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HomeMy WebLinkAboutAmending Chapter 2 Entitled Tax abatement Procedures (2)ORDINANCE No. 7428 -85 Passed by the Common Council of the City of South Bend, Indiana January 28, 85 r9 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana January 29, Approved and signed by �r Clerk of Common Council RR IRENE K. GAMMON Clerk BILL NO. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 6 OF THE SOUTH BEND MUNICIPAL CODE, ENTITLED TAX ABATEMENT PROCEDURES STATEMENT OF PURPOSE AND INTENT: The South Bend Common Council has determined that certain amendments are required to clarify tax abatement procedures for the City of South Bend, in order to establish more clearly the standards and procedures by which petitions for tax abatements are considered by the Council and in order to use the availability of tax abatement to encourage economic revitalization for the City of South Bend. NOW, THEREFORE, BE IT ORDAINED BY THE SOUTH BEND COMMON COUNCIL, AS FOLLOWS: SECTION I. Chapter 2, Article 6, of the South Bend Municipal Code, is hereby deleted in its entirety and a new Chapter 2, Article 6, is adopted to read as follows: Section 2 -76. Personal and real property tax abatement procedures. mean: (a) Definition. As used in this Chapter, "minority" shall 1. Black (all persons having origins in any of the Black African racial groups not of Hispanic origin; 2. Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish Culture or origin, regardless of race); 3. Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); or 4. American Indian or Alaskan Native (all persons having origins in any of the original peoples of North America and maintaining indentifiable tribal affiliations through membership and participation or community identification). (b) Eligibility. Tax abatement petitions to the Common Council shall be considered only from owners of real property or new manufacturing equipment personal property located within the City who propose economic revitalization projects which conform to at least one of the following criteria: 1. The new or rehabilitated property uses will be within major groups 20 through 39 or 42 of the Ct- orr7.rr1 T.- a..otri of (l oc.ai �i Doti ter. Mn,,,,,�1 Two parcels of land being parts of the City of South Bend, Portage Township, St. Joseph County, Indiana, and being more particularly described as follows, viz: Beginning at the intersection of the southeasterly right -of -way line of the Chicago, Indiana, and Southern Railroad and the first alley north of Lincolnway West, extended, in said City; thence Southeasterly, South and East along said alley, including Lot 11 of the Augustine Addition, to its intersection with the centerline of Blaine Avenue; thence South along said centerline to its intersection with the centerline of Lindsey Avenue; thence East along said centerline to its intersection with the centerline of Allen Street; thence South along said centerline to its intersection with the first alley north of Lincolnway West; thence South and East along said alley to its intersection with the centerline of Cushing Street; thence South along said centerline to its intersection with the south boundary of Jas. Kent's Subdivision of Bank Out Lot 114 and part of 113; thence Northeasterly along said boundary and continuing along the south boundary of Burrough's Subdivision of Out Lot 115 to its intersection with the first alley west of Portage Avenue; thence Northwesterly along said alley, extended, including Lots 1, 2, 3, 8, 9, and 10 of the St. Joseph County Agricultural Society Addition, Lots 24, 23, 22, 16, and 15 of the Studebaker Brothers Subdivision, Lot 129 of Cushing and Lindsey's Addition, Lot 1 of the Muessel First Addition, Lots 151 and 152 of the Muessel Third Addition, and Lots 406, 407, 408, 409, 410, 411, 398, 397, 372, 373, and 374 of Vassar Park, and excluding Lots 36, 37, and 38 of the Muessel First Addition, to its intersection with the northwesterly right -of -way line of the Chicago, Indiana, and Southern Railroad; thence Southwesterly along said right -of -way line to its intersection with the west boundary of a tract of land conveyed to Charles D. Derr by a deed recorded in Deed Record Number 8312224 in the office of the Recorder of St. Joseph County, Indiana; thence North and West along said boundary, extended, to its intersection with the first alley north of Elwood Avenue, extended; thence East along said alley, extended, to its intersection with the first alley east of Portage Avenue; thence South and Southeasterly along said alley, extended, including a tract of land conveyed to Charles B. and Elinor K. Burkhart by a deed recorded in Deed Record 647 Pg. 392 in the office of the Recorder of St. Joseph County, Indiana, a tract of land conveyed to Laurence D. and Dorothy L. Jones by a deed recorded in Deed Record Number 8015987 in the office of the Recorder of St. Joseph County, Lot 143 of Portage Park, Lot 18 of the Chapin Place First Plat, and T -4- - 7 -A `1 C L1-- - - - - - - - - LL aI, - i - alley south of Corby Street, extended; thence East along said alley to its intersection with the first alley west of Hill Street; thence South along said alley, extended, to its intersection with the first alley south of Kalorama Street; thence East along said alley to its intersection with the first alley east of Hill Street; thence South along said alley to its intersection with the centerline of Jefferson Boulevard; thence West along said centerline to its intersection with the centerline of the St. Joseph River; thence Southeasterly along said centerline to its intersection with the first alley, east of Miami Street, extended; thence Southerly along said alley, extended, including Lots 26, 25, 24, 23, 22, and 21 of Jacob Leer's survey, to its intersection with the centerline of Oak Park Court; thence West along said centerline to its intersection with the centerline of Miami Street; thence South along said centerline to its intersection with the centerline of Dubail Avenue; thence West along said centerline to its intersection with the first alley west of Miami Street; thence North along said alley to its intersection with the centerline of Pennsylvania Avenue; thence East along said centerline to its intersection with the centerline of Miami Street; thence North along said centerline to its intersection with the centerline of Brook Street; thence Northwesterly along said centerline to its intersection with the west boundary of Wenger and Krieghbaum's Vistula Avenue Addition; thence North and Northwesterly along said boundary to its intersection with the northwesterly right -of -way line of the Grand Trunk Western Railroad; thence West and Northwesterly along said right -of -way line to its intersection with the first alley south of Sample Street; thence West along said alley, extended, to its intersection with the centerline of Carroll Street; thence South along said centerline to its intersection with the centerline of Ohio Street; thence East along said centerline to its intersection with the first alley east of Michigan Street; thence South along said alley, extended, including Lots G and H of Elder Place, to its intersection with the centerline of Ewing Avenue; thence West along said centerline to its intersection with the east right -of -way line of the Pennsylvania Railroad; thence North along said right -of -way line to its intersection with the first alley south of Indiana Avenue, extended; thence West along said alley, extended, including Lots 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24 of Creed's Second Addition, Lots 55, 56, and 57 of Stull's Fourth Addition, and Lot A of Raff's Fourth Addition, to its intersection with the centerline of Catalpa Avenue; thence South along said centerline to its intersection with the centerline of Dubail Avenue; thence West along said centerline to its i n-For co �i- i -- -4 +- 1, 4-1 !. -P 4 --+- l l ,, -� -P n- -, - intersection with the centerline of South Street; thence East along said centerline to its intersection with the first alley west of William Street; thence North along said alley, extended, including the eastern half of State Bank Out Lots 24, 22, and 15 and Lot 4 of William Miller's Subdivision of Bank Out Lots 8 and 9, to its intersection with the first alley southwest of Lincolnway West, extended; thence Northwesterly along said alley, extended, including Lots 6, 4, 2, and 1 of the Horatio Chapin Subdivision of Bank Out Lots 1 and 2, Lots 14, 13, 12, and 11 of the Rebecca Studebaker Subdivision, Lots 1 and 14 of the G. Rush Subdivision, Lots 1 and 11 of Heintzman's Addition, the Colfax School, Lot 46 of the Pleasant Home Addition, and Lots 4, 3, 2, 1, and 7 of the Meass Addition, to its intersection with the centerline of Rupel Street; thence West along said centerline to its intersection with the southeasterly right -of -way line of the Chicago, Indiana, and Southern Railroad; thence Northeasterly along said right -of -way line to its intersection with the first alley north of Lincolnway West, extended, which is the point of beginning. And, Beginning at the intersection of the centerline of Sheridan Street and the first alley north of Western Avenue, extended, in said City; thence East along said alley, extended, to its intersection with the first alley east of Meade Street; thence North along said alley to its intersection with the first alley north of Washington Street, extended; thence east along said alley, extended, including Lots 2, 3, 4, 5, and 6 of Kaley's Second Subdivision and Lots 112, 113, 122, 123, 124, 132, 133, and 134 of Oak Grove's First Addition, to its intersection with the centerline of O'Brien Street; thence South along said centerline to its intersection with the centerline of Washington Avenue; thence East along said centerline to its intersection with the centerline of Brookfield Street; thence North along said centerline to its intersection with the centerline of Colfax Avenue; thence East along said centerline, extended, to its intersection with the centerline of Adams Street; thence South along said centerline to its intersection with the centerline of Liston Street; thence East along said centerline to its intersection with the first alley east of Circle Avenue; thence South along said alley to its intersection with the first alley north of Washington Avenue; thence East along said alley to its intersection with the centerline of Laurel Street, entended; thence South along said centerline, extended, to its intersection with the first alley south of line of Chapin Street; thence North along said line, extended, including Lot 10 of the Ann Thomas Subdivision of the Mid. Part of Bank Out Lot 74, to its intersection with the line 159.72 feet north and parallel to the north right -of -way line of Jefferson Boulevard; thence East along said line to its intersection with the line 181.5 feet east of and parallel to the east right -of -way line of Chapin Street; thence South along said line, extended, to its intersection with the first alley south of Western Avenue; thence West along said alley, extended, including a tract of land conveyed to Michiana Marlin Swim Club, Inc. by a deed recorded on Deed Record number 8400928 in the office of the Recorder of St. Joseph County, Indiana, and the Benjamin Harrison School, to its intersection with the centerline of Sheridan Street; thence North along said centerline to its intersection with the first alley north of Western Avenue, extended, which is the point of beginning. 3. At least 100 new permanent jobs shall be created by the project, as certified by the petitioner. provided, however, that the proposed project may not contain any one or more of the following uses: A. Private or commercial golf course; B. Country club; C. Massage establishment, as defined by South Bend Municipal Code (SBMC) §4- 35(a)(1); D. Tennis club; E. Skating facility, including roller skating, skate boarding, or ice skating; F. Racquet sports facility, including any handball or racquet ball court; G. Hot tub facility; H. Sun tan facility; I. Race track; J. Adult bookstore, as defined by SBMC §21 -1; K. Adult motion picture theater, as defined by SBMC §21 -1; L. Adult mini motion picture theater, as defined by SBMC §21 -1; M. Amusement arcade, as defined by SBMC §21 -1; (b) Petition Filing. Owners of real property or new manufacturing equipment as defined by I.C. 6- 1.1- 12.1 -1(3) located within the City may petition the Common Council on forms provided by the City Clerk for real or personal property tax abatement consideration. All information and attachments required on the petition must be completed and filed with the City Clerk together with a filing fee of One Hundred Fifty Dollars ($150.00) to cover reasonable processing and administrative costs. (c) Petition Information. Property owners petitioning for tax abatement shall provide the following information on the petition to enable the Council to consider their request: 1. The name(s) and address(es) of the real property owner(s) (and personal property owner(s), in the case of the request for personal property tax abatement), and any other person(s) leasing, intending to lease, or having an option to purchase such property, and a brief description of the business. 2. If the business organization is publicly held, the name of the corporate parent and the name under which the corporation is filed with the Securities Exchange Commission. 3. The legal description and commonly known address of the real property for which real property tax abatement is being petitioned: or the legal description and commonly known address of the facility at which the new manufacturing equipment for which tangible personal property tax abatement is being petitioned will be located. 4. A map and /or plat designating the area where tax abatement is being requested. 5. The current assessed valuation of the real property improvement before rehabilitation, redevelopment, economic revitalization, or improvement; or the current assessed valuation of the tangible personal property to be replaced by new manufacturing equipment. 6. Photographs of the location taken within two weeks of the filing of the petition. 7. The real and personal property taxes paid at the location during the previous five years, whether paid by the current owner or a previous owner. 8. The commitment made within the past five years to hiring minority individuals including number of minorities employed during each of the past five years, specifying whether fulltime or part - a- 4-- --A �: L.otl�or —. ,mnnont nr t amnnrnry Pmn1 nVPP 12. A description of the proposed project (whether rehabilitation, new construction, or installation of new manufacturing equipment): including information about physical improvements to be made or the new equipment to be installed, an estimate of the cost of the project, the amount of land to be used, the proposed use of the improvements, and a general statement as to the value of the project to the business. 13. An estimate of the number of new permanent jobs to be created by the project, and a statement of the current number of permanent and part -time jobs at that location and the impact on those current jobs to be caused by the project. 14. Verification that no building permit has been issued for construction on the property for the improvement proposed or verification that the new manufacturing equipment has not been installed. 15. The Standard Industrial Classification Manual major group within which the proposed project would be classified, by number and description. 16. Other anticipated public financing for the project, including, if any, industrial revenue bonding to be sought or already authorized, assistance through the United States Department of Housing and Urban Development funds from the City of South Bend, Small Business Association Section 503 financing through the Business Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana; or other public financial assistance. 17. For real property tax abatement, a description of how the property in question has become undesirable for or impossible of normal development and occupancy because of lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings, or other factors which have impaired values and prevent a normal development of the property or property use. 18. For personal property tax abatement, a description of why the facility or group of facilities to be replaced are technologically, economically, or energy obsolete, whereby the obsolescence may lead to a decline in employment and tax revenues; together with a verification that the tangible personal property will be used in the direct production, manufacture, fabrication, assembly, extraction, mining, .�...,.,�..i,,.. __- Fi, -.i� ^r Mini ollino of nthar Section 2 -77. Petition review and consideration. (a) Upon receipt of a petition containing all requested information, including all attachments, the City Clerk shall refer the petition and attachments to the Department of Economic Development for review. The Department shall review the petition and attachments, obtain any additional information required from the petitioner, and shall inform the Council Human Resources and Economic Development Committee in a written report within 15 working days of receipt of the petition from the Clerk: 1. Whether all required information has been submitted by the petitioner; 2. Whether the information contained in the petition indicates that the requirements of this Article are met by the project as described in the petition; 3. Whether zoning requirements have been met, according to the Department of Code Enforcement; and 4. Whether the project is located in a tax allocation area, as defined in I.C. 36- 7- 14 -39, and if so, whether the South Bend Redevelopment Commission has adopted a resolution approving that application. 5. If additional terms of tax abatement have been agreed upon, a copy of the executed agreement. (b) The Human Resources and Economic Development Committee shall examine, review, and conduct a public committee meeting concerning the petition and shall submit its recommendation to the Council as to whether the property qualifies as an economic revitalization area under the terms of this Article and of I.C. 6- 1.1- 12.1 -1(1), (c) If it finds that the property qualifies as an economic revitalization area under the terms of this article and I.C. 6- 1.1- 12.1 -1(1), the Council may adopt a resolution declaring the property as an economic revitalization area for purposes of tax abatement, and shall specify whether the abatement is for real property tax deduction or for personal property tax deduction, the length of time during which the area shall be so designated, and the general boundaries of the area by describing its location in relation to public ways. Upon adoption of the declaratory resolution, the City Clerk shall file the resolution with the County Assessor, together with supporting data required by I.C. 6- 1.1- 12.1 -2.5. (d) If the area is located within an allocation area as defined in I.C. 36- 7- 14 -39, as declared by the South Bend Redevelopment Commission, the Council shall not adopt a declaratory resolution declaring an area to be an economic revitalization area for purposes of either real property tax deduction or personal property tax deduction if the Commission has not adopted a resolution approving the petition. (e) Upon adoption of the declaratory resolution, the City 1 .. --4-4 -- ..-P 4-1— -A --4-4 ^. t� }�o ",iIN1 i whorl rnirciianfi t (f) Following the legal publication and on the date published in the legal notice, a public hearing on the declaratory resolution shall be held by the Council, at which time the Council shall receive and hear all remonstrances and objections from interested persons pertaining to the petition. At the public hearing, the Council shall determine whether the petition complies with this Article and with I.C. 6 -1.1 -12.1, and shall consider all pertinent requirements for economic revitalization areas prior to taking final action determining whether the petition meets qualifications for an economic revitalization area and confirming, modifying and confirming, or rescinding the declaratory resolution. The determination of Council is final except that an appeal may be taken and heard as provided by I.C. 6 -1.1- 12.1 -2.5 (d) and (e). (g) A designation as an economic revitalization area shall expire, and the declaratory resolution shall so state, one year from the adoption of the declaratory resolution, if during that year a building permit has not been issued for the proposed project if the area was declared for real property tax abatement, or new manufacturing equipment as defined by I.C. 6- 1.1- 12.1 -1 has not been installed within the area declared for personal property tax abatement. (h) A designation as an economic revitalization area shall expire, and the declaratory resolution shall so state, two years from the effective date of the declaratory resolution. (i) All procedures and determinations under this Article shall be consistent with I.C. 6- 1.1- 12.1 -1 et seq., and as amended from time to time, and in case of any inconsistency or conflict with the statutory provisions, those statutory provisions shall apply. Section 2 -78. Annual Reports Required. (a) A petitioner or other owner of real or personal property who receives tax abatement as a result of Council action under this Article shall file an annual report with the City Clerk and the Department of Economic Development no later than March 1 of each year during which abatement is received. Notice of the annual report requirement shall be sent to tax abatement recipients by February 1 by the Department of Economic Development. (b) The annual report shall include the following information. 1. The name and address of the person(s) filing the report. 2. The amount of real and /or personal property taxes paid during the year by the taxpayer before the property was declared as an economic revitalization area and during the previous tax year. 3. The current number of part -time jobs and fulltime jobs, specifying whether permanent or temporary, and the number of such jobs as of the end of the year immediately prior to receiving tax abatement. 4. The names of local and /or minority contractors „2ora rl „rinv the rcmnvatinn of the real nronert (c) The City Clerk shall forward information provided in parts 4 and 5 of subsection (6) from each annual report to the Minority Affairs Council for its review. (d) The Department of Economic Development shall file a summary report on or before March 31 with the City Clerk and Common Council detailing the number of tax abatement petitions filed for the preceding year, the number granted, the number of taxes abated as estimated by the petitioner, and other relevant information. Section 2 -79. Review by Common Council. The Common Council shall review at least every two (2) years the tax abatement procedures established by this Article. SECTION II. This ordinance supercedes and rescinds any previous ordinances or resolutions concerning tax abatement procedural matters passed by the Common Council, including but not necessarily limited to Ordinance No. 7224 -83. SECTION III. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. o tuber of the Co ,V6n Council BEVERLIE J. BECK President EUGENIA BRABOY Vice - President JOSEPH T. SERGE Chairman, Committee of the Whole JOSEPH T. SERGE First District EUGENIA BRABOY Second District BEVERLIE J. BECK Third District ANN B. PUZZELLO Fourth District ROBERT G. TAYLOR Fifth District THOMAS ZAKRZEWSKI Sixth District BEVERLY D. CRONE At Large AL B. PASZEK At Large JOHN VOORDE At Large K. CEKANSKI- FARRAND Council Attorney CITY of SOUTH BEND COMMON COUNCIL 441 COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 January 9, 1985 Members of the Common Council 4th Floor, County -City Building South Bend, Indiana 46601 Dear Councilmembers: Area 21g 284.9321 The attached revised tax abatement bill represents the many hours of work put in by the Human Resources and Economic Development Committee and various staff members from the City Administration. Several meetings have been held over the past several months to insure that proper input was made on this important topic which affects the growth of our City. I hope that you will join with me in voting affirmative- ly on this bill. I look forward to meeting with you to discuss it prior to the public hearing. Thank you. Sincerely, Euge is Bra boy, Chairman Human Resources and Economic Development Committee Tammy# u Irport Your Committee of the Whole to whom was referred 3 -85 A BILL AMENDING CHAPTER 2, ARTICLE 6, OF THE SOUTH BEND MUNICIPAL CODE, ENTITLED TAX ABATEMENT PROCEDURES. Respectfully - report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable. Joseph T. Serge Chairman FREE PRESS PUBLISHING CO.