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HomeMy WebLinkAboutBill No. 23-49 Confirming Res., 1144 Corby Blvd., SB., IN 10 Yr. Real Property Tax Abatement Filed in Clerk's Office ` -,1 CITY OF SOUTH BEND JUL 19 �Q�� Y , COMMUNITY INVESTMENT ..:�l DAWN M.JONES _---� CITY CLERK;SOUTH BEND, IN July 19, 2023 Council Member Rachel Tomas Morgan Chairperson, Community Investment Committee South Bend Common Council County-City Building, 4th Floor South Bend, Indiana 46601 RE: Confirming Resolution: Mixed-Use Development Real Property Tax Abatement Petition for Five Corners LLC Dear Council Member Tomas Morgan: Please find the enclosed information pertaining to a mixed-use development real property tax abatement petition submitted by Five Corners LLC, an Indiana Limited Liability Company. On July 10, the Common Council approved Declaratory Resolution No. 5039-23 for this abatement. The Council will now consider the Confirming Resolution. This petition package includes: • Department of Community Investment's summary report • Petition for abatement • Statement of Benefits form (SB-1 / Real Property) • Supporting information The report contains the Department's findings relative to the above-mentioned petition. The petitioner will construct 108 residential apartments, four(4) for-sale condo units, and approximately 5,000 square feet of retail space. The total private investment for the project is $31.5 million. The project meets the requirements established by Sections 2-79 et seq. and would qualify for a ten-year(10) mixed-use development real property tax abatement. A representative from Five Corners LLC will be available to meet with the Committee on Monday, July 24, 2023. If you or any of the other Council members have questions concerning the report or need additional information, please contact me at(574) 235-5838. Sincerely, Erik Glavich Director, Growth and Opportunity EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 14005 County-City Building 227W.Jefferson Blvd. South Bend,Indiana 46601 p 574.2359371 www.southbendin.gov ^� t �! i • I F iiedi in Clerk's Office BILL NO. 23-49 i JUL 19 ?O? RESOLUTION NO. 5046-23 LAWN M.JONES (.'TY 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 1144 Corby Boulevard, South Bend, IN 46617 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN-YEAR (10) REAL PROPERTY TAX ABATEMENT FOR Five Corners 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 area described as: Key Number: 71-09-06-301-014.000-026 Commonly Known As: 1144 Corby Boulevard Legal Description: Lot 319 Park Pl 3rd 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 herebyconfirms 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. �:� - i .. 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 ten (10) 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 - 80% Year 4 - 70% Year 5 - 60% Year 6 - 50% Year? -40% Year 8 - 30% Year 9 - 20% Year 10 - 10% 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 I 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 JUL 19 707.3 DAWN M.JONES CITY CLERK,SOUTH BEND, IN 1,. r' „ ‘ 1�, TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Mixed-Use Development Real Property Tax Abatement Petition for Five Corners LLC DATE: July 5, 2023 On June 30, 2023, a petition for tax abatement from Five Corners LLC was filed with the Office of the City Clerk. The petition seeks consideration for a mixed-use development real property tax abatement for property at the northeast corner of Eddy Street/State Route 23 and Campeau Street in South Bend. 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, investigated the area, and makes the following report. Project Summary • The petitioner, Five Corners LLC, has partnered with HP Irish Corners LLC (a Holladay Properties entity)to build a mixed-use project. The project is being developed by HP Irish Corners LLC on a ground lease structure with Five Corners LLC. • The project will consist of 108 residential apartments, four(4)for-sale condominiums, and 5,000 square feet of retail space. Private investment into this project is approximately $31.5 million. • The project will greatly contribute to the walkable urban community south of Notre Dame's campus. Employment Impact • By the end of 2024, the petitioner anticipates to create five (5)full-time jobs with an estimated annual payroll of$348,600. • By the end of 2025, the petitioner anticipates to create nine (9)total full-time jobs with an estimated annual payroll of$602,200. This includes the jobs created in 2024. Tax Estimates The petitioner qualifies for a ten-year(10) mixed-use development real property tax abatement. • Current estimated annual taxes: $12,800 • Estimated annual taxes after the project's completion: $486,300 • Total estimated taxes during the ten-year(10) abatement period: $4,862,900 o Estimated taxes being abated during the abatement period: $1,526,100 o Estimated total taxes to be paid during the abatement period: $3,336,800 Abatement Qualification 1. A review of the tax abatements previously granted finds that the petitioner has been granted the following previous abatement. • Resolution No. 4811-19: Seven-year(7) real property tax abatement for property at the northeast corner of Eddy Street/State Route 23 and Corby Boulevard. 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 East Development Area. 5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for a ten-year(10) mixed use development real property tax abatement under Division 5 (Mixed Use Development Real Property Tax Abatement). 2 .• • 1 • 10-Year Abatement July 5,2023 Five Corners LLC South Bend Portage Township Residential Real Property Tax Abatement Schedule* Type of Dwelling: Multi-Family Residence -108 units- Estimated Project Cost: $23,000,000 New Construction Property Address: 1144 Corby Boulevard Tax Key Number: 71-09-06-301-014,000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Assessed Value(AV) Land $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 $ 150,673 Structure(AV=80%Project Cost) 216,200 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000 Gross Assessed Value 366,873 18,550,673 18,550,673 18,550,673 18,550,673 18,550,673 18,550,673 18,550,673 18,550,673 18,550,673 18,550,673 18,550,673 Abatement 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Abatement Deduction - (18,183,800) (16,365,420) (14,547,040) (12,728,660) (10,910,280) (9,091,900) (7,273,520) (5,455,140) (3,636,760) (1,818,380) Net Assessed Value 366,873 18,550,673 366,873 2,185,253 4,003,633 5,822,013 7,640,393 9,458,773 11,277,153 13,095,533 14,913,913 16,732,293 Property Taxes Assume constant tax rate of 5.2897% Gross Tax(Tax Rate x Net AV) 19,407 981,275 19,407 115,593 211,780 307,967 404,154 500,341 596,528 692,714 788,901 885,088 Local Tax Credit(8.7112%of GT-DS) (1,563) (79,022) (1,563) (9,309) (17,055) (24,800) (32,546) (40,292) (48,038) (55,784) (63,530) (71,276) Circuit Breaker Credit (5,371) (457,093) - - - - - (51,228) (132,401) (213,574) (294,747) (375,920) Taxes Due $ 12,473 $ 445,161 $ 17,844 $ 106,285 $ 194,726 $ 283,167 $ 371,608 $ 408,820 $ 416,088 $ 423,356 $ 430,624 $ 437,892 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Circuit Breaker Cap 11,006 371,013 371,013 371,013 371,013 371,013 371,013 371,013 371,013 371,013 371,013 371,013 Debt Service(0.3997%of Net AV) 1,466 74,147 1,466 8,734 16,003 23,271 30,539 37,807 45,075 52,343 59,611 66,879 Max Tax Under the Cap 12,473 445,161 372,480 379,748 387,016 394,284 401,552 4013,820 416,088 423,356 430,624 437,892 Combined Year Abatement Current Taxes New Net Taxes Current& Taxes Abated Due Projected Tax Paid New Taxes 1 100% $ 12,473 $ 432,688 $ 445,161 $ (427,317) $ 17,844 2 90% 12,473 432,688 445,161 (338,876) 106,285 3 80% 12,473 432,688 445,161 (250,435) 194,726 4 70% 12,473 432,688 445,161 (161,994) 283,167 5 60% 12,473 432,688 445,161 (73,553) 371,608 6 50% 12,473 432,688 445,161 (36,340) 408,820 7 40% 12,473 432,688 445,161 (29,072) 416,088 8 30% 12,473 432,688 445,161 (21,804) 423,356 9 20% 12,473 432,688 445,161 (14,536) 430,624 10 10% 12,473 432,688 445,161 (7,268) 437,892 Total: 124,726 4,326,879 4,451,605 (1,361,195) 3,090,410 s "'ts 'This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. 6F it Department of Community Investment The true tax values will ultimately be determined by the actual assessed valuation and the then-current tax rates. 4, • ?' City of South Bend w4." 10-Year Abatement July 5,2023 Five Corners LLC South Bend Portage Township Commerical Development Real Property Tax Abatement Schedule* Type of Property: Retail Establishment Estimated Project Cost: $ 1,500,000 New Construction Property Address: 1144 Corby Boulevard Tax Key Number 71-09-06-301-014,000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Assessed Value(AV) Land $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 $ 9,827 Structure(AV=80%Project Cost) - 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Gross Assessed Value 9,827 1,209,827 1,209,827 1,209,827 1,209,827 1,209,827 1,209,827 1,209,827 1,209,827 1,209,827 1,209,827 1,209,827 Abatement 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Abatement Deduction - (1,200,000) (1,080,000) (960,000) (840,000) (720,000) (600,000) (480,000) (360,000) (240,000) (120,000) Net Assessed Value 9,827 1,209,827 9,827 129,827 249,827 369,827 489,827 609,827 729,827 849,827 969,827 1,089,827 Property Taxes Assume constant tax rate of 5.2897% Gross Tax(Tax Ratex Net AV) 520 63,996 520 6,867 13,215 19,563 25,910 32,258 38,606 44,953 51,301 57,649 Local Tax Credit(8.7112%of GT-DS) (42) (5,154) (42) (553) (1,064) (1,575) (2,087) (2,598) (3,109) (3,620) (4,131) (4,642) Circuit Breaker Credit (144) (17,712) - - - - - - - (1,642) (6,998) (12,355) Taxes Due $ 334 $ 41,130 $ 478 $ 6,314 $ 12,151 $ 17,987 $ 23,824 $ 29,660 $ 35,497 $ 39,692 $ 40,171 $ 40,651 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Circuit Breaker Cap 295 36,295 36,295 36,295 36,295 36,295 36,295 36,295 36,295 36,295 36,295 36,295 Debt Service(0.3997%of Net AV) 39 4,836 39 519 999 1,478 1,958 2,437 2,917 3,397 3,876 4,356 Max Tax Under the Cap 334 41,130 36,334 36,814 37,293 37,773 38,253 38,732 39,212 39,692 40,171 40,651 Combined Year Abatement Current Taxes New Net Taxes Current& Taxes Abated Due Projected Tax Paid New Taxes 1 100% $ 334 $ 40,796 $ 41,130 $ (40,653) $ 478 2 90% 334 40,796 41,130 (34,816) 6,314 3 80% 334 40,796 41,130 (28,980) 12,151 4 70% 334 40,796 41,130 (23,143) 17,987 . 5 60% 334 40,796 41,130 (17,307) 23,824 6 50% 334 40,796 41,130 (11,470) 29,660_ 7 40% 334 40,796 41,130 (5,634) 35,497 8 30% 334 40,796 41,130 (1,439) 39,692 9 20% 334 40,796 41,130 (959) 40.171 10 10% 334 40,796 41,130 (480) 40,651 Total: 3,341 407,964 411,305 (164,880) 246,425 This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. W�v; Department of Community Investment The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. P3 City of South Bene City of South Bend Instructions:Complete pages 1-3 Yii AND the proper Form SB-1 for Petition for Incentives the type ofabatement(real s property or personal property) - t" `^ Petition must include a$250 filing fee payable to the Cky Clerk's Office :AY/ for which you are applying. . before processing can be complete / t.-` r1 's'-'•-•'`i•rk General Information Project Name 5-Corners Project Number ` S Legal name as registered with Secretary of State Five Corners LLC i ' lay ;C,0 Business structure4 ‘./. :4. '".^ 9 Limited Liability Company 1} C f Company website V i'(f ' 20�? www.liveinsouthbend.com �/F '1+1 �;`\ q,�� Proposed Project Information •CC Proposed project address 1144 Corby Blvd Parent company name Five Corners LLC ��:�M• city,soca,IIp South Bend, IN 46617 Lep/owner Five Corners LLC "�i Site acreage or acreage required 2 8 b the real•ectate owned Leased or leased? Square fret of facility 172,955 N leased,by whom? HP Irish Corners LLC Primary Contact Information Primary company contact name Anne Hayes Title Member Address of company contact 814 Marietta Street Phone 574-210-5167 C1ty,State:np South Bend,IN 46601 Email ahayes@telecompark.com Senior Official Information Company senior official name N/A title Address of company contact (Ifdifferenttroabove) Phone m City.State,21p Email Consultant Information/Agent Hired business consultant/agent name N/A Consultant release?(Y/N) Address total economic development partners approval?(y/N) City.State,Zip Email Project Overview Brief description of your company,project,and why the We are proposing the development of a mixed-use project at the ppen l necessary ryfor intersection of State Route 23 and Corby Boulevard eco1144 Corby Blvd. The project will be known as 5-Corners and feature 108 residential apartment units (+/- 152,026 SF), four for-sale condo units (+/- 9,200 SF), and +/- 5,000 square feet of retail.The project is being developed by HP Irish Corners LLC (a Holladay Properties entity)on a ground lease structure with Five Corners, LLC. This will continue to develop the neighborhood south of Notre Dame's campus and help foster a walkable, urban community with various housing and commercial options. Total project investment is anticipated to be approximately $31.5 million. Certified Technology Park appropriate N/A Is the project in a Tax Incremental Financing RIF)area?If so,which? River East Have Building Permits been issued?(Y/N) Number of residential units created by (Note-Not eligible for abatement if Yes) N project 108 !tugs is a petition for personal property tax abatement,has the equipment been Installed? 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? None No N/A N/A New Project Investments ICalendar Year 2022 2023 2024 20252026 2027 2028 2029 Land Acquisition - � i tullding Lease Payments 5 l57 000 00 5 157 000 00 5 157 000 00 5 157.000 00 5 157.000 00 5 157.000 00 5 157.000 00 Building Purchase Costs I I / '1\ 1 • New BuildingConstruction 1 h• I ,;rc Dux. 5. :1r.0 000 co • 4/6J. . !Existing Building Improvements I I I TI Neu'Machinery 5 Cquipment I I i, /. . /!_J,., _ N. 'Special tooling/Retooling ! _ I I I I I//l. 1 V{/6. I ,NS 0 -N• New fumiture(Fatures � 000 >Y -, /0, S 500,000 QO , ,�, 2 i 7 F,. ' r New Computer/ft Hardware i ‘ ,.•,9,--i,71/,,....„. G' �z5o ooa ao ,4t 1/,;�. ,:-.0?- New Software 15 50,000 00 \'�S� ✓ .y New un-site Rail infrastructure I 1 \ )ry�iy�(`I, / ion-site Fiber Infrastructure I I � ( I ,'-' 4'o / TOTAL $0.00 S 11.157,900 w 511:957.000 w $157,000.00 $157,000.00 $157,000.00 ;$157,000.00 $157,000.001 \ ` / !Full-Time Permanent Indiana-Resident Positions by Calendar Year ra!enAer ye,. I I .'eta;,,.,t I unto,/ I r,iinuretiwe a ni a<r Nrw bill time I unnrly atiptaiiin waen,win 1 Total trainme I Total#to be average permanent jobs(reined atproject benefitsor bonuses,of euupendiibue- trained-not wage,tub benefits or cumulative net new johs not cumulative bonuses cumulative 2023 0 $0 00 2U2a. __ . _. c 3 34 96 I $15,000 3 -- __ 2025 ., - 9 $31 70 2026 2027 - ....- _ ............ ..-. 1 - 70711 __._. __..._ _. 2029 11111/ –. - ---„ ----1111111111111111_ --- - _— 2031 2032 2033 • 2034 Provide hourly wage information for new employees in the following positions. 1 ruff time Port once Laborers $ 15 00 3'0 00 Technical S 27 00 Maltagerlal S 33 00 Administrative .; In nn Who sill be the Individual responsible for coordinating with WorkOneonrewiting? I Jackie Green-SVP Property Management-Holladay Properties Does your company have an EEC hiring policy? y Are you an EEO employer? Y Please list the number of full tir.oa and part time minority and/or female Please describe your commitment to employees for the following years. diversity and Inclusion by detailing your •-outreach and recruitment efforts for the last Year 2023 2022 2021 three years as well as current polities. hull Time Part Time Full Time Part Time Full Time Part Time Black This will be a new operation Hispanic and Holladay Properties has Asian reached out to the Office of Indian ! Diversity,Compliance and Inclusion in an effort to identify Femalea more diverse employee and Other subcontractor candidates pool. /`-s % '/,:l /�n I Complete below for Real or Personal Property Tax Abatement onlyz ,AGI} i,1-• \ Please sign for all requested incentives. ' t: f' ' 1 Public Benefit Item: `r%�>�U( / ` I Information is required on both the construction companies and the \ ! , companies which will provide materials purchased for this project. ify -.. ,1' Please complete the table below with the appropriate information. If Qua1 Earned Points Available PointsN.,:. 4�/i(, , / (Yes or No) you qualify for the points,please enter the full amount of available points. 1 Construction Related(Contractors): A. Employ Local Companies(75%) Y 20 20 B. Purchase Materials from Local Companies(75%) Y 20 20 C. Require Employees vs.Independent Contractors Y 19 19 D. Require Prevailing Wage N 22 E Require Health Benefits Y 22 22 F. Require Retirement Benefits N 18 G. Maintain Affirmative Action-Plan Y 20 20 Sub-total Construction Related: 101 141 2 Wage&Benefit Related IOwnerj; A. Pay Target Wage Levels Y 33 33 B. i Provide Health Benefits Y 34 34 C. Provide Retirement Benefits Y 29 29 D. Provide Training Y 28 28 E. Provide Child Care N 15 F I Provide Transportation Assistance N 14 GProvide Employer Assisted Housing program N 9 Sub-total Wage&Benefit Related: 124 162 3 Workforce Related- A. Create elated•A. Create New Jobs Y 42 42 B. Retain Existing lobs N/A 41 C. Maintain Affirmative Action Plan N 35 D. Provide Targeted Hiring Preference N 34 I 1Sub-total Workforce Related: 42 152 4 Support a Municipal Facility: !Support a SB Municipal Facility(donations to the A. zoo,conservatory,museum,etc.) Y 1 84 84 Name of Facility Zoo&VPA I isub-total Municipal Facility: yy 84 ' Sub-total from Above: 351 539 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: i )Jttj p } 104, Date: 06/30/2023 A/ F(7 For Staff Use Only Below This Eine >. • e/ �'9;f,'N. Land• /,O 5 670 ,_y / What k the current assessed value? Real Property: , Personal Property ,�� `\ G/5^. N �/� 1A16�Loa �J \ c What IS projected assessed value? 'Real Property: Qs! :/1,600/v00 /,/p00/Doo Personal Property: s.:0/ - `V�j ,. What is Outer key number for this project? 7/-O`/✓—(X 30/—0/Y-000 'C!Z4 G)y�\r.,r`'. / What Is the six digit NAILS code? '/ `,. Please attach a Google map and street viewer the location. r \+�A \ / Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last free years when applicable. w Year QV /ea yr zo 2.2. 10{/ ,2r /6 Year Two 2.0 2.1 6,6 '15,06 1 Year Three 2024 5,?-if.X,2— Year Four if 33 6,2. Year Frye Wiff I ve 3 '77 + 37 ! 4V Please fill out the following Public Benefit Summary Information and add to total from above. Pf or N1 Points I P:iikts Public Benefit Item: Project Related: 5 A. Redevelop d Site that has Special Needs y i / i 49 B. Develop Based.on Locdl University Research f 35 C. Achieve a Physical Element of a Plan 7 34 I 36 JSub-total Project Related: 8S 120 6 Super Size Projects!point values are cumulative): A. 100%to 199% y 25 25 B. 200%to 299% y (0tT 68 C. 300%to399% 11 e-5 65 D. 1400%and Over y 5.. 52 Isub-total Super Size Projects: 62/0 210 7 Pay for Municipal Infrastructure: i A. I Pay for Oversizing or Upgrading ti i 14 B. }Pay for 26-50%of Extension Cost PI 1 26 C. Pay for 51-75%of Extension Cost ii 39 D. ,Pay for 76-100%of Extension Cost It1/4) 52 JSub-total Infrastructure Related: ^ 131 Total from Applicant Section: 351 539 Total from Staff Section: 24.5 461 Total Public Benefit Points: d 1 6 1000 / I • STATEMENT OF BENEFITS Filed In Cie S` '�-�°9 1 �Jrf! 20 23 PAY 2024• e REAL ESTATE IMPROVEMENTS C? Stale Form 51'>' R'i 1-211 JU� FORM SB-1/Real Property •` Prescribed by the Department of Local Government Finance // r? N C L" 7Q,� PRIVACY NOTICE ii;Statement is oeing completed for real property that qualifies under the fo 0 India3491e'::.cx ono 0n;;? Any information concerning fine cost !I Redevelopment or rehabilitation of real estate improvements(IC 6-i 1-12. ��rfNV of trio popery and;pec tic salaries �.1J paid to individual employees oy the ❑ Residentially distressed area(IC 6-1 1-12.1-4 1; CC�_K SO�O�ES property owner is confidential ear INSTRUCTIONS �N J 1 This statement must be submitted to the oody designating the Economic Revitalization Area prior to the public h .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 e hick the person wisnes to claim a deduction 2 The statement of benefits form must he submitted to the designating body ano the area designated an economic revitalization area before the initiation cf 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 they 10 m the year in which the addition to assessed valuation is made or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed atter April 10 4 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-11Real Property should be attached to the Form 322iRE when the deduction is first claimed and then updated annually For each year the deduction is applicable C 5-1 1-12 1-5 1(h) 5 For a Form SB-1/Real Property!hat 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 5-1 1-12.1-17 SECTION 1 TAXPAYER INFORMATION Name of taxpayer Five Corners LLC Address of taxpayer Nr„ ,,:,ti1Strati 814 Marietta Street cin: South Bend ;i.,t-: IN ZrP- 46601 i Name of contact person Telephone number E-mail address .ug"..„10,c,Anne Hayes I (574 ) 210-5167 ahayes@telcompark.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 „,i,p,, i,,,l:;„ "144 Corby Boulevard South BendIN 46617 St. Joseph " '° ''tt' i 026(South Bend-Portage) i Desamtion pf real property improvements redevelopment or rehabilitation(use additional Sheets d necessar7! Estimated start date i.mor'ih day year) Redevelopment of vacant land into two buildings featuring 108 rental 9/13/2023 Estimated completion date(month day.yeah apartment units and retail space 8!31!2025 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT CurrentNumberSalaries Number Retar•,-' Salaries -iitlonal Salaries $ 0 0 $ 0 9 6 570.600 SECTION 4 ESTIMATED TOTAL COST AND VALUE,OF PROPOSED PROJECT REAL_ESTATE IMPROVEMENTS COST ; ASSESSED VALUE I Current values s.: I $216,200 Plus estimated values of proposed project .00,0,: s 19555 000 Less values of any property being replaced s o S 216.20o Net estimated values upon completion of project $24.500.00: $19,600,000 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solo waste converted(pounds) Estimated hazardous waste arvu ti Other oenefits The project is being developed to meet the National Green Building Standard for sustainability and energy efficiency. SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true Signature of authorized representative ,.� date signed;mu,'r,7,day.year) 4IF ap 16/30/2023 i 0rinted name of authorized reoresantative 1 Title Anne Hayes ' Member Page 1 of 2 FOR USE OF THE DESIGNATING DODY IWe find that the applicant meets the general standards in the resolution adopted or to be adopted by this oody. Said resolution..passed or to be passed I under IC 6-1 I-12.1.orovides for me following limitations: A The designated area has been!united to a period of bme not to exceed N/A calendar years';see ieioith The date this designation expires is 12/31/2026 • ioTE rhrs question addresses whether the resolution contains an expiration dare 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 X Yes UNo 2 Residentially distressed areas ❑Yes M No C The amount of the deduction applicable is limited to s N/A ID Other limitations or conditions. o fy: N/A , � E. Number of years allowed ❑Year! J Year 2 Year 3 ❑Year 4 ❑ Year 5 (`see below) Year 5 ❑Year 7 Cj'fear 8 ❑Year 5 GT Year 10 F For a statement of benefits approved after June 30.2013.did this designating oody adopt an abatement schedule per I.6-i 1-1,: I-177 Yes ❑No If yes.attach a copy of the abatement schedule to this form. if no the designating body is required to establish an,abatement schedule before the deduction can be determined. We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved(signature and tide of authorized member of designating bodyTelephone number (Date signed(month,day.year) Printed name of suthonzad mernoer of designating oody NamP ni.iecigneting randy • Common Council of the City of South Bend,Indiana IAttested by(signature and title of attester) Printed name of attester I i j I it the designanr.0 body limits the time period during which an area is an economic revitalization area.that limitation does not limit the length of time a I taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 5-1 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 5-1 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 6-1.1-12.1-13.the deduction period may not exceed ten(101 years. iSee 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 5-1.1-12.1-17 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. (a)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. • ,n Cl irk s rut. -toy Co), o�JAM Z025 W SOUAFS REND IN Page 2 of 2 3' Aerial and Street Views amail--art M+ i stir 1 ; , oil r:* iorAilot if?! . --N ,. , er . . ,......, ,.... . - ‘ „/ . — • IIIII 'a':',.,,,,s,s,"0,\, 4q l \�N� • f-i r- ./likiit I{ .,:•‘;'*,, Ga, • Ir ifI 44- View Looking Northeast from Corner of Eddy Street and Campeau Street * • MM Irl View Looking East from Eddy Street ,•rte • ti. ' • w r■41 ' 4.:* • tai,,4 + •k,„ rig , * `a r y fr.„ „ +1 `'a"Le View Looking South from Corby Boulevard , irArbaiit' 'fit" =A� a wf; , _ .. 6 View Looking West from Corby Boulevard Near N. Arthur Street 0. /•k L • tike-,, , iiill • Y i• pre View Looking West-Northwest from Campeau Street A - -i `ll!, ai'. "' '., -"G '. v a n �. ja. 1 . +'F°'.c ��4 .art4 4:-""'r — ale .. - V' '41 Project Renderings ;A � b1 3 . > d Ci •� Z 't ": Ne iA � ridAr 4. ` ,: d ill [ } o I" ouctr {y 4tit. r )` P ,..,fes �' '�1 if, vor .' *Aim. ...« disio,a., ., ..rY . \� V. . .. � _► ♦ .q% '- Al \iii. 110 N''''• "".... gib„ i 7. . ♦ y s!a_Y. � ' 421.11;;'-- -4111_1T.. ".• P1711"::82 i'm -- .dam , ,t,lyy��; . - �_'Y°+� "°p•. ;Ki:<;,: 5d s 4iiiilir M ir tt 1tE k*" i' 11 lI Is. Glx r 1 4 11 ! ■ ■ • R �C Its i �' ■ ■ ■��F� p " om. +fay iiiiiiill5".. • ,n}.. 1 iii 1 rte_. ffice ,)u. 19 7073 DAWN M.JONES CITY CLERK,SOUTH BEND,IN i` Ned in Clerk's Office f L JUL 19 ?On UAV1/N M.JONES CITY CLE�iK,SOUTH BEND,IN MEMORANDUM OF AGREEMENT ----- --.-- (MIXED-USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of July 13, 2023, serves as confirmation of a commitment by Five Corners LLC(the"Applicant"),pending a July 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 1144 Corby Boulevard, South Bend, Indiana 46613, and has Key Number 71-09-06-301-014.000-026. 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 a ten-year (10) 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 Twenty Seven Million dollars($27,000,000.00)for the construction of a mixed-use development at property identified in Section 1 of this Agreement consisting of two buildings featuring an approximately 108-unit apartment building and commercial space,respectively,with total combined area of approximately One Hundred Seventy Three Thousand(173,000) square feet; (b)creating at least nine(9)permanent full-time jobs with a total estimated annual payroll of at least Five Hundred Seventy Thousand Six Hundred dollars($570,600.00); 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 1 •,--, ur - _•—!-=_,--.._ - - - _ — - =2T--Pr _ _7--r"...- -.y. --+PLAIN-44�...... -7.1p, 7.?•!; - -•—• -, — r•:±_•-Tr••s^G r ir' r.. .. - ,I = 1 r8 1 - : 7 r- -. 1 • [ I . r r . — . I. Br 1 a. - I Y. 1 , `t- a,or- -,.... - -.. r. - --' - —_- ... _iti a ---- - -_....L_ --- _`_.. __fir._, -_- - A3 y �' - — _ yit 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. 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 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 3 1 day following the mailing,by registered or certified mail,postage prepaid,return receipt requested, thereof,addressed as set forth below: If to Applicant: Five Corners LLC 814 Marietta Street South Bend, Indiana 46617 Attn: Anne Hayes, Member With a copy to: Holladay Properties 3454 Douglas Road, Suite 250 South Bend, Indiana 46635 Attn:Paul Phair, Vice President of Development 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 project 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 4 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.] • 1- 1 IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the day and year first above written. "Applicant" "City" Five Corners LLC City of South Bend, Indiana By: C 11+ ft/-1,,!_.`.L By: Anne Hayes Sharon McBride Member,Five Corners LLC President, South Bend Common Council Approved as to Legal Adequacy and Form By: this Rachel Tomas Morgan day of . 2023. Chairperson,Community Investment Committee Counsel, South Bend Common Council By: Erik Glavich Department of Community Investment Counsel for Applicant By: James Mueller Mayor 6 EXHIBIT A Abatement Schedule Subject to the adoption by the SBCC of a resolution confirming the adoption of Declaratory Resolution No. 5039-23, the property owner is qualified for and is granted a mixed-use development real property tax abatement for a period of ten (10) years as shown by the schedule outlined below. Year 1 - 100% Year 2 - 90% Year 3 - 80% Year 4 - 70% Year5 - 60% Year 6- 50% Year 7-40% Year 8 - 30% Year 9-20% Year 10- 10% Filed in Clerk's Office JUL 19 7071 DAWN M.JONES CITY CLERK,SOUTH RENO,IN 7 : . _ r 0,1 ...-t , .