HomeMy WebLinkAboutBill No. 23-06 Tax Abatement Property 536 S. Main St SB, IN 46601Fiy k' `dice
FEb 2 2 *an
BILL NO. 23-06
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RESOLUTION NO. 5005-23 EHKoONES
CITY
JONES
H BEND, IN
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN
THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS
536 South Main Street, South Bend, IN 46601
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-
YEAR (8) REAL PROPERTY TAX ABATEMENT FOR
SoMa Capital LLC
WHEREAS, a petition for real property tax abatement have been filed with the City Clerk
for consideration by the Common Council of the City of South Bend, Indiana, requesting that the
areas described as:
Key Number: 71-08-12-306-006.000-026
Commonly Known As: 536 South Main Street, South Bend, Indiana 46601
Legal Description: Lot 36 Ex 82 1/2 Ft E End Samuel Martins Add
be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6-1.1-
12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq.; and
WHEREAS,petitioner has agreed to and has accepted responsibility to report any changes
in the Key Number and legal description to the Department of Community Investment and to the
Office of the City Clerk; and
WHEREAS,the Department of Community Investment has concluded an investigation and
prepared a report with information sufficient for the Common Council to determine that each area
qualifies as an Economic Revitalization Area under Indiana Code § 6-1.1-12.1 et seq., and South
Bend Municipal Code Sections 2-76 et seq., and has further prepared maps and plats showing the
boundaries and such other information regarding the area in question as required by law; and
WHEREAS,the Community Investment Committee of the Common Council has reviewed
said report and recommended to the Common Council that the area qualifies as an Economic
Revitalization Area.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds that the Petitions for Real
Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the
requirements of Indiana Code § 6-1.1-12.1 et seq. for tax abatement.
SECTION II. The Common Council hereby determines and finds the following:
A. That the description of the proposed redevelopment or rehabilitation meets the
applicable standards for such development;
B. That the estimate of the value of the redevelopment or rehabilitation is reasonable
for projects of this nature;
C. That the estimate of the number of individuals who will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result from the
proposed described redevelopment or rehabilitation;
D. That the estimate of the annual salaries of those individuals who will be employed
or whose employment will be retained by the Petitioner can be reasonably expected to result from
the proposed redevelopment or rehabilitation;
E. That the other benefits about which information was requested are benefits that can
be reasonably expected to result from the proposed described redevelopment or rehabilitation; and
F. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requirements of Indiana Code § 6-1.1-12.1-3.
SECTION III. The Common Council hereby determines and finds that the proposed described
redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the
Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement
Consideration and the Memorandum of Agreement between the Petitioner and the City of South
Bend, and that the Statement of Benefits form completed by the petitioner, said form being
prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under
Indiana Code § 6-1.1-12.1-3.
SECTION IV. The Common Council hereby accepts the report and recommendation of the
Community Investment Committee that the area herein described be designated as an Economic
Revitalization Area and hereby adopts a Resolution designating this area as an Economic
Revitalization Area for purposes of real property tax abatement.
SECTION V. The designation as an Economic Revitalization Areas shall be limited to three (3)
calendar years from the date of the adoption of this Resolution by the Common Council.
SECTION VI. The Common Council hereby determines that the property owner is qualified for
and is granted property tax deduction for a period of six(8)years as shown by the schedule outlined
below as well as the attachment pursuant to Indiana Code § 6-1.1-12.1-17.
Year 1 — 100%
Year 2— 100%
Year 3 —95%
Year 4-95%
Year 5—90%
Year 6-90%
Year?-85%
Year 8-85%
SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of
this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana
Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public
hearing before the Common Council on the proposed confirming of said declaration.
SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Sharon McBride, Council President
South Bend Common Council
Attest:
Dawn M. Jones, City Clerk
Office of the City Clerk
Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the
City of South Bend, Indiana, on the day of 2023, at
o'clock .m.
Dawn M. Jones, City Clerk
Office of the City Clerk
Approved and signed by me on the day of 2023, at o'clock
m.
Fil ffice
James Mueller, Mayor
FEb 12 66 City of South Bend
DAWN M.JONES
CITY CLERK,SOUTH BEND,IN
TAX ABATEMENT REPORT
TO: South Bend Common Council FEd 2 2 L(12'3
ff
I I
FROM: Erik Glavich, Director, Growth and Opportunity DAWN M.JONES
CITY CLERK, SOUTH BEND,IN
SUBJECT: Multi-Family Residential Real Property Tax Abatement Petition
for SoMa Capital LLC (536 S. Main Street)
DATE: February 22, 2023
On February 21, 2023, a petition for tax abatement from SoMa Capital LLC was filed with the
Office of the City Clerk. The petition seeks consideration for a multi-family residential real
property tax abatement for property at 536 S. Main Street in South Bend, Indiana.
Pursuant to Chapter 2, Article 6, Section 2 84.2 of the Municipal Code of the City of South Bend,
this petition was referred to the Department of Community Investment for purposes of
investigation and preparation of a report determining whether the area qualifies as an Economic
Revitalization Area pursuant to I.C.6 1.1 12.1 and all zoning requirements have been met.
The Department of Community Investment has reviewed the petition (a copy of which is
attached), investigated the area, and makes the following report.
Project Summary
The developer, SoMa Capital LLC, plans to rehabilitate the abandoned apartment
building located at the northeast corner of S. Main Street and W. South Street. Built in
1915, the building has been vacant since a summer 2021 fire (a previous fire had also
occurred) and had fallen into neglect due to serious deferred maintenance.
SoMa Capital LLC will re-develop the building into 12 newly rehabbed apartments
originally there were 8 apartments), totaling over 11,000 square feet and consisting of
four(4) studios, five (5) one-bedroom and three (3)two-bedroom units. The building will
receive all new mechanical, plumbing, fire, and electrical infrastructure. Each unit will
have new HVAC systems and appliances. The building will have new windows, and the
exterior brick facade will be restored.
The building will include at least three (3)affordable units for low-to moderate-income
households at 80% of AMI.
Tax Estimates
The petitioner qualifies for an eight-year(8) multi-family residential real property tax abatement.
Taxes paid in 2022 for the existing property: $5,235
Total estimated taxes during the eight-year(8) abatement period: $342,850
Estimated taxes being abated during the abatement period: $213,157
Estimated total taxes to be paid during the abatement period: $129,693
Employment Impact
SoMA Capital LLC is an entity created with the intent of rehabilitating the property for which this
abatement applies and adjacent properties. The organization does not have any current
employees.
Upon completion of the apartment building's rehabilitation, management of the building
will be handled by the owners directly given their broad experience in building
management (or indirectly with a third-party organization experienced in apartment
management). This apartment building will require maintenance professionals, a
property manager, and landscape services.
The larger project, which incorporates land adjacent to the apartment building,will have
an estimated 25 full-time employees upon its completion. The larger project will include
the creation of an entrepreneur hub/co-working space along with a commissary kitchen
and multiple small retail/entertainment spaces.
Abatement Qualification
1. A review of the tax abatements previously granted, finds that the petitioner has certain
partners who have been granted previous abatements on other properties and all have
been satisfactorily maintained, administered and in compliance.
a. Five-year(5) real property tax abatement; Resolution No. 4622-17; March 2017
2. The property is properly zoned for the proposed project.
3. Taxes on the property have been paid in full.
4. A review of the South Bend Redevelopment designation areas finds that the property is
in the River West Development Area.
5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets
the qualifications for a (8) eight-year multi-family residential real property tax abatement
under Division 2 (Residential Development Real Property Tax Abatement), Section 2-77
Multi-Family Residential Developments).
IF!: ' . " - -^'T{fice
FEb •Z 2 ND
DAWN M.JONES
CITY CLERK, SOUTH BEND,IN
2
8-Year Abatement February 21.2023
SoMa Capital LLC
South Bend Portage Township
Residential Real Property Tax Abatement Schedule
Type of Dwelling: Multi-Family Residence -12 units-
Estimated Project Cost $ 1,965,000 Rehabilitation
Property Address: 536 S Main Street,South Bend,IN 46601
Tax Key Number: 71-08-12-306-006,000-026
Without
Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Assessed Value(AV)
Land 6,600 $ 6,600 $ 6,600 $ 6,600 $ 6,600 $ 6,600 $ 6,600 $ 6,600 $ 6,600 $ 6,600
Structure(Current AV+80%Project Cost) 207,300 1,779,300 1,779,300 1,779,300 1,779,300 1,779,300 1,779,300 1,779,300 1,779,300 1,779,300
Gross Assessed Value 213,900 1,785,900 1,785,900 1,785,900 1,785,900 1,785,900 1,785,900 1,785,900 1,785,900 1,785,900
Abatement 100%100% 95% 95% 90% 90% 85% 85%
Abatement Deduction 1,572,000) (1,572,000) (1,493,400) (1,493,400) (1,414,800) (1,414,800) (1,336,200) (1,336,200)
Net Assessed Value 213,900 1,785,900 213,900 213,900 292,500 292,500 371,100 371,100 449,700 449,700
Property Taxes
Assume constant tax rate of 5.2897%
Gross Tax(Tax Rate x Net AV) 11,315 94,469 11,315 11,315 15,472 15,472 19,630 19,630 23,788 23,788
Local Tax Credit(8.2562%of GT-DS) 864) (7,210) 864) 864) (1,181) (1,181) (1.498) (1,498) (1,816) (1,816)
Circuit Breaker Credit 5,318) (44,402)
Taxes Due 5,133 $ 42,856 $ 10,451 $ 10,451 $ 14,291 $ 14,291 $ 18,132 $ 18,132 $ 21,972 $ 21,972
2% 2% 2% 2% 2% 2% 2% 2% 2% 2%
Circuit Breaker Cap 4,278 35,718 35,718 35,718 35,718 35,7/8 35,7/8 35,718 35,7/8 35,7/8
Debt Service(0.3997%of Net AV) 855 7,138 855 855 1,169 1,169 1,483 1,483 1,797 1,797
Max Tax Under the Cap 5,133 42,856 36,573 36,573 36,887 36,887 37,201 37,201 37,515 37,515
Combined
Year Abatement
Current Taxes New Net Taxes
Current& Taxes Abated
Due Projected Tax Paid
New Taxes
1 . 100% $ 5,133 $ 37,723 $ 42,856 $ (32,405) $ 10,451
2 100% 5,133 37,723 42,856 (32,405) 10,451
3 95% 5,133 37,723 42,856 (28,565) 14,291
4 95% 5,133 37,723 42,856 (28,565) 14,291
5 90% 5,133 37,723 42,856 (24,724) 18,132
6__90% 5,133 37,723 42,856 (24,724) 18,132
7 85% 5,133 37,723 42,856 (20,884), 21,972
8 85% 5,133 37,723 42,856 (20,884) 21,972
Total: 41,064 301,786 342,850 (213,157) 129,693
This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023.f:risk% Department of Community Investment
The true tax values will ultimately be determined by the actual assessed valuation and the then-current tax rates. City of South Bend
City of South Bend t
Petition for Incentives
Petition must include a$250 filing fee payable to the City Clerk's Office
before processing can be complete
r nr
General Information Project Name I Project Numaer
Legal name as registered with Secretary of
SoMa Capital LLC 1StateI rrn rt
Business structurelimited liability
LO L
Company website
n/a
l
neon.q i AA 1r1NCS
Proposed Project Information CITY CLERK,SOUTH BEND, IN
Proposed project address 1536 S. Main Street Parent company name
none
City,State,Zip I South Bend, IN 46601 legal owner
SoMa Capital LLC
Site acreage or acreage required
0.25 acres Is the real estate owned or Owned
3•
Square feet of facility j11,212 If leased by whom
Primary Contact Information
Primary company contact name Mark Neal Title Co-Manager
Addressor company contact 321 S. Main St.,#306 Phone 574-339-9406
City,State,Zip South Bend, IN 46601
Email
mneal@bradleyco.com
Senior Official Information
Company senior official name Title
same as above
Address of company contact(if different from Phone
above!
City,State,Zip Email
Consultant Information/Agent
Hired business consultant/agent name
era
Consultant release(Y/N)
Address Local economic development partners
approval(Weil
City,State,Zip Email
Project Overview
Brief description of your
Redevelopment of a 1915 downtown apartment building which fell intocompany,project,and why the
property is necessary for neglect due to seriously deferred maintenance and two fires in the last
economic growth 5 years. Building would be expanded to 12 units (originally 8) with
restored brick facade and completely new infrastructure of plumbing,
electric, HVAC systems and new appliances. Leasing would target
entrepreneurs or other innovation focused individuals (emerging small
business owners) and include 20% affordable units at 80% AMI. This
smaller residential development proximate to city resources (jobs,
entertainment, leisure activty) will provide an enhanced community
experience with greater population density to improve livability, safety
and downtown dynamism.
Certified Technology Park appropriate
ri a
Is the project in a Tax Incremental Financing
lTts l area If so.which?
Yes, River West
Have Building Permits been issued?(YIN) INo Number of residential units created by 12
Mete-Not oligiblo for abaromw+r If Yes! 2rni Pd
If this is a petition for personal property tax abatement,has
the.auinment bnnn installed
n/a
Investment Details
Public Infrastructure needs(Off- Has any 504 funding been What is the value of any equipment being purchased in What is the value of arty equipment being
site of project In dollars) received? Indiana for the project? purchased from out of state for the project?
n/a No n/a 0
New Project Investments
Calendar Year 2022 2023 2024 2025 2026 2027 2028 2029
Land Acquisition
II
Building Lease Payments
Building Purchase Costs 4 237;r^,;gip
No.Building Construction
h;.n.!Building Improvements
New Machinery SsEquipment
y'tlN ..JONES
pcc!ai Tooling/Retooling CIN CI,ERK SOUTH B NP,IN
New Furniture/Fixtures 75.000 00
New Computer/FT Hardware 25 C:10,,r.
New Software
On•sitc Rail Infrastructure I I
On•sitc Fiber Infrastructure 15.240 Jr 1
TOTAL s 237 coo 00 r wo m $0.001 $0.00 $0.001 $0.001 $0.00 $0.00
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year lobs retained Total hourly Cumulative B of net NEW full time Hourly average wage,w/o Total training Total B to be
wage w/o permanent jobs created at project benefits or bonuses,of expenditure- trained-not
hinge or cumulative net new jobs not cumulative
bonuses cumulative
2022 n/a
2023
2024
202.5
2026
2027
2024 I
2029
2030
2031
2032
2033
Provide hourly wage information for new employees in the following positions.
Full time Part time
Laborers
n/a
Technical
n/a
Managerial
n/a
Administrative n/a
woo will ne tee motvtdual responsible tor cooramaung With
WorkOne on recruiting?
n/a
Does your company have an EEO hiring policy?'
n/a
Are you an EEO employer? I n/a
Please list the number of full time and part time minority and/or female employees for each of Please describe your commitment to
the last three years: diversity and inclusion by detailing your
outreach and recruitment efforts for the last
Year
2022 2021 70?0 three years as well as current policies.
Full Time Part Time Full Time Part Time Full Time Part Time
Black
N/A
Hispanic
Asian
Indian
Female
Other
Complete below for Real or Personal Property Tax Abatement only.I.....__-
Please sign for all requested incentives. r.)A..', (/ JONES
CITY CLERK, SOUTH BEND, IN
Public Benefit Item:
Information is required on both the construction companies and the
companies which will provide materials purchased for this project.
complete the table below with theQualifyPleaseappropriateinformation. If Earned Points Available Points
Yes or No)
you qualify for the points,please enter the full amount of available
points.
1 Construction Related(Contractors):
A. 'Employ Local Companies(75%) Y 20 20
B. Purchase Materials from Local Companies(75%)Y 20 20
C. Require Employees vs.Independent Contractors Y 19 19
D. Require Prevailing Wage(Davis Bacon)N 22
E. Require Health Benefits Y 22 22
F. Require Retirement Benefts Y 18 18
G Maintain Affirmative Action Plan Y l 20 20
Sub-total Construction Related: 119 141
2 Wage&BeneftRelatedjpwner).
A. Pay Target Wage Levels n/a 33
B. Provide Health Benefits n/a 34
C. Provide Retirement Benefits n/a I 29
0. Provide Training n/a 28
E.
a
Provide Child Care n/a 15
F Provide Transportation Assistance n/a 14
G. Provide Employer Assisted Housing program n/a 9
ISub-total Wage&Benefit Related: 0 162
3 Workforce Related:
A. Create New lobs n/a 42
9. Retain Existing Jobs n/a 41
C. Maintain Affirmative Action Plan Y I 35 35
rry
D. Provide Targeted Hiring Preference 1/a 34
Sub-total Workforce Related: 35 152
4 Support a Municipal Facility:
Support a SB Municipal Facility(donations to the
A. Y 84 84zoo,conservatory,museum,etc.)
Name of Facility
ISub-total Municipal Facility: 3.1 84
Sub-total from Above: 238 539
The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City
of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-11-12.1-1,et seq.,and
South Bend Municipal Code Sec.2-76 et seq.,for this petition state the above.
Submitted By: Mark W. Neal Date: 2/16/23
FEE "i
For Staff Use Only Below This Line 1 LIA. JCSNES
CITY CLERK.SOUTH BEND, IN
What is the current assessed value?Real Property:
I'
1/3,C 00 'Personal Property:
What is the projected assessed value? Real Property-. i. 7 25,90 v Personal Property:
What is the tax key number for this project? I 7/ "46g —Iwa. ^ 3a ^ 006 . 000 — 0 Z y
What is the six digit NAICS code?
tV/41
Please attach a Google map and street view of the location.
Please list the amount of real and personal property taxes I
Real Property Taxes: Personal Property Taxes:
paid for the last five years when applicable.
Year One 2,0 Z 9 CA-) 5.0 1
Year Two 2,021 5 2-33 .714
f
Year Three
Year Four
Zo 19 15.2-07. 36 I
Year Five ' ^ I v 5 ` 3 . 5/ f
Please fill out the following Public Benefit Summary Information and add to total from above.
jY or Ni I Points I Points
Public Benefit Item:
Project Related:
5 A. Redevelop a Site that has Special Needs I 49
B. Develop Based on Local University Research 35
C. Achieve a Physical Element of a Plan 1} 36
ISub-total Project Related:
1,q 120
6
Super Size Projects(point values are cumulative):
A. 100%to 199% N 7-5 25
B. 200%to 299% tI Q 66
C. 300%to 399% 1 10 5 65
D. 400%and Over 1 52- 52
Sub-total Super Size Projects: 2-10 210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing or Upgrading 1 14
R. Pao for 26-50%of Extension
CostII
26
C. pa,for 51-75%of Extension Cost 39
C Pay for 76-100%of Extension Cost 52
Sub-total Infrastructure Related: Q 131
Total from Applicant Section:2-3 7 539
Total from Staff Section: 59 461
Total Public Benefit Points: 9 7 1000
Fit^_: s ''_fifce
451-'
4'
STATEMENT OF BENEFITS FEC [ I 'i J 20 PAY 20_`
i,*at.
REAL ESTATE IMPROVEMENTS
I
State Form 51767(Re 1 10-14) I- FORM SB-1 I Real Property
Prescribed by the Department of Local Government F ance DAWN M.JONES
CI:•CLERK .SOUTH BEND, IN PRIVACY NOTICE
This statement is being completed for real property thatqualifies unde •: • •- • . - -- Any information concerning the cost
o Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) of the property and specific satanes
paid to individual employees by the
Re;idenllaly distressed area(IC 6-1.1-12.1-4.1) property owner Is confidential per
IC 6-1 1-12.t-5.1
INSTRUCTIONS:
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction.
2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of
the redevelopment or rehabilitation for which the person desires to claim a deduction,
3. To obtain a deduction,a Form 322/RE must be filed with the County Auditor before May 10 in the year in which the addition to assessed valuation Is
made or not later than thirty(30)days after the assessment notice is mailed fo the property owner if it was mailed after April 10. A property owner who
failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year.
4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real
Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
IC 6-1.1-12.1-5.1(b)
5. For a Form SB-1/Real Property that is approved after June 30, 2013,the designating body is required to establish an abatement schedule for each
deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013,the abatement schedule approved by the designating body
remains in effect. iC 6-1.1-12.1-17
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer
SoMa Capital LLC
16Address of taxpayer(number and street,city[state,and ZIP code)
15 W. Colfax Avenue, South Bend, IN 46601
Name of contact person Telephone number E-mail address
3r 71 A gir1 C.!'7-cam) 574-286-7119 b.emberton@outlook.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
Common Council of South Bend
Location of property 1 County DLGF taxing district number
536 S. Main St, South Bend, IN 46601 St. Joseph', 026
Description of real property improvements,redevelopment,or rersabihlatxn(use adddsonai sheets d necessary) Estimated start date(month,day,year)
04/01/2023
Redevelopment of a building into 12 new apartments with new electric,gas,water, HVAC aEstimated completion date(month,day,yea')103/31/2024
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current number Salaries Numter retained Salaries Number additional Salaries
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
I COST I ASSESSED VALUE
I Current values 1237000 1213900
Plus estimated values of proposed project 12065000 I
1 Less values of any property being replaced 10 I
Net estimated values upon completion of project 2302000
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
N/A
Estimated solid waste converted(pounds)Estimated hazardous waste converted(pounds)N/A
Other benefits
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature of authorized representativeDate signed(month,day,year)
1
102/21/23
Printed name of authorized representativeTitle
Mark W. Neal ICo-Manager
Page 1 of 2
f.11.1KArv. r
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said res_o:utlon,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A The designated area has been limited to a period of time not to exceed calendar year'(see below,. The date this designation
expires is
B. The type of deduction that is allowed in the designated area is limited to:
1.Redevelopment or rehabilitation of real estate improvements Yes No
2.Residentially distressed areas Yes No
C. The amount of the deduction applicable is limited to$
D. Other limitations or conditions(specify)
E. Number of years allowed: Year 1 Year 2 0 Year 3 Year 4 Year 5 (*see below)
Year 6 0 Year 7 0 Year 8 0 Year 9 Year 10
F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17?
El Yes LI 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. •
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved(signature and title of authorized member of designating body) telephone number Date signed(month,day,year)
Pnnled name of authorized member of designating body Name of designating body
Attested by(signature end title of attester) Printed name of attester
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
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17.
A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1,2013,the deductions established in IC
6-1.1-12.1-4.1 remain in effect.The deduction period may not exceed five(5)years. For a Form SB-1/Real Property that is approved after June 30,
2013,the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
10)years. (See IC 6-1.1-12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1,2013,the abatement
schedule approved by the designating body remains In effect.For a Form SB-1IReal Property that is approved after June 30,2013.1he designating
body is required to establish an abatement schedule for each deduction allowed.(See IC 6-1.1-12.1-17 below.)
IC 6-1.1-12.1-17
Abatement schedules
Sec.17.(a)A designating body may provide to a business Thal Is established in or relocated to a revitalization area and That receives a deduction under
section 4 or 4.5 of this chapter an abatement schedule based on the following factors:
1) The total amount of the taxpayer's investment in real and personal property.
2) The number of new full-time equivalent jobs created
3) The average wage of the new employees compared to the state minimum wage.
4) The infrastructure requirements for the taxpayers investment.
b) This subsection applies to a statement of benefits approved after June 30,2013. A designating body shall establish an abatement schedule
for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of
the deduction. An abatement schedule may not exceed ten(10)years.
c) An abatement schedule approved fora particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under
the terms of the resolution approving the taxpayer's statement of benefits.
FEb C 1 'eliLli
c_1 CLEH''' SOUTH BEND. IN
Page 2 of 2
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FEb 2. 2 •(023
r.5TA7FrATT-----ijoNEs
CITY CLERK SOUTH BEND,IN
City of South Send
Petition for Incentives
Petition must include a $250 filing fee payable to the City Clerk's ice
before processing can be complete
General Information Project Name
ILeplname asregistered with Secretary of SoMa Capital LLCState
Businessstructurelimited liability
Company website n/a
Proposed Project Information
IProposed project address 1536 S. Main Street
ICity, State, Zip ISouth Bend, IN 46601
Site acreage or acreage required
0.25 acres
Square feet of facility 11,212
Primary Contact Information
IPrimary company contact name Mark Neal
IAddress ofcompany contact 321 S. Main St., #306
ICity, State, Zip ISouth Bend, IN 46601
Senior Official Information
Company senior official name same as above
Address of company contact (if different from
Onvol
City, State, Zip I
Consultant Information/Agent
Hired business consultant/agent name 1 n/a
Address I
City, State, Zip
n.n
Project Numl ger
y
rr,rI
I LU L i L;J
I
CITY CLERK, SOUTH [-END, IN
Parent company name
Legal owner
none
SoMa Capital LLC
Is the real estate owned or
Owned
leered
If leased by whom
ritle Co -Manager
Phone
574-339-9406
Email
mneal@bradleyco.com
Title
Phone
Email
Consultant release (Y/N) I
Local economic development partners
aooroval WN
Email
Project Overview
company, project,
on
and Redevelopment of a 1915 downtown apartment building which fell intocompany, project, and why the
property is necessary for neglect due to seriously deferred maintenance and two fires in the last
economic growth 5 years. Building would be expanded to 12 units (originally 8) with
restored brick facade and completely new infrastructure of plumbing,
electric, HVAC systems and new appliances. Leasing would target
entrepreneurs or other innovation focused individuals (emerging small
business owners) and include 20% affordable units at 80% AMI. This
smaller residential development proximate to city resources Qobs,
entertainment, leisure activty) will provide an enhanced community
experience with greater population density to improve livability, safety
and downtown dynamism.
Certified Technology Park appropriate n/a
Is the project in a Tax Incremental Financing Yes, River West
TIF i area? If sn- which?
Have Building Permits been issued? (Y/N)O
I Number of residential units created by 12
rNote-Not elieibla for abatepret If V -1l I oroiect
If this is a petition for personal property tax abatement, has ! n/atheeauipmentbeeninstalledj
Investment Details
Public Infrastructure needs (Off- Has any 504 funding been What is the value of any equipment being purchased in What is the value of any equipment being
site of project in dollars) received? Indiana for the project? purchased from out of state for the project?
n/a No n/a 0
New Proiect Investments
Calendar Year 2022 2023 2024 2025
Land Acquisition
Building Lease Payments
Building Purchase Costs 237,000.00
New Building Construction
Existing Building Improvements 1 350000,0C
New Machinery & Equipment
Special Tooling/Retooling
New Furniture/Fixtures 760D000
New Computer/rr Hardware 25,000.00
New software
On-site Rail Infrastructure
Onsite Fiber Infrastructure 15,000 DL
2026 2027 2028 2029
t r!Ir 5
li
CIIEV'N K ONES
CITY CL EHK. SO;'JTH BEND, IN
TOTAL $ 237,000.00 3>A55.= W $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00
Full -Time Permanent Indiana -Resident Positions by Calendar Year
CalendarYear lobs retained Total hourly Cumulative p of net NEW full time Hourly average wage, w/o Total training Total 4 to be
wage w/o permanent jobs created at project benefits or bonuses, of expenditure - trained - not
fringe or cumulative net new jobs not cumulative
bonuses cumulative
12022 n/a
12023
12024
12025
12026
12027
2028
2029
2030
2031
2032
12033
IProvide hourly wage information for new employees in the following positions.
Full time Part time
ILaborers
n/a
ITechnical
n/a
IManagerial
n/a
Administrative
n/a
Who will be the individual responsible for coordinating with
workOne on recruitine? n/a
Does your company have an EEO hiring policy? i n/a I Are you an EEO employer? I n/a
Please list the number of full time and part time minority and%or female employees for each of Please describe your commitment to
the last three years' diversity and inclusion by detailing your
L. I recruitment efforts for the last
Year
2022 2021 2020 three years as well as current policies.
Full Time Part Time Full Time Part Time Full Time PartTime
Black
Hispanic
Asian
Indian
Female
Other
N/A
r-'FfIGe
F&
Complete below for Real or Personal Property Tax Abatemently. }
Please sign for all requested incentives. DAWN M. JONTCITYCLERK, SOUTH BEND, IN
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 Qualify
Earned Points Available Points
Yes or No)
you qualify for the points, please enter the full amount of available
points.
1 Construction Related (Contractorsl:
A. Employ Local Companies (75%) Y 20 20
B. Purchase Materials from Local Companies (75%) Y 20 20
C. Require Employees vs. Independent Contractors Y 19 19
D. Require Prevailing Wage (Davis Bacon) N 22
E. Require Health Benefits Y 22 22
F. Require Retirement Benefits Y 18 18
G. Maintain Affirmative Action Plan Y 20 20
I
1 (Sub -total Construction Related: 119 141
2 Wage & Benefit Related (Owner):
A. Pay Target Wage Levels n/a 33
B- Provide Health Benefits n/a 34
C. Provide Retirement Benefits n/a 29
D. Provide Training n/a 28
E- Provide Child Care n/a 15
F- Provide Transportation Assistance n/a 14
G. Provide Employer Assisted Housing program n/a 9
Sub -total Wage & Benefit Related: 0 162
3 Workforce Related:
A. Create New Jobs n/a 42
B. Retain Existing Jobs n/a 41
C. Maintain Affirmative Action Plan Y 35 35
D. Provide Targeted Hiring Preference n/a 34
Sub -total Workforce Related: 35 152
4 Support a Municipal Facility:
A.
Support a SB Municipal Facility (donations to the
84
zoo, conservatory, museum, etc.) 84
Name of Facility
Sub -total Municipal Facility: 94 84
Sub -total from Above: 238 539
The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of the City
of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C., 6-1.1-12.1-1, et sea., and
South Bend Municipal Code Sec. 2-76 et seq., for this petition state the above.
Submitted By: IMark W. Neal IDate: 2/16/23
FEB r
For Staff Use Only Below This LineAA n1_!'!G
CITY CLERK, SOUTH iEND, IN
What is the current assessed value? Real Property: I! Personal Property:
What is the projected assessed value? Real Property: I Personal Property:
What is the tax key number for this project?
What is the six digit NAILS code?
I
Please attach a Google map and street view of the location.
Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes:
paid for the last five years when applicable.
Year One
Year Two
Year Three
Year Four
Year Five
Please fill out the following Public Benefit Summary Information and add to total from above.
Y or N I Points I Points
Public Benefit Item:
Project Related:
5 A. Redevelop a Site that has Special Needs 49
B. Develop Based on Local University Research 35
C. Achieve a Physical Element of a Plan 36
ISub-total Project Related: 120
6 I Super Size Projects (point values are cumulative):
A. 100% to 199% 25
B. 200% to 299% 68
C. 300% to 399% 65
D. 400% and Over 52
ISub-total Super Size Projects: 210
7 Pav for MunicioaIinfrastructure.-
A- Pay for Oversizing or Upgrading 14
B. Pay for 26-50% of Extension Cost 26
C. Pay for 51-75% of Extension Cost 39
D. Pay for 76-100% of Extension Cost 52
1
ISub-total Infrastructure Related: I 131
Total from Applicant Section: 539
Total from Staff Section: 461
Total Public Benefit Points: 1000
STATEMENT OF BENEFITS FEt 20_ PAY 20
REAL ESTATE IMPROVEMENTS
State Form 51767 (R6110-14) f 1 FORM SBA i Real Property
Prescribed by the Department of Local Governmenttance DAWN M. JONES
RK SOUTH BEND, IN PRIVACYNOTICE
This statement is being completed for real property thatqualifies urld44'..- 9 -AI Z'X .1 Any information conceming the cost
Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4) ai the papparty and specirx salaries
paid totnddrldual employees by the
Residentially distressed area (IC 6-1.1-12.1-4,1) pertyowneriscantidentiaIper
IC
INSTRUCTIONS:
6-1.11-12.1-5.1.
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise, this statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation ofreal propertyfor which the person wishes to claim a deduction.
2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of
the redevelopment or rehabilitation for which the person desires to claim a deduction.
3. To obtain a deduction, a Form 3221RE must be riled with the County Auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty (30) days after the assessment notice is mailed to the property owner if it was mailed atter April 10. A property owner who
failed to rile a deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year.
4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real
Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
IC 6-1.1-12.1-5.1(b)
5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each
deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body
remains in effect. IC 6-1.1-12.1-17
SECTION•- •
Name of taxpayer
SoMa Capital LLC
Address of taxpayer (number and street city, stale, and ZIP code)
015 W. Colfax Avenue, South Bend, IN 46601
Name of contact person Telephone number E-mail address
1 574-286-7119 b.emberton@outlook.com
Resolution number
Common Council of South Bend
Location of property County DLGF taxing district number
536 S. Main St, South Bend, IN 46601 St. Joseph 02E
Description of real property improvements, redevelopment, or rehabilitation (use addidona)sheets if necessary) Estimated start date (month, day, year)
04/01/2023
Redevelopment of a building into 12 new apartments with new electric, gas, water, HVAC a Estimated oompletion dale (month, day, year)
0313l/2024
Current number
Current values
Plus estimated values of proposed project
Less values of any property being replaced
Net estimated values upon comDlelion of of
NIA
Estimated solid waste converted (pounds)
Other benefits
Number retained iSalaries I Number additional iSalaries
I hereby certify that the representations in this statement are true.
Signature of authorized representative ' `•.
i
Pin ntea name or authonzed representative
Mark W. Neal
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
237000 213900
2065000
0
2302000
Estimated hazardous waste converted (pounds) N/A
Page 1 of 2
Tfle
Co -Manager
Date signed (month, day, year)
02/21/23
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed
under IC 6-1.1-12.1, provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed calendar years' (see below). The date this designation
expires is
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements Yes No
2. Residentially distressed areas Yes No
C. The amount of the deduction applicable is limited to $
D. Other limitations or conditions (speciho
E. Number of years allowed: Year 1 Year 2 Year 3 Year 4 Year 5 (*see below)
Year 6 Year 7 Year 8 Year 9 Year 10
F. For a statement of benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17?
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.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved (signature and title of authorized member of designating body) Telephone number Dale signed (month, day, year)
Printed name of authorized member of designating body Name of designating body
Attested by (signature and fifle of attester) Printed name of attester
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
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17,
A. For residentially distressed areas where the Form S13-1/Real Property was approved prior to July 1, 2013, the deductions established in IC
6-1.1-12.1-4.1 remain in effect. The deduction period may not exceed five (5) years. For a Form SB-1/Real Property that is approved after June 30,
2013, the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten
10) years. (See IC 6-1.1-12.1-17 below)
B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1, 2013, the abatement
schedule approved by the designating body remains In effect. For a Form S13-1/Real Property that is approved after June 30, 2013, the designating
body is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1-12.1-17 below.)
IC 6-1.1-12.1-17
Abatement schedules
Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under
section 4 or 4.5 of this chapter an abatement schedule based on the following factors:
1) The total amount of the taxpayer's investment in real and personal property.
2) The number of new full-time equivalent jobs created.
3) The average wage of the new employees compared to the state minimum wage.
4) The infrastructure requirements for the taxpayer's investment.
b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule
for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of
the deduction. An abatement schedule may not exceed ten (10) years.
c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under
the terms of the resolution approving the taxpayer's statement of benefits.
CZ. fFiCQ
FEB [ 7U
DL
N P.". JONES
CITY CLERK, SOUTH BEND, IN
Page 2 of 2