HomeMy WebLinkAboutDetermining Amount of Assistance paid Urban Enterprises Association y saw
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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.
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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
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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
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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 /.„ -%
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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.