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Home My WebLink About11283-26 Ordinance Authorizing Payments in Lieu of Taxes for Western Avenue I, LLC ORDINANCE No . 11283-26 Passed by the Common Council of the City of South Bend,Indiana June 22, 20 26 Attest: City Clerk Bianca L. Tirado Attest: )---- - President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana June 24, 2026 k • % City Clerk ianca L. Tira o Approved and signed by me J t ^t L 20 26 kitik --- Mayor 7.;ipeo 1,. ‘i.1 117 1.1.1.4% 0-0 ,',..•, A, A_1-.1..i,',•': Z 1865 ` SUBSTITUTE BILL NO. 31-26 ORDINANCE NO. 11283-26 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING PAYMENTS IN LIEU OF TAXES FOR WESTERN AVENUE I, LLC STATEMENT OF PURPOSE AND INTENT The City of South Bend, Indiana(the"City")is a duly organized municipal corporation and political subdivision under the laws of the State of Indiana, and the Common Council of the City is the legislative body of the City (the"Common Council"). Western Avenue I,LLC,an Indiana limited liability company(the"Owner")has confirmed to the City that the Owner will develop, own, and operate an affordable rental apartment facility on the+/- 8.81 acre site located at 628 West Western Avenue, South Bend, Indiana and identified as Parcel Number 71-08-11-426-001.000-026 in the St. Joseph County Assessor's records which real estate is legally described on Exhibit A attached hereto (the "Property"), and known as the Western Avenue Transformation District (the"Project"). The Project will be developed, constructed, and operated for the purpose of providing housing to income eligible persons under the federal low-income housing tax credit program in 26 U.S.C. § 42 and will be subject to an extended use agreement under 26 U.S.C. § 42 (the"Extended Use Agreement")as administered by the Indiana Housing and Community Development Authority ("IHCDA") for a period of at least fifteen(15)years. Pursuant to the Extended Use Agreement, the Project will have 110 units available for rent to residents whose incomes will be at 60% or less of the applicable area median income and 46 unrestricted units. Additionally, pursuant to the Extended Use Agreement, the affordable units within the Project will be limited to charging rents as determined in accordance with the IHCDA Extended Use Agreement and, from-time to time, by the United States Department of Housing and Urban Development(the "Restricted Rents"). The Owner qualifies as a "property owner" under I.C. 36-1-8-14.3(d) and the Owner has agreed to make certain payments in lieu of taxes (each payment, a"PILOT", and collectively, the "PILOTs"), and the City and Owner desire to document that agreement in a written agreement(the "PILOT Agreement"). The City is authorized to enter into the PILOT Agreement pursuant to I.C. 36-1-8-14.3 et seq.,and pursuant to I.C. 36-1-8-14.3(e),subject to the approval of a property owner,the governing body of a political subdivision may adopt an ordinance to require the property owner to pay PILOTs at times set forth in the ordinance with respect to property that is subject to an exemption under I.C. 6-1.1-10-16.7. Pursuant to I.C. 6-1.1-10-16.7, for assessment dates after December 31, 2021, all or part of a property is exempt from property taxation if the owner of the property has entered into an agreement to make payments in lieu of taxes under I.C. 36-1-8-14.3. The PILOTs must be calculated so that the PILOTs are in an amount that is: (1) agreed upon by the property owner and the governing body of the political subdivision; (2) a percentage of the property taxes that would have been levied by the governing body for the political subdivision upon the property if the property were not subject to an exemption from property taxation; and (3) not more than the amount of property taxes that would have been levied by the governing body for the political subdivision upon the property if the property were not subject to an exemption from property taxation. The form of the PILOT Agreement is attached to this Ordinance as Exhibit B. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: SECTION I. Recitals. The above recitals are incorporated herein by reference as though set forth fully herein below. SECTION II. Approval of PILOTs. As more specifically provided in accordance with the form of PILOT Agreement, the Common Council hereby approves PILOTs for the Property in annual sums as follows: Year 1 $ 21,000 Year 2 $ 21,630 Year 3 $ 22,279 Year 4 $ 22,947 Year 5 $ 23,635 Year 6 $ 24,344 Year 7 $ 25,074 Year 8 $ 25,826 Year 9 $ 26,601 Year 10 $ 27,399 Year 11 $ 28,221 Year 12 $ 29,068 Year 13 $ 29,940 Year 14 $ 30,838 Year 15 $ 31,763 SECTION III. Authorization and Approval of Form of PILOT Agreement. The Common Council hereby authorizes and approves the form of the PILOT Agreement and authorizes its execution and delivery by the Mayor on behalf of the City substantially in the form attached hereto and incorporated herein by reference as Exhibit B, all for the purposes contemplated herein. SECTION IV. Recording of Executed Ordinance. The City Clerk is directed to provide an executed copy of this Ordinance, as approved, and a copy of the executed PILOT Agreement to the Owner for the Owner to record with the St. Joseph County Recorder's Office and for the Owner to file the recorded Ordinance and PILOT Agreement with the City Clerk's Office, the St. Joseph County Assessor's Office, the St. Joseph County Auditor's Office, and the St. Joseph County Treasurer's Office. SECTION V. Further Authorizations. The Common Council hereby requests, authorizes, and directs the Mayor, Common Council President, Controller and the City Clerk, and all official officers, members, employees, and agents of the City, and each of them, for and on behalf of the City,to negotiate,prepare, execute, and deliver any and all other instruments, letters, certificates, agreements, and documents as are determined to be necessary or appropriate to consummate the transactions contemplated by this Ordinance, and such determination shall be conclusively evidenced by the execution thereof The instruments,letters,certificates,agreements, and documents necessary or appropriate to consummate the transactions contemplated by this Ordinance shall, upon execution, as contemplated herein, constitute the valid and binding obligations or representations and warranties of the City, the full performance and satisfaction of which by the City is hereby authorized and directed. SECTION VI. Effectiveness. This Ordinance shall be in full force and effect from and after its adoption and the procedures required by law.This Ordinance remains in full force and effect until repealed or modified by the Common Council, subject to the approval of the Owner. [Signature Page Follows] Al Duly passed and adopted on this ZZ day of , 2026 by the Common Council of the City of South Bend, Indiana. Canneth J. Lee, t o cil President South Bend Common Council Attest: Bianca L. Tirado, City 1 k Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the 2y1*'' day of June , 2026, at H o'clock p.m. v ea4 Bianca L. Tirado, Cit 1 Office of the City Clerk Approved and signed by me on the ZS day of , 2026, at Li o'clock .m. Jam Mueller, Mayor City of South Bend, Indiana EXHIBIT A Property Glass House Survey Of Lots 56 57 58 And Lots 5 To 10 Touhey And Hagerty EXHIBIT B Form of PILOT Agreement (See Attached)