HomeMy WebLinkAbout4713-18 Confirming Property Tax Abatement Petition: Franklin Street Technology Park, LLC RESOLUTION
No. 4713-18
Passed by the Common Council of the City of South Bend, Indiana
May 14, 2018
Attest: - City Clerk
Ka mah N. Fowler
Attest: President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
May 14,— 20-18–.
City Clerk
Kareemah N. Fowler
Approved and signed by me 20-0— .
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United States of America
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Certificate
STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss:
I, Kareemah Fowler, Clerk of the City of South Bend, County of St. Joseph, Indiana, hereby
certify that the attached and foregoing is a full, true, and correct copy of
RESOLUTION 4713-18
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH
BEND,INDIANA,COMMONLY KNOWN AS INTERSECTION OF SAMPLE ST.AND
FRANKLIN ST., SOUTH BEND, IN 46601 AS AN ECONOMIC REVITALIZATION
AREA FOR PURPOSES OF AN EIGHT (8) YEAR REAL PROPERTY TAX
ABATEMENT FOR FRANKLIN STREET TECHNOLOGY PARK, LLC
ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, MAY 14, 2018.
PRESENTED TO, APPROVED AND SIGNED BY MAYOR PETE BUTTIGIEG,
MAY 21, 2018.
ATTEST: TIM SCOTT, PRESIDENT OF THE COMMON COUNCIL
ATTEST: KAREEMAH N. FOWLER, CITY CLERK
the original of which is now on file in the office of the Clerk of the City of South Bend, St. Joseph
County, Indiana.
IN WITNESS WHEREOF, I have hereunto set my hand and ffixed the official Seal f the City
of South Bend, St. Joseph County, Indiana, this day of 1(AAt__ 20 _
Kareemah Fowler
Clerk of the City of South Bend
St. Joseph County, In 'ana
By:
Deputy
BILL NO. 18-20
RESOLUTION NO. 4713-18
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
Intersection of Sample St. and Franklin St., South Bend, IN 46601
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF AN EIGHT (8) YEAR REAL
PROPERTY TAX ABATEMENT FOR
Franklin Street Technology Park, 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 the
intersection of Sample Street and Franklin Street, South Bend, Indiana described as follows:
Parcel I: Lot Numbered One (1) as shown on the recorded Plat of Studebaker Corridor
Fourth Minor Subdivision, recorded May 7, 1993 as Document Number 9315731 in the
Office of the Recorder of St. Joseph County, Indiana.
Parcel II: Lots Numbered Fifty-three (53) and Fifty-four (54) as shown on the recorded
Plat of South Bend City, as platted by Samuel Morrison, now a part of the City of South
Bend, in St. Joseph County, Indiana.
Parcel III: Lots Numbered Fifty-five (55) and Fifty-six (56) as shown on the recorded Plat
of South Bend City, as platted by Samuel Morrison, now a part of the City of South Bend,
in St. Joseph County, Indiana.
Parcel IV: Lots Numbered Fifty-seven (57), Fifty-eight (58), Fifty-nine (59), Sixty (60),
Seventy-one (71), Seventy-two (72), Seventy-three (73) and Seventy-four (74) all as shown
on the recorded Plat of South Bend City, platted by Samuel Morrison, now within and a
part of the City of South Bend, Indiana.
and which have Key Numbers 018-8002-0061, 018-8002-0070, 018-8002-0071, 018-8002-
.0073, 018-8002-0074, 018-8002-0075, 018-8002-0076, 018-8002-0077, 018-8002-00789 018-
8002-0079, 018-8002-0094, 018-8002-0096, 018-8002-0097, 018-8002-0098, 018-8002-0099,
018-8002-0100, 018-8002-0101, 018-8002-0102, and 018-8002-0104, 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.
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 eight(8) 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.
Year 1 - 100%
Year 2 - 100%
Year 3 - 95%
Year 4 - 90%
Year 5 - 85%
Year 6 - 80%
Year 7—75%
Year 8 - 70%
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
KESEM'EG' Iq South Bend Common Council
NOT APPROVal
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CITY OF SOUTHBEND
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: Franklin Street Technology Park,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
three office buildings,located at the intersection of Sample Street and Franklin Street,South Bend.
The report contains the Department's findings relative to the above petition. The total cost for the
construction is estimated at $3,000,000 over a four year period. The project meets the
qualifications for an eight-year real property tax abatement and a representative from Franklin
Street Technology Park, 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.
Sincer y,
t
Daniel uckenmever
Director of Business Development and Economic Resources
DAmmj.BUcymNaI YER ALKLYmA ALDR=E PAMELA MEnR TD.I CORCORAN
BUSINESS DEVELOPMENT ENGAGEMEt\*r&ECONOMIC EMPOWERMP. r NEIGHBORHOOD DEVELOPMENT 1 Ix\mNc&Com. ww ry RESOURCF,s
EXCELLENCE 'ACCOUNTABILITY INNOVATION I INCLUSION EMPOWERMENT
1400S County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 466011 p 574.235.93711 www.southbendin.gov
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: DANIEL BUCKENMEYER
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
Franklin Street Technology Park,LLC
DATE: April 18,2018 I
On Thursday March 29`x, 2018, a petition from Franklin Street Technology Park, LLC was
received and subsequently filed with the City Clerk for real property tax abatement consideration
for property to be located at the intersection of Sample Street and Franklin Street, South Bend,IN
46601. 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.
i
PROJECT SUMMARY
➢ Construction of the approximately 60,000 sq. ft. three standalone buildings with
flexible use space.
➢ The proposed construction will be located on the block bounded by Sample Street,
Franklin Street, Garst Street and Lafayette Street adjacent to the main campus of
Ignition Park. The new space will be leased out to various small companies for a
variety of uses including light manufacturing and assembly, service contractors,
distribution companies and technology maintenance and support companies.
➢ In the first phase a building approximately 30,000 sq.ft.will be built as speculative
space in anticipation of tenant needs. An additional 30,000 sq.ft. will be designed
and added as specific needs and tenants are identified.The space will allow various
types of companies to start operations or to expand into larger spaces. This type pf
space will complement the larger structures contemplated for Ignition Park.
➢ The project is expected to create approximately 60 indirect jobs in the next five
years.
➢ $3,000,000 private investment in the buildings construction.
➢ Land purchase from the Redevelopment Commission for$84,000.
➢ Estimated taxes being paid during eight year abatement period—$137,488
➢ Estimated taxes being abated during eight year abatement period—$438,512
i
EMPLOYMENT IWACT
Per the petition,it is estimated that the total project will:
i
➢ Create sixty(60)indirect jobs
I
ABATEMENT QUALIFICATION
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 West Development Area.
i
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications for an(8)eight-year real property tax abatement under section 2-84.2,Tangible
Real Property Tax Abatement.
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Filed in Clerk's Office
MEMORANDUM OF AGREEMENT
�MAY 082013
KAREEMAH FOWLER
CITY CLERK. SOUTH REND,IN
This Memorandum of Agreement(Agreement) dated as of the Thursday, ApRT1 ,
serves as confirmation of a commitment by Franklin Street Technology Park,LLC(the"Applicant"),
pending an May 14'",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 (8) eight-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$3,000,000 associated with the construction of three buildings located at the intersection of
Sample Street and Franklin Street, South Bend, IN 46601 (Key Numbers 018-8002-0061, 018-8002-
0070, 018-8002-0071, 018-8002-0073, 018-8002-0074, 018-8002-0075, 018-8002-0076, 018-
8002-0077, 018-8002-0078, 018-8002-0079, 018-8002-0094, 018-8002-0096, 018-8002-0097,
018-8002-0098, 018-8002-0099, 018-8002-0100, 018-8002-0101, 018-8002-0102, and 018-
8002-0104). This real property project will create at least sixty(60)indirect jobs within five 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 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 Three Million dollars
($3,000,000) of capital investment towards the construction of three buildings located at intersection of
Sample Street and Franklin Street, South Bend,IN 46601; (b)this real property project will create at least
sixty(60)indirect jobs within five 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: Franklin Street Technology Park,LLC
814 Marietta Street
South Bend,IN 46601
Attn: Charles Hayes
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 parry.
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.]
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
"Applicant" 96city59
Franklin Street Technology Park, LLC City of South Bend, Indiana
LL Y�
By: 11Q- I I �� Tim Scott
President, South Bend Common Council
[insert contact name]
Y• '1��
Approved as to Le al Adequacy and Form this
day of �� ,2018. Gavin Ferlic
Chairperson, Community Investment
Committee
Couns uth Bend Co on Council
By:
Dan Buckenmeyer
Department of Community Investment
Counsel for Applicant
By:
A
Pete Buttigi
Mayor
1 Filed in Clerk's Office
[!MAY 0 8 2018
KAREEMA- FOWLER
1 CITY C'_FBK,SOUTH SEND,IN