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HomeMy WebLinkAboutConfirming Tax Abatement - JSK Development, Inc./Southhold, LLC 111 S. St. Joseph St. (2 Year Vacant Building)RESOLUTION 4456 -15 Passed by the Common Council of the City of South Bend, Indiana June 22, Attest: 15 20 . 91 Presented by me to the Mayor of the City of South Bend, Indiana June 23 20 15 Approved and signed by me City Clerk President of Common Council 20-L51. City Clerk �-A, RESOLUTION NO. A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 111 South St. Joseph St., South Bend, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO (2) YEAR VACANT BUILDING TAX ABATEMENT FOR JSK Development, Inc. /Southhold, 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 commonly known as 111 South St. Joseph St., South Bend, IN 46601 and which is more particularly described as follows: LOT AB HALL OF FAME & CHOCOLATE CAFE MINOR SUB AND THE ORIGINAL TOWN OF SOUTH BEND 1sT RP RP6363 09 -30 -08 09/10 and which has Key Numbers 018 - 3091 - 347405 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 a real property tax deduction for a period of (2) two 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 III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. Member e Common Council ,'RESENTED �- U4 r ADT A?4W,O, M A.,,.+��LL — Hied in C! *? Ws -Of#ic CITY CLE {,',9 M SEND, IM 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 May 18, 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: First Substitute Filing Vacant Building Tax Abatement Petition for: JSK Development, Inc. /Southhold, LLC Dear Council Member Ferlic: PHONE: 574 /235 -9371 FAX: 574/235 -9021 An amended first substitution filing was made regarding the real property tax abatement petition for JSK Development Inc. /Southhold, LLC. The following information was amended from the original filing: ➢ Petition for Incentives - Legal owner name added, Southhold, LLC, on page one ➢ Statement of Benefits SB -1/VBD — Section 1, name of taxpayer changed from JSK Development or LLC to be named later to Southhold, LLC ➢ Statement of Benefits SB- 1/VBD— Section 2, information added that was previously blank ➢ Statement of Benefits SB -1/VBD — Section 3, number of additional jobs and salaries changed from 42 to 38 to match the Petition for Incentives ➢ Statement of Benefits SB -1 /VBD — Section 4, information added that was previously blank ➢ Statement of Benefits SB -1/VBD — Section 5, information added that was previously blank Should you or any of the other Council members have any questions or need additional information, please feel free to call me at 235 -9339. Sincerely, �31 /�ti Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES 11TIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 May 18, 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: Vacant Building Tax Abatement Petition for: JSK Development, Inc. /Southhold, LLC Dear Council Member Ferlic: PHONE: 574/235 -9371 FAx:574/235 -9021 Please find the attached information pertaining to a vacant building tax abatement petition for JSK Development Inc. /Southhold, LLC: ➢ Department of Community Investment's summary report ➢ Copy of the petition ➢ Statement of Benefits form ➢ Supporting information. The report contains the Department's findings relative to the above petition. The project meets the qualifications for a (2) two year vacant building tax abatement. A representative from JSK Development, Inc. /Southhold, LLC will be available to meet with the Committee on Tuesday, May 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,�f 13 /` -*L— 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 JITM KAIN PAMELA C. MEYER CHRIS FIELDING BROOK ZEEB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB SUBJECT: VACANT BUILDING PROPERTY TAX ABATEMENT PETITION FOR: JSK Development, Inc. /Southhold, LLC DATE: May 19, 2015 On Tuesday, April 21, 2015, a petition from JSK Development, Inc. /Southhold, LLC was received and subsequently filed with the City Clerk for vacant building property tax abatement consideration for property to be located at 111 South St. Joseph St, South Bend, IN 46601. Pursuant to Chapter 2, Article 6, Section 2 -84.2 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 (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY ➢ Construction of a full- service national brand 120 room hotel and connecting annex to the former College Football Hall of Fame. The Hall of Fame would become a multi -use, owner- occupied property which would house all the support services for the new hotel (reception, restaurant, etc.) as well as the new home for JSK Development corporate offices. ➢ $9,250,000 investment in new building construction and building expansion/connection with HOF ➢ Total project taxes during two year abatement period — $173,745.28 ➢ Estimated taxes being abated during two year abatement period — $107,783.53 ➢ Total taxes to be paid during two year abatement period — $65,961.75 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: ➢ Create 33 permanent, full -time and zero (0) permanent, part-time jobs within the PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES LTIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEH first year, representing a new annual payroll of $884,083.20 ➢ Retain 0 permanent, full -time jobs with an annual payroll of $0 ➢ Create a total of 38 permanent, full -time and zero (0) permanent, part-time jobs, representing a total annual payroll of $1,108,723.20. In addition, JSK Development, Inc. will be relocating approximately 32 jobs from their corporate office into the downtown building ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with 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 South Bend Redevelopment designation areas finds that the property is located in the River West Development Area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a two (2) vacant building tax abatement under section IC. 6-1.1-12.1-4.8. § \ \ § \§ //) ! ;!!! !!)E; #!!! \ . !|; z; §\ §\ Ei ! § /)!i! ■ ! ; \ \ §§ \ \} \ \ § \§ //) ! ;!!! !!)E; #!!! \ . !|; z; §\ §\ Ei City of South Bend Petition for Incentives.. Petition must Include a$150Jllingfeepayable to the City Clerk's Office or online via the City's website atzz4s 4egal nameas r egirteredwilh Secretary of I JSK Development Inc. ISo V7- fJHOcD, LLC ' S -Corp rriarmy company Water name AJ Patel a President Addressofcampanywltao[ 247 North Olxleway Phone 674 - 387-0468 city,state,2lp e South Bend IN 46637 Email mail @jskhotel.com Comparrysemoroflicial am AJ Patel title Address of company colGCt(if different from Same Phone city,, state, Zip I Email Hired business consultat"agent name consultant release MNJ Address I tow[ economic development partners approval CYINI City, State, lip I I lEmail This project Involves the construction of a full - service national bran 120 roan hotel and connecting annex to the former College Football Hall of Fame. The HOF would become a mutt' use, owner-occupled property which would house all the support services for the new hotel (reception, restaurant, etc) as well as the new home for JSK Development corporate offices. JOHN v p MY MERK, SOUTH BEND, IN notbeen IN.Notissued a . Has any 504 funding been revived? What is the value ofany equipment being purchased in Intlianafa the projeR? What isthe value of any equipment being purrdas edhcmoutofstatefortheproject? Public Infrastructure n�eds(Off. siteofprojectlndpllars) .Calendar Year Land Acquisition Building Lease Paymen(s Building Purchase Cost' New Building Mrstruttfon Existing Building Improvements New Machinery & Equipment Special Tooling /Retoogpg New Famitur¢ /Fl #ure New Computer /RHan,l New Software On -site Rail Infrastructlre On-s@e Fiber Infrastrucjare r I 2015 2016 i $ 5,000 S5m,000 $6,000,000 530,000 5200,000 51.000,000 r.. 2017 2018 2020 Z021 S150,000 $150,000 S 20,000 S 600.000 5250,000 $1,00,W0 calendar Year Jobzretained jwage e Total hourly w/o fringeor bonuses Cumulative of .et NEW full time perrnanem jobs created at project Hourlya�wase,w /o Totaltraining benefitsorbonuses,of expenditure- mmulativenetnewjobs not cumulative To"INtobe trained -not cumulative 2015 j 2016 2017 33 2018 5 $12.88 $21.60 2019 2020 2021 2022 2023 2024 2025 2026 Full 0me Parttime I Laborers j $9.00 $9.00 Technical i Managerial i $21.60 Adminittra& $1150 ovn e e nua respona a orcoor ma ng xn Wo One on recruiting? Ken Herman Doesyour tympany, hapean EEOhiring policy? Ye5 Are you an EEO employer? Yes Please describe your commitment to diversity and inclusion by detaifmg your wtreadi and reauitmenteBortsforthelast three years as well as current policies. Year 2072 _ 2013 2014 Full Time Part Time Full Time Part Time Fullrme Part Time Black 6 2 4 Hispanic 7 3 10 Asian Indian 1 Female 20 5 t8 Other i Whatis the <urcent asselssed vaiue2 Real Property: rO Personal Property: Whatisthepmjectedasessed value? Real Property: Personal Property: What is theta. key number for this project? I �, 3oc i OOZY • ' �� 00/ Sy% 0 What is the she digit NA(CS Md.? I Please attach a Google plait and street view of the location. I Please fist the amount df real and personal property taxes paid for the last five yetis when applicable. Real Property Taxes: Personal Property Taxes: Year One 1 Year Two i iYear Three r Year F... i Year Five - x go—, NA Paints Points Public Benefit Item: � Project Related: 5 .A. Redevelop a Sitethet has Special Needs 49 B. Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan 36 i Sub -total Project Related: D 120 i 6 Super Size Proiects(point values are cumulative): A. 100 %to 199% 25 25 is. 200% to 299% 68 j C. 300% to 399% S" 65 ID. 400% and Over Z 52 Sub -total Super Size Projects: 0 210 7 Pay for'Municioal Infrastructure: A. Pay for Oversizing or Upgrading 14 B. Payfor 2630% of Extension Cost 26 C. Payfor5l -75 %of Extension Cost 39 D. Pay for 76 -100% of Extension Cost 52 Sub -total Infrastructure Related: 0 131 Total from Applicant Section: 2-16 3H (, 539 Total from Staff Section: 0 2 461 Total Public Benefit Points: 326 1000 Pubhc Benefit Item: Information is required on both the construction companies and the companies which will provide materials purchased for this project. Please complete the table below with the appropriate p ppro riate information. If you qualify for the points, please enter the full amount of available points. - Quality (yes or No Earned Points Available Points 1 Construction Related(Contractorsl: A. - Employ Local Companies QS%) _ - Y 20 20 B. Purchase Materials from Local Companies (75%) Y 20 20 C. Require Employees vs. Independent Contractors Y 19 19 D. .. Require Prevailing Wage (Davis Bacon) Y 22 22 E. Require Health Benefits Y 22 22 F. Require Pension Benefits 18 G. IMaintain Affirmative Action Plan Y 20 20 Sub -total Construction Related; 123 141 2 - - Wage & Benefit Related (Owned: A. Pay Target Wage Levels N 33 B. Provide H ealth Benefits Y 34 34 C. Provide Pension Benefits N 29 D. Provide Training Y 28 28 E. Provide Child Care N 15 F. Provide Transportation Assistance N 14 G. JProvide Employer Assisted Housing program N 9 Sub -total Wage & Benefit Related: 62 162 3 Workforce Related: A. Create New Jobs Y 42 42 B. Retain Existing Jobs 41 C. Maintain Affirmative Action Plan Y 35 35 D. Provide Targeted Hiring Preference 34 Sub -total Workforce Related: 77 152 4 Support a Municipal Facility: A. Support a 58 Municipal Facility (donations to the zoo, conservatory, museum, etc.) Y 84 84 Name of Facility Sub -total Municipal Facility: 184 84 Sub -total from Above: 1346 539 The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of the City of South Bend for a real and /or personal property tax abatement consideration and pursuant to I.C., 6 -1.1. 12.1 -1, et sea., and South Bend Municipal Code Sec. 2 -76 etsea.• for this petition state the above.