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HomeMy WebLinkAbout24-39 Designating Resolution - 530 South Michigan Street Vacant Building Tax Abatement CITY OF SOUTH BEND ,` -P (F- "y` COMMUNITY INVESTMENT K 1 November 20, 2024 Filed in Clerk's Office Council Member Troy Warner a • L' Chairperson, Community Investment Committee ```�� 2 [ t South Bend Common Council Bianca Tirado County-City Building, 4th Floor City Clerk, South Bend, IN South Bend, Indiana 46601 RE: Declaratory Resolutions (2): Vacant Building Tax Abatement Mixed-Use Development Real Property Tax Abatement for EmpowerHer Development, LLC Dear Council Member Warner, Please find the enclosed Declaratory Resolutions and supporting information pertaining to a tax abatement petition submitted by EmpowerHer Development, LLC, an Indiana Limited Liability Company. This petition package includes: • Department of Community Investment's summary report • Petition for abatement • Statement of Benefits forms (SB-1 / Real Property) • Supporting information The report contains the Department's findings relative to the above-mentioned petition. The petitioner intends to redevelop the property at 530 S. Michigan Street into a commercial kitchen, food market, and boutique hotel. The building has been vacant for several years. The total investment for this project is $1,631,500. The project meets the qualifications for two abatements: a two-year (2) vacant building tax abatement and an eight-year (8) mixed-use development real property tax abatement. A representative from EmpowerHer Development, LLC will be available to meet with the Committee on Monday, November 25, 2024. If you or other Council members have questions about the report or need additional information, please feel free to call me at (574) 235-5838. Sincerely, Erik Glavich Director, Growth and Opportunity EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 1400S County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov Filed in Clerk's Office N O V 2 0 2024 BILL NO. Bianca Tirado RESOLUTION NO. City Clerk, South Bend, IN A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 530 S. Michigan Street, South Bend, Indiana 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO-YEAR (2) VACANT BUILDING TAX ABATEMENT FOR EmpowerHer Development, LLC WHEREAS, a petition for real property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the areas described as: Key Number: 71-08-12-307-005.000-026 Local Parcel Number: 018-3017-0650 Commonly Known As: 530 S. Michigan Street Legal Description: Lot 11 Ex 23 Ft 10 7-8 In N Side Martins Add be designated as an Economic Revitalization Area under the provisions of Indiana Code 6-1.1- 12.1 et seq. and South Bend Municipal Code Sections 2-76 et seq.; and WHEREAS,petitioner has agreed to and has accepted responsibility to report any changes in the Key Number and legal description to the Department of Community Investment and to the Office of the City Clerk; and WHEREAS,the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6-1.1-12.1 et seq. and South Bend Municipal Code Sections 2-76 et seq. and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS,the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code 6-1.1-12.1 et seq. for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration, and the Memorandum of Agreement between the Petitioner and the City of South Bend and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, is sufficient to justify the deduction granted under Indiana Code 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Areas shall expire on December 31, 2027. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted a vacant building property tax deduction for a period of two(2)years outlined below as well as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17. Year 1 - 100% Year 2 - 75% SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for a Vacant Building Real Property Tax Abatement to be published pursuant to Indiana Code 5-3-1 and Indiana Code 6-1.1-12.1-2.5,said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Sharon McBride, Council President South Bend Common Council Attest: Bianca Tirado, 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 , 2024, at o'clock .m. Bianca Tirado, City Clerk Office of the City Clerk Approved and signed by me on the day of , 2024, at o'clock .m. James Mueller, Mayor City of South Bend TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Vacant Building Tax Abatement and Mixed-Use Development Real Property Tax Abatement for EmpowerHer Development, LLC DATE: November 20, 2024 On November 20, 2024, a petition for tax abatement from EmpowerHer Development, LLC, was filed with the Office of the City Clerk. The petition seeks consideration for (1) a vacant building tax abatement and (2) a mixed-use development real property tax abatement for the historic former Hope Rescue Mission Building located at 530 S. Michigan Street in South Bend. Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South Bend, the petition was referred to the Department of Community Investment for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to Indiana Code 6 1.1-12.1 and all zoning requirements have been met. The Department of Community Investment has reviewed the petition, investigated the area, and makes the following report. Project Summary • The developer, EmpowerHer Development, LLC, plans to rehabilitate the abandoned former Hope Rescue Mission Building on South Michigan Street. Built in 1923, the building has been vacant for a number of years. EmpowerHer Development, LLC, purchased the property late last year. • The renovation project will consist of renovating the building to become a shared resource for local food entrepreneurs by establishing an affordable commercial kitchen space and hands-on resources. Also, the building will be renovated with a section consisting of a food market and a boutique hotel. • Total private investment for the project is $1,631,500. Employment Impact • EmpowerHer Development, LLC, plans to retain 3 full-time employees. • Once the renovation is completed and the entire space is active, the petitioner estimates that businesses located in the renovated spaces could hire approximately 8 new employees with an estimated average wage of$25 per hour. Tax Estimates Vacant Building Tax Abatement: The petitioner qualifies for a two-year(2)vacant building tax abatement. • Current estimated annual taxes: $10,693 o Until EmpowerHer Development, LLC, purchased the building last year, the building was tax exempt because it was owned by Hope Ministries. • Estimated taxes being abated during the abatement period: $10,268 • Estimated total taxes to be paid during the abatement period: $11,119 Mixed-Use Development Real Property Tax Abatement: The petitioner qualifies for an eight- year (8) mixed-use development real property tax abatement. • Current estimated annual taxes: $10,693 • Estimated annual taxes after the project's completion: $39,150 • Total estimated taxes during the eight-year (8) abatement period: $313,196 o Estimated taxes being abated during the abatement period: $93,722 o Estimated total taxes to be paid during the abatement period: $219,474 Abatement Qualification 1. A review of the tax abatements previously granted finds that the petitioner has not been granted or is associated with a previous abatement. o Two of the three co-owners of EmpowerHer Development, LLC, also own Herstoric Properties, LLC, which in June 2023 received both a vacant building tax abatement and a six-year(6) mixed-use development real property tax abatement for the Monarch Printing Building, which is located at 516 S. Michigan Street and is immediately north of the Hope Rescue Mission building. Confirming Resolution No. 5035-23 (vacant building tax abatement) and Confirming Resolution No. 5034-23 (mixed-use development real property tax abatement)were both adopted by the Common Council on June 26, 2023. 2. The property is properly zoned for the proposed project. 3. Taxes on the property have been paid in full. 4. A review of the South Bend Redevelopment designation areas finds that the property is in the River West Development Area. 2 5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for the following: • Two-year (2) vacant building tax abatement under Division 9 (Miscellaneous Real Property Tax Abatement), Section 2-84 (Council's Authority to Enlarge Real Property Tax Abatement General Standards). • Eight-year (8) mixed-use development real property tax abatement under Division 5 (Mixed Use Development Real Property Tax Abatement). 3 2-Year Abatement November 19, 2024 Empowerher Development LLC South Bend Portage Township Vacant Building Tax Abatement Schedule Property Address: 530 S. Michigan Street Tax Key Number: 71-08-12-307-005.000-026 Current Year 1 Year 2 Assessed Value(AV) Land $ 88,900 $ 88,900 $ 88,900 Structure 227,100 227,100 227,100 Gross Assessed Value 316,000 316,000 316,000 Abatement(100%of Structure) 100% 75% Abatement Deduction (227,100) (170,325) Net Assessed Value 316,000 88,900 145,675 Property Taxes Assume constant tax rate of 5.3548% Gross Tax(Tax Rate x Net AV) 16,921 4,760 7,801 Local Tax Credit(12.3682%of GT-DS (1,943) (547) (896) Circuit Breaker Credit (4,285) - - Taxes Due $ 10,693 $ 4,214 $ 6,905 3% 3% 3% Circuit Breaker Cap 9,480 9,480 9,480 Debt Service(0.3840%of Net AV) 1,213 341 559 Max Tax Under the Cap 10,693 9,821 10,039 Year Abatement Taxes Due Taxes Abated Net Taxes Paid 1 100% $ 10,693 $ (6,480) $ 4,214 2 75% 10,693 (3,788) 6,905 Total: 21,387 (10,268) 11,119 This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2023 Payable 2024. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. .q,� i � s s Department of Community Investment ;; • g' City of South Bend 8-Year Abatement November 19,2024 Empowerher Development LLC South Bend Portage Township Commerical Development Real Property Tax Abatement Schedule Type of Property: Mixed Use Estimated Project Cost: $ 1,401,500 Rehabilitation Property Address: 530 S.Michigan Street Tax Key Number: 71-08-12-307-005.000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Assessed Value(AV) Land $ 88,900 $ 88,900 $ 88,900 $ 88,900 $ 88,900 $ 88,900 $ 88,900 $ 88,900 $ 88,900 $ 88,900 Structure(AV=60%Project Cost) 227,100 1,068,000 1,068,000 1,068,000 1,068,000 1,068,000 1,068,000 1,068,000 1,068,000 1,068,000 Gross Assessed Value 316,000 1,156,900 1,156,900 1,156,900 1,156,900 1,156,900 1,156,900 1,156,900 1,156,900 1,156,900 Abatement 100% 90% 80% 70% 60% 50% 50% 50% Abatement Deduction - (840,900) (756,810) (672,720) (588,630) (504,540) (420,450) (420,450) (420,450) Net Assessed Value 316,000 1,156,900 316,000 400,090 484,180 568,270 652,360 736,450 736,450 736,450 Property Taxes Assume constant tax rate of 5.3548% Gross Tax(Tax Rate x Net AV) 16,921 61,950 16,921 21,424 25,927 30,430 34,933 39,435 39,435 39,435 Local Tax Credit(12.3682%of GT-DS) (1,943) (7,113) (1,943) (2,460) (2,977) (3,494) (4,011) (4,528) (4,528) (4,528) Circuit Breaker Credit (4,285) (15,688) - - - - - - - - Taxes Due $ 10,693 $ 39,150 $ 14,978 $ 18,964 $ 22,950 $ 26,936 $ 30,922 $ 34,908 $ 34,908 $ 34,908 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Circuit Breaker Cap 9,480 34,707 34,707 34,707 34,707 34,707 34,707 34,707 34,707 34,707 Debt Service(0.3840%of Net AV) 1,213 4,443 1,213 1,536 1,859 2,182 2,505 2,828 2,828 2,828 Max Tax Under the Cap 10,693 39,150 35,920 36,243 36,566 36,889 37,212 37,535 37,535 37,535 Combined Year Abatement Current Taxes New Current& Taxes Abated Net Taxes Due Projected Tax New Taxes Paid 1 100% $ 10,693 $ 28,456 $ 39,150 $ (24,171) $ 14,978 2 90% 10,693 28,456 39,150 (20,185) 18,964 3 80% 10,693 28,456 39,150 (16,199) 22,950 4 70% 10,693 28,456 39,150 (12,213) 26,936 5 60% 10,693 28,456 39,150 (8,228) 30,922 6 50% 10,693 28,456 39,150 (4,242) 34,908 7 50% 10,693 28,456 39,150 (4,242) 34,908 8 50% 10,693 28,456 39,150 (4,242) 34,908 Total: 85,548 227,648 313,196 (93,722) 219,474 *This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2023 Payable 2024. ..r,° Department of Community Investment The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. City of South Bend City of South Bend Instructions:Complete pages 1-3 AND the proper Form SB-1 for Petition for Incentives the type of abatement(real property or personal property) Petition must include a$250 filing fee payable to the for which you are applying. "City of South Bend"before processing con be complete General Information Project Name 1 he Hope Building Project Number Legal name as registered with Secretary of State EmpowerHer Development, LLC Business structure Domestic Limited Liability Company Company website na Proposed Project Information Proposed project address 530 S. Michigan Street Parent company name EmpowerHer Development,LLC • City,State,Zip South Bend, IN 46601 Legal owner EmpowerHer Development,LLC ,Site acreage or acreage required Is the real estate owned Owned 1.7 or leased? Square feet of facility 16,296 If leased,by whom? n/a Primary Contact Information 'Primary company contact name Jasmine Bradley TitleCo-owner Address of company contact '1143 E. Ireland Road,#1077 Phone (574)413-0081 City,State,Zip South Bend, IN 46614 Email inspire@thedreamcollectiveinc.org Senior Official Information Company senior official name Charity Stowe&Rachel Mospan Title Co-owners Address of company contact Phone (if different from above) 614 S. St. Joseph Street Charity:(574)300-8041;Rachel:(312)590-0062 City,State,Zip South Bend, IN 46601 Email P @9 P @q charityherdevelo ment mail corn;rachelmos an mail cam Consultant Information/Agent Hired business consultant/agent name n/a Consultant release?(V/N) Address Local economic development partners approval?(Y/N) City,State,Zip Email Project Overview Brief description of your company,project,and why the The Hope Building will be a transformative space,combining a commercial kitchen,food market,and property Is necessary for boutique hotel to drive local economic growth.EmpowerHer Development is a collaboration between Charity economic growth Stowe and Rachel Mospan of Herstoric Development and Jasmine Bradley of the Dream Collective,and aims to create a collective model that reduces overhead costs and provides shared resources for local food entrepreneurs.South Bend currently has need of an accessible,affordable commercial kitchen space with hands-on business resources,to create fewer barriers for aspiring chefs and small business owners.This project directly addresses those challenges by offering flexible,affordable leasing options,mentorship,and coaching. In addition to the business development component,the food market will provide Monroe Park residents with consistent access to healthy,affordable food,which is currently scarce.The boutique hotel will further enhance the area,attracting visitors and providing additional revenue streams.By revitalizing the Hope Building,this project will foster a more vibrant local economy,stimulate job creation,and enhance the community's overall well-being.The combination of supporting small businesses,improving food access, and adding new amenities in an underserved but central area of downtown will make the area a hub for growth and inclusivity,contributing to the long-term economic vitality of South Bend. Certified Technology Park appropriate n/a is the project in a Tax Incremental Financing iTIF)area? If so,which? River West Have Building Permits been issued?(Y/N) Number of residential units created by ;Note-Not eligible for abatement If Yes) N project 0 If this is a petition for personal property tax abatement,has the equipment been installed? n/ca Investment Details Public Infrastructure needs Has any 504 funding been What is the value of any equipment being purchased in What Is the value of any equipment being (Off-site of project In dollars) received? Indiana for the project? purchased from out of state for the project? n/a No n/a n/a New Project Investments Calendar Year 2023 2024 2025 2026 2027 2028 2029 2030 Land Acquisition Building Lease Payments Building Purchase Costs $35,000.00 New Building Construction $500,000 00 $200,000.00 • Existing Building Improvements $ 1,500.00 $500,000 00 $200,000.00 New Machinery&Equipment 5100,000.00 Special Tooling/Retooling New Furniture/Fixtures $75,000.00 $55,000.00 New Computer/IT Hardware I New Software On-site Rail Infrastructure On-site Fiber infrastructure TOTAL $35,000.00 $ 1,500.00 T.' 175000 0u 455,000 00 $0.00 $0.00 $0.00 $0.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year lobs retained Hourly Cumulative II of net NEW full time Hourly average wage,w/o Total training 1 Total 4 to be avera a permanent Jobs created at project benefits or bonuses,of expenditure-6 trained-not wage,w o benefits or cumulative net new Jobs not N cumulative bonuses cumulative 19 2024 3 $ 15.00 2 $20.00 $0 1 0 2025 5 $20.00 $1,000 i 2 2026 8 $25.00 $2,500 I 2 2027 8 $20.00 $0 I 0 2028 8 $21.00 2029 8 $22.00 2030 8 $23.00 2031 8 $24.00 2032 8 $25.00 2033 8 $26.00 2034 8 $27.00 2035 8 $28.00 Provide hourly wage information for new employees in the following positions. Full time I I Part time Laborers $20.00 I $ 15.00 Technical $35.00 $30.00 9 Managerial $50.00 I $25.00 Administrative $20.00 f S 15.00 Who will be the individual responsible for coordinating with WorkOne on recruiting? n/a Does your company have an EEO hiring policy?'y I Are you an EEO employer? Y Please list the number of full time and part time minority and/or female Please describe your commitment to employees for the following years: diversity and inclusion by detailing your Year outreach and recruitment efforts for the last .?.9 2023 2022 three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black 1Ne are seeking out female Hispanic entrepreneurs and business owners in all positions both within Asian our company,with subcontractors, Indian and when assembling our support team of expertes in accounting, Female 3 legal,architecture,marketing,and Other s0 on. Complete the table below for Real Property Tax Abatement only. *** Sign at the bottom for all requested incentives (real AND personal property). *** Public Benefit Item: Information is required on both the construction companies and the I companies which will provide materials purchased for this project. Please complete the table below with the appropriate information. If Qualify Earned Points Available Points (Yes or No) you qualify for the points,please enter the full amount of available points. 1 Construction Related(Contractors): A. Employ Local Companies(75%) Y 20 20 B. Purchase Materials from Local Companies(75%) Y 20 20 C Require Employees vs.Independent Contractors N 0 19 D. Require Prevailing Wage N 0 22 E. Require Health Benefits N 0 22 F. Require Retirement Benefits N 0 18 G. Maintain Affirmative Action Plan N 0 20 Sub-total Construction Related: 40 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels Y 33 33 B. Provide Health Benefits N 0 34 C. Provide Retirement Benefits N 0 29 D. Provide Training Y 28 28 E. Provide Child Care N 0 15 F Provide Transportation Assistance N 0 14 G. Provide Employer Assisted Housing program B 0 9 Sub-total Wage&Benefit Related: 61 162 3 Workforce Related: A. Create New Jobs Y 42 42 B. Retain Existing Jobs Y 41 41 C. Maintain Affirmative Action Plan Y 35 35 D. Provide Targeted Hiring Preference Y 34 34 Sub-total Workforce Related: 1 52 152 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A zoo,conservatory,museum,etc.) Y 84 84 Name of Facility SB VPA(Potawatomi Conservatories) ISub-total Municipal Facility: 84 84 Sub-total from Above: 337 539 The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and South Bend Municipal Code Sec.2-76 et seq.,for this petition state the above. Submitted By: Jasmine Bradley 'ue,mire ra. (ek1 Date: 10/16/24 For Staff Use Only Below This Line Lehi 488,900 What Is the current assessed value? Real Property: 4/0D O /'�1 g' 7 I I b a Personal Property: What Is the projected assessed value? Real Property: Personal Property: What Is the tax key numberjsl for this project? -7 /_on _ /2.-3O 7_0 0 5 O p 0 .-. o z eo W/ O What Is the six digit NAICS code? Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. Tax Year2023/Pay2024 O f/ope I(esc4,6 /SS'/a 7 Tax Year 2022/Pay 2023 .1 Tax Year 2021/Pay 2022 t r Tax Year 2020/Pay 2021 of Tax Year 2019/Pay 2020 i r Please fill out the following Public Benefit Summary Information and add to total from above. (Y or Ni Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs Y 4/9. 49 B Develop Based on Local University Research N — 35 j C Achieve a Physical Element of a Plan y (0 36 ISub-total Project Related: 8 S 120 6 Super Size Projects(point values are cumulative): A, 100%to 199% Y Z5 25 III B. 200%to 299% Y to g 68 C 300%to 399% .�) (,Q.5— 65 D. 400%and Over n/ 52 Sub-total Super Size Projects; /se 21C 7 Pay for Municipal Infrastructure: A. Pay for Oversizing or Upgrading Al 14 B. Pay for 26-50%of Extension Cost Ai ) 26 C. Pay for 51 75%of Extension Cost /I r 39 D. Pay for 76-100%of Extension Cost ,� 52 Sub-total Infrastructure Related: 131 Total from Applicant Section: 337 539 Total from Staff Section: 2-Li3 461 Total Public Benefit Points: 5 8 0 1000 <,0"--`1. STATEMENT OF BENEFITS 2024 PAY 20 25 "_'p VACANT BUILDING DEDUCTION FORM SB-1/VBD State Form 55182(R2/1-21) Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies as an"eligible vacant building"as defined by The cost and any specific individual's IC 6-1.1-12.1-1(17). salary information is confidential;the balance of the filing is public record per IC 6-1.1-12.1-5.1(c)and(d). INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be submitted to the designating body BEFORE the occupation of the eligible vacant building for which the person wishes to claim a deduction. 2. To obtain a vacant building deduction,a Form 322NBD must be filed with the county auditor before May 10 in the year in which the property owner or his tenant occupies the vacant building or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed after April 10. If the property owner misses the May 10 deadline in the initial year of occupation,he can apply between January 1 and May 10 of a subsequent year. 3 A property owner who files the Form 322/VBD must provide the county auditor and the designating body with a Form CF-1NBD to show compliance with the approved Form SB-1NBD. The Form CF-1NBD must also be updated each year in which the deduction is applicable. SECTION 1 TAXPAYER INFORMATION Name of taxpayer EmpowerHer Development, LLC Address of taxpayer Number and Street: 530 S. Michigan Street city: South Bend State: IN ZIP: 46601 Name of contact person Telephone number E-mail address First Name: Jasmine t.astNamc: Bradley (574) 413-0081 inspire@thedreamcollectiveinc.org SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body 'Resolution number Common Council of the City of South Bend Location of property County DLGF taxing district number Number and Street: 530 S.Michigan Street City:southeend State: IN ZIp:46601 St. Joseph 026(South Bend-Portage) Description of eligible vacant building that the property owner or tenant will occupy(use additional sheets if necessary). Estimated occupancy date(month,day,year) Long vacant commercial 2-story building built in 1923 that used to be home 9/1/2025 to the Hope Rescue Mission. Estimated date placed-in-use(month,day,year) 9/1/2027 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS A RESULT OF PROPOSED PROJECT Current Number Salaries $ 90,000 Number Retained 3 Salaries $ 90,000 Number AdditionalSalaries $ 400'000 SECTION ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values $35,000 $227,100 Plus estimated values of proposed project $1,401,500 $840,900 Less values of any property being replaced $o $o Net estimated values upon completion of project $1,436,500 $1,068,000 SECTION 5 EFFORTS TO SELL OR LEASE VACANT BUILDING Described efforts by the owner or previous owner to sell lease,or rent the building during period of vacancy The current owner purchased the building in December 2023. In its current state, it is inhabitable and in dire need of repair. Show amount for which the building was offered for sale,lease,or rent during period of vacancy. n/a List any other benefits resulting from the occupancy of the eligible vacant building. Rehabilitate a long vacant building to provide shared resources for local food entrepreneurs, including an accessible,affordable commercial kitchen space with hands-on business resources.Additionally,there will be a food market and a boutique hotel.The combination of supporting small businesses, improving food access, and adding new amenities in an underserved but central area of downtown will make the area a hub for growth and inclusivity, contributing to the long-term economic vitality of South Bend. SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative Title Date signed(month,day,year) �61.9itlYt2 '4 Co- Owner 11/20/2024 o Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed N/A calendar years*(see below). The date this designation expires is 12/31/2027 . NOTE: This question addresses whether the resolution contains an expiration date for the designated area. B. The amount of the deduction applicable is limited to$ N/A C. Other limitations or conditions(specify) N/A D. Number of years allowed: ❑ Year 1 ❑X Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5(*see below) ❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 E. For a statement of benefits approved after June 30,2013,did the designating body adopt an abatement schedule per IC 6-1.1-12.1-17? X❑ Yes 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. We have also 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. Approved(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year) Printed name of authorized member of designating body Name of designating body Common Council of the City of South Bend Attested by(signature and title of attester) Printed name of attester If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. IC 6-1.1-12.1-1 (17) "Eligible vacant building"means a building that: (A)is zoned for commercial or industrial purposes;and (B)is unoccupied for at least one(1)year before the owner of the building or a tenant of the owner occupies the building,as evidenced by a valid certificate of occupancy,paid utility receipts,executed lease agreements,or any other evidence of occupation that the department of local government finance requires. IC 6-1.1-12.1-17 Abatement schedules Sec.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 an 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 taxpayer's investment. (b)This subsection 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 6-1.1-12.1-18,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 abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 0` 6"4. STATEMENT OF BENEFITS 2024 PAY 2025 1, `= REAL ESTATE IMPROVEMENTS ' State Form 51767(R7/1-21) FORM SB-1/Real Property mg. `�� Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost E Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) of the individrtyual al employees specific salaries ties p p paid to individual by the ❑ Residentially distressed area(IC 6-1.1-12.1-4.1) property owner is confidential per IC6-1.1-12.1-5.1. INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction,a Form 322/RE must be filed with the county auditor before May 10 in the year in which the addition to assessed valuation is made or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between January 1 and May 10 of a subsequent year. 4. A property owner who files for the deduction must provide the county auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction is applicable. IC 6-1.1-12.1-5.1(b) 5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/Real Property that is approved prior 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 EmpowerHer Development, LLC Address of taxpayer Number and Street: 530 S. Michigan Street cite South Bend State: IN ZIP: 46601 Name of contact person Telephone number E-mail address First Name: Jasmine N,m:e. Bradley (574)413-0081 inspire@thedreamcollectiveinc.org SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Common Council of the City of South Bend Location of property Number and Street City State ZIP County DLGF taxing district number 530 S. Michigan Street South Bend IN 46601 St. Joseph 026(South Bend-Portage) Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year) Rehabilitate a long vacant building to provide shared resources for local food entrepreneurs, 9/1/2025 including an accessible,affordable commercial kitchen space with hands-on business resources. Estimated completion date(month,day,year) Additionally,there will be a food market and a boutique hotel. 9/1/2027 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current Number Salaries Number Retained Salaries Number Additional Salaries 3 $90,000 3 $ 90,000 8 $400,000 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values $35,00o $227,100 Plus estimated values of proposed project $1,401,500 $840,900 Less values of any property being replaced $0 $0 Net estimated values upon completion of project $1,436,500 $1,068,000 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) 0 Estimated hazardous waste converted(pounds) 0 Other benefits The combination of supporting small businesses, improving food access, and adding new amenities in an underserved but central area of downtown will make the area a hub for growth and inclusivity, contributing to the long-term economic vitality of South Bend. SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative Date signed(month,day,year) A''asoLilne'7raci Qet/,tl. 11/20/2024 Printed name of authorized representative Title Jasmine Bradley Co-Owner Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed 8 calendar years*(see below). The date this designation expires is 12/31/2027 . NOTE:This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements ['Yes ❑No 2.Residentially distressed areas ❑yes No C. The amount of the deduction applicable is limited to$ N/A D. Other limitations or conditions(specify) N/A E. Number of years allowed: ❑Year 1 ❑Year 2 Year 3 ❑Year 4 ❑ Year 5 (*see below) ❑Year 6 ❑Year 7 ['Year 8 ❑Year 9 ❑Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ['Yes 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. We have also 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. Approved(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year) Printed name of authorized member of designating body Name of designating body Common Council of the City of South Bend, Indiana Attested by(signature and title of attester) Printed name of attester If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1,2013,the deductions established in IC 6-1.1-12.1-4.1 remain in effect.The deduction period may not exceed five(5)years. For a Form SB-1/Real Property that is approved after June 30, 2013,the designating body is required to establish an abatement schedule for each deduction allowed. Except as provided in IC 6-1.1-12.1-18,the deduction period may not exceed ten(10)years. (See IC 6-1.1-12.1-17 below.) B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1,2013,the abatement schedule approved by the designating body remains in effect. For a Form SB-1/Real Property that is approved after June 30,2013,the designating body is required to establish an abatement schedule for each deduction allowed.(See IC 6-1.1-12.1-17 below.) IC 6-1.1-12.1-17 Abatement schedules Sec.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 an 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 taxpayer's investment. (b)This subsection 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 6-1.1-12.1-18,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 abatement schedule expires under the terms of the resolution approving the taxpayers statement of benefits. 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