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HomeMy WebLinkAboutBill 16-13 Tax Abatement extension for LaSalle Apartments LLC227 W. JEFnRsoNBomEVARD STATE 1400 S. SouTH BEND, IN 46601.1830 March 3, 2016` CITY OF SOUTH BEND PETE BUTTImIw, 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 Fnx: 574/235 -9021 RE: Real Property Tax Abatement Extension for: The LaSalle Apartments, LLC Dear Council Member Ferlic: On March 10, 2014, Great Lakes Capital Development was granted declaratory resolution number 4327 -14 for a 10 year real property tax abatement for work to be completed at The LaSalle Hotel. Confirming resolution number 4330 -14 was passed on March 24, 2014. The project never materialized and RealAmerica Development, LLC, operating as The LaSalle Apartments, LLC, purchased the property and began revitalization work to the building. On January 21, 2015, Real America Development, LLC was granted the transfer of the original abatement. Per Section V of the original resolution #4327 -14: "The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council." Due to the transfer of the original abatement, the work will not be completed during the two year window, as noted above. The project is currently scheduled to be completed in September 2016. We kindly request a one (1) year extension be granted, enabling the work to be completed and for the abatement to remain active. A representative from Real America Development LLC will be available to meet with the Committee on March 14, 2016. 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 -5823. s Sincerely, Filed in Clerk's Office Aaron Kobb I Director Economic Resources MAR 0 9 2016 KrRREEMAH FOWL IL RESOLUTION NO. 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, South Bend, IN 46601 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, South Bend, IN 46601 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, 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. WHEREAS, the Council issued a Confirming Resolution confirming the adoption of a Declaratory Resolution as Resolution No. 4330 -14 on March 24, 2014; and WHEREAS, the petitioner has exceeded the two year designation period granted in the Confirming Resolution, which expired on March 10, 2016; and continues to move forward with the project with the full expectation of completion in 2016. WHEREAS, the Petitioner has requested an additional period of time to complete construction of the planned project. Due to the transfer of the abatement from the previous developer, RealAmerica Development, LLC did not have a full two years to complete the planned project. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Petitioner acknowledges that they have exceeded the two year designation period granted in the Confirming Resolution due to the following: A. This abatement approval was transferred to RealAmerica Development, LLC, operating as The LaSalle Apartments, LLC, after the previous developer was unable to move forward on the project. RealAmerica Development, LLC was granted the transfer on January 21, 2015 and began construction on the building. The project is currently scheduled to be completed in September 2016. The Common Council hereby finds that the extension of the designation is appropriate in light of the aforementioned reason noted above. SECTION II. The Common Council hereby reconfirms its Declaratory Resolution and its Confirming 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 three (3) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. 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 ten (10) 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 IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. PRCSEMS F40T APROM 'ADOP7r,n Member of the Common Council