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HomeMy WebLinkAboutDetermining Amount of Assistance paid Urban Enterprises Association y saw • • ORDINANCE No. 8698-96 Passed by the Common Council of the City of South Bend, Indiana. July 22, 19 96 1/T G Attest: . .1 - City Clerk LORETTA J. ■ DA Attest: _C' /6 President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana July 23, 96 19 City Clerk LORETTA J. BUDA Approved and signed by me 9--tifj- 24 ig /(n �� o �� "`' Mayor ORDINANCE NO. Wig-96 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA DETERMINING THE AMOUNT OF ASSISTANCE TO BE PAID TO THE URBAN ENTERPRISE ASSOCIATION OF SOUTH BEND, INC. BY ZONE BUSINESSES RECEIVING A CREDIT UNDER I .C. 4-4-6 .1 STATEMENT OF PURPOSE AND INTENT An enterprise zone (Zone) has been designated within the corporate boundaries of the City of South Bend, Indiana, by the Indiana Enterprise Zone Board (Board) , pursuant to I .C. 4-4-6 . 1-3, and redesignated as an enterprise zone by the Board in 1995 . As a part of the process of redesignation of the Zone, the Common Council of the City of South Bend, Indiana (Council) approved the redesignation application of the Urban Enterprise Association of South Bend, Inc. (UEA) , the entity, pursuant to I .C. 4-4-6 . 1-5 which oversees and coordinates development activities within the Zone. The redesignation application of the Zone incorporated a five-year strategic plan which presumed the receipt of current levels of assistance received by the UEA from Zone businesses receiving a credit, including, but not limited to, the inventory tax credit, under I .C. 4-4-6 . 1 . House Enrolled Act No. 1084 enacted by the General Assembly of the State of Indiana, and effective as law July 1, 1996, requires the participation of a municipal legislative body such as the Council in certain activities of the UEA including the determination of the amount of assistance to be paid by any Zone business receiving a credit under I .C. 4-4-6 . 1 and the process of disqualifying a Zone business from eligibility for all credits and incentives available to Zone businesses . Pursuant to I .C. 4-4-6 . 1-4, a member of the Council serves as a member of the UEA Board of Directors . The Council recognizes the expertise of the UEA in administering programs within the Zone and recognizes and respects its experience in working with and securing the compliance of businesses within the Zone in connection with such programs . NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS : SECTION I . It is hereby determined that each Zone business shall be required to pay to the UEA as assistance to the UEA under I .C. 4-4-6 . 1-2, an annual amount equal to twenty-five percent of any credit received by such business under I .C. 4-4-6. 1 for the preceding year: Provided, however, that said amount shall be equal to thirty percent (30%) of any such credit in the case of any warehouser. • It is the present intent of the Common Council that the level of assistance hereby established shall be in effect until December 31, 1999: Provided, however, this determination shall be subject to annual review and in consultation with the UEA may be amended by the Council as long as the authority to make such determination is vested with the Council recommendation, by the adoption of a resolution determining the same. SECTION II . The Council shall, upon the recommendation of the UEA, disqualify a Zone business from Zone benefits and incentives if that business has not assisted the UEA as provided herein. SECTION III . Any recommendation made by the UEA to the Council for the disqualification of a Zone business from Zone benefits and incentives (Disqualification) shall be accompanied by a report detailing efforts made by the UEA to resolve the issue of the nonpayment of assistance to the UEA. Prior to making its recommendation to the Council, the UEA Committee must : (1) Contact the Zone business by an initial letter, certified mail, return receipt requested, which shall: (A) outline Zone responsibilities with respect to the payment of assistance to the UEA, as provided herein; (B) request a verified written summary of the Zone tax benefits and incentives that Zone business has received, and an explanation of the use of those benefits and incentives by the Zone business no later than fifteen (15) days from receipt of the initial letter; and (C) request a meeting between the Zone business and the UEA at which Zone benefits, incentives, and responsibilities will be discussed by the UEA and the Zone business . (2) Offer to allow business to pay required assistance in installments; (3) Undertake such additional efforts the UEA determines useful in resolving the issue of nonpayment of assistance. SECTION IV. Upon its receipt of the UEA' s recommendations for Disqualification, the Council shall refer the same to the Council' s attorney for preparation of an ordinance disqualifying a Zone business from eligibility for all credits and incentives available to Zone businesses (Disqualification Ordinance) , a notice as provided in Section V and certified mail envelope for mailing the same. The Disqualification Ordinance shall set forth the facts on which the Disqualification is based. SECTION V. Upon the filing of the Disqualification Ordinance, the City Clerk shall send a copy of the same, by certified mail, return receipt requested, to the business at the address provided • • in the tax records of St . Joseph County and to the businesses Zone address, if that differs. The Clerk shall also enclose with the Disqualification Ordinance sent to the affected Zone business the following notice: Be advised that the enclosed ordinance has been filed with the Common Council of the City of South Bend to disqualify [name of business] from all credits and incentives available to Zone businesses . Public hearing will be held on this ordinance on [date] at [time] at [location] . You are invited to appear at this public hearing and present testimony and evidence to the South Bend Common Council as to why it should not pass this ordinance. SECTION VI . Within five (5) days of the passage of such a Disqualifying Ordinance by the Council and its approval by the Mayor of the City of South Bend, the City Clerk shall provide a certified copy of the Disqualification Ordinance to the UEA Director who shall cause the same to be sent to the Indiana Enterprise Zone Board, the Indiana Board of Tax Commissioners, the St . Joseph County Auditor, and the Indiana Department of Revenue within thirty (30) days of the passage of the Disqualification Ordinance. SECTION VII . Disqualification of a Zone business shall be effective beginning with the taxable year in which the Disqualification Ordinance is passed. SECTION VIII . A Zone business disqualified pursuant to a Disqualification Ordinance shall be disqualified from Zone benefits and incentives for one (1) year following the date of Disqualification. A Zone business disqualified pursuant to a Disqualification Ordinance may, no sooner than one (1) year following the date of Disqualification, petition the Council for reinstatement of benefits . A copy of the petition shall be forwarded to the UEA by the Common Council, for review and recommendation to the Council . In the event that the Council approves the petition, benefits may be reinstated retroactively to the date of the petition. In the event the Council does not approve the petition, the Zone business may submit another petition for reinstatement of benefits no sooner than one (1) year following the date of the denied petition. If the year following the date of Disqualification would be after the Zone expires under law, the Zone business will be disqualified for the previous year and be subject to repayment of any Zone benefits and incentives received in that year. SECTION IX. The business that is the subject of a Disqualification ordinance, and its authorized representatives, may review and examine the records of the UEA and Council concerning the recommendation of Disqualification prior to the public hearing on the Disqualification Ordinance. Pursuant to I .C. 4-4-6 .1- 2 .5 (b) , the Zone businesses' tax records are confidential and not • subject to public disclosure under I .C. 5-14-3 and the same shall retain their confidential nature notwithstanding the procedures described herein. SECTION X. If any one or more of the provisions contained in this ordinance shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this ordinance shall be construed as if such invalid, illegal or unenforceable provision was not contained therein. SECTION XI . This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. ----?6-ea„ G% /Z Member, Common Council Filed in Clerk's Office o 1 st READI NG — PUBLIC HEARING 7.-202,—Cl JUL - 2 1996 3 rd READING ...2.2 NOT APPROVED LORETTAJ. CUDA REFERRED CITY CLERK,SO.REND,AkA. PASSED /.„ -% • COMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee to whom was referred BILL NO. 54-96 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA DETERMINING THE AMOUNT OF ASSISTANCE TO BE PAID TO THE URBAN ENTERPRISE ASSOCIATION OF SOUTH BEND, INC. , BY ZONE BUSINESSES RECEIVING A CREDIT UNDER I.C. 4-4-6. 1 Respectfully report that they have examined the matter and that in their opinion this bill has been recommended to the Council favorably. Cleo Washington Chairman ' 511�v. 11•110_0511OW Urban Enterprise Association Of SOU t BEND INC. July 1, 1996 Roland Kelly President South Bend Common Council 4th Floor, County-City Building South Bend,Indiana 46601 President Kelly: The attached ordinance, "Determining the Amount of Assistance to be Paid to the Urban Enterprise Association of South Bend,Inc. By Zone Businesses Receiving a Credit Under I.C. 4-4-6.1" is submitted for Council consideration based on previous discussions. The ordinance implements the recent changes in state statute that(1) provide the authority and power to the Council to determine the percentage of assistance paid annually to the UEA by a Zone business and, (2)by outlining the process by which the Council could disqualify a Zone business for non-compliance with the statute. The Enterprise Association will be actively involved in these processes in order to provide information and recommendations to the Council. On behalf of the Urban Enterprise Association I respectfully request the Council's favorable consideration of this ordinance. Thank you. Sincer- Pamela C.Meyer Executive Director • cc: Jenny Pitts Manier,Legal Counsel UEA Members 1200 Filed in Clerk's Office ti Cou Y-CI Y-.BUILQIn(s ::.:.. •.., SOUTH BEND, IN 46601 JUL - 2 1996 Phone: 219/235-9660 LORETTA J. DUDA — Fax:219/235-9697 CITY CLERK,SO.BEND, N.