend 4th Floor, County -City Building South Bend, IN 46601 461 RE: A proposed ordinance of Jean Dibble to zone from MU Mixed Use District to SF2 Single Family and Two Family District, property located at 220 S. Taylor Street, City of South Bend - APC# 2553 -10 Dear Council Members: I hereby Certify that the above referenced ordinance of Jean Dibble was legally advertised on Thursday, May 6, 2010 and that the Area Plan Commission at its public hearing on Tuesday, May 18, 2010 took the following action: Upon a motion by John DeLee, being seconded by Robert Hawley and unanimously carried, the proposed ordinance of Jean Dibble to zone from MU Mixed Use District to SF2 Single Family and Two Family District, property located at 220 S.Taylor Street, City of South Bend is sent to the Common Council with a favorable recommendation. Several of the structures on this same block have been converted back to single - family uses. It is appropriate at this time to allow for the existing structure to continue to be used as a single- family residence. Such a use is compatible with the adjacent office, single - family residential, and multi - family residential uses. The deliberations of the Area Plan Commission and points considered in arriving at the above decision are shown in the minutes of the public hearing, and will be forwarded to you at a later date to be made a part of this report. Sincerely, V I !�, hn W. Byorni JWB:jsc Attachment CC: Jean Dibble Rome Serving South Bend, Lakeville, New Carlisle, North Liberty, Osceola, Roseland and St. Joseph County, Indiana Staff Report APC # 2553 -10 Owner: lean Dibble ]Location: 220 S. Taylor Street Jurisdiction: City of South Bend Requested action: The petitioner is requesting a zone change from MU Mixed Use District to SF2 Single Family and Two Family District to allow an existing house to continue to be used as a single- family residence. )Land Uses and Zoning: On site.' On site is an existing structure that is currently being used as a single - family residence. North: To the north is an insurance / investment planning office, an attorney's office, and three single- family residences zoned MU Mixed Use District. East. To the east is AIDS Ministries, multi - family residential, and a single - family residence all zoned MU Mixed Use District. South: To the south are three single- family residences zoned MU Mixed Use District. West: To the west is a parking area zoned MU Mixed Use District and a single- family residence zoned MF 1 Urban Corridor Multifamily District. District uses and development standards: The SF2 Single Family Residential District is established to protect, promote and maintain the development of single family dwellings and two family dwellings in the urban core of the City of South Bend as well as to provide for limited public and institutional uses that are compatible with an urban residential neighborhood. The availability of public facilities (e.g., public water, public sanitary sewer, storin sewer, natural gas, electricity, telephone, etc.) is required for development within this district. Site plan description: No site plan is required for rezoning to the SF2 District. An existing structure is located on the site which is currently being occupied as a single - family residence. Zoning and land use history & trends: Prior to the 2004 update of the City Zoning Ordinance, the entire block was zoned "B" Residential. The prior use of the existing structure was an attorney's office. In July 2009, the City Council denied a special exception request to allow this property to be used as a group residence. Traffic and transportation considerations: Taylor Street is two lanes. The site is also adjacent to a north -south and an east -west alley. Utilities: The site will continue to be served with municipal sewer and water. Additional information: (Agency comments) Both the City of South Bend Department of Community and Economic Development and the St. Joseph County Historic Preservation Commission supports this rezoning petition. The City Engineering Department has no objection. Jean Dibble #2553 -10 Page I of I s Criteria (per IC 36 -7 -4 -603): 1. Comprehensive ]Plan: ]Policy Plan: Cily Plan South Bend Comprehensive Plan November 2006. H 2.6 Encourage homeowners to maintain their homes. Rezoning to the SF2 District will allow the homeowner to continue to utilize the property and maintain it as a single- family residence. Land Use Plan: The Future Land Use Plan shows this area as Mixed Use and High Density Residential. 2. Current conditions and character: The site is occupied by a two -story residential structure with a fenced in rear yard. 3, Most desirable use: The most desirable use of the property is as a single- family residence or those permitted uses within the MU Mixed Use District. 4. Conservation of property values: The surrounding property values should not be affected. 5. Responsible development and growth: It is responsible development and growth to allow the existing structure on this site to continue to be used as a single - family residence. Recommendation: Based on information available prior to the public hearing, the staff recommends that this petition be sent to the City Council with a favorable recommendation. Analysis: Several of the structures on this same block have been converted back to single - family uses. It is appropriate at this time to allow for the existing structure to continue to be used as a single - family residence. Such a use is compatible with the adjacent office, single- family residential, and multi- family residential uses. Jean Dibble #2553 -10 Page 2 of 2 Jefferson er Mu U W Mu Wayne s0 lulu E Rqlj ro 3 Jefferson MU Mu Mayne Mu '" GB Mu I MAP, p'- �"i er Mu U W Mu Wayne s0 lulu E Rqlj ro 3 Jefferson MU Mu Mayne Mu L Q GB Mu it 08 l Mu Rezoning from: 'TM U'T MIXED USE DISTRICT to 'TSF2TV SINGLE FAMILY & TWO FAMILY DISTRICT Zoning Key SOUTH BEND "SF2' SINGLE FAMiLYAND TWO FAMILY DISTRICT SOUTH BEND "MFi" URBAN CORRIDOR MULTIFAMILY DISTRICT SOUTH BEND "MU" MIXED USE DISTRICT SOUTH BEND "GB" GENERAL BUSINESS DISTRICT N A" w< S 1 inch = 150 feet ■ _' l Mu OB Date Filed Date received by the Area Plan Commission Application No. I (we) the undersigned make application to the Common Council of the City of South Bend, Indiana to amend the zoning ordinance as herein requested. 1) The property sought to be rezoned is located at: 220 S. TAYLOR STREET 2) Name and address of property owner(s) of the petition site: JEAN DIBBLE 220 S. TAYLOR STREET SOUTH BEND, IN 46601 3) Name and address of contingent purchaser(s), if applicable: Name Full Address and Phone Number 4) It is desired and requested that this property be rezoned from; MU MIXED USE DISTRICT to; SF2 SINGLE FAMILY AND TWO FAMILY DISTRICT 5) This rezoning is requested to allow the following use(s): TO BE USED AS A SINGLE FAMILY RESIDENCE 6) Attached is a copy of (a) legal description of the property; (b) a statement of purpose and intent; (c) a list of names and addresses of all property owners and the tax key numbers for all properties within 300 feet of the petition property; and (d) addressed, stamped envelopes for all property owners within 300 feet of the petition property (e) a location map, if available, drawn to scale, which includes street names, printed in 8!/2" x I I" format. r Signature(s) of All Property owner(s) or Attomgy for all 2Loge= Owner(s) PETITION PREPARED BY: CONTACT PERSON: (If different) Name: JEAN DIBBLE 220 S. TAYLOR STREET SOUTH BEND, IN 46601 574- 287 -8130 jdibble @nd.edu Ho ty, w. i L.ti3 CITY GL y