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HomeMy WebLinkAboutResolution No. 3627 Establishing New Allocation Area (J.C. Hart Company) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DAT E : 1/6/25 FROM: Erik Glavich, Director of Growth & Opportunity SUBJECT: Declaratory Resolution, Establishing New Allocation Area Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. * Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Resolution to establish a new separate allocation area in the River West Development Area for the purpose of supporting redevelopment SPECIFICS: The Resolution to be presented to the Commission for consideration would amend the River West Development Area for the purpose of establishing a new allocation area to support the redevelopment of property on the west bank of the St. Joseph River. The new allocation area would be known as the “Riverwalk Allocation Area” and would be comprised of property on which the southern half of the Crowe complex currently resides. The northern Crowe building would not be included in the new allocation area. The adoption of the Resolution would begin the process of establishing a new allocation area that would dedicate Tax Increment Financing for the issuance of bonds in support of a certain redevelopment project led by Indiana developer, J.C. Hart Company, Inc. This will be an estimated $61.5 million project for the Developer and will entail the demolition of the southern Crowe building and subsequent construction of 2 multi-family residential buildings (totaling 291 apartments) and a 398-space structure parking garage. One of the apartment buildings will be wrapped around the parking garage. As stated in the Resolution, the full development of the Riverwalk Allocation Area with these improvements would not proceed as planned without the contribution of tax increment revenues to be derived from the Riverwalk Allocation Area to this project. In addition to establishing the new Riverwalk Allocation Area itself, the Resolution asserts, among other things, that the establishment of the new allocation area would promote economic growth, will be a public utility and benefit, and meets other purposes of state law, and establishes that incremental tax proceeds of the new area be paid into an allocation fund designated as the “Riverwalk Allocation Area Allocation Fund.” The new Area will result in new property taxes in the Riverwalk Project Allocation Area that would not have been generated but for its adoption. The Area’s designation would expire after 25 years. Adoption of the Declaratory Resolution by the Commission is the initial step in establishing the Riverwalk Allocation Area. Moreover, staff will present resolutions for adoption to the South Bend Plan Commission, the Economic Development Commission, and the Common Council in the next few months. APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION _________________________Pres/V-Pres ATTEST: __________________Vice President Date: _______January 9, 2025_____________  RESOLUTION NO. 3627 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPROVING AMENDMENTS TO THE DECLARATORY RESOLUTION AND THE DEVELOPMENT PLAN FOR THE RIVER WEST DEVELOPMENT AREA FOR THE PURPOSE OF ESTABLISHING A NEW ALLOCATION AREA AND RELATED MATTERS WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the governing body of the City of South Bend, Indiana, Department of Redevelopment (the “Department”) and the Redevelopment District of the City of South Bend, Indiana (the “District”), exists and operates under the provisions of the Redevelopment of Cities and Towns Act of 1953 which has been codified in Indiana Code 36-7-14, as amended from time to time (the “Act”); and WHEREAS, the Commission has heretofore adopted a declaratory resolution (as subsequently confirmed and amended from time to time, the “Declaratory Resolution”) designating an area known as the River West Development Area (the “Area”) as an economic development area pursuant to the Act, designating the Area as an allocation area pursuant to Section 39 of the Act (the “Allocation Area”), and approving and subsequently amending from time to time a development plan for the Area (collectively, the “Plan”); and WHEREAS, pursuant to Sections 15-17.5 of the Act, the Commission desires to further amend the Declaratory Resolution and the Plan to designate an area, presently part of the Allocation Area and described at Exhibit A attached hereto, as a separate allocation area pursuant to Section 39 of the Act to be known as the “Riverwalk Allocation Area” (the “Riverwalk Allocation Area”); and WHEREAS, Section 39 of the Act has been created and amended to permit the creation and expansion of “allocation areas” to provide for the allocation and distribution of property taxes for the purposes and in the manner provided in said Section; and WHEREAS, this Commission deems it advisable to apply the provisions of said Section 39 of the Act to the Riverwalk Allocation Area; and WHEREAS, the Commission now desires to approve the designation of the Riverwalk Allocation Area and the amendment of the Plan to include the Riverwalk Allocation Area therein (collectively, the “2025 Amendments”); and WHEREAS, the proposed 2025 Amendments and supporting data were reviewed and considered at this meeting. -2 - NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1.The Commission hereby finds and determines that the 2025 Amendments promote significant opportunities for the (i) gainful employment of the citizens of the City of South Bend, Indiana (the “City”), (ii) attraction of major new business enterprises to the City, and (iii) retention and expansion of significant business enterprises existing in the boundaries of the City and meets other purposes of Sections 2.5, 41 and 43 of the Act, including without limitation benefiting public health, safety, and welfare, increasing the economic well-being of the City and the State of Indiana (the “State”) and serving to protect and increase property values in the City and the State. 2.The 2025 Amendments cannot be achieved by regulatory processes or by the ordinary operation of private enterprise without resort to the powers allowed under Sections 2.5, 41 and 43 of the Act because of lack of local public improvements, existence of conditions th at lower the value of the land below that of nearby land, multiple ownership of land, and other similar conditions. 3.The public health and welfare will be benefited by accomplishment of the 202 5 Amendments. 4.It will be of public utility and benefit to further amend the Declaratory Resolution and the Plan for the Area as provided in the 202 5 Amendments and to continue to develop the Area, including the Riverwalk Allocation Area, as provided under the Act. 5.Accomplishment of the 2025 Amendments will be a public utility and benefit as measured by the attraction or retention of permanent jobs, an increase in the property tax base, improved diversity of the economic base and other similar public benefits. 6.The Commission hereby finds that the further amendment of the Declaratory Resolution and the Plan, to designate the Riverwalk Allocation Area, conforms to the comprehensive plan for the City. 7.The map and plat of the Riverwalk Allocation Area showing its boundaries, the location of the various parcels of property, streets and alleys, and other features affecting the acquisition, clearance, replatting, replanning, rezoning, redevelopment or economic development of the Riverwalk Allocation Area, and the parts of the Riverwalk Allocation Area that are to be devoted to public ways, levees, sewerage, parks, playgrounds and other public purposes under the Plan, are hereby approved and adopted as the map and plat for the Riverwalk Allocation Area. 8.The 2025 Amendments are reasonable and appropriate when considered in relation to the Declaratory Resolution and the Plan and the purposes of the Act. 9.The findings and determinations set forth in the Declaratory Resolution and the Plan are hereby reaffirmed. -3 - 10.The Commission finds that no residents of the Area will be displaced by any project resulting from the 2025 Amendments, and therefore finds that it does not need to give consideration to transitional and permanent provision for adequate housing for the residents. 11.The 2025 Amendments are hereby in all respects approved. 12.The area described in Exhibit A is hereby removed from the Allocation Area, and is hereby designated as a separate “allocation area” pursuant to Section 39 of the Act to be known as the “Riverwalk Allocation Area,” for purposes of the allocation and distribution of property taxes for the purposes and in the manner provided by said Section. Any taxes imposed under I.C. 6-1.1 on real property subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in said allocation area shall be allocated and distributed as follows: Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or the base assessed value, shall be allocated to and when collected paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the District and when collected paid into an allocation fund for the Riverwalk Allocation Area hereby designated as the “Riverwalk Allocation Area Allocation Fund” and may be used by the District to do one or more of the things specified in Section 39(b)(4) of the Act, as the same may be amended from time to time. Said allocation fund may not be used for operating expenses of the Commission. Except as otherwise provided in the Act, before June 15 of each year, the Commission shall take the actions set forth in Section 39(b)(5) of the Act. The Commission hereby finds that the adoption of this allocation provision will result in new property taxes in the Riverwalk Allocation Area that would not have been generated but for the adoption of the allocation provision, as specifically evidenced by the findings set forth in Exhibit B. The base assessment date for the Riverwalk Allocation Area is January 1, 2025. 13.The provisions of this Resolution shall be subject in all respects to the Act and any amendments thereto, and the allocation provisions herein relating to the Riverwalk Allocation Area shall expire on the date that is twenty-five (25) years after the date on which the first obligation is incurred to pay principal and interest on bonds or lease rentals on leases payable from tax increment revenues derived from the Riverwalk Allocation Area. 14.Any member of the Commission is hereby authorized to take such actions as are necessary to implement the purposes of this resolution, and any such action taken prior to the date hereof is hereby ratified and approved. 15.This Resolution, together with any supporting data, shall be submitted to the City of South Bend Plan Commission (the “Plan Commission”) and the Common Council of the City (the “Common Council”) as provided in the Act, and if approved by the Plan Commission and the Common Council shall be submitted to a public hearing and remonstrance as provided by the Act, after public notice as required by the Act. -4 - 16.This Resolution shall take effect immediately upon its adoption by the Commission. ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment Commission held on the 9th day of January, 2025. SOUTH BEND REDEVELOPMENT COMMISSION President ATTEST: Vice President A-1 EXHIBIT A LEGAL DESCRIPTION Riverwalk Allocation Area River West Development Area Lot B of the Crowe Chizek Second Minor Subdivision Lot Line Adjustment B-1 EXHIBIT B 2025 PLAN SUPPLEMENT The Plan is further supplemented and amended to add the description for the territory to be known as the Riverwalk Allocation Area as set forth at Exhibit A. Tax Increment Revenues from the Riverwalk Allocation Area may be used to support all or any portion of the development, design, construction, equipping, and improving, as the case may be, of a development consisting of 2 buildings housing 291 apartments and a 398-space structured garage to be located in the Riverwalk Allocation Area and for any other economic development projects that are located in or serve the Riverwalk Allocation Area. The Commission anticipates capturing tax increment revenues from the Riverwalk Allocation Area and applying such tax increment revenues to offset payments by developers on promissory notes in connection with economic development revenue bond financings undertaken by the unit, or to pay principal or interest on economic development revenue bonds issued by the unit to provide incentives to a developer, in furtherance of the economic development or redevelopment purposes of the Riverwalk Allocation Area. Based on representations made to the Commission, the Commission has determined that the full development of the Riverwalk Allocation Area with the improvements described above, will not proceed as planned without the contribution of tax increment revenues to be derived from the Riverwalk Allocation Area to the projects described above. DMS 45741586v2