The URL can be used to link to this page

Home My WebLink AboutReconfirming Tax Abatement - The LaSalle Apartments LLC 237 N. Michigan (10 Year Real Property)Attest: RESOLUTION 4417 -15 Passed by the Common Council of the City of South Bend, Indiana January 26, 14 20 . Presented by me to the Mayor of the City of South Bend, Indiana January 21[1, 2014 City Clerk President of Common Council Approved and signed by me �Ak., & ZW4 20-4L. City Clerk RESOLUTION NO. _ l ` 1 � — I r A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION 4330 -14 DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 237 North Michigan Street AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR The LaSalle Apartments LLC 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 located at 237 North Michigan Street and which is more particularly described as follows: Lot 10 P So Bend Lot 2 & N 33.45' Lot 30P and which has Key Numbers 71- 08 -12- 107 - 005.000 -026 and 71- 08 -12- 107 - 006.000 -026 presently at this point in time, be designated as an Economic Revitalization Area; and WHEREAS, petitioner has agreed to and has accepted responsibility to report any changes in the final legal description and to report the final, appropriate Key Number to the Department of Community Investment and to the Office of the City Clerk; 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 a period of ten (10) years as shown by the attachment pursuant to Indiana Code 6- 1.1- 12.1 -17. This resolution is passed as an exception to the current City Code regarding the applicable deduction percentages for a 10 year abatement for the following reasons: 1. The property has been designated by the Economic Development Commission as an Economic Development Target Area located in the CBD; 2. The property is currently owned by the City Redevelopment Commission and requires annual management and maintenance by the City; 3. The property has been vacant and there has been no realized tax revenue generated from the property for at least ten years; 4. The private investment proposed for the project will exceed three times the amount of the taxes to be abated; 5. The project will pay taxes and those revenues will be net new taxes to the community; 6. The project is aligned with the goals of the SBCDA plan, which specifically targets multi -use projects including support for residential occupancy in the CBD; and 7. There is a significant cost to cure required in the project to make the property functional, conform to the historical nature of the property and return the property to economic viability. SECTION III. This Re- confirming resolution references Confirming Resolution 4330 -14. Real America Development LLC is assuming the approved tax abatement for the LaSalle Hotel property located at 237 North Michigan Street approved by the Common Council on March 24, 2014 for Great Lakes Capital Development. Subject to the adoption of the Re- Confirming Resolution by the South Bend Common Council (the "SBCC "), the City of South Bend, Indiana (the "City ") commits to providing a 10 -year real property tax abatement for the Applicant, based on the Applicant's commitment set forth in the Commitments regarding the rehabilitation of a building located on property identified as 237 North Michigan Street, South Bend, Indiana, approved as part of the Commitments. The Applicant commits to a capital expenditure (from all sources of funds) of approximately $9,537,076 to renovate a building. This project will create nine (9) existing, permanent full -time jobs and zero (0) part-time job with an annual payroll estimated at $315,000. The project will maintain zero (0) existing permanent full -time and zero (0) existing permanent part-time positions. SECTION IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the PRESENTED l� 1� y40T APPROVED UOPT81 ` *1 _LL,-I Filed Its - -- Member of the Common Council i I ,f`+ ............. ..._._. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 15 -04 A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION 4330 -14 DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 237 NORTH MICHIGAN STREET AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR THE LASALLE APARTMENTS LLC 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. Karen L. White Chairperson, Committee of the Whole 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 January 21, 2015 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT 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: Real Property Tax Abatement Petition for: The LaSalle Apartments LLC Dear Council Member Ferlic: PHONE: 574 /235 -9371 FAX: 574/235 -9021 Please find attached letter from Real America to the Department of Community Investment and the Common Council requesting approval to assume the tax abatement granted to Great Lakes Capital Development for the project site of the LaSalle Hotel. The report contains the Department's findings relative to request. Real America Development LLC will be operating as The LaSalle Apartments LLC has agreed to all investment and job retaining targets. A representative from Real America Development LLC will be available to meet with the Committee on January 26, 2015. 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, Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB Development, Management & Design a �. ry Mr. Brock Zeeb Director of Economic Resources City of South Bend — Department of Community Investment 227 W. Jefferson Blvd. South Bend, IN 46601 RE: The LaSalle Apartments Dear Mr. Zeeb, 10711 America Way Suite 200 Fishers; IN 46038 317,815.5929 Fax 317.815.5930 January 12, 2015 RealAmerica Development, LLC has signed a Development Agreement with the City of South Bend to rehabilitate the former LaSalle Hotel located at 237 North Michigan Street. The City of South Bend approved real property tax abatement for Great Lakes Capital Development, the former developer of the property, in March of 2014. It is my understanding that as the new developer and owner of the property, we will need to have the abatement transferred to The LaSalle Apartments, LLC, the future owner of the property. Will you please consider this our formal request to transfer the abatement and let me know what needs to be done to accomplish this? Sincerely, _ g rey . Ryan ment Associate www.Rea]AmericaLLC.com Flied °, mice -h 14 Z015 r t�U, IN