HomeMy WebLinkAboutBill No 22-30 Resolution Confirming RP Tax Abatement for 3585 Moreau Ct �y�ur 6
u c
File i, ! k's Office
CITY OF SOUTH BE D 202 '
COMMUNITY INVESTMENT DA-Wii 1.:iONFS
f CITY CLERK,SOUTH BEND,IN
June 22, 2022
Councilmember Rachel Tomas Morgan, Chairperson
Community Investment Committee
South Bend Common Council
4t' Floor, County-City Building
South Bend, IN 46601
Dear Councilmember Tomas Morgan,
Attached please find a proposed form of resolution approving a waiver of noncompliance,pursuant
to Indiana Code 6-1.1-12.1-11.3, for Toyo Seiko North America Inc.
The Company filed a Form CF-1/RP and CF-1/PP with the City of South Bend in 2021 and 2022,
however, the Company inadvertently did not file the Form 322 with the St. Joseph County
Auditor's office in 2021 and 2022 related to the Real Property tax abatement. After realizing the
omission, the company filed the appropriate forms with the Auditor's office this month.
The company is requesting that the Common Council waive noncompliance with the filing
deadline for omitted Form 322 in 2021 and 2022.
The Department of Community Investment endorses and supports this waiver as the Company has
been on track with their abatement milestones. The initial projection associated with building
improvements was $1.6 million and the actual cost through December 31, 2022,was$2.1 million.
The project has met the employment representation stated in the original petition for tax abatement
from when the project began operating, until the present date.
Additionally, the company has also requested an extension on its existing Personal Property
abatement,as shipping costs and unexpected supply chain issues have delayed the purchase of new
equipment for the South Bend facility. We recommend amending the existing designating and
confirming resolutions to extend the designation period for the personal property tax abatement to
November of 2024.
We ask that the attached resolution be referred to the Community Investment Committee for an
advisory recommendation and then heard at the Common Council meeting to be held on June 26,
2022.
EXCELLENCE ACCOUNTABILITY . INNOVATION INCLUSION EMPOWERMENT
1400S County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov
CITY OF SOUTH BEND COMMUNITY INVESTMENT
A representative from Toyo Seiko will be present at the meetings. Should you require additional
information, please let me know.
Sincerely,
Caleb Bauer
Acting Executive Director
Department of Community Investment
Attachments
CC: Larry Catanzarite, Toyo Seiko North America Inc.
Sandra Kennedy, Corporation Counsel
Page � 2
Filed it I-Iprk's Office
BILL NO. 22-30 JUN 2 L Z0122
L_._. —
RESOLUTION NO. 4963-22 DAWN M.JONES
CITY CLERK,SOU i H BEND, IN
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
3585 MOREAU CT., SOUTH BEND, INDIANA 46628
FOR
Toyo Seiko North America Inc.
WHEREAS, on December 9, 2019, the Common Council of the City of South Bend (the
"Common Council") adopted Resolution No. 4832-19 (the "2019 Resolution"), approving a six
(6) year real property tax deduction for a new industrial building located at 3585 Moreau Ct.,
South Bend, IN 46628 (the "Building") by Toyo Seiko North America Inc. , Inc. or "Taxpayer",
within an area located in the City of South Bend that had been designated an economic
revitalization area in accordance with IND. CODE § 6-1.1-12.1-1, et seq.;
WHEREAS, as part of Toyo Seiko North America Inc. deduction application, Toyo Seiko
North America, Inc. described for the Common Council that Toyo Seiko North America, Inc.
would by the end of the three(3) year designation period(a) invest$1,600,000 on construction of
a new industrial building, (b)retain four(4)jobs and create, at least, one(1)job;
WHEREAS, Toyo Seiko North America Inc. completed a construction of 26,000 S.F.
building and has met all objectives in its deduction application;
WHEREAS, while Toyo Seiko North America, Inc submitted its CF-1/RP form to the City
of South Bend Department of Community Investment in May 2021 and May 2022, the company
inadvertently failed timely and properly to file the Application for Deduction from Assessed
Valuation of Structures in Economic Revitalization Areas ("Form 322/RE") and the related
Compliance Statement of Benefits Real Property Deduction("CF-1/RP")to the St. Joseph County
Auditor;
WHEREAS,the Common Council recognizes that(a)Toyo Seiko North America, Inc. has
fulfilled its pledge to construct a new industrial building; (b)Toyo Seiko North America, Inc. has
requested a waiver of its inadvertent oversight for filing of the Application Forms in the wrong
office to claim benefits of the tax deduction for the first year of the tax deduction, which the
Common Council has the power and authority to approve under Indiana law, and(c) Toyo Seiko
North America, Inc would have been entitled to receive the tax deduction for the first two years of
the deduction period had no noncompliance event occurred;
1
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 or
erroneous filing of an application form to be waived; and
i
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) progress towards satisfying its obligations detailed in its original
Statement of Benefits and its application for tax deduction related to the building construction
located at 3585 Moreau Ct, South Bend, Indiana (the "Property"), and (b) inadvertent oversight
leading to a belated filing or filing in the incorrect office of the Form 322/RE "Application for
Deduction from Assessed Valuation of Structures in Economic Revitalization Areas"to claim the
benefits of a tax deduction for the January 1, 2021 assessment date of the Property.
SECTION 2. The foregoing facts, taken together, lead the Common Council to conclude
that the Taxpayer has substantially fulfilled its projected plans to purchase, improve, and conduct
operations at the Property contemplated as part of the 2019 Resolution(the"Deduction") and that
its belated/errant filing of an application required to claim the benefits of the Deduction as of for
taxes due and payable in 2021 and 2022 was inadvertent.
SECTION 3. The Common Council hereby waives all matters 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 the Deduction on its investment
contemplated as part of the 2019 Resolution as of the January 1, 2021 and January 1, 2022
assessment dates, all as is permitted under IND.CODE § 6-1.1-12.1-11.3 (including specific waiver
of any and all nonconformities relating to the requirement, under IND. CODE § 6-1.1-12.1-5 that
economic revitalization area deduction applications be timely filed with the county auditor to claim
property tax deductions for the 2021-Pay-2022 and the 2022-pay-2023 tax year).
SECTION 4. The Common Council incorporates herein by reference, and hereby ratifies
and reaffirms: (a)the 2019 Resolution; (b)the tax deduction 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.
Sharon L. McBride, Council President
South Bend Common Council
2