HomeMy WebLinkAboutBill No. 23-50 Confirming Res. Property 1901 N. Bendix Dr. 5 Yr. Personal Property tax abatemt pled CITY OF SOUTH BE512r0ffr
COMMUNITY INVESTMENT JUL 19 7073
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: Personal Property Tax Abatement Petition for Crossroads
Solar Enterprises LLC
Dear Council Member Tomas Morgan:
Please find the enclosed information pertaining to a personal property tax abatement petition
submitted by Crossroads Solar Enterprises LLC, an Indiana Limited Liability Company. The •
abatement would apply to new equipment to be installed at 1901 N. Bendix Drive in South
Bend.
On July 10, the Common Council approved Declaratory Resolution No. 5042-23 for this
abatement. The Council will consider the Confirming Resolution. This petition package includes:
• Department of Community Investment's summary report
• Petition for abatement
• Statement of Benefits form (SB-1 / PP)
• Supporting information
The report contains the Department's findings relative to the above-mentioned petition. The
petitioner plans to purchase and install a new construction line at a cost of$1,000,000. The
investment is projected to quadruple the production of solar panels and will enable Crossroads
to hire 15 new full-time employees.
The project meets the requirements established by Sections 2-79 et seq. and would qualify for a
five-year(5) personal property tax abatement. A representative from Crossroads Solar
Enterprises 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 574,235.9371 www.southbendin.gov
Filed in Clerk's Office
BILL NO. 23-50 JAIL 19 ?on
RESOLUTION NO. 5047-23 DAWN M.JONES
CIN 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
1901 N. Bendix Drive, South Bend, IN 46628
AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
FIVE-YEAR (5) PERSONAL PROPERTY TAX ABATEMENT FOR
Crossroads Solar Enterprises 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 commonly known as 1901 N.
Bendix Drive, South Bend, Indiana 46628, and which is more particularly described as follows:
Business Personal Property
and which has Key Numbers to be assigned, be designated as an Economic Revitalization Area;
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 personal 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 personal property tax deduction for a period of five (5) years as shown below
pursuant to Indiana Code 6-1.1-12.1-17 and further determines that the petition,the Memorandum
of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits
comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana
Code 6-1.1-12 et seq.
Year 1 - 100%
Year 2 - 95%
Year 3 - 90%
Year 4 - 85%
Year 5 - 80%
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 Filed in Clerk's Office
City of South Bend
JUL 1 9 9(171
DAWN M.JONES
CITY CLERK,SOUTH BEND,IN
TAX ABATEMENT REPORT
TO: South Bend Common Council
FROM: Erik Glavich, Director, Growth and Opportunity
SUBJECT: Personal Property Tax Abatement Petition for Crossroads Solar
Enterprises LLC
DATE: July 5, 2023
On July 5, 2023, a petition for tax abatement from Crossroads Solar Enterprises LLC was filed
with the Office of the City Clerk. The petition seeks consideration for a personal property tax
abatement for property located at 1901 N. Bendix Drive 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 (a copy of which is
attached), investigated the area, and makes the following report.
Project Summary
• Crossroads Solar Enterprises LLC is purchasing equipment for$1 million to create a
second production line. This investment will greatly enhance production and will enable
Crossroads Solar to hire 15 new full-time employees by the end of 2023.
• Crossroads Solar's goal is to produce top quality solar panels with people who have
made mistakes, creating second chances, and fostering a greener earth one panel at a
time. The company's employees are released felons who have served their time and
earned the opportunity to reenter the workforce with dignity.
• Crossroads Solar recently moved production to 1901 N. Bendix Drive after outgrowing
their former space located on E. Sample Street.
Employment Impact
• Crossroads Solar will retain the 14 employees currently working at the facility.
• By the end of 2023, the petitioner expects to hire at least 15 new full-time employees
with an estimated total annual payroll of approximately $750,000.
Tax Estimates
The petitioner qualifies for a five-year (5) personal property tax abatement.
• Estimated personal property taxes on the new equipment during the five-year (5)
abatement period: $80,573
o Estimated taxes being abated during the abatement period: $68,651
o Estimated taxes to be paid during the abatement period: $11,922
Abatement Qualification
1. A review of the tax abatements previously granted finds that the petitioner has not been
granted or is associated with a previous abatement.
2. The property is properly zoned for the proposed project.
3. Taxes on the property have been paid in full.
4. A review of the South Bend Redevelopment designation areas finds that the property is
in the River West Development Area.
5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets
the qualifications for a 5-year personal property tax abatement under Division 10
(Personal Property Tax Abatement), Section 2-84.2 (Tangible Personal Property Tax
Abatement).
2
5-Year Abatement July 5,2023
Crossroads Solar Enterprises LLC
South Bend Portage Township
Personal Property Tax Abatement Schedule*
Estimated Equipment Cost: $ 1,000,000
Asset Pool: Pool#3(9-12 years)
Property Address: 1901 N.Bendix Drive
Tax Key Number: TBD
Year 1 Year 2 Year 3 Year 4 Year 5
Assessed Value(AV)
True Tax Value(TTV) 40% 60% 55% 45% 37%
New Base(Equipment Cost x TTV) 400,000 600,000 550,000 450,000 370,000
Abatement 100% 95% 90% 85% 80%
Abatement Deduction (400,000) (570,000) (495,000) (382,500) (296,000)
Net Assessed Value - 30,000 55,000 67,500 74,000
Property Taxes
Assume constant tax rate of 5.2897%
Gross Tax(Tax Rate x Net AV) - 1,587 2,909 3,571 3,914
Debt Service(0.3997%of Net AV) - 120 220 270 296
Local Tax Credit(8.7112%of GT-DS) - (128) (234) (288) (315)
Circuit Breaker Credit - - - - -
Taxes Due $ - $ 1,579 $ 2,895 $ 3,553 $ 3,895
Circuit Breaker Cap 3% 3% 3% 3% 3%
12,000 18,000 16,500 13,500 11,100
Year Abatement New Projected Taxes Abated Net Taxes
Tax Paid
1 100% $ 13,599 S (13,599) $ -
2 95% 20,398 (18,819) 1,579
3 90% 18,698 (15,803) 2,895
4 85% 15,299 (11,746) 3,553
5 80% 12,579 (8,684) 3,895
Years 1-5 Total: 80,573 (68,651) 11,922
Years 6-10 Total: 35.017 - 35,017
*This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023.
The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates.
z=lisk 4, Department of Community Investment
" - City of South Bend
•
Filed in Clerk's
JLQ20?3Office
City of South Bendproper Instructions:Complete pages 143 _
AND the Form S8-1 for
ON:44-A.,,oNEs
Petition for Incentives the type of abatement(real ATrC g01..TH BEND,IN
_--
property or personal property)
Petition must include a$250 filing fee payable to the City Clerk's Office for which you are applying.
before processing can be complete
General Information Project Name I Project Number
Legal name as registered with
Seoetaryof State Crossroads Solar Enterprises LLC
Business structure LLC
Company website crossroads-solar.com
Proposed Project Information
ProPOsed project address 1901 N.Bendix Dr Parent company name Crossroads Solar Enterprises LLC
aty,state,zip I South Bend,IN 46628 Lep!menu Crossroads Solar Enterprises LLC,
Ste aaeage or acreage required Is the real estate owned
or leased? Owned
Square feet of facifity If leased,by whom? N/A
Primary Contact Information
Primary company contact name fide
Patrick Regan President
Address of company contaa 1901 N. Bendix Dr Phone 607-759-1058
my,Stare,Zip South Bend, IN 46628 Ernie'
patrickregan@crossroads-solar.com
Senior OffIdal Information
Company senior official name Mks
See above
Address of eompany contact Phone
III different from above)
City,State,Zlp
I Erna
Consultant Information/Agent
Hired business consultant/agent name N/A Consultant release?(YIN)
Address Local economic development partners
approval?(YM)
City,State,Zip Email
Project Overview
Brief description of your
company,project,and why the We are currently expanding our productive capacity and workforce and
property h necessary for have purchased a new (and much larger) assembly line. This expansion
economic growth
will require doubling our workforce. We have plans for 2025 to add
another assembly line to further expand opportunities.
Crossroads Solar produces solar panels for the solar industry, we do so
with men and women reintegrating from incarceration back into society.
We provide jobs and opportunities for these men and women where
otherwise they may struggle.
Certified Technology Park appropriate N/A
Is Me project in a Tan Incremental Finaminl
(TIF)area?if so,winds? River West
Have Building Permits bean Issued?(Y/N) Number of residential units creract by
1Note-Not eligible for abatement if Yesj N pr0eGt N/A
if this is a petition for personal property tar abatement,has
--
the equipment been Installed? No
Investment Details
Public infrastructure needs Nasally$04 funding been What Is the value of any equipment being purchased In What Is the value of any equipment bang
(Off-site of project in dollars) received? Indiana for the project? purchased from out of state for the project?
N/A N/A 0 $1,000,000
New Pr9.1gg investments
Calendar Year Z022 2023 2024 202S 2026 2027 2028 2029
Land AcpulsitIon
Building Lease Payments $80,000.0o $85.00
Building Purchase Costs
New Building Construction
Existing Building Improvements
New Machinery&Equipment
Special Tooling/Retooling
New Furniture/Flxtures
New Computer/li Hardware
New Software
On•slte Rall infrastructure
On-site Fiber infrastructure
rTOTAL $0.00 $1.080.00000 $85.00 S i.000.00000 $0.00 $0.00 $0.00 $0.00
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year lobs retained Hourly Cumulative 0 of net NEW lull time Hourly ref SIC wage,w/o Total training Torl 0 to be
s
waavers5�e,o permanent jobs aea ted at project benefits or bonuses,of expenditure- trained-not
e.w/
benefits or cumulative net new lobs not Cumulative
bonuses cumulative
2023 14 $20 80 15 5 25 00 15
0024
2025 15 0 05 00 15
2026
2027
2028
2023
2030
1031
2032
2033
2034
Provide hourly wage Information for new employees in the following positions.
Full time Part time
Laborers $18.00
Technical $25.00
1J Managerial $25.00
Administrative $40.00
Who will tie the,ediwdual responsible for coordinating
with WorkOrie on recruiting?
Does your company have an EEO hiring policy? I Are you an EEO employer?
Please list the number of full time and part time minority and/or female I Please describe your commitment to
employees for the following years: I diversity and Inclusion by detailing your
I --1 outreach and recruitment efforts for the lest
vear 2020 2022 202=
three years as well as current polities.
Full Time Part lime Full Time Part rime Full Time Part Time
Black 4 I 1 4 `y
Hispanic i 2 i
system largeiy shapes nor elligiblerpool of
Afian �ip;�,c.rn::.rvc wnn<a!m«gym Se reef-, ;
lot With these parole eysler-r The drversoy ut
Indian I r I our labor terse rib zuates n part because our
wllIngness to nee froth the reentry program.
Female 3 4 i I 1 When our workers-go home"Bom the.Center
ellen lose ower,iN Cor a sho,tone ben,.
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.
complete the table below with theappropriate information. If Qualify
Please
(Yes or No) gained Points Available Points
you qualify for the points,please enter the full amount of available
' _ points.
I 1 conitruStlon_Related Cantractorsl.
I
A. IEmploy Local Companies(75%) 20
B. (Purchase Materials from Local Companies(75%) 20
C. Require Employees vs.Independent Contractors 19
C. Require Prevailing Wage 22
E. Require Health Benefits 22
F. Require Retirement Benefits 18
G. Maintain Affirmative Action Plan 20
tSub-total Construction Related: 0 131
2 wut X Benefit...91414A IQwntd:
A. Pay Target Wage Levels V 33 33
B. Provide Health Benefits Y 34 34
C. Provide Retirement Benefits Y 29 29
D Provide Training Y 28 28
E. Provide Child Care 15
F. Provide Transportation Assistance 14
G. Provide Employer Assisted Housing program 9
Sub-total Wage&Benefit Related: 124 162
3 Workforce Rel@ted:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
Maintain Affirmative Action Plan Y 35 35
0. Provide Targeted Hiring Preference Y 34 34
Sub-total Workforce Related: 152 152
4 u rt a _unld I Fa ilH
Support a SB Municipal Facility(donations to the
A. zoo,conservatory,museum,etc) N 0 84
Name of Facility
I _(Sub-total Municipal Facility: J 84
Subtotal from Above: 276
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/oorrpersCn3TAroperty tax aba ent consideration and pursuant to I.C.,6-1.1-12.1.1,et seq.,and
Soya+Wend MLt ipal Code Sec et seq.,for this petition state the above.
Submitted By: (//,. •.46, e Date: 7//)Ci.
i
For Staff Use Only Below This Line
N/A-Personal Property:New Assembly Line
What Is tirecurrent assessed value? Real Property: Personal Property.
What Is the projected assessed value? Real Property: Personal Property:
What is the tar key number for this project?
What Is the six digit NAICS code?
Please attach a Goode map and street New of the loction.
Please list the amount of real and personal property lanes Real Property Taxes: Personal Property Taxes:
paid for the last flue years when applicable.
Year One
$6,123.10
Year Two $4,364.98
Year Three
Year Four
Year Five
Please fill out the following Public Benefit Summary Information and add to total from above.
ar N Points Points
Public Benefit Item:
Protect Related:
5 A. Redevelop a Site that has Special Needs 4a
8. Develop Based on Local University Research 35
C Achieve a Physical Element of a Plan 36
Sub-total Project Related: 120
6 Super Site Projects,jpoint values are cumulative?;
A. L00%to 199% 25
B. 200%to 299% 68
C. 300%to 399% 6%
D 400%and Over • 52
?Sub-total Super Site Projects: 210
7 Pa1for MunidAal infrastructure:
A. loay for Overs.ring or Upgrading 14
B. Pay for 26-50%of Extension Cost 26
C. Pay for 51-75%of Extension Cost 39
0. Pay for 76-100%of Fxtenswn Cost 52
1---ISub.total Infrastructure Related: 131
Total from Applicant Section: 276 539
Total from Staff Section: 0 461
Total Public Benefit Points: 276 1000
Filed in Clerk's Office
JUL 0 5 2023
DAWN M.JONES
CITY CLERK,SOU l H BEND,IN
r- — -
Filed in Clerk's Office
JUL 0 5 2023
z,{; o*r;- STATEMENT OF BENEFITS [}AWN M.JONES FORM SB-1 I PP
PERSONAL PROPERTY CITY CLERK,SOUTH BEND,IN
+l State Form 51764(R5 i 1-"•1) -ti
PRIVACY NOTICE
'�• »+ Prescribed by the Department of Local Government Finance Any information concerne,q ire cost
o'the properly and specific Satan es paid
to individual employees oy the property
owner is confidential per IC 5-1.1-12 1-5.1
INSTRUCTIONS
1 This statement must be submitted to the body designating the Economic Revitalization Area prior to the oubhc hearrrg,f the designating body requires
tntormatiot from the applicant in making its decision about whether to designate an Economic Revitalization Area Otherwise this statement must he
submitted to the designating body BEFORE a person,nstalls the new manufacturing equipment and/or research and development equipment,and/or
icgis;tical distribution equipment and/or information technology equipment for which'he person wishes to claim a der/uchon
7 the statement of benefits form must he submitted to the-desrgnat sg body and the area des,gnated an economic revrtaioation area before the installation of
giidiiiying abatable equipment for which the person riesnes to claim a deduction
3 To octain a deduction,a person must lite a certified deuuct;on schedule with the person's personal property return on a certified deduction schedule
(Form 103-ERA)with the township assessor o!the township wnere the property is situated or with the county assessor it there is nc township assessor for
the township The 103-ERA must be filed between Jar'iary 1 and May 15 of the assessment year in wire»new manufacturing equipment and/or research
and development equipment and/or logistical distribution equipment andior information technology equipment is installed and hilly functional unless a tiling
extension has been obtained A person who obtains a tiling extension must file the form between January r and the extended due date of that year
4 Property owners whose Statement of Benefit:;was approved,must submit Form CF-1iPP annually to show compliance with the Statement of Benefits
(IC 6-1 1-12 1-5 6)
5 For a Form S.9-1/PP that is approved atter June 30.2111:l the designating body is required to establish an abatement schedule for each deduction allowed
For a Gorr»SR-1/PP that is approved prior to Juts 1 %0*3 the abatement scheNuie approved by the designal ng body remains'n effect -IC 6-1 1-12 I-17)
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer Name of contact person
Crossroads Solar Enterprises LLC F,r,:\,,�� Patrick terra,, Regan
Ac,.,-,s of taeeayer Telephone number C:r,d
1901 N. Bendix Dr South Bend IN 46628 (607)759-1056
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of desigr a .. ResotuUnn number ts)
Common Council of the City of South Bend
uocafian 0!property County IDLGF taxing district number
\Una. ,,.„i Sl roil
1901 N. Bendix Dr South Fiend IN ar ase?$ St. Joseph I 026(South Bend-Portage)
Description of manufacturing equipment andlor research and development equipment ESTIMATED
and/or logistical distribution equipment anrlinr information technology equipment. START DATE GOMP_ETION DATE
:Use additional sheets of necessai
The equipment is a fully automated solar panel assembly Manufacturing Equipment
line. It will include a laminator, sun simulator, framing, R&D Equipment
soldering unit and numerous conveyors. This equipment --
will increase our productive capacity by 4X. Logi6t plat Equipment
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Ci.: • /'lump•- Salanes 50G,4OO Number Retained Salaries 582,400 Number Additional Salaries �CO'00n
SECTION 4 JO ESTIMATED TOTAL COST AND VALUE OF PROPOSEDuiPROJECT J V
NOTE:Pursuant to IC 6-1.1-12.1-5.1(d)(2)the MANUFACTURING R&D EQUIPMENT LOGIST DIST IT EQUIPMENT
EQUIPMENT EQUIPMENT
COST of the property is confidentialGOaT ASSESSED COST l ASSESSED COST ASSESSED coos ASSESSED
VAI UE vALuE VALUE AWE
Current values $0
Plus estimated values of proposed project $1,000,000
Less values of any property being replaced $0 r _
Net estimated values upon completion of project $1.000,000 50 ' $0 $n $o $,, $0 $0
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converters ipnw:osl 0 _ Estimated hazardous waste converted;poun(ts) 0
Omeroer,ents. ---- ----- -------
SECTION 6 TAXPAYER CERTIFICATION
I hereby ity that Ih• represenlat II this statement are true,
Siq rata, or autho•. p res •live Cate
us) torah. lay yew-)
�.liaw.i i ? ' 0btl
Q J
PT ,.a ri. a(o!authontedlepicsef, Title
��
Page t of 2
FOR USE OF THE DESIGNATING BODY
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards
adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5. provides for the following limitations as
authorized under IC 6-1.1-12,1-2
A. The designated area has been limited to a period of time not to exceed N/A calendar years'(see below). The date this designation expires
is 12/31/2026 . NOTE This question addresses whether the resolution contains an expiration date for the designated area
B.The type of deduction that is allowed in the designated area is limited to:
1 .Installation of new manufacturing equipment; Yes ❑No ❑ Enhanced Abatement per IC 6-1.1-12.1-18
2. Installation of new research and development equipment: ❑Yes NI No Check box if an enhanced abatement was
3. Installation of new logistical distribution equipment. ❑Yes �i No approved for one or more of these types,
4. Installation of new information technology equipment: ❑Yes ®N o
C.The amount of deduction applicable to new martufacwnng equipment is limited to$ N/A cost with an assessed value of
$ N/A . (One or both lines may be filled out to establish a limit if desired)
D,The amount of deduction applicable to new research and development equipment is limited to 5 N/A cost with an assessed value of
$ N/A . (One or both lines may be filled out to establish a limit.A desired.)
E The amount of dedurtior applicable to new logistical distribution equipment is limited to$ N/A cost with an assessed value of
$ N/A (One or both lines may be tilled out to establish a limit,if desired.)
F. The amount of deduction applicable to new information technology equipment is limited to$ N/A cost with an assessed value of
N/A . (One or both lines may be filled out to establish a limit.if desired 1
G Other limitations or conditions(specify) N/A
H. The deduction for new manufacturing equipment and/or new research and development equipment andior new logistical distribution equipment and/or
new information technology equipment installed and first claimed eligible for deduction is allowed for
❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 Year 5 ❑Enhanced Abatement per IC 6-1.1-12.1-18
Number of years approved.
[-IYear 6 ❑ Year 7 I-] Year 8 ❑ Year 9 ❑ Year 10
(Enter to twenty years:may not
exceed twenty(20)years 1
I. For a Statement of Benefits approved after Ji ine 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12 1-170 NYes ❑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.
Also we nave reviewed the information container]in the statement of benefits and find that the estimates and expectations are reasonable arid have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved by:(signature and title of authorized member of designating body) Telephone number Date signed(month.day year)
I )
Printed name of auihonzed member of designating body Name of designating body
Common Council of the City of South Bend,IN
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.
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 51 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)1 his 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 taxpayei before July 1,2013,remains in effect until the abateme t sch e e pares un er
the terms of the resolution approving the taxpayer's statement of benefits. Filed In Clerk's Office
JUL 0 5 2023
Page 2 of 2
CITY CIDE K SOUTTH BEND,IN
Current solar panel construction line located at 1901 N Bendix Dr.
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JUL 19 7073
DAWN M.JONES
CITY CLERK,SOUTH BEND,IN
Filed in Clerk's Office
JUL 19 2023
MEMORANDUM OF AGREEMENT DAWN M.JONES
CITY CLERK,SOUTH BEND,IN
(PERSONAL PROPERTY TAX ABATEMENT)
This Memorandum of Agreement(Agreement)dated as July 13, 2023, serves as confirmation
of a commitment by Crossroads Solar Enterprises LLC (the"Applicant"), pending a July 24,2023,
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(Commitments).
1. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and
a Confirmatory Resolution by the South Bend Common Council(the"SBCC"),the City of South Bend,
Indiana, (the "City") commits to provide a five-year (5) personal 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 a capital expenditure of no less than Nine Hundred Forty Thousand dollars
($940,000.00) associated with the purchase of manufacturing equipment to produce solar panels at
1901 North Bendix Drive, South Bend,Indiana 46628.
(b)creating at least fifteen(15)permanent full-time jobs with a total estimated annual payroll
of at least Seven Hundred Fifty Thousand dollars($750,000.00); and
(c) acting in good faith to complete the project as described in its Application.
2. 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
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.
3. 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 1 of this Agreement, and the
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Applicant's failure to substantially comply with the Commitments was not due to factors beyond its
reasonable control, as described in Section 4 below.
4. 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 4 to the fullest extent possible and may deny Applicant's request upon the
completion of the City's investigation.
5. 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.
6. 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.
7. 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 al I 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.
8. 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,
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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.
9. 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.
10. 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.
11. Applicant's Consent to Jurisdiction. The Applicant hereby irrevocably consents to the
jurisdiction of the Courts of the State of Indiana and of the St.Joseph County Circuit or Superior Court
in connection with any action or proceeding arising out of or relating to this Agreement or any
documents or instrument delivered with respect to any of the obligations hereunder, and any action
related to this Agreement shall be brought in such County and in such Court.
12. Notices.All notices,requests,demands,and other communications required or permitted under
this Agreement shall be in writing and shall be deemed to have been received when delivered by hand
or by facsimile(with confirmation by registered or certified mail)or on the third business day following
the mailing,by registered or certified mail,postage prepaid,return receipt requested,thereof,addressed
as set forth below:
If to Applicant: Crossroads Solar Enterprises LLC
1901 N. Bendix Drive
South Bend, Indiana 46628
Attn: Patrick Regan,President
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 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.
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.]
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IN WITNESS WI IEREOF,the parties hereto have executed this Agreement as of the day and year first
above written.
"Applicant" "City"
Crossroads Solar Enterprises LLC City of South Bend,Indiana
By: de.4 ��L� By:
Patrick Regan Sharon McBride
President President, South Bend Common Council
Crossroads Solar Enterprises LLC
By:
Approved as to Legal Adequacy and Form this
Rachel Tomas Morgan
day of , 2023. Chairperson, Community Investment
Committee
1:,?Counsel, South Bend Common Council �� "
By:
Erik Glavich
Department of Community Investment
Counsel for Applicant
•
By:
James Mueller
Mayor
•
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EXHIBIT A
Abatement Schedule
Subject to the adoption by the SBCC of a resolution confirming the adoption of Declaratory Resolution
No. 5042-23, the property owner is qualified for and is granted a personal property tax abatement
for a period of five(5)years as shown by the schedule outlined below.
Year 1 - 100%
Year 2- 95%
Year 3 - 90%
Year 4 - 85%
Year 5 - 80%
Filed in Clerk's Office
AIL 19 71171
DAWN M.JONES
CITY CLERK,SOUTH BEND,IN
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