Loading...
HomeMy WebLinkAboutConfirming Tax Abaement - RDistrict One, LLC 635 S. Lafayette Blvd. (10 Year Real Property) RESOLUTION 4514-15 Passed by the Common Council of the City of South Bend, Indiana December 14, 15 20. Attest: c ter4c_ _ City Clerk Attest President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 15, 20 15 J�JL- City Clerk Approved and signed by me Deceit-4.4 20L. Mayor RESOLUTION NO. ` { A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 635 S. Lafayette Blvd., South Bend, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR RDistrict One, 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 635 S. Lafayette Blvd., South Bend, IN 46601 and which is more particularly described as follows: LOT 1 RENAISSANCE MINOR SUB 16/17NP#7935 10-01-2015 LOT 3 RENAISSANCE MINOR SUB 16/17NP#7935 10-01-2015 and which has Key Numbers 018-3043-165409 and 018-3043-165402 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 of the Common Council ! Filed 1 � , , T 8 2015 PRESENTED �' q-C L-1 ` - CITY CL_ a aOUTIH ti-END,IR9 NOT APPROVE ADOPTED [L-L l-k °'SOUTH g . $ 04lNO,+O 227 W.JEFFERSON BOULEVARD ;( / PHONE:574/235-9371 SUITE 1400 S. @ o � �o e Fax:574/235-9021 SOUTH BEND,IN 46601-1830 /2 •!8 / CITY OF SOUTH BEND PETE BUTTIGIEG,MAYOR COMMUNITY INVESTMENT SCOTT FORD,EXECUTIVE DIRECTOR November 17, 2015 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: RDistrict One, LLC Dear Council Member Ferlic: Please find the attached information pertaining to a real property tax abatement petition for RDistrict One, 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 total cost for the construction is estimated at$14,500,000. The project meets the qualifications for a (10) ten year real property tax abatement. A representative from RDistrict One, LLC will be available to meet with the Committee on Monday,November 23,2015. 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. S/iinnJjcerely, Brock Zeeb Director Economic Resources n•.r o 0. PN PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C.MEYER CHRIS FIELDING BROCK ZEEB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: RDistrict One, LLC DATE: November 17, 2015 On Tuesday, November 17, 2015, a petition from RDistrict One, LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at 635 S.Lafayette Blvd,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 ➢ RDistrict One will develop Buildings "112 and 113" on the former Studebaker Assembly site in partnership with Studebaker 84 LLC. This development will adaptively re-use approximately 220,000 sq. ft. of space for educational,innovative office, mechanical, and advanced manufacturing space. ➢ $14,500,000 investment in building improvements and fixtures ➢ Total project taxes during ten year abatement period—$3,192,715 ➢ Estimated taxes being abated during ten year abatement period—$933,691 ➢ Total taxes to be paid during ten year abatement period—$2,259,024 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: ➢ Create (20)twenty, full-time and zero (0)permanent,part-time jobs during the ten year abatement period, representing a new annual payroll of$800,800. PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C.MEYER CHRIS FIELDING BROCK ZEEB ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not 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. 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(10)ten-year real property tax abatement under section 2-84.2, Real Property Tax Abatement. ---- - . t,111a r o, i, -, 6 2°15 i i i 10 YEAR 17-Nov-15 RDistrict One, LLC South Bend Portage Township Real Property Tax Abatement Schedule* Tax Key Number 016-3043-165409;018-3043-165402 Current Assessed Value: 845400 _ Estimated Project Cost: 14505000 Current Without 100% 95% 80% 65% 50% 40% 30% 20% 10% 5% Assessed Value' AV B Tax Abatement Year 1 Year 2 1ea13 Year4 Year5 Years Year 5 Year5 Year5 Years Current Assessed Value 100% 845,400 845,400 845,400 845,400 845,400 845,400 845,400 845,400 845400 845400 845,400 845,400 Base Assessed Value 55% 7,975,000 7,975,000 7,975,000 7,975,000 7,975,000 7,975000 7,975000 7,975,000 7,975,000 7,975,000 7,975,000 Less Abatement Deduction 0 (7,975,000) (7576,250) (6,380,000) (5,183,750) (3,987,500) (3,190,000) (2,392,500) (1,595,000) (797,500) (398,750) Net Assessed Value 845,400 8,820,400 845,400 1,244,150 2,445400 3,636,650 4,832,900 5630,400 5427500 7,225,400 8,022,900 8,421,650 Prooerty Taxes' Assume constant tax rate of 5.4968% 5.4968% 5.4968% 5.4968% 5.4968% 5.4968% 5.4968% 5.4968% 5.4968% 5,4968% 5.4968% 5.4968% Gross Tax(tax rate x net assessed value) 46,470 484,841 46,470 68,389 134,144 199,900 265,655 309,493 353,330 397,167 441,004 462,922 Less Circuit Breaker Credit (15,869) (165,569) 0 0 0 0 0 (9,989) (48,584) (87,779) (126,674) (146,122) Net Tax 30,601 319,271 46,470 68,389 134,144 199,900 265,655 299,503 304,445 309,387 314,329 316,600 Circuit Breaker Cap Circuit Breaker 3.0000% 25,362 264,612 264,612 264,612 264,612 264,612 264,612 264512 264,612 264,612 264,612 264,612 Debt Service 0.6197% 5,239 54,659 5539 7,710 15123 22,536 29,949 34,891 39,833 44,775 49,717 52,188 Circuit Braker Cap 30,601 319,271 269551 272,322 275735 287,148 294,561 299,503 304445 309,387 314,329 316,800 New Combined Net Existing Project Existing B New Tax Tax Leg Taxes Lazes Taxes bated Paid 1 30,601 285,671 319,271 272,801 46,470 2 30,601 288,671 319,271 250,883 68,389 3 30,601 288,671 319,271 185,127 134,144 4 30,601 288,671 319,271 119,372 199,900 5 30,601 288,671 319,271 53,616 265,655 6 30,601 288,671 319,271 19,768 299,503 7 30,601 288,671 319,271 14,826 304,445 8 30,601 288,671 319,271 9,884 309,387 9 30601 288,671 319,271 4,942 314,329 10 30,601 288,671 319,271 2,471 316,800 Totals 306009 2,886706 3,192.714 933.691 2 259 024 *This schedule is for estimation purposes only and assumes constant tax rates. The toe tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. i '111 t re QV 1 I C) ■ (A 1 . sly.:;.'! C3 . 3 L -" • • • 1-J if i it,. •; 1 y. o City of South Bend Isottrrtft., Petition for Incentives o Petition must include o$250 filing fee able to the Clerk's Office or online via the City's website at $ . fi 91 PaY. �Y f� ty� la4y http://southbendln.gav/government/content/tax-abatement before processing can be complete General Information Project Name Project Number__. regal name as registered with Secretary of RDistriCt One,LLC State Business structure limited liability company partnership Company webslte Proposed Project Information Proposed project address 635 S.Lafayette Boulevard Parent company name Studebaker Building 84 LLC City,State,Zip I South Bend,Indiana 46601 Legal owner Studebaker Building 84 LLC Site acreage or acreage required is the real estate owned or 10.41 acres Owned/Will be purchase mid constructic leased Square feet offadllty 221,608 If leased by whom Primary Contact Information Primary company contact name Marty Shrader Title CFO Address of company contact 7661 N.Perimeter Road,Suite 100 Phone 317-431-7941 City,State,Zip Indianapolis,Indiana 46241 Email mshrader @paulkileco.com Senior Official Information Company senior official name Paul Kite Title Manager Address of company contact(if different from O.BOX 853 Phone 317-590-1025 abovel city,State,Zip Zionsville,IN 46077 Email pkite@pautkiteco.com onsultant Information/Agent Hired business consultant/agent name Shawn E.Peterson,Krieg DeVault,LLP Consultant release(Y/N) y Address 4101 Edison Lakes Parkway,Suite 100 Local economic development partners I N approval{Y/NI l City,State,Zip Mishawaka,Indiana 46545 Email speterson @kdlegal.com •roject Overview Brief description of your RDlstrict One will develop Buildings 112 and 113 on the former Studebaker Assembly site in partnership with Studebaker company,project,and why the 84 LLC. This development will adaptively re-use approximately 220,000 square feet of space for educational,Innovative property Is necessary for office,mechanical and advance manufacturing space as the first phase of the larger Renaissance District project. Due to economic growth the security,Infrastructure and scale of the project relative to the market,the first phase requires additional assistance during the Initial lease-up stabilization and financing period. Certified Technology Park appropriate No Community Revitalization Enhancement Yes Quinn sit Certify that the Building Permit has not been Not issued Number of residential units created by None on first phase Issued It/NI c:cic. If this Is a petition for personal property tax abatement,has No the equlpme.nnt been Installed Investment Details Public Infrastructure needs(Off- Has any 504 funding been What Is the value of any equipment being purchased In What Is the value of any equipment being site of project in dollars) received? Indiana for the project? purchased from out of state for the project 7 None None New Project Investments Calendar Year 2014 2015 20.16_ 2017 2018 2019 2020 2021 Land Acquisition S 0 Building Lease Payments S 0 --_ Building Purchase Costs $0 New Building Construction S 0 Existing Building improvements 5 14,500.000 -__-- New Machinery&Equipment SO -_-_- SpedalTooling/Retooling S0 ___-- New Furniture/Fixtures S 2,675,000 New Computer/IT Hardware $0 New On-si Software Rail infrastructure S 0 On-she Fiber infrastructure 5 257.250 -_--- TOTAL Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year lobs retained Total hourly Cumulative B of net NEW full time Hourly average wage,w/o Total training Total a to be wage w/o permanent jobs created at project benefits or bonuses,of expenditure- trained-not hinge or cumulative net newjobs not cumulative bonuses cumulative 2014 65 -_ 2015 2016 10 20,00 2017 5 18.50 2019 5 18.50 2019 2020 2021 2022 2023 2024 2025 Provide hourly wage information for new employees in the following positions. -_ - Full time -- Part time Laborers 70 Technical 3 Managerial Administrative o e e n, ,uai responsible or coon oat ng t WorkOne on recrultlne? THD Does your company have an EEO hiring policy? !fie ycu an EEO employer? yes yes Please list the number of full time and part time minority and/or female employees for each of Please describe your commitment to the last three years: diversity and incJusion by detailing your outreach and recruitment efforts for the last Year unknown three years as well as current polides. Full Time Part TTme FullTlme Pert Time Full Time Part Time Bradt Our survey of prospective tenants did Hispanic __---_ not include this information. Asian _--_-- Indian Female ______ Other _----_ Complete below for Real or Personal Property Tax Abatement only. Please sign for all requested incentives. Public Benefit Item: • Information is required on both the construction companies and the companies which will provide materials purchased for this project. Qualify Please complete the table below with the appropriate information. If Earned Points Available Points (Yes or No) you qualify for the points,please enter the full amount of available points. 1 Construction Related(Contractors): A. Employ Local Companies(75%) Yes 20 20 B. Purchase Materials from Local Companies(75%) Yes 20 20 C. Require Employees vs.Independent Contractors No 0 19 D. Require Prevailing Wage(Davis Bacon) No 0 22 F Require Health Benefits No 0 22 F. Require Pension Benefits No 0 18 G. Maintain Affirmative Action Plan Yes 20 20 Sub-total Construction Related: 60 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels Yes 33 33 B. Provide Health Benefits Yes 34 34 C. Provide Pension Benefits Yes 29 29 D. Provide Training Yes 2B 28 E. Provide Child Care No 0 15 F. Provide Transportation Assistance No 0 14 G. Provide Employer Assisted Housing program No 0 9 Sub-total Wage&Benefit Related: 124 162 3 Workforce Related: A. Create New Jobs Yes 42 42 B. Retain Existing Jobs Yes 41 41 C. Maintain Affirmative Action Plan Yes 35 35 D. Provide Targeted Hiring Preference 34 Sub-total Workforce Related: 118 152 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A. zoo,conservatory,museum,etc.) Yes 64 84 Name of Facility 1 $Sub-total Municipal Facility: 84 84 Sub-total from Above: 386 539 The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and South Bend Municipal Code Sec.2-76 et seq.,for this petition state the above. Submitted By: _ . I../ Date: What Is the current assessed value? Real Property: 8z/3 Woe:, Personal Property: 0 What Is the projected assessed value? Real Property: J Personal Property: What ls the tax key number for thlsproject? I0/g-301,13-/6$`1G9 i 0/8._30c/3 -/(os411Z What is the six digit NAICS code? Please attach a Google map and street vlewof the location. Attached Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last Five years when applicable. Year One .1F'3 Of 3 ei Year Two 3Gr�Q / Year Three 32 ,/i1/ Year Four 7 Z, /p Year Flve 32,6-7 7 Staff Use Only Please fill out the Public Benefit Summary Information and add to the total from above. IV or N) Points ( Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs Yes 49 49 B. Develop Based on Local University Research Yes 35 35 C. Achieve a Physical Element of a Plan Yes 36 36 ISub-total Project Related: 120 120 6 Super Size Prolects(point values are cumulative): A. 100%to 199% Yes 25 25 B. 200%to 299% Yes 68 68 C. 300%to 399% Yes 65 65 D. 400%and Over Yes 52 52 !Sub-total Super Sire Protects: 210 210 7 Pay for Municipal Infrastructure: A. Pay for Oversizing or Upgrading 14 B. Pay for 26-50%of Extension Cost 26 C. Pay for 51-75%of Extension Cost 39 D. Pay For 76-100%of Extension Cost 52 'Sub-total Infrastructure Related: 0 131 Total from Applicant Section: 386 539 Total from Staff Section: 330 461 Total Public Benefit Points: 716 1000 1 r ?1115 Supplement to Petition for Incentives Frequently Asked Questions We are frequently asked to explain the following questions,in an effort to clarify we are providing answers below. I)How do I pay my petition filing fee? Your petition filing fee can be paid either in person or via mail to: Or online via paypal at: City Clerk's Office http://southbendin.gov/government) Attn:Deputy City Clerk content/tax-abatement 227 West Jefferson Blvd.•Suite 400 S South Bend,Indiana 4660I 2)Certified Technology Park appropriate?(Page one,under project overview) In the South Bend area there are only two Certified Technology Parks,Innovation Park and Ignition Park. If your property is not located in either then the answer would be no. 3)Community Revitalization Enhancement District?(Page one,under project overview) The map below outlines the CRED area,please check to see if you fall within the boundaries. 1CREeD District Boundary) - 6 _ G19co - S25i South l / ' 'sue' "•�}_ _ _ _ a fold ar A/z if / w-�w+ew '7%1. Poland S Dunham FIoh, Tuft Tuu $ Samplo 3 Kart Ohlo Gars: LL S i c f4- Ignitlon F'ul Legend Y 3 N r, s Inrfvna r E ;' O GRE•O Db4it1 Ind," r�south Bend Parcels r I$ I\ 4) Has any 504 funding been received? (Page one,under investment details) 504 Funding is a loan that come from the Small Business Administration. This funding must be applied for to be received. 5)Total training expenditure-not cumulative(Page two,under full time Indiana resident positions) The amount of money to be spent per year on training over the course of the project. 6)Total number to be trained-not cumulative(Page two,under full time Indiana resident positions) The amount of people that you will train per year over the length of the project. If you have any additional questions that are not addressed by this document,please contact Sarah Heintzelman in the Department of Community Investment at 574.235.5842 or email at sheintzeCasouthbendin.gov 635 S Lafayette Blvd - Google Maps Page 1 of 1 Go ,.gle Maps 635 S Lafayette Blvd W We Ste!f I Ave W Western Ave W Wes11,AY, W WeStC-,AA, rg W Vo-stem Ave .•:, ,. '...paws,— . . e.Ws Cr lia Sian KrO4= ... -' " W Monroe St E Monroe St E Monroe St E 5 ,..2 o e5 e 4^ . K , I k - 7 a t. S.'' L r.,....,,::-• wsoLISSF 5 US Saul sena, anon...raw, 5- arra•Salad ABC Sally Co kW a P f.35 s Lstayal•BPS y Swan Deartmat ''' M . •G W Spilaaar C C'''+,,ic, 2 il 1.•ma Bala!my -----0 e P. .r.v,::::.... M , „ 1 i law aend f CV § i ,c ame aa L 1.4reia.• $ g A • C, arta of Traffic.. .••:' g • ••'•LK.,17''' , • Gm,CO.CO a E., . Go gle . - l •la.Bar,. F. W"Am St to 1 5,7.1.am Pace Map data©2015 Google 200 ft I--I 635 S Lafayette Blvd South Bend, IN 46601 At this location Ivy Tower Corporation Storage - S Lafayette Blvd South Bend Motor Freight Trucking Company . S Lafayette Blvd 1 r E.:.•.:: T-----:,:,,,,,,,, 16 L_ _. 1015 ; . .. I, , _._ https://www.google.com/maps/place/635+S+Lafayette+Blvd,+South+Bend,-FIN-1-46601/... 11/17/2015 Ivy Tower Corporation - Google Maps Page 1 of 2 Go:..glae Maps Ivy Tower Corporation H •!! J 1 is P F ,�� _ „,, .-17._,.:74,,,it.,.*.,:-.f. ,_,,:kg,...,,,,, 2, ,ton- ... .., _ ' :..1... , 1011W 44r. . orm-- ,,,,,,a.,:.,,,, .c. --...,[_, . . „,„, ,, ,,,,,,‘, , _y. ; Y..y, r ` ,Y + i; /k ' T.t 11,1T,..... 3 j1tth1j z E.... �� _ : R • -;..:' .. r d- mgt t -J 9 --' - A: .._ I.5 tF II I Imo[ : ,:-.;,2 //y1 i ' :c ogle. _ A _ �/1j; ' �- R ,h = Imagery©2015 DigitalGlobe,IndianaMap Framework Data,USDA Farm Service Agency,Map data 02015 Google 100 ft I-- Mr”t 5 / .-• " %--"'"""---- ..-. __" ., `\\ate_ ` 1 ` I . Ivy Tower Corporation Storage Pi/colt.: - .,.- �i f- 635 S Lafayette Blvd,South Bend, IN 46601 ,. (574) 239-1320 �' ,8 Z015 CIn, Jtt' I o https://www.google.com/maps/place/Ivy+Tower+Corporation/@41.6678226,-86.256284... 11/17/2015 761 S Lafayette Blvd- Google Maps Page 1 of 1 Go gl, Maps 761 S Lafayette Blvd _ , t -_==— ' +;w 1 t . k- _ _ ' -----_-_ir.A.,---7.4.--:7, -- -_41.4.- oppri. . IIIIIIIIIhwwi Google Image capture:Sep 2011 ©2015 Google South Bend,Indiana Street View-Sep 2011 W South St <4 Ivy Tower m n Q y iit'-'n_ https://www.google.com/maps/@41.6676166,-86.2533949,3a,75y,269.73h,88.46t/data=!... 11/17/2015