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HomeMy WebLinkAboutAmending Chapter 2 Entitled Tax AbatementORDINANCE No. 6763 -80 Passed by the Common Council of the City of South Bend, Indiana. ril 14, rq 80 Ir City Clerk IRENE K. GAMMON Of Common Council Presented by me to the Mayor of the City of South Bend, Ind'ana Approved and signed by April 15 rg 80 City Clerk IRENE K. GAMMON U ORDINANCE 2130. 6763-80 AN ORDINANCE A'lENDING CHAPTER 2 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA, BY THE INCLUSION OF NEW ARTICLE 6 ENTITLED TAX ABATEMENT STATEMENT OF PURPOSE AND INTENT The Common Council of the City of South Bend recognizes the need to stimulate growth within its corporate limits. The Council further recognizes that incentives to locate in underutilized or bypassed land would be in the City's best interest. Therefore, as a means of creating a mechanism for filing tax abatement petitions with.the City, the following bill is introduced. NOW, THEREFORE, BE IT ORDAINED by the Common Council for 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 read in its entirety as follows: ARTICLE 6. Tax Abatement Procedures. 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 a petition with the City Clerk including the following information: (1) the names or names and addresses of the property owners and any other persons intending to lease or having an option to buy such property; (2) the legal description and commonly known address of the property for which tax abatement is being petitioned; (3) a map designating the area in question for consideration; (4) the assessed value of the improvement before rehabilitation or redevelopment; (5) pictures of the area in question taken at least two (2) weeks within the filing of the petition; (6) a statement verifying that on the area in question conditions exist which cannot be corrected by regulatory process, or by the ordinary operations of private enterprise, without resorting to tax abatement; or (7) that the area in question has been bypassed or underutilized due to economic circumstances which have deterred normal development; (8) a statement describing how the public health and welfare will be benefited by this particular rehabilitation or redevelopment; (9) a statement verifying that the undesirable for or impossible for normal a cessation of growth, deterioration of occupancy, age, obsolesence, substandard which have impaired values and prevent a property or property use; area in question has become development, has experienced improvements or character of buildings, and other factors normal development of the (10) a statement verifying that the project would not occur within the City without tax abatement; and (11) a statement indicating the number of new permanent jobs which will be created by the project. SEC. 2 -77. Referral of Petition /Adoption of Declaratory Resolution. (a) Upon the filing of a petition pursuant to Section 2- 76(a), the same shall be referred to the Redevelopment Commission for purposes of investigation and preparation of a report determining whether the area qualifies as an Urban Development Area under Indiana Code 6- 1.1- 12.1 -1, and the preparation of such other information as contained in Indiana Code 18- 7 -7 -12. 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 for review and recommendation to the Common Council. (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 -1. The Council upon accepting the report and recommendation of the Committee recommending designation of the area as an Urban Development Area may adopt a declaratory resolution including the general boundaries of the area to be designated an urban development area. Upon adoption of the declaratory 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 -14 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 from persons interested in or affected by the proceedings pertaining to the proposed project and the Council will determine the public utility and benefit of the project. In making such determinations, the Council will consider the following criteria: 1. Whether the project can take place without the added incentive of tax abatement. 2. Whether the project is to occur upon underutilized or bypassed land, or 3. Whether the project will provide new permanent jobs, or 4. Whether there will be an expansion of the property tax base, or 5. Whether rehabilitation, if contemplated, will replace or improve obsolete or deteriorated structure(s), or 6. Whether there is compliance with the statutory "undesirable for normal development" criterion. (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 building permit within one (1) year of the adoption of said resolution shall be null and void. -2- (f) All other procedures for filing for tax abatement shall be consistent with Indiana Code 6- 1.1- 12.1 -1 thru Indiana Code 6.1 -1- 12.1 -6, as it may be amended 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 J1.egal publication. r oXf the Common Council Passed, as amended, April 14, 1980 cr yy e �a RK Sp /J&� ®D -3- TOMM # n 14 part !!a toe Tnmmnn Tonnrti of t4f Tt#j of 00V44 Jornk: Your Committee Human Resources and Economic Development to whom was referred Bill No. 19 -80 - Tax Abatement Respectfully report that they have examined the matter and that in their opinion they request your favorable acceptance and ask that you set for public hearing on April 14 the amended version of the "tax abatement ", Bill No. 19 -80. The amended version is the product of the joint efforts of the Mayor; City Attorney, Rich Hill; Deputy Attorney, Jim Masters; South Bend Redevelopment staff, Carl Ellison and Ann Kolata; Council Attorney, Kathy Cekanski- Farrand; this Committee and its citizen members Marc Brammer and Christopher Davey. While this bill is seen primarily as a tool to provide incentive for econom- ic development it recognizes the need for and allows residential investment. The bill creates a standard procedure for filing tax abatement petitions and establishes specific criteria to be used in evaluating them. The "case by case" method of evaluation with referal to the Redevelopment Commission and the Area Plan Commission satisfies the State law requirement for investigation of petitions, while protecting the City's property tax base. The bill further allows the City a modicum of flexibility in deter - ming the nature and direction of its growth. As Committee Chairman, I sincerely thank the Administration for its coopera- tion with the Council in formulating a bill I feel is most certainly in the best interest of this community. Chairman John Voorde FREE PRESS PUBLISHING CO. Tontutnut , Irp:,art GO #lie Tomrnon Mounfcil of t4f alftn of *Ord# j.9fnd: Your Committee OF THE WHOLE to whom was referred A BILL AMENDING CHAPTER 2 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA, BY THE INCLUSION OF NEW ARTICLE 6 ENTITLED TAX ABATEMENT. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE, AS AMENDED: Substitute new amended bill. amend Sec. 2 -77 (b), second line change may to "shall" WALTER M. SZYMKOWIAK Chairman FREE PRESS PUBLISHING CO.