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HomeMy WebLinkAboutAmending Chapter 2 Economic Development Target Area to Article 13 ORDINANCE No. 7611-86 Passed by the Common Council of the City of South Bend, Indiana March 10, /436 Attest: City Clerk IRENE K. GAMMON Attest: -. !� J.- President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana March 11 , I436 City Clerk IRENE K. GAMMON Approved and signed by me � I Jak n.,? F i Ig ■ A 'ayor • ORDINANCE NO. 7 ((-ye., ORDINANCE AMENDING CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE BY ADDING AN ADDITIONAL ECONOMIC DEVELOPMENT TARGET AREA TO ARTICLE 13 TO-WIT: 2211 EAST JEFFERSON BLVD. , SOUTH BEND, INDIANA STATEMENT OF PURPOSE AND INTENT: The Indiana Economic Development and Pollution Control Act , Indiana Code § 36-7-11 .9-1 , et seq. and § 36-7-12-1 , et seq. (the "Act") , provides that certain facilities may be financed through the issuance of economic development revenue bonds pursuant to the Act only in the event the Common Council of the political subdivision that intends to issue the bonds finds that the proposed facility is to be located in an economic development target area, as defined in the Act , the proposed facility will not have an adverse competi- tive impact on other facilities of the same kind already operating in the same market area and the proposed facility will contribute significantly to the creation of permanent new job opportunities to the community; and At the present time there are insufficient employment opportunities and insufficient diversification of business and commerce in and near the City of South Bend, Indiana (the "City") ; and Cole Associates Inc. , an Indiana corporation, proposes to construct , expand and equip a facility at 2211 East Jefferson Blvd. , in the City (the "Project") ; and The 1983 Indiana General Assembly amended I.C. §36-7-12 to provide at I.C. §36-7-12-38 for the designation of economic development target areas by the Common Council upon favorable recommendation of the Economic Development Commission. Be it ordered by the Common Council of the City of South Bend as follows : Section I. The Project area has suffered from a lack of development , cessation of growth, and other factors that have made it undesirable for normal development, impaired values , or prevented a normal development or use of property. Section II. The South Bend Economic Development Commis- sion has recommended favorably the designation of the Project area within the City of South Bend as an economic development target area. e Section III. The real estate described below constitutes an Economic Development Target Area pursuant to the require- ments of Indiana Code 36-7-12-38. Section IV. Chapter 2 of the South Bend Municipal Code shall be amended to add an additional subsection to Article 13 which shall read as follows : - The area commonly known as 2211 East Jefferson Blvd. South Bend, Indiana 46615 , more particularly described as follows: TRACT A A tract of land 500 feet in width North and South taken off of and from the entire South end of Lots Numbered 11 , 12 , 13 and 14 , all as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend, reserving an easement on and over the East 50 feet of the North 81 feet of the above tract of land for pur- poses of ingress and egress to and from Lots 11 , 12 , 13 and 14 all as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend. TRACT B Lots Numbered 11 , 12 , 13 and 14 as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend, excepting therefrom a tract of land 500 feet in width North and South taken off of and from the entire South end thereof; together with an easement for pur- poses of ingress to and egress from the foregoing tract from and onto Marshall Street, on and over the East 50 feet of the North 81 feet of the South 500 feet of Lot 14 as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend. Section V. The council further ordains under I.C. § 36-7-11.9-3 (d) that: (a) the proposed facility will not have an adverse competitive impact on other facilities of the same or similar kind already operating in the same market area; and (b) the proposed facility will contribute significantly to the creation of permanent new job opportunities to the City. Section VI. This Ordinance shall be in full force and effect from and after its passage by this Common Council and signature by the Mayor of the City. �.{ p RED { CLERK'S OFFICE SOUTH BEND COMMON COUNCIL 1st 11.55,1 N G �'tX 1 -Oro i PUBLiC HEARING 3—r v-E<C, FEB 1 91986 By 4/ / ~ (de-c--LJ 2nd READING 3_ o—Sri m. NOT APPROVED er REFERRED IRE GAMMON,' PASSED 3-/o -8 CITY CLERK, SO. BED', Olnuttnittnn &part Zo OF atommun Council of tilt CV of*oath limb: Your Committee of the Whole to whom was referred BILL NO. 17-86 A BILL AMENDING CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE BY ADDING AN ADDITIONAL ECONOMIC DEVELOPMENT TARGET AREA TO ARTICLE 13 TO-WIT: 2211 EAST JEFFERSON BLVD. , SOUTH BEND, INDIANA. Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable. Ann B. Puzzello Chairman FREE PRESS PUBLISHING CO. • u KRAMER & MURPHY PROFESSIONAL CORPORATION ATTORNEYS AT LAW SUITE 200 F. RICHARD KRAMER 205 W.JEFFERSON BLVD. MICHAEL C. MURPHY SOUTH BEND, INDIANA 44 (i;O1 219-233-8275 DEAN A.COLVIN March 7 , 1986 Common Council of City of South Bend Fourth Floor County-City Building South Bend, Indiana 46601 Re: Cole Associates Inc. Target Area Application Members of the Common Council: This letter is being submitted to you to provide you with some background and explanation for the application of Cole Associates Inc. to have the real estate located at 2211 East Jefferson Blvd. designated as an Economic Development Target Area. This matter will come before the Council on March 10 , 1986. Cole Associates Inc. is an architectural and engineering firm with offices in Indianapolis , Merrillville , and Chester- ton, and its corporate headquarters at 2211 East Jefferson Blvd. , South Bend, Indiana. It employs 203 full time employees and has an annual payroll of approximately $5 , 200 ,000 . 00 . In 1977 , with the proceeds of a 1977 City of South Bend Economic Development Bond Issue , it purchased the Dugdale Estate for the purpose of constructing its corporate head- quarters . At that time , Cole Associates Inc. made the commit- ment to the City of South Bend to construct a first rate building and also to maintain a certain level of employment in the City. Cole Associates Inc. met these commitments and is currently employing 104 full time employees in the City of South Bend with an annual payroll of approximately $2 ,600 ,000. 00 . At the time Cole Associates Inc. purchased the Dugdale Estate , the real estate was in a substantial state of disrepair and disuse . In constructing its corporate headquarters , Cole Associates Inc. improved the property and created a situation on the property that is of real benefit to the neighborhood. From the commencement of construction, Cole Associates Inc. anticipated that if it were successful it would further expand its business and facilities . As a result of the distinguished performance of Cole Associates Inc. it now has an opportunity for such an expansion. Cole Associates Inc. proposes to construct a 13 ,000 square foot addition to its existing headquarters facility and also to improve a portion of those facilities with the proceeds of a $1 ,500 ,000 . 00 City of South Bend Economic Development Revenue Bond. This project would create 45 new permanent jobs with an additional estimated annual payroll of $1 , 125 ,000 . 00 . However, in order for Cole Associates Inc. to be able to obtain the issuance of an Economic Development Revenue Bond, it is necessary for the real estate located at 2211 East Jefferson Blvd. to be declared an Economic Develop- ment Target Area. Without the designation of this property as an Economic Development Target Area and without the issuance of an Economic Development Revenue Bond the project would not be economically feasible for Cole Associates Inc. Indiana Code § 36-7-11 . 9-4 defines an Economic Develop- ment Target Area as an area that: "Has become undesirable or impossible for normal development and occupancy because of a lack of development , cessation of growth, deterioration of improvements or character of occupancy, age , obsolescence , substandard buildings , or other factors that have impaired values or prevent a normal development of property or use of property." (Emphasis added) It is the opinion of Cole Associates Inc. that this area qualifies as an Economic Development Target Area for the following reasons : First, there has been a lack of develop- ment and growth in the area. In fact , this project is the only project that has been proposed for this area for some time. In addition, since this property is owned by Cole Associates Inc. and since Cole Associates Inc. has its corporate headquarters on this property it is highly unlikely that any other party would be able to develop this real estate. Third, it is not economically feasible for Cole Associates Inc. to proceed with this project without the issuance of an Economic Development Revenue Bond. Finally, and most importantly, it should be noted that this property was purchased prior to the enactment of the Target Area Statute. Most likely, the Dugdale Estate would have qualified as an Economic Development Target Area at the time of the original construction. Given the original intentions of Cole Associates Inc. regarding expansion and the nature and condition of the real estate prior to its acquisition by Cole Associates Inc. , this is the type of development that should have been "grandfathered" in the Target Area Statute. It is the opinion of Cole Associates Inc. that this is exactly the type of "other factors" contemplated by the State Legislature when it passed the Target Area Statute. Cole Associates Inc. has provided the City of South Bend with substantial benefits as a result of the location of its corporate headquarters here. Cole Associates Inc. has every reason to believe that it can continue to be a positive factor in the future development of South Bend and would hope that its expansion project would be so construed. Accordingly, Cole Associates Inc. would ask for the Council' s favorable treatment in designating the real estate located at 2211 East Jefferson Blvd. , South Bend, Indiana, as an Economic Develop- ment Target Area. Thank you for your attention to this matter. Ver tr ly your/, ^ / 4 Michael C. Murphy MCM:mm 4