HomeMy WebLinkAboutTax Abatement Waiving Noncompliance 7250 Vorden Pkwy Olive Cleveland Partners LLC RESOLUTION
4204-12
Passed by the Common Council of the City of South Bend, Indiana
September 24, 12
20
Attest: s 41,0 City Clerk i 11 1,1
Attest I—1. +k- h-zs A‘--V—t 1 President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
September 25, 20 12
41:ANr ■ -...4. 41 City Clerk
Approved and signed by me 5 1 °7 In&f A 26, 20 C Z
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RESOLUTION NO. 2 OUH
A RESOLUTION OF THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA CONFIRMING
THE GRANT OF CERTAIN REAL PROPERTY TAX ABATEMENT
DEDUCTIONS AND WAIVING NONCOMPLIANCE FOR PROPERTY
COMMONLY KNOWN AS
7250 VORDEN PARKWAY
FOR
OLIVE CLEVELAND PARTNERS, LLC
WHEREAS, on July 12, 2010, the Common Council of the City of South Bend (the
"Council") adopted Resolution No. 4036-10 (the "2010 Resolution"), approving a five (5) year
real property tax abatement for the proposed construction of a new industrial design-built
warehouse/distribution facility containing approximately 80,000 square feet (the "Building
Project") to be constructed by Olive Cleveland Partners, LLC ("Taxpayer") within an area
designated an economic revitalization area in the City of South Bend in accordance with IND.
CODE § 6-1.1-12.1-1, et seq.; and
WHEREAS, the Taxpayer described for the Council that the Building Project (also
known as the Invacare Building)had multiple purposes and benefits, including that it would:
(a) accommodate the relocation of Invacare Corp. and expansion of its facilities
within South Bend, into a new building with new investment/construction costs of
no less than $2,400,000;
(b) facilitate Invacare Corp.'s consolidation of its Midwest regional distribution
operations in South Bend;
(c) result in Invacare Corp. retaining its business in South Bend, including its
employee base of 23 employees with payroll over $670,000; and
(d) be completed in the Spring of 2011, in order to relocate Invacare Corp. out of a
facility at 7055 Cleveland Road (the "Cleveland Road Site") and to facilitate
Patterson Logistics' remaining in South Bend and expanding into the Cleveland
Road Site (which was desired by Patterson Logistics as part of its decision to
locate its Midwest operations in South Bend); and
WHEREAS, as contemplated as part of the Building Project, the Taxpayer (a)
successfully completed its construction of a new 80,000 square foot warehouse/distribution
facility at a cost in excess of$2,400,000, (b) was instrumental in relocating Invacare Corp. to the
1
new building and assisting with the desire of Patterson Logistics to expand in South Bend, and
(c)has confirmed that Invacare Corp.'s employment and payroll projections have been exceeded;
and
WHEREAS, the (a) Building Project was first assessed for real property tax purposes as
100% complete for the March 1, 2011 assessment date for taxes payable in 2012 (the "First
Year"), and (b) Taxpayer learned that a notice of this assessment was sent by the St. Joseph
County Assessor on or about February 24, 2012; and
WHEREAS, a result of a wholly inadvertent oversight and misunderstanding, the
Taxpayer did not file, timely, the single form (known as Form 322 ERA/RE - Application for
Deduction from Assessed Valuation of Structures in Economic Revitalization Areas) (the
"Application Form") with the St. Joseph County Auditor, to claim benefits of the abatement
(which form was to be filed within thirty (30) days after the date the notice of assessment was
mailed to Taxpayer); and
WHEREAS, the Taxpayer learned that it filed its Application Form eleven (11) days after
the period for filing such form to claim benefits of the property tax abatement for the First Year
and the Application Form was denied due to the belated nature of the filing;
WHEREAS, this oversight was an unusual occurrence for Taxpayer, which directly (or
through affiliates) owns and manages a large number of properties, pays significant annual real
property taxes and has always made diligent efforts in good faith to make all required Indiana tax
filings (including abatement filings) on a timely basis; and
WHEREAS, the Common Council recognizes that (a) the Taxpayer fulfilled its pledge to
build a new 80,000 square foot warehouse/distribution facility in the City of South Bend and
thereby to enhance the tax base, support employment and attract new business in the City; (b)the
Taxpayer has requested a waiver of its inadvertent oversight for late filing of the Application
Form to claim benefits of the tax abatement for the First Year, which the Common Council has
the power and authority to approve under Indiana law, and (c) the Taxpayer would have been
entitled to receive the tax abatement benefits for the First Year had no noncompliance event
occurred; and
WHEREAS, the Indiana General Assembly has expressed the policy of this State by
enacting laws that expressly permit tax abatement noncompliance events such as the untimely
filing of an Application Form to be waived; and
WHEREAS, the noncompliance event has been corrected, and a public hearing of the
Common Council has been held on the subject of this Resolution.
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, AS FOLLOWS:
SECTION 1. The Taxpayer has presented testimonial and documentary evidence
supporting the Taxpayer's (a) fulfillment of its obligations detailed in its original Statement of
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Benefits and its application for tax abatement related to the construction of a new 80,000 square
foot design-built warehouse/distribution in the City of South Bend at 7250 Vorden Parkway
South Bend, Indiana (the "Property"), and (b) wholly inadvertent oversight and
misunderstanding leading to a belated filing of the Form 322 ERA/RE "Application for
Deduction from Assessed Valuation of Structures in Economic Revitalization Areas" to claim
the benefits of tax abatement for the March 1, 2011 assessment date on the Property.
SECTION 2. The foregoing facts, taken together, lead the Common Council to conclude
that the Taxpayer has fulfilled its projected plans to construct new improvements contemplated
as part of the 2010 Resolution (the "Abatement") and that its belated filing of an application
required to claim the benefits of the Abatement as of March 1, 2011 (for taxes due and payable
in 2012) was inadvertent.
SECTION 3. The Common Council hereby waives the matter of noncompliance that
may be waived under State and local law regarding the late filing of applicable deduction
applications in order for the Taxpayer to claim and receive the benefit of tax Abatement on its
investment in new building improvements contemplated as part of the 2010 Resolution as of the
March 1, 2011 assessment date, all as is permitted under IND. CODE § 6-1.1-12.1-11.3 (including
specific waiver that the deduction application under IND. CODE § 6-1.1-12.1-5 be timely filed
with the county auditor to claim property tax abatement deductions for the 2011-Pay-2012 tax
year).
SECTION 4. The Common Council incorporates herein by reference, and hereby
ratifies and reaffirms: (a) the 2010 Resolution; (b) the tax abatement application and statements
of benefits of the Taxpayer; and(c)the recitals of this Resolution. The Common Council and the
Clerk of the City of South Bend are authorized to take all such further acts and execute and
deliver all such further documents for the St. Joseph County Auditor or otherwise as may be
reasonably necessary to give effect to this Resolution, all without further application to or formal
action by the Common Council.
SECTION 5. This Resolution shall be in full force and effect from and after its passage
and approval by the Mayor.
\ sAN ■ I
Member of the Common Council
;: LU12
PRESENTED 61.---2A4 Z"
APPROVE J'
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TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
12-72 A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA CONFIRMING THE
GRANT OF CERTAIN REAL PROPERTY TAX
ABATEMENT DEDUCTIONS AND WAIVING
NONCOMPLIANCE FOR PROPERTY COMMONLY
KNOWN AS 7250 VORDEN PARKWAY FOR OLIVE
CLEVELAND PARTNERS,LLC
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.
This bill was heard by the Community & Economic Committee.
Karen L. White
Chairperson, Committee of the Whole
BARNESÞBURG LLP 600 1st Source Bank Center
100 North Michigan
South Bend,IN 46601-1632 U.S.A.
(574)233-1171
Fax(574)237-1125
Richard J.Deahl
(574)237-1240 www.btlaw.com
richard.deahl@btlaw.com
September 18, 2012
VIA E-MAIL & HAND DELIVERY
Mr. John Voorde
City Clerk, City of South Bend
455 County-City Building
227 West Jefferson Boulevard
South Bend, IN 46601-1830
RE: Olive Cleveland Partners, LLC
Resolution for Waiver of Non-Compliance (Tax Abatement)
Dear Mr. Voorde:
Our Firm has the pleasure of representing Olive Cleveland Partners, LLC ("OCP") with
certain real estate matters. On behalf of OCP, we kindly request the Common Council's
consideration of the enclosed Resolution to formally waive OCP's technical non-compliance
with a filing requirement to claim the benefits of certain tax abatement.
More specifically, in 2010, the Common Council granted a five (5) year tax abatement on
OCP's proposed investment to construct a 80,000 square foot warehouse/distribution facility on
Vorden Parkway for Invacare Corp. OCP successfully completed construction of this facility,
exceeded its investment target and accommodated the relocation of Invacare Corp. and
expansion of its business within South Bend to this new building. This relocation of Invacare
resulted in its ability to retain its business and expand its workforce in South Bend and facilitated
the expansion of Patterson Logistics into Invacare's former site. These were all benefits of the
proposed project which have been met by OCP.
The new building was first assessed as of March 1, 2011 (for property taxes due this
year). Due to a wholly inadvertent oversight regarding coordination of tax filings, OCP learned
that it filed its application to claim the benefits of abatement a mere eleven (11) days after the
period that such filing was due. The enclosed resolution kindly requests a waiver of this non-
compliance in order to restore the tax abatement benefits to which OCP would have received had
it timely filed the application.
We are happy to meet with the Community and Economic Development Committee of
the Council and the full Council on Monday, September 24th, or at such other date as the Council
Atlanta Chicago Delaware Indiana Los Angeles Michigan Minneapolis Ohio Washington,D.C.
Mr. John Voorde
September 18, 2012
Page 2
may prefer. Please feel welcome to contact me, at any time, if I can provide any additional
information. We greatly appreciate your professional assistance.
Very truly yours,
ES ÞBURG LLP
.._. Lo._.._....,.....c
Richard J. Deahl
RJD:slr
Enclosure
SBDS02 434884v1
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BARNESÞBURG LLP 1 C7" . _ .
1200 COUNTY-CITY BUILDING �� \ /��d\ PHONE 574/235-9371
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227 W.JEFFERSON BOULEVARD V,1, /
i FAX 574/235-9021
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SOUTH BEND,INDIANA 46601-1830 '",�.� A�^*s (^
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CITY OF SOUTH BEND PETE BUI'TJGJEG, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
September 19, 2012
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:
Olive Cleveland Partners, LLC
Dear Council Member Davis:
Olive Cleveland Partners, LLC was approved for a five year real property tax abatement on July 12, 2010
through resolution number 4036-10. The filing deadline for Form 322 was March 26,2012. Because of an
inadvertent oversight regarding coordination of tax filings within the company, the petitioner missed the
filing deadline by just 11 days.
The petitioner has complied or exceeded their targeted goals for their five year tax abatement,constructing
an 80,000 sf warehouse / distribution facility at a cost in excess of$2,400,000. This newly constructed
facility allowed Invacare Corporation to expand their operations in South Bend, and allowed Patterson
Logistics to move to Invacare's former building and consolidate their Midwest operations to South Bend.
The petitioner is requesting a resolution from the Common Council waiving the filing date for the Deduction
Application. A representative of the petitioner will be available to meet with the Committee on Monday,
September 24, 2012. To accomplish this request, a tax abatement recipient must notify the Council in
writing.Attached you will find a letter from the petitioner's representative,Richard J. Deahl,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 235-5836.
Si rely,
vid Relos E.44-- ---
Economic Development Specialist
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Don Inks
Scott Ford
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT
PAMELA C.MEYER DONALD E.INKS
574/2.35-9660 574/235-9371
FAx: 574/235-9469