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HomeMy WebLinkAboutBill No. 23-39 Real America Development LLC CONFIRMING Mixed-Use 8 yr. Real Property Tax Abatement-504 S. Lafayette Blvd. Filed ir) CIork's Office JUN 212J ,1 CITY OF SOUTH BE ©AWN M JON C O M M U N I TY INVESTMENT ct_ �K'���� '� June 21, 2023 Council Member Rachel Tomas Morgan Chairperson, Community Investment Committee South Bend Common Council 4th Floor, County-City Building South Bend, Indiana 46601 RE: Confirming Resolution: Mixed Use Development Real Property Tax Abatement for RealAmerica Development, LLC Dear Council Member Tomas Morgan: Please find the enclosed information pertaining to a real property tax abatement petition submitted by RealAmerica Development, LLC. The Common Council will consider a mixed-use development real property tax abatement for parcels that are included in a low-income housing tax credit project named Diamond View Apartments, which is comprised of an affordable housing building and a market-rate apartment building with offices. On June 12, the Common Council approved a Reconfirming Resolution for the affordable housing building and a Declaratory Resolution for the mixed-use/market-rate building. The Council will now consider the Confirming Resolution for the market-rate building. This petition package includes: • Department of Community Investment's summary report • A summary provided by the petitioner of the project • Petition for abatement • Statement of Benefits forms (SB-1 / Real Property) • Supporting information The report contains the Department's findings relative to the above-mentioned petitions. In summary, the abatement covers the 60-unit market-rate apartment building with offices. A representative from RealAmerica will be available to meet with the Committee on Monday, June 26, 2023. If you or any of the other Council members have questions concerning the report or need additional information, please feel free to call me at(574) 235-5838. Sincerely, Erik Glavich Director, Growth and Opportunity EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 1400S County City Building 227W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov Filed in Clerk's Office BILL NO. 23-39 JUN 2 1 2023 RESOLUTION NO. 5036-23 DAWN M.JONES L CITY CLERK,SOUTH BEND,IN A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 504 South Lafayette Boulevard, South Bend, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) REAL PROPERTY TAX ABATEMENT FOR RealAmerica Development, LLC WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as an Economic Revitalization Area for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the areas described as: Key Number: 71-08-12-305-001.000-026 Legal Description: Lots 55 56& 57& W 1/2 Vac Alley E&Adj& N 1/2 Vac Alley S&Adj To Lot 57 Martins Addn Key Number: 71-08-12-305-005.000-026 Legal Description: S 1/2 Lot 44& 3 Ft N Side Lot 45 E 1/2 Vac Alley W &Adj Martins Add Key Number: 71-08-12-305-006.000-026 Legal Description: 32 Ft N Side Lot 45 & E 1/2 Vac Alley W & Adj Martins Add Key Number: 71-08-12-305-007.000-026 Legal Description: 31 Ft Sside Lot 45 &N 1/2 Vac Alley So. &Adj&E 1/2 Vac Alley W&Adj 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, 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 shall expire on December 31, 2026. 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 as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. Year 1 - 100% Year 2 - 90% Year 3 - 90% Year 4- 80% Year 5 - 70% Year 6 - 65% Year? - 55% Year 8 - 45% 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. 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. James Mueller, Mayor City of South Bend Filed in Clerk's Office JUN 2 1 2023 CITY CLERK,SOUTH BEND,IN Diamond View Apartments Narrative Summary Development and Unit Description: Diamond View Apartments will provide 60 affordable apartment homes, 12 of which are set aside for people with intellectual and developmental disabilities, in a location near a wealth of job opportunities and local amenities. Diamond View Apartments will be a four-story, new construction building with a mix of 20 one-bedroom units, 24 two-bedroom units, and 16 three-bedroom units. Each apartment will be equipped with a balcony/patio, free high-speed internet throughout the building,full-size washer&dryer,ceiling fans,dishwasher,and walk-in closets.Diamond View Apartments' 60 affordable apartments will be a part of a master development that includes an additional 60 market-rate apartments to create a true mixed-income community. Amenities in and around Development: A portion of the building's community space will be dedicated to LOGAN for staff offices and community employment such as a café or art studio/showroom for their clients. LOGAN currently offers a Community Employment Program that assists individuals with disabilities in finding and maintaining meaningful employment through 1) Discovery 2)Job Search 3)Job Placement and 4)Job Coaching. Beyond the features for LOGAN, Diamond View Apartments will incorporate a variety of amenities for all residents. There will be an incredible rooftop deck with views of Four Winds Fields. The property will also have a community room with television, picnic area with grills,a computer center, and exercise room. Area's need that Development will help meet: As the market study for Diamond View Apartments confirms, demand for affordable housing, especially for housing serving low-income and disabled household has remained very high in the South Bend area,which is underserved by LIHTC rental alternatives based on their current occupancy levels. Pages 11-6 and 11-7 of the Market Study show that 14 existing LIHTC properties within the site PMA have an overall occupancy rate of 99%with waiting lists. Also noted in the Market Study Page 11-10, our proposed project has a capture rate of just 1.0%, indicating immense unmet demand in the market that has only further increased since last year. With proposed rents ranging from 24.3-62.3%of achievable market rents, Diamond View represents significant value for the local market. The constituency served by the Development: The constituency served by Diamond View Apartments will consist of 18 units at 30% AMI, 12 units at 50% AMI, and 30 units at 60% AMI. Diamond Viewp . ! „” ir Apartments will be a Community Integration development with 12 of the . `` apartment homes set aside for those with intellectual and developmental ' disabilities. The services provided by LOGAN Community Resources, Inc. ("LOGAN"), a highly regarded non-profit organization, and the project-based ' .4 vouchers from the South Bend Housing Authority will assist these residents in living independently. LOGAN provided insightful information as we configured the unit mix. Based on their recommendations, we increased the number of three-bedroom units and redesigned apartment layouts in half of these units to be more conducive for roommate and co- living situations for their clients. LOGAN is very grateful for this opportunity mentioning to us that their current housing is extremely substandard,and they have never had a chance to provide housing input in the past. Development Quality: With RealAmerica's and the City of South Bends's commitments to high-quality design, construction, and management, Diamond View Apartments will be built to exceptional standards to ensure it stays a great place to live for decades to come. The 60 affordable apartments will benefit from and will be constructed to the same levels as the 60 additional market-rate units that make up the greater mixed-income project. Diamond View Apartments will be constructed to the fli .Ayn,_Ru / www.kea1Amelica:,i.( .com Silver National Green Building Standard and will include dual flush toilets, LED lighting, and other energy saving features. RealAmerica has a high minimum standard for the quality of all of our projects, and Diamond View Apartments is no exception. RealAmerica earned numerous perfect pre-8609 inspections,and the highest approval from local fire marshals and safety inspectors.We will employ the same standard of care for Diamond View Apartments. Services to be Offered: LOGAN is a not-for-profit organization that will provide on-site resources and support for individuals with disabilities. LOGAN will have offices on-site at Diamond View Apartments for their staff and the residents will be able to use community space for meetings, LOGAN's community employment program, social gatherings, and real work experience for its clients in the way of a café or art studio. In addition, RealAmerica brings to the property its RealFamilies Services Program. RealFamilies ensures that our residents have the resources needed to live a healthy, M ' 4 €i , a ' e stable live style. Our Resident Service Managers work closely with the Property lt gr .,"� - a' ' 7111-1.7 Managers, Resident Liaisons, Resident's Associations,and local social service providers ,• ' �> "' to identify the best way to meet our residents' needs related to transportation, -,, 4,, t _ education, health/fitness, financial assistance, and recreation. We believe that by providing engaging and fun activities, individuals can live healthier, more connected r- x, r ?::Jr.* lifestyles, which in turn builds a stronger, more cohesive community. Each service i-- 1.1.7: ."' `� 01 w i ` ' a program is tailored to a specific location and its residents. RE:ALAIW E R ICA www.RealAffl.eiricaLL(1.com TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Mixed-Use Development Real Property Tax Abatement for RealAmerica Development, LLC DATE: June 21, 2023 On June 5, 2023, a petition for tax abatement was filed by RealAmerica Development, LLC, for a market-rate apartment building with offices. The building is part of the Diamond View Apartments project, a low-income housing project that will be located at 504 and 520 S. Lafayette Boulevard in South Bend. The project consists of two buildings: (1) an affordable housing building and (2)a market-rate apartment building with offices. On June 12, 2023, the Common Council passed a Reconfirming Resolution for the affordable housing building. At this time, the Council also passed a Declaratory Resolution for the market- rate building with offices. Taken together, the resolutions reconfirm and modify the 2021 abatement the Common Council passed in support of the project. Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South Bend, the 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 Indiana Code 6 1.1-12.1 and all zoning requirements have been met. The Department of Community Investment has reviewed the petition (a copy is attached), investigated the area, and makes the following report. Project Summary • RealAmerica Development, LLC, is a vertically integrated, WBE-certified development company primarily focused on the state of Indiana. RealAmerica Development, LLC, is the developer of the Diamond View Apartments project. • In January 2023, the Indiana Housing & Community Development Authority awarded RealAmerica Development, LLC, tax credits for the project. The South Bend Common Council passed a multi-family residential development real property tax abatement in July 2021 as part of a support package for RealAmerica's efforts to secure low-income housing tax credits from the State. • Diamond View Apartments is a mixed-income development with (1) a 60-unit affordable housing building targeting households earning 30% to 60% of the area median income and (2) a 60-unit market rate building with offices. Each building will be roughly 80,000 square feet. • A portion of the affordable housing building's community space will be dedicated to LOGAN Community Resources, Inc. for staff offices and community employment such as a café or art studio/showroom for their clients. • Total investment by RealAmerica for the two buildings is nearly$20.6 million. Employment Impact • RealAmerica Development, LLC, estimates that that Diamond View Apartments project will create an estimated four(4)full-time positions with an estimated total annual payroll of$200,000. Tax Estimates The petitioner qualifies for an eight-year(8) mixed-use development real property tax abatement for the market-rate building with offices. • Current taxes are zero—property is owned by the City of South Bend. • Estimated annual taxes after the project's completion: $70,635 • Total estimated taxes during the eight-year(8) abatement period: $565,085 o Estimated taxes being abated during the abatement period: $302,475 o Estimated total taxes to be paid during the abatement period: $262,610 Abatement Qualification 1. A review of the tax abatements previously granted finds that the petitioner has been granted or is associated with the following previous abatements. • Resolution No. 4535-16 (3/14/16): Ten-year(10) real property tax abatement for the LaSalle Apartments Rehabilitation. This resolution reconfirmed Declaratory Resolution No. 4327-14 (3/10/14) after RealAmerica Development, LLC, assumed ownership of the LaSalle Apartments at 237 N. Michigan Street. RealAmerica Development, LLC, sold the building in June 2022. • Resolution No. 4922-21 (7/12/21): Eight-year(8) multi-family development real property tax abatement for the Diamond View Apartments project. This abatement was reconfirmed by the Common Council on June 12, 2023, for the affordable housing building (Reconfirming Resolution No. 5023-23). 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 an eight-year(8) mixed use development real property tax abatement under Division 5 (Mixed Use Development Real Property Tax Abatement). 2 8-Year Abatement June 5,2023 RealAmerica Development LLC (Mixed Use) South Bend Portage Township Residential Real Property Tax Abatement Schedule` Type of Dwelling: Multi-Family Residence -60 units- Estimated Project Cost: $ 7,950,000 New Construction Property Address: 504 S.Lafayette Blvd,South Bend,IN 46601 Tax Key Number: 71-08-12-305-001.000-026;71-08-12-305-005.000-026;71-08-12-305-006.000-026;71-08-12-305-007,000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Assessed Value(AV) Land $ 11,850 $ 11,850 $ 11,850 $ 11,850 $ 11,850 $ 11,850 $ 11,850 $ 11,850 $ 11,850 $ 11,850 Structure(AV=25%Project Cost) 6,000 1,987,500 1,987,500 1,987,500 1,987,500 1,987,500 1,987,500 1,987,500 1,987,500 1,987,500 Gross Assessed Value 17,850 1,999,350 1,999,350 1,999,350 1,999,350 1,999,350 1,999,350 1,999,350 1,999,350 1,999,350 Abatement 100% 90% 90% 80% 70% 65% 55% 45% Abatement Deduction - (1,981,500) (1,783,350) (1,783,350) (1,585,200) (1,387,050) (1,287,975) (1,089,825) (891,675) Net Assessed Value 17,850 1,999,350 17,850 216,000 216,000 414,150 612,300 711,375 909,525 1,107,675 Property Taxes Assume constant tax rate of 5.2897% Gross Tax(Tax Rate x Net AV) 944 105,760 944 11,426 11,426 21,907 32,389 37,630 48,111 58,593 Local Tax Credit(8.7112%of GT-DS) (76) (8,517) (76) (920) (920) (1,764) (2,608) (3,030) (3,874) (4,718) Circuit Breaker Credit (261) (49,264) - - - - (614) (9,460) Taxes Due $ 607 $ 47,978 $ 868 $ 10,506 $ 10,506 $ 20,143 $ 29,781 $ 34,599 $ 43,622 $ 44,414 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% Circuit Breaker Cap 536 39,987 39,987 39,987 39,987 39,987 39,987 39,987 39,987 39,987 Debt Service(0.3997%of Net AV) 71 7,991 71 863 863 1,655 2,447 2,843 3,635 4,427 Max Tax Under the Cap 607 47.978 40,058 40,850 40,850 41,642 42,434 42,830 43,622 44,414 Combined Year Abatement Current Taxes New Current& Taxes Abated Net Taxes Due Projected Tax New Taxes Paid 1 100% $ 607 $ 47,372 $ 47,978 $ (47,110) $ 868 2 90% 607 47,372 47,978 (37,473) 10,506 3 90% 607 47,372 47,978 (37,473) 10,506 4 80% 607 47,372 47,978 (27,835) 20,143 5 70% 607 47,372 47,978 (18,198) 29,781 6 65% 607 47,372 47,978 (13,379) 34,599 7 55% 607 47,372 47,978 (4,356) 43,622 8 45% 607 47,372 47,978 (3,564) 44,414 Total: 4,855 378,972 383,827 (189,388) 194,439 *This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. ' 11A°i, 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 8-Year Abatement June 5.2023 RealAmerica Development LLC (Mixed Use) South Bend Portage Township Commerical Development Real Property Tax Abatement Schedule* Type of Property: Mixed Use Estimated Project Cost: $ 2,650,000 New Construction Property Address: 504 S.Lafayette Blvd,South Bend,IN 46601 Tax Key Number: 71-08-12-305-001,000-026;71-08-12-305-005,000-026.71-08-12-305-006,000-026:71-08-12-305-007,000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Assessed Value(AV) Land $ 3,950 $ 3,950 $ 3,950 $ 3,950 $ 3,950 $ 3,950 $ 3,950 $ 3,950 $ 3,950 $ 3,950 Structure(AV=25%Project Cost) 2,000 662,500 662,500 662,500 662,500 662,500 662,500 662,500 662,500 662,500 Gross Assessed Value 5,950 666,450 666,450 666,450 666,450 666,450 666,450 666,450 666,450 666,450 Abatement 100% 90% 90% 80% 70% 65% 55% 45% Abatement Deduction - (660,500) (594,450) (594,450) (528,400) (462,350) (429,325) (363,275) (297,225) Net Assessed Value 5,950 666,450 5,950 72,000 72,000 138,050 204,100 237,125 303,175 369,225 Property Taxes Assume constant tax rate of 5.2897% Gross Tax(Tax Rate x Net AV) 315 35253 315 3,809 3,809 7,302 10,796 12,543 16,037 19,531 Local Tax Credit(8.7112%of GT-DS) (25) (2,839) (25) (307) (307) (588) (869) (1,010) (1,291) (1,573) Circuit Breaker Credit (87) (9,757) - - - - - - - Taxes Due $ 202 $ 22,657 $ 289 $ 3,502 $ 3,502 $ 6,714 $ 9,927 $ 11,533 $ 14,746 $ 17,958 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Circuit Breaker Cap 179 19,994 19,994 19,994 19,994 19,994 19,994 19,994 19,994 19,994 Debt Service(0.3997%of Net AV) 24 2,664 24 288 288 552 816 948 1,212 1,476 Max Tax Under the Cap 202 22,657 20,017 20,281 20,281 20,545 20,809 20,941 21,205 21,469 Combined Year Abatement Current Taxes New Current& Taxes Abated Net Taxes Due Projected Tax New Taxes Paid 1 100% $ 202 $ 22,455 $ 22,657 $ (22,368) $ 289 2 90% 202 22,455 22,657 (19,155) 3,502 3 90% 202 22,455 22,657 (19,155) 3,502 4 80% 202 22,455 22,657 (15,943) 6,714 5 70% 202 22,455 22,657 (12,730) 9,927 6 65% 202 22,455 22,657 (11,124) 11,533 7 55% 202 22,455 22,657 (7,912) 14,746 8 45% 202 22,455 22,657 (4,699) 17,958 Total: 1,618 179,640 181,258 (113,087) 68,171 'This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. :" 5 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 Instructions:Complete pages 1-3 AND the proper Form 58-1 for Ilt.-- Petition for Incentives the type of abatement(real - property or personal propifrry) Petition must include a$250 filing fee payable to the City Clerk's Office f'l led in-- before 1 r ..E�I'r.+�, 0 for which you are applying} ice before processing con be complete i General Information Project Name Diamond View Market Rate Project Numioer I Legal name as registered with 1 ,i t.N 1 3 I li/,j I Secretary of State RealAmerica Development, LLC ' I, % Business structure Domestic Limited Liability Company DAWN (vi.JOINS Company website I www.RealAmericaLLC.com _A r''____ Th.,SOUTH 3L r�D, IN Proposed Project Information Proposed project address parent company name 504 S Lafayette Blvd. RealAmerica Development, LLC City,State,Zip Legal owner SOUtb Bend, Indiana 46601 Sn Wh Bend Rn development Commissioo(as of 4128127) Site acreage or acreage required 1.43 is the real estate owned or leased? Owned Square feet of facility 80,000 sf If leased,by whom? Primary Contact Information Primary company contact name 'Title Mike Surak OwnerNP of Development i Address ofcompany contact 8250 Dean Road Phone (317)815-5929 City.state,Zip Indianapolis, IN 46240 Email P MSurak@RealAmericaLLC.com Senior Official Information Company senior official name Title Ronda Shrewsbury Owner/President Ndoress or company contact Phone If different from above) I _ (317) 815-5929 City,State,Zlp Email Ronda@RealAmericaLLC.com Consultant Information/Agent Hired business consultant/agent name Consultant release?(Y/N) Address l Local economic development partners approval?(Y/N) City,State,Zlp Email Project Overview Brief description of your company,project and why the Diamond View Apartments will be a 60-unit market rate development property is necessary for with offices adjacent to our 60-unit affordable development. A well economic growth functioning economy requires housing for all residents and this mixed-income community will provide just that. Certified Technology Park appropriate N/A Is the project in a Tax Incremental Financing (TIE)area? If so,which? River West Have Building Permits been issued?(Y/N) Number of residential units created by (Note-Not eligible for abatement if Yes) No project 60 if this is a petition for personal property tax abatement,has + the equipment been Installed? 1 N/A Investment Details Public Infrastructure needs Has any 504 funding been What is the value of any equipment being purchased in What is the value of any equipment being (Off-site of project in dollars) received? Indiana for the project? purchased from out of state for the project? 1 0 No N/A N/A New Project Investments Calendar Year 2022 2023 2024 2025 2026 2027 2028 2029 land Acquisition $500 00 Building Lease Payments Building Purchase Costs ;in too,con fin New Building Construction Existing Building Improvements New Machinery&Equipment 1 i Special Tooling/Retooling New Furniture/Fixtures $100,000 :0 New Computer/IT Hardware $10,000 00 New Software On-ate Rail Infrastructure I j On-site Fitter Infrastructure TOTAL $0.00 s io,soo.soo.00 s t 10,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year I Jobs retained Hourly Cumulative P of net NEW full time Hourly average wage,w/o Total training Total ft to be average permanent Jobs created at project benefits or bonuses,of expenditure- trained-not wage,cubo benefits or cumulative net new lobs not cumulative bonuses cumulative 2023 2024 2025 2 S 25.00 $2,000 2 2026 2027 2023 2029 2030 2031 2032 2033 2034 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers Technical $27 00 Managerial Administrative $25.00 Who will be the individual responsible for coordinating with WorkOne on recruiting? Tangee H u pt Does your company have an EEO hiring policy? Yes Are you an EEO employer? Yes Please list the number of full time and part time minority and/or female Please describe your commitment to employees for the following years: diversity end inclusion by detailing your Year outreach and recruitment efforts for the last 2023 2022 2021 three years as weft as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black 8 10 6 Hispanic See attached 1 1 2 Asian 2 Indian 1 1 Female 24 24 ,12 Other Complete below for Real or Personal Property Tax Abatement only. Please sign for all requested Incentives. Public Benefit Item: Information Is required on both the construction companies and the companies which will provide materials purchased for this project. Please complete the table below with the appropriate information. If Qualify yarned 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%) N 0 20 B. Purchase Materials from Local Companies(75%) N 0 20 C. Require Employees vs.Independent Contractors N 0 19 D. Require Prevailing Wage(Davis Bacon) N 0 22 E. Require Health Benefits N 0 22 F. Require Retirement Benefits N 0 18 G. Maintain Affirmative Action Plan Y 20 20 1Sub-total Construction Related: 20 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels N 0 33 B. Provide Health Benefits Y 34 34 I I C. Provide Retirement Benefits Y 29 29 D. Provide Training Y 2B 28 E. Provide Child Care N 0 15 F. Provide Transportation Assistance I N 0 14 G. Provide Employer Assisted Housing program N 0 9 Sub-total Wage&Benefit Related: 91 162 3 Workforce Related: A. Create New Jobs Y 42 42 a. Retain Existing Jobs N 0 41 C. Maintain Affirmative Action Plan Y 35 37 D. Provide Targeted Hiring Preference Y 34 34 Sub-total Workforce Related: 111 152 4 Supporta Municipal Facility Support a SB Municipal Facility(donations to the A. zoo,conservatory,museum,etc.) N 0 84 Name of Facility I ISub-total Municipal Facility: 84 Sub-total from Above: 222 539 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 seq.,and South Bend Municipal Code Sec.2-76 et seq.,for this petition state the above. Submitted By: Date: 5/31/23 For Staff Use Only Below This Line i-4,,..1 : 15, rOD What is the current assessed value? Real Property: Q/y: $t 00 D Personal Property: What Is the projected assessed value? Real Property: Ratq 2 f b Sof O01 Personal Property: What is the tax key number for this project? v y pe.000 ( r What Is the six digit NAILS code? N kt Please attach a Google map and street view of the location. Please list the amount al real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last flue years when applicable. Year One ''weal Year Two V y Year Three i Year Four Year Flve Please fill out the following Public Benefit Summary Information and add to total from above. (y or NI Points 1 Point; Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs N I 49 B. Develop Based on Local University Research NI 35 C. Achieve a Physical Element of a Plan Ni 3 ` 36 Sub-total Project Related: 3G, 120 6 Super Size Projects(point values are cumulative': A. 100%to 199% 1 15 25 8. 200%to 299% Y L g 68 C. 300%to 399% Y iA S 65 D. 400%and Over y 5 Z 52 Sub-total Super Size Projects: Z 10 210 7 Pay P for Municipal Infrastructure: A. Pay for Over;arng or IJpgradmy d ' 14 B. Pay for 26-50%of Extension Cost r 26 C. Pay for 51-75%of Extension Cost r) 39 D. Pay for 76-100%of Extension Cost IV I S2 Sub-total Infrastructure Related: 131 Total from Applicant Section: 222 539 Total from Staff Section: Z y!(y 461 Total Public Benefit Points: y L P 1000 Please describe your commitment to diversity and inclusion by detailing your outreach and recruitment efforts for the last three years as well as current policies. RealAmerica administers our EEO policy fairly and consistently by: • Posting all required notices regarding employee rights under EEO laws in areas highly visible to employees. • Advertising for job openings with the statement "We are an equal opportunity employer, and all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity or expression, pregnancy, age, national origin, disability status, genetic information, protected veteran status, or any other characteristic protected by law." • Posting all required job openings with the appropriate state agencies. • Forbidding retaliation against any individual who files a charge of discrimination, opposes a practice believed to be unlawful discrimination, reports harassment, or assists, testifies or participates in an EEO agency proceeding. • Requires employees to report to a member of management, a Human Resources representative or the general counsel any apparent discrimination or harassment. The report should be made within 48 hours of the incident. • Promptly notifies the general counsel of all incidents or reports of discrimination or harassment and takes other appropriate measures to resolve the situation. When we post for open positions, we include variety of job websites (at least 5 sites for each position and sometimes up to 10 sites)to ensure we are reaching a wide variety of applicants from various backgrounds.Additionally, in all of our job advertising we include EEOC language. .4.4,,x''4 STATEMENT OF BENEFITS 2023 PAY 2024 ats 3. REAL ESTATE IMPROVEMENTS State Form 51767(R7 1-21) FORM SB-1/Real Property �,• f° Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost El Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) paid o and l employees by the CI Residentially distressed area(IC 6-1.1-12.1-4.1) property owner is confidential per IC 6-1.1-12.1-5.1. 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 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 application between January 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 RealAmerica Development, LLC Address of taxpayer Number and Street. 8250 Dean Road City: Indianapolis sate: IN ZIP: 46240 Name of contact person R/l 1I[, I, -Telephone number E-mail address First''.Im nn!me Last Name: S u ra k , (317) 815-5929 msurak@realamericallc.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Common Council of the City of South Bend Location of property I County DLGF taxing district number Number andStreeu 504 S Lafayette Blvd , , South Bend Sia,. N zit'.46601 1 St. Joseph 026(South Bend-Portage) Description of real property improvements.redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year) This will be a 60-unit market-rate sister building to Diamond View Apartments. 10/1/2023 Estimated completion date(month,day,year) 3/1/2025 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current Number0 Salaries 0 Number Retained 0 Salaries $ 0 Number Additional 2 Salaries$ 85000 r SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values _ $8,000 $6 coo Plus estimated values of proposed project $10,710,500 $2,650,125 Less values of any property being replaced $6,000 $8,000 Net estimated values upon completion of project $10,710,500 $2,650,125 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) 0 Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative Date signed(month,day year) 5/31/2023 Printed name of authorized representative 0'• Ronda Shrewsbury I President Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed N/A calendar years*(see below). The date this designation expires is 12/31/2026 . NOTE:This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements ®Yes ❑No 2.Residentially distressed areas ❑Yes ®No C. The amount of the deduction applicable is limited to$ N/A D. Other limitations or conditions(specify) N/A E. Number of years allowed: ❑Year 1 D Year 2 ❑Year 3 0 Year 4 0 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 0 N 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) ( ) Printed name of authorized member of designating body Name of designating body Attested by(signature and 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. Except as provided in IC 6-1.1-12.1-18,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-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. Except as provided in IC 6-1.1-12.1-18,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. IFiled in Clerk's Office ,JUN 0 5 20?-3 DAWN 1111.,ZONES CITY CLERK,SOUTH BEND,IN Page 2 of 2 Aerial and Street Views i IMEII. III 3 P• ' ' - ._110 ie- iwiciumot -ill * 0 ap.". 1 , , fowl 3 t I :',.:, • . ,, . --•--'••• ...." • )7 j ' 1 t_ _- 1 '- i 1 II ii 5 ' ''! 1 i 9 = - Allinik.:*- : -minor- • VP,, ': •.,, i r *.r ..11P1F' rim ,• i k• , ., ' ' 11 •!a• ...• Adimmr•T — ir . ..1 I • , - i 1 it t itie , I-: .: • . - II 0,• ' 0'4 1 Mixed Use Development Abatement Market-Rate 411 -. 1 Apartment Building with Offices 1 Multi-:73mll., Residentia . , - ' Development Abatement• ' Affordable Housing Building I- 1‘. f,- 7 a.'- • , . . fr04: 90. • ....ii .-•1, I 40 :-1• • * - ,.t. ,.3,0 1 de 4 , • , - -( ....' ..,.: , ••-sc ' . — View Looking Southeast from Intersection of S. Lafayette Blvd. and W. Monroe St. i yy �, l 7i'": +li ;,'1+'r".4e.1. i;a •te Cc.... y .. M V as ...-: View Looking Northeast from Intersection of S. Lafayette Blvd. and W. South St. • vaii 4i View Looking Northwest from Intersection of S. Main St. and W. South St. hArsayou.„ i t _ i mow. +c ! !.. 9 fse . „ View Looking West-Southwest from S. Main St. oft I ti_i t = 1 w • r-iieu in u gar . s Office JUN 2 1 2023 WN M JO EN S CITY CIE®ARK,SOUTH BEN'D,IN Filed in Clerk's Office I JUN 2 1i23 DAWN M.JONES CITY CLERK,SOUTH BEND,IN MEMORANDUM OF AGREEMENT (MIXED-USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of June 14, 2023, serves as confirmation of a commitment by RealAmerica Development, LLC (the "Applicant"), pending a June 26,2023, 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 504 South Lafayette Boulevard, South Bend, IN 46601,and has Key Numbers 71-08-12-305-001.000-026, 71-08-12-305-005.000-026, 71-08-12-305-006.000- 026, and 71-08-12-305-007.000-026. 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 Ten Million Six Hundred Thousand dollars($10,600,000.00)for the for the construction of a new market-rate 60-unit apartment building with commercial space at property identified in Section 1 of this Agreement; (b) creating at least two (2)permanent full-time jobs with a total estimated annual payroll of approximately One Hundred Thousand dollars($100,000.00); 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&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 1 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 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 as Exhibit A 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 pennitted 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: RcalAmerica Development,LLC 8250 Dean Road Indianapolis,Indiana Attn: Anne Conway,Controller If to the City: City of South Bend, Indiana 227 W.Jefferson Boulevard, Suite 1400S 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 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" "Cit y RealAmerica Development,LLC City of South Bend,Indiana By: By: Ronda Shrewsbury Sharon McBride President and Owner President, South Bend Common Council RealAmerica Development,LLC Approved as to Legal Adequacy and Form this By: day of ,2023. Rachel Tomas Morgan Chairperson,Community Investment Committee Counsel,South Bend Common Council — By: Erik Glavich Department of Community Investment Counsel for Applicant By: James Mueller Mayor EXHIBIT A Abatement Schedule Subject to the adoption by the SBCC of a resolution confirming the adoption of Declaratory Resolution No. 5024-23,the property owner is qualified for and is granted a mixed-use development real property tax abatement for a period of eight(8)years as shown by the schedule outlined below. Year 1 - 100% Year 2 -90% Year 3 -90% Year 4-80% Year 5 -70% Year 6-65% Year?-55% Year 8-45% Filed in Clerk's Office JUN 2 1 2023 DAWN moti CITY CLERK,SOUTH SEND,IN 6