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HomeMy WebLinkAbout5016-23 Confirming the Declaratory Resolution for Property: 724 & 726 Harrison Ave. SB, IN Tax Abatement United States of America • *** '* -RECEIVED- MAY 0 1 2023 MAY 0 4 2Q23 «N. ST. JOSEPH COUNTY AUDITOR ASSESSOR ST. JOSEPH COUNTY Certificate STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss: 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 5016-23 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 724 HARRISON AVENUE, SOUTH BEND, IN 46616 AND 726 HARRISON AVENUE, SOUTH BEND, IN 46616 AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A FIVE-YEAR (5) RESIDENTIAL REAL PROPERTY TAX ABATEMENFOR CROSS COMMUNITY, INC. ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,APRIL 24, 2023 PRESENTED TO, APPROVED AND SIGNED BY MAYOR JAMES MUELLER, MAY 1,2023 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 ny hand and affixed the official Seal of the City of South Bend, St. Joseph County, Indiana, this /44 day of 203 I Dawn I. Jones Clerk of the City of South Bend St. Joseph County, Indiana BY: 1 /4.(1 � -- ---_-- — • •uty RESOLUTION No. 5016-23 Passed by the Common Council of the City of South Bend, Indiana April 24, 20 23. 4& z. Attest: City Clerk Dawn M. Jones Attest vLa '4/7474,077p-di President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 25, 20 23 ZeierdAZ 24• 00,t1A) City Clerk Dawn M. Jones Approved and signed by me 1441 ' 20 L3 � Mayor BILL NO. 23-19 RESOLUTION NO. 5016-23 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 724 Harrison Avenue, South Bend, IN 46616 AND 726 Harrison Avenue, South Bend, IN 46616 AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A FIVE-YEAR (5) RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR Cross Community, Inc. WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Residentially Distressed Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the areas described as: Key Number: 71-08-02-407-013.000-026 Commonly Known As: 724 Harrison Avenue, South Bend, IN 46616 Legal Description: Lot 2 Kingdom Campus Minor Sub 23/24 NP#1221 6/27/2022 and Key Number: 71-08-02-407-012.000-026 Commonly Known As: 726 Harrison Avenue, South Bend, IN 46616 Legal Description: Lot 1 Kingdom Campus Minor Sub 23/24 NP#1221 6/27/2022 be designated as a Residentially Distressed 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 a residentially distressed 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 determines and finds that the Petition 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 that the area meets one of the following conditions as formally established in Ordinance No. 9394-03, which was passed on February 10, 2003: A. The area is comprised of parcels that are either unimproved or contain only one- family (1) or two-family (2) dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or B. Any dwellings in the area are not permanently occupied and are: i. the subject of an order issued under Indiana Code 36-7-9; or ii. evidencing significant building deficiencies; or C. Parcels of property in the area: i. have been sold and not redeemed under Indiana Code 6-1.1-24 and Indiana Code 6-1.1-25; or ii. are owned by a unit of local government; or D. A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or E. A significant number of dwelling units within the area are: i. the subject of an order issued under Indiana Code 36-7-9; or ii. evidencing significant building deficiencies; or F. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the areas are owned by Indiana or the United States; or G. The area (plus any areas previously designated under this subsection) will not exceed ten percent(10%) of the total area within the Council's jurisdiction. SECTION III. The Common Council also hereby determines and finds the following: A. That the description of the proposed redevelopment meets the applicable standards for such development; B. That the estimate of the value of the redevelopment is reasonable for projects of this nature; C. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment; D. 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; E. That the deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability; and F. That the deduction will not be allowed unless the dwelling rehabilitation is completed by December 31, 2025. SECTION IV. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as a Residentially Distressed Area for the purposes of tax abatement. Such designation is for real property tax abatement only. SECTION V. The designation as a Residentially Distressed Area shall expire on December 31, 2025. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted a real property tax deduction for a period of five(5) years as shown by the schedule outlined below pursuant to Indiana Code 6-1.1-12.1-17, and further determines that the petition complies with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12.1 et seq. Year 1 - 100% Year 2 - 100% Year 3 - 95% Year 4 - 95% Year 5 - 90% SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Azi4„<yrym,„- a Sharon McBride, Corfcil South Bend Common Council Attes Dawn M. Jones, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City o South Bend, to the Mayor of the City of South Bend, Indiana, on the &5 day of , 2023, at /1 o'clock a .m. ZeetzeZ .2t. Orxf-4) Dawn M. Jones, City Clerk Office of the City Clerk st Approved and signed by me on the day of 1(1 ,2023, at 12-o'clock .m. J es Mueller, Mayor City of South Bend RESOLUTION No. 5016-23 Passed by the Common Council of the City of South Bend, Indiana April 24, 20 23. leeteeZ Attest: City Clerk Dawn M. Jones Attest 4/4./7-74:4111/. President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 25, 20 23 L1g.11Z /1• D��% ' ) City Clerk Dawn M. Jones Approved and signed by me lit hrI/ 20 L3 17. ha\ Mayor BILL NO. 23-19 RESOLUTION NO. 5016-23 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 724 Harrison Avenue, South Bend, IN 46616 AND 726 Harrison Avenue, South Bend, IN 46616 AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A FIVE-YEAR (5) RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR Cross Community, Inc. WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Residentially Distressed Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the areas described as: Key Number: 71-08-02-407-013.000-026 Commonly Known As: 724 Harrison Avenue, South Bend, IN 46616 Legal Description: Lot 2 Kingdom Campus Minor Sub 23/24 NP#1221 6/27/2022 and Key Number: 71-08-02-407-012.000-026 Commonly Known As: 726 Harrison Avenue, South Bend, IN 46616 Legal Description: Lot 1 Kingdom Campus Minor Sub 23/24 NP#1221 6/27/2022 be designated as a Residentially Distressed 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 a residentially distressed 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 determines and finds that the Petition 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 that the area meets one of the following conditions as formally established in Ordinance No. 9394-03, which was passed on February 10, 2003: A. The area is comprised of parcels that are either unimproved or contain only one- family (1) or two-family (2) dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or B. Any dwellings in the area are not permanently occupied and arc: i. the subject of an order issued under Indiana Code 36-7-9; or ii. evidencing significant building deficiencies; or C. Parcels of property in the area: i. have been sold and not redeemed under Indiana Code 6-1.1-24 and Indiana Code 6-1.1-25; or ii. are owned by a unit of local government; or D. A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or E. A significant number of dwelling units within the area are: i. the subject of an order issued under Indiana Code 36-7-9; or ii. evidencing significant building deficiencies; or F. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the areas are owned by Indiana or the United States; or G. The area (plus any areas previously designated under this subsection) will not exceed ten percent(10%) of the total area within the Council's jurisdiction. SECTION III. The Common Council also hereby determines and finds the following: A. That the description of the proposed redevelopment meets the applicable standards for such development; B. That the estimate of the value of the redevelopment is reasonable for projects of this nature; C. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment; D. 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; E. That the deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability; and F. That the deduction will not be allowed unless the dwelling rehabilitation is completed by December 31, 2025. SECTION IV. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as a Residentially Distressed Area for the purposes of tax abatement. Such designation is for real property tax abatement only. SECTION V. The designation as a Residentially Distressed Area shall expire on December 31, 2025. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted a real property tax deduction for a period of five(5)years as shown by the schedule outlined below pursuant to Indiana Code 6-1.1-12.1-17, and further determines that the petition complies with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12.1 et seq. Year 1 - 100% Year 2 - 100% Year3 - 95% Year 4 - 95% Year 5 - 90% SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. �ii (/i l /° & Sharon McBride, C&dcil South Bend Common Council Attes • AZeZ 2(- 09)(-444) Dawn M. Jones, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City o South Bend, to the Mayor of the City of South Bend, Indiana, on the &5 day of , 2023, at /1 o'clock Q_ .m. ZeGAG - 09Xt ) Dawn M. Jones, City Clerk Office of the City Clerk ss- Approved and signed by me on the day of Mil ,2023, at 12-o'clock .m. AK" J' pies Mueller, Mayor City of South Bend IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the day and year first above written. `Applicant" "City" ross Community, Inc. City of South Bend,Indiana y Cliti;--0 BY: /., .1.r ', ,ice,,.44 Tina Patton Sharon McBride President President, South Bend Common Council Cross Community,Inc. i `rte pproved as to Legal Adequacy and Form this Rachel Tomas Morgan �ra day of4,,J 2023. Chairperson,Community Investment Committee ounsel, South Bend Conuno until Ile-''f /41 By x'24, ' Erik Glavich `r Department of Community Investment Counsel for Applicant /� By: / —� J es Mueller Mayor i [Attachment follows.] Filed in Clerk's Office I APR 1 81813 5 D WN M.JONES CITY CLERK,SOUTH BEND,IN Filed in Clerk's Office APR 18 2023 DAWN M.JONES MEMORANDUM OF AGREEMENT CITY CLERK,SOUTH BEND, IN (SINGLE-FAMILY RESIDENTIAL REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of April 11, 2023, serves as confirmation of a commitment by Cross Community, Inc. (the "Applicant"), pending an April 24, 2023, public hearing, to comply with the project description contained in its petition, Statement of Benefits,and attachments and this Agreement. 1. Properties Associated with the Abatement and Responsibilities of the Applicant. At the time of this agreement, the properties are located at the following addresses with corresponding key numbers: 724 Harrison Street, South Bend, Indiana 46616 Key Number 71-08-02-407-013.000-026 726 Harrison Street, South Bend, Indiana 46616 Key Number 71-08-02-407-012.000-026 Throughout the duration of the abatement, the Applicant shall promptly report any changes in the addresses or Key Numbers of the properties receiving an 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 properties subject to an 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 a five-year(5)single-family residential 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 Four Hundred Forty Thousand dollars($440,000.00)for the construction of two (2) single-family homes at the properties identified in Section 1 of this agreement; and (c)acting in good faith to complete the project as described in its Application. 3. Applicant's Compliance with City and State 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 and overtime) associated with the positions,and the Applicant shall provide the City with adequate written evidence 1 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 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 and their successors and assigns shall:(a)be delinquent or in default with respect to any tax payment in St. Joseph County, Indiana; or (b) fail to comply with the obligations established by this Agreement, then the City may immediately terminate the Residentially Distressed 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 Residentially Distressed 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 2 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. 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: 3 If to Applicant: Cross Community,Inc. 707 Sherman Avenue South Bend, Indiana 46616 Attn: Tina Patton If to the City: City of South Bend,Indiana 227 W.Jefferson Boulevard, Suite I400S South 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 single-family residences which are 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