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Home My WebLink AboutBill No. 23-64 Tax Abatement Waiver of Non-Compliance for Nilkanth Properties 4836 W. Western Avenue Filed in Clerk's 0fifi ilkanth Properties NOV 0 7 2023 07p5 Brownstone praiger, IN 46530 DAWN M.JONES CITY CLERK,SOUTH BEND, IN South Bend Common Council County City Building, 4th Floor South Bend, IN 46601 RE: Tax Abatement Waiver of Noncompliance Dear Common Council Members, On November 12, 2018, Nilkanth Properties, LLC, was granted a real property tax abatement for our facility at 4836 West Western Avenue in South Bend. The Common Council approved Resolution No. 4691-18, which established a 7-year abatement. We are requesting a waiver of noncompliance for failure to file Forms CF-I/RE and 322/RE for tax years 2020, 2021, 2022, and 2023. We filed the forms with the Department of Community Investment but failed to file the forms with the St. Joseph County Auditor's Office. This was a regrettable oversight that has been corrected, and we will file the forms with the correct office moving forward. At the time we received the abatement in 2018, estimated private investment for the real property associated with the project were $1 .66 million. Construction began in June 2019 to build the approximately 3100 sq ft. facility, and we completed the project in May 2020. The total cost of construction was about $1 .60 million. As of today, Dairy Queen Grill and Chill has committed $2.1 million to the project. Our investment in local businesses has grown, as well. The additional investment not only includes the initial movement and installation of equipment but has also provided for the purchase of new equipment, along with creating ''04 ,d'S'z x' r z°tx 4 krw ; '�'� ga'� "" {4'`igY* t „., = ti ,..�;?: 'zx^- greater need for continuous support of maintenance for both the property and building. We are committed to investing in our employees by increasing our starting wage rate as market competitive plus, which has deepened our employees' sense of job security. We employ 50 people, which exceeds the estimated number of 45 employees we provided in 2018. Since the completion of the Western Avenue location, Nilkanth Properties has retained 14 full-time jobs and added 1 new full-time job. The impacts of COVID and the pandemic are still a challenge we are working through, but we have increased the annual salary for our full-time employees by $85,000, excluding benefits. Forty percent (40%) of the spring/summer team members are under the age of 18, and we pride our business on molding the future young workers of South Bend. Thank you for your consideration of our request. Filed in Clerk's Office Warm Regards, Nov 07 2023 DAWN M.JmNES CM CLERK SOUTH BEND IN Vandna Patel vandna@michianadq.com / 574-327-9994 Filed in Clerk's Office BILL NO. 23-64 NOV 0 7 2023 RESOLUTION NO. 5061-23 DAWN CITYCLE K MJONES UTH BEND IN A RESOLUTION REAFFIRMING THE GRANT OF CERTAIN REAL PROPERTY TAX ABATEMENT DEDUCTIONS AND WAIVING NONCOMPLIANCE FOR PROPERTY COMMONLY KNOWN AS 4836 W. WESTERN AVENUE, SOUTH BEND, INDIANA 46619 FOR Nilkanth Properties, LLC WHEREAS, on November 12,2018, the Common Council of the City of South Bend (the "Common Council")adopted Resolution No.4691-18(the"2018 Resolution"),approving a seven- year (7) real property tax deduction for a Dairy Queen Grill & Chill located at 4836 W. Western Avenue, South Bend, Indiana 46619 (the "Building") by Nilkanth Properties, LLC (the "Taxpayer")within an area located in the City of South Bend that had been designated an economic revitalization area in accordance with Indiana Code § 6-1.1-12.1 et seq.; WHEREAS, as part of the Taxpayer's deduction application, the Taxpayer described for the Common Council that Nilkanth Properties, LLC by the end of the three-year (3) designation period would (a) invest $1,660,661 to purchase and develop a new restaurant at 4836 W. Western Avenue, South Bend, Indiana 46619, and (b) create 20 new full-time jobs and 25 part-time jobs with a total estimated annual payroll of$741,000.00. WHEREAS, the Taxpayer completed construction of the Building and has met all objectives in its deduction application; WHEREAS, while the Taxpayer submitted its CF-1/RE and 322/RE forms to the City of South Bend Department of Community Investment in May 2020, May 2021, May 2022, and June 2023,the company may have inadvertently failed to timely and properly file the forms with the St. Joseph County Auditor; WHEREAS,the Common Council recognizes that the Taxpayer(a)has fulfilled its pledge to develop the Building; (b)has requested a waiver of its inadvertent oversight in failing to file the CF-1/RE and 322/RE forms for taxes due and payable in 2021, 2022, 2023 and 2024 with the St. Joseph County Auditor and instead filed forms with the wrong office to claim benefits of the tax deduction for the first four years of the tax deduction, which the Common Council has the power and authority to approve under Indiana law, and (c) would have been entitled to receive the tax deduction for the first four years of the deduction period had no noncompliance event occurred; WHEREAS, the Indiana General Assembly has expressed the policy of this State by enacting laws that expressly permit tax abatement noncompliance events such as the untimely or erroneous filing of an application form to be waived; and WHEREAS, the noncompliance event has been corrected, and a public hearing of the Common Council has been held on the subject of this Resolution. NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AS FOLLOWS: SECTION 1. The Taxpayer has presented testimonial and documentary evidence supporting the Taxpayer's (a) progress towards satisfying its obligations detailed in its original Statement of Benefits and its application for tax deduction related to the extension of a Dairy Queen Grill & Chill (the "Property"), and (b) inadvertent oversight leading to a belated filing or filing in the incorrect office of the CF-1/RE and 322/RE forms to claim the benefits of a tax deduction for the January 1, 2020, January 1, 2021, January 1, 2022, and January 1, 2023, assessment dates of the Property. SECTION 2. The foregoing facts, taken together, lead the Common Council to conclude that the Taxpayer has substantially fulfilled its projected plans to improve and conduct operations at the Property contemplated as part of the 2018 Resolution (the "Deduction") and that its belated/errant filing of applications required to claim the benefits of the Deduction as of for taxes due and payable in 2021, 2022, 2023, and 2024 was inadvertent. SECTION 3. The Common Council hereby waives all matters of noncompliance that may be waived under State and local law regarding the late filing of applicable deduction applications in order for the Taxpayer to claim and receive the benefit of the Deduction on its investment contemplated as part of the 2018 Resolution as of the January 1, 2020, January 1, 2021, January 1, 2022, and January 1, 2023, assessment dates, all as is permitted under Indiana Code 6-1.1- 12.1-11.3 (including specific waiver of any and all nonconformities relating to the requirement, under Indiana Code § 6-1.1-12.1-5 that economic revitalization area deduction applications be timely filed with the county auditor to claim property tax deductions for the 2020-Pay-2021,2021- Pay-2022 tax years, 2022-Pay-2023 and 2023-Pay-2024). SECTION 4. The Common Council incorporates herein by reference, and hereby ratifies and reaffirms: (a)the 2018 Resolution; (b)the tax deduction application and statements of benefits of the Taxpayer; and (c) the recitals of this Resolution. The Common Council and the Clerk of the City of South Bend are authorized to take all such further acts and execute and deliver all such further documents for the St. Joseph County Auditor or otherwise as may be reasonably necessary to give effect to this Resolution, all without further application to or formal action by the Common Council. SECTION 5. This Resolution shall be in full force and effect from and after its passage and approval 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 City of South Bend Filed in Clerk's Office NOV 0 7 2023 E CITY CP KN OPrH BEND IN