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HomeMy WebLinkAbout6B (2)A (z) SpUTIJ Community & Economic Development ' 1865 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: Tamara Nicholl- Smith, Director Downtown Business Recruitment Subject: Downtown Riverfront Municipal Development District Local Process Date: June 25, 2012 Attached for review is the completed packet for the proposed local process to accompany the Downtown Municipal Riverfront Development Project ordinance voted on by City Council on June 25th. As you are aware from our discussion last meeting, the intent of this Ordinance is to kick -start further economic development in the downtown by providing a recruitment tool to encourage quality eating establishments, entertainment, and cultural venues to locate within 1,500 feet of the river by making available lower cost non - transferable 3 -way licenses that are not subject to the quota. State Code 7.1- 3 -20 -16 allows for the creation of a Municipal Riverfront development area to be declared in blighted locations within 1,500 feet from a river's edge. The Ordinance is in line with our city's repeated desire to cultivate our river as an asset. Through its Resolution No. 4163 -12, adopted on March 26, 2012, the South Bend Common Council expressed its interest in establishing a Municipal Riverfront Project. The Ordinance is the realization of this Resolution. By the adoption of this Ordinance, South Bend would join 22 Indiana cities and towns who have already designated a municipal riverfront project, which has resulted in the issuance of 130 riverfront licenses (ATC designated License No. 221 -3) which have fostered economic development in these cities. The passing of the ordinance declaring the district is only the first step in being able to offer Municipal Riverfront Development District liquor licenses. Now, it is within the scope of the Redevelopment Commission to approve the process by which these licenses will be granted. Attached you will find our proposal for this local process. This process is based on processes already in place in several other Indiana municipalities and has been vetted with the mayor's office, a few members of common council, DTSB, the city's legal department, and other relevant stakeholders. We recommend that you approve and adopt the process as drafted. Sincerely, Tamara Nicholl -Smith Director, Downtown Business Recruitment What We Do Today Makes A Difference! Proposed Local Approval Process for Downtown South Bend 221 -3 Riverfront License Who will be involved? 1. The Applicant 2. Downtown South Bend, Inc.is proposed as the process coordinator 3. A proposed 5- person Riverfront License Application Review Committee consisting of: a. The Economic Development Director or designee b. City Council designee c. A member of the Redevelopment Commission d. A DTSB representative e. A mayoral designee 4. The Mavor Proposed Local Approval Process O1 2 3 4 5 Mayoral evel �•• Ok Review W Contract Approval Contract execution contingent on Mayoral Approval. 1. Applicant completes the Riverfront License Application and submits to DTSB along with a copy of their completed ATC Application for New or Transfer permit. 2. The Riverfront License Review Committee will review the application electronically and then schedule a public meeting with the applicant. 3. The Riverfront License Review Committee' will make a recommendation to either approve or deny. Approved applications will be forwarded to the Mayor's office - denied applications will not. 4. Approved applicant will enter into a written commitment /contractwith the City to comply with any Local Rules and conditions that the City places on the operation (see eligibility requirements below). Full contract execution is ultimately contingent on Mayoral approval. 5. Mayor will review the recommendation of the Riverfront License Review Committee. If the mayor also approves, then the applicant will be provided with the approval letter from the Mayor neededfor the ATC application. Proposed Yearly Renewal Evaluation Criteria All 221 -3 Riverfront licenses are up for review by the local alcohol board on an annual basis. The Riverfront License Review Committee will make a recommendation each year for renewal or withdrawal of your 221 -3 license to the local ATC board based on the following: 'The ad -hoc committee members serve three -year terms. Draft 4/3/12 • The amount of expenditures for needed upkeep and maintenance (if improvement have been made indicate the cost of the improvements). • # of substantiated complaints (if applicable) from area residents, business owners, and police officers • # of public safety (if applicable) or nuisance concerns (our concern will be focused on number of calls for services based on overcrowding, service to minors, noise, or other violations of the alcohol regulatory laws not for customer health /ambulance etc.) • Has not been cited for health department or code violations (if cited, issue was handled within given timeframe and requested parameters). • Compliance with all local requirements • If there has been a material change in business plan Proposed Local Eligibility Requirements: In addition to complying with all building, health, zoning laws, ordinances and all rules and regulations of the ATC, local, state, and federal governments applicants must also meet the following local requirements annually in order to be eligible to apply or renew: 1. Applicant's establishment must be located within the City of South Bend Municipal Riverfront Development District boundaries. 2. Focus of operation must be on a dining, entertainment or cultural experience rather than an alcohol consumption experience. 3. Beverages must be served in glass containers. 4. Patrons consume food at either a counter or table. 5. Must be a non - smoking establishment (exception made for upscale cigar lounge). 6. Cannot be a private club, nightclub, or adult entertainment venue. 7. No temporary exterior signage will be permitted. Permanent, attached signage is required. 8. Establishments located within the district with an existing 3 -way license may not sell their existing license in order to apply for a 221 -3 Riverfront license. There will be a minimum 1 -year wait between the time any business with an existing license sells their license and will be able to apply for a new license. 9. Applicant must agree to become a full - paying member of the Downtown Dining Association and /or community partners with Downtown South Bend, Inc. The dues for the Dinning Association or required commitment to Downtown South Bend Inc. shall not exceed $200 per month per establishment (as of Spring 2012 current Dining Alliance dues are $1,325 annually). Proposed Evaluation Criteria: The recommendation to the mayor will be based how strongly the committee determines: 1. Granting of the license will benefit the purposes of the district, i.e. to become a cultural and dining destination for the region. 2. Granting of the license and the business activity will not be detrimental to the property values and business interest of others in the district. The above will be evaluated based on the strength of the following: 1. The Physical Location 2. The Operation Itself 3. The Economic Impact 4. Reputation /Experience of Ownership Draft 4/3/12 Application for City of South Bend Municipal Riverfront District Permit Business Entity Making this Application: Applicant Name: Applicant's Address: Applicant's Phone (daytime City: State: Zip: Email: 1. In addition to the floor plan required in Step 7 of the Indiana form, please include: a. Any plans you have to improve the facility in which you will operate b. The expected timetable for work and business commencement 2. Explain the overall concept and unique features of the proposed establishment. 3. Describe the level of control and participation the owners will have in the day to day operation of the business. 4. Describe how your operation will focus on a dining, entertainment or cultural experience rather than an alcohol consumption experience. 5. Explain any past restaurant experience you have had or other means by which the Riverfront License Review Committee will be able to obtain information on your preparedness for this venture. 6. Please outline any other factors that will aid the Riverfront License Review Committee in the consideration of your application. 7. Please provide information on the number of jobs this operation will add to or be retained within the City of South Bend. 8. Explain how you will jointly market your restaurant with other restaurants in the District, and how you will work with the community. 9. Describe how your restaurant will draw people to downtown South Bend, specifically the riverfront area. Draft 4/3/12 10. Please verify that you do not currently hold or have held an active 3 -way license for this location within the past 12 months. Please submit this form and all attachments to: Riverfront License Review Committee C/O Downtown South Bend, Inc. 217 S. Michigan Street, South Bend, IN 46601. Please attach: 1. Your completed Indiana State form entitled "Application for New or Transfer Permit" along with any attachments. 2. A signed copy of the eligibility requirements 3. A signed copy of the criteria sheet. 4. A copy of your business plan (should include financial and ownership strengths) 5. A copy of your proposed permanent signage 6. A tentative menu Permits are not transferable, not portable within or without the district and any renewal are subject to compliance with the terms of these local rules and any agreement negotiated with the Riverfront License Review Committee. The permits shall not be pledged as collateral or subject to any lien, judgment, property settlement agreement, or third party claim. APPLICANT'S CERTIFICATION The Applicant certifies that all information in this application and all information furnished in support of this application are true and complete to the best of the Applicant's knowledge and belief. I have read and understand the procedures and agree to follow the Riverfront License Review Committee Process. I am submitting documentation as requested. Applicant's Signature: Date: Draft 4/3/12 ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING AND ESTABLISHING THE BOUNDARIES OF A MUNICIPAL RIVERFRONT DEVELOPMENT PROJECT STATEMENT OF PURPOSE AND INTENT To complement economic development efforts of cities and towns, the Indiana General Assembly enacted Ind. Code §7.1- 3 -20 -16 (The "Act "). The Act allows the Indiana Alcohol and Tobacco Commission (ATC) to issue one -way, two -way and three -way nontransferable permits without regard to the ATC quota restrictions to restaurants located within an authorized Municipal Riverfront Development Project, funded in part with State and City money. The St. Joseph River is among the City of South Bend's most beautiful and treasured assets, and the optimum utilization of this valuable resource was emphasized in the Central Development Area Development Plan (The "Plan ") adopted by the South Bend Redevelopment Commission on May 10, 1985, and last amended December 28, 2010. Riverfront Development was also emphasized in the City Plan, and the East Bank Village Master Plan both of which called for optimum utilization of South Bend's Riverfront property. Through its Resolution No. 4163 -12, adopted on March 26, 2012, the South Bend Common Council expressed its interest in establishing a Municipal Riverfront Project. The Council further finds that adoption of a Municipal Riverfront Development Project is consistent with the Plan, and that over 22 Indiana cities and towns have designated a municipal riverfront project, resulting in the issuance of 130 riverfront licenses (ATC designated License No. 221 -3) which have fostered economic development in these cities. To encourage new restaurant proprietors to invest in the SBCDA, the South Bend Common Council determines that it is in South Bend's best interest to authorize and establish boundaries for a Municipal Riverfront Development Project, and to work with the City Administration to establish processes and procedures to permit such proprietors to apply to the ATC for a 221 -3 Riverfront License. This Ordinance identifies the boundaries of a Municipal Riverfront Development Project, attached as Exhibit "A ", and the Council finds that these boundaries comply in all respects with the Act in that the designated area borders on at least one side of the St. Joseph River and the entire authorized real estate as described in Exhibit `B" is located within a redevelopment area established under Indiana law. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND as follows: Section I. The area shown on Exhibit "A" and described in Exhibit "B" is hereby designated as a Municipal Riverfront Development Project for the City of South Bend pursuant to the Act, and it meets all qualifications for such a Project under the Act. Section II. The South Bend Redevelopment Commission is directed to develop policies and procedures for individuals, corporations, and business entities to apply for a Riverfront License pursuant to the Act and consistent with the regulations promulgated as a result of the Act. Section III. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Attest: City Clerk Member of the Common Council Presented by me to the Mayor of the City of South Bend, Indiana, on the day of , 2012, at o'clock . m. City Clerk Approved and signed by me on the day of , 2012, at o'clock . m. Mayor, City of South Bend, Indiana Exhibit A: South Bend Downtown Municipal Riverfront Development Project District JIM Exhibit B: Legal Description for the Downtown Municipal Riverfront District Beginning at the intersection of the Centerline of Corby Boulevard with the Centerline of St. Louis Boulevard; thence South along the Centerline of said St. Louis Boulevard a distance of 2,870 feet more or less to the Centerline of LaSalle Avenue; thence West along said Centerline to the North projected Centerline of the first Alley East of Hill Street; thence South, along said projected Centerline to a point that is 66 feet North of the North right -of -way line of Washington Street; thence East to the East right -of -way line of St. Louis Boulevard; thence South along said East right -of -way line to the North right -of -way line of Washington Street; thence East on said North right -of -way line to the East right -of -way line of the first North -South Alley East of St. Louis Boulevard; thence South along said East right -of -way line of Alley to the South right -of- way line of the first East -West Alley South of Washington Street; thence West along said South right -of -way line of said Alley to the centerline of the first 14 -foot North -South Alley lying East of Hill Street; thence South along said Centerline of Alley to the South right -of -way line of Jefferson Boulevard; thence East along said South right -of -way line to the East right -of -way line of St. Louis Boulevard; thence South along said East right -of -way line to the North right -of -way line of Wayne Street; thence East along said North right -of -way line of Wayne Street to the East right -of -way line of Notre Dame Avenue; thence South along said East right -of -way line to a point on the East right -of -way line of Notre Dame Avenue which is South 205 feet from the South right -of -way line of Wayne Street; thence East 173 feet; thence North 102.5 feet; thence East 171.07 feet to the West right -of -way line of Frances Street; thence South along said West line 102.5 feet to a point of intersection with the North right -of -way line of Quimby Street extended West; thence East along the North right -of -way line of Quimby Street and its Westerly extension to the West right -of -way line of Eddy Street; thence South along said West line to the South line of the Plat of Parry's Addition; thence West along the said South line and the South line of the Plat of Beck's 1 st Addition to the West right -of -way line of Frances Street; thence South along said West line to the Northeasterly right -of -way line of Northside Boulevard; thence Southeasterly along said Northeasterly right -of -way line to the South right -of -way line of Sample Street; thence Southwesterly along said South right -of -way line to the Centerline of the St. Joseph River; thence meandering Northwesterly along said Centerline to the Easterly projection of the Southerly right -of -way line of Monroe Street; thence Southwesterly along said projection and the Southerly right -of -way line of Monroe Street to the Easterly right -of -way line of Lincolnway East (U.S. Highway #933); thence Southeasterly along said Easterly right -of -way line to the South right -of -way line of Sample Street; thence West along said South right -of -way line to a point which is East 137.5 feet from the Centerline line of Rush Street projected South; thence North 300 feet; thence West 137.5 feet to said Centerline line of Rush Street; thence along said Centerline for the next two (2) courses, North 530 feet and West 248 feet; thence North 100 feet; thence West 100 feet to the Centerline of Fellows Street; thence North along said Centerline 210 feet to the Centerline of Bronson Street; thence West along said Centerline of Bronson Street to the Centerline of Columbia Street; thence North along said Centerline of Columbia Street to the Centerline of South Street; thence West along the Centerline of South Street to the Centerline of Carroll Street; thence North along the Centerline of Carroll Street to the Centerline of Monroe Street; thence West on the Centerline of Monroe Street to a point that is 250 feet East of the Centerline of Michigan Street; thence North to the Centerline of Western Avenue; thence West on the Centerline of Western Avenue to the Centerline of Michigan Street; thence North on the Centerline of Michigan Street to the Centerline of Wayne Street; thence West on the Centerline of Wayne Street to the Centerline of Main Street; thence North on the Centerline of Main Street to the Centerline of Washington Street; thence West on the Centerline of Washington Street to the Centerline of Lafayette Boulevard; thence North on the Centerline of Lafayette Boulevard to the Centerline of Colfax Avenue; thence West on the Centerline of Colfax Avenue to a point of intersection with the Centerline of the first North -South Alley West of Lafayette Boulevard projected South; thence North along said centerline, in certain places being sometimes known as St. James Court, to the North right -of -way line of La Salle Avenue; thence East along said North right -of -way line to the West right -of -way line of Lafayette Boulevard; thence North along the said West right -of -way line to the Centerline of Navarre Street; thence East along the Centerline of Navarre Street to a point of intersection with the East right -of -way line of St. Joseph Street projected North; thence South along said projection and the East right -of -way line of said St. Joseph Street to the North right -of -way line of Marion Street; thence East along said North right -of -way and its projection to the East to the Centerline of the St. Joseph River; thence Northeasterly along the Centerline of the St. Joseph River to a point of intersection with the Centerline of Corby Boulevard projected West; thence East along said projected Centerline and the Centerline of Corby Boulevard to the Point of Beginning. Containing 465.69 acres more or less. Ell] Downtown Municipal Riverfront Development ©E District FAQ What is a Municipal Riverfront Development District (MRDD)? A district that is exempt from the State alcohol and beverage permits quota (see State Code: IC 7.1 -3 -20- 16.1 in Appendix). According to the State of Indiana Legal Code, what does an establishment applying for a 221 -3 license need to file with the ATC? The establishment must fill out the regular ATC application, check the RMDD box, and include the following: 1. A copy of the local ordinance of the local governing body that declares the RMDD 2. A detailed aerial map showing the entire boundaries of the Municipal Riverfront Development District 3. The location of the establishment (must be within the boundaries) 4. A letter from the mayor in support of their application* * This letter is obtained through the local process. What are the restrictions? • District must be within 1,500 feet of a river • Permitted in Redevelopment Districts • Boundaries must be adopted by the City Council What does a MRDD allow? New businesses locating within these boundaries will be able to apply for a 221 -3 Riverfront license. How is a 221 -3 Riverfront license different from a standard 3 -way license? Regular License Riverfront District License State quota limits number of available licenses No quota mandated by the state Usually purchased on open market for $20,000 - $40,000 Available from the state for $1,000 Transferable. Can be sold Non - transferable /Cannot be sold Available throughout the city Only available within Municipal Riverfront Development District Why do we want this? • Encourage quality new dining, cultural, and entertainment venues to locate within 1,500 feet of the river in Downtown South Bend by providing lower cost non - transferable 3 -way licenses that are not subject to the quota. Municipal Riverfront Development District FAQ Nicholl -Smith Page 1 • To free up capital that would have been spent on a regular 3 -way license to be used for improvements to the physical location and marketing. • To aid downtown revitalization by providing a competitive advantage over strip mall and big box corridor locations. • Implement best practices followed by other municipalities. How many other municipalities have established a Riverfront Development District in Indiana? Over 22 municipalities in the state of Indiana. Who are they? Anderson, Aurora, Chesterton, Columbus, Elkhart, Evansville, French Lick, Fishers, Goshen, Indianapolis, Jeffersonville, Kokomo, Lafayette, Lawrenceburg, Michigan City, Mishawaka, Newburg, Portage, Richmond, Terre Haute, West Lafayette, Valparaiso, How many active 221 -3 Riverfront licenses are active in the state of Indiana? 130 How do you plan to market the district once it is created? Downtown South Bend, Inc. (DTSB) will create a user - friendly map to present to potential downtown South Bend businesses. DTSB will distribute this map along with a clear overview of the application process via the real estate community, the Northern Indiana Small Business Development Center (and other such agencies), the DTSB website, and the other Economic development entities. Municipal Riverfront Development District FAQ Nicholl -Smith Page 2 What is the proposed downtown district? Ron ....... ...... The yellow highlighted area is the proposed district. The dashed lines show the TIF area, and the light blue depicts 1,500 feet from the river. Municipal Riverfront Development District FAQ Nicholl -Smith Page 3 APPENDIX A: State Code IC 7.1 -3 -20 -16.1 Municipal Riverfront Development Project; Alcoholic Beverage Permit Requirements IC 7.1 -3 -20 -16.1 Municipal riverfront development project; alcoholic beverage permit requirements Sec. 16.1. (a) This section applies to a municipal riverfront development project authorized under section 16(d) of this chapter. (b) In order to qualify for a permit, an applicant must demonstrate that the municipal riverfront development project area where the permit is to be located meets the following criteria: (1) The project boundaries must border on at least one (1) side of a river. (2) The proposed permit premises may not be located more than: (A) one thousand five hundred (1,500) feet; or (B) three (3) city blocks; from the river, whichever is greater. However, if the area adjacent to the river is incapable of being developed because the area is in a floodplain, or for any other reason that prevents the area from being developed, the distances described in clauses (A) and (B) are measured from the city blocks located nearest to the river that are capable of being developed. (3) The permit premises are located within: (A) an economic development area, a redevelopment project area, an urban renewal area, or a redevelopment area established under IC 36 -7 -14, IC 36 -7 -14.5, or IC 36 -7 -15.1; (B) an economic development project district under IC 36 -7 -15.2 or IC 36 -7 -26; or (C) a community revitalization enhancement district designated under IC 36 -7 -13 -12.1. (4) The project must be funded in part with state and city money. (5) The boundaries of the municipal riverfront development project must be designated by ordinance or resolution by the legislative body (as defined in IC 36- 1- 2 -9(3) or IC 36- 1- 2 -9(4)) of the city in which the project is located. (c) Proof of compliance with subsection (b) must consist of the following documentation, which is required at the time the permit application is filed with the commission: (1) A detailed map showing: (A) definite boundaries of the entire municipal riverfront development project; and (B) the location of the proposed permit within the project. (2) A copy of the local ordinance or resolution of the local governing body authorizing the municipal riverfront development project. (3) Detailed information concerning the expenditures of state and city funds on the municipal riverfront development project. (d) Notwithstanding subsection (b), the commission may issue a permit for premises, the location of which does not meet the criteria of subsection (b)(2), if all the following requirements are met: (1) All other requirements of this section and section 16(d) of this chapter are satisfied. (2) The proposed premises is located not more than: (A) three thousand (3,000) feet; or (B) six (6) blocks; from the river, whichever is greater. However, if the area adjacent to the river is incapable of being developed because the area is in a floodplain, or for any other reason that prevents the area from being developed, the distances described in clauses (A) and (B) are measured from the city blocks located nearest to the river that are capable of being developed. (3) The permit applicant satisfies the criteria established by the commission by rule adopted under IC 4 -22 -2. The criteria established by the commission may require that the proposed premises be located in an area or district set forth in subsection (b)(3). (4) The permit premises may not be located less than two hundred (200) feet from facilities owned by a state educational institution. (e) A permit may not be issued if the proposed permit premises is the location of an existing three -way permit subject to IC 7.1- 3 -22 -3. As added by P.L.72 -2004, SEC.11. Amended by P.L.155 -2005, SEC.2 and P.L.214 -2005, SEC.49; P.L.185 -2005, SEC.2; P.L.1 -2006, SEC.149; P.L.2 -2007, SEC.131. Municipal Riverfront Development District FAQ Nicholl -Smith Page 4