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HomeMy WebLinkAboutBill 16-18 Tax Abatement for East Bank South Bend Development LLC227 W. JEFFERSON BouLEvARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 March 7, 2016' 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 FAx574/235 -9021 RE: Real Property Tax Abatement Petition for: East Bank South Bend Development, LLC Dear Council Member Ferlic: Please find the attached information pertaining to a real property tax abatement petition for East Bank South Bend Development, 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. East Bank South Bend Development, LLC will be investing approximately $2,500,000 in the construction of a new six story mixed use building. The project meets the qualifications for an (8) eight year real property tax abatement. A representative from East Bank South Bend Development, LLC will be available to meet with the Committee on Monday, 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. Sincerely, Aaron Kobb Director Economic Resources Filed in Clerk's Office MAR 0 9 2016 KAREEMAH FOWLER GITY CLERK, SOUTH REND, IN PLANNING NEIGHBORHOOD ENGAGEMENT $USINESS DEVELOPMENT ECONOMIC RESOURCES PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 215 Sycamore Street, South Bend, IN 46617 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN (8) EIGHT -YEAR REAL PROPERTY TAX ABATEMENT FOR East Bank South Bend Development, LLC WHEREAS, a petition for real property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area commonly known as 215 Sycamore Street, South Bend, IN 46617 and which is more particularly described as: LOT 9 EAST BANK TOWNHOMES MINOR SUB NP #132 01 -06 -11 and which has Key Numbers 01 8- 5003 - 005808 be designated as an Economic Revitalization Area under the provisions of Indiana Code 6 -1.1 -12.1 et sew., and South Bend Municipal Code Sections 2 -76 et sue., 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, the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6 -1.1 -12.1, et sec,., and South Bend Municipal Code Sections 2 -76, et sM., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS, the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6 -1.1 -12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6 -1.1- 12.1 -3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6- 1.1- 12.1 -3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. 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. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of (8) eight years as shown by the attachment pursuant to Indiana Code 6- 1.1- 12.1 -17. SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana 2 Code § 5 -3 -1 and Indiana Code § 6 -1.1- 12.1 -2.5, said publication providing notice of the public hearing before the Common Council on the proposed confi -ring of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. NtsrrJ- 1 to $01 APR® Member of the Common Council 3 Filed in Clerk's Office MAR 0 9 2016 KAREEMAH FOWLER CITY CLERK, SOUTH REND, IN TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: AARON KOBB SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: East Bank South Bend Development, LLC DATE: March 8, 2016 On Wednesday, March 9, 2016, a petition from East Bank South Bend Development, LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at 215 Sycamore Street, South Bend, IN 46617. 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 ➢ Estimated $2,500,000 construction of a six story mixed use building with ground floor commercial and residential on floors 2 -5 along with a common area on the sixth floor. The ground floor commercial space will be approximately 3200 square feet. Each floor of the residential units will consist of a one, two, and three bedroom apartment for a total of 12 residential units. ➢ Estimated total taxes on new and existing building construction during the eight year abatement period — $580,917 ➢ Estimated taxes being abated on new building construction during the eight year abatement period — $234,495 ➢ Estimated taxes to be paid on new and existing building construction during the eight year abatement period — $346,422 EMPLOYMENT EMPACT Per the petition, it is estimated that the total project will: ➢ Create 2 permanent, full -time jobs within the eight year abatement period, representing a new estimate annual payroll of $91,520 ➢ 14 total jobs will be retained with a total annual payroll of $640,640 PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner 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. 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 an (8) eight -year real property tax abatement under section 2 -84.2, Real Property Tax Abatement. r R G h m�mrn�mfpmm a at Zia fNnaooa°)_ °mfno �NQ fp fnD mfg 1, O n 1 p m r o w r NOh[°pM I�OtO nf°n)�M�vmr d�W fn fn�u)mfnmfn n d nZ fomfpmmmmm m ocm �n��nnnn om U c to W m y 3 W vvvavvvv Zrn rn rn w m rn rn m � 16 �'� mmmmmmmm fri IL N N N N N N N N O nnnnnnnn n � L2 FE � C Wx N N N N N N N IV III III �� °OO °o° m rnrnc4i CO W } to 0f0p o Nh N V n O n to yp N Ym� E W co0 F U N W �00 /mD rNN r W } Cl) o o O d. C-4 r C j O CD � W R O lt) to O W fOp fop N o OI 0 10 ° 0 Or a °J m N m N y Q W pmj 0 0 }�omv m F W W y= !n a u�i rn r° Wain z 0a0 �( WeZ m m O n N m fop all } N Ew N .6 y W a 2 0 03 oaO co O .IO ``W`, co o0Q U) O O } (O f0 t0 Vm, M w M O � u) f°O N r r oM �OOOo ;e NON_ co �i tD y�0 C! }cp'of°pv fp O a O a m oNn vi Nr o m 0 0 so 0 n W00000 I m °r: lb W } m 'It aooao N N f o 0 0 N N (Op 'O U � 3 O I� e o00o a mom ma m 0000 m y 0 0 m m N N N tq mC u }m�Ofo V: r m O• N ui m C Q N r 4 k C � O m 000 o 000o 0 Qm -o o �Or Oo- fmp MOM cm-1 Oom oo LQ m000m o f00 A N o o N N ui L9 (Y m O p 000 o co �p O W mO m m fA N tD f7nN c0 c OT W O o O o td r m r n m a Q N N O O o tp fp m c( M m cl. co to 9"11 Q m m�mrn�mfpmm a at Zia fNnaooa°)_ °mfno �NQ fp fnD mfg 1, O n 1 p m r o w r NOh[°pM I�OtO nf°n)�M�vmr d�W fn fn�u)mfnmfn n d nZ fomfpmmmmm m ocm �n��nnnn om U c to W m y 3 W vvvavvvv Zrn rn rn w m rn rn m � 16 �'� mmmmmmmm fri IL N N N N N N N N O nnnnnnnn n � L2 FE � C Wx N N N N N N N IV III III 90 W v�f� 3 oo O n yp Ym� E W co0 F U W f C j O CD � W R f � f E W s Ti> iri a tu CL N 0-Y. � 0 N y Q W m F W W y= !n �G Wain z 0a0 �( WeZ �UOV V Q m all } t y y Ew N .6 y W a 2 0 03 NUNN FIRM East Hank Fiats East Bank South bend Development, LLC Single member LLC Matlt+eWsLLC,com IN 46617 3ckv i� xzcsd 121 S. Niles Ave - Senior Official Information Construction of a 6 story mixed use building with ground floor commercial and residential on floors 2, 3,4 and 5, and a common area on floor 6. Commercial ground floor space is approximately 3,200 square feet The objective Is to test the market for new residential apartments in South Bend's Central Business District- Each of the floors 2 - 5 will consist of a one bedroom apartment, a two bedroom apartment and a three bedroom apartment The total # of residential units Is 12. The building Is to be built adjacent to the the East Bank Townhomes, facing Sycamore St. Filed in Clerk's Office MAR 09 20 6 KAREEMAH FO CITY CLERK . '3-OL I BEND, IN - New Project Investments Calendar Year TOTAL 2015 2016 2017 2018 2019 2020 2021 2022 Full -Time Permanent Indiana - Resident Positions by Calendar Year 6-, °'.. Provide hourly wage information for now employees in the following positions. pf-_ ---- _ Please list the number of full time and part time minority and /or female employees for each of the last three years: r— c; ; CLL.` Staff Usc only Please fill out the Public Benefit Summary Information and add to the total from above. 1) How do I pay my petition Sling fee? Yourpetition,llingfee can be paid either in person or via mail to: Or online viapaypal at: City Clerk's Of, jice http: / /$outhbondin govlgovernmentl Attn: Deputy City Clerk content /tax - abatement 227 West Jefferson Blvd. • Suite 4005 South Bend, Indiana 46601 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 yourproperty is not located in either then the answer would be no. 3) Community Revitalization Enhancement District? (Page one, under project overview) 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 spentper 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 th e 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 sheintze ftouthbendingov STATEMENT OF BENEFITS REAL ESTATE IMPROVEIVfENTS Slate Form 51767 (R4 t 2.13) Prescdbed by the oPai. ment of Local Ciovemment Finance This statement is being completed for real property'lhat qualifies under the folbwing Indiana Code (check one box): © itedevelopq►entor'reh biltta jlon of re estate improvemenls,(IC 61.9 -12 9-�tj Residen tiallydistressed area (It 8 -1.1'- .9,2;1 -4.1) >payer (numberantl sfroeE oily, slate, and ZIP code) ve, South Bend, IN 46617 act person Telephone number E -mail address rDavldMatthews 74 607 qn1 (' ) David�MatlhewsLLC.com onating body Resolution number South Bend Common Council Location of properly County DLGF taxing district number 215 Sycamore St, South send; IN 46517 St. Joseph County Description of real property improvements, redevelopment, or rehabilitation (irse additional sheols Irnecessery) Estimated start date (month, day, year) May 1, 2016 Construction of a 6 story mixed use building with ground floor commercial and residential on floors 2, 3,4 and 5, and a common area on floor 6. Estimated completion date (month, day year) September 1, 2016 curientnumber Saledes Numberretalned salaries Numberadditionat Salaries 14 766,000 14 14 2 90000 SECTIO • TOTAL COST AND VALUE OF PROPOSED PROJECT RFJ1L ESTATE IMPROVEMENTS COST ASSESSED.VAt.uE Current values a,500 6,100 Plus esilmeted values of prbilosed project 2,600,000 2,125,000 Less values of any property.bithg [e zoned 0 0 tJet [Wes UP Co' ` ie,Qon bf , p ect IZ5011.1500 2,131,100 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) Esumated hazardous waste converted (pounds) Other benefits SECTION _ • erebyc ettlij j6ejt the Lepreserflafidns in this statement are 3rue. Ll ure of o itl "prized repres at " ` Two Date siiggn month, day, yeeo --- Member 3, 6%1016 Page 1 of 2 We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed under IC 6 -1.1 -12.1, provides for the following limitations: A. The designated area has been limited to a period of time not to exceed calendar years' (see below). The date this designation expires is B. The type of deduction that Is allowed in the designated area is limited lo: 1. Redevelopment or rehabliitatiori of real estate improvements a Yes ❑ No 2. Residentially distressed areas ❑ Yes 0 No C. The amount of the deduction applicable Is limited to $ D. Other limitations or conditions (specily) E. The deduction Is allowed for years" (see below). F. Did the designating body adopt an alternative deduction schedule per IC 6 -1.1- 12.1 -177 ❑ Yes ❑ No If yes, attach a copy of the alternative deduction schedute to this form. We have also reviewed the Information contained in the statement of benefits and find dial, the estimates and expectations are reasonable and have dete=16ad that the totality of benefits is suf iclerit to Justify the deduction described above, Approved (signaWre and Vile ofsoModzed member of designating body) Telephone number Date slimed (month, day. year) ( ) Attested by (signature and tJtte ofatlester) I Designated body `'If the designating body limits the time period during which an area is an economic revitalization area, it does not Omit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under IC 6-1.1- 12.1 -4. A. For residentially distressed areas, the deduction period may not exceed live (6) years. B. For redevelopment and rehabilitation or real estate improvements: 1. It the Economic Revitalization Area was designated prior to July 1. 2000. the deduction period Is limited to three (3), six (6), or ten (10) years. 2. If the Economic Revitalization Area was designated after June 30, 2000, and is not in a residentially distressed area, the deduction period may not exceed ten (16) years. Page 2 of 2