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HomeMy WebLinkAboutWaiver Late Filing of Deduction Application for New Manufactring Equipment - Praire Apartmetns Housing Partners II, L.P. located at 2630 Prairie AvenuePassed by the Common Council of the City of South Bend, Indiana May 29, Attest: 12 20 Presented by me to the Mayor of the City of South Bend, Indiana May 30, 12 20 _ City Clerk President of Common Council City Clerk Approved and signed by me b—N:?l4 7 k 20-L L-" . 0 RESOLUTION NO. � ! gT -( ), A RESOLUTION WAIVING THE REQUIRED FILING DATE OF MAY 159 2011 AND ACCEPTANCE OF THE DEDUCTION APPLICATION OF THE LATE FILING OF DEDUCTION APPLICATION FOR THE NEW MANUFACTURING EQUIPMENT LOCATED IN AN ECONOMIC REVITALIZATION AREA FILED UNDER RESOLUTION 4000 -09 FOR PRAIRIE APARTMENTS HOUSING PARTNERS II, L.P. LOCATED AT 2630 PRAIRIE AVENUE Whereas, The State of Indiana, County of St. Joseph, Adopted by the Common Council of the City of South Bend, Indiana commonly known as 2630 Prairie Avenue, South Bend, Indiana had adopted RESOLUTION 4000 -09, pursuant to Indiana Code 6-1.1 - 12.Ito be an economic revitalization area for purposes of ten (10) year real tax abatement for Prairie Apartments Housing Partners II, L.P. Whereas, Resolution 4000 -09 was presented and adopted by the Common Council November 9, 2009. Mr. William Hollingsworth as petitioner representative was in attendance. Whereas, Mr. Hollingsworth states that the Application for Deduction from Assessed Valuation for a New Apartment Complex in Economic Revitalization area ( Form 322) was prepared and given to a representative of the Department of Community and Economic Development. Whereas, the Auditor's Office states that it has never received the required Form 322 from a representative of the Department of Community and Economic Development. Whereas, the tax bill which was to have been 100% abated results in a tax being due of $184,724.56. Now, therefore be it resolved by the Common Council of the City of South Bend, Indiana as follows: SECTION 1. The petitioner has presented testimonial evidence of the following facts in support of this resolution: A. There has been a change in the personnel in the Department of Community & Economic Development and the required Form 322 cannot be found in the department files. B. The stated property cannot afford this large tax bill at the present time. C. Prairie Apartments Housing Partners II, L.P. has met or exceeded all financial goals stated in their original petition for a tax abatement. The initial cost of the project was estimated to be $8,000,000 and the actual cost was $9,850,000. Two new positions have been created and three old positions have been retained as stated in the original petition. E. The project is an outstanding asset to this community. Phase I and Phase II of the project remain 100% occupied with a waiting list attesting to the quality of the project and the management. F. Prairie Apartments Phase I won the 2009 Apartment Association of Indiana's award for Best Affordable Apartment Complex in Indiana. G. Phase I and Phase II of the project remain in good financial standing with 100% of all creditors and vendors. H. All other required documentation has been received from Prairie Apartments Housing Partner's II, L.P. by the required due dates. SECTION II. The foregoing facts, taken together, lead the Common Council to conclude that compelling reasons exist to waive the filing deadline. SECTION III. The Common Council hereby waives the filing deadline of May 15th 2011 and pursuant to Indiana Code 6 -1.1- 12.1 -4.8 adopts this resolution that authorizes acceptance. cL J lu -hAJr4 NOT APPROVEd ADOPTS (1 Q J- S u- b S Member of the Common Council Filed in !_.,, s � s ryy� - e CITYCLERKA TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 12 -46 A RESOLUTION WAIVING THE REQUIRED FILING DATE OF MAY 15, 2011 AND ACCEPTANCE OF THE DEDUCTION APPLICATION OF THE LATE FILING OF DEDUCTION APPLICATION FOR THE NEW MANUFACTURING EQUIPMENT LOCATED IN AN ECONOMIC REVITALIZATION AREA FILED UNDER RESOLUTION 4000 -09 FOR PRAIRIE APARTMENTS HOUSING PARTNERS II, L.P. LOCATED AT 2630 PRAIRIE AVENUE Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation as substituted by striking in the 3rd whereas Manufacturing Equipment and adding Apartment Complex and taking out the word Portage and adding the word Apartments after the word Prairie in section F. This bill was heard by the Community & Economic Development Committee. Karen L. White Chairperson, Committee of the Whole I200 COUNTY -CITY BUILDING 2.2.7 W. JEFFERSON BOUI.F.vARD SOUTH BEND, INDIANA 466oi -1830 May 18, 2012 PHONE 574/ 23 5-9371 FAX 574/235-9021 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT Council Member Henry Davis, Chairperson Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Real Property Tax Abatement Petition for: Prairie Apartments Housing Partners II, L. P. Dear Council Member Davis: Portage Prairie Housing Partners II, L.P. was approved for a ten year personal property tax abatement on November 9, 2009 through resolution number 4000 -09. The filing deadline for Form 322 was May 15, 2011. The petitioner maintains that the form was turned in to the Department of Community & Economic Development. The Auditors Office has not received the required Form 322 from the Department of Community and Economic Development. Consequently, the petitioner did not receive his abatement for the pay 2012 tax year. The company is requesting a resolution from the Common Council waiving the filing date for the Deduction Application. A representative of the company will be available to meet with the Committee on Monday, May 29, 2012. To accomplish this request, a tax abatement recipient must notify the Council in writing. Attached you will find a letter from the company's representative, Bill Hollingsworth, requesting the waiver. 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 -9278. Sincerely, V7I Kathy Hahn Economic Development Specialist Attachments c: South Bend Common Council Members Mayor Pete Buttigieg Don Inks Scott Ford Flied in Clerk's F MAY `8201 CITY C -1 7� _ " U4 COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT PAMELA C. MEYER DONALD E. INKS 574/235-966o 574/235-9371 FAX: 574/235-9469 Via email and certified mail 5/17/12 Kathy Hahn Community and Economic Development City of South Bend 227 W. Jefferson Blvd. South Bend, IN 46601 Dear Mrs. Hahn, Prairie Apartments Housing Partners 11. L.P. 4000 W. 106th Street, Suite 125 -146, Carmel, IN 46032 Bill Hollingsworth 317- 557 -9442 who] lingsworth (a?cqualdeveloptncnt.com As we have discussed over the last couple of weeks, Prairie Apartments Housing Partners 11, L.P, a 96 unit affordable housing apartment community received a tax abatement on November 9, 2009 with Resolution No. 4000- 09 with a unanimous City Council vote. Since that time Prairie Apartments, Phase 11 has fulfilled and exceeded all promises made to the City of South Bend. The Auditor's office states that it has not received Form 322/RE with respect to the abatement. I sent the required form into the city, but not directly to the Auditor's office. I was not advised to do anything else. i had such a positive working relationship with the City and was under the impression that the form would be delivered to the Auditor, and did not realize this was an issue until i received the tax bill, which should have been abated. I understand there was a change in personnel in this city office, and perhaps my form was overlooked. Therefore, i humbly ask for the Common Council of the City of South Bend to grant Prairie Apartments Housing Partners 11, L.P. a Waiver of Non - Compliance for this paperwork mishap. To mitigate the technical noncompliance and show consistent compliance throughout the tax abatement process. I have completed all other requirements on time or ahead of schedule and met or exceeded all financial terms, including: • 1 have filed all the other forms correctly and on time (in fact, months before the due dates) including the form CF -1 every year. • 1 promised $8,000,000 in new construction, but I delivered over $9,850,000 in the new project. 23% more project than promised. Y I promised to create 2 new position and i delivered with 2 new positions. ® I promised to retain 3 old positions and I maintained 3 old positions • All salary requirements were met and exceeded. • All employees have health benefits. • All employees are paid above the average pay rate for their classification of job. • All employees are continuously trained via internal and external training classes. ® The same ownership applied for and also received a unanimously voted upon 10 year tax abatement for Prairie Apartments Phase 1. All documents, forms, employment, and financial commitments were met or exceeded by the applicant on time. e Prairie Phase I won the 2009 Apartment Association of Indiana's award for Best Affordable Apartment Complex in Indiana. • Phase 1 & 11 remain 100% occupied with a waiting list, attesting to the quality of the project and the quality of the professional management. Phase I & Ii both remain in good financial standing with 100% of all creditors and vendors. We have never been a penny short or minute late on our obligations to others. This year's tax bill, which was to be 100% abated, is $92,362.28 for each installment, totaling $184,724.56. This unfortunately makes this paperwork mistake a severe and huge $184,724.56 problem that the property hasn't budgeted for, nor can afford. An additional effort to show that 1 am earnest and honest about our commitments; I have submitted the $92,362.28 for the May 10th payment on time. I sincerely hope that the Common Council of the City of South Bend will approve the Waiver of Non Compliance and the Treasurer's office can refund the much needed money. Additionally, knowing that the 322/RE can't be found I provided the Auditor's office with a new one on May 10th, 2012, to make sure that I've covered every possible base. In addition to the two projects on Prairie Avenue that I've completed since 2008 totaling over $22,000,000, I continue to look for new opportunities in South Bend and the County. I currently have a project that is in the planning stages in St. Joseph County on SR 933, just North of South Bend costing more than $9,000,000. I will continue the commitment to the South Bend market through the development of new apartment complexes and developments over the coming years. I sincerely ask for the Common Council to grant the Waiver of Non - Compliance to Prairie Apartments Housing Partners II, L.P.. As shown in this letter and from staff and community feedback the ownership has shown consistent, reliable, honest, and timely follow through to all commitments. That consistency and honesty should give solace that Form 322/RE was sent but not inputted into the system causing this huge $184,724.56 problem. I appreciate your, Janice Talboom, and Bill Schalliol's continued and very helpful support throughout this effort. Best Regards, William J. Hollingsworth Prairie Apartments Housing Partners 1I, L.P. 317 -557 -9442 whollingsworth @equaldevelopment.com MAY 18 ZUQ