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Home My WebLink AboutAmending Chapter 2 Entitled Tax Abatement ProceduresORDINANCE No. 7017 -82 Passed by the Common Council of the City of South Bend, January 11, 19 82 -K-e_- 1- r ldL-� Presented by me to the Mayor of the City of South Bend, Approved and signed by IRENE K. GAMMON January 12 1082 Ir City Clerk of Common Council IRENE K. GAMMON Clerk BILL NO. 143 -81 ORDINANCE N0. /7 -AQ AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 6 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, ENTITLED TAX ABATEMENT PROCEDURES STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South late growth within its corporate limits. It to locating investment upon underutilized or interest. The tax abatement procedures deve with Indiana Code 6 -1.1 -12.1 require further tion. Bend recognizes the need to stimu- further recognizes that incentives bypassed land is in the City's best loped by the Council in compliance clarification for effective utiliza- 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, shall be amended as follows: Sec. 2 -76. Tax Abatement Petition Required. (a) The owner or owners of property which is located within the City shall petition the Common Council for tax abatement consideration by filing the petition with the City Clerk together with payment of a $50.00 fee to cover administrative costs. (b) The petition shall be completed in full and shall include the following information for properties located within the Tax Abatement Impact Areas: (1) the names or names and addresses of the property owners and any other persons leasing, intending to lease or having an option to buy such property; (2) the for which real descriDtion ar C legal description and commonly known address of the real property property tax abatement is being petitioned;, and /or the legal G e (3) a map designating the area in question for consideration; (4) the assessed value of the real property improvement before rehabilita- tion or redevelopment, and /or the assessed value of the tangible personal proper in use at said property before the acquisition of new manufacturinq equipment; (5) pictures of the area in question taken at least two (2) weeks within the filing of the petition; (6) a written estimate of the market value of the real property improve- ments after the rehabilitation or redevelopment, and /or a written estimate of market value of the proposed new manufacturinq equipment. (7) a statement describing how the public health and welfare will be bene- fited by this particular rehabilitation, redevelopment, or acquisition of new manu- facturing equipment, including a statement describing the proposed use; (8) 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; (9) a statement verifying that no building permit has been issued for con- struction on the property in connection with the improvement in question,and /or a statement verifyinc that the new manufacturing equipment in question has not �� « ,, a 1.11.82 (c) For those properties located outside of those areas designated by the Common Council as Tax Abatement Impact Areas, the following additional in- formation shall also be provided in the petition: (1)(a) for Real Property Tax Abatement Petitions, a statement verifying that the area in question has become undesirable for or impossible €er of normal development, has experienced a cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings, and 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 s ment verifyino that the facilitv or orouo of facilities are technolooica ne in W7 sona e persona sing, rerinino. or rinisnino or otner tangiDie (2) a statement verifying that the community will rea ;4se- a- s49p4 €4eant -pet 4perease -4p retain or increase jobs as a result of this rehabilitation, ex rede- velopment or acquisition of new manufacturing equipment; (3) a statement verifying that the community will realize a net increase in South Bend's assessed valuation of Real and /or Personal Property. Sec. 2 -77. Referral of Petition; Adoption of Declaratory Resolution. (a) ripen tThe filing of a petition pursoapt4e with the Redevelopment Com- mission is for the purposes of investigation and preparation of a report deter- mining whether the area qualifies as a urban development area under Indiana Code 6 -1.1 -12.1, and the preparation of such other information as contained in Indiana Code 48- 7 -7 -42 36- 7- 14 -15. Within thirty (30) days, the Redevelopment Commission shall submit the report of its investigation and finding to the Human Resources and Economic Development Committee of the Common Council €er-rev4ew- and- reeea+raepda- t4ep- te- the- 6eraraep- 6edpe44. (b) The Human Resources and Economic Development Committee of the Council, after examination and review of said report, shall submit its recommendation to the Common Council as to whether the area qualifies as an urban development area under Indiana Code 6 -1.1 -12.1. The Council upon accepting the report and recom- mendation of the Committee recommending designation of the area as an urban develop- ment area may adopt a declaratory resolution including the general boundaries of the area to be designated an urban development area. Upon adoption of the declara- tory resolution by the Council, said resolution, together with supporting data, shall be submitted to the Area Plan Commission. Within thirty (30) days, the Area Plan Commission shall send its written order approving or disapproving the declaratory resolution to the Council. (c) Upon receipt of the report of the Area Plan Commission, the City Clerk shall cause notice of the adoption of the declaratory resolution to be published pursuant to Indiana Code 18- 7 -7 - ;4 36- 7- 14 -17, said publication providing notice of the public hearing before the Council to be held not less than ten (10) days after the date of such last publication. (d) At the public hearing on the declaratory resolution, the Council will hear remonstrances and objections pertaining to the proposed project. At the pub- lic hearing the Council will: (1) Determine the public utility and benefit of those properties to be considered that are within the Tax Abatement Impact Areas; or (2) Determine the public utility and benefit of those properties to be considered that are not within the designated Tax Abatement Impact Areas in accordance with but not limited to the following criteria: {a} -- Whether - the- prejeet- w4} }- prev4de- new- perrmapept -jobs; �b4 (a) For Real Property Tax Abatement petitions, Wwhether there is compliance with the statutory growth "undesirable for normal development" criterion,; - 2 - 1.11.82 (c) Whether the project will result in a- sobstapt4a ;- pet- 4neeease #p maintaining or increasing permanent jobs within the community; (d) Whether there will be a net expansion of the assessed valuation of real and personal property within the community. (e) Any project on which the Common Council has adopted a declaratory resolution designating it as a tax abatement area which does not receive a build- ing permit,and /or complete the acquisition of new manufacturing equipment within one (1) year of the adoption of the resolution shall be null and void. (f) Urban Development Area desiqnatio for real property tax abatement shall expir Development Area are eligible for tax abate substantially completed and certified for o commencing with the effective date of the d urban Ueyelopm ments are subs year period co (h Urba for tangible n velooment Area designations expire so that new improvem Areas are eligible for tax ially completed and certifi cing with the effective dat velopment Area designations nal_property tax abatement ons so established. Tanqib only to th innina Jan anted as a result of petitions that new improvements in the Urba only if said new improvements are ncy within the five 5 year peri atgrV resolution. d /or tax abatement areas previous s in said oreviously established e snail expire in le personal Pro N said a 4 €4(i) All other procedures for filing for tax abatement shall be consistent with Indiana Code 6 -1.1 -12.1 through y,};}- }2-} -6 6 -1.1- 12.1 -6 as it may be amend- ed from time to time. SECTION II. This ordinance shall be in full force and effect from and after its passage by the Common Council of the City of South Bend, Indiana, approval by the Mayor, and legal publication. Member of the Common Counci Passed, as amended, January 11, 1982 - 3 - 1.11.82 Patrick M. McMahon Executive Director Ann Kolata Dep. Dir. Redev. Kevin Horton Dep. Dir. Ec. Day. CITY of SOUTH BEND ROGER O. PARENT, Mayor DEPARTMENT OF ECONOMIC DEVELOPMENT AND REDEVELOPMENT 1200 COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 (219) 284 -9371 December 8, 1981 Members of the Common Council 441 County -City Building South Bend, IN 46601 Redevelopment Commission F. Jay Nimtz President Lloyd E. Robinson, Sr. Vice President A. Peter Donaldson Secretary Robert J. Cira Ass istant Secrets ry Paula N. Auburn Member Attention: Mr. John Voorde, Human Resources and Economic Development Committee RE: Tax Abatement - Tangible Personal Property (Machinery and Equipment) Members of the Common Council: Attached you will find a proposed ordinance which would amend our current Tax Abatement Ordinance to include the new machinery and equipment provi- sions recently enacted by the State Legislature. In order to implement the new Indiana Statute (6 -1.1- 12.1), I have chosen to suggest modifications to our existing ordinance in the appropriate sections rather than create a new and separate document. Under the new statute, new manufacturing equipment, defined as tangible personal property, is now eligible for tax abatement, provided that: The equipment is installed during the period from January 1, 1982 to December 31, 1985, and 2. The equipment is used in the direct production, manu- facture, fabrication, assembly, extraction, mining, Processing, refining, or finishing of other tangible personal property, and 3. The existing facility or facilities have become obso- lete, thereby negatively affecting South Bend's employ- ment or tax revenues. Members of the Common Council Page Two December 8, 1981 The City Council, in reviewing petitions for this tangible personal property tax abatement, holds the same leverage as with the current abatement process; namely, the discretion to declare specific parcels or properties to be Urban Development Areas, thereby making them eligible for tax abatement. I would also like to call your attention to paragraphs (f) and (g) of Section 2 -77. These paragraphs have been added to restrict the availability of tax abatements for new real property improvements to Hive years from the date of its establishment for each parcel. Our present ordinance contains no such "sunset" provisions and I suggest to the Council that such a re- striction is most appropriate. Any recipient of tax abatement should be forced to reappear before the Council and petition anew should he feel that a longer period is required. Please contact me should you have any questions. I remain Ver truly yours Patrick M. McMahon PMMcM:amc Attachment fdnmmtmf grpvr# On ille (gam an tIIounril of tot (Ing of Omd# Emb; Your Committee OF THE WHOLE to whom was referred BILK NO. 143 -81 A BILL AMENDING CHAPTER 2, ARTICLE 6 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, 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. JOHN VOORDE .....eros rt a+' . rveu........ Chairman