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HomeMy WebLinkAboutAmending Chapter 2 Indiana Entitled Tax Abatement ProceduresORDINANCE No. 7224 -83 Passed by the Common Council of the City of South Bend, Indiana Attest: July 25, 19 83 IRENE K. GAMMON City Clerk Presented by me to the Mayor of the City of South Bend, Indiana July 26, ig 83 of Common Council IRENE K. GAMMON Approved and signed by me oZ �9 &3 /�� -.e, / /' Clerk ORDINANCE NO.� AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 6 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA ENTITLED TAX ABATEMENT PROCEDURES. STATEMENT OF PURPOSE AND INTENT On March 22, 1983, the Indiana State Legislature passed House Enrolled Act No. 1899. This law makes significant changes related to local economic development and the local tax abatement procedures. The following Bill amends the City's local ordinance concerning tax abatement procedures. It establishes procedures which are consistent with the new State law. It further establishes a workable system to enable the City to utilize possible property tax deductions as an incentive to encourage economic revitalization by private developers. The Common Council believes that the Bill is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. Chapter 2, Article 6, of the Municipal Code of the City of South Bend, Indiana, is hereby amended in its entirety to read as follows: SECTION 2 -76. PERSONAL AND REAL PROPERTY TAX ABATEMENT PROCEDURES (a) The owner or owners of property which is located within the City may petition the Common Council for tax abatement consideration. Petition forms shall be provided by the City Clerk's office. Tax abatement requests shall only be considered for businesZ uses, which would operate within Major Groups 15 through 39, -and 42 . of the Standard Industrial Classification Manual published by the Executive Office of the Office of Management and Budget which are hereby incorporated by reference, and two (2) copies shall be maintained in the Office of the City Clerk for public inspection. Tax abatement petitions for business uses which do not meet the S.I.0 major groups, shall only be considered if significant permanent employment results from the project, "significant employment" shall be defined as creating at least one hundred (100 ) new permanent jobs, or if the project is within any designated redevelopment area of the City. (b) The petition shall be completed and shall be filed with the City Clerk together with the filing fee of One Hundred Dollars ($100.00) to cover reasonable administrative costs. The form shall include the following information for properties located within economic revitalization areas as defined by I.C. 6-1.1-12.1-1- (formerly known as tax abatement impact areas) : 1. The name or names and addresses of the propery owners and any other persons(s) leasing, intending to lease, or having an option to buy such property. 2. If the business organization is publicly held, the name of the corporate parent and the name under which the corporation has filed with the Securities and Exchange Commission. 3. The legal description and commonly known address of the real property for which real property tax abatement is being petitioned, and /or legal description and commonly known address of the facility in which the tangible personal property for which tangible personal property tax abatement is being petitioned. 4. A map and /or plat designating the area in question for consideration. 5. The current assessed valuation of the real property improvement before rehabilitation, redevelopment, economic revitalization, or improvements, and /or the current assessed valuation of the tangible personal property in use at said property before the acquisition of new manufacturing equipment. 6. Pictures of the area in question taken at least two (2) weeks within the filing of the petition. 7. The actual real and personal property taxes paid by the business organization during the previous five (5) years. B. A written estimate of the market value of the real property improvements after the rehabilitation or redevelopment, and /or a written estimate of the market value of the proposed new manufacturing equipment. 9. The. amount of the deduction claims for the first year of the petitioned deduction. 10. A statement describing the proposed use of the real property and /or use of new manufacturing equipment. 11. A statement indicating the level of employment that will be maintained or the number of new permanent jobs which will be created by the project, and the current number of permanent and part -time jobs. 12. A statement verifying that no building permit has been issued for construction on the property in connection with the improvement in question, and /or a statement verifying that the new manufacturing equipment in question has not been installed. 13. The number and description of the Major Group of the Standard Industrial Classification Manual which the proposed business would meet. 14. Name, address & telephone number of the person to contact regarding public hearing notifications. (c) For those properties located outside of those areas formerly designated by the Common Council as tax.abatement impact areas, and now termed__..econom :c:;_. revitalization areas, the following additional information shall also be provided with the petition: (1)(a) For real property tax abatement petitions, a statement verifying that the area 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. (b) For tangible personal property tax abatement petitions a statement verifying that the facility or group of facilities are technologically, economically, or energy obsolete, and that the obsolescence may lead to a decline in employment and tax revenues, and that the tanbible personal property is to be used in the direct production, manufacture, fabrication, assembly, extraction, mining, processing, refining, or finishing of other tangible personal property, or in high technology areas. (2) A statement verifying that the community will retain or increase jobs as a result of this rehabilitation, re- develop- ment or acquisition of new manufacturing equipment, specifying the projected number of new permanent jobs which will be created and the number of jobs which will be maintained. (3) A statement verifying that the community will realize a net increase in South Bend's assessed valuation of real and /or personal property, specifying the approximate amounts over a five (5) year period. -2- SECTION 2 -77. REVIEW OF PETITIONS (a) Upon the filing of a completed petition, it shall be referred to the Department of Economic Development Lor the purpose of investigation and preparation of a report determining whether the area qualifies as as economic re- vitalization area pursuant to I.C. 6- 1.1- 12.1 -1 and whether all zoning requirements have been met. The Staff shall submit its written report of its investigation and findings to the Human Resouces and Economic Development Committee of the Common Council within fifteen (15) working days. (b) The Human Resources and Economic Development Committee, after examination, review and hearing shall submit its recommendation to the Common Council as to whether the area qualifies as an economic revitalization area. The Council may adopt a declaratory resolution including the general boundaries of the area by describing its location in relation to public ways, to be designated an economic revitalization area. Upon adoption of the declaratory resolution, it shall be filed with the County Assessor by the City Clerk together with supporting data required by I.C. 6 -1.1- 12.1 -2.5. (c) The City Clerk shall cause notice of the adoption of the declaratory resolution to be published pursuant to I.C. 5 -3 -1, which shall include a description of the affected area and that all documents are available for inspection in the County Assessor's office. (d) Following the required legal publication, a public hearing on the declaratory resolution shall be held with the Council hearing any remonstrances and objections pertaining to the proposed project. At the public hearing, the Council shall: 1. Determine the public properties to be considered revitalization area; or 2. Determine the public properties to be considered economic revitalization are to the following criteria: utility and benefit of those which are within the economic utility and benefit of those that are not within the designated as in accordance with but not limited a. For real property tax abatement petitions whether there is compliance with the statutory growth, and undesirable for normal development criteria; b. For tangible personal property tax abatement petitions whether there is compliance with the statutory technological, economical, or energy obsolescence criteria; C. Whether the specific project will result in main- taining or increasing permanent jobs within the community; d. Whether there will be a net expansion of the assessed evaluation of real or personal property within the commnunity; e. Whether there is compliance with this ordinance and all applicable state laws. (e) Any project on which the Common Council has adopted a declaratory resolution designating it as an economic revitalization area which does not receive a building permit, and /or complete the acquisition of new manufacturing equipment as defined by State law, within one (1) year of the specific adoption of the declaratory resolution shall be determined to be null and void. (f) Economic revitalization area designations granted as a result of petitions for real property tax abatement shall expire so that new improvements in the urban economic revitalization area are eligible for tax abatement only if said new improvements are substantially completed and certified for occupancy within a three (3) year period commencing with the effective date of the declaratory resolution. =10 (g) Economic revitalization area designations granted as a result of petitions for tangible personal property tax abatement shall expire so that new improvements in the urban economic re- vitalization area are eligible for tax abatement only if said new improvements are substantially completed and certified within a three (3) year period commencing with the effective date of the declaratory resolution. (h) All other procedures for filing and reviewing petitions for tax abatement shall be consistent with I.C. 6 -1.1- 12.1 -1 et sere as it may be amended from time to time. SECTION 2 -78. ANNUAL REPORTS REQUIRED (a) The taxpayer whose real and for personal property taxes have been abated due to a declaration under this Article of an economic revitalization area shall file an annual report with the City Clerk and the Department of Economic Development each year that their taxes are affected due to tax abatement. Such�report: shall be filed no later than March 1st of each year, and shall address the following items: (1) Name or names and address(es) of the person filing the report. (2) The amount of real and personal property taxes actually paid by the taxpayer on the economic revitalization area property during the previous year. (3) The current level of employment and the level of employment prior to tax abatement being granted. (4) A listing of whether local and /or minority contractors were used during the renovation, and /or installation of equipment, and whether any minorities have been hired for full or part -time positions since the granting of tax abatement. (5) A copy of the taxpayer's annual report. (b) The Department of Economic Development shall file an annual report on or before March 31st, with the City Clerk detailing the number of tax abatement petitions filed for the preceding year, number granted, amount of taxes abated by project, and other relevant information. SECTION 2 -79 REVIEW BY COMMON COUNCIL The Common Council shall review on a regular basis the tax abatement procedures established by this Article. Said review shall be conducted at least every three (3) years, beginning with three (3) years from the effective date of this ordinance. SECTION II. This ordinance shall be in full force and effect from an a ter its passage by the Common Council, approval by the Mayor and legal publication. Member of the Comm ouncil 13i READING 7-//-002 PUBLIC HEARING 2nd READING_ NOT APPROVED REFERRED PASSER 7 -� ��3, 0,0 al c-1-7 CITY ®f SOUTH BEND COMMON COUNCIL 441 COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 Area 219 284.9321 BEVERLIE J. BECK President July .1,. 1983 JOSEPH T. SERGE Vice - President RAYMOND C. ZIELINSKI Chairman, Members of the Common Council Committee of the Whole 4th Floor County-City Building South Bend, Indiana 46601 JOSEPH T' SERGE First District Dear Councilmembers: WALTER M. SZYMKOWIAK Second District I am attaching a proposed bill which would amend BEVERLIE BECK Third Dis trict District the current Tax Abatement Procedures. LEWIS A. McGANN Fourth District This ordinance would bring the local procedures ROBERT G. TAYLOR Fifth District into compliance with. changes made by the Indiana State Legislature on March 22, 1983. RAYMOND C. ZIELINSKI Sixth District BEVERLY D. CRONE It incorporates many of the items discussed at the At Large June 13th and June 27th meetings of the Human Resources and JOHN J. HARRIS, Jr. Economic Development Committee. At Large JOHN ge E At t Large I believe this-bill is in -_the. .best interest of developing KATHLEEN CEKANSKI- FARRAND economic revitalization projects within our City, and I Council Attorney seek your support of this important piece of legislation. Thank you. Sincerely, Robert G. Taylor Chairman Human Resources and Economic Development Committee ffnntatuirr Irport 7!o 14e Towuwu Quard of Or (lily of Omd# 11imd: Your Committee OF THE WHOLE to whom was referred 70 -83 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 6 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA, 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, AS AMENDED. BY SUBSTITUTION OF A NEW BILL, AND AMENDING THAT BILL IN PARAGRAPH G AFTER THE WORD "EXPIRE" add so that new improvements in the urban economic revitalization area are eligible - - - -- resolution. RZY ZIELINSKI Chairman FREE PRESS PUBLISHING CO.