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HomeMy WebLinkAbout6A2 Confirming Resolution No. 3629 - Taxable Econ. Dvlpmnt. Tax Increment (J.C. Hart) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 2/25/25 FROM: Erik Glavich, Director, Growth & Opportunity SUBJECT: Public Hearing Resolution No. 3629 (Confirming Resolution) Resolution No. 3630 (J.C. Hart TIF Pledge) 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: Public hearing and resolution to confirm the establishment of the Riverwalk Allocation Area; Resolution to pledge TIF revenues for the Riverwalk project SPECIFICS: The Commission will consider 2 resolutions that, if adopted, would finalize the establishment of the Riverwalk Allocation and pledge TIF revenues from the new allocation area in support of the transformative Riverwalk project. The project will consist of 2 new multi-family residential buildings (approximately 291 total apartments) and a parking garage with approximately 398 spaces. The City is considering the issuance of Taxable Economic Development Tax Increment Revenue Bonds, Series 2025, and a portion of the net proceeds of such bonds would be used for the purpose of financing a portion of the costs of the project. The bonds would be purchased by J.C. Hart Company, Inc. (the “Developer”). Resolution No. 3629, if adopted, would confirm the Commission’s Declaratory Resolution No. 3627, adopted on 1/9/25, which would amend the River West Development Area and would create the new Riverwalk Allocation Area. The amendment to the River West Development Area and the creation of the new Riverwalk Allocation Area were also approved by the South Bend Plan Commission on 1/21/25 and the Common Council on 2/10/25. Prior to consideration of Resolution No. 3629, the Commission will hold a public hearing. Resolution No. 3630, if adopted, would pledge TIF revenues from the Riverwalk Allocation Area to the Developer in support of the project. The Commission entered into a Development Agreement with the Developer on 1/9/25, which established that the support provided by the Commission to the Developer will be in the form of Pledged TIF Revenue. This Pledged TIF Revenue—90% of the TIF revenue over the life of the bond, if issued— would be used by the Developer to pay the principal and interest on the bonds. Moreover, this resolution would pledge additional 6% of TIF revenues until such additional revenue equals $1.342 million. As stated in Declaratory Resolution No. 3627, the full development of the Riverwalk Allocation Area with the improvements discussed above would not proceed as planned without the contribution of tax increment revenues to be derived from the Riverwalk Allocation Area to the Riverwalk project. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION February 27, 2025  RESOLUTION NO. 3629 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION CONFIRMING A DECLARATORY RESOLUTION 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 “Redevelopment District”), exists and operates under the provisions of 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 Area (the “Original Plan”); and WHEREAS, the Commission on January 9, 2025, approved and adopted its Resolution No. 3627 entitled “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” (the “Amending Declaratory Resolution”), a copy of which is attached hereto as Exhibit A; and WHEREAS, the Amending Declaratory Resolution approved amendments to the Declaratory Resolution previously adopted by the Commission and the Original Plan previously approved by the Commission for the purpose of designating an area, presently part of the Allocation Area and described at Exhibit A to the Amending Declaratory Resolution, 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 adopting a supplement to the Original Plan attached as Exhibit B to the Amending Declaratory Resolution; and WHEREAS, the South Bend Plan Commission, on January 21, 2025, approved and adopted its resolution (the “Plan Commission Order”) determining that the Amending Declaratory Resolution and the Original Plan, as amended by the Amending Declaratory Resolution (as amended, the “Plan”), conform to the plan of development for the City and approved the Amending Declaratory Resolution and the Plan; and WHEREAS, pursuant to Section 16 of the Act, the Common Council of the City (the “Common Council”), on February 10, 2025, adopted Resolution No. 5118-25 which approved the Amending Declaratory Resolution, the Plan and the Plan Commission Order; and WHEREAS, the Commission has received the written orders of approval as required by Section 17(a) of the Act; and 2 WHEREAS, the Commission caused to be published and delivered the notices required by Section 17 and 17.5 of the Act, concerning the Amending Declaratory Resolution and the Plan; and WHEREAS, at the hearing (the “Public Hearing”) held by the Commission on February 27, 2025 Commission heard all persons interested in the proceedings and received ____ written remonstrances that had been filed and considered those written remonstrances that were filed, if any, and all evidence presented; and WHEREAS, the Commission now desires to take final action determining the public utility and benefit of the Plan, as amended, and the proposed development activities for the Riverwalk Allocation Area, approving the Plan, and confirming the Amending Declaratory Resolution, in accordance with Section 17 and Section 17.5 of the Act; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission, as follows: 1.After considering the evidence presented at the Public Hearing, the Commission hereby confirms the findings and determinations, designations and approving and adopting actions contained in the Amending Declaratory Resolution. 2.After considering the evidence presented at the Public Hearing, the Commission hereby finds and determines that it will be of public utility and benefit to proceed with the proposed activities set forth in the Plan, as amended, and the Plan, as amended, is hereby approved in all respects. 3.The Amending Declaratory Resolution is hereby confirmed. 4.This Resolution constitutes final action, pursuant to Section 17(d) of the Act, by the Commission determining the public utility and benefit of the Plan, as amended, and the proposed activities and confirming the Amending Declaratory Resolution pertaining to the Area. 5.The Secretary of the Commission is directed to record and file the final action taken by the Commission pursuant to the requirements of Section 17(d) of the Act. 6.This resolution shall take effect immediately upon its adoption by the Commission. 3 ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment Commission held on the 27th day of February, 2025. SOUTH BEND REDEVELOPMENT COMMISSION Troy Warner, President ATTEST: Eli Wax, Secretary EXHIBIT A AMENDING DECLARATORY RESOLUTION NO. 3627 (See attached) DMS 46302859 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