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Home My WebLink AboutWaiving the Required Filing Date Deduction Application for the Tire RackAttes RESOLUTION 4365 -14 Passed by the Common Council of the City of South Bend, Indiana May 28, 14 2Q—. Presented by me to the Mayor of the City of South Bend, Indiana _ May 29, 20 14 City Clerk dent of Common Council Approved and signed by me /0'4 1 21 20 I k . City Clerk M RESOLUTION NO. A RESOLUTION WAIVING THE REQUIRED FILING DATE OF MAY 10, 2013 AND ACCEPTANCE OF THE DEDUCTION APPLICATION OF THE LATE FILING OF DEDUCTION APPLICATION FOR THE NEW MANUFACTURING EQUIPMENT LOCATED IN AN ECONOMIC REVITALIZATION AREA FILED UNDER RESOLUTION 4198 -12 FOR THE TIRE RACK LOCATED AT 7101 VORDEN PARKWAY Whereas, The State of Indiana, County of St. Joseph, Adopted by the Common Council of the City of South Bend, Indiana commonly known as 7101 Vorden Parkway, South Bend, Indiana had adopted RESOLUTION 4198 -12, pursuant to Indiana Code 6 -1.1- 12.1 to be an economic revitalization area for purposes of a five (5) year real tax abatement for the Tire Rack. Whereas, Resolution 4198 -12 was presented and adopted by the Common Council on August 13, 2012. Whereas, Mr. Joseph lams states that the Application for Deduction fi•om Assessed Valuation for New Manufacturing Equipment in Economic Revitalization area ( Form 322) was not filed by the Company by the due date. Whereas, the Auditor's Office states that it has never received the required Form 322. Whereas, the tax bill which was to have been abated results in a tax being due of $95,333.24. With the abatement, the tax bill would be $5,583.03. Now, therefore be it resolved by the Common Council of the City of South Bend, Indiana as follows: SECTION 1. The petitioner has presented testimonial evidence of the following facts in support of this resolution: A.The petitioner states that they were unaware that the Form 322 needed to be filed with the Auditors Office. B. The stated property cannot afford this large tax bill at the present time. C. The Tire Rack has met the project cost goal stated in their original petition for a tax abatement. The initial cost of the project was estimated to be $4,700,000 and the actual cost was $5,459,792. Thirty new positions have been created with a payroll of $1,755,220. The new payroll goal was $1,600,000. E. The project is an outstanding asset to this community F. All other required documentation has been received from The Tire Rack by the required due dates. SECTION 11. The foregoing facts, taken together, lead the Common Council to conclude that compelling reasons exist to waive the filing deadline. SECTION III. The Common Council hereby waives the 2011 and pursuant to Indiana Code 6- 1.1- 12.1 -4.8 ado acceptance. r\ Nc� �attovfra WPM ine of May IOth tion that authorizes Council Filed in Cierk's Office P1-Y -9 2014 JOHN VOORDE CITY CLERK, SOUTH BEND, IN May 8, 2014 South Bend Common Council City of South Bend 227 W. Jefferson Blvd. South Bend, Indiana 46601 -1830 RE: Resolution Number: 4198 -12 South Bend Common Council Members, 7101 Vorden Parkway South Bend IN 46626 800 428 8355 574 287 2345 FAx 574 236 7707 www.urerack.com This letter is written to respectfully request reinstatement of tax abatement effective March 1, 2013 for the property described as "Lot 1 BW Business Park Major Sub 02.03 New Replat 4013-16-01", This Is a new office building approximating 34,000 sq. ft. and Is located at 7015 Vorden Parkway, South Bend, Indiana 46628, The Common Council had originally adopted and approved tax abatement for this property under Resolution Number 4198 -12 dated August 14, 2012. We received Notice of Assessment (Form 11) dated November 5, 2013 from the St. Joseph County Assessor sometime in mid - November 2013 with a retroactive assessment date of March 1, 2013. While the Form 11 states clearly "The Deadline to file an appeal Is December 20j6, 2013 ", we did not intend to file an appeal because we agreed with the assessment value as stated on the Form 11. We had assumed that we met all filing compliance obligations for tax abatement and did not associate the Form 11 with any new filing requirement. The Tire Rack had timely filed the original Statement of Benefits (see attached) for the project tax abatement and all subsequent annul filings of Form CF -1, Compliance with statement of Benefits (see attached). We received a property tax bill from the St. Joseph County Treasurer in April 2014 for taxes assessed March 1, 2013 and payable by May 12, 2014. We then Inquired why the bill did not reflect the approved abatement. We were Informed that Form 322/RE, Application for Deduction from Assessed Valuation of Structures in Economic Revitalization Areas (ERA), is required to be filed with the County Auditor. Upon reading the Form 322/RE It states, "To obtain this deduction, a Form 322/RE must be filed with the County Auditor before May 30 In the year in which the addition to assessed valuation (or new assessment) is made, or not later than thirty (30) days after the assessment notice is mailed to the property owner If it was mailed after April 10." Since the notice of assessment for March 1" 2013 was sent In November 2013 we could not meet the May 1016 requirement. Since we could not meet the first filing date of May 1016 It then falls to the "thirty (30) days after the assessment notice is mailed" filing date. We failed to meet this filing date because, as stated before, we had assumed that we met all filing compliance obligations and did not associate the Form 11 with any new filing requirement. We have completed the Form 322/RE (attached) and respectfully request the Common Council's support in resolving the timely filing of Form 322/RE with the County Auditor. Respectfully, <L: Joseph T. lams JOSEPH T. IAMB Chief Financial officer Extension 4363 llantsOlrerack.00m 227 W. La rr IMM BOWTVARD S on 1: 1400 S. Shun{ BENT), IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT May 8, 2014 SCOT I, FORD, EXECUTIVE DIRECTOR. Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Real Property Tax Abatement Petition for: The Tire Rack Dear Council Member Ferlic: PIiom : 574,235 -9371 Fax: 574,235-902 1 The Tire Rack was approved for a five year real property tax abatement on August 13, 2012 through resolution number 4198 -12. The filing deadline for Form 322 was May 10, 2013. The petitioner maintains that they were not aware that a Form 322 needed to be filed with the Auditor's Office at the completion of the project. The Department of Community Investment did mail the petitioner a Fonn 322 on July 9, 2012 but it must not have reached the proper destination. Consequently, the petitioner did not receive his abatement for the pay 2014 tax year. The company is requesting a resolution from the Common Council waiving the filing date for the Deduction Application. A representative of the company will be available to meet with the Committee on Tuesday, May 27, 2014. To accomplish this request, a tax abatement recipient must notify the Council in writing. Attached you will find a letter from the company's representative, Joseph Iams, requesting the waiver. 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 -9278. Sincerely, �--CI b Director Busin evelop lent Attachments c: South Bend Common Council Members Deputy Mayor Brock Zeeb Scott Ford PLANNING Nac:nnosuoonENGAGENIENI lit sntssUerra.oFNiF..\t EcoNonncRo-;socsces Jm\Kan PU9la C. Mri rit emus Fn _I unc Dot ala E. hKs