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HomeMy WebLinkAbout6.I.(1) Agreement Facade Matching Grant Program, Mishawaka Ave.~.~~~) AGREEMENT FOR PROGRAMS AND SI?12VICES WITH URBAN ENTERPRISE ASSOCIAITON OF SOUT1i I3I;ND, INC. (FARAD[: MATCHING GRANT PROGRAM) (MISHAWAKA AVENUE.) 2008 THIS AGREEMEN"T (this "Agreement") is made effective the _ day of ?008, by and between the Ci1'Y OF SOUTH 13I:ND, iNllIANA, a municipal corporation organized and operating under the laws of the State of Indiana, acting by and through the South Bend Redevelopment Commission, the governing bode of the City's Department of Redcvclopment (collectively the '`City" or the "Commission°) and URBAN ENT[?RPRiSF. ASSOCIATION OF SOUTII BEND, YNC. (the "Organization"). IZI~CfhALS WIIERI~;AS, the City's commercial corridors act as gateways to our City and the City finds that improving the aesthetic appeal of the City's commercial corridors will encourage not only additional investment in the Citv~s commercial corridors but in their stu~rounding neighborhoods and in the City more generall}~; and WHEREAS, the investment necessary to improve the aesthetic appeal oP the Citv~s commercial corridors to prevent or eliminate the: conditions set forth in Indiana :'ode ~ 36-7-1-3 and to encourage the necessan~ additional investment in the corridors could not occur through regulatory processes ~or the ordinary operations of private ~,ntcrprise without public involvement and WEll?REAS, the City desires to encoura~~e investment in its commercial corridors Lo improve their aesthetic appeal and encourage additional invesllnent not only in the corridors but also in their surrounding neighborhoods and in the City more generally: and WHEREAS, the City linds that the area comnu~nly described as the 1Vlisha~~-aka Avaiue Commercial Corridor and depicted at ;Appendix 1 (die "Corridor") is a vital corridor to the City and its surrounding neighborhoods and that providing for additional iny~cstment in the Corridor ~~'ill serve the Corridor, its surroundim~ nei~zhborhoods and the residents of the Citv: and WHEREAS, in Light of the lorcgoing. the Cite desires to pro~~ide for the r_stablishmcnt. development and administration of ccrt~iin services and programs. commonly described as the Facade ly~Iatchimz C;rant Program and more particularly described at Exhibit :A (the "Pro~~ram~~) to s~n~~ the Corridor and t~'VHEREAS. the Organization is an Indiana nonprofit corporation ~~hose mission is to increase the number of jobs in the City by retention and expansion of existing businesses and attraction and development of new businesses and to improve the quality of lice of City residents, improve their employability and fill jobs within the City with City residents, and WHEREAS, the Organization has represented that it is a duly existing corporation under Indiana law and exempt I~rrnn federal income taxation under Section ~01(c)(3) of the Internal Revenue Code, as evidenced by the copy of the Indiana Sceretary~ of State's Certificate oCExistence Cor the Organizatio^ and the copy of its Tax- cxemption letter issued by the Internal [Zevenue Sergi°ice, respectively attached as ~'~ppcndix lI and At~Pcndix iii. and WHEREAS, the Organization further represents that it is a neighborhood development corporation, as such term is used in huiiana Code ~ 36-7-14 (the "net"). ai7d that is I~as tal<cn all corporate action necessary to enter into ibis Agreement; and WHEREAS, the Organization has the expertise and resources to provide 1'or, oversee and administer the Pros ram; and WHEREAS, the City is empowcsrd under Indiana Code ~ i6-7-14- 122(a)(26)(I3) to enter into this Agreement to provide Cor Urc construction, rehabilitation, or repair oCcommercial property with the boundaries of the South Bend Redevelopment District: and WHEREAS, the South Bend Common Council, the le~~islative body of the City. pursuant to Ordinance No. 9757-07. has appropriated One Million and 00/100 Dollars ($1.000,000.00) to be used ~~-~ithin the Cily~s commercial corridors v<ith approximately !~wo llundred fifty Five Thousand and OOi 100 Dollars (52>j.000.00) being allocated to the. Corridor; and WHEREAS, the Commission desires to allocate for the Pro~ara~n tu~dcr the terms of this Agreement Dive "hhousand and 00!I00 Dollars ($x,000.00) (the "Contract /\mottnt") as a portioia oC the share allocated to the Corridor. and as required by Indiana Code ~ 5-22-17-3, the Contract Amount does not exceed the amounC appropriated Cor such purpose;and WHEREAS. the Cite believes that the. actions amtemplated by this Agreement are in the best interests of the health. safety and wcllare of the City and its residents and that such actions compl}' ~-~'iih the public purposes and applicable provisions of state and local law: and ~'OW THEREFORI?, for and in consideration of the mutual covenants and promises contained herein. the Cite and the Organization hereby agree as Collo~tis: ~. Conn•uct ;1nx~ru~1 ar~d Tenn. hhc Organization shall pro~idc the programs and services set f~~rth at 1?xhibit A on behall of the C'itr. for the Contract :lmounl fair the he~iod commencing January 1, 2008, and ending Dccanbcr 31. 2009. The approved schedule for the Program is set forth at exhibit 13. The Organization shall submit quarterly reports Lo the ConU~act Administrator on March 31. June ~0. September 30 and i;eccmbcr 31 of each year this Agreement is i^ effect showing the progress of the Program, including a summary of all transactions detailing each recipient by name, address, amount of funds attributable to the Contract Amount used, the anxnmt of private invesunent in the Corridor, the project commencement date, and the project completion dale. 2. Prop=rum l3~id~=et cmd 13uch>el R1r~cG ica~ron. fhe approved Program 13ud~~ct is set forth at Exhibit C (the "Budget°). The Organization shall not spend more than the amount for each line item. as described in the Budget. without the prior written consent of the Cit}. hhe Organization shall only rue the Contract Amount to implement the Program or provide the services in conformance ~~-ith the Budget and for no other purpose. 3. ConrPensalk~n for Program. ~fhc Contract amount shall be paid within thirty (i0) days of the ~aucr of: (i) the date the last party hereto executed this a~rcement or (iij the completion of all actions ^ecessarv to appropriate [he funds for the Program. all funds unencumbered for the Program at the expiration oC ibis agreement shall be returned to the City upon the City's written request. any funds attributable to staff or a contract for staff or services shall only be deemed to be encumbered to the extent the percentage of services arc provided through the termination date of this A~~recment. -l. Desr~>n uncl Irn»lementcr/ion of Pro<rram. l~o the extent not set f~~rth in Exhibit A, Exhibit B and Exhibit C. the Organization shall be solely responsible for the design and implementation of the Pro~~ram, wlless specilicall~~ directed other~~-ise by the City. the City's Internal Auditor (as defined herein). or the Director of the Division of ~'onununity Development or any person appointed bv~ said Director or the City to administer this Agreement (lhc 'Contract Administrator"). the Program and this agreement must be performed and administered in accordance with all applicable federal, state and local law. ~hhc Organizatio^ shall use the Contract Amount only for activities related to the Pro<,rram. l~hc Or~~aniz,ation shall llu~thcr enter into a written a~~recment documenting the disbursement o(~Cunds attributable to the Contract Amount. ~. Termination o/~ A~n-ecnaenl. II the Cite Controller mal:cs a wriucn detenninatio^ that funds are ^ot appropriated or othcr~~ise available to support the continuation of this ~ygreement. it shall be canceled. :A determination by the City Controller that funds arc not appropriated or other~~ise available to support the continuation of pertormancc shall be final and conclusi~~c. P,ffectiec thirty (,U) days niter delivery of a ~~~ritten termination notice, the Cite may terminate this Agreement, in ~~-hole or in part fog any reason. if the Cite determines that such termination is in the best interest of the City. "hhc Organization shall be a~mpensated for completion n[ the 4'ro~~ram propcrl~~ done prir~r to the ulfecti~r date of termination. The Cite will not be liable for work un the Pro~~ram performed after the el~iceti~~c date of termination. In no case shall total payment made to the Organization escced the original C~~nuact r\mount. (. Remedies fnr Breach o ~ Co~~rruc/. Failure to complete the Program in accordance with this Agreement may be considered a material breach. and shall entitle the City to impose sanctions against the Organization including, but not limited to. suspension of all payments, and/or suspension of the Organization's invol~°anent in the Program. on behalf of the City. The Orgzu~izatiou shall repay any portion of Use Contract Amount expended [or matters not within the scope of the Program or the Budget. .l4uintcncrnce ufRecords. /lccers cu Recorc/s. The Organization shall keep a ~a-ritten record, in a form acceptable to the City, related to the use and expenditure oCthe Cbnu~act /\mount. Within thirty (30) days of the expiration or termination of this lgrecment. the Organizalio^ shall prop ide City ~~-~i[h a final accounting oC the ttsc and disposition of the Contract Amount by the Organization. Unless otherwise authorized by the City or required by la~~. such records shall be maintained by the Or~~anization for a period ol'four (4) years of the date of expiration or termination of this Agreement. The C)r~~anizatio^ understands and a,*rees to comply with Lhc legal requirements of Indiana Code ti ~-14-3-1 et. secy. (commonly kno~~~n as Indiana's Access to Public Records Act), if applicable, with respect to aII documentation related to the Contract Amount. ~S. ,Audit Regtrirei~aenls. I~he Or~~anization agrees to make all infionl~ation a~~aifable to the Indiana State Board of Accounts, the Citv's lnternal lluditor. and the Contract Administrator as requested to comp]}~ ~~~ith any audit requested related to the ~~ecc;pt ana use of the Contract ilnunult and the Organization's performance in delivering the Program in accordance with the provisions of this Contract. If requested by the C;it<~ or the Contract Administrator. the Organization shall provide the Cite a progress report un the Program. I[ requested by the City or the C'it~~~s Internal Auditor, the Organization shall arrange fora financial and compliance audit of the Contract Amount to be conducted by an independent public or certified public accountant (or as applicable, the lndiana State Board of Accounts) and in accordance ~~,--°ith applicable Indiana State Board of Account standards. ~hhc City Internal Auditor shall mean the City Controller or Acting City Controller appointed pursuant fo lndiana Codc ~~' iCi 4-9-C (the `'City Contrroller") or any person appointed or retained by' the City Conllollcr or the Citv for the purpose o!' auditing the Organization for this Agreement or other agreements of the Cite. 9. Con/IicL~~ o/~Interesl. "l~he Organisation hereby certifies and agrees that no membcr_ officer, or employee of the City. or its designees or agents_ and no member of the governing body of the City of South Bcnd or the Organization (and no one ~4°ilh whom there is a Family or business tic) who exercises any functions or responsibilities with respect to the receipt and use of city funds dunng his or her tenure or for one year thereafter. shall have an}` financial benefit, direct o+~ indirect, in anc conu~act or subcontract or the proceeds thercoC for ~~°orlc to he performed in connection with the Program. "ho the extent the Program involves the awarding of a contract or grant. the Organization shalt not award the same to a person or entits_~ that creates a conflict ol~ ini.erest described in Indiana Code S i-16-1 1 ~.i. I O. IZelcrtivns~{'rit~. ~Ihc Organization shall at all times be an independent d contractor for the performance of the Program rather than an employee of the Citti~, and no act_ action or omission to act by the Or~~anization shall in any way bind or obligate the Cit}~. This Agreement is strictly for the bcucllt of the parties and not for any third-party or person. This ngrcement was negotiated by the parties at arms length and each of the parties hereto has revic~,ved this' /~grccmcnt after the opportunity to consult with independent counsel. Neither party shall maintain that the language in this l~~~recment shall be construed against any signalorv hereto. ~I~hc City and the Organization hereby renounce the existence of any Iorm of agency relationship. }oint venture or partnership between the Orgauizatio^ and the City and agree that nothing contained herein or in any document executed in connection herewith shall be consu~ucd as creating any such r;lationship between the City and the Organization. I1. ,~~~o~ices. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered, whether or not actually received. when deposited in the United States Postal Service, postage prepaid, registered or certified mail, return receipt requested. addressed to the City or the Organisation, as the case may bc, at the address set forth below. Or~~anization: Phil Dzunico, Chairman Lirban f^~ntcr)n~ise Association of South Bcnd, lnc. 227 W..ietlerson Blvd., Suite 1200 South Bend. 1N 46601-18 ~0 C'it~: Pamela C. 1\~lcver. Director Division of Community Development City of South Bcnd, Indiana 227 W. Jefferson Blvd.. Suite 1200 South Bend, 1N 40601-130 12. Equul O1~j~or-timily. "l~hc Organization shall comply with federal, state and local law in ifs hiring and employment practices and policies for any activity cot--°cred by this A<~reement. I3. /:mire ~l~n~een~en[ crr~d Anrenc/yncr~l. This !1~zreemcnt sets forth the entire agreement and understanding between the parties as to the subject matter hereof, and merges and supersedes all prior discussions. agreements. and understanding of any and every nature behveen them. This Agreement may be amended only by separate writing. approved by both the Or~~anizatiou and the Cite. 1-1. ~idclilionul ReJn~esenlcNions. 1~he undcrsi~~ned persons executing and delivering this Agreement on behalf of the Organization represent and ccrtify~ that they are the duly authorized officers of the Or~~anization and have bcc^ fully empower to execute and deliver this Agreement and that all necessary corporate action has been taken and done. l~. ~\'ui~-Co/Lt~sinr~ crncl Accej~iunce. "I~he undersigned attests. subject to the penalties of perjury. that heishe is the properly authorized representative, agent, member or ~~flicer of the Organization and thaC hcishc has not. nor has am' other member. employee. representative, agent or officer of the Organization, directly or indirectly. to the best of his/her I<nowlcd~c. entered into or offered to enter into amp combination. ~; (~~un/y ~~~~~ .t~/nuuuu ~7ut n3'nrl ~o .rafxti;~tu,~~~) ,ao7_~~t~ ?~e,E ~~(1 ucxln s.n;~cidr ~hn~;~~~. ti'y~ ur,~[1 -~~~~~u ~u~ui~~.~x>V su~a ~o uo_iln~~~, ,q~ .ion uoile.[7pisuo~ .~~~~~o .ao ri~t~our ~c~ ams .1 LlL' (J Ii; L~ ,.O ~J~:1lJ~~i lOL! SPLI ~~L~S/.~~f l[iri~ ill,., .x;!' ~ 7~;I~~JJ_! O% 7,UJCLi~7fol: s'J LU]i~;,l~(OS ->1 ~-T'1'W-?~~ 5~'---~-2-~{~~'. ii~~ .':line he~eu; i~~,,~ caused this :1<~recn~enl io be executed as of the day and vcar lust ~~bo~c ~a~riticn. ~'l.-"o' Q)-~ ~~)Ll`-'-- -3-+,1~'7~, 1~1)I.~I~'A, -ii~-3r~~a -?iC"-~-~F~-'-~-~Sd~ ~~~5~)~'-f~,"-"-~~~! ~6+~-~fS-~')'i~~a~i'i' ~~ ~2E;I)F:~-?-.~-'Idl~?V'~' Q)~' ~,~~i'-'-- -3~]~I-~~ 91~i~. -)z~v~c; V'i~~Rdlarr ?OOt Piv,Vrd Vanr•mul~ _ - _ .~®ae#~ ~cra~ laes~~~ ~~®~rnent C ~>rra~nissioth -)a~te~ r, < /~ •?<~< 3005 (~ ~'~. _ .~ ~ ~, s . , S i,~ ncm~rr ~ ~~ ~ ~ n /-' bf ~" ~ L' i Pr.rl~~nr,i~liid~~ - ~~r<~~~~;~„~.~ ~'rz~d~d.Anmc cuo-~glr ~( }'tuned \ana•~rnr~itl~ ©~t-a -~~eac- -~csle~~~-opane3~r Ctimtt~issio€n LXIi113I'1~ A Program llescription I he ;~r~anization steal[ provide the followin<~ services aad programs: I~',~a~~~c~~ iVdatching Grant Program - latablish a program designed to cnax~rage private inv°estment by commercial, industrial, and mixed use property owners or lessees on the Corridor_ Commercial property includes property used prim<u~ily for (i~r-profit, nonprofit, or reli~~ious activities. 'hhe program goal is to promote exterior improvements that enhance the appearance, value and character of the property. The program is not intended to support deferred maintenance. Lessees must provide w~rittcn proof that the property owner has authorized the proposed imj~rovcmcnts. The program shall require: i ~) A maximum of one grant per propcrt}~ address per year. (?) A matching public investment not to exceed seventy Live percent ~7~%) of the total project cost. The maximum grant shall not exceed twenty thousand dollars 020.000}. (3) Projects that create a noticeable visual improvement to the Corridor and arc consistent ~,vith the revitalization action plan for the Corridor approved b~ the Contract Administrator. (~1) T be eligible, the subject property must hay-c proper insurance and ire current on property taxes. ~` C,_ minimum of two (?) estimates from licensed contractors ~- detailing the sa~pe of tivorl: with itemized prices must be obtained bct~~re a project fs approved. Applicants may bid for work on their ow^ grant project if the;' arc licensed andlor qualified to perform the work. f loweva~. ~~hen scrvina as their n.,vn contractor. applicants will not be reimbursed for labor related costs. (6) l3ci~ore anv work is commenced. any required building or sign permits for the grant project iuust be obtain for an applicant to continue to be eligible for the pro~~ram. (7) Specific program guidelines must be established, which clearly establish the grant process and schedule. (mil ~'o funds nuiv be disbursed for a ~arant unless pursutu~t to a ~~ritten c~~nu~act ~~hich ~~ro~~idcd for default conditions consistent wide the program ~~uidclincs and clearly establishes remedies for instances oC dci'^ult. (9) I~o be eligible. an applicant must agree to hold the CitS~ of South f3cnd. Indiana. the Cite of South [3end. Department o~ IZ_edcvelopmcnt and the South Bend [Zcdcvelopment Conu»ission tculicctivcl}~, the'~City") harmless and to indemnity the Cite for any t_iamages or costs related to any claim. suitor demand rclat~~d to am~ action occw~ring as a result of the applicants application or par[icipation ii; the Prop?ram. Under the program, the Follo~~-ing shall be inclibible improvements or costs: (1) improvements in progress or completed prior to Uzc bran[ a~~~ard (?) Interior improvements not associated ~ti~ith c~tcrior uv~orl: ,~` I~csidential building improvements a. lZemoval or enclosure of architccturall}~ important features i ~ i ~ti izxlo~a- or door bars or security ~~atcs Ib) Demolition ofstructures (7) ~Utcrations that decrease the accessibilit~~ for people ~~~ith disabilities (8) l~ciinancin<~ oCe~istio~~ debt (9? I'roperiy acquisition (10) lm~iromiicntal consultin<~ or hazardrnis materials testing services or abatement or clean-up costs. f?~~~ai3I7' ~a Rya°a~~w~ana ~cF~cc9~~~. ~'ontinuc ~~ Progran; consistent with this A<~recment. .-. Continue marl:etin~~ for the Pro~~r~am and coniinuc processii~~ applications. ~. Kevicw. af~alvre aid have (hganiralion sta11' in a position ro recommend or deny application ~~ithin llftccn (15) business days of rcceii?t. 4. ~l.ppro~~e or reject application ~~ithin thirty (~0) days Ilom receipt or notify applicant ofa dclicicncv or special circun~stancc requirin~3 additional delii~cration. ~ Provide notice to applicant of appro~~al or rejection ~a;iti~in five !5) ds~irs of appro~~al or rejection. 5 'Monitor project and disburse funds amsistrnt ~.~ith Pro~~ran-i ~~uidclial~s and this :A~~rcericnt. (~~~ (~~7O~1~~ :SlLI'J LL17S.fRC~SC~~ III C: I'1 i~Ll lL~:11P~1 ~lCii; 71?:..[UC 1jC?L',i CL?L'~y' S~.)LCil . ~~408' ~`fA d~B ~.8~Q1~u~ ~s' ~ ~ -, ~ ~ ~ ~ >. ~- .w``d ~k r~ Logan Street ~ ~a ~ ~ ~~~ eddy Stre®t `~~~~~ ~9 ~~ '~': ,~, ~~,\; [itl ~~~ :~ ~ ~, ~~ ~ ~~~ .~ y F ~~~~ ~ ~ ~~A ~~ ~~~~ ~ySj x ~/ 9 i~. d n~ o~ 0 -, ~' e ro ~°] n b B. r 7 ~..s~ :~~~~~:1'a9~~; ~a~~a~~c~ s~a~a~~~oa~ ~<~~~ H~~aaa- ~a~~t~c~n~aa~~ ~~Rna ~82~ ~~a-~~as~~~ze~t0e~r~ a~ ss~ ;;QSQar,~ sg~a~~~axa~;y~ I` di •i _ i''7E'Ca Ull. .. ' ~ ~ AI 1 - ~ _. ~I .. I 1~1'. r. ~ '_ ~_ I~ _ i~_c7i 11+x._ ~_Yti vQU ~...^C.JJ~I'~tii i iT1flIC I li'~~. t! il' i,,i -1 ~~_ h 3c _ ~ ~=1 _ _. ~. i .. ~ i'.:: r it I'i=~l.cCl. _ '~_I r.. ~~ ~I L~;c ,~ II',G ~1~ Ii IIGi ii~,IGf} .L ~ .-:C~ i ~-Ctil~ I _l i.: S iU '~.2J U ~ ICI°U .I IIS '~ ~C~r, -__ ..f rC~`.~~.'I"`L31". i?i'S~~af O~IG nJi'',S I!_If1C~5~ r.-~ICF= ~I'!iSl~il 1_j '-(~/L, ?4~:~~~~o~ ~e~art~nen~ a¢ tie Treasured ~, MAC ~~ ~; 9 Person to Contact: f'iY' Daume ~~~~>.~.se Association ,,~cd Inco l~~eleplione Number: (2021 566°384:4- ~',~ , ~ r^y wilding ~aiana 4660x. Refer Reply to: EoEO:R~ 2~~°4 Oate: ~',FR 2 9 i~~ ,t:~-,;~e~_ hdentification Numbers 31~111874G Key Districts Cincinnati tc:counting Period Endinge December 31, 1990 ~~!r-rcfs_'~._'~on Status Classification; 5Uy(a) (3) Form 990 Requiredo Yes -~c!. _r1 information supplied, and assuming your operations ~ ~ s!~at.ed in your application for recognition of exemption, ~= ;:!~.~-c, ~!e~.ermined you are exempt from federal income tax under _- S0~_(a) of the Internal Revenue Code (the Code) as an ~~-c;r~n_ ~~:n,~~.~_0:~1 described in section SO1(c) (3) . >:~~ 1,ca~~re further determined that you are not a private °o~~~_~-,na~~-~_cn o:~ithin the meaning of section 509 (a) of the Code, -.- ~,-c~~_ are an organization described in the secticn(s) above. -,~ou~_ sources of support, or your purposes, character, or rnei,~.oc~cr° o;o_eration change, please let your key district know so ~'n_a_- o~°.:i_ce can consider the effect of the change on your exempt _t,a~`u~ at~d ~.°oundation status. In the case of an amended document ~~- ].~~%1_a~ss, p7.ease send a copy of the amended document or bylaws to roti_._ e~% district, Also, you should inform your key District __~_~C-'C.O-.'~ -- &)-=- Changes 1i1 your name Or address. `~ of 5anuary 1, 1984, you are liable for taxes under the sec-= ~]_ Trc.sur_ance Contributions Act (social security taxes) on ~~ ~~-~-~ ..~_~~~'~~ of_ 5100 or more you pay ~to each of your employees '.~ ~ ~«_i.endar year. You are not liable for the tax imposed ~~~ d'ederal IInemployment Tax Act (FUTA). ~c ycnt are not a private foundation, you are not subject '.-, ,,., <,c~i_Se Laxes under Chapter 42 of the Codeo However, you are ~~ -r~ ~~t~~~ ically exempt from other federal excise taxes. If you ';~ ~~, .~~ ,;i~estions about excise, employment, or other federal _._ ~~~~~~ contact your key District Director. :. f]; ~i ;~rprise Assoc,iati.on of South Bendo Inc. <=~-?.~~rs may deduct contributions to you as provided ir; section }:xe C'odeo Bequests, legacies, devisesF transfers, or gifts ~;: fczr 'your use are deductible fo?° .federal estate and gift -_ ~:_x_:°R:~osas if they meet the applicable provisions of sections ...,.- ~s.f}5; and. 2522. of the Codea 1?„nar_~s, (including private fourdat.ions) may rely on this ruling .._,._. he Internal Revenue Service publishes notice to the _~=~:~°-?°y, I-Towever, if you lose your 509(a) status as shown above, -„:,%>~:~> rather than private foundations) may not rely on the .--.>_s~.~°i.cation shown above if they were in part responsible for, ~~:~°,=. awax°e ofo the act that resulted in your loss of such i:'c'r'_t~~ or they acquired knowledge that the Internal Revenue ___-,-.c.e ;gad given notice that you would be removed from that __. _:-.~_:i_cationo Private foundations may rely on the classification :1_c,r,r~ as you were not directly or indirectly control led by them ?:,~; c?_isqualified persons with respect to theme However, private °;:;,.~.,da-~~icns may not rely on the classification shown above if they -.-~~ ~:°e d: }cnowledge that the Internal Revenue Service had given _:= ::hat you would be re.~oved. from that classificaticn~ 5:~" your organization conducts fund--raising everts such as __..-.__?_ dinners, auctions, membership drives, etc., where something --_ ~ai_u.e is received in return for contributions, you can help your _.:~-;os~ avoid difficulties with their income tax returns by ~~'~_s'i:in.g them in determining the proper tax treatment of their ~=one:-.~L,7_ions, To do this you should, in advance of the event, _-..~;-~r.i.ne the fair market value of the benefit received and state ~, ;tour fund-raising materials such as solicitations, tickets, aeceipts in such a way that your donors can determine how much i_s deductible and how much is not. To assist you in this, the _;-nice has issued Publication 1391, Deductibility of Pavnents Mace ~o_Cr~~anizations Conducting Fund-Raising Events. You may obtain ~•.}~.^s of Publication 1391 from your key district office. :n the heading of this letter we have indicated whether you r, ~ _..s~::~:i.le Form 990, Return. of Organization Exempt from Income Taxo )_~_ °us is indicated, you are required to file Form 990 only if your ::_,ss ~~eceipts each year are normally more than $25,0000 1f your ~~_oss ~_eceipts each year are not norally more than $25,000, we ask i.i-at v./ou establish that you are not required to file Form 990 by :o~npleLii~g Part I cf that Form for your first year. Thereafter, ~_~ ,~~ ~. I.1 not be required to file a return until your gross receipts =gin:caed the $25,000 minimum. For guidance in determining if your ;~:c-~s~ receipts are "no rnally" not more than the $25,000 limit, see ]?~ ]~nsructions for the Form 990. If a return is required, it r,r~:!-~ ~e filed by the 15th day of_ the fifth month after the end of ;re'~t_ry a,-A:nu.al accounting period. A penalty of $10 a day is charged ~~..~ :_,. :cecurn is filed late; unless there is reasonable cause for _•, : ~ssoc~.at.ian of South Bend, rnc. ~av :iaaximum penalty charged cannot exceed $5,000 or 5 _ ,7~,~a~ gross receipts for. the year, whichever is less P ~~; ,~ ~rAa.~y also be charged if a return is not complete, so - = ~ ~ <>~~ ~~~ ryYOUr return is complete before you file it. _ z~:~.~ ~eciuired to make your annual return available for _- ~ 'i~:: •+w?.on for three years after the return is due, You are - ~. ~_5~rc~ to make available a copy of your exemption _~ _ ~:,+ a,~.nd supporting documents, and this exemption letter, ~. ~ r~~.}ce these documents available f_or public inspection may ~~ . _ ~.~~° ~~.o a penalty of $10 per day for each day there is a _ ~. r:~:+axlp].y (up to a maximum of $5, 000 in the case of an ~!_~;:.~~.7 ~ See Internal Revenue Service Notice 88°120, 1988-2 _ additional informationm _._: ~aot required to file federal income tax returns unless ~~° _~;t;jec°t. to the tax on unrelated business income under r.:i.~> ~. c; i= the Code. If you are subject to this tax, you must L,:- i-_c~oma tax return on Form 990-T, Exempt Organization ___: i;~nc,xne Tax Return. In this letter we are not determinir.a ~~~~.: ~~~~ of ycur present or proposed activities are unrelated ~~ - oi~. ~.r!ess as defined in section 513 of the Code. _..-. ti':eC an employer identification number even if you have t~,._~~-~_~s~ Please use that number on all returns you file and 1. ;_,-~=pondence with the Internal Revenue Service. ;- ~.:.._. ~~-~forming your key District Director of this ruling. .7:~.Ss letter could help resolve any questions about your ~~ ~.>i ~~ai~~~s and foundation status, you should keep it in your ~~ ~~~r ~,:~ ,°ec-ords, ,_:,. gave any questions about this ruling, please contact <<~~~~_ ea1-!.ose name and telephone number are shown in the heading -..~: i:i~:',Z.=;; _~.=`-~(.:L-`-?L".. i'Or Otht'r maiter5, 1nCllldliig glie~i0;.5 COnCer;~1P.J ~~ i ~~c :ceq:uirements, please contact your kev District Director. Sincerely, Jeanne S. Gessay Chief, Exempt Organizations Rulings Branch 2