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HomeMy WebLinkAboutConfirming Tax Abatement - Historic JMS Building, LLC 106-110 N. Main St. (10 Year Real Property)Attest: RESOLUTION 4461 -15 Passed by the Common Council of the City of South Bend, Indiana June 22, 15 20 . Presented by me to the Mayor of the City of South Bend, Indiana June 23 20 15 Approved and signed by me `) V to ?— i City Clerk President of Common Council 20-L7— . City Clerk RESOLUTION NO. l � W —t A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 106 -110 North Main St., South Bend, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (10) TEN YEAR REAL PROPERTY TAX ABATEMENT FOR Historic JMS Building, 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 106 -110 North Main St., South Bend, IN 46601 and which is more particularly described as follows: Key Number 018 - 1008 -0330 — Lot 21 Ex 5'N End & Ex 26' E Side Original Plat 99 -010 Split to 033003 Trans 9773 10 -7 -98 Key Number 018 - 1008 - 033003 — 20.33' X 70' Nw Cor Lot 20 Original Plat 99 -00 Split Fr 0330 Per 9773 10 -7 -8 Key Number 018 - 1008 -0331 - LOT 20 8X40 FT S SIDE OF 40 FT X 18 FT NE COR & MID PT N END LOTS 19 &20 62 1/2 FT ON WASH ST X 1112-3 FT DEEP O P SO BEND 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 (10) ten 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 seq. 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 o Common Counci PR@SENTED �'2'1' �r NOT APPROV.SD ADOPTia Filed in 1ff�ce MAY 20 2015 1 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 May 19, 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 PHONE: 574/235 -9371 FAx:574/235 -9021 RE: Real Property Tax Abatement Petition for: Historic JMS Building, LLC Dear Council Member Ferlic: Please find the attached information pertaining to a real property tax abatement petition for Historic JMS Building, LLC's downtown renovation: ➢ 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 total cost for the construction is estimated at $7,600,000. The project meets the qualifications for a (10) ten year real property tax abatement and a representative from Historic JMS Building 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, 1 ?A�-- 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 KAw PAMELA C. MEYER CHRIS FIELDING BRoCKZEEB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: Historic JMS Building, LLC DATE: May 20, 2015 On Wednesday, May 13, 2015, a petition from Historic JMS Building, LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at 106 -110 North Main 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 ➢ Renovate and reposition the primary office structure into a mixed use commercial retail and multi - family property. ➢ $7,600,000 investment in building renovation ➢ Total project taxes during ten year abatement period — $2,751,039 ➢ Estimated taxes being abated during ten year abatement period — $629,641 ➢ Total taxes to be paid during ten year abatement period — $2,121,398 EMPLOYMENTIMPACT Per the petition, it is estimated that the total project will: ➢ Create 8 permanent, full -time and zero (0) permanent, part-time jobs within the first year, representing a new annual payroll of $166,400 ➢ Retain 0 permanent, full -time jobs with an annual payroll of $0 ➢ Create 8 permanent, full -time and zero (0) permanent, part-time jobs, representing a total payroll of $1,664,000 over the life of the abatement PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES hTIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous abatements. The sponsor of the project, Great Lakes Capital, has been granted or associated with previous abatements. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the River West Development Area. 4. Per the Economic Development Commission (EDC), this project is identified and recommended as a target area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (10) ten -year real property tax abatement under section 2 -84.2, Real Property Tax Abatement. n tNOON S pomM NNrS NOMN Vi Q�N NPR •- b n $;Ng88 � �08 OSS b OdOmi t7i�N aVQr r b m a N88gg° � SS 8�8 NTn �O'7i � nme N$io p�Oe .p-m 0 0 ��I00000N ��O OOm ryOO N�Op mT NOmO N llm0 NmN F mN r b r h NOOtNNp b V0000 0000O NSMtO 4lNb mCNi �4 m OP^ YI N N N N �IONN N 00p00 O O0o 8NN OTI NfIOOO YI N N �OyNb N N s SO ma loom OOP IO NOON N O ^N J qN YNIN m6R N N O gm J � v C c h `1 g �y � � °m �� . -W ~ g al �i c�i�S o$Si3 `N� gym' E »> ===III O {y O m� O�r N ^ N�N ^�Nlm`INN(OV (nVN LO 14PtV V m � T�`N$$N O nON OtOOm ~ Nb�NPOmN1�0 f0 y hd JJJ"'''11111 O�m N g $ �ayl ^P •- ^'nHh�l�n.= m N ^N ID m S � DNS 8AOS0 •-cc To om oo P m $ °ryJ Oin E� nn�nnnnnnn p0'INm fOON N tV N V � NNNNNNNNNN I� o ^r R No W N p$O�N? 1O 1�f0 N Ze ry0 (0V 10V (0V (0V f0V ry00(0V {0V f� q0 3 "NS O h OWN NQm 6 N[J(VIVN(VNINVtVN (OV 2q @N n°i, 0 (m�1i X50 yO�N OOO OyNN 2000 U5 >N N N mNO Qm WFF11 hNmNNmmNNN$ ^ Ea >U r� ^NmPN10Al00�0 ?N aid ;f xVi YaE rio � om i >gw�� mI-M»m aE Q "¢oZ m ib Qz (pUaU_a E N City of South Bend Petition must tndude a$25012h01K L ZC It T city's webskeat �. be cpmoteee toss JMS Historic Building Res • • - taWMaarasrglstsrsdwldrSeoataryof • . Historic JMS Building LLC (filing pending) ludeaw structure Limited Liability Company c "N"aatbGts anvw.greatlakestapital.com developer / sponsorwebsite - - 106.110 North Main St faemtlwmp nvmme City, State, ZIP South Bend, IN 46601 lepl owner Skea>eaeeorae?6Wrmutred Historic JMS Building LLC Approximately 0.4 acres bthermlestoee owned" under contract for sale squarekat ef4ttlky Information Approximately 65,000 so ft dlaa�bl'wb= PdmMYeallMnY�'ee1Flbt Mrlle wassawassawas eryee 7oothaker 71Me eYmpuct 112 West Jefferson Blvd, Director Plains Stob,21p aty'stsulzip 574.251.4400 South Bend, IN 46601 tTttll bctoothaker @groatlakescapital.com Senior Official • MFWftywploroaldlmme Bradley Toothaker This Atlhesa ofoomparrycongct MdlRdwltfran Managing Partner sbovell Phone City, Stawti Final broothake rr@greatlakescapital.com why the -lied in �mvlq's Office 4 4 JOE,!. CITY CLERK, -UOTH BEND, IN ltaofpr*dindelers) Great Lakes Capital, based in South Bend. IN, as sponsor of the project, is a real estate private equity firm engaged in the development of a diverse portfolio of real estate assets. The Historic JMS Building LLC was formed to purchase, renovate and reposition the primarily office structure into a mixed use commercial retail and multi family property. Currently, the property is in poor condition and suffers from a large amount of obsolescence and extensive deferred maintenance. In addition, the building is over 75% vacant and in need of extensive renovation in order to become economically viable. The JMS building is a historically significant landmark building (listed on the National Historic Register), constructed in 1909 by John M. Studebaker, President of the former Studebaker Corporation. The building Is a beautiful eight 8 story structure. believed to be the very first 100% concrete superstructure buff in downtown South Bend. In addition, the building's elegant Terre Cotta exterior is one or only 2 remaining downtown structures with Torte Cotta exteriors and the only such mulfi story building of its style and type. Beyond the historical significance. restoration of the JMS building will add a great deal of notoriety and affirmation to the evolving redevelopment efforts in downtown South Bend. As such, this renewal effort will serve as a cornerstone project. significantly contributing to the Vitality of the downtown core area. No muffs for the project? Between 60- 70 New Project Investments Calendar Year TOTAL 2015 2016 2017 2019 2019 2020 2021 2022 Full -Time Permanent Indiana - Resident Positions by Calendar Year Provide hourly wale information for new employees in the following positions. Please list the number of full time and part time minority and /or female employees for each of the last three years: %.Orntlete below tor or • nal Property Tax Abatement only. Please for all requested Public 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 Information. If Qualify You qualify for the points, please enter the full amount of available (Yes or No) points. earned Points Available Points 1 ccrntnsaton Related ICnrrtatMral• A. Employ Local Companies (75%) 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) N 22 E. Require Health Benefits Y 22 22 F. Require Pension Benefits Y 18 18 G. Maintain Affirmative Action Plan Y 20 20 Subtotal Comtnxtbn Related: 119 141 2 Waae &Barrefk elated (.tact. A. Pay Target Wage Lewis Y 33 33 B. Provide Health Benefits Y 34 34 C. Provide Pension Benefits Y 29 29 D. Provide Training Y 28 28 E. Provide Child Care N 15 F. Provide Transportation Assistance Y 14 Sd G. Provide EmploverAssisted Housing program N 9 Subtotal Wage 9 Benefit Related: 138 162 3 4 Y 42 42 0. Create NeWJobs B. Retain Existing Jobs V 41 41 C. Maintain Affirmative Action Plan Y 35 35 D. Provide Targeted Hiring Preference N Subtotal Workforce Related: 3 2122da Munkdrml Fad A. SupportaWMuNdpal Fadlity(donatlonstothe zoo. C(nservatory, museum, etc.) Y W411;5B539 Name of Faclity Subtotal Municipal FadBty: Sub- totalfrom Above; - -- �-•'r. —� ••rurr.. um uay or mum mono, inertly petition the Common Council of the gtyl of South Bend fare real and/o personal property tax abatement consideration and pursuant to I.C., 6-1.1- 12.1 -1, et sea., and South Bend Muni al W `-a,,&-76 at sco, . for this petition state the above.