HomeMy WebLinkAbout4714-18 Confirming Property Tax Abatement Petition: Wharf Partners, LLC RESOLUTION
No. 4714-18
Passed by the Common Council of the City of South Bend, Indiana
May 14, 20-1-8—.
Attest: City Clerk
Kareemah N. Fowler
Attest President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
May 14 _20 .
City Clerk
Kareemah N. F
Approved and signed by me �1 20 I v .
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Certificate
STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss:
1, Kareernah 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 4714-18
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
ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, MAY 14,2018.
PRESENTED TO, APPROVED AND SIGNED BY MAYOR PETE BUTTIGIEG9
MAY 219 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 anq_affixed the official Seal of the City
of South Bend, St. Joseph County, Indiana, this day of I Uf Q-,, 20
Kareemah Fowler
Clerk of the City of South Bend
St. Joseph County, Indiana
By: f�yjf4�vfyl .4-4 -A
Deputy
BILL NO. 18-21
RESOLUTION NO. 4714-18
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 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; 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.
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 se Q.
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
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Filed in Clerk's Office
'P ACE APR 18 2018
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KAREEfllA_H FOWLER
CITY OF SOUTHBEND`^'�CLERK,SOUTH BEND, 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.
ADanie y,
Bucke yer
Dire ctor of Business Development and Economic Resources
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BUSI\FSs DF.VE[AP\1r.\"f E\GAGEAIF-Yr&ECo\oNnc Ewomaw.,\T NEIGHBORHOOD DF.VELOPME\"F Pi,\,\Nwc&Co\muNm RFSOCRCFS
EXCELLENCE ACCOUNTABILITY ; INNOVATION INCLUSION EMPOWERMENT
1400S County-City Building 227W.Jefferson Blvd. South Bend,Indiana 46601 p574.235.9371 vwvw.southbendin.gov
Filed in Clerk's office
!APR I 2018
KAREENIAH FOWLER
TAX ABATEMENT REPORT !'ITY 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 SUIVIN L4RY
➢ 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 — $1,468,000
(residential property)
➢ Estimated taxes being abated during the six year abatement period—$432,000
EMPLOYMENT EVWACT
Per the petition,it is estimated that the total project will:
➢ Create sixty(20)indirect jobs
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. s
3. A review of the South Bend Redevelopment designation areas finds that the property is located
in the River East Development Area.
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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. l
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Filed in Clerk's Office
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APR 18 2018
KAREEMAH FOWLER
CITY CLERK,SOUTH BEND,IN
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Filed in Clerk's Office
MAY 092018
MEMORANDUM OF AGREEMENT
KAREEMAH FOWLER
CITY CLERK,SOUTH BEND,IN
This Memorandum of Agreement (Agreement) dated as of May 1", 2018, serves as
confirmation of a commitment by Wharf Partners, LLC (the "Applicant"), pending a May 14th, 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 Ci1y 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
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.]
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
By: •--� y:
Frank Perri Tim Scott
President, South Bend Common Council
Approved as to Legal Adequacy and Form this
day of ,2018. Y
Gavin Ferlic
Chairperson, Community Investment
Counsel, S th Bend Common Council Committee
Y�
Dan c enmeyer
Counsel for Applicant Department of Com nity Investment
Y:
Pete Butti
Mayor