HomeMy WebLinkAboutConfirming Tax Abatement - Briarcliff Healthcare 5024 W. Western Ave. (5 Year Real Property)Attes
RESOLUTION
4337 -14
Passed by the Common Council of the City of South Bend, Indiana
April 14,
14
20_.
Presented by me to the Mayor of the City of South Bend, Indiana
April 15,
20 144.
City Clerk
ident of Common Council
Approved and signed by me K 11
IS
IN
20—a.
City Clerk
MW
RESOLUTION NO.--( 3 3 � -f
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
5024 West Western Avenue
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR REAL
PROPERTY TAX ABATEMENT FOR
BRIARCLIFF HEALTHCARE
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Economic Revitalization
Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as 5024
West Western Avenue, South Bend, Indiana, and which is more particularly described as
follows:
575.01' on Western Beg
300' West of Line
Summit Dr
Sec 8 37 2e
and which has Key Number 018-4129-504311 be designated as an Economic Revitalization
Area; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing
before the Council has been published pursuant to Indiana Code 6 -1.1- 12.1 -2.5; and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the
area described herein as an Economic Revitalization Area for the purposes of tax abatement.
Such designation is for Real property tax abatement only and is limited to two (2) calendar years
from the date of adoption of the Declaratory Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is qualified for
and is granted Real property tax deduction for up to a period of five (5) years as shown by the
attachment pursuant to Indiana Code 6- 1.1- 12.1 -17 and further determines that the petition, the
Memorandum of Agreement between the Petitioner and the City of South Bend, and the
Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of
South Bend and Indiana Code 6- 1.1 -12 et seq.
SECTION III. This Resolution shall be in full foi
Common Council and approved by the Mayor.
1'_-�y
YRESEt�TElS �'l
NOT APPROYEd
ADOPTED (� 4 l
by the
Filed in Clerws
EM +R i i TU14 j
J ®heF •%18;3' 3e
CITY CI Bplt 50UTN SEK IN f
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
14 -23 A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS 5024 WEST WESTERN AVENUE
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR REAL PROPERTY TAX
ABATEMENT FOR BRIARCLIFF HEALTHCARE
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.
This bill was heard by the Community Investment Committee.
Valerie Schey
Chairperson, Committee of the Whole
227 W. JEFFERSON BOUIP.VARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
February 4, 2014
Council Member Gavin Ferlic, Chairperson
Community Investment Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Commercial Real Property Tax Abatement Petition for:
BRIARCLIFF HEALTHCARE
Dear Council Member Ferlic:
PHONE: 574 /235 -9371
FAX: 574/235 -9021
Please find attached the Department of Community Investment's report on a commercial real
property tax abatement petition from the above - referenced Petitioner for property they intend to
rehabilitate that is identified as 5024 West Western Avenue. Also attached is a copy of the petition,
Statement of Benefits form, and supporting information.
The report contains the Department's findings relative to the above petition. The Petitioner,
Briarcliff Healthcare. proposes to rehabilitate the building at a cost of $3,263,722. A representative
of the Petitioner will be available to meet with the Committee on Monday, February 24, 2014.
Should you or any of the other Council members have any questions concerning the report, or need
additional information, please feel free to call me at 235 -9335.
Sincerely/
Brock Zeeb
Director Economic Resources
Department of Community Investment
Attachments
cc: South Bend Common Council Members
Mayor Pete Buttigieg
Scott Ford
Chris Fielding
ASSISTANT ExrcuTR'E DIRECTOR PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RFSOURCES
CHRIS FIELDING JITIN KAIN PAMELA C. MEYER BROCKZEEB
227 W. JEFFERSON BOULEVARD
STATE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
BRIARCLIFF HEALTHCARE
DATE: February 4, 2014
PHONE: 574/235 -9371
FAX: 574/235 -9021
On February 3, 2014, a petition for real property tax abatement consideration for property identified
as 5024 West Western Avenue was filed with the City Clerk by Briarcliff Healthcare. Pursuant to
Chapter 2, Article 6, Section 2 -82 of the Municipal Code of the City of South Bend, this petition was
referred to the Department of Community Investment for purposes of investigation and preparation
of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to
I.C.6 -1.1 -12.1 and whether all zoning requirements have been met.
The Department of Community Investment has reviewed the petition, investigated the area, and
makes the following report.
PROJECT SUMMARY
Briarcliff Healthcare is going to redevelop an economically obsolete facility in South Bend which
does not currently meet the required standards for skilled healthcare facilities. The Michiana
region does not have the services and facilities required to meet the needs of the marketplace.
The facility will provide the following services: Spinal Cord/Injury Services; Cardiac Services;
Bariatric Services; Ortho /General Services; Hospice Services; General Care/ Private
PayNeteran's Administration/Overflow Services; CNA Training Program; and Outpatient Adult
Day Care Center. The cost to rehabilitate the facility is $3,263,722.
ASSISTANT ExECUTIvE DIRECTOR PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RFSOURCEs
CHRIS FIELDING JITIN KAIN PAMELA C. MEYER BROCKZEEB
RE: Tax Abatement for Briarcliff Healthcare
February 4, 2014
Page 2
The Petitioner has just begun collecting information on potential suppliers and contractors for the
project. For this reason they were unable to finalize the questions related to suppliers of construction
materials and construction contractors. They intend to submit this information prior to the Common
Council meeting to consider their confirming resolution. At that time final points will be awarded
and the length of the abatement term set. Based on current information, the Petitioner will score
sufficient points for a four to seven -year term. If they score all of the points for construction they
would have enough for seven years.
Assuming a seven -year abatement term is approved at the Confirming Resolution, the total taxes to
be abated during that term are estimated at $253,318. Total taxes to be paid during the seven -year
term are estimated at $660,019.
Our municipal city Code does not target service industries for tax abatements. Therefore, approval
of this request would be an exception to our Code as this is a service business.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the project will create 40 new, permanent full -time positions in
the first year and 40 full -time positions in the second year. The new payroll will be $2,476,032 in the
second year.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted finds that the petitioner has not been granted
any previous abatements.
2. The Building Commissioner has reviewed the petition and finds the property to be properly
zoned for the proposed project.
3. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the
qualifications for up to a seven -year real property tax abatement under Section 2 -84, Council's
Authority to Enlarge Real Property Tax Abatement General Standards. .
�Ani)
1 n.p
�VgIbco
ego, Coo
,,'sC%I �IJ
H�V15Cp C21e) - g16-1q - SO ,4-3 f
>
Briamliff Healthcare
5024 We am LLC
B'u'stle
Limited Liability Company
Proposed Project Information
P(apose fo e'cfa'd8re
5
h _ 5024 West Western Avenue
Pafenl conSpany na e+-t;.
�,r' ,-� � :> N/A
tll%j'Ste; 21
South Bend, IN 48619
Legal owner -"
� ��,�� ,,- 5024 Western LLC
SlPe acreage ai`a"£,�,ea- gefequired.
-
- 4.41
fs ihdreal estate owned or °`
rs �y+r�,.mexa- �. -eaE,. _. Owned
Sq'S- "aPe`�k''d(fad0ry'"
- 61,645
Ifleasedbywh'om;. N/A
Primary Contact Information
P ma ri EoTniry"coi n
�pp
� Shalom Manors
7tle'T°�
� ti5 Manager
AdtlP_eesss'ofcompany w`nfa 8833 Gross Point Road, Suite 308
one 847 - 6796200
Ory State Zip't' ""'i'a, "' Skokie, IL 60077
Email -
_ Shalom @menorafnancial.com
Official Information
rn
tom senior offifil'a[ name
Shalom Menora
Title `� Manager
Ada °e'ss'ofcoMpart &H-6d - d7fkr-eWff%ff
N/A
Phane -
1. 847 - 6796200
-
LtiBjst`ate„-
N/A
Email, Shalom @menorannancial.com
Consultant Information/Agent
Hlied'6usiness co`dsulta age'n} name _y WA
.�. ��5... .aa
Consultant releas /N) ��
Address,�� ° - �
total economi<de6velopmerit partners ">
Project Overview
Sri" Eeurtpt of n of - ur
5024 Western LLC is considering the redevelopment of an economically obsolete facility in South Bend. The building does
corn a profs - -:andw - -the
not currently meet the required standards for skilled healthcare facilities. The project would result in the creation of 80
pro a snecessary r
bed facility and create 80 full -time jobs in the community.
The South Bend/Michuma region currently does not have the
emnom cam
services and facilities required to meet the needs of the
marketplace. The facility will provide the following services: 1.
Spinal Cord Injury Services; 2. Cardiac Services; 3. Badatric Services; 4. Ortho /General Services; 5. Hospice Services; 6.
General Care /Private PayNetemn's Administration/Overnow Services; 7. CNA Training Program, and; 8. Outpatient Adult
Day Care Center.
— t 4;^
Filed in Clerks ®f f,,,-
A
f[[
JOHN VOORME
J CITY w: FRK, $CIiTF= END, IN i
e �fied,EloaarkaPProaiat
No
-Orm— `silty'.- 8`e°vffalin- ton ancem
No
Ce'r6Ty',Watthe B`utfdfngPmnk ah sno'Fheejey.
Yes
°
a N/A
°- 5fihf{lza peddan: rsan
a� —allies:
N/A
e u ment
insta ed-
40
$14.88 TBD 40
80
$14.88 TBD 80
2017�
13' 7
;0!
i0i
NA
2
2
Pa me
10.17
e .17
gpn $16
7
$38.46
$16.77
O n
Rich ard Kennedy, Health Facilities Administrator
D Yes
JQ�—
16 inkffi4ffl IV Yes
merit 044.'
last three
an n wslo Atngyourr
the years:
ob ea san 4u Im nte eaa
aswelI as wrient poi
%4G.Tfffi 64
IFUIITFM—e'�F�atTjffie-�
Fu
-111nmel
'Part TiftieM
N/A
Due to the fact that the company is
xizpenicj
proposing to launch a now facility, them
------ —s NIA
is not an employment history for the
past three years. 5024 Western LILC is
NIA
0
committed to actively recruiting minority
N/A
and female employees. In addition, the
company will encourage the
participation of MBE, VBE and WBE
vendors to provide products and
e N/A
services to the feel ,
Submitted By: Date:
an e - I rov de ma eria p chase ,forth s prx°,; £ -s -
vPeasecom le e he a, e- elow wltttheappfo date nformation If �ualH�yr � Ear„ed.POmts� AvailabePOmts��
rsl -
lease full
ou�qual tY t 1e pom' enter a amount
oats
q
�COn'struction Rela ed (Con rac"forsl �,�.�,* e -
Ev(nlog eai�Gompa es(7�'` r Yes - best ef 20 20
f?uc.aset a is -,�Is fro local.Cgrnpames (75 %)_; Yes - bests 20 20
m
Regpge mployeesy„v Indeyer{d tCAntrat[ors __
Yes 19 19
_•-s
_
EwLue
Yes 22 22
E g
Yes 22 22
,. r: t_. F`3� ggguve Pension Benefits a.r. _ _
Yes 18 18
`:,G -,- MalOroln Affirmative AttionPlan
Yes 20 20
_3
s t�s S bfta�COnsf uction Related
141 141
=2° Wace` &gene @Related�OW„erJ -
A P!a get age evels -
Yes 0 33
A- ealthBenefits
` C provide PensloJ.eenefits5 "_
Yes 34 34
Yes 29 29
aaSx- _
Pyoide,�roir2mg�,;;�'��,
Yes 28 28
%rovldeC iid Care �"•=
>�L-- ,.."um --�
No 16 15
.e.
-ASST
" F rd T'°ra�nspo' rtati°jbo„X
No 14 14
r'k
m g, o_dEoyeA Rous "g program _
Yes 9 9
otal lyage &Benefit Related _
129 162
•" 'tR t ------------ rkf lated3 -
_
Yes 42
42
In,Ex1 1 go 5_„�..�,�- '-
N/A 41
41
35
•' a.:
O. = Maintai��f�e�lctb` p PP�e_ r['rt
Yes 35
,ate
-
a _ Prow2e aar eve _;HJn -Jr grefereJrce _
Yes 0
34
- Sub - total Workforce Related
118
152
5u000rt a Munkioal. Fa ilnv -
Yes 84
84
_ •58 porYSSld MU'nTd pa I Facility Cdonations to the
A �rn ��
eY _
zoo,wOSerYatotv;�m a
Will provide support to the conservatory, if abatement is approved
- ago ame -o -Faahty _ „ - _ --
MM I S_-WiotaIMunicipaa aahty -`-
84 84
e
Sub -total fromAbove
472
539
_- __-
Submitted By: Date:
For Staff Use Only Below This Line
e
Room
Vlrhafl `s'kge`ta"'kI�eynumE'ef'fo s. ?
Mails the six drg1t NgtCScowt,
Pe-a seattarh a Gaogle map and street view ofthe laratidh °=
Pleaselist the amountofreafandpersonalproperry taxes,
Real Propert,Taxes'°,z'= - �---
Pe�iSOnalProp €ifyTaNes�-
�.''
e
paid tastfi5ey rshena Iw,bf''+
foithe p'Y
Ye. rm`r iF,`j��
� ,JR"i
SV
Y o s
a Year Three
o- Ye at FOUr� -" =
Year Five
W _
Please fill out the following Pubhc eerfeflt Summary lnformatio and add to totalTrom above
--• ' � � .cow ".
Redevelopasi�'e hat has SQ ial~eedsz? -. 49
35
-
'e Develop Based orLtocal University�Research i � -a
s
^ PhysicalElement *'
36
-C ,tom.. Ac e a of a Plan
Protect Related
0
120
6
-� Sup 58 meets laoin't values are coin IatWe) _-
25
68
200 %to 299% v.�» '� -_.
D $ 4006 and Over ;may ' -' "r
52
Sub SuperSize VioJects
0
210
- -,�, total _,",.
Pav for Municipal Infrastructure: 1 �>
'A 'Ray
fofOversaing or Upgrading sr-.
14
-
6
" "
26
€ ^ -
B -z
P,ay, -f 2or 50 %,of Extension Cost 1
-- C -
Pay fpr 51 %of Extenson Cost; - -? '
39
°- D
Pay for76- 100%:ofEMensionCOSt ,.,?'-;,
52
_ -c'= "= '__'s__. •-'mot
-;=.
`>' 5pbpyutal lnlnftastiucture Re ated_,�
0
131
::- T -a.1<z
Totalfrom APPlacan s�L-m �
472
539
- Total from Staff Section? rte- ' �'^`�=
0
461
- - Total Pubtk Benefit Points -
472
1000
1) How do I pay my petition filing fee?
Your petition filing fee can be paid either in person or via mail to:
City Clerk's Office
Attn: Deputy City Clerk
227 West Jefferson Blvd. • Suite 400 S
South Bend, Indiana 46601
2) Certified Technology Park appropriate? (Page one, under project overview)
In the South Bend area there are only two Certified Technology Parks, Innovation Park and Ignition
Park. If your property is not located in either then the answer would be no.
3) Community Revitalization Enhancement District? (Page one, under project overview)
The map below outlines the CRED area, please check to see if you fall within the boundaries.
4) Has any 504 funding been received? (Page one, under investment details)
504 Funding is a loan that come from the Small Business Administration. This funding must be applied
for to be received.
5) Total training expenditure - not cumulative (Page two, under full time Indiana resident positions)
The amount of money to be spentperyear on training over the course of the project.
6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions)
The amount ofpeople that you will train peryear over the length of the project.
If you have any additional questions that are not addressed by this document, please contact Sarah Heintzelman in the
Department of Community Investment at 574.235.5842 or email at sheintzePsouthbendin .gov
CREeD District Boundary
— IL.a!G� f8C91
-'
SWN SOWFI _.
I -. �
ii_
!
D. he }$� �
&
i LJ
_
'i
� —
-
_
AL
Tutt
�— c -
G.,
it
- -IB
S' Ult J
CY
Ilion
i'
u
rr
�HardY
.EteVnM �r
Legend �-
— t
- �, I. i.`
_ N
CREaD d�hcl gg
�!_
I don —.
=ftm
4) Has any 504 funding been received? (Page one, under investment details)
504 Funding is a loan that come from the Small Business Administration. This funding must be applied
for to be received.
5) Total training expenditure - not cumulative (Page two, under full time Indiana resident positions)
The amount of money to be spentperyear on training over the course of the project.
6) Total number to be trained - not cumulative (Page two, under full time Indiana resident positions)
The amount ofpeople that you will train peryear over the length of the project.
If you have any additional questions that are not addressed by this document, please contact Sarah Heintzelman in the
Department of Community Investment at 574.235.5842 or email at sheintzePsouthbendin .gov