HomeMy WebLinkAbout20-27 Confirming Real Property Tax Abatement for Commonwealth Dev. Corp.Filed in Clerk's Office
AUG 18 2020
CITYCLERK, SOUTFI BEND, IN
CITY OF SOUTH BEND
COMMUNITY INVESTMENT
August 19, 2020
Council Member Jake Teshka, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Residential Real Property Tax Abatement Petition for: Commonwealth Development Corporation
of America
Dear Council Member Teshka:
Please find the attached information pertaining to a multi -family real property tax abatement petition
submitted by Commonwealth Development Corporation of America to build a new building at 505- 513
Michigan Street. The site has been vacant and underutilized for many years. This petition package includes:
➢ Department of Community Investment's summary report
➢ Petition
➢ Statement of Benefits form
➢ Supporting information.
The report contains the Department's findings relative to the above petition. The petitioner proposes to
complete 60 units of one- and two-bedroom apartments for seniors. The estimated project cost is
$8,741,520. The project meets the qualifications for a (9) nine-year real property tax abatement and a
representative from the company will be available to meet with the Committee on Monday, August 24,
2020.
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 235-5823.
Sincerely,
Daniel Buckenmeyer
Director Business Development
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
14005 County -City Building 227 W_JeffersonBlvd. South Bend. Indiana 46601 p574235.9371 w .southbendin.gov
r—
AUG 1 b 2(120
City of South Bend
Petition for Incentives 4WA
Petition Muyt/nWde af250fiUngfepayab/e m the Qty MWe oflte at onflhe vra the 01y's webeire of :i
bttp://souNbend/nAov/gawmment/ranrent/taaabanmentbr(arepmasslnpern bemmpfete "�"
General Information Project Name I Lay Way senimAWrlmeNa I Project Number
Baal namamrNlmerN MQSavamryM Commonwealth Development Corporation of America
n,slammanvn Corporation
C011p°"Prrenro< www. commonwealtheo.net
Proposed Project Information
prapomd prna s WcWtss 505, 507,511 and 513 S Michigan Par m"1'Pa" amme Commonwealth Holdings, LLC
city. sham. im I South Bend, IN 46601 Leoa""'er TBD
nn nraap m aveaan re 0.7 Acres umerealmwammeanr Owned
'amreM1nof mdary _76000 Itlaamdaywlam Apartments will be leased
Primary Contact Infarmaibn
mmarrmmpmvmmammmp Jonathan Nesburg °te VP of Development
Aadmssorm,manvmnmo 401 Hall St SW, STE 112K 'mme 231.360.7186
oty, smm, Be Grand Rapids, MI 49503 ane°
p I•nesburgQo commonwealthco.net
Senior Olncial Infonnatlan
Company Mahn aMdal name
Kdsti Morgan al. President
All afmmpany mnmdlM dleerant nom
m
7417 University Ave, Suite 210`6°"` 608-824-2292
rhetnm,ap Middleton, WI 53562 G1a° k.morgan@commonwealthco.net
Consultant Irdormation/Agent
"bad muteme mnmblryaemlenan, Conmlmnl rslmm V/til
"arm bmlemnamadmeopmempemnem
me
Oty,aLle. ap Email
Project overalew
<omedinr. moled.lylnn
City Way Senior Apartments is applying for an award of Rental Housing Tax
piopety 1f °"°'•'a,
Credits through the Indiana Housing and Community Development
atammmkW
araF
Authority. The property proposes 60 units of one and two bedroom
apartments for seniors. By redeveloping the former Fat Daddy's site that
has sat vacant and underutilized for many years, the senior housing project
will not only serve the community's seniors with a high quality affordable
housing option it will also serve as a catalyst for future investment into an
area of the City that acts as a major gateway into the heart of downtown.
The investment will spur jobs, and continued investment in an area that has
been neglected for decades.
CertMM ieAntleeY hrF appreprlem
lauep.aeatw.nam[mmm,m nnanaa, Yes, River West Development Area
cwly Mneehe eveelap pmanubaanehbeea
Yes �`P0r"aa`ne"""'h`vfWby 60
I(Mn b a pendmi tar Panamaprppem h4 abatNamp hR
IhPP mnnt90
F^NSmlled
Investment Details
hlnclnhadrvnumneeda lnfF
elle olprgemla debnl
lean
Nnany had?
remluedl
VMath mevalmorna for 1pnmlect? pwehuad In
Indiana for Ne proreeti
Va,ee lr[he rdue olanY tyulpmen[MIN
punFaped ham au[aldam kr Me prgen7
IN
New ROWE Investments
Calendar Year
land aoyubpl°"
aWlAna lafse PaYm[nts
IUI1dInE hr[Latt[o5n
N.11.114lnacOnitheri
FlIMSeulklnElmpravemems
Nw Alder rye Epulpmmt
S,ad TOallna"W oounr
Naw Earneare/Flaeures
r4wtompmer/n Wrdware
New Sool
On.M, Pall InhM[umere
OnNte Nbtl MkueuMrt
2019 2020 2021 2022
2023 2024 202S 2026
S 9S000.00
sa.7Nj1000
S J0,000.00
TOTK
$ 0.00 E 0.00 E 96,000.00 1 1a,nl.n0m 1
$0.001 $0.001 $0.001 0.00
FaOdtme Permanent Indiana. Resident Positions by Calendar Year
calendar Year
mn,ihso d tumWmvel m net NEW Nnnlne
pemranent labs touted at pruleW
Neumr-lirthewye, w/a T.1 arelnlM Tmaambe
bmefluinbonasecal eapmdlmre, ealned-nmatamuhdYan♦emwlebe net rathathwe
wmuladua
2019
2d20
M2]
2022 2 1%
2023
3029
2025
hard
i
tAMW
Provide hourly wage Information for new employees In the following pasObns,
can nme
Pan dmat
unovera 15
T.Onleal
re nt'n'tl S18
Mminb[ntw,
nw a
wn.mnat—remnuo .e n 2 r r na n,w Property Manager
oao yourmmpmYnave an EEO Mrinp pollayi YeS, feepu an EfOeryb[yeR
Please list the number of full time and part time minority and/or female employes foreach of
the last three years:
Nuae dunhe war salnmdmenue
Aumayand mdualm for demnlnsy0er
outman and remullmeat either Par that Pan
Yea` N/A WA NIA
Mrea Kart n.oll nustent pa bso.
run Tyne Panllue Ran eme panTbne Full nme
Pa.
PNTIme
Commonwealth is committed to
WBE. MBE, and DBE
paniclpation. Our OC, Developer,
Manager, and at least 8% of Our
total development costs will meet
the criteria for these business
enterprises.
NNPame
dslan
Inman
Famae
Omer
Complete below for Real or Personal Property Tax Abatement Only.
Please sign for all requested incentives.
Public Benefit
Item:
Information is required on both the construction companies and the
companies which will provide materials purchased for this project.
Please complete the table below with the appropriate Information. If
you qua lIfy far the points,please enter the full amount of see liable
points.
Quality gamed Points
Iyesor No)
Available Polnts
2
S_pnst_wrign Rs!eLad15¢gtrisio3l
A. Em ploy local Companies (75%)
Yes
20
20
B. Purchase Materials from Local Companies (75%1
Yes
20
20
C- Require Employeas vs. Independent Contractors
No
19
Require PrevalMg Mile(Dart, Bacon) No
22
E. Require Health B.at,
Yes
22
22
F. Require Penton Benefits
Yes
18
is
ED.
G. IMaintain Affirmative Action Plan
Yes
20
20
5649bl Construction Related:
100
141
2
Wxea Benefit RelalM lOwnerl:
ay Target Wage t.evels Yes 33
A.]P'rmfde
33
B.mvide Health Benefits
Yes
34
3a
C.rotide Pension Benefit
Yes
29
29
D.rovldsTreirnng
Yes
28
28
E.rovide Child Care
No
15
Rmvlde Trarm"tion Assistance
No
14
G. EmployerAssbted Housing program
No
9
SWWMI WAV a Benefit Related:
124
162
3
Workforce RAleted:
A. lCreateNs.Jobs
Yes
42
42
a. Retain&IstingJobs
No
0
41
C. Maintain Affirmative Action Plan
Yes
35
35
D. Pnwlde Targeted Hiring Preference
No
0
34
Subtotal Worklorm Related:
77
152
4
1. rt a Manllh»I fxlmv:
A'
SuoPwn a SB Munidpal Fa4ety (tlonatians M the
roe, wnservatory, museum, stet
Yes
84
84
Nameof Fxlllty
Library Renovallon
5u6tgbl MunldpalFxRhy:
w
04
Sub-total from Above:
385
539
The undersigned owner(s) of real property, looted within the City of South Bend, herby pentlon the Common Council of the City
of South Send for areal and/or person property tax abatement consideration and pursuant M I.C., 6-1.1-13.1.3, etse .,and
South Bend PA IclpalCode Sec. 2-76 at See.• for this petition state the above.
For Staff Use Only Below This tine
whu la wecunem ameedwhw?
aaWhapem^-Gov. OwnedPewawm y:
WAatb the pmleated naemd value]
aealft"ot, venaae Mpenr:
wham we mxev numee6P wlaPnleaa 018-3017-0628,018-3017-0629,01&3017-0631.019-3011-0632
what If the ala dig It NAICS ado?
Please seam a Qude map and street clew W M.woulan.
plmmlln theamemsalmbnd penpnal property oxe
paid Nr the IM Aw wan Mei ado IMM..
Real pmperaYTaaee Peaaml Aa int famed
wwone
0
Year Two
Ynr Trne
renin..
I., File
Please RII out the following Public Banant Summary Inlolmation and add to bbl ham ah done.
erN olnY
PWna
Public BeneOtltem;
Pmlea Bebbd:
A. Redevelop a Site that h. special Needs
49
B. Develop Based on I UnWnl yResearch
35
C. AchleveaPhvslnl Element of aptan
36
36
$ubaabl Protea Related:
36
120
6
Super Site Ptaectf 1palnt Yilary ee fVTVli[IVe1
A. 1W% to 199%
25
B. 200%to 299%
68
C. 3W% to 399%
65
D. 400%and Over
52
Subbbl Supee She PrtBestc
210
7
Par /or lwwklful bahaapustwr.
A. PaY Por OreNalnB or Upgatlln8
14
0. Pa lar l6-50%ol Extension [oN
26
C. Pay far 51-75% of Cabnslon Cort
39
0. Pay for 76100% of Wangle. Cort
52
Sob-mbl Infraslraaure Related:
131
Total from Applicant Section:
385
539
Total ham Staff Section;
)fi
46l
Total Public Benefit Poli:
21
low
BILL NO. 20-27
RESOLUTION NO.
Filed in Clerk's Office
EAUG 1 a 2020
DAWN M. JONES
CITY CLERK, SOUTH SEND, IN
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
505, 507, 511 and 513 S. Michigan Street, South Bend, IN 46601
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A NINE (9) YEAR REAL
PROPERTY TAX ABATEMENT FOR
Commonwealth Development Corporation of America
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas
for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as 505, 507,
511 and 513 S. Michigan Street, South Bend, Indiana, and which is more particularly described as
follows:
LEGAL DESC TO BE ADDED
and which has Key Numbers 018-3017-0628, 018-3017-0629, 018-3017-0631, 018-3017-0632 be
designated as an Economic Revitalization Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing
before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the
area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such
designation is for Real property tax abatement only and is limited to three (3) calendar years from
the date of adoption of the Declaratory Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is qualified for
and is granted Real property tax deduction for up to a period of nine (9) years as shown by the
schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 and
further determines that the petition, the Memorandum of Agreement between the Petitioner and
the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the
Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq.
Year 1 -
100%
Year 2 -
100%
Year 3 -
95%
Year 4 -
90%
Year 5 -
85%
Year 6 -
80%
Year 7 -
75%
Year 8 -
70%
Year 9 -
65%
SECTION III. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approved by the Mayor.
Karen L. White, President
South Bend Common Council
Filed in Clerk's Office .^
AUG I d 20G0
STATEMENT OF BENEFITS I DAWN M. J E
H BEND, IN
REAL ESTATE IMPROVEMENTS CLERK, SOUT
SIM. Farm 61767 (AG110-14)CITY
Prescribed by the Depadment at Lane l Government Finance
This staement is being compkMd for real property Ihatrivallfies under the following Indiana Cade (check one boa):
Redevelopment ar rehabillation of real ntWQ IIIIPIW MMS (IC &1 1-12.10)
ResidenNally dlshessed area (IC &1.1-12.14.1)
INSTRUCTIONS:
1. This statement must besubmihedto Me bodydes/grating the Economo Rewlakaehim Area prior to Me public Ar
information even Me applicant In mak/ng as decision about whether to dasigMN an Economic Revitalization Am,
submdMd to Me desfynafngbody BEFORE Ura redevelopment wmhab itabon of realpmpeny for which the per
?. The Nefammt orbaneMa Pomo mutt be submWedla the designating Doily amt the area desigu aled an ecorromlic
20-- PAY 2e_
FORM SB -f / Real Property
PRIVACY NOTICE
Anylnfx, tionmric•er,Ih•met
of ma and nucAlc+Yab.
p•N to IndhNval •nrploys. by as
fee", "I rn,nae,elm..
a.; n -s t. .
Me mdovafopmenf or reh er ri 322 nor Must a penin delims M claim a deduction.
To de Or a l bee, the a Form 0) days must be Ned with the Co & is anuew to the May rt Mme yew s ma the eddAbn b assessed veluebon Is
made Or mil here anon application
saherthe Mepresent d denadaeumfib al a thepropertyeawas and May
10Ofa ld Aquent"ownerwho
/epso toty adeduc/anes farina deduction
Ma pmsaMeddee Co may Neon application between wait farad Mayf0alanepary Thyear.
4. A prep. shchlb attached
ached t the
ilea mt322IRE provide the Cowry AUWw aimed arprreden brise an Form Cr own year
Tim Form CFl�Rea
Property should tre mYerlratl to the Fprtn 322RE wean IM deduction is full clainretl and (hen updaed annually rw epc0 yew the deduction is epp/kab/o.
Ic aa. f -1z 1-s. f(eJ
5. For a Fomr SiNfyRea Propady, that Is appmved afar June 30, 2013, the des,pnefing body b required to establish an abalement schedule far each
dedeclign aebwed. Far a Farm 38-r/Real Properly that u appmved prior to July f, 2013, the abawmant schedule approved by the deslgnabrg body
remains in inti IC IN? .1-12,147
Development Corporation of America
.area. a ,n.aarer;nwMerwdaasa Dry wee, ad 2rPtma
447 University Ave. Suite 210, Middleton, WI 53562
_�
."Pamn
Irmm numMr
"am"
E-"'b�0mv
Jonathan Nesburg
( 360.71$6
l.nesburg@commonwealthco.net
SECTION-.
N•ma c!J•4]naunp bogy
i—" 0 rause
City of South Bend, Indiana
+°^ P,oRrW
unry
LGF lannp abNcl number
505, 507, 511 and 513 S Michigan
St. Joseph
•.m.aonbroei pumemmp,.vamena.rea.vNapmenr,.r mlwonwtl.nrym•dden.0
aaetr•Ineussuy) veil d.m(mome,, day. wed
8/16/2021
eve construction of 60 affordable rental units targeting tenants at or below W 1. of AMI am•radcono. mdeelne-A day, real
9118/2022
comm number sear.. Numd,r.rvW m„e
alarm. Number aedltlon.l Sierra.
SECT(�N ESTIMATED TOTALCOSTAND
2 57,694
VALUE OF PROPOSED
REAL ESTATE IMPROVEMENTS
COST I ASSESSEOVALNE I
I current values
10
L Rus estimated values orproposed project
I 0041445 i
Lass values of any property, being replaced
I I i
Net estimated values upon ea Non of J11,041,445
SECTICq 5 WASTE CCNVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solld waste converted (pounds)
Estimated hazardous waste converted (pounds)
banenh
SECTION 6 TAXPAYER CERTIFICATION
I hereby ixrat the representations in this statement ere true.
Sicn>rum, ar
a-A—md(madap Nu.Iau
6/1712020
_
Pbni.e names r.amw.mlal'.
mVe
Kristi Morgan
Authorized Agent
Pagel oft
FOR USE OFTHE DESIGNATING BODY
We Ind mal the applicant meals the general standards In the resolulan adopted or to be adopted by this body. Said resolullon, passed or to be waged
under IC 6-1.1-12.1, provides for the fallowing Hrtlleaons.
A. The deslgrolM area has been limited to a period of time not to exceed calendar years' Idea be/w9. The date this dealgnarlor
expire. Is
B. The type of deduction that Is allowed In the designated area is 3mlted to:
I. Redevelopment lir rehabliallon of reel estate Improvements ❑Yes ONO
2. Residentially dlabassed areas 0Yes ONO
C. The amount of the deduction applicable Is limited to S
I Other limitations or conditions (specify/
I Number of years allowed: Year 1 0 Yen 2 Year 3 0 Year4 0 Year 9 ('see below)
Years 0Yew 7 Years 0Year 9 0Year 10
F. For a statement of banalls approved after June 30, 2013, do this designating body adopt an abatement schedule par IC 6-1.1-12.1477
0 Yes ❑ No
If yes, attach a copy of the abatement schedule to this form.
If no, the designating body is required to establish an abatement schedule before the deduction can be determined
Yee have also reviewed the Informatlon contalrad in the statement or baneNs and Sstl that the estimates and expectations we reasonable and have
determined that the totality of benefits Is sufficient to justify Ne deduction described shove.
Anil(srpmfen and a)b ofaulrrMsd sumac 0 daansatma away)
ideeHege nuel
( )
pale demd source, day, 1'a ad
PrlMad num el auevnW mrnHu of deriYmenY body
Noma of deggnailnl body
Alleged by (eranaNn and Ifle dreaaare4
Pdnleg corse glaaewur
'If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a r
taxpayer is anlllled to recelve a deduction to a number of years that b less then the number of years designated under IC G1.1-121-17.
A. For residentially distressed areae where the Form S6 li Property was approved prior to July 1. 2013, the deductions aslabllshad In IC
6-11-12.1.4.1 rea In In e6ed. The deduction period may not exceed live (9) years. For a Form SS-I/Real Property that is approved after June 30. '
2013, the designating body is hall to establish an abatement schedule fureach deduction allowed. The deduction period may not exceed len
(10) yams. (See IC &1.1-12,1-17 below)
I For the redevelopment or reheblliaupn of real property where the Farm S13-1fReal Property was approved prior to Jury 1, 2013, the abatement
schedule approved by the designating body remains In staged For a Fano SB-tJReal Property that is approved after June 30, 21113, the designating
body le required to establish an abatement schedule for each deduction elevate. (See IC 6-1.1-12.1-17 below.)
IC 0-1.1-12.1-17
Abatement schedules
Sao. 17. (a)A designating body may provide to a business that Is established In lir relocated to a revitalization area and that receives a deduction under
section 4 or 4.6 of this chapter an abatement schedule based on the fotiawing (adore:
(1) The total amount of the taxpayer. Investment in real and personal property.
(2) The number fnew full-time equlValent jobs created.
(3) The average wage or the new emptoyeas compared to the stale minimum wage.
(4) The Infrastructure requirements for the taxpayers Investment.
(b) This subsection applies Is a statement o1 benefits approved ether June 30, 2013. A designating body snall establish an abatement schedule
for each deduction allowed under this chapter. An abatement achodula must specify the percentage amount of the deduction for each year of
the deduction. An ebaemenl schedule may not exceed len (10) years.
(c) An abatement schedue approved for a particular taxpayer before July 1,2013, remains In effect until the abatement schedule expires under
the terms of the resotulicn approving the taxpayers statement orbital
Page 2 of 2
TOP: View looking southwest from intersection of E. Monroe Street and S. Michigan Street at northeast
corner of subject site
BOTTOM: View looking northwest from southeast corner of subject site
LEXINGTON REALTY SERVICES K5.50L511 and 513 South.'Aichigan Street South Bend IN 16
TOP: View looking northeast from the southwest corner of the subject site
BOTTOM: View looking southeast from the northwest corner of the subject site
IEAIMGTOM REALTY SERVICES ;C11 _o' 411 and 11" =nia>' tAlt.rigir SheW Scut genu " - 7
TOP: View south on S. Michigan Street with subject site on the right
BOTTOM: View north on S. Michigan Street with subject site on the left
EENINGTGN REALTY SERVICES K5,50", 511 and 513 South Nlichigan Street. South Bend_ IN 18
TOP: View east on E. Monroe Street with subject site on the right past building
BOTTOM: View west on E. Monroe Street at intersection with S. Michigan Street and subject site on the
left
tIYINGTGNREALTY SERVICES