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HomeMy WebLinkAbout6.A.(1) Resolution No. 2523RESOLUTION NO. ?52~ A RESOLL~11ON APPROVING AN APPLICATION FOR REAL PROPER~IY TAX DEDUCTION ~~~HEREAS, LC. 6-1 .l-1?.l-?(1) provides that an application forpropert_ytax deduction may not be approved when the property is located in an allocation area as defined in I.C. 36-7-14-39, unless the Redevelopment Commission ~a~hich designated that allocation area adopts a resolution approving that application: and WHEREAS, the South Bend Common Council has received a petition for three (3) years of real property tax abatement consideration from Gatcw~ay Plaza Real Estate. LLC, for vacant real property located adjacent to ~30> Lathrop Drive in the Airport Economic Development Area, the legal description of ~~~hich is attached hereto, marked Exhibit "A" and incorporated herein; and WHEREAS, this Commission declared the Airport Economic Development Arca by Resolution No. 919, adopted ('ebruary ?3, 1990, and in the same resolution declared the Airport Economic Development Allocation Arca. Allocation Area No. 1; and WHEREAS, the ~ avant property located adjacent to 3?OS Lathrop Drive is located within the Airport Economic Development .Allocation Area. Allocation Arca No. 1. '~~OW. TI iEREFORE. 6E IT RESOLV ED by the South Bend Redevelopment Commission as thllows: I) The Commission finds that the application fiom Gateway Plaza Real Estate. LLC t~~r three (3) years of real property tas abatement consideration for the vacant property located adjacent to 3 ~Oj Lathrop Drive in the Airport Economic Development Allocation Area. Allocation Arca No. 1. should be and is hereby approved. ?) That a copy of this resolution be ihrwarded to the South Bend Common Council to indicate the Commission's approval of the petition forrcal property tax abatement for Gateway Plaza Real Estate, LLC. Approved this 7th day of November. ?00~, at the regular meeting of the South Bend Redevelopment Commission. SOI,'TI I BEND REDEVELOPMENTCOMMISS[ON ATTEST: FxHIaiT a LEGAL DESCRIPTION llcscription: Lot ?Total Industries Lathrop St.-Minor-04105 Nc~a~ Rcplat Trans 148?2-2i06i04 Tax Kex No.: ?5-1010-0409.01 Address: Vacant lot adjacent to 3 SOS Lathrop Dri~~c South Bcnd. IN 466?8 1300 C~~~ ~c-C! i r ISi u.ni~r~ 2»U/. I,,r~ i:,,,~ I~~a i iv.uci~ S~x-r!~ ISrsn, I~~ni,~s,~ 46601-ISiO I'~~ i~>~r 5?-i/ 7.35-9;~ l I,v: 5?4/ ? i5-9021 7~D14 5?~i/ 3~5-5567 Criti~ ~~F 5~~~rH [3e~'n SrrrFU~h ~. Lereia,,'~1 mnz COMMUNITY HL ECONOMIC DF,VELOPMENT ~EFPRI-. Y' V. G113NE1' P.v,c~ iur Dnir~-rna TAX ABATEMENT REPORT TO: SOUfH BEND REDEVELOPMENT COMMISSION FROM: BOI3 MA'1'HIA , ~ ~ ti~' SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION POR: GATEWAY PLAZA REAL ESTATE, LLC DATE: October 29, 2008 On August 12, 2008, a petition for real property tax abatement consideration for vacant property located adjacent to 3305 Lathrop Drive was Illed with the City Clerk by Gateway Plaza Kcal Estate, LLC. Please note: The petitioner is asking for a special exception because the project does not meet the general standards for real property tax abatement set forth in Chapter 2, Article 6, Sections 2-77 through 2-83.3 of the Municipal Code of the City of South Bend. 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 and Economic Development for purposes of investigation and preparation of a report determining whcthcr the area qualifies as an Economic Revitalization Area pursuant to LC.6-1.1-12.1 and whcthcr all tuning requirements have been met. Che Department of Commwrity and Economic Development has reviewed the petition, investigated the area, and makes the following report. PROJECT SUMMARY Gateway Plaza is proposing to construct a combination warehouse/flex building. The building will be approximately 31.819 square feet in size and can be demised to seven units of approximately 4,320 square feet cacti. ~hhe building will become Phase 1V of the adjacent Gateway Plaza and will be of similar constriction. Tenants in the building are likely to be primarily warehouse users, but with some need for front-office space or showroom areas. All suites will have grade-level overhead door access, with at least four slated for dock access as well. The building site covers approximately 194 acres. The estimated cost of Phase IV construction is $1,480,180. Cosrnn~ti~rrrDu~iu~r,wexr L<~nn~o:wcDi~~rii~raieNr Fronn~cini.&Paucan~~ ~c 5-~ _ ~.. 'Ark' ~,i/`ice 9i'1 RE: Gateway Plaza Rcal Estate, LLC. October 29, 2008 Page 2 Total taxes to be abated during the (3) three-year abatement period are estimated at $79,214. "Cotal taxes to be paid during the (3) three-year abatement period are estimated at $56,076. EMPLOYMENT IMPACT Per the petition, it is estimated that the project, by itself, will not create additional full-time or part- time permanent jobs within the first year of the project, but will enable a tenant, Memorial Health Systems, to move and allow for future growth. Memorial will maintain 14 existing permanent full- timejobs with an annual payroll of $88,924 including one existing permanent lull-time minority employee with an annual payroll of $170,000. The total possible gains in employment resulting from construction of the building will depend on the kind of businesses that locate Sn it and cannot be estimated at this time, therefore, the petitioner has not presented any. As a result, no points were awarded for job creation in the Public Benefit Points Summary. However, in a preliminary review of the petition that Staff conducted for the Common Council, it was noted that: (a) up to seven new or existing businesses could move into the building; (b) when existing businesses relocate they tend to do so because they need more space and more employees and new businesses will employ at least the owner; and (c) if only three businesses occupied the building one can assume that at least one job per business would be created and the equivalent of one half-time position would also be created to administer and maintain the building. ABATEMENT QUALIFICATION L A review of the tax abatements previously granted finds that the petitioner has not been granted or associated with any previous tax abatements. 2. ~I~hc Building Commissioner has reviewed the petition and fnds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development urea, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner does not meet the quali 13cations for a real property tax abatement under the general standards for tax abatement in the City of South Bend. However, the Ordinance does provide for an exception to the general standards, at the South Bend Common Council°s discretion. The Redevelopment Commission is requested to approve a (3) three-year real property tax abatement as a special exception subject to further review by the Common Council of the City of South Bend. 29-Oct-OS Gateway Plaza Real Esta te, LLC Public Benefit Points Sum mary' Qualify Earned Available Public Benefit Item: Y or N Points Points Project Related: 1 A Redevelop a Site that has Special Needs N 0 49 B. Develop Based on Local University Research N 0 35 C. Achieve a Physical Element of a Plan N 0 36 Sub-total Project Related: 0 120 2 Su Rer Size Projects (Point values are cumulative): A 100% to 199% N 0 25 B 200°~. to 299°4. N 0 68 C. 300°~ to 399% N 0 65 D 400°~F and Over N 0 52 Sub-total Super Size Projects: 0 210 3. Construc tion Related: A Employ Local Companies Y 20 20 8 Purchase Matenals from Local Companies Y 20 20 C Require Employees vs. Independent Contract. Y 19 19 D. Require Target Wage Levels N 0 22 E Require Health Benefits N 0 22 F Require Pension Benefits N 0 18 G Maintain Affirmative Action Plan Y 20 20 Sub-total Construction Related: 79 141 4 Waqe & Benefit Related: A. Pay Target Wage Levels Y 33 33 B Provide Neallh Benefits Y 34 34 C. Provide Pension Eenefits Y 29 29 D Provide Training Y 28 28 E Provide Child Care N 0 15 F Provide Transportation Assistance N 0 14 G Provide Employer Assisted Housing program N 0 9 Sub-total Wage & Benefit Related : 124 162 5 Workforce Related: A. Create New Jobs Y N 42 B Retain Existing Jobs Y 41 41 C. Maintain Affirmative Action Plan Y 35 35 D Provide Targeted Hiring Preference N 0 34 Sub-total Workforce Related: 76 152 6. PaV for Municipal Infrastructure: (point values are cum ulative): A Pay for Oversizing or Upyrading N 0 14 B Pay for 26-50% of Extension Cost N 0 26 C Pay for 51-75 ~~, of Extension Cost N 0 39 D. Pay for 76-100`io o(Extension Cost N 0 52 Sub-total Infrastructure Related: 0 131 ? Support a Municipal Facility: A Support a Municipal Facility N 0 84 Total Public Benefit Points: 279 1000 Quaiifcation for each Public Benefit Item based on best available information at time of application or good faith determination If no Information available Gateway Plaza Real Estate, LLC Additional Years of Abatement Multi-family Development Projects: From To Additional Years 0 141 0 142 183 1 184 225 2 226 267 3 268 309 4 310 351 5 352 393 6 394 & over 7 Other Development Projects; From To Additional Years 0 300 0 301 357 1 358 414 2 415 471 3 472 528 4 529 585 5 586 642 6 643 1000 7 Subtotal from Points Summary: 279 Base Years of Abatement 3 Additional Years of Abatement: 0 Total Years of Abatement: 3 ~ o `''~or~or> o rooo~ u~rom ~ ~~~ I~N~ O (") O tfJ O CO ~f7 V CY C3 OJ N Z ~ l7 f~ V y ch ~' O ~ ~ O ~ O O r cD W h a In OJ O (.) } M W ~fJ l(1 ~ CO CO OJ CY N 0~ CO 0 ~ N ~ ~ t7 (") C7 (") V ~ CJ O ~ N 0 0~ N O OJ ~ N o N O O Cp m O tIJ ~ r ifJ f~ O c0 O O ~ M 1~ ~ W O } CJ o~ O O ~ N O ~ ~ lfJ (`7 N ~ V ~ V d° Q W M b b ~n V o~ N M (x6 ~~ O tD Q: ~ ~ N O~ LO N ~ ~ ~ O C' Q ~ N U J o00 0 r o oc-~c~ o o~ ~n ~o ~n r~ .n v~~ r~ ~ co o ~ 3 ~ ~ ~i-r~ rn a~ o~ o rn ~ o~ ~ 0 o ~n ~n 0 - o O ~ ~ .- N c x Z O O O N O ~ 0 . ~ ~q ~ N ~a M o~~ ~~ ~ M M am ~ ^` ~ O V ~ N N V U C ~ Q N O cn ~ ~ x U C ~ N W a> W o ~ ~ ~ c oMO M ~ ~co ~ ~N r~ 3 ~ ~I ~u~~ cD ~ I~ { {-- L N LfJ O tt~ ~n ` ' M Z ~~ x M M (") (D CO c O O ' x ~ C E O ~ ~ c ~ ~ O O) ~ O O (6 F- p ' N ~ ~ ~ ~ O M N r In ~ r N ~ O) U7 ~ ~ V CO c0 c7 ~ V d ~ ~ V ~~ V M M cD N ~ ~ N V ~ Q N .`7- x C ~ Q N .. ~ // V x N ~ ~- ~ ~ ~ ~ ~ a m~ ~~ o o 0 o 0 ~n ~in ~n o~ ~ cfl o~ o~ r~ ~ co °'~ ~ x ~ co co cn v ro m ~ ~ O O ~" V t"7 d' in CJ V V V M x r m p U j M M N W F- ~ O ~ ~ ~ ~ o ai .. (~ ~ o ~ ~ q ~~ m ~ N (") E 7 V ~ ~ } t„ > C ~ N O N ~ n~ O o 0 0 0 ~~ a a o o O r N O ~ N C~ 7 N Z -O Q O~ OJ O f~ O~ p N~ ~ N O~ F >. N N C ca (`~ O C O Y N ~ O ~ (0 7 N ~ N N U ~ U w ~ '~ ~ > o a ~ ~ ~ ~ N Q T v i c n ~ o -o 7 f6 j ~ ~ ~ 7 j~ ~ ~ ~ m U - ~ N - N - ~ C U O qy ~ (6 7 O ~ ~ ~ ~ cn ~ rJ x N x ~ ~ Y Y O N a c6 U Y N O -O ~ in -o c ~n ~ ~ x m ~ m ~ ~ ~ ~ Q c J ~ m ~ ~ v. ~ Q Q N mz d ~ ~z ~UOC) 07 = E ~ c Q Q N E !- U r. U .- cn ~ ~n O N Um~ VJ Q O N ~ ` ~ 3 C~ CU ESTIMATED TQTAL TAX REVENUE Gateway Pfaza Real Estate, LLC REAL PROPERTY -THREE YEARS i LAND' BUILDINGS" TOTAL 11 ~ Year1 X513 S44 ~55% Year 2 513 18,359 18,872 Year 3 513 36,135 36.648 Total $1.539 X54,538 X56,077 `Current tax levy.