HomeMy WebLinkAbout18-21 Confirming Property Tax Abatement Petition - Wharf Partners, LLC SpUTH
Filed in Clerk's Office
w y
E"c` a� APR 18 2016
x x
1865 __
E KAREEt AN'r6 LER
CITY OF SOUTHBEND!
"TYCLERK.SOUTH BEAD, IN
COMMUNITY INVESTMENT
JAMES MUELLER, EXECUTIVE DIRECTOR
April 18, 2018
Council Member Gavin Ferlic, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Real Property Tax Abatement Petition for: Wharf Partners, LLC
Dear Council Member Ferlic:
Please find attached the Department of Community Investment's report on a real 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 construction of
a mixed use building, located at 320 East Colfax Avenue, South Bend.
The report contains the Department's findings relative to the above petition. The total cost for the
construction (Phase I) is estimated at $19,350,000 over a two year period. The project meets the
qualifications for a six-year real property tax abatement and a representative from Wharf Partners,
LLC will be available to meet with the Committee on Monday,April 23, 2018.
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 235-5823.
Since ely,
Davie J Bucke yer
Director of Business Development and Economic Resources
D.-mNa..J.BUCKENME)TR ALKEltiA ALDRIUCE PAMELA MM-ER 'I'M GORCORM
BUSI\FSs DEVELOPMENT E\CAGE\IE:\T&ECo\oT11C E,\1PmkmRAIFNT NEIGHBORHOOD DF.vmwnIErT PI,\,\,N Nc&CO\i.Nwm Y RFsoL'RCFs
EXCELLENCE ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT
1400S County-City Building 227W.Jefferson Blvd. South Bend,Indiana 46601 p574.235.9371 www.southbendin.gov
SUBSTIUTE BILL NO. 18-21
RESOLUTION NO.
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
320 East Colfax Avenue, South Bend, IN 46617
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A SIX (6) YEAR REAL
PROPERTY TAX ABATEMENT FOR
COMMERCIAL PROPERTY LOCATED AT
Wharf Partners, LLC
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas
for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as 320 East
Colfax Avenue, South Bend, Indiana described as follows:
Lots 2 of the Cascade Minor Subdivision recorded on April 12, 2018 as Document No.
1808428 in the office of the Recorder of St. Joseph County,Indiana
and which has Key Number 018-5001-000204, and be designated as an Economic Revitalization
Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing
before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the
area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such
designation is for real property tax abatement only and is limited to four (4) calendar years from
the date of adoption of the Declaratory Resolution by the Common Council.
Year 1 - 100%
Year 2 - 100%
Year 3 - 100%
Year 4 - 100%
Year 5 - 100%
Year 6 - 100%
SECTION II. The Common Council hereby determines that the property owner is qualified for
and is granted real property tax deduction for a period of six (6) years as shown by the schedule
outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 and further
determines that the petition, the Memorandum of Agreement between the Petitioner and the City
of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal
Code of the City of South Bend and Indiana Code 6-1.1-12 et seq.
SECTION III. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approved by the Mayor.
Tim Scott, Council President
South Bend Common Council
Filed in Clerk's Office
APR 18 2018
KAREE10AH FOWLER
TAX ABATEMENT REPORT CITY CLERK,SOUTH BEND,IN
TO: SOUTH BEND COMMON COUNCIL
FROM: DANIEL BUCKENMEYER
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
Wharf Partners,LLC (Phase 1)
DATE: April 18,2018
On Monday April 16`x',2018,a petition from Wharf Partners,LLC was received and subsequently
filed with the City Clerk for real property tax abatement consideration for property to be located at
320 East Colfax Avenue, South Bend, IN 46617. 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 Investment 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 Investment has reviewed the petition(a copy of which is attached),
investigated the area,and makes the following report.
PROJECT SUMMARY
➢ Construction of the approximately 77,000 sq. ft. mix use building containing
commercial and residential space.
➢ The proposed construction will be located on the riverfront land located within the
Central Business District.
➢ The high quality mid-rise building will promote further confidence in the real estate
investment community and spur additional investments,especially in the East Bank
Village.
➢ The project is expected to create approximately 20 indirect jobs in the next three
years.
➢ $19,350,000 private investment in the buildings construction.
➢ Estimated taxes being paid during the six year abatement period — S1,468,000
(residential property)
➢ Estimated taxes being abated during the six year abatement period—$432,000
EMPLOYMENT IMPACT
Per the petition,it is estimated that the total project will:
i
➢ Create sixty(20)indirect jobs
i
1
ABATEMENT QUALIFICATION j
i
1
1. A review of the tax abatements previously granted, finds that the petitioner has not
been granted or associated with any previous abatements.
2. The Area Plan Commission has reviewed the petition and finds the property to be properly
zoned for the proposed project.
3. A review of the South Bend Redevelopment designation areas finds that the property is located
in the River East Development Area.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications for a(6)six-year real property tax abatement under section 2-84.2,Tangible Real
Property Tax Abatement.
t
f
i
i
I
Filed in Cl70ffice APR 1
KAFt`EMAH FOWLER }
CITY CLERK.SOUTH BEND,Rd
a COO000 o 000 000(N cli
� C:) C)00
} `n
a°o a
ui
LU Lu N N
CX3
pp �� o�0000 a 000 000 °- 000000 0
0 0 o rn o o N W 0 C.0 0 0 0 0
(� 0 10 0 0 �n O C o a OD co co m m co m
i UJ
0 0 N N O X 'ct V V a0
00 r r W vvvvvv to
\i
V:� 10 d r N N N N N N V
i N N m
iL
CY. Uj
U �
o`r 0
ooO OOO 000 0000
C 3 o yl o o Lo O o
00 00 r
�� N
N N
GO o N0000 o OOO OOO N M� 000000 O
i O O O � O C Z H a
Q C14 cli
p0 C N N
� U
� I
p
e N O O O O o O O O O O O W y 0 0 0 0 0 0 O
w O ( O O O O O 0 0 0 0 ED)0 O
cn o y o o to 0 0 0 0 0 0 0 0
U } O O N N N N N N N N N
� oo v, n n Q nrnnnn c�
a Q v v LO c
J c x N N
3
i ~ } 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0
U pQ o o oo rn o o °1 W °' 000000 0
p� Z o o ail oo LC) o o � Z x OOOOOO o
+�+ O 00 � � 000 r- r- E°et' r,n� nrin M
^(a O m N N U m lI
CL
4. a O x j
W
p a W x q I
L m W __ � W
yam., ` 7 C 0000 o O 000 000000 O O
3 O O N O O Q) 't 0 O O x
p p � E 0 O in arnrno 0 C Z o W 000000 O 2 y
~ E m o0 00 c co2�� � � a ~ � n � � rN-r M r-
O .0 v v_ L F aci
U Q N N t
O U
N
a =
c
�FO o 000 000 000000 o cY
m t u) H W
7etS Ul X~
jU> W O C
p W O
N N W
> U E CO
N U q >
q
,Op p N(h 7 Lo(O W y
q
> q d c o } q C N
Z O a 0 0 m W q
N C R O O O O O c W
Y E co 0 0 H O
x E ° q j
q j O
U V
H W W
W O
> &W
L
N d
N C L
O O U
> O W W C
c a E
-O m m W
.. m ?> q m c V m U 4)
v x x o v
j m H W W W m d co U Y
>>
'O;Q q I-r l W q .� @ q W
Mmd W x W mm �m S]
W r0 m j
mgEQ c H 'D > - W
N MZ a ° 2z �iioc� E
a �a< W ,) m X75
E
LLI
} q 7 q q
`
N � q_
co UmJ Q (D-1 U 3
BILL NO. 18-19
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
320 East Colfax Avenue, South Bend, IN 46617
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
(6) SIX-YEAR REAL PROPERTY TAX ABATEMENT FOR
COMMERCIAL PROPERTY LOCATED AT
Wharf Partners, LLC
WHEREAS, a petition for real 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 portions of the property located at 320 East Colfax Avenue, South Bend, Indiana
which is more particularly described as follows:
Lots 1, 2 and 3 of the Cascade Minor Subdivision recorded on April 12, 2018 as
Document No. 1808428 in the office of the Recorder of St. Joseph County,
Indiana
and which has Key Number(TBD),and be designated as an Economic Revitalization Area under
the provisions of Indiana Code 6-1.1-12.1 et seg., and South Bend Municipal Code Sections 2-76
et seg., and;
WHEREAS,the Department of Community Investment 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 Investment 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 that the Petition for Real Property
Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the
requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement.
SECTION II. The Common Council hereby determines and finds the following:
A. That the description of the proposed redevelopment or rehabilitation meets the
applicable standards for such development;
B. That the estimate of the value of the redevelopment or rehabilitation is reasonable
for projects of this nature;
C. That the estimate of the number of individuals who will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result
from the proposed described redevelopment or rehabilitation;
D. That the estimate of the annual salaries of those individuals who will be employed
or whose employment will be retained by the Petitioner can be reasonably expected
to result from the proposed redevelopment or rehabilitation;
E. That the other benefits about which information was requested are benefits that can
be reasonably expected to result from the proposed described redevelopment or
rehabilitation; and
F. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requirements of Indiana Code § 6-1.1-12.1-3.
SECTION III. The Common Council hereby determines and finds that the proposed described
redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the
Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement
Consideration and the Memorandum of Agreement between the Petitioner and the City of South
Bend, and that the 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 § 6-1.1-12.1-3.
SECTION IV. The Common Council hereby accepts the report and recommendation of the
Community Investment Committee that the area herein described be designated as an Economic
Revitalization Area and hereby adopts a Resolution designating this area as an Economic
Revitalization Area for purposes of real property tax abatement.
SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2)
calendar years from the date of the adoption of this Resolution by the Common Council.
SECTION VI. The Common Council hereby determines that the property owner is qualified for
and is granted property tax deduction for a period of(6)six years as shown by the schedule outlined
below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17.
Year 1 - 100%
Year 2 - 100%
Year 3 - 100%
Year 4 - 100%
Year 5 - 100%
Year 6 - 100%
SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of
this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana
Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public
hearing before the Common Council on the proposed confirming of said declaration.
SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Tim Scott, Council President
South Bend Common Council
Filed in Clerk's Office
APR 18 2018
KAREEMAH r<JWLER
CITY CLERK SOUTH PTkin IaJ .
�' t( t�l1CL�1tI� `l�®T(' I1E�t �Cl� iv 's I" 'iJ`� f►C'„ C'3L'
Petition must include a$250 Alin '
� 9fee payable to the City Cler;r's Office or online via the City's tvebsite at
6
trip://soufhbendin.gov/government/content/ton-abatement before processing con be complete AN m � 1
General Information Project Name Project Number( I
Legal name as registered withSecretoryof Wharf Partners LLC KA 1' f_l `t�rl_t i
itate
Business structure tiff ttfft"t ttk"U f DOND
Limited Liability Company
I I
1
Company wabsite
atthecascada.com
Proposed Project Information
Proposed project address 320 East Colfax Avenue Parent company name NIA
City,state,Zip South Bend, IN 46617 Legal owner Wharf Partners LLC
Site acreage or acreage required ..-ape-half acre Is the real estate owned or owned
Square feet offocility --77,000 sq ft If leased by whom
Primary Contact Information
Primary company contact name Frank Perri "fle Managing Member
Address of company contact P O Bob 148 Phone 574 532 5646
City,State,Zip South Bend,IN 46624 Email fperri @earthdesignsred.com
Senior Official Information
Company senior official name Frank Perri T'tle Managing Member
Address of company contact(if different from Phone
ahnve
City,State,Zip Email
Consultant Information/Agent
Hired business consultant/agent name Consultant release(t/N)
Address Lccal economic development partners
_ approval y N)
City,State,Zip Email
Project Overview
Brief description of your
company,project,and why the Wharf Partners LLC was formed in 2011 as a single asset entity,in order to develop the last
property Is necessary for remaining vacant parcel of riverfront land located within the Central Business District in the City
economic growth of South Bend.The development is a mired use project containing residential and commercial
uses,constructed in 2-3 phases and totals an investment in excess of$43,000,000.
The high quality mid rise buildings planned for this key site,will sow confidence in the
real estate investment community and spur additional investments,especially in the East Bank
Village neighborhood,which primarily consists of lower density,lover quality structures.
This development will also help validate the current public investment strategy being made by
the City of South Bend and the State of Indiana in creating quality of place projects.These
public and private investments provide a platform for growth,resulting in new opportunities for
both residents and the business community.
Certlaed Technology Park appropriate No
Is the project In a Tog Incremental Finand:tg
(T a If q which?
Yes, River East
certify that the Building Permit has not bean Number of residential units created by
Issue 15-20 1s:phase. oD-80(alt phases)
If this Is a petition for personal property tag ntatemer,t,has N/A
the equipment been insYiled
Investment Details
Public Infrastructure needs(Off- H. any 501 f•ndin3 been what Is the value of any equipment being purchased in What is the.alue o'any equipment being
site of project in dollars) r_ceivsd? Indiana for the project? purchased from cut of state fer the project?
None � _N°
New Project Investments
Calendar Year 2016 2037 2018 2019 2020 2021 2022 2D23
Land Acquisition $1,050,000
Building Lease Payments Ie
Building Purchase Costs
New ouildin3 construction $7,300,000 S 10,000,000 $1,000,000
Enlsting Building Improvements
New Machinery&Equipment
Special Tooling/Retooling
New Furniture/Fbaures
New Computer/IT Hardware
New software
On-site Rail Infrastructure
On-site Fiber Infrastructure
TOTAL so,
$0
Full-i ime Permanent Indiana-Resident Positions by Calendar Year
Calendar year Jobs retained Total hourly Cumulative it of net NEW full time Hourly average wage,of/o Total training Total n to be
wage w/o permanent jobs created at project benefits or bonuses,of erpendlture- trained-not
fringe ar cumulative net new jobs not cumulative
bonuses cumulative
2016
2017
2018 1 ?5
2019 2 1 d
2020 - �20 14
2021
2022 �I
2033
2024
2025
2026
2027
Provide hourly Wage information for new employees in thefollowing positions.
Full time Port time
Laborers
Technical
Managerial
Administrative
W o cud e t e IndiviLluol responsible for caor matmg with
Wori(One on recrurtin ?
Does your company have an EEO hiring policy? Are you an EEO employer?
Please list the number of full time and part time minority and/or female employees for each of Please describe your commitment t�
the last three years: diversity and inclusion by detailing your
V^=r I outreach and recruitment efforts for the last
three years as well as current polides.
Full Time Part Tire FUIITlr.:e Part T,,—.e Full Time Part Time
Black
Hispanic
Asian
Indian
Female
Other
Complete below for Real or Personal Property Tax Abatement only.
Please sign for all requested incentives.
Public Benefit Item:
Information is required on both the construction companies and the
companies which will provide materials purchased for this project.
Please complete the table below with the appropriate information. If es or Qualify Earned points Available Points
you qualify for the points,please enter the full amount of available (yes No)
points.
1 Construction Related IContractors):
A. Employ Local Companies(7596) yes 20 20
B. Purchase Materials from Local Companies(75%) yes 20 20
C, Require Employees vs.Independent Contractors yes 19 19
D. Require Prevailing Wage(Davis Bacon) no 22
E. Require Health Benefits no 22
F. Require Pension Benefits no I 18
G. Maintain Affirmative Action Plan yes 20 20
Sub-total Construction Related: (�J 79 141
2 Wage&Benefit Related(Owner):
A. Pay Target Wage Levels I yes 33 33
B. Provide Health Benefits }'es l 34 34
C. Provide Pension Benefits I no I 29
D. Provide Training yes 1 28 28
E. Provide Child Care I no 15
F. Provide Transportation Asslst3nce no I 14
G. Provide Employer Assisted Housing program no 9
Sub-total Wage&Benefit Related: I 95 162
3 Workforce Related:
A. Create New Jobs yes 42 42
B. Retain Existing lobs yes Y1 41
C. Maintain Affirmative Action Plan yes 35 35
D. Provide Targeted Hiring Preference no 34
Sub-total Workforce P.elated: 118
4 Support a Municipal Facility:
A Support a SB Municipal Facility(donations to the _ 84
zoo,conservatory,museum,etc.) yes E-
Name of Facility Parks&Venues
Sub-total Municipal Facility: N 84
Sub-total from Above: 376 "O
The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City
Of South Bend for a real and/or personal property tar,abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and
South Bend Municipal Code Set.2-76 et seq.,for this petition state the above.
Submitted BY: Frank Perri Date: April 12,2018
For Staff Use Onitl Selovi This Line
What Is the current assessed value? Real Property: Personal Property:
What Is the projected assessed value? Real Property: I Personal Property:
What is the tax hey number for this project? 1
What Is the six cilgit NAILS code?
Please ottach a Google map and street view of the location.
Please list the amount of real and personal property taxes Real Property Taxes: PersonalPropartyTaxes:
paid for the last five years vrhen applicable.
Year one
Year Two
year Three
Year Four
Year Five
Please fill out the folloLving Public Benefit summary information and add to total from above.
Y or N Points Points
Public Benefit Item:
Project Related:
5 A. Redevelop a Site that has Special Needs — L 49
B. Develop Based on Local University Research I 35
C. Achieve a Physical Element of a Plan � II 36
L _
Sub-total Project Related: I I 120
6 Super Size Projects(point values are cumulative):
A. 100%to 199;. .2 I 25
B. 200%to 2991. I I 68
C. 3004.to 3995. 65
D. 4005'.and Over J 52
Sub-total Super size Projects: 0 210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing or Upgrading 14
B. Pay for 26-50%of Extension Cost 26
C. Pay for 51-75%of Extension Cost 39
D. Pay for 76-100%of Extension Cost I 52
Sub-total Infrastructure Related: 131
Total from Applicant Section: 3 7 539
Total from Staff Section: �— 6 461
Total Public Benefit Points: 1�0
_ _ Plea i h 8 tr�t
EMENT OF BIE-NEHT 20 PAY 20 26'1~ dr y RfIE,AL ESTATE 2il�MURZ®�9E�If3ENTS 2
State Form 51767(R6 110-14) Al 1 1 2010 F02M SS-11 Real Property
Prescribed by the Department of Local Governme t Finance
PRIVACY NM MICE
This statement is being completed for real property thatquallffes under the t6�dWft�q]'q ah"Y 7,?t� one bog): Any intormauon conceming me cost fi
/'d Redevelopment or rehabilitation of real estate improvements(IC G 1`I-�2`9` °` `��`h"per� - ' of me progcrty and specific salaries
(_1 esidentialiy distressed area(IC 6-1.1-12.1-4.1 r C5'i til._�rl�;U t H h; NID� i!\l f paid to In ividual employees by the
_ -•,•_ raperiy owneris wnndenlial per
INSTRUCTIONS: PC 6-1.1-12.1-5.1.
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in malring its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be
submitted to the designating body BEFORE the redevelopment orrzhabiNation ofreal piopedyfor which the person wishes to claim a deduction.
2. The statement of benefits farm must be submitted to the designating body and the area designated an economic revitalization area before the initiation or
file redevelopment or rehabilitation for which the person desires to claim a deduction.
3. To obtain a deduction,a Form 3221RE must be flied with the County Auditor before May 10 in the yearin which the addition to assessed valuation is
made or not later than thirty(30)days ah'erthe assessment notice Is malted to the property ownerif it was malted afterApr110. A property owner who
felled to file a deduction application within the prescilbed deadline may file an application between March 1 and May 10 of a subsequent year.
4. A property owner who files forthe deduction must provide the CountyAuditor and designating body with a Form CF-1/Real Property, The Form CF-1/Real
Properly should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
iC 6-21-12.P-5.1(b)
5. For a Form S8-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each
deduction allowed. For a Form SE-1/Real Property that Is approved prior to July 1, 2013,the abatement schedule approved by the designating body
remains in effect. IC 6-1.1-12.1-17
Namaofttt'A F I
Address of faxdpayer(number and street,ci�slats and 74P code)
3(e. 7 /4
Name of contact person Tie lapho a number E- ail address / GJ��
Name of do Ignating=1i13� f U':[t�fJ1 (ieyln-A o ••o•o a 1✓p11,1MUiJ GI Resolutfonnumber
Location of property I County, I DLGF taxing disbrict number
O� Su6Al�lSio,y Sy . 500P h V OZ(v-S� for
Descriptlon of real property improvements,redevelopment,orrehebllliation(use additfonalsheets irnecesswy.) FsGmated start date(month,day,year)
S—J_lt4 _7) ST�� � ►� Dit�l� w uMp�aG v,tO 64446c
Cc' i Irk INL� P l�}C J � SE'Jai. 1► U�r73P� C��rel��56 �^ .6 Esgmale completion date(month,day,year!
SE Sp ��� ltv� vpE Cd;�rp0mmjiwn Itur,7't-F,gn�r 24A,&CjgL J u) 3) Zc�1
ESTIMATE OF • AND RFSJLl'OF-PR,0POSt0 PROJECT
Currenlnumber- Salaries Number retained Salaries Numberaddillo Ssiaries
--,7-72 Mlturrivit�
4.
ESTIMATED 7(jIAL COSTAND VALUE OF PROPOSEr,PROJECT
REAL ESTATE IMPROVEMENTS
v COST ASSESSED VALUE
Current values 10
Plus estimated values of proposed project 3X01 61M
Less values of any property being replaced
M values upon completion of project
CONVERTED o PROMISED :
id waste converted(pounds) f`) 7 Estimated hazardous waste converted(pounds) Yv
Ot
��rdjolv': •
i hereby certiry at the represe •ons in this statement are true.
Signature of aut d r - enlati a Dais signed( nth,daK_�_o ear)
I I I
Prin ame of out r ed rap esentallw Title L�G4
Page 1 of 2
FOR USE OF DESIGNATING BODY
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed calendar years=(see below). The date this designation
expires Is
B. The type of deduction that is allowed In the designated area Is limited to:
1.Redevelopment or rehabilitation of real estate Improvements ❑)es ❑No
2.Residentially distressed areas ❑Yes ❑No
C. The amount of the deduction applicable is limited to$
D. Other limitations or conditions(specify)
E. Number of years allowed: ❑Year'I ❑Year 2 ❑Year 3 ❑Year ❑ Year 5 (*see below)
❑Year 6 ❑Year 7 ❑Year 8 ❑Year 9 ❑ Year 10
F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1=177
❑Yes ❑No
If yes,attach a copy of the abatement schedule to this form.
If no,the designating body is required to establish an abatement schedule before the deduction can be determined.
We have also 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 title of authorized member ofdostgnating body) Telephone number Date signed(month,day,year)
Printed name of authorized member of designating body Name of designating body
Attested by(signature and title of attester) Printed name of attester
If the designating body limits the time period during which an area Is an economic revitalization area,that limitation does not limit the length of time a
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17.
A. For residentially distressed areas where the Form SB-1/Real Property was approved prier to July 1,2013,the deductions established In IC
6-1.1-12.1-4.1 remain in effect.The deduction period may not exceed five(5)year. For a Form SB-1/Real Property that is approved after June 30,
2013,the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
(10)years. (See IC 6-1.1=12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SBA/Real Property was approved prior to July 1,2013,the abatement
schedule approved by the designating body remains In effect.For a Form SB-VReal Property that Is approved after June 30,2013,the designating
body Is required to establish an abatement schedule for each deducticn allowed.(See IC 6-1.1-12.1-17 below.)
IC 6-1.1-12.1-17
Abatement schedules
Sec.17.(a)A designating body may provide to a business that is established in or relocated to a revitalizatlon area and that receives a deduction under
section 4 or 4.5 of this chapter an abatement schedule based on the following factors:
(1) The total amount of the taxpayer's Investment in real and personal property.
(2) The number of new full-time equivalent jobs created.
(3) The average wage of the new employees comparad to the state minimum wage.
(4) The Infrastructure requirements for the taxpayer's investment.
(b) This subsection applies to a statement of benefits approved after June 30,2013. A designating body shall establish an abatement schedule
for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of
the deduction. An abatement schedule may not exceed ten(10)years.
(c) An abatement schedule approved for a particular taxpayer before July 1,2013,remains In effect until the abatement schedule expires under
the terms of the resolution approving the iaxoayer's statement of benefits.
Fled in Cle'ric's C0108
APR 18 2131i, i
i'\AFIEBi'SAH ILCOei.-ER
Page2of2 { f%r!b`f!_ 4�.�,i7lFii�t? i�.l[� !
320 east colfax, south bend-Bing Page 1 of 1
LV bing map:.
Notes 933 i ri°wx't S:
-- ----- z
ilkL-'J ark`•+ie¢k,�
PARK AVENUE d RTHEAST SOUTH.&ENO Z
V1 N
v Cedar Sl
y,w = z
South Bend
Z E to Salle Ave
�. _
E Colfax Ave 20! W US-20-St
_ Y C
E)effeesonBlvd G
L in Clerk's Office WWesteinAve
st°ale,• 3
ESouth St
APR 18 2018 iE EDGEV/A %� akaAW Sample St,:ijj E Sample St 4\REE1,A FOWLER t -
I ERK.SOU i 4I BEND, Vb,n,l Lw—S, BJtb Atc e.hC xr.CP3t3 HC4E
Carrturo's at .,
Mom - n
r� 2
' Fire Arts O U
Polois il ✓ Circa Am
zoyafe E Colfax Ave E Colfax Ave Gallery
z
z Inspire Me
to
a fi Purple Porch Co-ap t-' _
z
L a-.
DoubleTree by Q to
Hilton Hotel Sou... —
ar Ti Cafe Navarre
E Washington St z E Washington St z ,
rk 1 v'
South Rend = c
Museum of Art
East Rani
Emporium
Derue Ct Century
Center Z
iFr St Mseph
9� Counry So dayne
Chicory Cafe N
� Tt,t'rr.
hrriny John VSl
c
'o South Bend
to
r Comrnuniry
School Co. ! Ho,sord Acr•.r"
C N _
rn -
0 Howard Po
srf
O
1
r.+
3n Thoi r't E Wayne St _
tqurant'-- -
p Bing ?esa+etERE
https://www.bing.com/search?q=320+east+colfax,+south+bend&src=IE-TopResult&FOR... 4/18/2018
E, ll
mw
MLU
co
to LIX
COLFAX AVENUE (82.5- R/W) lg;!
3w
11-O-W-E
-.'W-E(R) 33• kk
B60Y 301.32' 111.46' R/4, E g 3 03
24
+
S o
04 C-4 X WOW E
fg,
ZiE
0
"6
C)
cj E MI
+
Lj ir
2E 0-, 4k
zi k + AS
W
C'j in
42.1 kiww 5342'
N Wu.,C\. Mir
I i
C)u C) 0 u- b
ZL,'u
n j f2
�-4
L
r°
8
CL 0: CL z 11 �Vl.\ %
< -0
0.,
FS,
d.,n <Q Lo
Z-0-0 Cn
Ld
C,
Jd
mC)=
LLJ Z5
U
Do
Poi
CC
s
Est
v
NUN.. 2
how
Ofi,58!1.81 H
�"..ra v�•ron�wr�vw ��
..«pv�wwdwe•.w s wm �CV
m
m
o
CQ
70 eggs
sad. m
m 1.'(s )j s
C;
Go
o
p W
CL
Waa _ 33'Soo s �
° a
C!�n U
HM=l7�
o
GG F 3 w y
cj�-
1+1p
�1
p�+- O GdR- � -; mory :mod °a L^ stud
Fi
a ° Wag �S55 oB° m_ `a G'y
W N� �� dE���� ��b 5�ti s
V m o oe� �2R Y s 3 AS
LLJ C.
° O 0 Simi YR= gRQ "� Cg=
o � R
Q
°a
Z W -
m
W z l
U
Q CC) —' ��
v, �° 0 _
� 1 ;
a� ;z o
< G^.
C Ld
F
C
Filed in Clerk's Office
r--
MAY 092018
MEMORANDUM OF AGREEMENT
KAREEI�ItiH FOWLER
CITY CLERK,SOUTH REND,IN
This Memorandum of Agreement (Agreement) dated as of May 151, 2018, serves as
confirmation of a commitment by Wharf Partners, LLC (the "Applicant"), pending a May 14`h, 2018,
public hearing, to comply with the project description,job creation and retention (and associated wage
rates and salaries) figures contained in its petition, Statement of Benefits, and attachments and this
Agreement(Commitments).
1. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a
Confirmatory Resolution by the South Bend Common Council (the "SBCC"), the City of South Bend,
Indiana (the "City") commits to provide a (6) six-year real property tax abatement for the Applicant,
based on the Applicant's commitment set forth in its Application. The Applicant commits to a capital
expenditure of$19,350,000 associated with the construction of the mix use building located at 320 East
Colfax Avenue, South Bend, IN 46617 (Key Number—018-5001-000204). This real property project will
create at least sixty(20) indirect jobs within three years.
2. Potential Impact of State of Indiana Circuit Breaker Law: The parties note that the calculations
regarding the effect of the tax abatement in question are based on the State of Indiana's tax rates currently
in effect at the time of entering into this Memorandum of Agreement. The complete impact of the State of
Indiana's Circuit Breaker law on the City's property tax revenues is unknown at this time. To assure that
the City receives the projected amount of property tax revenues, which amount was calculated at the time
of granting the tax abatement for the Applicant, the parties to this Memorandum of Agreement agree to
adjust the length of the abatement and/or the percentage of deduction if the tax revenues due under the
Circuit Breaker Law are less than what was initially projected and represented to the Common Council,as
evidenced by the supporting documentation submitted to the Council with the Applicant's tax abatement
petition. However, in no case will the adjustments cause the property taxes to be paid to exceed the tax
payments as initially projected and represented to the Common Council by the aforementioned supporting
documentation.
3. Applicant's Compliance with City and State Laws. During the term of the abatement, the
Applicant shall comply with Chapter 2, Article 6 of the South Bend Municipal Code entitled "Tax
Abatement Procedures" and all governing provisions of the Indiana Code. During the term of this
abatement, the City may annually request information from the Applicant concerning the nature of the
Project, the approved capital expenditure of the Project, the number of full-time permanent positions
newly created by the Project, and the average wage rates and salaries (excluding benefits & overtime)
associated with the positions, and the Applicant shall provide the City with adequate written evidence
thereof within 15 days of such request(the "Annual Survey"). The City shall utilize this information and
the information required to be filed by the Applicant in the CF-1 Compliance with the Statement of
Benefits form to verify that the Applicant has complied with the commitments contained in the
Commitments at all times after the Commitment Date and during the duration of the abatement. The
Applicant further agrees to provide the City with such additional information requested by the City
related to the information provided in the Annual Survey and the CF-1 form within a reasonable time
following any such additional request.
4. Substantial Compliance and Rights of Termination. The City,by and through the SBCC,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
_1
comply with all the Commitments, and the Applicant's failure to substantially comply with the
Commitments was not due to factors beyond its reasonable control. As used in this Agreement,
"substantial compliance" shall mean the Applicant's compliance with the following: (a) expenditures of
no less than Nineteen Million Three Hundred Fifty Thousand dollars ($19,350,000) of capital investment
towards the construction of the mix use building located at 320 East Colfax Avenue, South Bend, IN
46617; (b)this real property project will create at least twenty(20) indirect jobs within three years.
5. Factors Beyond Control. As used in this Agreement, factors beyond the control of the Applicant
shall only include factors not reasonably foreseeable at the time of 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 Agreement.
6. Repayment of Tax Abatement Savings. If at any time during the term of this Agreement the
Applicant shall: (i) be delinquent or in default with respect to any tax payment in St. Joseph County,
Indiana; or(ii) cease operations at the facility for which the tax abatement was granted; or(iii) announce
the cessation of operations at such facility, then the City 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.
7. Notice/Hearing of Termination. In the event that the City determines that the Economic
Revitalization Area designation and associated tax abatement deductions should be terminated or that all
or a portion of the tax abatement savings should be repaid, it will give the Applicant notice of such
determination, including a written statement calculating the amount due from the Applicant, and will
provide the Applicant with an opportunity to meet with the City's designated representatives to show
cause why the abatement should not be terminated and/or the tax savings repaid. Such notice shall state
the names of the person with whom the Applicant may meet and will provide that the Applicant shall
have thirty days from the date of such notice to arrange such meeting and to provide its evidence
concerning why the abatement termination and/or tax savings repayment should not occur. If, after
giving such notice and receiving such evidence, if any,the City determines that the abatement termination
and/or the tax repayment action is proper, the Applicant shall be provided with written notice and a
hearing before the SBCC before any final action shall be taken terminating the abatement and/or requiring
repayment of tax benefits. The Applicant shall be entitled to appeal that determination to a St. Joseph
County Superior or Circuit Court.
8. Repayment. In the event the City requires repayment of the tax abatement savings as provided
hereunder, it shall provide Applicant with a written statement calculating the amount due(Statement),and
Applicant shall make such repayment to the City within 30 days of the date of the Statement. If the
Applicant does not make timely repayment,the City shall be entitled to all reasonable costs and attorneys'
fees incurred in the enforcement and collection of the tax abatement savings required to be repaid
hereunder.
9. Modification/Entire Agreement. This Agreement and the schedules attached here to contain the
entire understanding between the City and the Applicant with respect to the subject matter hereof, and
supersede all prior and contemporaneous agreements and understandings, inducements, and conditions,
expressed or implied, oral or written, except as herein contained. This Agreement may not be modified or
amended other than by an agreement in writing signed by the City and the Applicant. The Applicant
understands that any and all filings required to be made or actions required to be taken to initiate or
maintain the abatement are solely the responsibility of the Applicant.
10. Waivers. Neither the failure nor any delay on the part of the City to exercise any right, remedy,
power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of
any other right, remedy, power or privilege with respect to any occurrence or be construed as a waiver of
such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective
unless it is in writing and is signed by the party asserted to have granted such waiver.
11. Governing Laws of Indiana. This Agreement and all questions relating to its validity,
interpretation, performance, and enforcement shall be governed by the laws and decisions of the courts of
the State of Indiana.
12. Applicant's Consent to Jurisdiction. The Applicant hereby irrevocably consents to the
jurisdiction of the Courts of the State of Indiana and of the St. Joseph County Circuit or Superior Court in
connection with any action or proceeding arising out of or relating to this Agreement or any documents or
instrument delivered with respect to any of the obligations hereunder, and any action related to this
Agreement shall be brought in such County and in such Court.
13. Notices. All notices, requests, demands, and other communications required or permitted under
this Agreement shall be in writing and shall be deemed to have been received when delivered by hand or
by facsimile (with confirmation by registered or certified mail) or on the third business day following the
mailing, by registered or certified mail, postage prepaid, return receipt requested,thereof, addressed as set
forth below:
If to Applicant: Wharf Partners,LLC
16 E. Monroe St., Suite#320
South Bend, IN 46601
Attn: Frank Perri
If to the City: City of South Bend,Indiana
27 West Jefferson Blvd. Suite 1400S
South Bend, Indiana 46601
Attn: Daniel Buckenmeyer, Department of
lCommunity Investment
14. Assignment and Transfer Prohibited. This Agreement shall be binding upon and inure to the
benefit of the City and the Applicant and their successors and assigns, except that no party may assign or
transfer its rights or obligations under this Agreement without the prior written consent of the other party
hereto, in which consent shall not be unreasonably withheld.
15. Valid and Binding Agreement. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original as against any party whose signature appears thereon, and
all of which shall together constitute one and the same instrument. By executing this Agreement, each
person so executing affirms that he has been duly authorized to execute this Agreement on behalf of such
party and that this Agreement constitutes a valid and binding obligation of the party.
16. Severability. The provisions of this Agreement and of each section or other subdivision herein
are independent of and separable from each other, and no provision shall be affected or rendered invalid
or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or
unenforceable in whole or in part unless this Agreement is rendered totally unenforceable thereby.
17. No Personal Liability. No official, director, officer, employee or agent of the City shall be
charged personally by the Applicant, its employees or agents with any liabilities or expenses of defense or
be held personally liable to the Applicant under any term or provision of this Agreement or because of the
execution by such party of this Agreement or because of any default by such party hereunder.
[Remainder of page intentionally blank.]
d
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
"Applicant" `City"
Wharf Partners LC City of South Bend, Indiana
y: By:
Frank Perri Tim Scott
As President, South Bend Common Council
pproved as to Legal Adequacy and Form thi
Y
day of 32018.
Gavin Ferlic
Chairperson, Community Investment
Counsel, South Bend Common Council Committee
Y
Dan c enmeyer
Counsel for Applicant Department of Community Investment
Y:
Pete Buttigieg
Mayor