HomeMy WebLinkAbout5047-23 Confirming Resolution for Property at 1901 N. Bendix Dr. 5 Yr. Personal Property Tax Abatement UnitedStates of America
** ..**.,
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- FILED �-
AUG 0 3 2023
AUDITOR
ST. JOSEPH COUNTY
Certificate
STATE OF INDIANA, COUNTY OF ST. JOSEPH, ss:
I, Dawn IVI. 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 5047-23
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
i
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
-RECEIVED-
AUG 0 3 2023
ST. JOSEPH COUNTY
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 he official Seal of the City
of South Bend, St. Joseph County, Indiana, this ,', day of ,.;, 20 ✓ __
/
Dawn IVI. Jones
Clerk of the City of South Bend
St. Joseph County, Indiana
By: i.1111 I i t4.4,44......
'-pty
RESOLUTION
No. 5047-23
Passed by the Common Council of the City of South Bend, Indiana
July 24, 20 23
*66)
Attest: OL) ) City Clerk
Dawn M. Jones
Ckit.
Attest l n7l , '1 jjt_-- President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
July 25, 23
20
Ak .-7Y1' , pia)
City Clerk
Dawn M. Jones
Approved and signed by me IL)or r 1, 20 Z
3.
kitliN Mayor
BILL NO. 23-50
RESOLUTION NO. 5047-23
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.
SiltialYt 1/(- ((/
Sharon McBride, Council President
South Bend Common Council
Attest:
kkaZ 21 '
Dawn M. Jones, City Clerk
Office of the City Clerk
Presented by me, the undersigned Clerk of the City f o th Bend, to the Mayor of the
City of South Bend, Indiana, on the g5 day of , 2023, at a
o'clock r .m.
/46,-Up ))( gke.i_d)
Dawn M. Jones, City Clerk
Office of the City Clerk
t a
Approved and signed by me on the l day of /TM u!/ , 2023, at II o'clock
A.m. iJa es Mueller, Mayor
City of South Bend
Filed in Clerk's Office
JUL 0 5 2023
+
�_ ` STATEMENT OF BENEFITS —.... M.JONES ` FORM SB-1 I PP
'',' t ' PERSONAL PROPERTY
• , t CITY CLERK,SOUTH BEND,iN PRIVACY NOTICE
State Form 51764 R5 r;-211
:• .,, / Prescribed by the Department of Local Government Finance
n.. Any information concerning the cost
of Ise property and specific salaries paid
to individual employees oy the property
owner is confidential Der IC 5-1.1-12.1-5 1
INST.RUCTIONS-
1 This statement must be submitted to the body designating the Economic Revitalization Area poor to the uubiic hearing if the designating body requires
Information from the applicant rn making its decision snout whether to designate an Economic Revitalization Area Ornery/6'e this statement must be
submitted to the designating body BEFORE a parson,nstalls the new manufacturing equipment and/or research and development equioment,and/or
cgst.cai distribution equipment ard'or:nfor:nation technology equipment for which the person wishes to claim a deduction
.- roe statement of benefits form must be submitted to fie designating body and the area designated an economic revitatr7anon area before the installation of
quelif y'ng abnfable equipment for which the person desires to claim a deduction
3 To obtain a deduction,a person must file a certified deduction schedule with toe person's personal property return on a certified deduction schedule
(Form 103-ERA)with the township assessor of the township where the property is situated or with the county assessor if there is no township assessor for
the township. The 103-ERA must be filed between January 1 and Mai 15 of the assessment year in which new manufacturing equipment and/or research
and development equipment and/or logistical distribution equipment and/or information technology equipment is installed and fully functional unless a filing
extension has been obtained A person who obtains a filing extension must file the form between January t and the extended due date of that year
4 Properly owners whose Statement or Benefits was approved,must submit Form CF-1,PP annually to show compliance with the Statement of Benefits.
(IC 6-1 1-12 1-5 6)
5 For a Form SE-1/PP that is approved atter June 30,2013.the designating body is required to establish an abatement schedule for each deduction allowed
For a Form SE-1/PP that is approved pont to July 1,2013 the abatement schedule approved by the designating body remains in effect IC 6-1 1-12 1-17)
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer Name of contact person
Crossroads Solar Enterprises LLC PirsiNamr Patrick Las:Name: Regan
Andress of taxpayer Telephone number Eaad
.,inib,Aodtiln!cf, 1901 N. Bendix Dr South Bend <:,:r. IN err 46628 (607)759-1058 .•e.•1.0»••..••
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number(s1
Common Council of the City of South Bend
Location of property County DLGF taxing district number
N,.,,,„. ,i S
;uri-crl.
1901 N. Bendix Dr r,;,. South Bend se,,,.IN sit, 46628 St.Joseph 026(South Bend-Portage)
Description of manufacturing equipment and/or research and development equipment ESTIMATED
and/or logistical distribution equipment and/or information technology equipment. START DATE COMP_ETIGN DATE
'S.:Se additional sheets if necessary?
The equipment is a fully automated solar panel assembly Manufacturing Equipment
line. It will include a laminator, sun simulator, framing, R 3 D Equipment
soldering unit and numerous conveyors. This equipment
will increase our productive capacity by 4X. Logist Dist Equipment
IT Equipment
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current Number Salaries Number Retained Salaries Number Additional Salaries
14 $ 582,400 14 $ 582,400 15 $750,000 1
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE:Pursuant to IC 5-1.t-.2 1-5 1(d)(2i the
MANUFACTURING R&D EQUIPMENT LOGIST DIST IT EQUIPMENT
E• IPMEt1T _ EQUIPMENTCOST of the property is confidential. COaI- ASSESSED COST 'ASSESSED COST ASSESSED cosi- ASSESSED i
VAI UE VALUE VALUE VA_LIE
Current values s o
Plus estimated values of proposed protect $1.000,000
I.ens values of any property being replaced $0
Net estimated values upon completion of project $'Orto ono $o ; $0 $0 6 0 . $0 $0 $0
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated sdnrl waste converted i},, J G I Estimated hazardous waste converted;wards) 0
Other benefits —:
SECTION 6 TAXPAYER CERTIFICATION
I hereby fy that th• representat this statement are..
Sigratur of dud,ed.-.res t five Gale Au d RAM.day year)
c)t7
�rtrt' ''►/t�ta�of aaustharted enrcs-..yy']0 /^1 � Title
Page 1 of 2
FOR USE OF THE DESIGNATING BODY
We nave reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards
adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1-12.1-2.5, provides for the following limitations as
authorized ur.der IC 6-1.1-12.1-2
A. The designated area has been limited to a period of time not to exceed N/A calendar years'(see below). The date this designation expires
rs 12/31/2026 . NOTE This question addresses whether the resolution contains an expiration date for the designated area
B.The type of deduction that is allowed in the designated area is limited to.
1 .Installation of new manufacturing equipment; IX Yes ❑No ❑ Enhanced Aoatement per IC 5-1.1-12 1-18
2. Installation of new research and development equipment, ❑Yes ®N o Check box if en enhanced aoalement was
3. Installation of new logistical distribution equipment. ❑Yes No approved for one or more of these types.
4.Installation of new information technology equipment ❑Yes ®N o
C.The amount of deduction applicable to new manufacturing equipment is limited to$ 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 S N/A cost with an assessed value of
$ N/A (One or both lines may be frlied out to establish a limit,if desired.)
E The amount of deduction 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 titled 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
G. Other limitations or conditions(specify) N/A
H. The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment and/or
new information technology equipment installed and first claimed eligible for deduction is allowed for
Year 1 ClEnhanced Abatement per IC 6-t.1-12.1-18
❑ ❑ Year 2 ❑ Year 3 ❑ Year 4 ® Year 5
Number of years approved.
❑ Year 6 ❑ Year 7 Cl Year 8 Cl Year 9 ❑ Year 10 (Enter one to twenty(1-20)years;may not
exceed twenty(20)years)
I. For a Statement of Benefits approved after Ji me 30.2013,did this designating body adopt an abatement schedule per IC 6-1,1-12.1-17? 11Yes ❑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 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.
Apt o, by:(signature arid tale ora zed in oer ofdesignaing body) Telephone number Date si ed nt.day r)
Print. ._.f out oozed member d ibody Name of designating body 7
C n r9 N Common Council of the City of South Bend,IN
:.tested xy 1 =tune and Pilo o arrester) Pn name or atter
if th •-signating body limits M. tin'. period dun ch an area is an economic revitalization area that Imitation does not limit the length of time a
1 taxpayer is entitled to receive a• duction 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
Seo.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 art 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 taxpayers investment.
Ib)1 his subsecttor 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.?-12.1-18,an abatement schedule may not exceed ten(10)years.
(c)An abatement schedule approved for a particular taxpayer before July 1.2013,remains in effect until the abatein t schedule mires unc er
the terms of the resolution approving the taxpayer's statement of benefits. Filed In Clerk's Office
JUL-AWJOI4Es
U 5 2023
Page 2 of 2
CIN CLE KN SOUTH BEND,IN
MEMORANDUM OF AGREEMENT
(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
1
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 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.
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,
2
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.
II. 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
3
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.]
4
IN WITNESS WHEREOF,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
6� % 0 _oA_
'y'
Ofr — By:
Patrick Regan Sharon McBride
President President, South Bend Common Council
Crossroads Solar Enterprises LLC
/ f
By:
• pproved as to Legal Adequacy and Form this
Rachel Tomas Morgan
aye. day of , 2023. Chairperson, Community Investment
Committee
iLi:,i JA,:----Th,,,
Counsel, South Bend Common Council
fi.
By. /
Erik Glavich
Department of Community Investment
Counsel for Applicant ht"---
By:
James Mueller
Mayor
5
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%
6