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HomeMy WebLinkAboutBill 16-35 Resolution to Approve Property Tax Re-Assessment Defense Interlocal AgreementCOUNTY -CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601 -1830 PHONE 574.235.7678 TTY 574.235.5567 FAx 574.235.9928 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR DEPARTMENT OF ADMINISTRATION & FINANCE April 11, 2016 Mr. Tim Scott, President City of South Bend Common Council 227 W. Jefferson Boulevard, 4th Floor South Bend, IN 46601 RE: Resolution to Approve Property Tax Re- Assessment Defense Interlocal Agreement Dear President Scott: Representatives from the City of South Bend have been meeting this year with representatives from the City of Mishawaka and Saint Joseph County to discuss strategies to contest certain commercial property tax assessment appeals that have been filed. As a result of these discussions, the parties desire to enter into the enclosed Interlocal Agreement to coordinate their respective efforts. Under this agreement, each party would be responsible for the costs associated with appeals that occur in its territorial limits for property located within a Tax Increment Financing ( "TIF ") district and for a pro -rated share of costs based on total tax rates for property not located in a TIF district. An appropriation is not being requested at this time but, if needed, will be made using the City's regular quarterly budget amendment procedure. Efforts will be made to keep costs to a minimum and to keep the Common Council updated on the status of these appeals. I will present this bill to the Common Council at the appropriate committee and council meetings scheduled for April 25, 2016. Thank you for your attention to this request. If you should have any questions, please feel free to contact me at 574- 235 -7678. Regards, - -T-a- J h H. Murphy y City Controller Enc. Filed in Clerk's Office APR 12 2016 KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN 0 RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A PROPERTY TAX RE- ASSESSMENT INTERLOCAL AGREEMENT WHEREAS, Ind. Code Section §36 -1 -7 empowers the City of South Bend to enter into an Interlocal Agreement with any other local government(s) for joint or cooperative action of any power or powers, privileges, projects or authority, exercised or capable of being exercised individually by such public agencies, and to cooperate in furtherance of such joint action; and WHEREAS, the Indiana cities of South Bend and Mishawaka, along with the County of St. Joseph share a combined interest in entering into an Interlocal Agreement so that by a cost sharing process, they may efficiently and cost - effectively defend certain appeals of property Tax assessment including appeals by commercial retailers; and WHEREAS, the Property Tax Re- Assessment Interlocal Agreement attached hereto as Exhibit "A" has been approved by the St. Joseph County Commissioners, the St. Joseph County Council, and the Mishawaka Common Council, all of which bodies have found the terms of the Agreement to be fair, reasonable, and in the best interest of each governmental entity; WHEREAS, the South Bend Common Council finds that the attached Interlocal Agreement (Exhibit A) is fair, reasonable, and in the best interests of the City of South Bend, and should be approved. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AS FOLLOWS: Section I. The Common Council of the City of South Bend, Indiana has considered and hereby approves the Property Tax Re- Assessment Interlocal Agreement, attached hereto as Exhibit A between and among the City of South Bend, Indiana, the City of Mishawaka, Indiana, and the County of St. Joseph, Indiana. Section II. The Mayor is authorized to execute the Interlocal Agreement in form and substance the same as or similar to that of the Agreement attached hereto as Exhibit A. Section III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. City Clerk PRESENTED .. NOT APPROAG ADOPTig Member, Common Council Filed in Clerk's Office APR 12 2016 KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN EXHIBIT A Execution Copy of Property Tax Re- Assessment Interlocal Agreement (This space intentionally left blank) Property Tax Re- Assessment Defense Interlocal Agreement between St. Joseph County, Indiana The City of South Bend, Indiana, and The City of Mishawaka, Indiana This Property Tax Re- Assessment Defense Interlocal Agreement (the "Agreement ") is made and entered into this day of , 2016 between St. Joseph County, Indiana, the City of South Bend, Indiana and the City of Mishawaka, Indiana (collectively the "Parties "). Recitals A. The Parties are all political subdivisions organized and existing pursuant to the laws of the State of Indiana. B. The Parties, pursuant to Indiana Code § 36 -1 -7, et seq. are empowered to enter into an Interlocal Agreement with one another for joint or cooperative action of any power or powers, privileges, projects or authority, exercised or capable of being exercised individually by such public agencies, and to cooperate in furtherance of such joint action. C. The Parties share a combined interest in entering into this Agreement to further a coordinated effort by the Parties to efficiently and cost - effectively defend certain property Tax assessment appeals including commercial retailers. D. This Agreement is being entered to document and provide the Parties' Agreement concerning the sharing of costs regarding the defense of these appeals. SECTION 1. APPORTIONMENT OF DEFENSE COSTS - PROPERTY LOCATED IN A TIF DISTRICT. Each Party is responsible for any and all costs associated with any appeals that occur in their territorial limits for property located within a Tax Increment Financing ( "TIF ') District. The County shall engage all appraisers, attorneys, consultants and other professionals for the defense of all appeals. The St. Joseph County Auditor shall upon receipt of any invoices from a professional, tender the invoice to the Party where the property at issue is located. The Party within which the property at issue is located shall then pay any and a[e.ntE4@MifW:PWkfWiftce The St. Joseph County Auditor shall provide the Parties to this Agree of all invoices received. APR 1 2 ?Q16 REEM.AH 0WWLER ERK, SOU' -H t3END, IN SECTION 2. APPORTIONMENT OF DEFENSE COSTS- PROPERTY NOT LOCATED IN A TIF DISTRICT. Each Party is responsible for a pro -rata portion of the defense costs, commensurate with each party's percentage of the total tax rate received for each year subject to appeal if said property is not located in a TIF area. For these appeals, the County shall retain and pay all professionals directly. The responsible City shall then reimburse the County within sixty (60) days of receiving a request for reimbursement of the City's portion of professional fees. SECTION 3. MONTHLY REPORTING REQUIREMENTS. The St. Joseph County Auditor and Assessor shall prepare a monthly report to be provided to all Parties to this Agreement providing an update of the status of any appeals, costs associated with defense of any appeals, any and all other matters related to this Agreement. SECTION 4. COMPLIANCE WITH LAWS. The Parties shall comply with all applicable federal, state, and local laws and regulations in performing under this Agreement. SECTION 5. LEGAL RELATIONS. A. This Agreement is solely for the benefit of the Parties hereto and gives no right to any. otherparty. This Agreement is formed solely as an interlocal cooperation project under IC 36 -1 -7, B. This Agreement shall be interpreted in accordance with the laws of the State of Indiana in effect on the date of execution of this Agreement. The Circuit or Superior Courts of St. Joseph County, Indiana shall have exclusive jurisdiction and venue over any legal action arising under this Agreement between the Parties. C. Each party shall be solely and completely responsible for all acts and omissions of its employees, elected officials, attorneys or consultants and all other such persons acting exclusively on its behalf. D. The provisions of this Section shall survive and remain applicable to each of the parties notwithstanding any termination or expiration of this Agreement. 2 SECTION 6. TERMINATION AND DISPOSITION OF ASSETS UPON TERMINATION. A. This Agreement shall take effect upon its signing by the Parties. Any Party may terminate this Agreement in the event any other fails to perform a material obligation under this Agreement, and such failure has not been corrected to the reasonable satisfaction of the other in a timely manner after notice of breach has been provided. Notice of termination of this Agreement shall be given by the Parry terminating this Agreement to the other Parties not less than thirty (30) days prior to the effective date of termination. SECTION 7. RECORD KEEPING. The St. Joseph County Auditor and Assessor shall keep accurate records of all activities and expenditures conducted and incurred under this Agreement. SECTION 8. AUDITS, INSPECTIONS AND RETENTION OF RECORDS. The City of South Bend and the City of Mishawaka, and any of their representatives shall have full access to and the right to examine, during normal business hours and as often as they reasonably deem necessary, all of St, Joseph County's records with respect to all matters covered by this Agreement. Such representatives shall be permitted to audit, examine and make excerpts or transcripts from such records, and to make audits of all agreements, invoices, materials, checks, and other matters covered by or related to this Agreement. SECTION 9. SUCCESSION. This Agreement, together with all exhibits now or hereafter made a part, shall be binding on the Parties and their respective heirs, executors, administrators, successors and assigns. SECTION 10. ASSIGNMENT. Neither this Agreement nor any interest herein may be assigned by any Party without the prior written consent of all other Parties to the Agreement, and said consent shall not be unreasonably withheld. SECTION 11. NOTICE REQUIREMENTS. Any notice given under this Agreement shall be in writing hand delivered and/or given by sending such notice by certified mail, return receipt requested, with postage prepaid, addressed as follows, or at such other address as the Party to be notified shall have last directed in writing, or by serving said notice personally. 3 St. Joseph County: Andrew Kostielney President, St. Joseph County Board of Commissioners 1401 South Lafayette Blvd. South Bend, Indiana 46624 and Jamie C. Woods, Esq. Counsel, St. Joseph County Board of Commissioners 420 Lincolbway West P.O. Box 1210 Mishawaka, Indiana 46546 -1210 City of South Bend: Pete Buttigieg, Mayor 227 West Jefferson Blvd., Suite 1400 N South Bend, Indiana 46601 and Cristal Brisco, Corporation Counsel Legal Department 227 West Jefferson Blvd., Suite 1200 S South Bend, Indiana 46601 City of Mishawaka: Dave Wood, Mayor 600 East Third Street Mishawaka, Indiana 46544 and Geoffrey Spiess, Esq. Corporation Counsel 600 East Third Street Mishawaka, Indiana 46544 The effective date of notice shall be the date of personal service or the date of receipt as shown on the return receipt, as applicable. 4 SECTION 12. AMENDMENT AND EXTENSION. This Agreement and the exhibits now or hereafter a part of this Agreement shall not be deemed amended in any manner unless such amendment is in writing and signed by a duly authorized representative of each Parry. SECTION 13. SEVERABILITY. If any portion of this Agreement is ruled by a court of competent jurisdiction to be invalid, illegal or unenforceable, the remaining portions of this Agreement shall not be affected thereby and shall remain in full force and effect. IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed by a duly authorized representative. St. Joseph County, Indiana BY av\�T Andrew Kostielney, President fit. Joseph County Board of Commissioners Dave Thomas, Vice President, St. Joseph County Board of Commissioners Deb Fleming, St. Joseph County Board 5f Commissioners ATTESTATION: Michael Hamann, St. Joseph County Auditor City of South Bend, Indiana Pete Buttigieg, Mayor ATTESTATION: City of South Bend, Clerk City of Mishawaka, Indiana :i Dave Wood, Mayor ATTESTATION: City of Mishawaka, Clerk