HomeMy WebLinkAbout6.I.(3) Agreement Facade Matching Grant Program, Miami Street~ ~ ~- ~3~
AGREEMENT FOR NROGRAMS AND SI?RV[CES W[TH
URBAN ENTERPRISF, ASSOCIA"TION OF SOUTH BEND, INC.
(FA('AllE MATCHING GRAiVT VROGRAM)
(MIAMI STREET)
2008
THIS AGREEMENT (this "Agreement') is made effective the day of
2008, by and bctvv~ccn the CITY OF SOU"hH BEND, INDIANA, a
municipal corporation organized and operating under the taws of the SCatc of Indiana.
acting by and through the South [3end Redevelopment Commission. the governing body
of the City's Department oI~ Redevelopment (aillectively the "City' or the
'`Commission") and URBAN ENTERPRISE ASSOCIATION OE SOUTH BEND,
INC. (the -'Organization").
RECI"I~AL.S
WHEREAS, the City's commercial corridors act as gateways to our City and the
Cit}' tinds that improving the aesthetic appeal of the City~s commercial corridors will
encourage not only additional investment in the Cit}~~s conul~crcial corridors but in their
surrounding neighborhoods and in the Cit}' more gcnerall~ _ and
WHEREAS, the investment necessary to improve the aesthetic appeal of the
City's commercial corridors to prevent or eliminate the conditions set forth in Indiana
Code ~~' 36-7-1-3 and to encow~age the necessary additional investment iu the corridors
could not occur through regulatory processes or the ordinary operations of private
enterprise without public involvement; and
WHEREAS, the City desires to encourage im-°estment in its commercial corridors
to improve their aesthetic appeal and encourage additional investment not only in the
corridors but also in their surrounding neighborhoods and in the City more generally: and
WIIEREAS, the Ci[y finds that the area commonly described as the'Vliami Street
Commercial Corridor and depicted at Appendix I (the "Corridor") is a vital corridor to
the City and its surrounding neighborhoods and that pro~~iding for additional investment
in the Corridor will scree the Corridor, its surrounding neighborhoods and the residents
of the City; and
WHEREAS, in li~~ht of the foregoing. the Cite desires to provide for the
establishment. development and administration of certain services and programs,
commonly described as the FaFade Matching Grant Pro~~ram and more; particularly
described at t;xhibit A (the "Program") to sen°c the Corridor: and
WHEREAS, the Organization is an Indiana nonprofit corporation whose mission
is to increase the number of jobs in the Cit}~ by retention and expansion of existing
businesses and attraction and developman of new businesses and to improve the quality
of life of City residents. improve their employability and fill jobs within the City with
Citv residents; and
WHEREAS, the Organization has represented that it is a duly existing
corporation under Indiana law and exempt (iom federal income taxation under Section
501(c)(3) of the Internal Revenue Code. as evidenced by the copy of the hidiana
Secretary of State's Certificate of f~xistence for the Organization and the copy of its Tax-
cxemption Letter issued by the Internal Revenue Service, respectively attached as
\nnendix II and l\ppendix []I; and
WHEREAS, the Organization further represents that it is a neighborhood
dcvclopmcnt corporation_ as such term is used in [ndiana Codc ~ ,6-7-14 (the "ncf')_
and that is has taken all corporate action necessary to enter into this Agreement; and
WHEREAS, d1c Organization has [he expertise and resources to provide for.
oversee and administer the Program; and
WHEREAS, the City is empowered under [ndiana Code ti 36-7-I4-
12.2(a)(26)(I3) to enter into this ~lgrccmcnt to provide for the construction. rehabilitation..
or repair of commercial property with the boundaries of the South Bcnd Redevelopment
District: and
WHEREAS, the South aced Common Council, the legislative body of the City.
pursuant to Ordinance 1~0. 9787-07, has appropriated One Million and 00/100 Dollars
(51,000.000.00) to be used within the City~s commercial corridors with approximately
Forty live Thousand and 001100 llollars ($4.000.00) being allocated to the Corridor:
and
WHEREAS, the Commission desires to allocate for the Program under the terms
of this /\greement 1 ivc Thousand and 00/100 Dollars ($5.000.00) (the "Contract
Amount') as a portion of the share allocated to the Corridor, and as required by Indiana
Code ~ 5-?2 -17 -3, the Contract Amount does not exceed the amount appropriated for
such purpose; and
WHEREAS, the City believes that the actions contemplated by this Agreement
are in the best interests of the health, safety and «°elfare of the City and its residents and
that such actions comply with the public purposes and ~~ipplicable provisions of state and
local law: and
NOW TIIEREFORE, for and in consideration of the mutual covenants and
promises contained herein, the City and the Or~~anization hereby agree as follows:
L Conlruc! .4nwi~nl co~cl perm. The Urganizatio^ shall provide the programs
and services set Iorih at Exhibit A on behalf of the Ci[v. f~>r the Contract Amount fbr the
period commencing January 1. 2008, and ending December 31. 2009. ~fhe approved
schedule for the Program is set forth at I'xhibit B. The Organization shall submit
quarterly reports to the Contract I\dministrator on March ~l. lone 30. September 30 and
December 3 t of each year this Agreement is in effect showing the progress of the.
Program. including a summary of all transactions detailing each recipient by name.
address. amount of funds atu~ibutable to the Contract Amount used, the amount of private
investment in the Corridor. the project commencement date and the project completion
date.
Z. Pro~~r~am l3nd~ret and I3uck~c/ ;19oc(ifica/ion. The approved Program
Budget is set lorlh at F~xhibit C (the "Budgct~~). The Organization shall not spend more
than the amount for each line item, as described in the Budget, without the prior writta~
consent of the City. The Organization shall only use the Contract Amount to implement
the Program or provide the services in conformance with the Budget and [~~r no other
purpose,
3. C'ot~rt~cnstr~ron fbr Progrurn. 1~hc Conu<ict Amount shall be paid within
thirty (>0) days of the latter of: (i) the date the last party ha•eto executed this Agreement
or (ii) Ule completion of all actions necessary to appropriate the funds for the Program.
All funds unencumbered for the Program at the expiration of this ngrcement shall be
returned to the City upon the City's written request. Anv 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 ngrcement.
-l. De.ci~rn uncl lmplementulioy7 nfI'rn~rrum. "I~o the extent not set forth in
Exhibit ~, Exhibit B and I~:xhibit C, the Or~,*anization shall be solely responsible for the
design and implementation of the Program. unless spcciiically directed otherwise by the
City, the City's Internal Auditor (as defined herein), or the Director of the Division of
Community Development or any person appointed b~~ said Director or the City to
administer this Agreement (the °Contract Administrator ~). The Program and this
Agreement must be performed and administered in accordance with all applicable
federal, state and local law. The Organization shall use the Contract Amow~t only for
activities related to the Program. fhe Organization shall further enter into a written
agreement documenting the disbursement of funds attributable to the Contract Amount.
~. Tci~nunation o/ A~~reemen~. If the Cite Controller makes a ~{ritten
determination that funds arc not appropriated or otherwise available to support the
continuation of this Agreement, it shall be canceled. A determination by the City
Controller that funds are not appropriated or otherwise available to support the
continuation of performance shall be final and conclusive. I:Ptcctive thirty (30) days after
delivery of a written termination notice, the City may terminate this Agreement, in whole
or in part, for an}° reason. if the City determines that such termination is in the best
interest of the City. ~I~hc Organization shall be compensated for completion of the
Program properly done prior to the effective date of termination. The City will not he
liable for work on the Program performed alter the effective date of termination. In no
case shat[ total payment made to the Organization exceed the original Contract Amount.
1. Rerneclies fir L3reuch of Contract. 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 involvement in the
Program, on behalf of the City. The Organisation shall repay any portion of the Contract
Amount expended for matters not within the scope of the Program or the Budget.
.-14aintenunce o/~Recor~c~'s, ilccc~s.r to Recorclc. ~I11c Organization shall keep
a written record_ in a form acceptable to the Cite, related to the use and expenditure ol~the
Contract Amount. Within thirty (30) days of the expiration or termination of this
Agreement, the Organization shall provide City ~~°ith a linal accounting of the use and
disposition of the Contract Amount by the Organization. t~nlcss otherwise authorized by
the City or required by law, such records shall be maintained by the Organization for a
period of four (4) years of the date of expiration or termination of this Agreement. The
Organization w~derstands and agrees to comply with the legal requirements of Lndiana
Code ~ 5-14-3-1 et..cecj. (commonly known as Indiana's Access to Public Records Act),
if applicable, with respcct to all documentation related to the Contract Amount.
R. Audrl Regrriren~ef~is. The Organization agrees to make all information
available to the Indiana State Board of Accounts, the Citv's Internal Auditor. and the
Contract Administrator as requested to comply with any audit requested related Lo the
receipt and use of the Contract Amount and the Organization's performance in delivering
the Program in accordance with the provisions of this Contract. If requested by the City
or the Contract Administrator. the Organization shall proeide the City a progress report
on the Program. If requested by the City or the City's Internal Auditor, the Organization
shall arrange for a financial and compliance audit of the Contract Amount to be
conducted by an independent public or certified public accountant (or as applicable, the
Indiana State Board of Accounts) and in accordance ~~ith applicable Indiana State Board
of Account standards. The City hrtcrnal Auditor shall mean the City Controller or Acting
City Controller appointed pursuant to Indiana Code ~ 36-4-9-6 (the "City Controller")
or any person appointed or retained by the City Controller or the City for the purpose of
auditing the Organization for this A<arccment or other agreements of the City.
9. Conflicts of~Inleres/. "Ihe Organization hereby certifies and agrees that no
member, oClicer, 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 with
whom there is a family or business tie) who exercises any functions or responsibilities
with respcct to the receipt and use o1~ city funds during his or her tenure or for one year
thcrealter, shall have anv financial bcneiit, direct or indirect. in anv contract or
subcontract, or the proceeds thereof, for wort: to be pa-tormcd in connection with the
Program. "ho the extent the Program involves the awarding of a contract or <~rant, the
Organization shall not award the same to a person or entity that creates a conflict of
interest described in Indiana Code fi ~ 1(-1 1-~.>.
10. Relutionshi». The Organization shall at all times be an independent
4
contractor for the performance oC the Program rather than an employee of the City, and
no act, action or omission to act by the Or~,~anization shill in any ~~av bind or obligate the
City. This Agreement is strictly for the benefit of the parties and not for any third-party
or person. This Agreement was negotiated b}~ the: parties at arm's length and each of the
parties hereto has reviewed this Agreement after the opportunit}< <o consult with
independent counsel. Neither party shall maintain that the language iu this Agreement
shall be construed against any signator}~ hereto. l~he Cite and the Organization hereby
raxxulce the existence of any form of agency relationship, joint venture or partnership
between the Organization and the City rind agree that nothin~~ contained herein or in any
document executed in connection herewith shall be construed as creating an_y such
relationship between the City and the Organization.
11. '~~~irces~. Any notice required or permitted to be delivered hereunder shall
be dcaned to be delivered. whether or not actually reccived_ when deposited in the
United States Postal Service, postage prepaid, registered or certified mail return receipt
requested, addressed to the City or the Organization, as the. case may bc, at the address
set forth below.
Or~~anization:
Phil Damico, Chairman
Urban I/ntcrprise Association
of South BcncL Inc.
227 W..IelTcrson Blvd., Suite 1200
South Bend. IN 46601-1830
City:
Pamela C. 11ever. Director
Division of Comnuulity Development
Citti of South Bend. lndi~uza
'`'7 W..Icfferson Blvd., Suite 1200
South Bcnd. 1N 46601-1830
!Z. E'c~iiul Uppnrnrnily~. The Organization shall comply ~~-ith )cderal, state and
local law in its hiring and employment practices and policies for anv activity covered by
this A~rccment.
13. Entire A~rreemeni uncl Amendment. ~fhis Agreement sets lorth the enure
a~~rccment and understanding bet~~~een the parties as to the subject matter hereof, and
merges and supersedes all prior discussions. agreements, and understanding of anv and
every nature between them. This Agreement may be amended only by separate writing.
approved by both the Organization and the City.
l-l. Addilior~ul Rcpreser~talions. l~hc undersigned persons executing and
delivering this Agreement on behalf of the Organization represent and certify that they
are the duly authorized o1licers of the Organization and have been fully empower to
execute and deliver this Agreement and that all necessary corporate action has been taken
and done.
1 ~. No~~-Co/lus~ion unc/ Acce~~la~~re. The undersigned attests, subject to the
penalties of perjury, that he/she is the properly authorized representative, agent member
or ofliccr of the Organization and that heishc has not. nor has anv other- member,
employee, representative, agent or offiiccr of the Organization. directly or indirectly.. to
the best of his/her know°Icdgc. entered into or offered to enter into any combination,
collusion or agreement to receive or pay. and that he/she has not received or paid any
sum ol~ money or other consideration for the ctccution of this Agreement other than that
which appears upon the face hereof.
/Remainder ref ~~u~re inlen/ionn!!Y /ell hluizkj
6
[N WITNF;SS WHEREOF', the Parties hereto have caused this Agreement to he
executed as of the day and y=car first above vti~ritten.
CITY OF SOUTH BEND, INDIANA, URBAN ENTERPRISF, ASSOCIATION
llEPARTMENT OF REDEVELONMENT OF SOUTH BINll, [NC.
Date: , 2008 Date: `, ~~.'~~ "'~~ i > '~ 3008
Priniec Aonte unc /~l c
South Bend Redevelopment Commission
j.. ~~. ~'
~;,~~,~,,r,~~e
„ . i s
Proi4¢ Annu~ rnu l ~n r ~ _
Prniler Mime ~nx lit r
l'i~uve ande oq< Tile
South Bend Rede~~elopment Commission
rx«u3i1~ ~
Program Description
I~hc Organization small provide the follo~~~in« services and programs:
F'aFade Matching Grant Program - Establish a program designed to
encourage private investment by commercial. industrial, and mixed use property
owners or lessees on the Corridor. Commercial property includes property used
primarily for for-profit, nonprofit. or religious 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 written proof that the property owner has authorized the
proposed improvements. Che program shall require:
(1) A maximum of one gram per propcrt} address per year.
(2) A matching public im~esUi~ent not to exceed seventy fiive percent
(75°/a) of the total project cost The maximum grant shall not
exceed tea-cnty thousand dollars (520.000).
{>) Projects that create a noticeable visual improvement to the
Corridor and arc consistent with the revitalization action plan for
the C orridor approved by the Contract ~ydministrator.
(4) I~o be eligible, the subject property must have proper insurance and
be current on property taxes.
(5) /y minimum of t~~o (?) estimates from liccnscd contractors
detailing the scope ol~~~~ork with itemized prices must be obtained
before a project is approved. applicants may bid for work on their
own grant project it the} arc liccnscd and/or qualified Lo perform
the work. Hovvcver. when serrin~ as their o~~°n contractor.
applicants will not be reimbursed for labor related costs.
(6) I3eforc any work is conul~cnced, am~ required building or sign
permits for the grant project must br obtain for an applicant to
continue to be eligible for the program.
(7) Specific program guidelines must he established. which clearly
establish the grant process and schedule.
(8) Ne limds may be disbursed for a grant unless pursuant to a written
contract which provided for default conditions consistent with the
program guidelines and clearly establishes remedies for instances
of default.
(9) ho be eligible, an applicant must agree to hold the City of South
Bend. Indiana, the City of South Bcnd. Department of
Redevelopment and the South Bcnd Redevelopment Commission
(collectively, the "City') harmless and to indemnily the City for
any damages or costs related to any claim, suitor demand related
to any action occurring as a result of the applicants application or
participation in the Program.
Under the program, the following shalt be ineligible improvcmcnts or costs:
(1) improvcmcnts in progress or completed prior to the grant award
(2) Interior improvements not associated with exterior work
(3) Residential building improvcmcnts
(~}) Removal or enclosure of architecturally important features
(~) Window or door bass or security gates
(6) Demolition of structures
(7) Alterations that decrease the accessibility for people with
disabilities
(K) Refinancing of existing debt
(9) Property acquisition
(10) Enviromncntal consulting or hazardous materials testing services
or abatement or clean-up costs.
EXHII3[T 13
Program Schedule
L Continue a Program consistent with this agreement.
2. Continue marketing for the Program and continue processing
applications.
~, Rcvicw, analyze and have Organization staff in a position to
recommend or deny application within lilteen (15) business days of
receipt.
4. hpprove or reject application ~~>ithin thirty (30) days from receipt or
notify applicant of a deficiency or special circumstance requiring
additional deliberation.
5. Provide notice to applicant of approval or refection ~~-ithin five (5)
days of approval or rejection.
6. Monitor project and disburse funds consistent with Program guidelines
and this agreement.
EXHIBIT C
Program Bud~ct
l~uuds Available for Fa~adc Matching Gram Disbursements: $5.000.00
i1X 1
Strcct Corridor
Ij Prepared by City of South Bend Department of Community and Economic Development August 2007
f~.--
APPENDIX 1[
Certificate of F.xistencc
(issued within last year e~~idencing that the Organization is in good standing)
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iF yol~~ encounter technical diffic~ Ivies ),vhi~e uslnc 1_hese services, please coniact'~he accessinoiana
b'debmaster.
~',~ou a-e Doable to find the inPo-maeion you need ihroc~'n the -esources crovldeu on this web sloe, Tease
ontact Secre,ary of State Todd Rol<ita's Business Serv~~cs Division at 31 /-7_37_-6576,
~.. _ -s .`~~e . ~5 ':'>)eb site
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AYNF.NDIX III
Cope of Fedcral Tax-Txemption Lcttcr
'J"~bcs~.t ~~;ni ek°prlse AS$UClatiOn
c-~:: ._~.~uGa~ Bend,, Inc,
+_2 G( ::aunty.°.City Euilding
;o,; ;. Eend_, Indiana 46601
~epartrnent et the Treasury
MAY ~ ,~9
Person to Contact: Mr. DaLlme
Telephone Number:
(202) 566c3844
Refer Reply to:
Date:
E>EO:Ro 2~4
.~,FR 2 9 ~°9.
~zn~loyer Identification Number: 31°•1118740
Key Districts Cincinnati
Accounting Period Endingo December 31, 1990
t?u~~.ndation Status Classifications 5U9(a)(3)
Form 990 Requiredo Yes
;3a.sed on information supplied, and assuming your operations
i~..lJ_ be as stated in your application for recognition of exemption,
ire ha~~e determined you are exempt from federal income tax under
seci_iar; 501(a) of the Internal Revenue Code (the Code) as an
organization described in section 501(c)(3).
':~~~- have further determined that you are not a private
lou:Ad.ai.ien within the meaning of section 509 (a) of the Code,
'recause you are an organization described in the section(s) above.
i. ;. your sources of support, or your purposes, character, or
method of operation change, please let your key district know so
i~hac office can consider the effect of the change on your exempt
status and foundation status. In the case of an amended document
c~~ b~~laws, please send a copy of the amended document or bylaws to
%our }cey district. Also, you should inform your key District
~~z`ccor- of all changes in your :.a.,~e or address.
As of January 1, 1984, you are liable for taxes under the
Federal Insurance Contributions Act (social security taxes) on
°emune~~ation of $100 or more you pay to each of your employees
during a calendar year. You are not liable for the tax imposed
~_~no.e~r_ the Federal Unemployment Tax Act (FIITA).
Vince you are not a private foundation, you are not subject
:o the excise taxes under Chapter 42 of the Code, However, you are
not automatically exempt from other federal excise taxes. If you
have any questions about excise, employment, or other federal
taxes; please contact your key District Director.
:z
a~•~ Enterpx°ise Association of South Bend, Ir°~c.
:uonors may deduct contributions to you as provided in section
i.'?C;+csf the Code. Bequests, legacies, devises, transfers, or gifts
=~ ;jou or far your use are deductible for federal estate and gift.
-;: purposes if they meet the applicable provisions of sectians
';~c5 ?..1066 and 2522 of the Code.
Donors (including private foundations) may rely on this ruling
~!._~~ss the Internal Revenue Service publishes notice to the
<..c~:n.ti:ary.. However, if you lose your 509 (a) status as shown above,
~J.onors (other than private foundations) may not rely on the
classification shown above if they were in part responsible for,
~r were awax°e of, the act that resulted in your loss of such
status, or they acquired knowledge that the Internal Revenue
r~e:c~~ice had given notice that you would be removed from that
~~lassification. Private foundations may rely on the classification
~s long as you were not directly or indirectly controlled by them
oc by disqualified persons with respect to them. However, private
=:o>>ndations may not rely on the classification shown above if they
eccguired knowledge that the Internal Revenue Service had given
;:poi.ice that you would be removed from that classifications
I.E your organization conducts fund-•raising events such as
Benefit dinners, auctions, membership drives, etc., where something
c~~`_ ~~alue is received in return for contributions, you can help your
c!onors avoid difficulties with their income tax returns by
assisting them in determining the proper tax treatment of their
c:ora ributions. To do this you should, in advance of the event,
cte'~ermine the fair market value of the benefit received and state
:_t: i_n you r_ fund-raising materials such as solicitations, tickets,
and receipts 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
Service has issued Publication 1391, Deductibility of Payments Made
~o Organizations Conducting Fund-Raising Events. You may obtain
copies of Publication 1391 from your key district office.
In the heading of this letter we have indicated whether you
sinzs~c. file Form 990, Return of Organization Exempt from Income Tax.
:~f Yes is indicated, you are required to file Form 990 only if your
gross receipts each year are normally more than $25,000. If your
cross receipts each year are not normally more than $25,000, we ask
than you establish that you are not required to file Form 990 by
completing Part I of that Form for your first year> Thereafter,
t~ou J,rill not be required to file a return until your gross receipts
~~;~ceed the $25,000 minimum. For guidance in determining if your
;Toss receipts are "normally" not more than the $25,000 limit, see
;she instructions for the Form 990. If a return is required,• it
r~iu.st be filed by the 15th day of the fifth month after the end of.
t~ou~ annual accounting period. A penalty of $10 a day is charged
L1ie.il a return is filed late, unless there is reasonable cause for
?:~~°a~, ~-~x°,.'~.e3°p,rise Association of South Send, Ince
~~:~:ze t~e~? az, , rl'he maximum penalty charged cannot exceed $5, 000 or 5
~~.r°c=e~7+`. ~°~}° your gross receipts for. the year, whichever is less.
`~~a.i. pcr,al~~.y may also be charged if a return is not complete, so
~~_:aa5e 7~e sure your return is complete before you file it.
~'eazY a}tee required to make your annual return available for
prabl~i~ inspection for three years after the return is due. You are
~z.,~~ :ce~.lired to make available a copy of your exemption
~:c~i~~_:~.ca~~:i..erne and supporting documents, and this exemption letter.
l:'a.~..S.ta.°e ~~o make these documents available for publio inspection may
~uA~eot. you to a penalty of $10 per day for each day there is a
a=r ~.~~ ~°e to comply (up to a maximum of $5, 000 in the case of an
?ssi?.v.ai_ r'et.urn) a See Internal Revenue Service Notice 88-120, 1988-2
_~ ~~~~i- for additional information,
~Z~at~ are not required to file federal income tax returns unless
"~-'~' are subject to the tax on unrelated business income under
seca._{~~1. 511 of the Code. If you are subject to this tax, you must
°i.lc an 7.ncome tax return on Form 990-T, Exempt Organization
!susi_~~ess Income Tax Return. In this letter we are not determining
~?1_~?.e'U~.er any of your present or proposed activities are unrelated
,:e~.de or business as defined in section 513 of the Code.
Yot.i need an employer identification number even if you have
s-~o enr~;l.oyees. Please use that number on all returns you file and
i.n all correspondence with the Internal Revenue Service.
^!e are informing your key District Director of this ruling.
Because i:his letter could help resolve any questions about your
e~emp~c s~ta_tus and foundation status, you should keep it in your
~e•~ rnane,~.t records,
i. you have any questions about this ruling, please contact
~~1~e person whose name and telephone number are shown in the heading
Of "C'CA15 .letter. FOr Other mdtterS, lnclllding que:;ti OnS COnCeri,ing
~_epo=_cin.g x•equirements, please contact your key District Director.
Sincerely,
Jeanne S. Gessay
Chief, Exempt Organizations
Rulings Branch 2