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HomeMy WebLinkAbout5046-23 Confirming Res., 1144 Corby Blvd., SB., IN 10 Yr. Real Property Tax Abatement , United States of America ****.**.**;*'1* +ir `*� - FILED - .*�*i lit*A� AUG 032023 AUDITOR ST. JOSEPH COUNTY r Certificate STATE OF INDIANA, COUNTY OF ST JOSEPH, ss: I, Dawn M. Jones, Clerk of the City of South Bend, County of St. Joseph, Indiana, hereby certify that the attached and foregoing is a full, true, and correct copy of RESOLUTION 5046-23 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 ADOPTED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,JULY 24, 2023 PRESENTED TO, APPROVED AND SIGNED BY MAYOR JAMES MUELLER, AUGUST 1, 2023 ATTEST: SHARON L. MCBRIDE, PRESIDENT OF THE COMMON COUNCIL ATTEST: DAWN M. JONES, CITY CLERK -RE CEIVED- AUG 0 3 2023 ST. JOSEPH COUNT ASSESSOR _ the original of which is now on file in the office of the Clerk of the City of South Bend, St. Joseph County, Indiana. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of the City of South Bend, St. Joseph County, Indiana, this 3 day of �,,,, , , 20 v23 IP Dawn M. Jones Clerk of the City of South Bend St. Joseph County, Indiana By: A/ ii. AZ I�..�,.../ --- — ._.uty RESOLUTION No. 5046-23 Passed by the Common Council of the City of South Bend, Indiana July 24, 20 23 Attest: ^ZZAAD City Clerk Dawn M. Jones btAttest; x 'l c-q- 4L President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana July 25, 23 20 /0&te,/tp )/k- , 95/Y—JJCity Clerk Dawn M. Jones Approved and signed by me A.M LI t ` 20 2) PP � / t AA-. Mayor BILL NO. 23-49 RESOLUTION NO. 5046-23 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 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 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 7 - 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. if / -t_ f)(ti--;— Sharon ii: a -, Council Presiden South Bend Common Council Attest: la&e(Acp (7)( . 9/41j4) Dawn M. Jones, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of outh Bend, to the Mayor of the City of South Bend, Indiana, on the (25 day of ,,,� , 2023, at o2 o'clock e .m. ,Voeeerk . r())/a.,J Dawn M. Jones, City Cler Office of the City Clerk Approved and signed by me on the 13t. day of 4y 41 ,2023,at I I o'clock a .m. Jas Mueller, Mayor City of South Bend Filen in -',",. STATEMENT OF BENEFITS k4erk'S ems; t,I. REAL ESTATE IMPROVEMENTSFORM SB1/Rea!Property e LT7`• 70?3 I PRIVACY NOTICE ,Is statement is being-completed for .. oat qualifies un: ;fa Ind; ,yco iiderif ono.bo;l Any nformation concerting the-cost Redevelopment or rehabilitation or eaa' m oveent,.IC z.. • C "Y or the.property and specific salaries ..J Residentially distressed area(IC 6-1.1-12.1-4 ,) �ER !yx S, • JONES' paid to ndividual employees ay the QU p property owner:s confidential pet p IC 6-1 1-12,1-5 1. INSTRUCTIONS -N�,SPI I This statement must be submitted to the body designat;ng the Economic Revitalization Area prior to the public h if the designating body requires information from the applicant in making Is decision about whether to designate an Economic Revitalization Area Otherwise this statement must be submitted to the designating body BEFORE the-edevelopment or rehabddatioe 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 rev/falization area before the initiation o; the redevelopment or rehabilitation for which the person desires to claim a deduction 3 To obtain a deduction,a Form 322•PE must be filed with,tie count;r auditor before May 10 in the year in which the addition to assessed vaivanon 15 made or not later than thirty(30)days after the assessment nonce is mailed to the property owner if It was mailed after'lent 10 A arocemy owner who failed lc file a deduction application within the prescribed deadline may file an application between January 1 and May 10 of a subsequent year 4 4 property owner who files for the deduction must provide the county auditor and designating body with a Form CF-1:Real Properly The Form CF-1/Real Property should be attached to the Fotrn 322'RE when the deduction is first claimed and then updated annually for each year the deduction.s aopiicabie IC 5-1 1-12 1-5 1(b) 5 For a Form SG-1/Real Property that;s 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 taxpaye Five Corners LLC Address of taxpayer .umncr vnx;uyct: 814 Marietta Street cin- South Bend ;fair: IN nn. 46601 (Name of contact persor Telephone number E-mail address Firsr\A,ii Anne Lim Name. Hayes (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 prooeCy County DLGF taxing district number `,,,,,r,,,,,1 4 144 Corby Boulevard .,,,. Sours Bend ,` IN ,tt, 46617 St. Joseph 026(South Bend-Portage) Description of real property improvements redevelopment_or rehabilitation ivse additional sheets,t"ecessar'jl Estimated start date;.month,day.rear) Redevelopment of vacant land into two buildings featuring 108 rental 9/13/2023 Estimated impletion crate;month,day.yeah apartment units and retail space 8/31/2025 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current Number Salaries .Aber Retained SalariesNumber Additional i Salaries 0 $ 0 0 $ 0 9 s 570,600 • SECTION 4 ESTIMATED TOTAL-COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values S 0 $216.200 Plus estimated values of proposed project $24.500 000 - . S 19.600.000 Less values of any property being replaced S 0 326.200 1 1 Net estimated values upon completion of project 3 24.500.000 $19.600,000 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER ' Estimated solid waste converted(pounds) Estimated hazardous waste ;urverieu 4:,-,rids) 0 Ii Diner enetits 1 The project is being developed to meet the National Green Building Standard for sustainability and energy efficiency. 1 SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of aumonzed epresentative W'�'�3 (� ' I Date signed;month.day.year) I 16/30/2023 ) Printed name of authorized reoresentative Title Anne Hayes Member 'age 1 of 2 FOR U!E OF THE DOMINATING powY I We find that the applicant meets the general standards in the resolution adopted or to be adopted oy this body Said resolution,passed or to be passed under IC 6-1 I-12.1,provides for the following limitations. .A The designated area nae oeen limited to a penod of time not to exceed N/A calendar years' `see ie/ouvi 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 UNo 2.Residentially distressed areas 1_Yes M No C The amount of the deduction applicable is limited to s N/A Other limitations o, conditions,`„ cmy' N/A E. Number of years allowed 0 Year I O Year 2 ❑Year 3 0 Year 4 ❑ Year 5 ('see below) O Year'e ❑Year 7 ❑'fear 3 ❑Year 9 12C Year 10 F For a statement of benefits approved after June 30,2013.did anis designating body adopt an abatement scneduie per IC 6-1 1-i 1-177 yes ❑No if yes.attach a copy of the abatement schedule to this font/. if no the designating body is required to establish art 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( g t re and title of authorized member of designating body) Telephone number I Dara-i ed(mon Jay.year) Pnrt e.f 3uthorizs m 3meet of des:;n ring holy Name of,ipsi0natin0 hndy LtAibn Common Council of the City of South Bend,Indiana Attested ignature an,title ofatt-.•_r) Pante ame of attester r % f �/I/ , - / •If t.e designating holy I'' he me period ng which an area is an economic revitalization area.that tion does not limit the length of time a taxpayer is entitled to rec-111,a a deduction to a number of years that is less than the number ofyears des) g�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. Fora 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-1iReal 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 8-1 1-12..1-13,an abatement schedule may not exceed ten(101 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. r>/./ ' • in Ciffic� ' {AN 'C? O? SpUT��N� /N/ Page 2of2 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 shall utilize this information and the information required to be filed by the Applicant in the CF-I Compliance with the Statement of Benefits form to verify that the Applicant has at all times complied with the Commitments after the Commitment Date and during the duration of the abatement and for no other purpose. The Applicant further agrees to provide the City with such additional information as requested by the City to determine Applicant's compliance with the Commitments and with local and state requirements within twenty (20) days following any such request.Notwithstanding anything herein to the contrary,the Applicant acknowledges that the City may be required to disclose certain documents provided by the Applicant as required by a court order or applicable law. 4. Substantial Compliance and Rights of Termination. The City, by and through the SBCC, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it reasonably determines that the Applicant has not made reasonable efforts to substantially comply with all the Commitments, as defined in Section 2 of this Agreement, and the Applicant's failure to substantially comply with the Commitments was not due to factors beyond its reasonable control,as described in Section 5 below. 5. Factors Beyond Control. As used in this Agreement, factors beyond the control of the Applicant shall only include factors not reasonably foreseeable at the time of designation application and submission of Statement of Benefits which are not caused by any act or omission of the Applicant, and which materially and adversely affect the ability of the Applicant to substantially comply with this Agreement. Applicant has the burden to communicate to the City any such factors in which it believes is beyond its control and impacting its ability to fulfill the terms of this Agreement or any tax abatement benefit provided to the City. The City reserves the right to investigate the factors cited by Applicant under this Section 5 to the fullest extent possible and may deny Applicant's request upon the completion of the City's investigation. 6. Repayment of Tax Abatement Savings. If at any time during the term of this Agreement the Applicant 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 2 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 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.( 5 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 • 1 By: ci 114. `\ A, By: ir\ kvtq(4a4--/- - Anne Hayes Sharon McBride Member, Five Corners LLC President, South Bend Common Council (aaApproved as to Legal Adequacy and Form By: - Iktlet......— this Rachel Tomas Morgan /,V. day of 2023. Chairperson, Community Investment Committee Counsel, South Bend Common Council �/--- / By: 4 -4/--- /i/�/� Erik Glavich Department of Community Investment Counsel for Applicant AL" By: Jams 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% Year 5 - 60% Year 6 - 50% Year 7 - 40% Year 8 - 30% Year 9 - 20% Year 10 - 10% 7