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HomeMy WebLinkAbout9394-03 Amend Chapter 2, Replacing in its entirety Article 6 Entitled Tax Abatement ProceduresORDINANCE No. 9394-03 Passed by the Common Corzncil of the City of South Bend, Indiana February 10, Attest: Attest: 20 03 Presented by me to the-Mayor of the Ciry of Sozzth Bend, Indiana February 11, 03 20 City Clerk President of Common Cozzncil Ciry Clerk Approved and signed by me February 12, 20 03 Mayior Ordinance No. ~ 3 q y - ~3 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE BY REPLACING IN ITS ENTIRETY ARTICLE 6 ENTITLED TAX ABATEMENT PROCEDURES STATEMENT OF PURPOSE AND INTENT The Common Council of the City of South Bend, Indiana, ("Council") acknowledges that it is reasonable from time to time to review the procedures. for tax abatement to assure that these procedures continue to be appropriate in light of governing state law and local goals for community and economic development. The Council further acknowledges that the last ordinance amending tax abatement procedures was passed in 1998; and, since that time, the governing state law has been amended. The procedures addressed in this ordinance are the result of a series of meetings held by the Council's Community and Economic Development Committee where members of the public and the City of South Bend administration provided input. The Counci{ desires that tax abatements be granted in a manner that provides incentives fior private sector entities to invest in property and to execute certain other actions which the Council considers to provide public benefits that would be in the best interests of the City of South Bend. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: Section I. Deletion And Replacement Of Existing Chapter 2. Article 6 The South Bend Municipal Code is amended to delete Chapter 2, Article 6 in its entirety and to insert the provisions set forth below as a new Chapter 2, Article 6. Article 6. Tax Abatement Procedures DIVISION 1. GENERAL PROVISIONS Sec. 2-76 Legislative Findings A. The Council finds that there is a need to develop improved tax abatement procedures which set forth the philosophy, regulations, procedures, and general standards, and which the City ofi South Bend, Indiana ("City") believes are necessary to encourage economic development within the City's corporate boundaries. B. The Council, therefore, declares that the tax abatement procedures and general standards set forth in this Chapter 2, Article 6 shall govern tax abatement requests filed for its consideration. Tax Abatement Ordinance Page 1 C. The tax abatement procedures and general standards set forth in this Chapter 2, Article 6 are promulgated pursuant to the "Home Rule" Powers vested in the City pursuant to I.C., 36-1-3-1, et seq., and the "Deduction for Rehabilitation or Redevelopment of Real Property in Economic Revitalization Areas" statute set forth in I.C., 6-1.1-12.1-1 et seq. All persons who desire to seek real or personal property tax abatement consideration, have the duty to comply with the applicable provision set forth in this article, as well as all state law requirements. However, those persons who petition pursuant to Section 2-84, must only comply with the applicable state law provisions and the requirements of Section 2-84.13 herein. Sec. 2-76.1 Definitions And Interpretation A. For purposes of this Article, unless the context otherwise requires, a temp that begins with an upper case letter has the meaning assigned in the sentence in which it appears within quotation marks; and the following words and phrases have the meanings set forth below. "Airport Economic Development Area" and "AEDA" mean the area located within the City's corporate boundaries designated by the following legal description. a. Apart of Sections 17, 18, 19, 20, 21, 22, 27, 28, 29, 30, 31, 32 and 33 in Township 38 North, Range 2 East, and Sections 3 and 4, Township 37 North, Range 2 East, in German and Portage Townships, St. Joseph County, Indiana, more particularly described as follows: Beginning at the intersection of the northeasterly right-of-way line of Lincolnway West and the easterly right-of-way line of Bendix Drive, the Point of Beginning ("Point of Beginning") for this description; thence south, southeasterly and easterly along said easterly right-of-way line of Bendix Drive to the intersection of the northerly right-of-way line of Bendix Drive and easterly right-of-way line of Goodland Avenue; thence north 0°00'00" east (bearing assumed of the next twenty courses) along said easterly right-of-way line of Goodland Avenue, a distance of 362.95 feet; thence south 89°46'27" east, a distance of 239.50 feet; thence south 0°29'11" east, a distance of 176.78 feet; thence south 89°07'43" east, a distance of 227.04 feet to the westerly right-of-way line of Eclipse Street; thence along anon- tangent curve to the left having a radius of 957.29 feet and a central angle of 3°26'41" and limited in length by a chord which bears south 17°02'58" east, a distance of 57.54 feet; thence continuing along said west right-of- way line of Eclipse Street, a distance of 127.60 feet to the northerly right-of- way tine of Bendix Drive; thence east along said northerly right-of-way line to the easterly right-of-way line of Meade Street; thence south along said easterly right-of-way line of said Meade Street to the northeasterly right-of- way line of Consolidated Railroad formerly Penn Central Railroad; thence northwesterly along said northeasterly right-of-way line to the intersection of the south line of the southwest quarter of Section 3; thence north 64°42'17" west along said northeasterly right-of-way line, a distance of 394.85 feet; thence north 24°58'43" east, a distance of 50.30 feet; thence north 01°01'45" west, a distance of 40.72 feet; thence north 0°09'03" east, a ~ Maps of all areas defined in this section with legal descriptions are on file in the Office of the City Clerk and in the Community and Economic Development Department and may be further accessed on the City's website at http:!/www.ci.south-bend.in.us. Tax Abatement Ordinance Page 2 distance of 113.11 feet; thence south 89°56'21" west, a distance of 16.00 feet; thence north 0°09'03" east, a distance of 8.05 feet; thence north 89°57'00" west, a distance of 3.59 feet; thence north 0°08'44" east, a distance of 371.13 feet; thence north 87°38'33" west, a distance of 1.85 feet; thence north 3°54'24" west, a distance of 21.58 feet to the southerly right-of-way line of Bendix Drive; thence westerly, northwesterly and northerly along the right-of-way lines of said Bendix Drive to the intersection of the westerly right-of-way line of Bendix Drive and the northeast right-of- way line of Lincolnway West; thence northwesterly along said northeast right-of-way line of Lincolnway West to the east right-of-way line of Buttemut Road; thence northwesterly across Buttemut Road on a line parallel with and 140 feet northerly of the survey Line S-USR20-M (referenced to plans for U.S. 31 Bypass) to the west right-of-way line of Buttemut Road; thence northwesterly along the northeast limited access right-of-way line of USR 20 to a point 150 feet to the right of Station 65+00, Line S-USR20-M; thence southwesterly a distance of 300 feet along a line measured at right angles to said Line S-USR20-M to a point 150 feet to the left of Station 65+00 on Line S-USR20-M; thence southerly and southwesterly along the limited access right-of-way line of the southeast ramp of the U.S. 31 Bypass to a point being 170 feet to the right of Station 35+00 on Line M at the centerline of the U.S. 31 Bypass; thence westerly a distance of 320 feet to a point 150 feet to the left of Station 35+00 on said Line M; thence northerly and northwesterly along the limited access right- of-way line of the southwest ramp of said U.S. 31 Bypass to a point at Station 34+00 Line S-USR20-M in the limited access right-of-way line of the southwest ramp of said U.S. 31 Bypass, which point is 130 feet southwesterly measured at right angles from said Line S-USR20-M; thence northeasterly a distance of 250 feet measured at right angles to said Line S-USR20-M to a point at Station 34+00 on Line S-USR20-M, and being 120 feet measured at right angles, northeasterly from said Line; thence easterly and northerly along the limited access right-of-way line of said northwest ramp of the U.S. 31 Bypass to a point, 79.36 feet south of the north 1/4 post of said Section 31; thence north along the north-south quarter line of said Section 31, 79.36 feet to the north 1/4 post of said Section 31; thence north along the north-south quarter line of Section 30 to the north 1/4 comer of Section 30; thence continuing north along the north-south centerline of Section 19, to the intersection with the south boundary line of Olive Road Commerce Park Subdivision; thence westerly along said south line to the intersection of the east line of Wells Electronic Minor Subdivision; thence south along said east line, extended 40 feet to the south right-of- way line of Cleveland Road; thence west along said south right-of-way line to the west right-of-way line, extended of Olive Road; thence north 89°53'13" west along the south line of Cleveland Road and its easterly extension, 1075.83 feet, more or less, to the west line of Section 19; thence north along the west line of Section 19 to a point on the west line of Lot 1 in the plat of Gibbs' Olive Road Minor Subdivision as the same is recorded as instrument number 0028450 in the office of the Recorder of St. Joseph County, Indiana, said point being 114.58 feet south 00°11'35" west (Rec. south 00°11'18" west) from the northwest comer of said Lot 1; thence north 89°19'02" west, 2674.83 feet, more or less, to the north-south centerline of said Section 24; thence north 00°08'51" east, along said north-south centerline, a distance of 1603.00 feet, more or less, to the point of Tax Abatement Ordinance Page 3 intersection with the northerly right-of-way line of the Indiana East-West Toll Road; thence north 89°20'23" east, along said northerly right-of-way line, a distance of 3795.28 feet, more or less to the point of intersection of said northerly right-of-way line with the east right-of-way line of Olive Road; thence north along the east right-of-way line of Olive Road and the east right-of-way line Olive Road extended to its intersection with the northerly right-of-way line of Brick Road; thence easterly and northerly along the northerly right-of-way line of Brick Road and the westerly right-of-way line of the U.S. 31 Bypass to a point 430 feet east of the half section line of Section 18; thence north parallel with the west section line of Section 18 to the east-west centerline of said Section 18; thence continuing easterly along the east-west centerline of said Section 18, to the intersection with the east line of said Section 18, said intersection also being the northwest comer of the southwest 1/4 of Section 17; thence south 89°31'43" east (this and the next 10 courses and bearings are based on the east line of the southwest quarter of said Section 17, said line having an assumed bearing of north 00°00'00" east) along the north line of said southwest 1/4, a distance of 1303.80 feet to the northeast comer of the west 1/2 of said southwest 1/4; thence south 00°03'49" west along the east line of the west 1/2 of said southwest 1/4 a distance of 2465.70 feet to a point which is north 00°03'49" east a distance of 200.00 feet from the southeast comer of the west 1/2 of said southwest 1/4; thence north 89°39'06" west, parallel with the south line of said southwest 1/4 a distance of 400.00 feet; thence south 00°03'49" west, parallel with the east line of the west 112 of said southwest 1/4, a distance of 200.00 feet to the south line of said southwest 1I4; thence north 89°39'06" west, along said south line a distance of 375.75 feet; thence north 00°22'38" east, a distance of 205.00 feet; thence north 89°39'06" west, parallel with said south line a distance of 138.00 feet; thence south 00°22'38" west, a distance of 205.00 feet to said south line; thence north 89°39'06" west along said south line a distance of 60.00 feet; thence north 00°22'38" east, a distance of 200.00 feet; thence north 89°39'06" west, parallel with said south line, a distance of 330.00 feet to the west line of said southwest 1/4; thence southerly along said west line to the southwest comer of said Section 17, also being the northwest comer of Section 20; thence southerly along the west line of Section 20, to the south right-of-way line of Brick Road; thence due east along the south right- of-way line of Brick Road a distance of 346.64 feet; thence due south a distance of 150.35 feet to a point on the northerly right-of-way line of the new Cleveland Road, said point being 170.85 feet south of and 346.64 feet east of the northwest comer of said Section 20; thence southeasterly along said northerly right-of-way line of the new Cleveland Road to the point of intersection with the east line of the west 1/2 of the west 1/2 of the northwest 1/4 of said Section 20; thence due north along said east tine to the intersection with the south right-of-way line of Brick Road; thence due east along said south right-of-way line of Brick Road to a point being due west and 200 feet from the east line of the northwest 1/4 of the northwest 114 of said Section 20; thence due south 220 feet; thence due east 200.00 feet to the east line of the northwest 1/4 of the northwest 1/4 of said Section 20; thence due north a distance of 220 feet to the south right-of- way line of Brick Road; thence east along the south right-of-way line of Brick Road to a point of intersection with the west right-of-way line of Mayflower Road; thence due north 20 feet, more or less, to the centerline of Tax Abatement Ordinance Page 4 Brick Road; thence east 30 feet, more or less, along said centerline of Brick Road to a point of intersection with the centerline of Mayflower Road; thence east along said centerline of Brick Road to a point that is 420 feet west of the point of intersection between said centerline and the east line of the west half of the northeast quarter of Section 20; thence south 750 feet parallel with the west line of the High Meadows Estates Subdivision; thence east 420 feet to the west line of said subdivision, said west line being the east line of the west half of the northeast quarter of Section 20; thence south along the west line of said subdivision to the southwest comer of Lot 35 of the High Meadows Estates Subdivision; thence east along the south line of the High Meadows Estates Subdivision and the Hartman &DeMaegt Subdivision to the southeast comer of Lot 8 of the Hartman &DeMaegt Subdivision; thence east along the south line of the Hartman &DeMaegt Subdivision, extended east, to a point that is 138.48 feet west of the east line of the west half of the northwest quarter of Section 21; thence north 465 feet, more or less; thence east 138.48 feet; thence north 530 feet to the centerline of Brick Road; thence east 661.02 feet along said centerline; thence south 1280 feet, more or less; thence east 661.02 feet to the west line of Toll Road Industrial Park Subdivision, also being the north-south centerline of Section 21; thence north along said west line of Toll Road Industrial Park a distance of 685.077 feet to the northwest comer of Outlot 7C of said Tol! Road Industrial Park, Section 7; thence north 88°53'36" east, 1327.59 feet to the northeast comer of Lot 11 of the Toll Road Industrial Park, Section 6; thence south 00°56'57" east, 366.66 feet to the north line of Lot 14, Section 6, of the Toll Road Industrial Park; thence easterly a distance of 1322.97 feet along the north line of Lot 14 and Lot 15 of said Section 6 to the east line of said Lot 15, also being the east line of Section 21; thence along the said east line south 00°45'45" east a distance of 1590.77 feet to the east quarter post of said Section; thence south 01°00'44" east along the east line of said Section, 585.04 feet; thence north 89°44'31" east a distance of 1219.94 feet to the centerline of Portage Road; thence south 21°44'25" east along said centerline a distance of 292.53 feet; thence north 01°02'54" west along the east line of the west half of the southwest quarter of said Section 22, to the east-west centerline of said Section 22; thence east along the east-west centerline of said Section 22 to the center of said Section 22; thence south along the north-south centerline of said Section 22 to a point 214.50 feet north of the south 1/4 comer of said Section 22; thence west, parallel with the south line of said Section 22, a distance of 99.00 feet; thence south, paralle{ with said north-south centerline of Section 22, a distance of 214.50 feet to the south line of said Section 22; thence east along said south line of Section 22, a distance of 99.00 feet to the south 1/4 comer of said Section 22 (also being the north 1/4 comer of Section 27); thence south along the north-south centerline of said Section 27 to the south right-of-way line of the east-west Indiana Toll Road; thence west and northwest along the southerly right-of-way line of said east-west Indiana To11 Road to the intersection with the east right-of- way line of Maple Road; thence southwest and southerly along the east line of said Maple Road and Bendix Drive to the Point of Beginning. b. A parcel of land being in the southwest quarter of Section 19, Township 38 North, Range 2 East, German Township, St. Joseph County, Indiana, more particularly described as follows: Tax Abatement Ordinance Page 5 Beginning at the southwest comer of Section 19, Township 38 North, Range 2 East, the Point of Beginning ("Point of Beginning") for this description; thence northerly 2,855.36 feet to a point, said point being the intersection of the westerly line of said section and the centerline of the Indiana East-West Toll Road; thence easterly along the centerline of said Toll Road 1,019.36 feet to a point, said point being the intersection of Olive Road and said Toll Road; thence southerly along the centerline of Olive Road 1,416.28 feet; thence easterly 20 feet to the easterly right-of-way line of Olive Road and place of beginning; thence easterly 180 feet to a point; thence southerly 120 feet to a point; thence westerly 180 feet to a point; thence northerly 120 feet to the Point of Beginning. 2. "Available For Use" means publicly advertised at rates not to exceed Section 8 Rental Guidelines for the unit size. 3. "Central Business District" and "CBD" mean the area located within the City's corporate boundaries designated by the following legal description. Beginning at the intersection of the south right-of-way line of Monroe Street and the west right-af-way line of Main Street, the Point of Beginning ("Point of Beginning") for this description; thence north along said west right-of-way line to the south right-of-way line of Wayne Street; thence west along said south right-of-way line to its intersection with the projected centerline of the first fourteen-foot alley west of Lafayette Boulevard; thence north along said centerline of the said alley and its projection, also known as St. James Court, to its intersection with the north right-of-way line of LaSalle Street; thence east along said north right-of-way line to its intersection with the west right-of-way line of Michigan Street; thence south along said west right-of-way line to its intersection with the south right-of-way fine of Colfax Avenue; thence east along said south right-of-way line to its intersection with the west right-of-way line of St. Joseph Street; thence south and southwesterly along said west right-of-way line to its intersection with the south right-of-way line of Monroe Street; thence west along said south right- of-way line to the Point of Beginning. 4. "City" means the City of South Bend, Indiana. 5. "City Clerk" means the City Clerk of the City of South Bend, Indiana. 6. "Council" means the Common Council of the City of South Bend, Indiana. 7. "Designating Body" means the Common Council of the City of South Bend, Indiana. 8. "Community and Economic Development Department" means the Community and Economic Development Department of the City of South Bend, Indiana. 9. "County Assessor" means the Assessor of St. Joseph County, Indiana 10. "County Auditor" means the Auditor of St. Joseph County, Indiana Tax Abatement Ordinance Page 6 11. "East Bank Development Area" and "EBDA" mean the area located within the City's corporate boundaries designated by the following legal description. Beginning at the intersection of the south right-of-way line of Jefferson Boulevard and the east right-of-way line of Hill Street, the Point of Beginning ("Point of Beginning") for this description; thence west along said south right-of-way line to the projected centerline of the St. Joseph River; thence meandering northwesterly, northeasterly and north along said centerline to the westerly projection of the south right-of-way of Corby Street; thence east along said projection and the south right-of-way line of said Corby Street to the centerline of the first fourteen foot alley lying west of Hill Street; thence south along said centerline to the north right-of-way line of Crescent Avenue; thence southeasterly to the point of intersection of the south right-of-way line of said Crescent Avenue with the centerline of the first fourteen foot alley lying west of said Hill Street; thence southeasterly, southwesterly and south along the centerline of said alley to the centerline of the first fourteen foot alley lying north of Cedar Street; thence east along said centerline to the centerline of the first fourteen foot alley lying east of Hill Street; thence south along said centerline to the south right-of-way line of Jefferson Boulevard; thence west along said right-of- way line back to the Point of Beginning. 12. "Economic Development Target Areas" and "EDTA" mean the areas located within the City's corporate boundaries which have been designated by the Economic Development Commission according to the legal descriptions set forth below. A maximum of fifteen percent (15%) of the total geographic territory of the City may be designated as Economic Development Target Areas. a. The area commonly known as the South Bend Central Development Area, a parcel of land being a part of the City of South Bend, Portage Township, St. Joseph County, Indiana, more particularly described as follows: Beginning at the point of intersection of the south right-of-way line of Sample Street with the west right-of-way line of Michigan Street, the Point of Beginning ("Point of Beginning") for this description; thence north along said west right of-way line of Michigan Street to its intersection with the northerly line of the Conrail Railroad (formerly Penn Central) right-of-way; thence northwesterly along said northerly railroad right-of-way line to its intersection with the southerly projection of the west right-of-way line of Taylor Street; thence north along said west right-of-way line to its intersection with the westerly projection of the north right-of-way line of Monroe Street; thence east along said projection and the north right-of-way line of said Monroe Street to its intersection with the southerly projection of the centerline of the first 14-foot alley lying west of Lafayette Boulevard; thence north along said projection and the centerline of said 14-foot alley to the south right-of-way line of Washington Street; thence west along said south right-of-way line to the east right-of-way line of William Street; thence north along said east right-of-way line to the north right-of-way line of Colfax Avenue; thence east along said north right-of-way line to the centerline of the first 14-foot alley lying west of Lafayette Boulevard; thence north along said centerline, in certain places being sometimes known as St. James Court, to the north right-of-way line of LaSalle Street; thence east along Tax Abatement Ordinance Page 7 said north right-of-way line to the west right-of-way line of Michigan Street; thence north along said west right-of-way line to the westerly projection of the north line of Lot 111 in the Original Plat to the Town, now City of South Bend; thence east along said projection, the north line of said lot 111 and its easterly projection to the centerline of the St. Joseph River; thence meandering northeasterly and northwesterly along said centerline to the westerly projection of the south right-of-way line of Corby Street; thence east along said projection and the south right-of-way line of said Corby Street to the centerline of the first 14-foot alley lying west of Hill Street; thence south along said centerline to the north right-of-way line of Crescent Avenue; thence southeasterly to the point of intersection of the south right- of-way line of said Crescent Avenue with the centerline of the first 14-foot alley lying west of said Hill Street; thence southeasterly, southwesterly and south along the centerline of said alley to the centerline of the first 14-foot alley lying north of Cedar Street; thence east along said centerline to the centerline of the first 14-foot alley lying east of Hill Street; thence south along said centerline to the south right-of-way line of Jefferson Boulevard; thence west along said south right-of-way line to the centerline of the St. Joseph River; thence southeasterly along said centerline to the easterly projection of the southerly right-of-way line of Monroe Street; thence southwesterly along said projection and the southerly right-of-way line of Monroe Street to the easterly right-of-way line of Lincolnway East (U.S. Highway No. 33); thence southeasterly along said easterly right-of-way line to the south right-of-way line of Sample Street; thence west along said south right-of-way line to the Point of Beginning. b., c. Reserved. d. The area commonly known as 2920 W. Sample Street. e. The Area commonly known as 328 North Michigan Street, more particularly described as follows: (1) Lot Numbered One Hundred Thirteen (113), as shown on the recorded Original Plat of the Town, now City of South Bend, in St. Joseph County, Indiana, excepting therefrom a tract of land one (1) inch in width, north and south, taken off of and from the entire length of the south side thereof. (2) Lot Numbered One Hundred Fourteen (114), and a lot or parcel of land ten (10) feet in width, north and south, taken off of and from the entire length of the south side of Lot Numbered One Hundred Fifteen (115), as shown on the recorded Original Plat of the Town, now City of South Bend, in St. Joseph County, Indiana. Two parcels of land being parts of the City of South Bend, Portage Township, St. Joseph County, Indiana, and being more particularly described as follows: (1) Beginning at the intersection of the southeasterly right-of-way line of the Chicago, Indiana, and Southern Railroad and the first alley north of Lincolnway West, extended, in said City, the Point of Beginning Tax Abatement Ordinance Page 8 ("Point of Beginning") for this description; thence southeasterly, south and east along said alley, including Lot 11 of the Augustine Addition, to its intersection with the centerline of Blaine Avenue; thence south along said centerline to its intersection with the centerline of Lindsey Avenue; thence east along said centerline to its intersection with the centerline of Allen Street; thence south along said centerline to its intersection with the first alley north of Lincolnway West; thence south and east along said alley to its intersection with the centerline of Cushing Street; thence south along said centerline to its intersection with the south boundary of Jas. Kent's Subdivision of Bank Outlot 114 and part of 113; thence northeasterly along said boundary and continuing along the south boundary of Bun-ough's Subdivision of Outlot 115 to its intersection with the first alley west of Portage Avenue; thence northwesterly along said alley, extended, including Lot 1,2,3,8,9, and 10 of the St. Joseph County Agricultural Society Addition, Lots 24, 23, 22, 16, and 15 of the Studebaker Brothers Subdivision, Lot 129 of Cushing and Lindsey's Addition Lot 1 of the Muessel First Addition, Lots 151 and 152 of the Muessel Third Addition, and Lots 406, 407, 408, 409, 410, 411, 398, 397, 372, 373, and 374 of Vassar Park, and excluding Lots 36, 37, and 38 of the Muessel First Addition, to its intersection with the northwesterly right- of-way line of the Chicago, Indiana, and Southern Railroad; thence southwesterly along said right-of-way line to its intersection with the west boundary of a tract of land conveyed to Charles D. Derr by a deed recorded in Deed Record Number 8312224 in the office of the Recorder of St. Joseph County, Indiana; thence north and west along said boundary, extended, to its intersection with the first alley north of Elwood Avenue, extended; thence East along said alley, extended, to its intersection with the first alley east of Portage Avenue; thence south and southeasterly along said alley, extended, including a tract of land conveyed to Charles B. and Elinor K. Burkhart by a deed recorded in Deed Record 647 Pg. 392 in the office of the Recorder of St. Joseph County, Indiana, a tract of land conveyed to Laurence D. and Dorothy L. Jones by a deed recorded in Deed Record Number 8015987 in the office of the Recorder of St. Joseph County, Lot 143 of Portage Park Lot 18 of the Chapin Place First Plat, and Lots 3 and 2 of the C. Fassnacht Addition, to its intersection with the south boundary of Burrough's Subdivision of Outlot 115; thence northeasterly along said boundary and continuing east along the first alley north of Marion Street to its intersection with the centerline of St. Joseph Street; thence south along said centerline to its intersection with the centerline of Marion Street; thence east along said centerline, extended, to its intersection with the centerline of the St. Joseph River; thence northerly along said centerline of the St. Joseph River; thence northerly along said centerline to its intersection with the first alley south of Corby Street, extended; thence east along said alley to its intersection with the first alley west ~of Hill Street; thence south along said alley, extended, to its intersection with the first alley south of Kalorama Street; thence east along said alley to its intersection with the first alley east of Hill Street; thence south along said alley to its intersection with the centerline of Jefferson Boulevard; thence west along said centerline to its intersection with the centerline of the St. Tax Abatement Ordinance Page 9 Joseph River; thence southeasterly along said centerline to its intersection with the first alley, east of Miami Street, extended; thence southerly along said alley, extended, including Lots 26, 25, 24, 23, 22, and 21 of Jacob Leer's survey, to its intersection with the centerline of Oak Park Court; thence west along said centerline to its intersection with the centerline of Miami Street; thence south along said centerline to its intersection with the centerline of Dubail Avenue; thence west along said centerline to its intersection with the first alley west of Miami Street; thence north along said alley to its intersection with the centerline of Pennsylvania Avenue; thence east along said centerline to its intersection with the centerline of Miami Street; thence north along said centerline to its intersection with the centerline of Brook Street; thence northwesterly along said centerline to its intersection with the west boundary of Wenger and Kreighbaum's Vistula Avenue Addition; thence north and northwesterly along said boundary to its intersection with the northwesterly right-of-way line of the Grand Trunk Western Railroad; thence west and northwesterly along said right-of- way line to its intersection with the first alley south of Sample Street; thence west along said alley, extended, to its intersection with the centerline of Carroll Street; thence south along said centerline to its intersection with the centerline of Ohio Street; thence west along said centerline to its intersection with the first alley east of Michigan Street; thence south along said alley, extended, including Lots G and H of Elder Place, to its intersection with the centerline of Ewing Avenue; thence west along said centerline to its intersection with the east right- of-way line of the Pennsylvania Railroad; thence north along said right-of-way line to its intersection with the first alley south of Indiana Avenue, extended; thence west along said alley, extended, including Lots 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24 of Creed's Second Addition, Lots 55, 56, and 57 of Stull's Fourth Addition, and Lot A of Raffs Fourth Addition, to its intersection with the centerline of Catalpa Avenue; thence south along said centerline to its intersection with the centerline of Dubail Avenue; thence west along said centerline to its intersection with the first alley west of Prairie Avenue, extended; thence north and northeasterly along said alley, extended, including Lots A and B of the Basil Rupel Addition, and continuing north along the centerline of McPherson Street, extended, to its intersection with the centerline of Garst Street, extended; thence east along said centerline, extended, to its intersection with the centerline of Chapin Street; thence north along said centerline to its intersection with the centerline of Prairie Avenue; thence east and northeasterly along said centerline to its intersection with the centerline of South Street; thence east along said centerline to its intersection with the first alley west of William Street; thence north along said alley, extended, including the eastern half of State Bank Outlots 24, 22, and 15 and Lot 4 of William Miller's Subdivision of Bank Outlots 8 and 9, to its intersection with the first alley southwest of Lincolnway West, extended; thence northwesterly along said alley, extended, including Lots 6, 4, 2, and 1 of the Horatio Chapin Subdivision of Bank Outlots 1 and 2, Lots 14, 13, 12, and 11 of the Rebecca Studebaker Subdivision, Lots 1 and 14 of the G. Rush Subdivision, Lots 1 and 11 of Heintzman's Addition, the Colfax School, Lot 46 of the Pleasant Tax Abatement Ordinance Page 10 Home Addition, and Lots 4, 3, 2, 1, and 7 of the Meass Addition, to its intersection with the centerline of Rupel Street; thence west along said centerline to its intersection with the southeasterly right-of-way line of the Chicago, Indiana, and Southern Railroad; thence northeasterly along said right-of-way line to its intersection with the first alley north of Lincolnway West, extended, which is the Point of Beginning. (2) Beginning at the intersection of the centerline of Sheridan Street and the first alley north of Westem Avenue, extended, in said City, the Paint of Beginning ("Point of Beginning") for this description; thence east along said alley, extended, to its intersection with the first alley east of Meade Street; thence north along said alley to its intersection with the first alley north of Washington Street, extended; thence east along said alley, extended, including Lots 2, 3, 4, 5, and 6 of Kaley's Second Subdivision and Lots 112, 113, 122, 123, 124, 132, 133, and 134 of Oak Grove's First Addition, to its intersection with the centerline of O'Brien Street; thence south along said centerline to its intersection with the centerline of Washington Avenue; thence east along said centerline to its intersection with the centerline of Brookfield Street; thence north along said centerline to its intersection with the centerline of Colfax Avenue; thence east along said centerline, extended, to its intersection with the centerline of Adams Street; thence south along said centerline to its intersection with the centerline of Liston Street; thence east along said centerline to its intersection with the first alley east of Circle Avenue; thence south along said alley to its intersection with the first alley north of Washington Avenue; thence east along said alley to its intersection with the centerline of Birdsell Avenue; thence north along said centerline to its intersection with the first alley north of Colfax Avenue; thence east along said alley to its intersection with the centerline of Studebaker Street; thence north along said centerline to its intersection with the centerline of Hine Street; thence east along said centerline and continuing along the first alley north of Colfax Avenue to its intersection with the centerline of LaSalle Avenue; thence northeasterly along said centerline to its intersection with the first alley north of Colfax Avenue; thence east and northeasterly along said alley to its intersection with the centerline of LaPorte Avenue; thence southeasterly along said centerline to its intersection with the centerline of Laurel Street, extended; thence south along said centerline, extended, to its intersection with the first alley south of Washington Avenue; thence west along said alley to its intersection with the centerline of Cheny Street; thence south along said centerline, extended, to its intersection with the northeasterly right-of- way line of the New York Central Railroad; thence southeasterly along said right-of-way line to its intersection with the centerline of Walnut Street; thence north along said centerline to its intersection with the first alley north of Westem Avenue; thence east along said alley to its intersection with the first fourteen (14) foot alley west of Laurel Street; thence north along said alley, extended, to its intersection with the centerline of Jefferson Boulevard; thence east along said centerline to its intersection with the centerline of laurel Street; thence north along Tax Abatement Ordinance Page 11 said centerline to its intersection with the line 159.72 feet north of and para11e1 to the north right-of-way line of Jefferson Boulevard; thence east along said line to its intersection with the centerline of Scott Street; thence south along said centerline to its intersection with the centerline of Western Avenue; thence west along said centerline to its intersection with the centerline of Chapin Street; thence south along said centerline to its intersection with the first alley south of Westem Avenue; thence west along said alley, extended, including a tract of land conveyed to Michiana Marlin Swim Club, Inc. by a deed recorded on Deed Record number 8400928 in the office of the Recorder of St. Joseph County, Indiana, and the Benjamin Harrison School, to its intersection with the centerline of Sheridan Street; thence north along said centerline to its intersection with the first alley north of Westem Avenue, extended, which is the Point of Beginning. g. The area commonly known as 2211 East Jefferson Blvd., South Bend, Indiana 46615, more particularly described as follows: (1) TRACT A. A tract of land 500 feet in width north and south taken off of and from the entire south end of Lots Numbered 11, 12, 13, and 14, all as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend, reserving an easement on and over the east 50 feet of the north 81 feet of the above tract of land for purposes of ingress and egress to and from Lots 11, 12, 13, and 14 all as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend. (2) TRACT B. Lots Numbered 11, 12, 13 and 14 as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend, excepting therefrom a tract of land 500 feet in width north and south taken off of and from the entire south end thereof; together with an easement for purposes of ingress to and egress from the foregoing tract from and onto Marshall Street, on and over the east 50 feet of the north 81 feet of the south 500 feet of Lot 14 as shown on the recorded Plat of Jefferson Heights Addition to the City of South Bend. (Ord. No. 7267-83; Ord. No. 7500-85; § 2; Ord. No. 7506-85, § 4; Ord. No. 7577-85, § 3; Ord. No. 7598-86, § 3; Ord. No. 7611-86, § 4) 13. "Economic Revitalization Area" and "ERA" have the meaning set forth in I.C. 6- 1.1-12.1-1 et seq. 14. "Hard-dollar Costs" means expenses directly related to the proposed new construction or Rehabilitation excluding costs of land, financing, architect, engineering, and attorney fees. 15. "Industrial Development" means and includes the economic activities described in major groups 31 through 33 of the North American Industry Classification System-United States, 2002 manual published by the United States Office of Management and Budget's Economic Classification Policy Committee, which manual is hereby incorporated by reference, with copies being maintained in the Office of the City Clerk. Tax Abatement Ordinance Page 12 16. "Institutional Development" means the development of day care or educational facilities. 17. "Local Company" means a legal entity that the Council deems to have an existing substantial place of business located in St. Joseph County. 18. "Low And Moderate Income Individuals Or Families" means those persons who qualify under the Department of Housing and Urban Development, Section 8 income requirements. 19. "Minority" means: a. Black (i.e., all persons having origins in any of the Black African racial groups not of Hispanic origin); b. Hispanic (i.e., all persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin, regardless of race); c. Asian and Pacific Islander (i.e., all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); d. American Indian or Alaskan Native (i.e., all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification); 20. "Mixed Use" means any mix of two (2) or more of the following uses only: Office, Retail, multi-family housing, or hotel uses. 21. "New Manufacturing Equipment" has the meaning set forth in I.C. 6-1.1-12.1-1 et seq. 22. "Property" has the meaning set forth in I.C. 6-1.1-12.1-1 of seq. 23. "Redevelopment" has the meaning set forth in I.C. 6-1.1-12.1-1 et seq. 24. "Redevelopment Blighted Area" and "RBA" mean real Property meeting the standards set forth in I.C. 36-7-14.1 et seq. 25. "Rehabilitation" has the meaning set forth in I.C. 6-1.1-12.1-1 et seq. 26. "Related Party" means any person who is related within the meaning of Section 267 of the Internal Revenue Code (i.e., United States Code Title 26, Subtitle A, Chapter 1, Subchapter B, Part IX, Section 267). 27. "Residentially Distressed Area" and "RDA" mean an area that meets any of the following findings as declared by the Council: a. The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings or multifamily dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or Tax Abatement Ordinance Page 13 b. Any dwellings in the area are not permanently occupied and are: (1) The subject of an order issued under I.C. 36-7-9; or (2) Evidencing significant building deficiencies; or c. Parcels of Property in the area: (1) Have been sold and not redeemed under I.C. 6-1.1-24 and I.C. 6-1.1- 25; or (2) Are owned by a unit of local government; or (3) A significant number of dwellings within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or (4) A significant number of dwelling units within the area are: (a) The subject of an order issued under I.C. 36-7-9; or (b) Evidencing significant building deficiencies; or (5) The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the area is owned by Indiana or the United States; or (6) The area (plus any areas previously designated under this subsection) will not exceed ten percent (10%) of the total area within the Council's jurisdiction. 28. "Retail" means and includes the economic activities described in major groups 44 through 45 of the Norfh American Industry Classification System--United States, 2002 manual published by the United States Office of Management and Budget's Economic Classification Policy Committee, which manual is hereby incorporated by reference, with copies being maintained in the Office of the City Clerk. 29. "Tax Abatement Impact Areas" and "TAIA" mean the areas located within the City's corporate boundaries designated by the following legal description: a. The area commonly known as the South Bend Central Development Area, a parcel of land being a part of the City of South Bend, Portage Township, St. Joseph County, Indiana, and being more particularly described as follows: Beginning at the point of intersection of the south right-of-way line of Sample Street with the west right-of-way line of Michigan Street, the Point of Beginning ("Point of Beginning") for this description; thence north along said west right-of-way line of Michigan Street to its intersection with the northerly line of the Conrail Railroad (formerly Penn Central) right-of-way; thence northwesterly along said northerly railroad right-of-way fine to its intersection with the southerly projection of the west right-of-way line of Tax Abatement Ordinance Page 14 Taylor Street; thence north along said west right-of-way line to its intersection with the westerly projection of the north right-of-way line of Monroe Street; thence east along said projection and the north right-of-way line of said Monroe Street to its intersection with the southerly projection of the centerline of the first 14-foot alley lying west of Lafayette Boulevard; thence north along said projection and the centerline of said 14-foot alley to the south right-of-way line of Washimt3ton Street; thence west along said south right-of-way line to the east right-of-way line of William Street; thence north along said east right-of-way line to the north right-of-%ray line of Colfax Avenue; thence east along said north right-of-way line to the centerline of the first 14-foot alley lying west of Lafayette Boulevard; thence north along said centerline, in certain places being sometimes known as St. James Court, to the north right-of-way line of LaSalle Street; thence east along said north right-of-way line to the west right-of-way line of Michigan Street; thence north along said west right-of-way line to the westerly projection of the north line of Lot 111 in the Original Plat to the Town, now City of South Bend; thence east along said projection, the north line of said Lot 111 and its easterly projection to the centerline of the St. Joseph River; thence meandering northeasterly and northwesterly along said centerline to the westerly projection of the south right-of-way line.of Corby Street; thence east along said projection and the south right-of-way line of said Corby Street to the centerline of the first 14-foot alley lying west of Hill Street; thence south along said centerline to the north right-of-way line of Crescent Avenue; thence southeasterly to the point of intersection of the south right- of-way line of said Crescent Avenue with the centerline of the first 14-foot alley lying west of said Hill Street; thence southeasterly, southwesterly and south along the centerline of said alley to the centerline of the first 14-foot alley lying north of Cedar Street; thence east along said centerline to the centerline of the first 14-foot alley lying east of Hill Street; thence south along said centerline to the south right of-way line of Jefferson Boulevard; thence west along said south right-of-way line to the centerline of the St. Joseph River; thence southeasterly along said centerline to the easterly projection of the southerly right-of-way line of Monroe Street; thence southwesterly along said projection and the southerly right-of-way line of Monroe Street to the easterly right-of-way line of Lincolnway East (U.S. Highway No. 33); thence southeasterly along said easterly right-of-way line to the south right-of-way line of Sample Street; thence west along said south right-of-way line to the Paint of Beginning. b., c. Reserved. d. The Area commonly known as 328 North Michigan Street, more particularly described as follows: (1) Lot Numbered One Hundred Thirteen (113), as shown on the recorded Original Plat of the Town, now City of South Bend, in St. Joseph County, Indiana, excepting therefrom a tract of land one (1) inch in width, north and south, taken off of and from the entire length of the south side thereof. (2) Lot Numbered One Hundred Fourteen (114), and a lot or parcel of land ten (10) feet in width, north and south, taken off of and from the Tax Abatement Ordinance Page 15 entire length of the south side of Lot Numbered One Hundred Fifteen (115), as shown on the recorded Original Plat of the Town, now City of South Bend, in St. Joseph County, Indiana. e. Two parcels of land being parts of the City of South Bend, Portage Township, St. Joseph County, Indiana, and being more particularly described as follows: (1) Beginning at the intersection of the southeasterly right-of-way line of the Chicago, Indiana, and Southern Railroad and the first alley north of Lincolnway West, extended, in said City, the Point of Beginning ("Point of Beginning") for this description; thence southeasterly, south and east along said alley, including Lot 11 of the Augustine Addition, to its intersection with the centerline of Blaine Avenue; thence south along said centerline to its intersection with the centerline of Lindsey Avenue; thence east along said centerline to its intersection with the centerline of Allen Street; thence south along said centerline to its intersection with the first alley north of Lincolnway West; thence south and east along said alley to its intersection with the centerline of Cushing Street; thence south along said centerline to its intersection with the south boundary of Jas. Kent's Subdivision of Bank Outlot 114 and part of 113; thence northeasterly along said boundary and continuing along the south boundary of Burrough's Subdivision of Outlot 115 to its intersection with the first alley west of Portage Avenue; thence northwesterly along said alley, extended, including Lot 1,2,3,8,9, and 10 of the St. Joseph County Agricultural Society Addition, Lots 24, 23, 22, 16, and 15 of the Studebaker Brothers Subdivision, Lot 129 of Cushing and Lindsey's Addition Lot 1 of the Muessel First Addition, Lots 151 and 152 of the Muessel Third Addition, and Lots 406, 407, 408, 409, 410, 411, 398, 397, 372, 373, and 374 of Vassar Park, and excluding Lots 36, 37, and 38 of the Muessel First Addition, to its intersection with the northwesterly right- of-way line of the Chicago, Indiana, and Southem Railroad; thence southwesterly along said right-of-way line to its intersection with the west boundary of a tract of land conveyed to Charles D. Derr by a deed recorded in Deed Record Number 8312224 in the office of the Recorder of St. Joseph County, Indiana; thence west along said boundary, extended, to its intersection with the first alley east of Wilbur Street; thence north to its intersection with the first alley north of Elwood Avenue, extended; thence East along said alley, extended, to its intersection with the first alley east of Portage Avenue; thence south and southeasterly along said alley, extended, including a tract of land conveyed to Charles B. and Elinor K. Burkhart by a deed recorded in Deed Record 647 Pg. 392 in the office of the Recorder of St. Joseph County, Indiana, a tract of land conveyed to Laurence D. and Dorothy L. Jones by a deed recorded in Deed Record Number 8015987 in the office of the Recorder of St. Joseph county, Lot 143 of Portage Park lot 18 of the Chapin Place First Plat, and Lots 3 and 2 of the C. Fassnacht Addition, to its intersection with the south boundary of Bun'ough's Subdivision of Out Lot 115; thence northeasterly along said boundary and continuing east along the first alley north of Marion Street to its intersection with the centerline of St. Joseph Street; Tax Abatement Ordinance Page 16 thence south along said centerline to its intersection with the centerline of Marion Street; thence east along said centerline, extended, to its intersection with the centerline of the St. Joseph River; thence northerly along said centerline of the St. Joseph River; thence northerly along said centerline to its intersection with the first alley south of Carby Street, extended; thence east along said alley to its intersection with the first alley west of Hill Street; thence south along said alley, extended, to its intersection with the first alley south of Kalorama Street; thence east along said alley to its intersection with the first alley east of Hill Street; thence south along said alley to its intersection with the centerline of Jefferson Boulevard; thence west along said centerline to its intersection with the centerline of the St. Joseph River; thence southeasterly along said centerline to its intersection with the first alley, east of Miami Street, extended; thence southerly along said alley, extended, including Lots 26, 25, 24, 23, 22, and 21 of Jacob Leer's survey, to its intersection with the centerline of Oak Park Court; thence west along said centerline to its intersection with the centerline of Miami Street; thence south along said centerline to its intersection with the centerline of Dubail Avenue; thence west along said centerline to its intersection with the first alley west of Miami Street; thence north along said alley to its intersection with the centerline of Pennsylvania Avenue; thence emit along said centerline to its intersection with the centerline of Miami Street; thence north along said centerline to its intersection with the centerline of Brook Street; thence northwesterly along said centerline to its intersection with the west boundary of Wenger and Kreighbaum's Vistula Avenue Addition; thence north and northwesterly along said boundary to its intersection with the northwesterly right-of-way line of the Grand Trunk Western Railroad; thence west and northwesterly along said right-of- way line to its intersection with the first alley south of Sample Street; thence west along said alley, extended, to its intersection with the centerline of Carroll Street; thence south along said centerline to its intersection with the centerline of Ohio Street; thence west along said centerline to its intersection with the first alley east of Michigan Street; thence south along said alley, extended, including Lots G and H of Elder Place, to its intersection with the centerline of Ewing Avenue; thence west along said centerline to its intersection with the east right- of-way line of the Pennsylvania Railroad; thence north along said right-of-way line to its intersection with the first alley south of Indiana Avenue, extended; thence west along said alley, extended, including Lots 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24 of Creed's Second Addition, Lots 55, 56, and 57 of Stul!'s Fourth Addition, and Lot A of Raffs Fourth Addition, to its intersection with the centerline of Catalpa Avenue; thence south along said centerline to its intersection with the centerline of Dubail Avenue; thence west along said centerline to its intersection with the first alley west of Prairie Avenue, extended; thence north and northeasterly along said alley, extended, including Lots A and B of the Basil Rupel Addition, and continuing north along the centerline of McPherson Street, extended, to its intersection with the centerline of Garst Street, extended; thence east along said centerline, extended, to its intersection with the centerline of Chapin Street; thence north along said centerline to its intersection Tax Abatement Ordinance Page 17 with the centerline of Prairie Avenue; thence east and northeasterly along said centerline to its intersection with the centerline of South Street; thence east along said centerline to its intersection with the first alley west of William Street; thence north along said alley, extended, including the eastern half of State Bank Outlots 24, 22, and 15 and Lot 4 of William Miller's Subdivision of Bank Outlots 8 and 9, to its intersection with the first alley southwest of Lincolnway West, extended; thence northwesterly along said alley, extended, including Lots 6, 4, 2, and 1 of the Horatio Chapin Subdivision of Bank Outlots 1 and 2, Lots 14, 13, 12, and 11 of the Rebecca Studebaker Subdivision, Lots 1 and 14 of the G. Rush Subdivision, Lots 1 and 11 of Heintzman's Addition, the Colfax School, Lot 46 of the Pleasant Home Addition, and Lots 4, 3, 2, 1, and 7 of the Meass Addition, to its intersection with the centerline of Rupel Street; thence west along said centerline to its intersection with the southeasterly right-of-way line of the Chicago, Indiana, and Southern Railroad; thence northeasterly along said right-of-way line to its intersection with the first alley north of Lincolnway West, extended, which is the Point of Beginning. (2) Beginning at the intersection of the centerline of Sheridan Street and the first alley north of Western Avenue, extended, in said City, the Point of Beginning ("Point of Beginning") for this description; thence east along said alley, extended, to its intersection with the first alley east of Meade Street; thence north along said alley to its intersection with the first alley north of Washington Street, extended; thence east along said alley, extended, including Lots 2, 3, 4, 5, and 6 of Kaley's Second Subdivision and Lots 112, 113, 122, 123, 124, 132, 133, and 134 of Oak Grove's First Addition, to its intersection with the centerline of O'Brien Street; thence south along said centerline to its intersection with the centerline of Washington Avenue; thence east along said centerline to its intersection with the centerline of Brookfield Street; thence north along said centerline to its intersection with the centerline of Colfax Avenue; thence east along said centerline, extended, to its intersection with the centerline of Adams Street; thence south along said centerline to its intersection with the centerline of Liston Street; thence east along said centerline to its intersection with the first alley east of Circle Avenue; thence south along said alley to its intersection with the first alley north of Washington Avenue; thence east along said alley to its intersection with the centerline of Birdsell Avenue; thence north along said centerline to its intersection with the first alley north of Colfax Avenue; thence east along said alley to its intersection with the centerline of Studebaker Street; thence north along said centerline to its intersection with the centerline of Hine Street; thence east along said centerline and continuing along the first alley north of Colfax Avenue to its intersection with the centerline of LaSalle Avenue; thence northeasterly along said centerline to its intersection with the first alley north of Colfax Avenue; thence east and northeasterly along said alley to its intersection with the centerline of LaPorte Avenue; thence southeasterly along said centerline to its intersection with the centerline of Laurel Street, extended; thence south along said Tax Abatement Ordinance Page 18 centerline, extended, to its intersection with the first alley south of Washington Avenue; thence west along said alley to its intersection with the centerline of Chapin Street; thence south along said centerline extended, to its intersection with the northeasterly right-of- way line of .the New York Central Railroad; thence southeasterly along said right-of-way line to its intersection with the centerline of Walnut Street; thence north along said centerline to its intersection with the first alley north of Western Avenue; thence east along said alley to its intersection with the first fourteen (14) foot alley west of Laurel Street; thence north along said alley, extended, to its intersection with the centerline of Jefferson Boulevard; thence east along said centerline to its intersection with the centerline of Laurel Street; thence north along said centerline to its intersection with the line 159.72 feet north of and parallel to the north right-of-way line of Jefferson Boulevard; thence east along said line to its intersection with the centerline of Scott Street; thence south along said centerline to its intersection with the centerline of Westem Avenue; thence west along said centerline to its intersection with the centerline of Chapin Street; thence south along said centerline to its intersection with the first alley south of Westem Avenue; thence west along said alley, extended, including a tract of land conveyed to Michiana Marlin Swim Club, Inc. by a deed recorded on Deed Record number 8400928 in the office of the Recorder of St. Joseph County, Indiana, and the Benjamin Harrison School, to its intersection with the centerline of Sheridan Street; thence north along said centerline to its intersection with the first alley north of Westem Avenue, extended, which is the Point of Beginning. 30. 'Tax Increment Allocation Areas" and 'TIAA" have the meaning set forth in I.C. 36-7-14-39(a) 31. "Urban Enterprise Zone" and "UFZ" mean the area located within the City's corporate boundaries designated by the following legal description. Beginning at the northeast comer of Catalpa and Calvert Streets, the Point of Beginning for this description ("Point of Beginning"); thence east along the north line of Calvert St. to the east line of the Conrail RR right-of-way; thence south along the east line of the railroad to the southeast comer of the railroad and Ewing Ave.; thence west along the south line of Ewing Ave. to the east line of the entry drive of the Plant #8 complex; thence south along the entry drive approximately 621 feet; thence west approximately 550' along the south side of the Little League baseball fields; thence following the property lines of Plant #8 south approximately 769.5', west approximately 250', and then south approximately 1194.5' to the north wall of the old AM General plant; thence west, south, east, south and west following the building to the north end of a walkway leading to the IR Building; thence following the west side of the walkway to the north wall of the lR Building; thence following the north, west, south and east walls of the IR Building back to the walkway; thence following the east side of the walkway to another walkway leading to an outside storage area; thence following the south side of the walkway to the storage area; thence following the south side of the storage area to the south end; thence in a Tax Abatement Ordinance Page 19 northeasterly direction approximately 600'; thence north approximately 150'; thence east approximately 130 ; thence northeasterly, north and northwesterly following the east walls of a line of buildings to a driveway; thence east to the east line of the Conrail RR right-of-way; thence south approximately 231' to the north line of Fameman St., extended; thence east to the west line of Main St.; thence north to the north right-of-way line of Donmoyer St.; thence east to the west line of the first north/south alley east of Michigan Ave.; thence north along the alley to the north right-of-way of Ewing St.; thence east to the west line of Fellows St.; thence north to the south line of the first east/west alley north of Ewing; thence west to the west line of Columbia St.; thence north to the north line of the alley south of Bowman St.; thence east to the west line of Fellows St.; thence north to the south line of the alley north of Bowman St.; thence west to the west line of Columbia St.; thence north to the south line of Calvert St.; thence east approximately 120'; thence north approximately 150'; thence east approximately 100' to the west line of Fellows St.; thence north to the north line of the alley south of Dayton St.; thence east to the west line of Marietta St.; thence north to the north line of Dubail St.; thence east to the west line of High St.; thence north to the north line of Broadway Ave.; thence east to the east line, extended, of Dale Ave.; thence north approximately 310'; thence west approximately 250'; thence north approximately 550 ; thence west approximately 89'; thence north approximately 500' to the north line of the railroad right-of-way; thence east and northeasterly to the west line of Lincoln Way; thence northwesterly to the south line of Sample St.; thence west to the east line of High St.; thence south to the south line of the alley north of Pennsylvania Ave.; thence west to the west line of Marietta St.; thence north to the south line of Wenger St.; thence west to the east line of Fellows St.; thence south to the south line of the alley south of Pennsylvania St.; thence west to the west line of Michigan St.; thence north to the north line of the alley south of Sample St.; thence east along the north line of said alley and Ohio St. to the west line of Fellows St.; thence north to the south line of the railroad right-of-way; thence northwesterly to the east line of Michigan St.; thence west along the south line of Bronson St. to the west line of Main St.; thence north to the north line of South St.; thence east to the west line of the alley east of Michigan St.; thence north to the south line of Monroe St.; thence west to the rear lot line of the Siefert Lock and Key property; thence south and east around the Seifert Lock and Key property to the east line of Lafayette St.; thence south to the south line of South St.; thence west to the west line of Taylor St.; thence north to the north fine, extended, of the alley south of Western Ave.; thence east to the west line of William St.; thence north to the north line of Westem Ave.; thence east to the east line of vacated Franklin St.; thence north to the south line Wayne St.; thence west to the west line of William St.; thence north to the south line of Jefferson Blvd.; thence west to the east line of Taylor St.; thence south to the south line of Westem Ave.; thence west to the west line of the alley east of Chapin St.; thence north to the north line of Napier St.; thence east to the west line of Scott St.; thence north to the south line of Jefferson Blvd.; thence west to the east line of Chapin St.; thence south to the south line of Thomas St., extended; thence west to the west line of Laurel St.; thence north to the south line of Washington St.; thence west to the west line, extended, of St. Paul's PI.; thence north to the south line of the alley north of Washington St.; thence west to the west line Tax Abatement Ordinance Page 20 of Walnut St.; thence north along the west line of Walnut St. to the south line of LaPorte Ave.; thence east to the west line of Walnut St., also being the northwest comer of Walnut St. and LaPorte Ave.; thence in a northeasterly direction along the west line of Walnut St. to the north line of Lincoln Way (US 20); thence in a northwesterly direction along the north line of Lincoln Way to the east line of Olive St.; thence south along said east line to the south line of Roger St.; thence west along said line to the east line of Meade St.; thence south along said line to the south line of Bertrand Dr.; thence west along said line to the west line of Goodland Ave.; thence north along said west line to the south line of Ardmore Trail; thence in a southwesterly direction along said south line to the west line, extended, of Woodland Ave.; thence south along said west line extended, and parallel to the east line of Fairview Ave. to the north line of the C.S.S. & S.B. railroad; thence east and southeasterly along said north line to the east line, extended, of the first alley east of Meade St.; thence south along said line extended and the east line of said alley to the north line of the first east/west alley south of Western Ave.; thence east to the east line of Brookfield St.; thence south to the north right-of-way line of the railroad; thence northeasterly to the east line, extended, of the alley east of Kosciuszko St.; thence south to the south right-of-way line of the railroad; thence southwesterly to the north line of Sample St.; thence east to the east line of Grant St.; thence south approximately 700 ; thence west approximately 1,050' to the east line of Olive St.; thence south to the north line of Tucker St.; thence west to the west line of Kaley St.; thence north to the south right-of-way line of the railroad; thence southwesterly approximately 1,450'; thence north to the north right-of-way line of the railroad; thence northeasterly to the west line of Meade St., also being the south line of Sample St.; thence west to the west line, extended, of Bendix St.; thence north to the south line of the alley north of Sample St.; thence west to the east line of the alley west of Albert St.; thence south to the south line of Meadow Ln., extended; thence east to the east line of Sheridan Ave.; thence south approximately 100 ; thence east to the centerline of the Grand Trunk Westem railroad right-of-way; thence south to the north right-of-way line of the Penn Central railroad; thence east to the west line, extended, of Kaley St.; thence south to the north line of the N.J.I. & I. railroad right-of-way; thence east approximately 650'; thence north approximately 200 ; thence east approximately 200'; thence north approximately 50 ; thence east approximately 350'; thence north approximately 50'; thence east approximately 150' to the west line of Olive St.; thence north to the north right-of-way of the N.J.I. & I. railroad; thence east following the north right-of-way line of the railroad to the east line of Kemble St.; thence south to the north line of Dubail St.; thence east to the east line of Catalpa St.; thence south to the north line of Calvert St., being the Point of Beginning for this description. 32. "Warehouse Development" means and includes the economic activities described in major groups 421, 422, and 493 of the North American Industry Classification System-United States, 2002 manual published by the United States Office of Management and Budget's Economic Classification Policy Committee, which manual is hereby incorporated by reference with copies being maintained in the Office of the City Clerk. Tax Abatement Ordinance Page 21 33. "Workforce Development Services" and "WDS" mean Workforce Development Services of St. Joseph County or its successor agency. B. Any term not otherwise defined in this Article 6 has the meaning ascribed to it in IC 6- 1.1-12.1-1 et seq. C. All defined terms are to be interpreted that the singular includes the plural and vice versa as indicated by the context. D. The terms "including", "such as", and similar terms, when used as part of a phrase containing one or more specific items, are to be interpreted as being used by way of example and not of limitation. E. All references to provisions of the Indiana Gode, the Municipal Code of South Bend, and the United States Code are to be interpreted as meaning these provisions as they exist on the effective date of this ordinance and as they may be amended in the future. Sec. 2-76.2 Abatement Tiers The Council in its discretion may grant tax abatements in tiers. As provided in Section 2- 76.3, the first tier is a Base Abatement which the Council intends to provide an incentive for investments that increase the assessed valuation of property in the City, increase or retain jobs, eliminate blight, and foster economic development or revitalization. As provided in Section 2-76.4, the second tier is an Add-on Abatement which the Council intends to provide an incentive for property investors to execute certain actions that the Council believes will foster economic development and other public benefits in the community. Sec. 2-76.3 Base Abatement A Base Abatement ("Base Abatement") is an abatement for three (3) years in the case of real property other than single-family residential, five (5) years in the case of real property that is single-family residential, and five (5) years in the case of personal property. The Council may grant a Base Abatement to an applicant who fulfills the following requirements: A. The applicant's proposed project meets the requirements set forth in Sections 2-77 through 2-83.3 for real property or Section 2-84.2 for personal property. B. The Council deems the applicant's proposed project likely to generate within aten-year period financial returns (i.e., revenue from sources such as new real or personal property taxes, additional or retained County Option Income Taxes, payments-in-lieu of taxes, private contributions, and public user fees) and other economic and social benefits to the community sufficient to justify the costs that would be incurred by the City for municipal infrastructure improvements (including water, sewer and drainage facilities; wastewater treatment facilities; road, street and alley improvements; street lighting; and traffic control) and additional municipal services needed to enable or directly benefit the project. C. The applicant has executed a Memorandum of Agreement ("Memorandum of Agreement") prepared by the Community and Economic Development Department. The Memorandum of Agreement is a legally binding agreement representing a contractual relationship between the applicant and the Council. It may become effective upon the Council granting the abatement, which includes provisions setting forth: Tax Abatement Ordinance Page 22 The tax abatement recipient's agreement to fulfill the conditions upon which the tax abatement is based ("Conditions of Abatement"), ? 2. The time within which the tax abatement recipient must comply with the Conditions of Abatement, 3. The tax abatement recipient's obligation to respond to periodic surveys regarding compliance with the Conditions of Abatement, 4. The tax abatement recipient's obligation to allow representatives of the Community and Economic Development Department to have access to the project premises and to perform inspections and audits as necessary to verify compliance with the Conditions of Abatement, 5. The events which: a. _ shall entitle the Council to terminate the tax abatement in whole or in part, and b. shall cause the tax abatement recipient to be obligated to repay all or a portion of the property tax savings received. D. Neither the applicant nor any Related Party of the applicant is delinquent or in default with respect to any property tax payment in St. Joseph County, Indiana. E. Neither the applicant nor any Related Party of the applicant has a record of violations of {acal, state, or federal Paws or regulations over a period of time that, in the opinion of the Council, tends to show a consistent pattern. Sec. 2-76.4 Add-On Abatement An Add-on Abatement ("Add-on Abatement") is available only for real property other than single-family residential construction and may be from one (1) to seven (7) years of abatement in addition to the Base Abatement. Hence, an applicant for real property tax abatement who is granted both a Base Abatement and an Add-on Abatement may receive in total from four (4) to ten (10) years of abatement. The Council may, in its discretion and in light of its evaluation of the public benefits produced by the applicant's proposed project, grant an Add-on Abatement to any applicant for real property tax abatement who qualifies for a Base Abatement under the provisions of Section 2-76.3 and whose proposed project is not single-family residential construction. As a guide to its deliberations regarding an Add- on Abatement, the Council may consider, among other things, (i) the number. of Public Benefit Points ("Public Benefit Points") awarded for the applicant's including in the Memorandum of Agreement commitments to execute one or more of the Public Benefit Actions ("Public Benefit Actions") described in paragraph A below and (ii) the total number of Public Benefit Points awarded in relation to the threshold numbers of Public Benefit Points required to earn consideration for additional years of abatement set forth in paragraph B below. A. Public Benefit Actions and Public Benefit Points. The Public Benefit Actions for which Public Benefit Points may be awarded are as set forth below. The number of Public Benefit Points that may be awarded is set forth in square brackets following the description of each Public Benefit Action. Tax Abatement Ordinance Page 23 Project Related Actions. The applicant will: a. Redevelop A Site That Has Special Needs By One Of The Following Actions [Forty-nine (49) Public Benefit Points]: (1) Convert An Eligible Building To Residential. Convert to residential use a commercial building that has been designated an Eligible Building ("Eligible Building") by the Community and Economic Development Department. The Council intends generally that an Eligible Building shall be a building identified as an important element in achieving the goals and objectives of a formally adopted plan (such as a neighborhood revitalization plan) or a building of such magnitude (as determined by its context) that it is considered critical to the success of efforts to enhance, improve, revitalize or preserve the surrounding area. (2) Rehabilitate An Historic Building. Rehabilitate and reuse a building that is on the National Register of Historic Places, a locally designated historic landmark, located in a National Register or local landmark district, eligible for nomination as a National Register or local landmark, or rated as Outstanding (O/13) or Significant (S/12 or S/11) in the most recent Historic Preservation Commission county-wide survey. (3) Rehabilitate A Problem Property. Rehabilitate and reuse a property that that has been designated a Problem Property by the Community and Economic Development Department ("Problem Property"). The Council intends generally that a Problem Property shall be a building, facility, or complex that has been cited by the City's Neighborhood Code Enforcement agency, or a difficult-to-adapt building or facility that was constructed and used for a single, unique purpose (such as a school building), or a building of such magnitude (as determined by its context) that it is considered critical to the success of efforts to enhance, improve, revitalize or preserve the surrounding area. (4) Clean Up A Brownfield. Pay the cost of cleaning up a Brownfield ("Brownfield"), which is any site, building, facility, or complex that has been designated a brownfield by the Community and Economic Development Department. b. Develop A Business Based On Local University Research. Develop a commercial product or enterprise that is based upon licensing intellectual property arising from research conducted at a public or private university, college, or community college within St. Joseph County. [Thirty-five (35) Public Benefit Points] c. Achieve A Physical Element Of A Plan. Achieve one or more physical element identified in a development or revitalization plan (such as a neighborhood, commercial corridor, or redevelopment plan) that has been approved by the Council. The term physical element includes Tax Abatement Ordinance Page 24 the construction, reconstruction or Rehabilitation of a building, facility or complex; the construction, reconstruction or Rehabilitation of public infrastructure, facilities or community amenities; the removal of blighting physical elements; and the conversion of obsolete sites, buildings, facilities or complexes into productive and positive physical aspects of the identified area. (Thirty-six (36) Public Benefit Points] 2. "Super-Size" Pro}ect Development Actions. Produce new construction or Rehabilitation that exceeds either the number of square feet or the amount of Hard-dollar Cost that is required to qualify under the applicable provisions of Sections 2-77 through 2-83 by one hundred percent (100%) or more. [Two hundred ten (210) Public Benefit Points awarded in cumulative increments based on the percentage by which the number of square feet or the amount of Hard-dollar Cost that is required to qualify, as follows: a. 100% to 199% Twenty-five (25) Public Benefit Points b. 200% to 299% Sixty-eight (68) Additional Public Benefit Points c. 300% to 399% Sixty-five (65) Additional Public Benefit Points d. 400% and over Fifty-two (52) Additional Public Benefit Points] 3. Constnaction Related Actions. The applicant will: a. Employ Local Companies. Employ Local Companies for at least seventy-five percent (75%) of the cost of construction work associated with the project, except for the cost of any construction work that is not reasonably available from a Local Company. [Twenty (20) Public Benefit Points] b. Purchase Materials From Local Companies. Purchase from Local Companies at least seventy-five percent (75%) of the materials used in construction associated with the project, except for the cost of any material that is not reasonably available from a Local Company. [Twenty (20) Public Benefit Points] c. Require Employees Instead Of Independent Contractors. Require the companies performing construction work associated with the project to hire one hundred percent (100°I°) of the workers (except for any person who is operating as a business that has its own Taxpayer Identification Number) on the project as employees instead of as independent contractors. [Nineteen (19) Public Benefit Points] d. Require Target Wage Levels. Require the companies performing construction work associated with the project to pay workers on the project a scale of wages that is at least one hundred percent (100%) of the most current wage rates for each classification of laborers and mechanics which the Administrator of the Wage and Hour Division of the U.S. Department of Labor has determined to be prevailing in St. Joseph County, Indiana and has published on the Davis-Bacon Tax Abatement Ordinance Page 25 Determinations web site at http://www.access.gpo.gov/davisbacon/. [Twenty-two (22) Public Benefit Points] e. Require Health Benefits. Require the companies performing construction work associated with the project to contribute on behalf of the employees on the project to a fund, plan, or insurance program for medical and hospital care. [Twenty-two (22) Public Benefit Points] f. Require Pension Benefits. Require the companies performing construction work associated with the project to contribute on behalf of the employees on the project to a fund, plan, or program for, pensions on retirement. [Eighteen (18} Public Benefit Points] g. Require Racial Diversity. Require the entities contracted by the petitioner to perform construction work associated with the project to maintain or establish an affirmative action plan ar other similar plan with specific goals, objectives, and means (i.e., in-house training and recruitment) with respect to achieving a level hiring field to achieve racial, cultural, and gender diversity among workers. [Twenty (20) Public Benefit Points] 3. Wages And Benefits Related Actions. The applicant will: a. Pay Target Wage Levels. Pay its employees in each applicable Standard Occupational Classification ("SOC") system category an average Wage (calculated by summing the Wages of all the employees in a given SOC category and then dividing the total Wages by the number of such employees) that is at least one hundred percent (100°!0) of the Mean Hourly Wage reported for the SOC category by the Bureau of Labor Statistics in its most recent Metropolitan Area Ocwpationat Employment and Wage Estimates for the South Bend, Indiana Metropolitan Statistical Area. [Thirty-three (33) Public Benefit Points] For the purpose of this provision, "V1/age" means straight-time, gross pay, exclusive of premium pay, and subject to the following specific inclusions and exGusions. (1) Included are: base rate; cost-of-living allowances; guaranteed pay; hazardous-duty pay; incentive pay including commissions and production bonuses; on-call pay; and tips. (2) Excluded are: back pay; jury duty pay; overtime pay; severance pay; shift differentials; nonproduction bonuses; and tuition reimbursements. b. Provide Health Benefits. Contribute on behalf of its employees to a fund, plan, or program for medical and hospital care. [Thirty-four (34) Public Benefit Points] c. Provide Pension Benefits. Contribute on behalf of its employees to a fund, plan, or program for, pensions on retirement or death. [Twenty- nine (29) Public Benefit Points] Tax Abatement Ordinance Page 26 d. Provide Training. Provide training to employees which consists of recognized or certified training or educational courses or programs conducted within or outside the place of employment. [Twenty-eight (28) Public Benefit Points] e. Provide Day Care. Provide or contribute to the cost of child day care for its employees. [Fifteen (15) Public Benefit Points] 4. Provide Transportation Assistance._ Provide either direct or indirect support and assistance to enable lower income employees without private transportation to get back and forth from place of residence to place of employment. Examples of direct or indirect assistance include using public transportation, subsidized public transportation, and special van services. [Fourteen (14) Public Benefit Points) g. Provide Employer-Assisted Housing Program. Provide an employer- assisted home ownership program. [Nine (9) Public Benefit Points] Workforce Related Actions. The applicant will: a Create New Jobs. Create at least a specified number of new jobs. [Forty-two (42) Public Benefit Points] b. Retain Existing Jobs. Retain at least a specified number of existing jobs. [Forty-one (41) Public Benefit Points] c. Achieve Racial Diversity. Maintain or establish an affirmative action plan or other similar plan with specific goals, objectives, and means (i.e., in-house training and recruitment) with respect to achieving racial, cultural and gender diversity among the workers employed. (Thirty-five (35) Public Benefit Points] d. Provide Targeted Hiring Preferences. Provide hiring preference for residents of Census Tracts designated by the Community and Economic Development Department that have the highest unemployment or the highest percentage of low- and moderate- income individuals. [Thirty-four (34) Public Benefit Points] 5. Pav For Municipal Infrastructure. Pay the cost of extension or oversizing of municipal infrastructure (including water, sewer, drainage facilities, wastewater treatment facilities, road and street improvements, street lighting, traffic control and related public improvements) serving the project site. [One hundred thirty-one (131) Public Benefit Points awarded in cumulative increments based on the costs paid, as follows: a b. . Pay for 26% - 50% of extension Public Benefit Points Twenty-six (26) Additional c. Pay for oversizing Points Pay for 51 % - 75°l0 of extension Public Benefit Points Fourteen (14) Public Benefit Thirty-nine (39) Additional Tax Abatement Ordinance Page 27 d. Pay for 76% - 100% of extension Fifty-two (52) Additional Public Benefit Points] 6. Financially Support A Municipal Facility. Provide significant financial sponsorship for a municipally owned park, recreation, cultural arts, or entertainment facility, or other simi{ar public amenity. [Eighty-four (84) Public Benefit Points] B. Public Benefit Points Thresholds And Additional Abatement Years, Except Multi- Family Development. Except with respect to multi-family development projects, the threshold number of Public Benefit Points required to eam consideration by the Council of each additional year of abatement shall be as set forth below: 1. 0 through 300 Public Benefit Points eams consideration of zero (0) additional years of abatement. 2. 301 .through 357 Public Benefit Points eams consideration of one (1) additional year of abatement 3. 358 through 414 Public Benefit Points eams consideration of two (2) additional years of abatement 4. 415 through 471 Public Benefit Points eams consideration of three (3) additional years of abatement 5. 472 through 528 Public Benefit Points eams consideration of four (4) additional years of abatement 6. 529 through 585 Public Benefit Points eams consideration of five (5) additional years of abatement 7. 586 through 642 Public Benefit Points eams consideration of six (6) additional years of abatement 8. 643 to 1,000 Pubic Benefit Points eams consideration of seven (7) additional years of abatement C. Public Benefit Points Thresholds And Additional Abatement Years, Multi-Family Development. With respect to multi-family development projects, the threshold number of Public Benefit Points required to eam consideration by the Council of each additional year of abatement shall be as set forth below: 1. 0 through 141 Public Benefit Points eams consideration of zero (0) additional years of abatement. 2. 142 through 183 Public Benefit Points eams consideration of one (1) additional year of abatement 3. 184 through 225 Public Benefit Points eams consideration of two (2) additional years of abatement 4. 226 through 267 Public Benefit Points eams consideration of three (3) additional years of abatement Tax Abatement Ordinance Page 28 5. 268 through 309 Public Benefit Points eams consideration of four (4) additional years of abatement 6. 310 through 351 Public Benefit Points eams consideration of five {5) additional years of abatement 7. 352 through 393 Public Benefit Points eams consideration of six (6) additional years of abatement 8. 394 to 1,000 Public Benefit Points eams consideration of seven (7) additional years of abatement DIVISION 2. RESIDENTIAL DEVELOPMENT REAL PROPERTY TAX ABATEMENT Sec. 2-77. Multi-Family Residential Developments A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives of multi-family projects within the City, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: New Construction: Proposed multi-family residential developments which incorporate new construction of not less than one million dollars ($1,000,000.00) in Hard-dollar Costs, which are to be located in the Economic Development Target Areas, and which specify or guarantee that for the duration of the abatement at least twenty percent (20%) of the units shall be Available For Use by Low And Moderate Income Individuals Or Families, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed multi-family residential developments which incorporate Rehabilitation of not less than two hundred fifty thousand dollars ($250,000.00} in Hard-dollar Costs, which are to be located in the Economic Development Target Areas, and which specify or guarantee that for the duration of the abatement at least twenty percent (20%) of the units shall be Available For Use by Low And Moderate Income Individuals Or Families, may be considered Base Abatement consisting of consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed multi-family residential developments, which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. E. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in lC 6-1.1-12.1-1 et seq. Sec. 2-77.1. Single-family Residential Construction A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives of single-family residential Tax Abatement Ordinance Page 29 construction within the Gity, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: Proposed single-family new construction homes which are to be located within the City's corporate boundaries and meet the requirements addressing residentially distressed areas set forth in I.C., 6-1.1-12.1-2 and the provisions of paragraph D below, may be considered for a Base Abatement consisting of five (5) years real property tax abatement. C. No Add-on Abatement: No Add-on Abatement will be granted for single-family residential construction. D. Residentially Distressed Area Designation: The grant of a residentially distressed area designation is subject to the following conditions: 1. The deduction will not be allowed unless the dwelling is constructed to meet the local code standards for habitability. 2. If a designation application is filed, the Council may require that the construction be completed within a reasonable period. DIVISION 3. OFFICE DEVELOPMENT REAL PROPERTY TAX ABATEMENT Sec. 2-78 Office Developments Within Central Business District A. Generally: The Council believes that the following tax abatement general standards have a reasonable relationship to the development objectives of office developments within the Central Business District, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: 1. New Construction: Proposed office developments which incorporate new construction of not less than fifteen thousand (15,000) square feet, and which are to be located within the Central Business District, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed Rehabilitation of existing structures located within the Central Business District for office development, and which propose not less than five thousand (5,000) square feet, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed office developments which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. Tax Abatement Ordinance Page 30 Sec. 2-78.1. Office Developments Within East Bank Development Area And Tax Abatement Impact Areas A. Generallv: The Council believes that the following general standards have a reasonable relationship to the development objectives of office development projects within the East Bank Development Area and the Tax Abatement Impact Areas, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: 1. New construction: Proposed office developments which incorporate new construction of not less than seven thousand five hundred (7,500) square feet, and which are to be located within the East Bank Development Area or TAIA, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed Rehabilitation of existing structures located within the East Bank Development Area or TAIA, and which propose Rehabilitation of not less than five thousand (5,000) square feet, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed office developments which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in t.C. 6-1.1-12.1-1 et seq. DIVISION 4. RETAIL DEVELOPMENT REAL PROPERTY TAX ABATEMENT Sec. 2-79. Retail Developments In Central Business District, East Bank Development Area And Tax Abatement Impact Areas A. Generallv: The Council believes that the following general standards have a reasonable relationship to the development objectives for Retail development within the Central Business District, East Bank Development Area or TAIA, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: New construction: Proposed Retail developments which incorporate new constnaction which is to be located within the Central Business District, East Bank Development Area, or TAIA may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed Retail developments which incorporate Rehabilitation of existing structures located within the Central Business District, East Bank Development Area or TAIA may be considered for a Base Abatement consisting of three (3) years real property tax abatement. Tax Abatement Ordinance Page 31 C. Add-on Abatement General Standards: Proposed Retail developments, which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. Sec. 2-79.1. Retail Developments In Urban Enterprise Zone A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives for Retail development within the UEZ, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: New Construction: Proposed retail developments which incorporate new constnaction and are to be located within the UEZ, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed retail development which incorporate Rehabilitation of existing structures located within the UEZ, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed Retail developments, which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all.applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. DIVISION 5. MIXED USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT Sec. 2-80. Mixed Use Developments In Central Business District A. Generally: The Council believes that the following tax abatement general standards have a reasonable relationship to the development objectives of Mixed Use developments within the Central Business District, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: New construction: Proposed Mixed Use developments which incorporate new construction of not less than fifteen thousand (15,000) square feet, and which are to be located within the Central Business District, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed Rehabilitation of existing structures located within the Central Business District and which propose Rehabilitation of not less than five Tax Abatement Ordinance Page 32 thousand (5,000) square feet, may be considered fora Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed Mixed Use developments, which qualify to be considered far a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. Sec. 2-80.1. Mixed Use Developments In East Bank Development Area A. Generallv: The Council believes that the following general standards have a reasonable relationship to the development objectives of Mixed Use development projects within the East Bank Development Area, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: 1. New construction: Proposed Mixed Use developments which incorporate new construction of not less than seven thousand five hundred (7,500) square feet, and which are to be located within the East Bank Development Area may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed Rehabilitation of existing structures located within the East Bank Development Area and which propose Rehabilitation of not Tess than five thousand (5,000) square feet, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed Mixed Use developments, which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. DIVISION 6. INSTITUTIONAL DEVELOPMENT REAL PROPERTY TAX ABATEMENT Sec. 2-81. Institutional Development In Central Business District, East Bank Development Area And Urban Enterprise Zone A. Generallv: The Council believes that the following general standards have a reasonable relationship to the development objectives for Institutional Development within the Central Business District, East Bank Development Area, and UEZ, and would warrant tax abatement consideration as set forth herein. Tax Abatement Ordinance Page 33 B. Base Abatement General Standards: 1. New construction: Proposed new construction of Institutional Developments which are to be located within the Central Business District, East Bank Development Area, and UEZ may be considered for may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed Rehabilitation of Institutional Developments located within the Central Business District, East Bank Development Area and UEZ, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed Institutional Developments, which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 of seg. Sec. 2-81.1 Hotel/Motel Development In The Central Business District, East Bank Development Area, And Airport Economic Development Area. A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives for hoteVmotel development within the Central Business District, East Bank Development Area, and Airport Economic Development Area, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: Proposed new construction of hotel/motel developments which incorporate twenty (20) rooms or more and are to be located within the Central Business District, East Bank Development Area and Airport Economic Development Area may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed hotel/motel developments which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. DIVISION 7. INDUSTRIAL DEVELOPMENT REAL PROPERTY TAX ABATEMENT Sec. 2-82. Industrial Development City-Wide General Standards A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives for Industrial Development city-wide, and would warrant tax abatement consideration as set forth herein. Tax Abatement Ordinance Page 34 B. Base Abatement General Standards: 1. New Construction: Proposed Industrial Developments which incorporate new construction of not less than ten thousand (10,000} square feet, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. 2. Rehabilitation: Proposed Rehabilitation of existing structures for Industrial Developments and which propose Rehabilitation of not less than ten thousand (10,000) square feet, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement Generaf Standards: Proposed Industrial Developments, which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state faw: Alf applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. E. WDS Requirement: All applicants seeking real property tax abatement consideration under this section must also comply with working with WDS as set forth in Section 2-83.2. Sec. 2-82.1. Industrial Development In Urban Enterprise Zone And Redevelopment Blighted Areas A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives for Industrial Development within the Urban Enterprise Zone and Redevelopment Blighted Areas, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: Proposed Industrial Developments which are to be located within the UEZ or RBA, may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed Industrial Developments, which qualify to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in {.C. 6-1.1-12.1-1 et seq. E. WDS Requirement: All applicants seeking real property tax abatement consideration under this section must also comply with working with WDS as set forth in Section 2-83.2. Tax Abatement Ordinance Page 35 DIVISION 8. WAREHOUSE DEVELOPMENT REAL PROPERTY TAX ABATEMENT Sec. 2-83. Warehouse Development City-wide A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives for Warehouse Development within the City, and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: Proposed Warehouse Development of new construction or Rehabilitation of not less than twenty-five thousand (25,000) square feet per project may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed Warehouse Development, which qualifies to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: All applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. E. WDS Requirement: AI{ applicants seeking real property tax abatement consideration under this section must also comply with working with WDS as set forth in Section 2-83.2. Sec. 2-83.1. Warehouse Development In Economic Development Target Areas, Urban Enterprise Zone And Redevelopment Blighted Areas A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives for Warehouse Development projects within the Economic Development Target Areas, UEZ, and Redevelopment Blighted Areas and would warrant tax abatement consideration as set forth herein. B. Base Abatement General Standards: Proposed Warehouse Development of new constnaction or Rehabilitation in the Economic Development Target Areas, UEZ, or RBA may be considered for a Base Abatement consisting of three (3) years real property tax abatement. C. Add-on Abatement General Standards: Proposed Warehouse Development, which qualifies to be considered for a Base Abatement under the provisions of paragraph B above, may be considered for an Add-on Abatement consisting of from one (1) to seven (7) years real property tax abatement. D. Compliance with state law: Al! applicants seeking real property tax abatement consideration under this section must also comply with all applicable regulations set forth in I.C. 6-1.1-12.1-1 et seq. E. WDS Requirement: All applicants seeking real property tax abatement consideration under this section must also comply with working with WDS as set forth in Section 2-83.2. Sec. 2-83.2. Role Of WDS With Warehouse And Industrial Developments A. All petitioners seeking real property tax abatement for Warehouse Developments pursuant to Section 2-83 and 2-83.1, and Industrial Developments pursuant to Section 2-82 Tax Abatement Ordinance Page 36 and 2-82.1 must agree in writing to work with WDS at all levels for employment positions created. B. Such agreement shall include, but not be limited to, development plans and recruitment of economically disadvantaged candidates. C. WDS shall report to the Council's Community and Economic Development Committee of the Council on a quarterly basis, with the results of its efforts in this area. D. The Office of the City Clerk shall notify WDS of all real property tax abatements granted subject to the WDS requirement addressed in this section by sending them a copy of the form completed by the petitioner. Sec.2-83.3. Reserved DIVISION 9. MISCELLANEOUS REAL PROPERTY TAX ABATEMENT GUIDELINES Sec. 2-84. Council's Authority To Enlarge Real Property Tax Abatement Genera! Standards A. The Council believes that pursuant to the Home Rule authority set forth in I.C. 36-1-3-1 et seq., and the authority granted to it under I.C. 6-1.1-12.1-1 of seq., that it, as the ultimate designating authority, has the authority to declare areas within the City, other Economic Revitalization Areas which do not meet the general standards for real property tax abatement set forth in Sections 2-77 through 2-83.3. B. The Council, therefore, declares that individuals who desire to petition for real property tax abatement which do not meet all of the general standards set forth herein, may do so by filing proper petitions and forms of declaratory and confirmatory resolutions with the Office of the City Clerk. Such forms shall set forth in detail the substantive reasons why they believe that they should be considered for such abatement and declared an Economic Revitalization Area. C. The Council as the Designating Body shall review such matters on aproject-by-project basis. D. The Council shall make specific written findings supporting its determination. E. Real property tax abatement granted under this section shall be limited to the specific number of years determined by the Council to be appropriate under the circumstances. Sec.2-84.1. Reserved DIVISION 10. PERSONAL PROPERTY TAX ABATEMENT Sec. 2-84.2. Tangible Personal Property Tax Abatement A. Generally: The Council believes that the following general standards have a reasonable relationship to the development objectives of promoting the installation of New Manufacturing Equipment in urban development areas within the City's corporate boundaries, and would warrant tax abatement consideration as set forth herein. Tax Abatement Ordinance ~ Page 37 B. Base Abatement General Standards: 1. An applicant seeking personal property tax abatement must comply with all of the provisions of I.C. 6-1.1-12.1-4.5, and the provisions of Division 11 that are applicable. 2. An applicant complying with such provisions may be considered for a Base Abatement consisting of five (5) years personal property tax abatement. C. Certification of New Manufacturing Equipment: An applicant seeking personal property tax abatement must certify that it will use the New Manufacturing Equipment in one or more of the uses listed within the definition of New Manufacturing Equipment set forth in 1.C. 6-1.1-12.1-1 et seq. D. No Add-on Abatement: No Add-on Abatement will be granted for personal property. Secs. 2-84.3--2-84.6. Reserved DIVISION 11. INFORMATION REQUIRED OF APPLICANTS SEEKING TAX ABATEMENT Sec. 2-84.7. Designation Application Required A. Owners must file. Owners of real property or New Manufacturing Equipment located within the City may petition the Council on forms provided by the City Clerk for real or personal property tax abatement consideration. All information and attachments required by the designation application must be completed and filed with the City Clerk together with a filing fee set forth below to cover the review, processing and administrative costs of the Community and Economic Development Department and City Clerk. However, the filing fee charged for filing a designation application for a parcel that contains one (1) or more owner- occupied, single-family dwellings may not exceed the cost of publishing the required notice. B. Schedule of fees. The Application/review and Clerk's Office fees set forth below must be paid by the applicant to the City Clerk simultaneous with the filing of application or petition for real or personal property tax abatement consideration. The Annual Administration fees set forth below must be paid by the applicant upon receipt of a billing from the Community and Economic Development Department after the Council has adopted the pertinent declaratory resolution. Outside a TIAA: a. Real property: (1) Application/review (2) Clerk's Office (3) Annual Administration b. Personal property: $323.00 $250.00 $117.00 fee per year of abatement (1) Application/review $323.00 Tax Abatement Ordinance Page 38 (2) Clerk's Office (3) Annual Administration c. Combined: (1) Real property: (a) Application/review (b) Clerk's office (c) Annual Administration (2) Personal property: (a) Application/review (b) Clerk's office (c) Annual Administration 2. Inside a TIAA: a. Real property: (1) Application/review (2) Clerk's Office (3) Annual Administration b. Personal property: {1) Applicationlreview (2) Clerk's Office (3) Annual Administration c. Combined: (1) Real property: (a) Application/review (b) Clerk's Office (c) Annual administration (2) Personal property: (a) Application/review Tax Abatement Ordinance $250.00 $117.00 fee per year of abatement $323.00 $250.00 $117.00 fee per year of abatement $161.50 $250.00 $292.50 $393.00 $250.00 $117.00 fee per year of abatement $393.00 $250.00 $117.00 fee per year of abatement $393.00 $250.00 $117.00 fee per year of abatement $196.50 Page 39 (b) Clerk's Office $250.00 (c} Annual Administration $292.50 The application/review and City Clerk's components of each of the above fees are nonrefundable. The annual administration component of each of the above fees may be refunded in the event the application or petition for tax abatement consideration is not approved by the Council or is withdrawn by the owner prior to final action by the Council. Should a tax abatement be rescinded, the annual administration fee for that abatement may be refunded subject to any refund being prorated and reduced by any costs incurred by the City in taking such action. Fees collected under this section shall be deposited as follows: Office of the City Clerk fee of two hundred fifty dollars ($250.00) to the General Fund; and All other fees to Fund 212 to be used by the Community and Economic Development Department. C. Petition information: Property owners petitioning for tax abatement shall provide the fo{lowing information on the petition to enable the Council to consider their request: The name(s) and address(es) of the real property owner(s) (and personal property owner(s), in the case of the request for personal property tax abatement), and any other person(s) leasing, intending to lease, or having an option to purchase such property, and a brief description of the business. 2. If the business organization is publicly held, the name of the corporate parent and the name under which the corporation is filed with the Securities Exchange Commission. 3. The legal description and commonly known address of the real property for which real property tax abatement is being petitioned; or the legal description and commonly known address of the facility at which the New Manufacturing Equipment for which tangible personal property tax abatement is being petitioned will be located. 4. A map and/or plat describing the area where tax abatement is being requested. 5. The current assessed valuation of the real property improvement before Rehabilitation, Redevelopment, economic revitalization, or improvement; or the current assessed valuation of the tangible personal property to be replaced by New Manufacturing Equipment. 6. Photographs of the location taken within two (2) weeks of the filing of the petition. 7. The real and personal property taxes paid at the location during the previous five (5) years, whether paid by the current owner or a previous owner. 8. The commitment made within the past five (5) years to hiring Minority persons including number of Minority persons employed during each of the past five (5) years, specifying whether full-time or part-time and whether permanent or Tax Abatement Ordinance Page 40 temporary employees. The petitioner shall also list the current number of total employees (full- and part-time) and the current number of Minority persons (fult- and part-time). 9. An estimate of the after-rehabilitation market value of the real property or an estimate of the market value of the New Manufacturing Equipment after installation. 10. The commitment to Minority employment during the first five (5) years of tax abatement. 11. A description of the proposed project (whether Rehabilitation, new construction, or installation of New Manufacturing Equipment), including information about physical improvements to be made or the New Manufacturing Equipment to be installed, an estimate of the cost of the project, the amount of land to be used, the proposed use of the improvements, and a general statement as to the value of the project to the business. 12. An estimate of the number of new permanent jobs to be created by the project within two (2) years, a statement of the current number of permanent and part- time jobs at the location and the impact on those current jobs to be caused by the project, and the projected annual salaries for each such position to be created. 13. Certification that no building permit has been issued for construction on the property for the improvement proposed or verification that the New Manufacturing Equipment has not been installed. 14. The North American Industry Classification System (NAILS) major group within which the proposed project would be classified, by number and description. 15. The Internal Revenue Service Code of principal business activity by which the proposed project would be classified, by number and description. 16. A description of on-site child care or day care facilities, services, or benefits currently offered or proposed to be offered by the petitioner for children of employees. 17. Other anticipated public financing for the project, including, if any, industrial revenue bonding to be sought or already authorized, assistance through the United States Department of Housing and Urban Development funds from the City of South Bend, Small Business Administration Section 504, financing through the Business Development Corporation of South Bend, Mishawaka, and St. Joseph County, Indiana; financing through the Industrial Development Revolving Fund; financing through the Corporation for Entrepreneurial Development; or other public financial assistance, including public works improvements. 18. For real property tax abatement, a description of how the property in question has become undesirable for or impossible of normal development and occupancy because of lack of development, cessation of growth, deterioration of improvements, or character of occupancy, age, obsolescence, substandard Tax Abatement Ordinance Page 41 buildings or other factors which have impaired values and prevent a normal development of the property or property use. 19. For personal property tax abatement, a description of why the facility or group of facilities to be replaced are technologically, economically or energy obsolete, whereby the obsolescence may lead to a decline in employment and tax revenues; together with a verification that the New Manufacturing Equipment will be used in the direct production, manufacture, fabrication, assembly, extraction, mining, processing, refining or refinishing of other tangible personal property and that the New Manufacturing Equipment was never before used by its owner for any purpose in Indiana. 20. The name, address and telephone number of the person to contract regarding notice of Council meetings and public hearings concerning the petition. 21. The name, address and telephone number of the person who will work with WDS for employee recruitment. D. Power of Attomey. If a person other than the person signing the application is to represent the applicant at any meeting of the Community and Economic Development Committee or the Council, a duly executed power of attorney authorizing such representation must be on file with the City Clerk. Sec. 2-84.8. Statement Of Benefits, Declaratory And Confirmatory Resolutions Required A. In addition to the completed petition, filing fee, and related documents required by Section 2-84.7, the owners of real property or New Manufacturing Equipment must file a completed statement of benefits form at the time of filing the petition. B. Proposed forms of declaratory and confirmatory resolutions are also required of the owner at the time of filing the petition. C. Petitioners must agree to work with the Community and Economic Development Department in providing it with any additional information required for their review. Petitioners must further agree that they will comply with the requirements of the Redevelopment Design Review Committee where applicable, and provide information to WDS, and the Council's Community and Economic Development Committee. D. The provisions of I.C. 6-1.1-12.1-3 shall be followed by the Designating Body when reviewing such documents required by this section. Sec. 2-84.9. Advisory Review By Community And Economic Development Department A. Upon the filing of a completed tax abatement petition, including all attachments, filing fee, statement of benefits form, and the declaratory and confirmatory resolutions by the owner, the City Clerk shall refer the documents to the Community and Economic Development Department for an advisory review. The review shall be for informational purposes only, and shall not be binding on the Designating Body. B. The Community and Economic Development Department shall review the petition, statement of benefits, and all attachments thereto. It shall also have the authority to request Tax Abatement Ordinance Page 42 additional information from the petitioner which are relevant to the petition and statement of benefits. C. Within fifteen (15) days from the receipt of the documents from the Office of the City Clerk, the Community and Economic Development Department shall prepare a written report setting forth a review of its advisory findings. The report shall be sent to the Council's Community and Economic Development Committee, to the City Clerk, and to the petitioner. D. The report shall address but not be limited to addressing the following: Whether all required information has been submitted by the petitioner. In the event that additional information was requested of the petitioner, the report shall address such requests and the response received from the petitioner. 2. Whether the information contained in the petition and statement of benefits indicates that the requirements of this article are met by the project as described in the petition. 3. Whether zoning requirements have been met, according to the Department of Code Enforcement. A copy of the Department of Code Enforcement's report shall be attached to the report. 4. Whether the project is located in a tax allocation area, as defined in l.C. 36-7-14- 39 and, if so, whether the South Bend Redevelopment Commission has adopted a resolution approving that application. A copy of such a resolution if required shall be attached to the report. 5. The proposed Memorandum of Agreement shall be attached to the report. 6. Whether in the Community and Economic Development Department's opinion, a deduction should be allowed based on the following: a. Whether the estimate of the value of the Redevelopment or Rehabilitation is reasonable for projects of that nature. b. Whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described Redevelopment or Rehabilitation. . c. Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described Redevelopment or Rehabilitation. d. Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described Redevelopment or Rehabilitation. E. The Community and Economic Development Department's report shall also attach to it a copy of the petition and statement of benefits form and all attachments thereto. Tax Abatement Ordinance Page 43 Sec. 2-84.10. Review And Recommendation By Council's Community And Economic Development Committee A. The Council's Community and Economic Development Committee shall examine, review and conduct a public committee meeting concerning the petition and statement of benefits, and declaratory resolution. Such meeting shall not be scheduled until the advisory report from the Community and Economic Development Department has been received by the City Clerk, the Council's Community and Economic Development Committee, and the petitioner. B. The petitioner and/or its representatives shall be required to attend all such committee meetings where such information is to be reviewed. The petitioner shall present verbal and written evidence as to why it believes it should be granted the tax abatement sought. C. At the committee meeting, the Committee shall specifically consider, among other information provided by the petition, the commitment made to Minority employment by the petitioner during the past five (5) years and during the first five {5) years of tax abatement. D. Following questioning and review, the Committee shall take action on the request and shall submit its recommendation to the Council as to whether the property qualifies as an Economic Revitalization Area under the terms of this article and I.C. 6-1.1-12.1-1, et seq. Sec. 2-84.11. Council's Review Of Declaratory Resolution A. The Council shall hold a public hearing on the petitioner's declaratory resolution pursuant to I.C. 6-1.1-12.1-2.5. B. The petitioner and/or its representative shall present evidence to the Council as to why it believes it qualifies for the requested abatement. C. If it finds that the property qualifies as an Economic Revitalization Area under the terms of this article and I.C. 6-1.1-12.1-1(1), the Council may adopt a resolution declaring the property as an Economic Revitalization Area for purposes of tax abatement. The resolution shall specify whether the abatement is for real property tax deduction or for personal property tax deduction, the length of time during which the area shall be so designated, and the general boundaries of the area shall be so designated, and the general boundaries of the area by describing its location in relation to public ways. If the abatement is for real property taxes, the Council shall specify a number of years, not exceeding ten (10), for the abatement. If the tax abatement is for residentially distressed areas, specific findings as required by I.C. 6-1.1-12.1-3 and I.C. 6-1.1-12.1-4.1 shall be made. Upon the adoption of the declaratory resolution, the City Clerk shall file the resolution with the County Assessor, together with supporting data required by I.C. 6-1.1-12.1-2.5. D. If the area is located within an allocation area as defined in I.C. 36-7-14-39, as declared by the South Bend Redevelopment Commission, the Council shall not adopt a declaratory resolution declaring an area to be an Economic Revitalization Area for purposes of either real property tax deduction or personal property tax deduction if the Commission has not adopted a resolution approving the petition. E. Upon adoption of the declaratory resolution, the City Clerk shall cause notice of the adoption to be published pursuant to I.C. 5-3-1, and shall include in the notice information about the adoption of the declaratory resolution, the substance of the resolution, that a description of the affected area is available and can be inspected in the County Assessor's Tax Abatement Ordinance Page 44 Office, the date when the Council will receive and hear all remonstrances and objections from interested persons; and any other information required by I.C. 6-1.1-12.1-2.5. Sec. 2-84.12. Confirmatory Resolution A. Following the legal publication and on the date published in the legal notice, a public hearing on the confirmatory resolution shall be held by the Council. The petitioner and/or its representative shall be present and shall be required to present evidence why it believes the tax abatement requested should be granted, at which time the Council shall receive and hear all remonstrances and objections from interested persons pertaining to the petition. At the public hearing, the Council shall determine whether the petition complies with this article and with I.C. 6-1.1-12.1, et seq., and shall consider all pertinent requirements for Economic Revitalization Areas prior to taking final action determining whether the petition meets qualifications for an Economic Revitalization Area and confirming, modifying and confirming, or rescinding the declaratory resolution. The determination of Council is final except that an appeal may be taken and heard as provided by I.C. 6-1.1-12.1-2.5(d) and (e). B. The Council must make a determination as to whether the deductions shall be allowed and made specific findings pursuant to I.C. 6-1.1-12.1-3. The Council must further comply with I.C. 6-1.1-12.1-4.5 and make specific finding thereto when considering personal property tax abatement requests. C. In declaring an area an Economic Revitalization Area, the Designating Body may: 1. Limit the time period to a certain number of calendar years during which the area shall be so designated;2. Limit the type of deductions that will be allowed within the Economic Revitalization Area to either the deduction allowed under I.C. 6- 1.1-12.1-3, or the deduction allowed under I.C. 6-1.1-12.1-4.5; 3. Limit the dollar amount of the deduction that will be allowed with respect to New Manufacturing Equipment if a deduction had not been filed before July 1, 1987, for that equipment; 4. Limit the dollar amount of the deduction that will be allowed with respect to Redevelopment and Rehabilitation occurring in areas that are designated as Economic Revitalization Areas on or after September 1, 1988; or 5. Impose reasonable conditions related to the purpose of state law or to the general standards adopted herein for allowing the deduction for the Redevelopment or Rehabilitation of the property or the installation of the New Manufacturing Equipment. D. To exercise one (1) or more of the above-described powers, the Council must include this fact in the resolutions adopted. Sec. 2-84.13. Annual Review Of Petitions By Council A. All property owners who receive approval of their real and/or personal property tax abatement requests as a result of the Council's action under this article, shall be required to appear before the Council's Community and Economic Development Committee. Such appearances shall take place at a committee meeting following the petitioner's filing of the first Certified declaration application with the County Auditor, required by the State Board of Tax Commissioners pursuant to I.C. 6-1.1-12.1-5. Tax Abatement Ordinance ~ Page 45 B. Additionally the petitioner shall file with the Committee its annual report on forms previously sent to it by the Community and Economic Development Department. Such mailing by the Community and Economic Development Department shall be done annually to each such petitioner on or before February 1, by certified mail, and shall provide notice that if the property owner fails to comply, that it may be subject to fines as set forth in this article. Petitioners must return their completed annual report within thirty (30) days from receipt with such date being calculated from the returned receipt mail card date. C. The annual report shall include, but not be limited to, the following information. The name and address of the person(s) filing the report 2. The amount of real and/or personal property taxes paid for the property during the year before the property was declared as an Economic Revitalization Area and during the most recent tax year. 3. The current number of part-time and full-time jobs, specifying whether permanent or temporary, and the number of such jobs as of the end of the year immediately prior to receiving tax abatement. 4. The names of Local Company and/or Minority contractors used during the renovation of the real property and/or installation of New Manufacturing Equipment for which tax abatement was received. 5. The number of Minority persons hired for full-time and part-time jobs, specifying whether such jobs are permanent or temporary, since the completion of the project for which tax abatement was given. D. In addition to the Council's Community and Economic Development Committee being present at said committee meeting to review the petitioner's progress, Workforce Development Services, and members of the Community and Economic Development Department shall be in attendance to question the petitioner. E. The Council's Community and Economic Development Committee shall review the material presented by the petitioner in comparison to the information published by the County Auditor as required by I.C. 6-1.1-12.1-8. F. The Council's Community and Economic Development Committee shall specifically advise each property owner in writing as to whether subsequent appearances before the Committee shall be necessary. If such additional appearances are not required, the property owner shall be duly advised that its future annual reports may be mailed. Failure to mail such completed reports shall result in a fine of two thousand five hundred dollars ($2,500.00) for each such failure to comply. Sec. 2-84.14 Failure Of Petitioner To Comply May Result In Fines Being Imposed Or Termination Of Economic Revitalization Designation And Repayment Of Taxes Previously Abated A. The Council believes that the granting of a request for real and/or personal property tax abatement under the terms and conditions of this article and the Memorandum of Agreement constitutes a contractual arrangement between the Council and the property owner granted abatement. Tax Abatement Ordinance Page 46 B. Accordingly, if the petitioner fails to achieve the estimates set forth in its original petition for tax abatement consideration and its statement of benefits, fines may be imposed by the Council relative to the severity of the failure to achieve. C. Therefore, a petitioner who fails to file its annual report and meet with the Council's Community and Economic Development Committee as required by section 2-84.13 shall be fined two thousand five hundred dollars ($2,500.00). D. A petitioner who complies with section 2-84.13, but fails to provide evidence as to why it has not fulfilled the obligations set forth in the Memorandum of Agreement and the petitioner's related documents used by the Council when granting the abatement, may be required to pay part or all of the tax abated to-date and may be fined in the minimum amount of two hundred fifty dollars ($250.00) to a maximum amount of two thousand five hundred dollars ($2,500.00) for each such failure to perform. E. During the term of the abatement, the Community and Economic Development Department may annually request information from the applicant concerning the nature of the project, the approved capital expenditures for the project, the number of full-time permanent positions newly created by the project, and the average wage rates and salaries (excluding benefits and overtime) associated with the positions, and the applicant shall provide adequate written evidence thereof within fifteen (15) days of such request {the "Annual Survey"). The Community and Economic Development Department shall utilize this information and the information required to be filed by the applicant in the CF-1 Compliance with Statement of Benefits form to verify that the applicant has complied with the commitments contained in the Memorandum of Agreement at all times after the Memorandum of Agreement date and during the duration of the abatement. The applicant further agrees to provide any additional information requested by the Community and Economic Development Department related to the information provided in the Annual Survey and the CF-1 form within a reasonable time following any such additional request. F. The City, by and through the Council, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it determines that the applicant has not made reasonable efforts to substantially comply with all of the commitments, and the applicant's failure to substantially comply with the commitments was not due to factors beyond its control. G. As used in this Section, factors beyond the control of the applicant shall only include factors not reasonably foreseeable at the time of the designation, application and submission of Statement of Benefits which are not caused by any act or omission of the applicant and which materially and adversely affect the ability of the applicant to substantially comply with this Section. H. If the Council terminates the Economic Revitalization Area designation and associated tax abatement deductions, it may require the applicant to repay all or a portion of the tax abatement savings received through the date of such termination. The amount of tax abatement required to be repaid for each year of noncompliance shall not exceed an amount equal to the percentage by which the applicant has failed to attain substantial compliance in any of the aforementioned investment, position retention and/or creation and average hourly wage rate and salary categories multiplied by the dollar amount of taxes actually abated. If the applicant fails to comply with more than one of the aforementioned categories, repayment shall be based on the highest level of non-compliance. The City's Legal Department is hereby authorized to pursue all legal actions necessary in the event of Tax Abatement Ordinance Page 47 such non-compliance or failure by the applicant to perform other duties and responsibilities arising when it agreed to certain contractual obligations by signing the Memorandum of Agreement. I. If at any time during the term of the Agreement, whether before or after the commitment date, the applicant shall: (i) cease operations at the facility for which the tax abatement was granted; or (ii) announce the cessation of operations at such facility, then the Council may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require applicant to repay all of the tax abatement savings received through the date of such termination. Sec. 2-84.15. Annual Summary To Be Prepared By Community And Economic Development Department A. On or before March 31 of each year, the Community and Economic Development Department shat{ file an annual report with the City Clerk and Council summarizing all tax abatement activity for the past calendar year. The report shall include, but not be limited to, the following information: The number of tax abatement petitions filed, number and type of abatement granted, names and addresses of all petitioners who failed to comply with section 2-84.13, and other relevant information. The report shall include a copy of the County Auditor's information published by the County Auditor as required by I.C. 6-1.1-12.1- 8. B. The report shall be used as one (1) of the items of evidence when imposing fines against the petitioners who fail to comply, or when terminating an Economic Revitalization Area, or when pursuing other legal action. Sec. 2-84.16. Review Of Tax Abatement Procedures By Council A. In calendar years ending with an even number, the Council shall review its tax abatement procedures set forth in this article. B. The review shalt be conducted by the Council's Community and Economic Development Committee with a report of its findings being presented to the full Council on or before October 1 of such years. C. Nothing in this section prohibits a more frequent review of such procedures. Sec.2-84.17. Severability If any part, section, subsection, sentence, clause, or phrase of this Article is for any reason declared to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Article. Section II This ordinance shall be in full force and effect on and after August 15, 2003, and after its passage by the Council, approval by the Mayor, and legal publication. 1 st READING ~ ' Z1 ~ 0 3 PUBLIC HEARING Z-IO - O 3 '3 rd READING 2_t ~- 03 NOT APPROVED REFERRED PASSED -Z-1 ~~ 0~ Tax Abatement Ord f~ a S~ N~~~~ !~tl+ALlfi1-+ J~~=9 ~ ~ X003 Lar+u'°tT/1 J. DrdD Page 48 COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 5-03 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE BY REPLACING IN ITS ENTIRETY ARTICLE 6 ENTITLED TAX ABATEMENT PROCEDURES Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Karl King Chairman City of south fiend Common Council 441 County-City Building • South Bend, Indiana 46601 (574)235-9321 Fax (574) 235-9173 TDD (574) 235-5567 http://www.ci.south-bend.in.us Roland Kelly January 17, 2003 President Karen White Vice-President South Bend Common Council Karl King County-City Building Chairperson, Committee South Bend, IN 46601 of the Whole James Aranowski Dear Fellow Council Members: First District Attached for your consideration is a proposed ordinance that would amend Chapter 2 of the South Bend Municipal Code by replacing in its entirety Article 6 entitled Tax Charlotte D. Pfeifer Abatement Procedures. Second District This ordinance is proposed because: Roland Kelly Third District 1. The Council has acknowledged that it is reasonable from time to time to review the procedures for tax abatement to assure that these procedures Karl King continue to be appropriate in light of governing state law and local goals for Fourth District community and economic development. David Varner 2. The Council has further acknowledged that the last ordinance amending tax Fifth District abatement procedures was passed in 1998; and, since that time, the governing state law has been amended. Ervin Kuspa 3. The Council has expressed a desire that tax abatements be granted in a manner Sixth District that provides improved incentives for private sector entities to invest in Sean Coleman property and to execute certain other actions which the Council considers to At Large provide public benefits that would be in the best interests of the City of South Bend. Al "Buddy" Kirsits The tax abatement procedures set forth in this proposed ordinance are the result of At Large research, analysis, deliberation, and a series of meetings conducted by the Council's Karen L. White Community and Economic Development Committee where members of the public and At Large the City of South Bend administration provided input. Kathleen Cekanski-Farrar Council Attorney r . . '."~ ~ wJ 6ti• s. 1 J~~~ ~ 7 ~Zvo3 I h j ~i~l ~~.r r t ~ r. ~yss~...,.a..~.~..,.........,~.~.a...£