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HomeMy WebLinkAbout25-39 Amending and Reconfirming Resolution - Real Property Tax Abatement for 505 South Michigan Street (Substitute) founi-- , CITY OF SOUTH BEND K,____ ;,,` r ,, COMMUNITY INVESTMENT lW;S October 8, 2025 Filed in Clerk's Office Council Member Troy Warner Oct 8, 2025 Chairperson, Community Investment Committee South Bend Common Council Bianca Tirado 4th Floor, County-City Building City Clerk, South Bend, IN South Bend, Indiana 46601 RE: Resolution: Real Property Tax Abatement for The Monreaux LLC Dear Council Member Warner, Please find enclosed a resolution that would reconfirm the real property tax abatement for The Monreaux LLC. The abatement provides support for the construction of a 57-unit affordable apartment building—The Monreaux—at 505 S. Michigan Street (the southwest corner of S. Michigan Street and W. Monroe Street). The enclosed resolution would also amend the Declaratory Resolution for the tax abatement. On August 22, 2022, the Common Council of South Bend adopted Confirming Resolution 4975- 22, which confirmed Declaratory Resolution 4972-22 to establish an eight-year (8) real property tax abatement for The Monreaux project. In February 2023, the project was awarded low- income housing tax credits from the Indiana Housing and Community Development Authority. The tax abatement approved by the Common Council was an important component of the City's support package as the project's tax credit application was reviewed and ultimately awarded. The Monreaux project is vital to the stabilization and continued growth of south downtown South Bend. The designation period for the tax abatement expired on August 8, 2025, and needs to be extended in order for the project to receive the benefits of the tax abatement. Adoption by the Common Council of the reconfirming resolution would extend the designation period and help ensure the success of the project. A representative from The Monreaux LLC will be available to meet with the Committee on Monday, October 13, 2025. If you or any of the other Council members have questions concerning the report or need additional information, please feel free to call me at (574) 235- 5838. Sincerely, ),-4_,---- - -, 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 Oct 8, 2025 BILL NO. 25-39 Bianca Tirado City Clerk, South Bend, IN RESOLUTION NO. A RESOLUTION AMENDING DECLARATORY RESOLUTION NO. 4972-22 AND MODIFYING AND RECONFIRMING THE ADOPTION OF DECLARATORY RESOLUTION NO. 4972-22 DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 South Michigan Street, South Bend, Indiana 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) MIXED-USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT FOR The Monreaux LLC WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, Declaratory Resolution No. 4972-22 designated the area commonly known as 505 S. Michigan Street, South Bend, Indiana, and which is more particularly described as follows: (1) 132 Ft E End Lot 19Martins Add (2)N 44'Lot 20 Martins Add (3)S 1-3 Lot 20 Martins Add (4)Lot 21 &N 1/2 Vac Alley S &Adj Martins Add and which has Key Numbers 71-08-12-306-010.000-026, 71-08-12-306-011.000-026, 71-08-12- 306-012.000-026, and 71-08-12-306-013.000-026 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, upon proper notice, a public hearing was held, after which the Common Council issued Confirming Resolution No. 4975-22 on August 22,2022, confirming the adoption of Declaratory Resolution No. 4972-22; and WHEREAS, The Monreaux LLC, an Indiana Limited Liability Company, was granted a three-year(3)designation period in Confirming Resolution No.4975-22,which expired on August 8, 2025; and WHEREAS, completion of the project by end of the original designation period was not possible; and WHEARAS, the Petitioner has requested to extend the designation period confirmed by Confirming Resolution No.4975-22; and WHEREAS, the Common Council desires to reconfirm the designation of certain areas designated by Declaratory Resolution No. 4972-22 and confirmed by Confirming Resolution No. 4975-22 as an Economic Revitalization Area for purposes of an eight-year (8) mixed-use development real property tax abatement; and WHEREAS, the Common Council desires to extend the designation period confirmed by Confirming Resolution No. 4975-22; and NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby reconfirms Declaratory Resolution No. 4972-22 and Confirming Resolution No.4975-22 for purposes of an eight-year(8)mixed-use development real property tax abatement. SECTION III. The designation as an Economic Revitalization Area for purposes of an eight-year (8) mixed-use development real property tax abatement expires on December 31, 2028. SECTION IV. The Common Council hereby determines that the Petitioner is qualified and is granted property tax deduction for a period of eight(8)years as shown in Section II of Declaratory Resolution No. 4972-22 and further determines that the petition, the Statement of Benefits, and the Memorandum of Agreement between the Petitioner and the City of South Bend comply with Chapter 2, Article 6,of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. SECTION V. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. Canneth J. Lee, Council President South Bend Common Council Attest: Bianca L. 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 , 2025, at o'clock .m. Bianca L. Tirado, City Clerk Office of the City Clerk Approved and signed by me on the day of , 2025, at o'clock .m. James Mueller, Mayor City of South Bend, Indiana irHQ CITY OF SOUTH BEND PF.n4 COMMU \ITY INVESTMENT Filed in Clerk's Office 1 965 Oct 10, 2025 Bianca Tirado October 10, 2025 City Clerk, South Bend. IN Council Member Canneth Leet Council Member Troy Warner President Chairperson South Bend Common Council Community Investment Committee 4th Floor, County-City Building South Bend Common Council South Bend, Indiana 46601 4th Floor, County-City Building South Bend, Indiana 46601 RE: SUBSTITUTE Bill No. 25-39—A Resolution Amending Declaratory Resolution No. 4972-22 And Modifying And Reconfirming the Adoption of Declaratory Resolution No. 4972-22 (Real Property Tax Abatement for The Monreaux LLC) Dear President Lee and Council Member Warner, Please find enclosed SUBSTITUTE Bill No. 25-39, which would (1) amend Resolution No. 4972- 22 adopted by the Common Council on August 8, 2022, and (2) modify and reconfirm the real property tax abatement granted by the Common Council to The Monreaux LLC. The amendment to Resolution No. 4972-22 is necessary to ensure that the form of the Declaratory Resolution for Real Property Tax Abatement adopted by the Common Council in 2022 accurately reflects the intentions and actions of the Common Council when it adopted the resolution. This substitute bill will also modify and reconfirm the original tax abatement to extend the designation period so that The Monreaux LLC can complete the residential development and receive the benefits of tax abatement as the Common Council intended. The Monreaux project is vital to the stabilization and continued growth of south downtown South Bend. Adoption by the Common Council of SUBSTITUTE Bill No. 25-39 would help ensure the success of the project. If you or any of the other Council members have questions concerning 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 14005 County-City Building 227W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov Filed in Clerk's Office Oct 10, 2025 SUBSTITUTE BILL NO. 25-39 Bianca Tirado RESOLUTION NO. City Clerk, South Bend in A RESOLUTION AMENDING DECLARATORY RESOLUTION NO. 4972-22 AND MODIFYING AND RECONFIRMING THE ADOPTION OF DECLARATORY RESOLUTION NO. 4972-22 DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 South Michigan Street, South Bend, Indiana 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR(8) MIXED-USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT FOR The Monreaux LLC WHEREAS, on July 20, 2022, the Department of Community Investment filed with the Office of the City Clerk a Declaratory Resolution for Real Property Tax Abatement and a Confirming Resolution for Real Property Tax Abatement for consideration by the Common Council of the City of South Bend, Indiana, to designate certain areas within the City as an Economic Revitalization Areas for the purpose of tax abatement; and WHEREAS, the Meeting Agenda for the August 8, 2022, Common Council Meeting included Bill No. 22-38 with the title, "A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, DESIGNATING A TAX ABATEMENT FOR CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 S MICHIGAN ST., SOUTH BEND, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT (8) YEAR MIXED-USE REAL PROPERTY TAX ABATEMENT FOR THE MONREAUX, LLC;"and WHEREAS, on August 8, 2022, the Common Council considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that designated the area commonly known as 505 S. Michigan Street, South Bend, Indiana, and which is more particularly described as follows: (1) 132 Ft E End Lot 19Martins Add (2)N 44'Lot 20 Martins Add (3) S 1-3 Lot 20 Martins Add (4)Lot 21 &N 1/2 Vac Alley S &Adj Martins Add and which has Key Numbers 71-08-12-306-010.000-026, 71-08-12-306-011.000-026, 71-08-12- 306-012.000-026, and 71-08-12-306-013.000-026 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, the Common Council further considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that established that the Economic Revitalization Area shall be limited to three(3)calendar years from the date of the adoption of Bill No. 22-38 by the Common Council; and WHEREAS, the Common Council further considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that asserts that the Common Council determines that the property owner is qualified for and is granted property tax deduction for a period of eight (8)years as shown by the schedule outlined below pursuant to Indiana Code 6-1.1-12.1-17. Year 1 - 100% Year 2 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6 - 75% Year 7 - 70% Year 8 - 65% WHEREAS, the Common Council further considered Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement that directs the City Clerk to cause notice of the adoption of Bill No. 22-38 as a Declaratory Resolution for 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; and WHEREAS,on August 8,2022,the Community Investment Committee debated the merits of Bill No. 22-38 as a Declaratory Resolution for Real Property Tax Abatement, held a public hearing for the bill,and reported the bill to the Common Council with a favorable recommendation; and WHEREAS, the minutes of the Community Investment Committee meeting held on August 8, 2022,provide that the Community Investment Committee considered Bill No. 22-38 as a"Resolution Designating Tax Abatement for 505 S. Michigan St., South Bend, Indiana;"and WHEREAS, on August 8, 2022, the Common Council debated the merits of Bill No. 22- 38 as a Declaratory Resolution for Real Property Tax Abatement,held a public hearing for the bill, and voted in favor of adopting Bill No. 22-38; and WHEREAS,the minutes of the Common Council meeting held on August 8,2022,provide that the Common Council considered Bill No. 22-38 with the title, "A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,INDIANA,DESIGNATING A TAX ABATEMENT FOR CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 505 S MICHIGAN ST., SOUTH BEND, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT(8)YEAR MIXED- USE REAL PROPERTY TAX ABATEMENT FOR THE MONREAUX, LLC;"and WHEREAS, Bill No. 22-38 was passed by a vote of eight(8)ayes and zero (0) nays; and WHEREAS, upon adoption by the Common Council on August 8, 2022, Bill No. 22-38 was filed as Declaratory Resolution No. 4972-22; and WHEREAS, upon proper notice, a public hearing was held, after which the Common Council issued Confirming Resolution No. 4975-22 on August 22, 2022, confirming the adoption of Declaratory Resolution No. 4972-22; and WHEREAS, through the adoption of Declaratory Resolution No. 4792-22on August 8, 2022, and the adoption of Confirming Resolution No. 4975-22 on August 22,2022, the Common Council intended to grant The Monreaux LLC, an Indiana Limited Liability Company, an eight- year(8)mixed-use real property tax abatement; and WHEREAS,through the adoption of Declaratory Resolution No.4792-22 and the adoption of Confirming Resolution No. 4975-22, the Common Council intended to grant The Monreaux LLC a three-year(3)designation period,which would have expired on August 8, 2025; and WHEREAS, the Common Council now desires to amend Declaratory Resolution No. 4792-22 to match the form of Declaratory Resolution filed by the Department of Community Investment on July 20, 2022, to ensure that The Monreaux LLC receives the benefits of the real property tax abatement as the Common Council intended; and WHEREAS,the Common Council further desires to modify and reconfirm the adoption of Declaratory Resolution No. 4972-22, as amended by this Resolution, designating certain areas an Economic Revitalization Area for purposes of an eight-year (8) mixed-use real property tax abatement; and WHEREAS, completion of the project by end of the original designation period as the Common Council intended through the adoption of Declaratory Resolution No.4972-22 on August 8, 2022, and the adoption of Confirming Resolution No. 4975-22 on August 22, 2022, was not possible; and WHEREAS, The Monreaux LLC has requested to extend the designation period that the Common Council intended to confirm through the adoption of Confirming Resolution No. 4975- 22; and WHEREAS, the Common Council further desires to reconfirm the designation of certain areas designated by Declaratory Resolution No. 4972-22, as amended by this Resolution, and confirmed by Confirming Resolution No. 4975-22 as an Economic Revitalization Area for purposes of an eight-year(8) mixed-use development real property tax abatement; and WHEREAS, the Common Council further desires to extend the designation period confirmed by Confirming Resolution No. 4975-22; and NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend,Indiana, as follows: SECTION I. The Common Council hereby amends Resolution No.4972-22 to read in its entirety as follows: "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 area located at 505 S. Michigan Street, South Bend, IN,which is more particularly described as: (1) 132 Ft E End Lot 19Martins Add (2)N 44'Lot 20 Martins Add (3) S 1-3 Lot 20 Martins Add (4)Lot 21 &N 1/2 Vac Alley S &Adj Martins Add and which has Key Numbers 71-08-12-306-010.000-026, 71-08-12-306-011.000-026, 71- 08-12-306-012.000-026, and 71-08-12-306-013.000-026 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,the petitioner has agreed to and has accepted responsibility to report any changes in the Key Numbers and legal descriptions 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 the area as an Economic Revitalization Area for purposes of real property tax abatement." "SECTION V. The designation as an Economic Revitalization Area shall be limited to three (3) calendar years from the date of the adoption of this Resolution by the Common Council." "SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of eight(8)years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1- 12.1-17. Year 1 - 100% Year 2 -95% Year 3 -90% Year 4- 85% Year 5 - 80% Year 6 - 75% Year 7 - 70% Year 8 - 65%" "SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for 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." SECTION II. The Common Council hereby reconfirms Declaratory Resolution No. 4972-22, as amended by this Resolution, and Confirming Resolution No. 4975-22 for purposes of an eight- year(8)mixed-use development real property tax abatement. SECTION III. The designation as an Economic Revitalization Area for purposes of an eight-year (8)mixed-use development real property tax abatement expires on December 31, 2028. SECTION IV. The Common Council hereby determines that the Petitioner is qualified and is granted property tax deduction for a period of eight(8)years as shown in Section VI of Declaratory Resolution No. 4972-22, as amended by this Resolution, and further determines that the petition, the Statement of Benefits,and the Memorandum of Agreement between the Petitioner and the City of South Bend comply with Chapter 2,Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. SECTION V. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. Canneth J. Lee, Council President South Bend Common Council Attest: Bianca L. 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 , 2025, at o'clock .m. Bianca L. Tirado,City Clerk Office of the City Clerk Approved and signed by me on the day of , 2025, at o'clock .m. James Mueller,Mayor City of South Bend, Indiana