HomeMy WebLinkAboutAmending Article 6 Chapter 2 Tax Abatement Procedures . . 1
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ORDINANCE No. 8333-92
Passed by the Common Council of the City of South Bend, Indiana_
December 28, 92
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Attest: ` ' City Clerk
IRENE K. GAMMON
Attest: 40. _�: _ _. % President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana—
December 29, 92
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City Clerk
IRENE K. GAMMON
Approved and signed by me al ig 943
7c - Mayor
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ORDINANCE NO. 1333-9,
AN ORDINANCE OF THE COMMON COUNCIL. OF THE
CITY OF SOUTH BEND, INDIANA, AMENDING
ARTICLE 6 OF CHAPTER 2 OF THE SOUTH BEND MUNICIPAL
CODE, ENTITY=Fri "TAX ABATEMENT PROCEDURES"
STATEMENT OF PURPOSE AND INTENT
Review of the operations of the office of the City Clerk and office
of the Department of Economic Development of the City of South Bend,
reveals a significant amount of staff time spent on the review and
processing of petitions for tax abatement and on the administration of
the City's tax abatement program, with additional staff time spent
handling tax. abatements for projects and property located in Tax
Increment Allocation Areas. The Common Council of. the City of South
Bend has determined it necessary to defray the expense of review and
processing of such applications and of administering the program by
increasing the filing fees provided in the South Bend Municipal. Code..
NOW, THEREFORE., BE IT ORDAINED BY THE. COMMON COUNCIL OF THE. CITY OF
SOUTH BEND, INDIANA, AS FOLLOWS:
Section. I. Chapter 2., Article 6, Section a-76.1(a) is amended to
add a new subsection, subsection 2-76.1(a) (22.5) , which shall read as
follows:
Sec.2-76..1.1. Definitions.
(a) As used. in. this article, the terms and phrases shall have
the following meanings:
* * * * *
22.5) Tax Increment Allocation Areas (TIAA) shall have the
meaning set forth. in I.C. 36-7-14-39(a) , as the same may be
amended from time to time.
Section II. Chapter 2, Article 6, Section 2-84.7 of the South Bend
Municipal Code shall be and hereby is amended to read as follows:
(a) Owners must file: Owners of real property or new
manufacturing equipment located within the City may petition the
Common Council on forms provided by the City Clerk for real or
personal property tax abatement consideration. All information and
attachments required by the designation application must be
completed and filed with the City Clerk together with the a
filing fee provided below ef-twe-hundred-fifty-dada€s-f$25G-A8}
to cover the review, processing and administrative costs of the
City's Department of Economic Development and City Clerk.
(b) Schedule of Fees. The following fees must be paid to the
City Clerk simultaneous with the filing of application or petition
for real or personal property tax abatement consideration:
I. Outside a TIAA
5 Year 3 Year 6 Year 10 Year
A. Real Property:
B. Personal. Property:
Application/Review $247.50
Annual Administration 330 00
Clerk's Office 250.00
Total Fee Personal Property $827 .50
C. Combineed.:.
1. Real Property:
Application/Review $123..75 $247.50 $247.50
Annual. Administration 99 .00 3.96.00 660.00
Clerk's Office 250.00 250.00 250.00
Sub Total (Real Property) $472.75 $893.50 $11.57.50.
2. Personal. Property:.
Application/Review $247.50 $123.75 $123.75
Annual Administration 330.00 165.00 165.00
Clerk's Office 250.00 250.00 250.00
Sub Total (PersonaiProperty) $827.50 $538.75 $538.7`5
Total Fee Combined $1,300.25 $1,432.25 $1,696.25
I.I. Inside a TIAA.
A. Real Property:
Application/Review NA $330.00 $330.00 $330.00
Annual Administration NA 198.00 396.00 660.00
Clerk's. Office NA 250.00 250.00 250.00
Total. Fee Real Property NA $778.00 $976.00 $1,240.00
B. Personal Property:
Application/Review $330.00
Annual. Administration 330.00
Clerk's Office 250.00
Total_ Fee Personal Property $910.00
C. Combined:.
1. Real Property:
Application/Review $165.00 $330.00 $330.00
Annual Administration 99.00 396.00 660.00
Clerk's Office 250.00 250.00 250.00
Sub Total (Real Property) $514.00 $976.00 $1,240.00
2. Personal Property:
Application/Review $330.00 $165.00 $165.00
Annual Administration 330.00 165.00 165.00
Clerk' s Office 250.00 250.00 250.00
Sub Total (Personal Property) $910.00 $580.00 $580.00
Total Fee Combined $1,424.00 $1,556.00 $1,820.00
The Application/Review and Clerk' s Office components of each of
the above fees are non-refundable. the Annual. Administration
f i.(c) Petition information: Property owners petitioning for
tax abatement shall provide the following information on the
petition to enable the Council to consider their request:
(1) The name(s) and address(es) of the real property
owner(s) (and personal property owner(s) , in the case of the
request for personal property tax abatement), and any other
person(s) leasing, intending to lease., or having an option to
purchase such property, and a brief description of the. business.
(2) if the business organization is publicly held, the name.
of the corporate parent and the name under which the corporation
is filed with the Securities Exchange Commission.
(3) The legal description and commonly known address.. of the.
real property for which real property tax abatement is being
petitioned; or the legal description and commonly known address
of the facility at which the new manufacturing equipment for
which tangible personal property tax abatement is being
petitioned will be located.
(4) A map and/or plat describing the area where tax.
abatement is being requested.
( 5) The current assessed valuation of the real property
improvement before rehabilitation, redevelopment., economic
revitalization, or improvement; or the current assessed valuation
of the tangible personal property to be replaced by new
manufacturing equipment.
( 6) Photographs of the location taken within two ( 2) weeks
of the filing of the petition.
(7) The real and personal property taxes paid at the
location during the previous five ( 5) years, whether paid by the
current owner or a previous owner.
( 8) The commitment made within the past five. ( 5) years to
hiring minority individuals including number of minorities
employed during each of the past five ( 5) years, specifying
whether full-time or part-time and whether permanent or temporary
employees. The petitioner shall also list the current number of
total employees (full- and part-time) and the current number of
minority individuals (full-and part-time) .
(9) An estimate of the after-rehabilitation market value of
the real property or an estimate of the market value of the new
manufacturing equipment after installation.
(10) The commitment to minority employment during the first
five ( 5) years of tax abatement.
(11) A description of the proposed project (whether
rehabilitation, new construction, or installation of new
manufacturing equipment) , including information about physical.
improvements to be made or the new manufacturing equipment to be
installed, an estimate of the cost of the project, the amount of
land to be used, the proposed use of the improvements., and a
general statement as to the value of the project to the business.
(12) An estimate of the number of new permanent jobs to be
created by the project within one ( 1) year, a statement of the
current number of permanent and part-time jobs at the location
and the impact on those current jobs to be caused by the project,
and the projected annual salaries for each such position to be
created.
(14) The Standard Industrial Classification Manual major group
within_ which the proposed project would be classified, by number
and description.
(15) The Internal Revenue Service Code of principal business
activity by which the proposed project would be classified., by
number and description.
(16) A description of on-site child care or day care
facilities, services, or benefits currently offered or proposed to
be offered by the pe titioner for children of employees.
(17) Other anticipated public financing for the project,.
including, if any, industrial revenue bonding to be sought or
already authorized, assistance through the United. States_. Department.
of Small Business Administration Section 503, financing through. the
Business Development Corporation of South Bend., Mishawaka, and St.
Joseph County, Indiana; or other public' financial assistance,
including but not limited to. public works improvements..
(1.8) For real property tax abatement, a description of how the
property in question. has become undesirable for or impossible of
normal development and occupancy because of lack, of development,
cessation of growth, deterioration of improvements., or character of
occupancy, age, obsolescence, substandard buildings or other
factors which have impaired values and prevent a normal development
of the property or property use.
(19) For personal property tax abatement, a description of why
the facility or group of facilities to be replaced are
technologically, economically, or energy obsolete, whereby the
obsolescence may lead to a decline in employment and tax revenues;
together with a verification that the new manufacturing equipment
will be used in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining or refinishing
of other tangible personal property and that the new manufacturing
equipment was never before used by its owner for any purpose in.
Indiana...
(20) The name, address and telephone number of the person to
contract regarding notice of Council meetings and public hearings
concerning the petition.
(21) The name, address and telephone number of the person who
will work with. ETS for employee recruitment. (Ord. No. 8065-90, Si)
Sec. 2-84.8. Statement of benefits, declaratory and confirmatory
resolutions required.
(a) In addition to the completed petition, filing fee, and.
related documents required by section 2-84.7, the owners of real
property or new manufacturing equipment must file a completed
statement of benefits form at the time of filing the petition.
(b) Proposed forms of declaratory and confirmatory resolutions
are also required of the owner at the time of filing the petition.
Section. III . This ordinance shall be in full force and effect: upon
passage by the. Common Council, approval by the Mayor, and proper legal
publication.
��..�... Ara._ -
Member, Sou vrBend. Common Council
SOUTH �\11
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City of South Bend
�j1 Joseph E. Kernan, Mayor
111•��..,� � d�j��
1\ 86`_�
Department of Economic Development
Jon R. Hunt Ann E. Kolata
Executive Director Deputy Executive Director
December 9, 1992
Mr. Steve Luecke
President, South Bend Common Council
4th Floor County City Building
South Bend, Indiana 46601
Re: An Ordinance Amending Article 6 of Chapter 2 of the South Bend
Munici al. Code, Entitled "Tax Abatement Procedures"
Dear M . e,
I am attaching for filing an ordinance amending Article 6 of
Chapter 2 of the South. Bend Municipal Code. The amendment provides a
more comprehensive fee structure concerning the request for tax
abatement and is intended to compensate the City more fairly for the
expenses of review and processing of tax abatement petitions and
administration of the City' s tax abatement program.
Sincerely,
on Hunt
Director
Department of Economic Development
1200 County-City Building to South Bend, Indiana 46601 • 219/284-9371 Fax 219/284-9892
Redevelopment Economic Development Housing Rehabilitation Financial 4 Program. Human Rights
Ann Kolata & Business Assistance Kathryn Baumgartner Management Cynthia Love-Bush
284-9371 Donald Inks 521 Eclipse Place Elizabeth Leonard 284-9355
284-9335 284-9475 284-9335
Oltmmmtttnn &port
Oto tic eoutnu n MCounril of tip CUR of£routs Eruct:
Your Committee of the Whole
to whom was referred
BILL NO.
118-92 SECOND READING ON A BILL OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, AMENDING ARTICLE 6 OF
CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE, ENTITLED
"TAX ABATEMENT PROCEDURES" .
Respectfully report thdt they have examined the matter and that in their opinion
This bill should be recommended to the Council favorable, as amended.
Ann Puzzello
Chairman