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HomeMy WebLinkAboutConfirming Tax Abatement - J.J. White Inc. 1904 M. Kenmore St. (2 Year Real Property)Attes RESOLUTION 4373 -14 Passed by the Common Council of the City of South Bend, Indiana July 14, 14 20 . Presented by me to the Mayor of the City of South Bend, Indiana July 15, 20 144. City Clerk dent of Common Council Approved and signed by me Iu L '/ 15- 2011. . City Clerk RESOLUTION NO. 1333—(J A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1904 North Kenmore Street AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO -YEAR (2) REAL PROPERTY TAX ABATEMENT FOR J.J. White, Incorporated 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 1904 North Kenmore Street, South Bend, Indiana, and which is more particularly described as follows: 300'N & S X 360'E & W Beg Appx 69'N of SW Cor Se and which has Key Number 71- 03 -33- 200 - 016.000 -009, 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 annual amount for which similar buildings in the county were leased or rented or offered for lease or rent during the period the eligible vacant building was unoccupied is approximately in the amount of $79,798.64. SECTION III. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of two (2) 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 sea. SECTION IV. This Resolution shall be in full force and effect fr d after it adoption by the Common Council and approved by the Mayor. rma in €,;i 43ffiCE PRESENTED `� �rU1iN -.O N1 $m ArKOVE6 JONPr . CITY CLER.S, 5cloiH BWND, IN 227 W. JrrrERSON 1301n YARD Sun 1, 1400 S. So(:I D B).ND, IN 4660 1 -1 X311 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT June 3 2014 SCOTT 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: Commercial Real Property Tax Abatement Petition for: J.J. White, Incorporated Dear Council Member Ferlic: PH(1V11: 574235 -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 renovate that is identified as 1904 North Kenmore Street. Also attached is a copy of the petition, Statement of Benefits form, and supporting infonnation. The report contains the Department's findings relative to the above petition. The Petitioner, J.J. White, Incorporated . proposes to make improvements totaling $85,000. This project qualifies for a two year real property abatement under the Indiana State Code. The project is an exception to our local code. A representative of the Petitioner will be available to meet with the Committee on Monday, June 23, 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 -9339. Sincerely, _77ezi ZY Brock Zeeb Director Economic Resources Department of Community Investment Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLAS.NING Ni.IGHBORHOOD ES( ;A(;}:NI1_N'1 Bosl-NESS DE )'r.LOp%mm— JITn KAIN P%A11 Ld C. M6: 1 "tB ECODONAI1RI': IN Ks It CIIRIS.FI[LUINU DUk:11.i1 E. IN Ks -. ,. 227 W. JI:I'I I-RSON BOLI.I[VARD Skinn r 1400 S. Soul Bim). IN 46601-1810 CITY OF SOUTH BEND COMMUNITY PETE BUTTIGIEG, MAYOR SCOTT FORD, INVESTMENT DIRECTOR TAX ABATE EXECUTIVE MENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: J.J. White, Incorporated DATE: June 3, 2014 PHONE.: 574!2359371 FAX: 5741235 -9021 On June 2, 2014 , a petition for real property tax abatement consideration for property located at 1904 North Kenmore Street was filed with the City Clerk by Mr. Larry Pearson of J.J. White, Incorporated. 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 J.J. White is a large multifaceted self perforating general, mechanical, and electric al contractor headquartered in Philadelphia, PA. In July of 2012, J.J. White opened an office in South Bend to further pursue opportunities in the Midwest Region. Their client list currently includes the University of Notre Dame, the City of South Bend, St. Joseph County, 1" Source Bank, Key Bank, Saint Mary's College, AEP, NIPSCO. D.C. Cook Nuclear Power Plant, Honeywell Aerospace South Bend, AT & T, Four Winds Casino, and others. The Midwest Regional Office has experienced significant growth in the South Bend area and they would like to make South Bend the permanent location and hub of the Midwest Operations PLANNING NF;IGHn012H00D ENGAGEMENT JH IN KAIS PA\IH..A C. MI VI R Br'}I ^'ENS DEVELOP \ff:NT t'- QIRIS- FIEI.Dm; CUD0111CRt:50CRCES IX)Nnl.n E. INRs RE: Tax Abatement for J.J. White, Incorporated June 3, 2014 Page 2 efforts. Improvements to the building will total $85,000 and will include a minor office buildout as well as new painting throughout the interior and exterior of the building. There will also be a new monument sign, new site fence, and parking lot improvements. PLEASE NOTE: The applicant, J.J. White, Incorporated , is respectfully requesting a special exception because the project does not meet the general standards for real property tax abatement as set forth in Chapter 2, Article 6, Sections 2 -77 through 2 -83.3 of the Municipal Code of the City of South Bend. Indiana State's legislation on tax abatement has a provision for the granting of tax abatements on properties that have been vacant for at least one year (IC 6- 1.1 -12.1- 4.8). However, because this is a relatively new provision, the City's code does not provide for it. The state legislation provides up to two years of tax abatement on the Property subject to certain limitations on the amount of the property's assessed valuation that can be considered in calculating the abatetnent. The petitioner is respectfully requesting that the Common Council grant the two year exception under this IC exception. As noted this abatement only applies to a limited portion of the property's total assessed valuation. This portion is equivalent to the estimate annual rent that the property could generate. The building has been listed at $2.96 per square foot for the 26,959 square foot building. The maximum rent generated would be $79,799 and our estimate of the taxes abated for two years is less than that amount. Total taxes to be abated during the two - year (2) abatement period on the assessed valuation are estimated at $25,527. Total taxes to be paid during the two -year (2) abatement period on the assessed valuation are estimated at $14,696. EMPLOYMENT IMPACT The project will retain 6 office and 42 field employees. The average hourly wage is $25 per hour. This is a payroll of approximately $2,496,000. The project will create 5 office and 25 field positions in the first two years with a payroll of $1,560,000. South Bend Common Council RE: Tax Abatement for J.J. White, Incorporated June 3, 2014 Page 3 ABATEMENT OUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has not been granted or associated with any previous tax 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 South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner does not meet the qualifications for a real property tax abatement. Atwo -year (2) real property tax abatement is being sought as a special exception.