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HomeMy WebLinkAbout5014-23 Confirming a Declaratory Resolution for Property: 213 West Washington St. SB, IN United States of America *#** * # A,*. - 1,11_,E0 i I i., APR 1 4 2023 AUDITOR • ST. JOSEPH COUNTY Certificate -RECEEVE i APR 142023 STATE OF INDIANA, COUNTY OF ST. JOSEPH, SS: ST. JASSES ORUNTY I, Dawn M. Jones, Clerk of the City of South Bend, County of St. Joseph, Indiana, hereby certify that the attached and foregoing is a full, true, and correct copy of RESOLUTION 5014--23 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 213 WEST WASHINGTON STREET, SOUTH BEND, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) REAL PROPERTY TAX ABATEMENT FOR APARTMENTS AND COMMERCIAL SPACE AT TOWER AT WASHINGTON SQUARE LLC ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,APRIL 10, 2023 PRESENTED TO, APPROVED AND SIGNED BY MAYOR JAMES MUELLER, APRIL 13, 2023 ATTEST: SHARON L. MCBRIDE, PRESIDENT OF THE COMMON COUNCIL ATTEST: DAWN M. JONES, CITY CLERK the original of which is now on file in the office of the Clerk of the City of South Bend, St. Joseph County, Indiana. IN WITNESS WHEREOF, I have hereunto set my hand andiffixed the official Seal of the City of South Bend, St. Joseph County, Indiana, this /I/2'k day of TL�Odd 20023 Dawn M. Jones Clerk of the City of South Bend St. Joseph County, Indiana By: /Ad/1,/ /A_, 40 , De'uty RESOLUTION No. 5014-23 Passed by the Common Council of the City of South Bend, Indiana April 10, 20 23 teetZeZ 2t. '?e1-4) Attest: City Clerk Dawn M. Jones Attest: `J' `4AirK ' M y President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 11 , 20 23 City Clerk Dawn M. Jones Approved and signed by me o r• I I l 20 v) Mayor BILL NO. 23-17 RESOLUTION NO. 5014-23 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 213 West Washington Street, South Bend, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT- YEAR (8) REAL PROPERTY TAX ABATEMENT FOR Apartments and Commercial Space at Tower at Washington Square LLC 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 described as: Key Number: 71-08-12-110-024.000-026 Commonly Known As: 213 West Washington Street, South Bend, IN 46601 Legal Description: R-1 Apartments Lots 239 & 240 & Vac Alley W & Adj OP w 32.3% int in common areas 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, 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 mixed-use development 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 eight (8) years as shown by the schedule outlined below 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 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6 - 75% Year 7 - 70% Year 8 - 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. A fox N c - Sh McBride, Council President South Bend Common Council Attest: idel, . /),z_vj Dawn M. Jones, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the CiSy of South Bend, to the Mayor of the City of South Bend, Indiana, on the //& day of , 2023, at /1 o'clock pl, .m. ?X �� Cal eDawn M. Jones, City Clerk Office of the City Clerk Approved and signed by me on the 13t day of /if i•1 , 2023,at 2 o'clock ftm. Jame u' eller, Mayor City f South Bend Filed in Clerk's Office APR 0 3 2023 ,'3' STATEMENT OF BENEFITS 1 REAL ESTATE IMPROVEMENTS DAWN M. JONES 20— PAY 20 Form61787(Ra!15-141 1CITY CLERK, SOUTH BEND, IN FORM SB-1/Real Property .._- Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is oeing completed for real property that qualifies under the following Indiana Code(check one bot'): Any information n-r,ncernlnp ilii,volt 8 Redevelopment or rehabilitation of reel estate Improvements(IC 6-1.1-12.1-4) id t aelivttf end specific salvoes pro r i own r roeemptat ens by tho Residentially distressed area(IC 6.1.1-12.1.4.1) roporty owner In rgnr,lenlinl per ICs-I112tat INSTRUCTIONS: — - 1, This statement must be submitted to the body designating the Economic Revitalization Area pnor 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 reel 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 malted to 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 appl/cation between March I 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 end then updated annually for each year the deduction Is applicable. IC 6.1.1-12.1-5.1(b) 5. For a Form SB-i/Real Property that is approved after June 30. 2013, the designating body le required to establish an abatement schedule for each deduction allowed. For a Form SB-i/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 The Tower at Washington Square LLC Address of taxpayer(number end street,ole.i state,end Zie code) 5-44 47th Avenue,4th Floor, Long Island City, NY 11101 Nome of contact person Telephone number E-mail address ( ) 718-786-5555 mkazanas1969@gmail.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Na of desvgnaliru tmocy Resalutir n number j (� �(t Common Council of South Bend OW-2,3 L' 11° County DUO taxing district number 213 West Washington Street,South Bend, IN 46601 St.Joseph 026 Lescripiian of reel a open),improvements,re tc nloprnnnl,ar,ehnhadntien(uso ar(rtrrnnul sheets el necassery) Estimated start date(month,day,year) 04;15/2023 Develop—90 apt units, addtl meeting/event spaces and 7th floorbar/lounge/event venue Estimated completion date(month,day,year) 04/15/2024 SECTION 5 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Curent number Sol^r,,,, Number'maned Seleries Numberaddltionel Salaries () 9 avg—$36,000 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS 1 COST ASSESSED VALUE_ Current values 11100000 1494200 Plus estimated values of proposed project 114700000 1_ Less values of any property being replaced 0 I Net estimated values ur com•letion of fir 'act 15800000 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of au r000ed legtenefllnlinn ,, Date signed(month,day,year) ;2! z .�L l v�. /r . .4. I—,; /1� 03/20/2023 minim/name or nuthonteti representative Title Liberty Angeliades Manager Page 1 of 2 - FOR USE OF.THE bESIONATINt3 BODY• ' We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 8-1.1-12. 1 provides for the following limitations: A. The designated area has been limited to a period of time not to exceed -' calendar years'(see below). The date this designation expires is 113/2772026 B. The type of deduction that is allowed In the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements 0 Yes 0 No 2.Residentially distressed areas ❑Yea 0 No C. The amount of the deduction applicable is limited to$ N/A D. Other limitations or conditions(speclty)_ N/A __ E. Number of years allowed: 0 Year 1 O Year 2 C,Year 3 IC Year 4 El Year 5 ("see below) 1 ❑Year 8 ID Year 7 Year 5 ❑Year 0 0 Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177 O Yea O No If yea,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 end have daterrnlned that the totality of benefits is sufficient to Justify the deduction described above. Approver(signature Ittlesulhosized member of deslgnii/ng body) Telephone number 1 Dale slined(month,day,year) (g.W)a34--&'4V 1lD/.e0-2� Prinllt\, a of flhod member of designating body Ns of dee pnean/p�ody /� f h I -17--(4 d (�Y �dlx•w4-s- IJ' ��!r�G��i✓i AN stud b (a•nrfure an. Ile els 4 / Prl . •name• e ter i ' I,, zi, i, ' dI /:.% i� a%/I/ /14.1 /.'., A/ //, 00 'If the designs fi�'�•odyIm Te time•= od• ' hich an rea Is an e • omit revitalize Ion area,that limitation does not limit the length of time a taxpayer is anti ad 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 restdenllaty 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 erect.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 6.1,1-12.1-17below.) B. For the redevelopment or rehabil talion of reel property where the Form SB-1/Real Property was approved prior to July 1,2013,the ebetement schedule approved by the designating body remains In effect.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.(See IC 8-1.1-12.1-17beiow.) I IC 8-1.1-12.1-17 Abatement schedules Sec.17.(a)A designating body may provide toe 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 reel 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 e statement of benefits approved after June 30,2013. A designating body shag 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 affect until the abatement schedule expires under the terms of the resolution approving the taxpayers statement of benefits. Filed in Clerk's Office I Filed in Clerk's Office APR 0 a 2023 1 MAR 2 1 202:1 DAWN M.JONES _ CITY CLERK.SOUTH BEND, IN DAWN ty; JONES CITY CLERK,SOCITITBEND,IN Page 2 of 2 MEMORANDUM OF AGREEMENT (INDUSTRIAL DEVELOPMENT REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of March 30, 2023, serves as confirmation of a commitment by the Tower at Washington Square LLC (the"Applicant"), pending an April 10, 2023, public hearing, to comply with the project description,job creation and retention (and associated wage rates and salaries) figures contained in its petition, Statement of Benefits, and attachments and this Agreement. 1. Property Associated with the Abatement and Responsibilities of the Applicant. At the time of this agreement, the property is located at 213 West Washington Street, South Bend, Indiana 46601, and has Key Number 71-08-12-110-024.000-026. Throughout the duration of the abatement, the Applicant shall promptly report any changes in the address or Key Number of the property receiving the abatement to the Department of Community Investment and to the Office of the City Clerk. Moreover,the Applicant also shall report any material changes or improvements made to the property subject to the abatement including changes as the result of subdividing,replatting,or otherwise. The Applicant agrees that failure to promptly report changes can result in a finding of noncompliance on behalf of the Applicant under the commitments of this agreement. 2. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Common Council(the"SBCC"),the City of South Bend, Indiana, (the "City") commits to provide an eight-year (8) mixed-use development real property tax abatement for the Applicant, based on the Applicant's commitment set forth in its Application. The Applicant commits to the following(the"Commitments"): (a) making total combined real property expenditures of no less than Fourteen Million Seven Hundred Thousand dollars ($14,700,000.00)for the construction of approximately 90 apartments at a parcel identified by Key Number 71-08-22-103-005.000-026; (b) creating approximately nine (9) permanent full-time jobs with a total estimated annual payroll of$306,000 within three(3)years of the tax abatement; and (c) acting in good faith to complete the project as described in its Application. 3. Applicant's Compliance with City and Slate Laws. During the term of the abatement, the Applicant shall comply with Chapter 2, Article 6, of the South Bend Municipal Code, entitled "Tax Abatement Procedures," and all governing provisions of the Indiana Code. During the term of this abatement,the City may annually request information from the Applicant concerning the nature of the Project,the approved capital expenditure of the Project, the number of full-time permanent positions newly created by the Project,and the average wage rates and salaries(excluding benefits&overtime) associated with the positions, and the Applicant shall provide the City with adequate written evidence thereof within fifteen (15) days of such request (the "Annual Survey"). The City shall utilize this information and the information required to be filed by the Applicant in the CF-1 Compliance with the Statement of Benefits form to verify that the Applicant has at all times complied with the Commitments after the Commitment Date and during the duration of the abatement and for no other purpose. The 1 Applicant further agrees to provide the City with such additional information as requested by the City to determine Applicant's compliance with the Commitments and with local and state requirements within twenty(20)days following any such request.Notwithstanding anything herein to the contrary, the Applicant acknowledges that the City may be required to disclose certain documents provided by the Applicant as required by a court order or applicable law. 4. Substantial Compliance and Rights of Termination. The City, by and through the SBCC, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it reasonably determines that the Applicant has not made reasonable efforts to substantially comply with all the Commitments, as defined in Section 2 of this Agreement, and the Applicant's failure to substantially comply with the Commitments was not due to factors beyond its reasonable control, as described in Section 5 below. 5. Factors Beyond Control. As used in this Agreement, factors beyond the control of the Applicant shall only include factors not reasonably foreseeable at the time of designation application and submission of Statement of Benefits which are not caused by any act or omission of the Applicant, and which materially and adversely affect the ability of the Applicant to substantially comply with this Agreement.Applicant has the burden to communicate to the City any such factors in which it believes is beyond its control and impacting its ability to fulfill the terms of this Agreement or any tax abatement benefit provided to the City. The City reserves the right to investigate the factors cited by Applicant under this Section 5 to the fullest extent possible and may deny Applicant's request upon the completion of the City's investigation. 6. Repayment of Tax Abatement Savings. If at any time during the term of this Agreement the Applicant shall: (a) be delinquent or in default with respect to any tax payment in St. Joseph County, Indiana;or(b)cease operations at the facility for which the tax abatement was granted;or(c)announce the cessation of operations at such facility, then the City may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require Applicant to repay all of the tax abatement savings received through the date of such termination. 7. Notice/Hearing of Termination. In the event that the City determines that the Economic Revitalization Area designation and associated tax abatement deductions should be terminated or that all or a portion of the tax abatement savings should be repaid, it will give the Applicant notice of such determination, including a written statement calculating the amount due from the Applicant, and will provide the Applicant with an opportunity to meet with the City's designated representatives to show cause why the abatement should not be terminated and/or the tax savings repaid. Such notice shall state the names of the person with whom the Applicant may meet and will provide that the Applicant shall have thirty (30) days from the date of such notice to arrange such meeting and to provide its evidence concerning why the abatement termination and/or tax savings repayment should not occur. If, after giving such notice and receiving such evidence, if any, the City determines that the abatement termination and/or the tax repayment action is proper, the Applicant shall be provided with written notice and a hearing before the SBCC before any final action shall be taken terminating the abatement and/or requiring repayment of tax benefits. The Applicant shall be entitled to appeal that determination to a St. Joseph County Superior or Circuit Court. 2 8. Repayment. In the event the City requires repayment of the tax abatement savings as provided hereunder, it shall provide Applicant with a written statement calculating the amount due (the "Statement"),and Applicant shall make such repayment to the City within one hundred twenty (120) days of the date of the Statement. If the Applicant does not make timely repayment,the City shall be entitled to all reasonable costs and attorneys' fees incurred in the enforcement of this Agreement and the collection of the tax abatement savings required to be repaid hereunder. 9. Modification/Entire Agreement. This Agreement and the schedules attached hereto contain the entire understanding between the City and the Applicant with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings, inducements, and conditions, expressed or implied, oral, or written, except as herein contained. This Agreement may not be modified or amended other than by an agreement in writing signed by the City and the Applicant. The Applicant understands that any and all filings required to be made or actions required to be taken to initiate or maintain the abatement are solely the responsibility of the Applicant. 10. Waivers. Neither the failure nor any delay on the part of the City to exercise any right,remedy, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right,remedy,power, or privilege preclude any other or further exercise of the same or of any other right,remedy,power,or privilege with respect to any occurrence or be construed as a waiver of such right, remedy, power, or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 11. Governing Laws of Indiana. This Agreement and all questions relating to its validity, interpretation,performance,and enforcement shall be governed by the laws and decisions of the courts of the State of Indiana. 12. Applicant's Consent to Jurisdiction. The Applicant hereby irrevocably consents to the jurisdiction of the Courts of the State of Indiana and of the St.Joseph County Circuit or Superior Court in connection with any action or proceeding arising out of or relating to this Agreement or any documents or instrument delivered with respect to any of the obligations hereunder, and any action related to this Agreement shall be brought in such County and in such Court. 12. Notices, All notices, requests, demands, and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been received when delivered by hand or by facsimile (with confirmation by registered or certified mail) or on the third business day following the mailing,by registered or certified mail,postage prepaid,return receipt requested,thereof, addressed as set forth below: If to Applicant: The Tower at Washington Square LLC 511 W tom f1veniw k Lo,JC l rMO) 41 Al l i I O I Attn: � S= ry A p6E'.,DES 3 If to the City: ity of South Bend, Indiana 27 W.Jefferson Boulevard, Suite 1400S +outh Bend,Indiana 46601 Attn: Executive Director of Community Investment 13. Assignment and Transfer Prohibited. This Agreement shall be binding upon and inure to the benefit of the City and the Applicant and their successors and assigns, except (a) that no party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party hereto, in which consent shall not be unreasonably withheld, and (b) Applicant may assign and transfer its rights under this Agreement to the Permitted Assign without prior written consent. "Permitted Assign" means the affiliated single purpose entity created for purposes of designing, constructing, owning, operating, and maintaining the apartment complex which is the subject of this Agreement. 14. Valid and Binding Agreement. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon,and all of which shall together constitute one and the same instrument. By executing this Agreement, each person so executing affirms that he has been duly authorized to execute this Agreement on behalf of such party and that this Agreement constitutes a valid and binding obligation of the party. 15. Severability. The provisions of this Agreement and of each section or other subdivision herein are independent of and separable from each other,and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part unless this Agreement is rendered totally unenforceable thereby. 16. No Personal Liability. No official, director, officer, employee, or agent of the City shall be charged personally by the Applicant, its employees, or its agents with any liabilities or expenses of defense or be held personally liable to the Applicant under any term or provision of this Agreement or because of the execution by such party of this Agreement or because of any default by such party hereunder. [Remainder of page intentionally blank.] 4 IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the day and year first above written. "Applicant" City" The Tower at Washington Square LLCCity of South Bend, Indiana y: 4.01 IB b>(_ V\1\TO-4d/v' Liberty Angeliades Sharon McBride Manager President, South Bend Common Council The Tower at Washington Square LLC By: ZIAid -1161/1648,A.., • pproved as to Legal Adequacy and Form this Rachel Tomas Morgan _ /0/-/-t day of4i/ , 2023. Chairperson, Community Investment ((// Committee ounsel. South Bend Common Council By:/1/ //a441-A-e/ _ Erik Glavich Department of Community Investment Counsel for Applicant By: /111/9"%•-"'..°-- James Mueller Mayor [Attachment follows.] 5