HomeMy WebLinkAbout6A(1) Resolution No. 2588 Tax AbatementG ~~D
RESOLUTION NO. 2588
A RESOLUTION APPROVING AN APPLICATION FOR
REAL PROPERTY TAX DEDUCTION
WHEREAS, LC. 6-1.1-12.1-2(1) provides that an application for property tax deduction may
not be approved when the property is located in an allocation area as defined in LC. 36-7-14-39,
unless the Redevelopment Commission which designated that allocation area adopts a resolution
approving that application; and
WHEREAS, the South Bend Common Council has received a petition for up to nine (9) years
of real property tax abatement consideration from Waggoner Fann Development, L.P./Ontario
Partners, L.P., for real property cun•ently known as Lot 2 located in the Portage Prairie Development
Area which in turn is located within the Airport Economic Development Area, the legal description
of which is attached hereto marked Exhibit "A" and incorporated herein; and
WHEREAS, this Commission declared the Airport Economic Development Area by
Resolution No. 919, adopted February 23, 1990, and in the same resolution declared the Airport
Economic Development Allocation Area, Allocation Area No. l; and
WHEREAS, the property currently known as Lot 2 located in the Portage Prairie
Development Area is located within the Airport Economic Development Allocation Area, Allocation
Area No. 1.
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission
as follows:
1) The Commission finds that the application from Waggoner Farm Development,
L.P./Ontario Partners, L.P. for up to nine (9) years of real property tax abatement consideration for
property currently known as Lot 2 located in the Portage Prairie Development Area which in turn is
located in the Airport Economic Development Allocation Area, Allocation Area No. 1, should be
and is hereby approved.
2) That a copy of this resolution be forwarded to the South Bend Common Council to
indicate the Commission's approval of the petition for real property tax abatement for Waggoner
Farm Development, L.P./Ontario Partners, L.P.
Approved this 5`" day of June, 2009, at the regular meeting of the South Bend Redevelopment
Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Description: APART OF THE NORTHWEST QUARTER OF SECTION 17 AND THE
NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 38 NORTH, RANGE 2 EAST,
GERMAN TOWNSHIP, CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA, MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF THE NORTHWEST QUARTER OF
SECTION 17, SAID CORNER BEING MARKED BY A HARRISON TYPE MONUMENT;
THENCE SOUTH 00 DEGREES 12 MINUTES 46 SECONDS EAST, A DISTANCE OF
910.31 FEET TO THE POINT OF BEGINNING; THENCE NORTH 89 DEGREES 44
MINUTES 25 SECONDS EAST, A DISTANCED OF 385.46 FEET TO THE WEST RIGHT-
OF-WAY LINE OF DYLAN DRIVE AS RECORDED UNDER INSTRUMENT NUMBER
0647966 IN THE OFFICE OF RECORDER OF SAID COUNTY; THENCE SOUTH 00
DEGREES 15 MINUTES 35 SECONDS EAST ALONG SAID WEST RIGHT-OF-WAY
LINE, A DISTANCE OF 919.19 FEET TO THE NORTH LINE OF PORTAGE PRAIRIE
MINOR #2 AS RECORDED UNDER INSTRUMENT 0814357 NUMBER; THENCE NORTH
89 DEGREES 44 MINUTES 25 SECONDS EAST ALONG SAID NORTH LINE, A
DISTANCE OF 386.22 FEET TO THE EAST LINE OF THE NORTHEAST QUARTER OF
SAID SECTION 18; THENCE NORTH 89 DEGREES 44 MINUTES 25 SECONDS EAST
ALONG SAID NORTH LINE OF PORTAGE PRAIRIE MINOR #2, A DISTANCE OF 166.28
FEET; THENCE NORTH 00 DEGREES 15 MINUTES 35 SECONDS EAST AND PARALLEL
TO SAID WEST RIGHT-OF-WAY LINE OF DYLAN DRIVE, A DISTANCE OF 919.19
FEET; THENCE NORTH 89 DEGREES 44 MINUTES 25 SECONDS EAST, A DISTANCE
OF 167.04 FEET TO THE POINT OF BEGINNING; SAID DESCRIBED PARCEL
CONTAINING 11.659 ACRES, MORE OR LESS.
SUBJECT TO EASEMENTS, RIGHT-OF-WAY, COVENANTS AND RESTRICTIONS OF
RECORD.
Tax Kev No.: Not available.
Address: Not available. Cun-ently known as Lot 2 in the Portage Prairie Development Area.
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1S3O
PHONE 574/ 235-9371
FAx 574/235-9021
"1-DD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKr:, MAYOR
COMMUNITY HL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA /ti. ~~"'~
SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR:
Waggoner Farm Development, L.P./Ontario Partners, L.P.
DATE: June 1, 2009
On May 11, 2009, a petition for real property tax abatement consideration for property located in the
Portage Prairie Development Area was tiled with the City Clerk by Holladay Properties in the name
of Waggoner Farm Development, LP. Waggoner Farm Development intends to transfer the property
to Ontario Partners, LP. Pursuant to Chapter 2, Article 6, Section 2-82 of the Municipal Code of the
City of South Bend, this petition was referred to the Department of Community and Economic
Development for purposes of investigation and preparation of a report determining whether the area
qualifies as an Economic Revitalization Area pursuant to LC.6-1.1-12.1 and whether all zoning
requirements have been met.
The Department of Community and Economic Development has reviewed the petition (a copy of
which is attached), investigated the area, and makes the following report.
PROJECT SUMMARY
Ontario Partners intends to construct a $5,000,000 development known as the "Ontario Building" in
the Portage Prairie Development Area. It is a speculative, 157,500 square-foot, light-industrial
building that will house multiple tenants performing a variety of business functions, such as a
medical supply company, data storage facility, food/general distribution facilities, printing
companies, or light assembly. The building will be constructed using pre-cast concrete panels. "The
building will utilize green building techniques such as florescent lighting in the warehouse. The
building will be the second one in the Portage Prairie Development Area, which is expected to
produce a total of over $~50 million in private investment. The first speculative building was the
"~Iuron Building" which currently has 60 people working in it on a daily basis.
COMMUNITY DEVELOPMENT ECONOMIC DLNELOPMENT FINANCIAL HC PROGRAM
PA~AELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9600 574/235-9371 EI,IZALIETH LEONARD
PAX: 574/235-9697 574/235-9371
South Bend Redevelopment Commission
RE: Tax Abatement for Ontario Partners
June 1, 2009
Page 2
Because of the speculative nature of the proposed project, the petitioners are facing short deadlines.
At this time they are still collecting information to support the tax abatement petition. The
information provided to date can only support a base abatement of three years. The petitioners are
requesting anine-year abatement in accordance with Section 5.7 (Tax Abatement) contained in the
Project Agreement signed by the Commission and the petitioners on July 21, 2006. In the interest of
conserving time, the petition is being submitted to the Commission for its consideration at this time.
The petitioners intend to submit additional information prior to the Common Council meeting to
consider their confirming resolution. At that time final points will be awarded and the length of the
abatement term set. For purposes of the Redevelopment Commission we are estimating the term at
nine years to allow for adjustment up to the full amount they have requested. Anything less will
result in a reduction in the amount of tax revenue abated.
Assuming anine-year abatement term is approved, the total taxes to be abated during that term are
estimated to be $635,240. Total taxes to be paid during the nine-year term are estimated at
$723,671. For comparison purposes, if the term became three years, total taxes to be abated are
estimated at $268,416. Total taxes to be paid over athree-year term are estimated at $184,554.
EMPLOYMENT IMPACT
Per the petition, there are no estimates regarding creation of new or existing, permanent, full orpart-
time jobs regarding the building due to the speculative nature of the project.
ABATEMENT QUALIFICATION
Neither Waggoner Farm nor Ontario Partners has received a previous tax abatement. The Huron
Building received anine-year real property tax abatement on August 14, 2006 (Resolution No.
3622-06). Holladay Properties, developer for the Ontario and Huron Buildings, has received
previous tax abatements through various limited partnerships and limited liability corporations.
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 will be
located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area;
therefore, the petition for real property tax abatement must first be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner can meet the
qualifications for up to a nine-year real property tax abatement under Section 2-82, Industrial
Development City-Wide.
1-Jun-09
ONTARIO PARTNERS, L.P.
Public Benefit Points Sum mary
Qualify Earned Available
Public Benefit Item: Y or N Points Points
Proiect Related:
1. A. Redevelop a Site that has Special Needs N 0 49
B. Develop Based on Local University Research N 0 35
C. Achieve a Physical Element of a Plan Y 36 36
Sub-total Project Related: 36 120
2. Super Size Proiects (point values are cumulativel:
A. 100% to 199% Y 25 25
B. 200% to 299% Y 68 68
C. 300% to 399% Y 65 65
D. 400°/ and Over Y 52 52
Sub-total Super Size Projects: 210 210
3. Construction Related:
A. Employ Local Companies N 0 20
B. Purchase Materials from Local Companies N 0 20
C. Require Employees vs. Independent Contracts N 0 19
D. Require Target Wage Levels N 0 22
E. Require Health Benefits N 0 22
F. Require Pension Benefts N 0 18
G. Maintain Affirmative Action Plan N 0 20
Sub-total Construction Related: 0 141
4. Wage 8 Benefit Related:
A. Pay Target Wage Levels N 0 33
B. Provide Health Benefits N 0 34
C. Provide Pension Benefits N 0 29
D. Provide Training N 0 28
E. Provide Child Care N 0 15
F. Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage 8 Benefit Related: 0 162
5. Workforce Related:
A. Create New Jobs N 0 42
B. Retain Existing Jobs N 0 41
C. Maintain Affirmative Action Plan N 0 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 0 152
6. Pay for Municipal Infrastructure: (not cumulative, choose only one)
A. Pay for Oversizing or Upgrading Y 14 14
B. Pay for 26-50% of Extension Cost N 0 26
C. Pay for 51-75% of Extension Cost N 0 39
D. Pay for 76-100% of Extension Cost N 0 52
Sub-total Infrastructure Related: 14 52
7. Support a Municipal Facility:
A. Support a Municipal Facility N 0 84
Total Public Benefit Points: 260 921
Qualification for each Public Benefit Item based on best available information at time of application or
good faith determination if no information available.
ONTARIO PARTNERS, L.P.
Additional Years of Abatement
Mulitfamily Development Projects:
From To Additional Years
0 141 0
142 183 1
184 225 2
226 267 3
268 309 4
310 351 5
352 393 6
394 & over 7
Other Development Projects:
From To Additional Years
0 300 0
301 357 1
358 414 2
415 471 3
472 528 4
529 585 5
586 642 6
643 921 7
Subtotal from Points Summary: 260
Base Years of Abatement
Additional Years of Abatement:
Total Years of Abatement:
°J OOO O u; u~
000 0 ~n on
~~ O O N O ~ N n
} (D o ~ ~ m ~ ('l
N Q
Q n Q
0 0 0 0 rn O
N 0 0 0 0 N m
N 0 0 0 0
} (D N t7 N N Q
N rn
Q M
M Q
n o 0 0 o M o
M o 0 0 0 ~ f
M~ O O N N
} lD O O N ~ N
N Q
Q r W
N V
~cDOOO
° O o no
a o00 o cn .n
Q~ o 0 0 0
rn
} cooo
N W ~ c
y o
Q r M
N Q r
o~ 0 0 0 0 0 ~ O
vii ~ o 0 0 0 N Q
} c0~
A ~ N ~
c
n
M rn Q
V N ~
a Q 0 0 0 0 ~ O
t p 0 0 0 0 N N
c0 ~ 0 0 0 0
O
} c0 O N
N O
N W E
~
Q
N
Q N
O
Q N
_N
a °'
~
o
..I a
4 N ~
~ ooo
o00 o
0 ~
~n rn c
o
~ t t
V n~ 0 0 N N ~
O
~ N
C~ } (O O N (7 N
Q
~ ~ N N rn Q
~ ~ C
O Q in
L ~
~
-- ~
Q {
{
L -O
NQ o
~N
OOO
O 0
~
~
roc
. ~ x m ~ ooo o o
i.~ ~ ~ } O ~ ~ ~ ~ N
0 a> >, N n cn Q
•y m C ° "
w t ~
~ o
°
`
~ a
~'
O a o o ~
~ o 0 0 o ~ n c
~ °O
z °
'0 °
0° ° `° N
~
O
o
oo
0
}
0
0
o
0
co _
cO
c
O c
o o
N O N
O
vi N N
c a Q
~ 0 0 0 0
O N O O 0
O ~
O
N ~+
L
E O O O N (~
>
>
>~
~ O N
N N
N N
C CO N
a
v
e
C E O
N O ~
~ n s
10 ~
~ O
O O
O N
j ~
U ~ o ~
N
Q Q
~ ...
N O
~ U
d d
O
~ o
~ ~ a
Z`Q a o ~
d
N C 10
Y d E
N
N
o m
~ ~
n cn
0
N
O
N
O
n
O
r
r
0
N
0 0
m
O M
n N
N
Z~ dl N O~ ~ ~ N~ ~ Q
N N N N N N N N
N Q ~D e] O~ Q Q
F N M CO N O O Q OJ O
~ ~ m co ~ m m o~ w cn
Q O N O 4) OJ O O CO N
~ ~ O of tD Q N
d a y 0 0 0 0 0 0 0 0 0 .-
rn rn rn rn rn rn rn rn rn
Z m rn rn rn rn rn rn rn rn rn m
Ems- ~o~oooooN ~
O W ~ ~ ~ ~ ~ ~ ~ ~ ~ t+>
U .=
w
m
N
~ ~ ~ n nnn n nn cn m
z_ nr~nnnnnnn m >
p ~p nn nn nn rn
ar 000000000 co ,%,
r'~~~~~~~~ cn m
m ~
to
d
L C
F d
N ~
O t7 r
O~ O
~ O ~ ~ r ~ ~ ~ ~ O U
C
c0 C7
N -
N t0
_ r
N N N N N N N N N 01 A
N
% Y
r
W
~ L
C .-
N ~
N t
C ~
O CO
~ .-NnQ.n conmrn E ~
} N ~
O n
O O
O N
M O
~ ~ .N
N U w m
~
d
o-'
- m
~
:: d
~
`0 o
n
m
~ a
~~ ~ m y
c U m U
m
~ ~ N U
~ N
~
S °~ H
c y
an d N d
ry
U
m m
N H
~
a C
~
m r m
N~
E
~~ N ~
O` ~ A
% C N m c'> D u
N O N
Q' Qa nZ a ~ F E_ Z mUOU
Q c Q Q E ~ U ..
W w o N u
}
O~ j~
U to ~ w
Q
U' ~
U
~ D
N
m ~ n
C
O m a
H
C N
o ~
~3
U
O N
Q N
~ L
a
c ~
o ~
m ~
E
w ~
m
o ~
N ~
~~
~ ~
D ~
U
N ~
F 3
O
C
r
o M 0 0 0 0 o M O M
M O O O O Ln ~ 1~
M ~ O O t17 tf7
} Cp O N M ~
N N N
t!7 O ~ N N
N ~ CO V ~- r
~' ~ N
0 o N O O O O o t0 O
O CO O O O O ~ N
O (O 0 0 0 0 ~ r-
O } Cp O ~ ~ ~ N
N
O
~ ~ O
N ~ LO
V O
V
V N ~
z 00 0 `- 00
0 0 0 0 0
* 0 0 0~ o 0
~ (O O
O } Cp O
In
~ O N
a
J .~
.~ ~
L O~
~ ~ ~ c
O N o 0
O O
~ ~ ~ ~ O O
~
~ ~ ~
~ CO O
~
L N
~ ~
Q Q t1
rn
O
~L ~
m'~
c ~
o
= O ~ U ~ ~°
O (n ~ Q
N
N
7 N
U
~ U
~ ~ O
U O
0
C ~ d ~ o
Z' Q 'O O ~
_N
Y N ~
E
~ ~ ~
~ U w
W
M
o ti o
~ ~
~ N
O
N
0
0 0 ~ ~ o
O ~ N MIO
O N N O
CO O N ~ O
~ N O M ~
N V ~-' ~-
O O O
CO CO M
t~ ~ M
N ~ ~
~ r
O f~ I~
N V N
O O O
~ ~ ~
N M
~~
O
r
N
O O
GO M
r M
~ N
V
O o i~ ~ ~ M
O ~ In V ~
O ~ N `-' N
O N
~ M
0 0
O 1~
O ~
M o
N
a~
7
m
a~
m
m
m
~
c ~
° °-
o ~ .~
~
°
~ ~
- ca
~ ~ >
~ ~
c`o ~
= ~ c
o
U
> >~ O O
N
(6 X
(6 ~ X O
~ Q. Y N O
f6 U Y
~ ~ Y
f4 (0 ~
U
N
~
`~ ~~ C~
~ a~ m ~
~ m
~. `~ x
x ~ m
m m
m
`m w (~ --
O
O O~~ Q O C ~
~
.....-~ Y C 7
f9 U ~ U
Q Q N ~6Z d o ~ ~Z ~U~CU
m
L
cQQ N
~ F
U .r
~ cn cn ~
O cn
Um~ Q C~~ U
X 'p
~
z ~ N N
~
N N
(O N
~ M c0 0~
~ ~ O ~
Q O 00 ~
LC) 00 N
~ 3 ~
°
°
°
~
z
X rn
rn
rn
~
c
O rnrnrn
otj~ OOO
~
O O) ~ ~ ~
r r r
C
U ._
N
X
W
N
N N X ~ ~ ~
r ~ ~
z O (6 I~ ~ ti
~` H" O O O
~ r ~
~ X ~ ~ M
~ (B N N N
X f'
W
~ ~ N M
a~
}
N
O
H
y
N
~a
X ~
~6 ~
N ~
X
L C
F- N
~ C
O U
(4 C
N
X w
~ ~
.-.~ .C
C +•
~ a
U C
C (~
O O
U O
O
~ 3
E m
~ >
~ ~
~ ~
-p N
C U
~ N
T ~
~ m
o m
a~i ~
y U
o ~
a~
~ w
a ~
c .n
o -a
~~ m
.~ ~~
N ~
~ ~
O -p
~ ~
•- ~
~ T
7 ~
~ ~
U •~
~ -
~ ~3