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HomeMy WebLinkAbout01-26-15 Agenda, Packet and Committee Meeting NoticeOffice of the City Clerk JOHN VOORDE, CITY CLERK January 22, 2015 TO: MEMBERS OF THE COMMON COUNCIL FROM: JOHN VOORDE, CITY CLERK The following Common Council Committee Meetings have been scheduled for Mnnday. January 26. 2015. in the Council Informal Meeting Room, 4th Floc 2:30 P.M. PERSONNEL & FINANCE KAREN L. WHITE, CHAIRPERSON 1. Organizational Meeting 2. Bill No. 14 -100 — Recognizing the 2nd Monday of October as Indigenous Peoples Day also to be Known as Native Americans Day 3:00 P.M. PARC COMMITTEE DR. FRED FERLIC, CHAIRPERSON 1. Organizational Meeting 3:20 P.M. HEALTH & PUBLIC SAFETY DEREK DIETER, CHAIRPERSON 1. Bill No. 59 -14 —Amend SBMC Code Addressing Vacant Building Maintenance Registration 3:25 P.M. COMMUNITY INVESTMENT GAVIN FERLIC. CHAIRPERSON & PARCS COMMITTEE DR FRED FERLIC, CHAIRPERSON 1. Bill No. 01 -15 — EDIT Bonds of 2015 for Park Upgrades 3:55 P.M. COMMUNITY INVESTMENT GAVIN FERLIC, CHAIRPERSON 1. Bill No. 15 -01 Des. Tax Abatement — 4315 S. Lafayette Blvd — Heraeus Kulzer, LLC 2. Bill No. 15 -02 Des. Tax Abatement — 5021 Nimtz Parkway — Foster Group LLC 3. Bill No. 15 -03 Des. Tax Abatement — 5021 Nimtz Parkway — MGE Wholesale Inc. 4. Bill No. 15 -04 Reconfirming Tax Abatement — LaSalle Apartments LLC 4:15 P.M. ZONING & ANNEXATION OLIVER J. DAVIS, CHAIRPERSON 1. Bill No. 58 -14 — Rezoning — 1430 Mishawaka Ave. 2. Bill No. 15 -05 — Establish Reasonable Accommodation Policies and Procedures in Zoning and Land use Decisions 455 County -City Building • 227W Jefferson Blvd • South Bend. Indiana 46601 • 574/235 -9221 • Fax 574235 -9173 KARFE.MAH FOWL.FR JANICE TAL.RLOOM EMILY SEXTON CHIEF DEPUTY DFPUTY ORDINANCE VIOLATION CLERK SEE SEPARATE MEETING NOTICE FOR THE BOARD OF FINANCE MEETING STARTING AT 4:45 P.M. 5:15 P.M. PUBLIC WORKS & PROPERTY VALERIE SCHEY, CHAIRPERSON VACATION 1. Bill No. 03 -15 — Street & Alley Vacation —Bounded by Kemble - Norfolk & Southern RR — Scott St. - & Indiana Ave. 2. Bill No. 66 -14 —Amend SBMC Code to Address Snow Removal Practices & Procedures 5:35 P.M. INFORMATION & TECHNOLOGY GAVIN FERLIC. CHAIRPERSON 1. Bill No. 15 -06 — Delay the Effective Date of Ordinance No. 10343 -14 Addressing Section 2 -9.1 of Article 1 of Chapter 2 of the SBMC Council President Tim Scott has called an Informal Meeting of the Council which will commence immediately after the adjournment of the Information & Technology Committee meeting. INFORMAL MEETING OF THE COMMON COUNCIL TIM SCOTT, COUNCIL PRESIDENT 1. Discussion of Council Agenda 2. Review of Council Procedures 3. Update and Announcements 4. Adjournment cc: Mayor Pete Buttigieg Committee Meeting List Media Auxiliary Aid or Other Services may be Available upon Request at Please give Reasonable Advance Request when Possibl Office of the City Clerk JOHN VOORDE, CITY CLERK BOARD OF FINANCE OF THE CITY OF SOUTH BEND, INDIANA MEETING NOTICE TO: MEMBERS OF THE SOUTH BEND COMMON COUNCIL FROM: JOHN VOORDE, CITY CLERK DATE: JANUARY 22. 2015 RE: BOARD OF FINANCE MEETING The annual meeting of the Board of Finance of the City of south Bend, Indiana will take place in the Council informal meeting room, 4'h Floor County -City Building, 227 W. Jefferson Blvd., South Bend, Indiana 46601, on Monday, January 26, 2015 at 4:45 P.M. The meeting is being called to do the following: 1. Election of Board of Finance Officers for President and Secretary 2. Receive and review the written report from the Investment Office (City Controller) Summarizing the City of South Bend's Investments during the previous calendar year. 3. Appoint City Investment Officers. 4. Review the City's overall investment policies; interest earning and other financial Policies posted on the City of South Bend's Website selected by the Controller; and an update from Bank Representatives. 5. Review miscellaneous financial information from the City Controller. This meeting is governed by I.C. 5- 13 -7 -1 et seq. cc: Mayor Pete Buttigieg John Murphy, City Controller Jennifer Hockenhull, Assistant City Controller Cristal Briscoe, Corporate Counsel News Media 455 County -City Building • 227 W. Jefferson Blvd • South Bend. Indiana 46601 • 5741235-9221 • Fax 574235 -9173 KAREEmAji FOWLER JANICE TAL.ELOOM EMILY SEXTON CHIEF DEPUTY DEPUTY ORDINANCE VIOLATION CLERK AGENDA SOUTH BEND COMMON COUNCIL MEETING MONDAY, JANUARY 26, 2015 1. INVOCATION 2. PLEDGE TO THE FLAG 3. ROLL CALL 4. REPORT FROM THE SUB - COMMITTEE ON MINUTES S. SPECIAL BUSINESS raaifr� 6. REPORTS OF CITY OFFICES - MAYOR PETE BUTTIGIEG 7. RESOLVE INTO THE COMMITTEE OF THE WHOLE TIME: RTT.T. A7(1 58 -14 PUBLIC HEARING ON A BILL TO AMEND THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 1430 MISHAWAKA AVE. COUNCILMANIC DISTRICT NO. 3 IN THE CITY OF SOUTH BEND, INDIANA 03 -15 PUBLIC HEARING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTIES: ALL PUBLIC ALLEYS AND STREETS BOUNDED BY KEMBLE STREET ON THE WEST, THE NORFOLK & SOUTHERN RAILROAD (OLD PENN CENTRAL RR) ON THE NORTH, SCOTT STREET ON THE EAST AND INDIANA AVENUE ON THE SOUTH ALL IN THE CITY OF SOUTH BEND, INDIANA 59 -14 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING SECTION 6 -37.1 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING VACANT BUILDING MAINTENANCE AND REGISTRATION 66 -14 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 20, ARTICLE 7, OF THE SOUTH BEND MUNICIPAL CODE TO ADDRESS SNOW REMOVAL PRACTICES AND PROCEDURES 01 -15 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE ISSUANCE OF BONDS BY THE CITY OF SOUTH BEND, INDIANA TITLED AS ECONOMIC DEVELOPMENT INCOME TAX BONDS OF 2015 AND OTHER MATTERS CONNECTED THEREWITH, INCLUDING THE PAYMENT CF INCIDENTAL EXPENSES ON ACCOUNT OF THE ISSUANCE OF THE BONDS AND REPEALING ORDINANCES INCONSISTENT HEREWITH 8. BILLS, THIRD READING RTT,T, Nn_ TIME: 58 -14 THIRD READING ON A BILL TO AMEND THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 1430 MISHAWAKA AVE. COUNCILMANIC DISTRICT NO. 3 IN THE CITY OF SOUTH BEND, INDIANA 03 -15 THIRD READING ON A BILL TO VACATE THE FOLLOWING DESCRIBED PROPERTIES: ALL PUBLIC ALLEYS AND STREETS BOUNDED BY KEMBLE STREET ON THE WEST, THE NORFOLK & SOUTHERN RAILROAD (OLD PENN CENTRAL RR) ON THE NORTH, SCOTT STREET ON THE EAST AND INDIANA AVENUE ON THE SOUTH ALL IN THE CITY OF SOUTH BEND, INDIANA 59 -14 THIRD READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING SECTION 6 -37.1 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING VACANT BUILDING MAINTENANCE AND REGISTRATION 66 -14 THIRD READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 20, ARTICLE 7, OF THE SOUTH BEND MUNICIPAL CODE TO ADDRESS SNOW REMOVAL PRACTICES AND PROCEDURES 01 -15 THIRD READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE ISSUANCE OF BONDS BY THE CITY OF SOUTH BEND, INDIANA TITLED AS ECONOMIC DEVELOPMENT INCOME TAX BONDS OF 2015 AND OTHER MATTERS CONNECTED THEREWITH, INCLUDING THE PAYMENT OF INCIDENTAL EXPENSES ON ACCOUNT OF THE ISSUANCE OF THE BONDS AND REPEALING ORDINANCES INCONSISTENT HEREWITH 9. RESOLUTIONS BILL NO. 15 -01 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 4315 S. LAFAYETTE BLVD., SOUTH BEND, IN 46614 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR HERAEUS KULZER LLC 15 -02 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 5021 NIMTZ PARKWAY, SOUTH BEND, IN 46628, AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO (2) YEAR REAL PROPERTY TAX ABATEMENT FOR THE FOSTER GROUP, LLC 15 -03 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 5021 NIMTZ PARKWAY, SOUTH BEND, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR MGE WHOLESALE INC. 15 -04 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 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR THE LASALLE APARTMENTS LLC 14 -100 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, RECOGNIZING THE 2ND MONDAY OF OCTOBER AS INDIGENOUS PEOPLES DAY ALSO TO BE KNOWN AS NATIVE AMERICANS DAY 15 -05 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND INDIANA, ESTABLISHING REASONABLE ACCOMMODATION POLICIES AND PROCEDURES IN ZONING AND LAND USE DECISIONS WITHIN THE CITY OF SOUTH BEND, INDIANA 15 -06 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND INDIANA, DELAYING THE EFFECTIVE DATE OF ORDINANCE NO. 10343 -14 ADDRESSING SECTION 2 -9.1 OF ARTICLE 1 OF CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING THE COMMON COUNCIL 10. BILLS, FIRST READING BILL NO. 04 -15 FIRST READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING VARIOUS SUB — SECTIONS OF CHAPTER 2, ARTICLE 1, SECTION 2- 9.1 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING POLICIES AND PROCEDURES GOVERNING CITY —OWNED TECHNOLOGIES, FACEBOOK STANDARDS, SOCIAL MEDIA AND SOCIAL NETWORKING POLICIES AND PROCEDURES 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. PRIVILEGE OF THE FLOOR 14. ADJOURNMENT TIME: NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services are Available upon Request at No Charge. Please give Reasonable Advance Request when Possible. ORDINANCE NO. AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 1430 MISHAWAKA AVE, COUNCILMANIC DISTRICT NO.3 IN THE CITY OF SOUTH BEND, INDIANA STATEMENT OF PURPOSE AND INTENT REZONE TO ALLOW FOR AUTO REPAIR NOW THEREFORE BE IT ORDAINED by the Common Council of the City of South Bend, Indiana as follows: SECTION 1. Ordinance No. 9495 -04, is amended, which ordinance is commonly known as the Zoning Ordinance of the City of South Bend, Indiana, be and the same hereby is amended in order that the zoning classification of the following described real estate in the City of South Bend, St. Joseph County, State of Indiana: THE NORTH 62.5' OF LOT 77 & WEST 8.7' OF LOT 76 OF EUCLID PARK ADDITION be and the same is hereby established as CB Community Business District SECTION II. This ordinance shall be in full force and effect from and after its passage by the Common Council, approval by the Mayor, and legal publication. Member of the Common C icil Attest: City Clerk Presented by me to the Mayor of the City of South Bend, Indiana on the 20_, at o'clock m. Approved and signed by me on the day of .m. PASSED City Clerk day of , 20 , at o'clock Mayor of the City of South Bend, Indiana Filed in Clerk 's Qffice =1d JOHN VOORDE CITY CLERK, SOUTH BEND, IN �_ PETITION TO REZONE City o LSouth Bendd, Indiana I (we) the undersigned make application to the City of South Bend Common Council to amend the zoning ordinance as herein requested. 1) The property sought to be rezoned is located at: 1430 Mishawaka 2) The property Tax Key Number(s) is/are: 18- 6024 -3703 3) Name and address of property owner(s) of the petition site: G Family Properties 51810 Deer Trail Granger, IN 46350 574 -108 -7369 Name and address of additional property owners, if applicable: 4) Name and address of contingent purchaser(s), if applicable: Name Address City, State Zip Code Phone number with Area Code E -Mail Address Name and address of additional property owners, if applicable: 5) It is desired and requested that this property be rezoned: From: LB Local Business District N/A To: CB Community Business District 6) This rezoning is requested to allow the following use(s): Auto Repair 7) Attached, and made a part of this PETITION, is: (a) a list of names and addresses of all property owners, and the tax key numbers for all properties within 300 feet of the petition property; (b) addressed, stamped envelopes for all property owners within 300 feet of the petition property. CONTACT PERSON: Santos Rios 421 S 300 E LaPorte, IN 46350 or signature of Attorney for all property owner(s): Filed in 0 ** ws i r, 7T- ?0 ?014 JOHN OO D�1 JJ CITY CLERK, SOUTH DEND, IN I M�111 LAWRENCE P. MAGLIOZZI EXECUTIVE DIRECTOR Angela M. Smith Depul, Dj—... REA PLAN COMMISSION OF ST. JOSEPH COUNTY, IN 327 W. JEFFERSON BLVD., ROOM 1140 COUNTY CITY BUILDING, SOUTH BEND, INDIANA 46601 (S74) 2359571 Wednesday, November 19, 2014 The Honorable Council of the City of South Bend 4th Floor, County-City Building South Bend, IN 46601 RE: A proposed ordinance of G Family Properties to zone from LB Local Business District to CB Community Business District, and seeking the following three variances: ])from the required 20' front setback for parking to 0; 2) from the required 7 parking spaces to 2; and 3) from the required Type B: partial screening on the south property line to a 6' privacy fence, property located at 1430 Mishawaka Avenue, City of South Bend - APC# 2726 -14. Dear Council Members: I hereby Certify that the above referenced ordinance of G Family Properties was legally advertised on Thursday, November 06, 2014 and that the Area Plan Commission at its public hearing on Tuesday, November 18, 2014 took the following action: Upon a motion by John McNamara, being seconded by Robert Hawley and unanimously carried, the proposed ordinance of G Family Properties to zone from LB Local Business District to CB Community Business District, property located at 1430 Mishawaka Avenue, City of South Bend, is sent to the Common Council with a FAVORABLE recommendation. The site has been commercial for many years and is part of the larger Mishawaka Avenue commercial strip. The rezoning will allow an adaptive reuse of the site consistent with the other commercial uses in the area. The deliberations of the Area Plan Commission and points considered in arriving at the above decision are shown in the minutes of the public hearing, and will be forwarded to you at a later date to be made a part of this report. Sincerely, E Lawrence P. Magliozzi Attachment CC: G Family Properties Santos Rios SERVING ST. JOSEPH COUNTY. SOUTH BEND, LAKEVILLE, NEW CARLISLE, NORTH LIBERTY, OSCEOLA 8 ROSELAND WW`s`/- STJOSEVHCOVNTYIN DIPNA.C.MlP0.EAVLAry Staff Report APC # Owner: Location: Jurisdiction: Public Hearing Date Requested Action: 2726 -14 G Family Properties 1430 Mishawaka Avenue City of South Bend 11/18/2014 The petitioner is requesting a zone change from LB Local Business District to CB Community Business District and three variances. Land Uses and Zoning: 11/6/2014 On site: On site is an existing commercial structure. North: To the north across Mishawaka Avenue are single family homes zoned SF2 Single Family & Two Family District and a gas station zoned CB Community Business. East: To the east is a commercial building zoned MU Mixed Use District. South: To the south is a single family home zoned SF2 Single Family & Two Family District. West: To the west across Clover Street is a commercial building zoned LB Local Business District. District Uses and Development Standards: The CB - Community Business District is established to provide a location for high volume and high intensity commercial uses. Activities in this district are often large space users which may include limited amounts of outdoor sales or outdoor operations. Developments within the CB District shall be coordinated to facilitate vehicular and pedestrian access from nearby residential districts. Site Plan Description: The site is approximately a 4,000 square foot lot with an existing 1,300 square foot building. The existing building has 2 service bays that front Mishawaka Avenue. The remainder of the lot is paved. Due to the size of the lot and room for drive aisles, the petitioner is seeking a variance from the required 7 parking spaces to 2 spaces. The parking shown on the aerial photograph that extends in to the public right -of -way is not permitted without special approval by the Board of Public Works. There is an existing 6' privacy fence separating this property from the single family home to the south. The petitioner would like to maintain this fence in place of the required Type B: Partial Screening required. Zoning and Land Use History And Trends: Mishawaka Avenue has historically been a mix of commercial and residential uses. The site was previously a gas station and has operated with auto oriented uses even after the removal of the gas pumps. APC # 2726 -14 Page 1 of Staff Report 11/6/2014 2) from the required 7 parking spaces to 2; and 3) from the required Type B: partial screening on the south property line to a 6' privacy fence. State statutes and the South Bend Zoning Ordinance require that certain standards must be met before a variance or Special Exception Use can be approved. These standards are attached and made part of the staff report. Recommendation: Based on information available prior to the public hearing, the staff recommends that the rezoning petition be sent to the Common Council with a favorable recommendation. The staff recommends approval of the variances. Analysis: The site has been commercial for many years and is part of the larger Mishawaka Avenue commercial strip. The rezoning will allow an adaptive reuse of the site consistent with the other commercial uses in the area. APC # 2726 -14 Page 3 of 3 i V D U Mishawaka sFf} I I s = -1 Rezoning from: "LB" LOCAL BUSINESS DISTRICT to "CB" COMMUNITY BUSINESS DISTRICT MASTER ZONING KEY SOUTH BEND SF2 SINGLE F.AUILYANDT.VO FAIYIILY DISTRICT SOUTH BEND 'M U" NUXED USE DISTRICT SF--I N W ^ E s I inch = 50 feet SOUTH BEND 'LB - LOC- .LBUSINESS DISTRI CT SOUTH BEND CB CONH:IUNITY BUSINESS DISTRICT APC # 2726-14 4 vFi "anch, "arner 40V Associates, Inc. Land Surveyors W Professional Engineers Landscape Architects Land Planners Office: (574)234-4003 /(800)594 -4003 Fax: (574)234-4009 1643 Commerce Drive a South Bend, IN 46628 Honorable Members of the City of South Bend Common Council 4th Floor County-City Building South Bend, Indiana 46601 January 13, 2015 RE: Bill No. 03 -15, Vacation Petition for several Alleys & Streets bounded by Kemble Street on the West, the Norfolk & Southern Railroad (Old Penn Central RR) on the North, Scott Street on the East and Indiana Avenue on the South all in the City of South Bend, Indiana: Dear Council Members: On behalf of our clients, City of South Bend Department of Community Investment, we are requesting that Bill No. 03 -15 be tabled until the March 9, 2015 meeting of the Council. We are requesting this tabling to allow the above Bill to be heard at the same time as the Rezoning Petition for this same area. If you have any questions concerning this matter, please feel free to give me a call at 234- 4003. Sincerely, Michael J. Danch President Danch, Hamer & Associates File #140249.2 Filed in Clerk's 0 ice [,,AN 3 MD CITY CLERK, SOUTH SEND, IN 6t-n 03- D3 - -( r ORDINANCE NO. AN ORDINANCE TO VACATE THE FOLLOWING DESCRIBED PROPERTIES: All Public Alleys & Streets bounded by Kemble Street on the West, the Norfolk & Southern Railroad (Old Penn Central RR) on the North, Scott Street on the East and Indiana Avenue on the South all in the City of South Bend, Indiana, STATEMENT OF PURPOSE AND INTENT Pursuant to Indiana Code Section 36- 7 -3 -12, the Common Council is charged with the authority to hear all petitions to vacate public ways or public places within the City. The following Ordinance vacates the above described public property. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: SECTION I. The Common Council of the City of South Bend having held a Public Hearing on the petition to vacate the following properties: 1). The first North -South Public Alley East of Kemble Street running for a distance of 411 feet more or less from Indiana Avenue on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width that vanes from 7 feet to 14 feet. 2). The first East -West Public Alley North of Indiana Avenue running for a distance of 158 feet more or less from Catalpa Street on the East to the first North -South Public Alley on the West and having a width of 12 feet. 3). Catalpa Street running for a distance of 411 feet more or less from Indiana Avenue on the South Norfolk & Southern Railroad (Old Penn Central RR) on the North having a width of 45.45 feet. 4). The first North -South Public Alley East of Catalpa Street running for a distance of 279.3 feet more or less from an East -West Public Alley on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width of 14 feet. 5). The first East -West Public Alley North of Indiana Avenue running for a distance of 261.32 feet more or less from Catalpa Street on the West to Chapin Street on the East and having a width of 12 feet. 6). Chapin Street running for a distance of 411.4 feet more or less from Indiana Avenue on the South Norfolk & Southern Railroad (Old Penn Central RR) on the North having a width of 50 feet. 2 7). The first North -South Public Alley East of Chapin Street running for a distance of 411.5 feet more or less from Indiana Avenue on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width of 14 feet. 8). The first East -West Public Alley North of Indiana Avenue running for a distance of 261.32 feet more or less from Chapin Street on the West to Kendall Street on the East and having a width of 12 feet. 9). Kendall Street running for a distance of 411.6 feet more or less from Indiana Avenue on the South Norfolk & Southern Railroad (Old Penn Central RR) on the North having a width of 50 feet. 10). The first North -South Public Alley East of Kendall Street running for a distance of 398.6 feet more or less from Indiana Avenue on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width of 14 feet. 11). The first East -West Public Alley North of Indiana Avenue running for a distance of 261.32 feet more or less from Kendall Street on the West to Scott Street on the East and having a width of 12 feet. hereby determines that it is desirable to vacate said properties. SECTION II. The City of South Bend hereby reserves the rights and easements of all utilities and the Municipal City of South Bend, Indiana, to construct and maintain any facilities, including, but not limited to, the following: electric, telephone, gas, water, sewer, surface water control structures and ditches, within the vacated right -of -way, unless such rights are released by the individual utilities. SECTION III. The following property Tax Key Numbers may be injuriously or beneficially affected by such vacating: 18- 8024 -0972 18- 8024 -0971 18- 8024 -0970 18- 8024 -0969 18- 8024 -0968 18- 8024 -0967 18- 8024 -0966 18- 8024 -0965 18- 8024 -0964 18- 8024 -0973 18- 8024 -0974 18- 8024 -0984 18- 8024 -0985 18- 8024 -0986 18- 8024 -0987 18- 8024 -0988 18- 8024 -0989 18- 8024 -0990 18- 8024 -0991 18- 8024 -0992 18- 8024 -0993 18- 8025 -1022 18- 8025 -1023 18- 8025 -1024 18- 8025 -1000 18- 8015 -0999 18- 8025 -0998 18- 8025 -0997 18- 8025 -0996 18 -8025 -0995 18- 8025 -0994 18 -8025 -1001 18- 8025 -1002 18- 8025 -1003 18- 8025 -1004 18- 8025 -1005 18- 8015 -1006 18- 8025 -1007 18- 8025 -1025 18- 8025 -1026 18- 8025 -1027 18- 8025 -1028 18- 8025 -1029 18- 8025 -1030 18- 8025 -1014 18- 8025 -1013 18- 8025 -1012 18- 8025 -1011 18- 8025 -1010 18- 8025 -1009 18- 8015 -1008 18- 8025 -1015 18- 8025 -1016 18- 8025 -1017 18- 8025 -1021 18- 8026 -1048 18- 8026 -1042 18- 8026 -1034 18- 8026 -1041 18- 8026 -1051 18- 8025 -1018 18- 8025 -1031 18- 8026 -1050 18- 8026 -1040 18- 8026 -1035 18- 8026 -1043 18- 8026 -1052 18- 8025 -1019 18- 8015 -1032 18- 8026 -1046 18- 8026 -1038 18- 8026 -1037 18- 8026 -1045 18- 8026 -1053 18- 8025 -1020 18- 8025 -1033 18- 8026 -1044 18- 8026 -1036 18- 8026 -1039 18- 8026 -1047 SECTION IV. The purpose of the vacation of the real properties is to vacate that portion of all the Public Alleys and Streets in the described area to allow for the creation of a subdivision plat for future development. SECTION V. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Attest: City Clerk CC�,, af� ( kl--- Member of the Common Cofincil raid Council8 ca C. ;� s.., Presented by me to the Mayor of the City of South Bend, Indiana on the day of , 2015, at o'clock . m. Approved and signed by me on the o'clock . M. 1;. READING j -IZ - \Y, PU5LIC HE.A,I'ING 3 rd RE.AUNG NOT APPROVED REFERRED PASSED City Clerk day of , 2015, at Mayor, City of South Bend, Indiana Office Air CITY ""'Odel Uanch, "arner &Tz associates, lnc. Land Surveyors Professional Engineers Landscape Architects Land Planners Office: (574)234 -4003 / (800)594 -4003 Fax: (574)234 -4009 1643 Commerce Drive . South Bend, IN 46628 Honorable Members of the City of South Bend Common Council 4a' Floor County-City Building South Bend, Indiana 46601 December 24, 2014 RE: Vacation Petition for several Alleys & Streets bounded by Kemble Street on the West, the Norfolk & Southern Railroad (Old Penn Central RR) on the North, Scott Street on the East and Indiana Avenue on the South all in the City of South Bend, Indiana: Dear Council Members: On behalf of our clients, City of South Bend Department of Community Investment, we are requesting the approval of the Vacation for all the Public Alleys & Streets bounded by Kemble Street on the West, the Norfolk & Southern Railroad (Old Penn Central RR) on the North, Scott Street on the East and Indiana Avenue on the South all in the City of South Bend, Indiana. The reason for this request is to allow for the next phase of development to be known as Ignition Park South. Once the Alleys and Streets are vacated, it will allow the City to move ahead with creating a new subdivision for Ignition Park South. We would request that this Vacation Petition be heard at the same time as the Rezoning Petition for this area. If you have any questions concerning this matter, please feel free to give me a call at 234- 4003. Sin rely, Michael J. Danch President Danch, Hamer & Associates File #140249.2 !.MiJ -'7 CITY PETITION TO VACATE PUBLIC RIGHTS -OF -WAY (STREETS /ALLEYS) To the Common Council Date: 1 -7 -15 of the City of South Bend, Indiana We, the undersigned property owner(s), petition you to vacate: 1). The first North -South Public Alley East of Kemble Street running for a distance of 411 feet more or less from Indiana Avenue on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width that varies from 7 feet to 14 feet. 2). The first East -West Public Alley North of Indiana Avenue running for a distance of 158 feet more or less from Catalpa Street on the East to the first North -South Public Alley on the West and having a width of 12 feet. 3). Catalpa Street running for a distance of 411 feet more or less from Indiana Avenue on the South Norfolk & Southern Railroad (Old Penn Central RR) on the North having a width of 45.45 feet. 4). The first North -South Public Alley East of Catalpa Street running for a distance of 279.3 feet more or less from an East -West Public Alley on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width of 14 feet. 5). The first East -West Public Alley North of Indiana Avenue running for a distance of 261.32 feet more or less from Catalpa Street on the West to Chapin Street on the East and having a width of 12 feet. 6). Chapin Street running for a distance of 411.4 feet more or less from Indiana Avenue on the South Norfolk & Southern Railroad (Old Penn Central RR) on the North having a width of 50 feet. 7). The first North -South Public Alley East of Chapin Street running for a distance of 411.5 feet more or less from Indiana Avenue on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width of 14 feet. 8). The first East -West Public Alley North of Indiana Avenue running for a distance of 261.32 feet more or less from Chapin Street on the West to Kendall Street on the East and having a width of 12 feet. 9). Kendall Street running for a distance of 411.6 feet more or less from Indiana Avenue on the South Norfolk & Southern Railroad (Old Penn Central RR) on the North having a width of 50 feet. 10). The first North -South Public Alley East of Kendall Street running for a distance of 398.6 feet more or less from Indiana Avenue on the South to the Norfolk & Southern Railroad (Old Penn Central RR) on the North and having a width of 14 feet. 11). The first East -West Public Alley North of Indiana Avenue running for a distance of 261.32 feet more or less from Kendall Street on the West to Scott Street on the East and having a width of 12 feet. Tax Key Numbers owned by the Petitioner: 18- 8053 -2123 18- 8053 -2124 18- 8053 -2125 18- 8053 -2126 18- 8053 -2135 18- 8053 -2136 18- 8053 -2137 18- 8053 -2127 18- 8053 -2129 18- 8053 -2130 18- 8053 -2131 18- 8024 -0972 18- 8024 -0971 18- 8014 -0970 18- 8024 -0969 18- 8024 -0968 18- 8024 -0967 18- 8024 -0966 18- 8024 -0965 18- 8024 -0964 18- 8024 -0973 18- 8024 -0974 18- 8024 -0984 18- 8024 -0985 18- 8024 -0986 18- 8024 -0987 18- 8024 -0988 18- 8014 -0989 18- 8024 -0990 18- 8024 -0991 18- 8024 -0992 18 -8024 -0993 18- 8025 -1022 18- 8025 -1023 18- 8025 -1024 18- 8025 -1000 18 -8025 -0999 18- 8025 -0998 18- 8025 -0997 18- 8025 -0996 18- 8025 -0995 18- 8025 -0994 18- 8025 -1001 18- 8025 -1002 18- 8025 -1003 18- 8025 -1004 18- 8025 -1005 18- 8025 -1006 18- 8025 -1007 18- 8025 -1025 18- 8025 -1026 18- 8015 -1027 18- 8025 -1028 18- 8025 -1029 18 -8025 -1030 18- 8025 -1014 18- 8025 -1013 1 &8025 -1012 18 -8025 -1011 18- 8025 -1010 18- 8025 -1009 18- 8025 -1008 18 -8025 -1015 18- 8015 -1016 18- 8025 -1017 18- 8025 -1018 18- 8025 -1019 18- 8025 -1020 18- 8025 -1021 18- 8025 -1031 18- 8025 -1031 18- 8015 -1033 18- 8026 -1048 18- 8026 -1050 18- 8026 -1046 18- 8026 -1044 18- 8026 -1041 18- 8026 -1040 18- 8026 -1038 18- 8026 -1036 18- 8026 -1034 18- 8026 -1035 18- 8026 -1037 18- 8026 -1039 18- 8026 -1041 18- 8026 -1043 18- 8026 -1045 18- 8026 -1047 18 -8026 -1051 18- 8026 -1052 18- 8026 -1053 18- 8026 -1065 18 -8026- 106502 18- 8026 - 106501 18- 8026 -1066 18- 8026 -1067 18 -8026 -1063 18- 8026 -1062 18- 8026 -1059 18- 8026 -1058 18- 8026 -1055 18- 8026 -1054 18- 8026 -1056 18- 8026 -1057 18 -8026 -1060 18- 8026 -1061 18- 8026 -1064 18- 8027 -1092 18 -8027 -1090 18- 8027 -1093 18- 8027 - 109301 18- 8027 -1095 18- 8027 -1087 18- 8027 -1086 18- 8027 -1084 18 -8027 -1083 18- 8027 -1082 18- 8026 -1071 18- 8026 -1071 18- 8026 -1070 NAME (signed & printed) & ADDRESS City of South Bend - Department of Community Investment 14a' Floor County-City Building South Bend, Indiana 46601 J_ �O7 _ �iAk� lavid Relos: City of South Bend Department of Community Investment Office of the City Clerk John Voorde, City Clerk Room 455- County-City Building South Bend, IN 46601 574- 235 -9221 CONTACT PERSON NAME: Michael J. Danch Danch, Harper and Associates, Inc. 1643 Commerce Drive South Bend, Indiana 46628 PHONE: 574- 234 -4003 e -mail: mdanchna,danchamer com Fha&c; fol d* IN Property Owners Within 150 Feet City of South Bend City of South Bend City of South Bend 1200 County City Bldg 1200 County City Bldg 1200 County City Bldg South Bend, IN. 46601 South Bend, IN. 46601 South Bend, IN. 46601 Tax Key # 018 8021084912 Tax Key # 018 8021 084913 Tax Key # 018 8021 084901 City of South Bend City of South Bend South Bend Redevelopment 1200 County City Bldg 1200 County City Bldg 227 W Jefferson #1200 South Bend, IN. 46601 South Bend, IN. 46601 South Bend, IN. 46601 Tax Key # 018 8021 084905 Tax Key # 018 8021084916 Tax Key # 018 8021084902 Data Realty Northern Indiana South Bend Supply Co Martins Supermarkets 1400 E Angela PO Box 2778 PO Box 2709 South Bend, IN. 46617 Newport News, VA. 23609 South Bend, IN. 46680 Tax Key # 018 8021084914 Tax Key # 018 8024 0944 Tax Key # 018 8023 0913 NIY Jersey IND and ILL RR South Bend Redevelopment City of South Bend 110 Franklin Rd 227 W Jefferson Blvd Ste 1400 227 W Jefferson Ste.1200 Roanoke,VA.24042 South Bend, IN. 46601 South Bend, IN. 46601 Tax Key # 018 8023 093001 Tax Key # 018 8026106502 Tax Key # 018 8026 1059 City of South Bend City of South Bend City of South Bend 227 W Jefferson Ste 1200 227 W Jefferson Ste.1200 227 W Jefferson Ste.1200 South Bend, IN. 46601 South Bend, IN. 46601 South Bend, IN. 46601 Tax Key # 018 8026106501 Tax Key # 018 80261066 Tax Key # 018 8026 1067 City of South Bend City of South Bend City of South Bend 227 W Jefferson Ste.1200 227 W Jefferson Ste.1200 227 W Jefferson Ste.1200 South Bend, IN. 46601 South Bend, IN. 46601 South Bend, IN. 46601 Tax Key # 018 80261063 Tax Key # 018 80261065 Tax Key # 018 8026 1058 City of South Bend City of South Bend City of South Bend 227 W Jefferson Ste. 1200 1300 County City Building 1200 County City Bldg South Bend, IN. 46601 South Bend, IN. 46601 South Bend, IN. 46601 Tax Key # 018 8026 1062 Tax Key # 018 80311323 Tax Key # 018 8031 1324 City of South Bend Michael & Donna Myers Mike Medich & Melanie Obren 1300 County City Bldg 63200 Maple Rd 826 W Indiana Ave South Bend, IN. 46601 South Bend, IN. 46614 South Bend, IN. 46613 Tax Key # 018 8031 1325 Tax Key # 018 8031 1326 Tax Key # 018 8032 1410 Mike Medich & Melanie Obren Stephen & Martin Lentsch EKJ Legacies Inc & Mary Tavernier 826 W Indiana Ave 750 E Indiana Ave 1002 S 25`h St South Bend, IN. 46613 South Bend, IN. 46613 South Bend, IN. 46615 Tax Key # 018 8032 1409 Tax Key # 018 80321386 Tax Key # 018 80321385 George & Theresa Strantz LARA Properties Corp Stephen & Robert Ullery 737 Donmoyer PO Box 1651 730 W Indiana Av South Bend, IN. 46614 South Bend, IN. 46634 South Bend, IN. 46613 Tax Key # 018 8031 1289 Tax Key # 018 80311290 Tax Key # 018 8031 1289 Maoyu Shang City of South Bend David Wilkin 1608 Leer St 227 W Jefferson BI 19614 Rolling Acres Dr South Bend, IN. 46613 South Bend, IN. 46601 South Bend, IN. 46614 Tax Key # 018 8032 1408 Tax Key # 018 8032 1418 Tax Key # 018 8032 1417 Roseland Land & Finance Corp Ronald Grow Ping Zhu Ping 241 E Saginaw 16329 Old Bayou Rd 11421 Crocus Ct East Lansing, MI. 48823 Granger, IN. 46530 Plymouth, IN. 46563 Tax Key # 018 8032 1399 Tax Key # 018 8032 1398 Tax Key # 018 8032 1397 Ping Zhu Ping Stephen & Martin Lentsch Kraft Tire Service Inc 11421 Crocus Ct 750 W Indiana Ave 720 W Indiana Plymouth, IN. 46563 South Bend, IN. 46613 South Bend, IN. 46613 Tax Key # 018 8032 1396 Tax Key # 018 8032 1387 Tax Key # 018 8031 1321 James Urbanski 718 W Indiana Ave South Bend, IN. 46613 Tax Key # 018 80311322 i C ii .;r: r VACATION DIAGRAM A PART OF THE NORTHWEST AND NORTHEAST QUARTERS OF SECTION 14, TOWNSHIP 37 NORTH, RANGE 2 EAST, PORTAGE TOWNSHIP, ST. JOSEPH COUNTY, INDIANA AREA TO BE VACATED 0 200 400 6D0 SCALE le = 2W Danck Har�e� drAeeOC tee, lrfc. Land Surveyors • Professional Engineer; Landscape Architects. Land Planners OHiu: (514)234 -4903 / (800)594 -4003 . 1. (514)234-4119 1643 Commerce Drive a South Bend, IN 46628 2 2 VACATION DIAGRAM A PART OF THE NORTHWEST AND NORTHEAST QUARTERS OF SECTION 14, TOWNSHIP 37 NORTH, RANGE 2 EAST, PORTAGE TOWNSHIP, ST. JOSEPH COUNTY, INDIANA AREA TO BE VACATED 0 200 400 600 SCALE I' = 200, DlQI{C M6idMtie��� AC. Land Surveyors • Professional Engineers Landscape Architects- Land Planners OHw. (524)234 -4503 / (eoo)s 4 -4o . F. (674)]34-4119 1543 Commerce Dr . . Sou1A %l. 11 46621 Filed i " s office' CIT: 1 L The South Bend Common Council I" District Council Member Tim Scott, Council President 227 West Jefferson Boulevard, Room 441 Downtown South Bend, Indiana 46601 574.235.5980 574.235.9173 FAX 574.235.5567 TDD tsottAsouthbendin ov January 22, 2015 Members of the Common Council 4"' Floor County -City Building South Bend, Indiana 46601 Re: Bill No. 59 -14 Vacant Building Maintenance & Registration Dear Council Members: I am requesting that Bill No. 59 -14 be continued until our Council meeting of February 9, 2015, and referred back to the Health and Public Safety Committee. New progressive concepts are being considered and additional time will be needed to further develop these ideas. I look forward to our upcoming discussions on a substitute Bill. Thank you. Mot sincerel Tim Scott, I' District Council Member Council President cc: Mayor Peter Buttigieg Scott Ford, Community Investment Director Office of the City Clerk Substitute Bill No.59 -14 Ordinance No. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING SECTION 6 -37.1 OF THE SOUTHBEND MUNICIPAL CODE ADDRESSING VACANT BUILDING MAINTENANCE AND REGISTRATION STATEMENT OF PURPOSE AND INTENT On November 26, 2007, the South Bend Common Council passed Ordinance No. 9810 -07. That ordinance created city -wide regulations addressing the registration and maintenance of vacant and abandoned buildings. In 2007, the City of South Bend initiated a three -year program costing $6.825 million to reduce the City's vacant houses by more than 115 and to reduce abandoned housed by 72 %. On February 27, 2013, the "Vacant & Abandoned Properties Task Force Report" was released with Mayor Buttigieg called for 1,000 houses to be addressed in 1,000 days. A combination of rehabilitation and demolition activities has been ongoing. As of the introduction of this ordinance which would raise the annual registration fee, 606 properties have been addressed. The ongoing costs to the city for these programs are continuing to increase. Therefore the following fee adjustments are proposed, which are believed to be in the best interests of the City of South Bend, Indiana. (,, /rr/•r, tf9r,i/ ®ri /uiar� //� / /r /i�mm� �9'iei/�ri /.� //r �i %� i�" Section I. Section 6 -37.1 (h) of the South Bend Municipal Code is hereby amended to read as follows: (h) Registration Fees. (1) The owner of any building required to be registered under this section shall pay an annual registration fee to the Department of Code Enforcement upon registration. However, the owner of a building that is vacant but not abandoned within the meaning of this section, who voluntarily registers the building pursuant to Subsection (d)(3), is not required to pay a registration fee. (2) If the building is used for or zoned for residential purposes and contains not more than three (3) residential units the registration fee shall be fifty-dellars ($30.00) two hundred fifty dollars ($250.001 per year. Ordinance Amending Vacant Building Maintenance and Registration Regulations Page 2 (3) If the building is used or zoned for residential purposes and contains more than three (3) residential units, or if it is used or zoned for any non - residential purposes, the fee shall be twe hundred and fifly dollars ($250.00) five hundred dollars ($500.00) for the first year or any part thereof, ) seven hundred fifty dollars ($750.00) for the second year or any part thereof, and five hundred dellar-9 ($300:000) one thousand dollars ($1,000.00) for the third and each subsequent year or any part thereof that the property is required to be registered pursuant to this section. (4) The purpose of the registration fee is to reimburse the Department of Code Enforcement for the costs of continual monitoring the property by trained staff, and the additional costs of responding to emergencies and property maintenance requirements for a vacant and abandoned building, which includes but is not limited to personnel costs associated therewith to see that there is compliance with regard to repairs demolition blight elimination, deconstruction, and legal expenses incurred by the city. (5) The Director of Code Enforcement shall have the limited authority to waive accrued fees and /or fines on a case by case basis when those costs are determined to impede positive action on an individual property to rehabilitate it for public benefit. Section II. If any part, subsection, section, paragraph, sub - paragraph, sentence, clause, phrase or word of this ordinance is for any reason declared to be unconstitutional or otherwise invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. Section III. this ordinance shall be in full force and effect from and after its passage by the Common Council, approval by the Mayor, and legal publication. Tim Scott, 151 District Council Member South Bend Common Council John Voorde, City Clerk Ordinance Amending Vacant Building Maintenance and Registration Regulations Page 3 P Xwlre/by me to Pete Buttigieg, the Mayor of the City of South Bend, Indiana, on the day of 2014, at o'clock _. m. Janice Talboom, Deputy Clerk rN11111 n Cdr /w. /by me on the _ day of 2014, at _ o'clock m. 1e1 READING o JZ1 �1 1 PUELIC HLArZING 3 rd READING NOi APPROVED RHERRED PASSED Pete Buttigieg Mayor of the City of South Bend, Indiana Filed, h t,x's keg Office -5 2014 F J HN NCyURDE CITY CLERK, SUtlTV SEND, IN Oliver J. Davis President Derek D. Dieter Vice- President Valerie Schey Chairperson, Committee of the Whole Tim Scott First District Henry Davis, Jr. Second District Valerie Schey Third District Fred Ferlic Fourth District David Varner Fifth District Oliver J. Davis Sixth District Derek D. Dieter At Large Gavin Ferlic At Large Karen L. White At Large City of South Bend Common Council 441 County-City Building • 227 W. Jefferson Blvd (574) 235 -9321 South Bend, Indiana 46601 -1830 Fax (574) 235 -9173 http://www.southbendin.gov December 5, 2014 Members of the South Bend Common Council 41h Floor County -City Building South Bend, Indiana 46601 Re: Substitute Bill No. 59 -14 Regulations Vacant Building Maintenance and Registration Fees Dear Council Members: Since Bill No. 59 -14 was filed with the Office of the City Clerk on October 2151, I have had the opportunity to have additional discussions with the City Administration on the process of potentially implementing the requested changes after they receive Council review and approval. Substitute Bill No. 59 -14 would provide a process for waiver of fees and/or fines on a limited case by case basis. I seek your support of these needed changes and look forward to discussing this Bill with you on Monday at the Health and Public Safety Committee.. Thank you. Most sincere , Tim c First District Council Member Attachment Pilau jr, -mk's office tOHN, VOOPOE CITY CE IERt(, SOUTH Bill No. 66 -14 (Substitute) ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 20, ARTICLE 7, OF THE SOUTH BEND MUNICIPAL CODE TO ADDRESS SNOW REMOVAL PRACTICES AND PROCEDURES STATEMENT OF PURPOSE AND INTENT The winter months of 2014 presented substantial, unprecedented challenges to the City of South Bend's snow clearance services for its citizens. It also offered an opportunity to test the effectiveness of the City's parking restrictions as part of the City's snow clearance process. After critically assessing the current snow removal process and procedures, the City's Streets Division has concluded that changes to the current snow removal process should be implemented for reasons of safety, and efficacy in snow removal by the City's heavy equipment. Specifically, for. snow clearance purposes, the City will require that on even numbered days, parking will; be permitted solely on the side of City streets with even numbered addresses, and on odd numbered days, parking will be permitted solely on the side of City streets with odd numbered addresses. This ordinance implements such a procedural change. It also designates the Director of Public Works for the City of South Bend, rather than the City Engineer, to make snow removal decisions in addition to the mayor, but reserves exclusively for the mayor the decision to declare Winter Weather Emergency conditions. Finally, because public failure to comply with snow removal procedures has a substantial impact upon overall safety and upon the effectiveness of snow removal, this ordinance increases the penalty for violation from Twenty -five dollars ($25.00) to Fifty dollars ($50.00), NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, as follows: Section I. Chapter 20, Article 7, Section 20 -101, subpart (d) shall be and hereby is amended to read as follows: Sec. 20 -101. Definitions. (a) Snow removal condition means a formal declaration by the appropriate person as uJ va va in his uvovaa e, the eity engineer, or in the absenee ef beth, the mayerls designee, as designated ___ T -iting and filed in the VFQ__ efthe eity _i_-1_, that, In his or her opinion, the actual or expected precipitation will create hazardous or dangerous street or sidewalk conditions. Such declaration shall take one (1) of the following forms: (1) Snow route clearance condition. (2) Street Residential clearance condition. (3) Winter weather emergency condition (c) Street Real clearance condition means a snow - removal condition which addresses all non snow retites (residential streets) -city streets (d) Winter weather emergency condition means a formal declaration by the mayor or, in the mayor's absence, the ..:t.. engineer, or in both e f their- abs the mayor's designee, that the occurrence or eimminent threat of widespread or severe damage, injury or loss of life or property resulting from a snow storm requires emergency action. Section II. Chapter 20, Article 7, Section 20 -104 shall be and hereby is amended to read in its entirety as follows: Sec. 20 -104. Snow removal conditions. (a)If the mayor or; in his absenee, the eityerrgiaee - Director of Public Works for the City of South Bend , or in their abscnees, the mayor's designee, determines that the actual or expected accumulation of snow, sleet, hail, ice and/or freezing rain is creating or will create hazardous or dangerous street and sidewalk conditions of sufficient severity to require specialized snow removal procedures, the mayor or, in his - absenee, the e-ity engineer Director of Public Works, or in h° ei absenees, the mayor's designee, shall have the authority to declare that one (1) of the following snow removal conditions exists: (1) Snow route clearance conditions. (2) Residential Street clearance conditions. (3) (b) The mayor alone, or in the mayor's absence, the mayor's designee shall have the authority to declare that A adeelaratien s Wwinter weather emergency condition exists as defined at Section 20- 101(d) of this Article. (c) All snow removal conditions shall be declared by the maye- or, in his absen°° the eity er in both of their absene° , the appropriate person, by issuing a 2 press release to local radio, television, newspaper and other news services. Such declaration shall be made on a form which contains the following information: Date, time and reason for declaration, the actual or anticipated weather conditions at time of declaration. Such declaration shall be signed by the mayor or, hi his absenee, the eityy-engineer Director of Public Works, or :.. beth of thei absenees, the mayor's designee, and a copy filed, as soon as possible, with the office of the city clerk, where it shall be available for public inspection. (d) Once declared, the snow removal condition shall continue until the mayor or in his absence—,the eity engineer, Director of Public Works, or i - hihis the mayor's designee, declares it to be ended in the same manner as provided for its declaration in subsection (b). Such declaration shall be signed by the mayor or, in his absenee, the eity engineerDirector of Public Works, or in both of their absenees the mayor's designee, and a copy filed, as soon as possible with the office of the city clerk, where it shall be available for public inspection. Only the mayor or the mayor's designee may declare a winter weather emergency condition to be ended. (e) Snow removal conditions may be declared for the entire city or any part thereof, as the mayor or, in his abseneo, the eity engineer- of Public works, or in both e € their a;;sLanses the mayor's designee, deems necessary for effective snow removal. Section III. Chapter 20, Article 7, Section 20 -105 shall be and hereby is amended to read as follows: Sec. 20 -105. Traffic regulations during snow removal conditions. (a) Snow route clearance conditions: When snow route clearance conditions are declared to exist, the following traffic regulations shall be in effect: (1) No vehicle shall be parked on a street designated as a snow route. (2) Any vehicle parked, stalled, incapable of moving under its own power or left unattended on any street designated as a snow route shall be issued a citation and/or towed and/or impounded. (3) Provided, however, that no such vehicle shall be issued a citation and /or towed and/or impounded if the street upon which it is parked has been plowed by the city in such a manner that all traffic and parking lanes are open and clear of snow. (4) The owner of any vehicle in violation of this article shall be responsible for all citation fines, towing and storage fees. Citations under this article shall be issued as provided in section 20 -17 of this chapter. (b) Street Residentia l snow clearance conditions. When residential street snow clearance conditions are declared to exist, the following traffic regulations shall be in effect: (1) Parking shall be allowed en streets designffted as snew reute . (2) Parking shall be banned from 8:00 a.m. until 8:00 a.m. the following morning on all streets not designated as snow routes in accord with one of the following schedules: a. Even - numbered days -Ne paddiig en easVwest stfeets. Parking solely on even address street sides (parking solely on south or east sides of streets) even if street is designated or posted as "no parking". Odd - numbered days — No ,.ar4ing eii nei4 south streets. Parking solely on odd address street sides (parking solely on north or west sides of streets) even if street is designated or posted as "no parking ". (3) Any vehicle parked, stalled, incapable of moving under its own power or left unattended upon any street in violation of this section shall be issued a citation and /or towed and /or impounded upon discovery. (4) Provided, however, that no such vehicle shall be issued a citation and/or towed and /or impounded if the street upon which it is parked has been plowed by the city in such a manner that all traffic and parking lanes are open and clear of snow. (5) The owner of any vehicle in violation of this article shall be responsible for all citation fines, towing and storage fees. Citations under this article shall be issued as provided in section 20-17-of this chapter. (c) Winter weather emergency conditions: When winter weather emergency conditions as defined at 20 -101 (d) of this Article are declared to exist, the following regulations shall be in effect: (1) The mayor alone or, in his absenee, e eity engineer, ^vrn both a their abseiiees, the mayor's designee, shall have the following powers: a. To limit traffic within the city. b. To establish such parking regulations as he or she deems necessary. c. To designate both city -owned vehicles and privately owned vehicles as "temporary service vehicles." d. To exercise all authority granted pursuant to IC 10- 14 -3 -1 et seq., the Emergency Management and Disaster Law, regulating civil defense disaster law if he or she deems weather conditions to be severe enough to implement such emergency powers. Section IV. Chapter 20, Article 7, Section 20 -105.1 shall be and hereby is amended to read as follows: Sec. 20- 105.1. Penalties. Any person found to be in violation of section 20 -105 of this article shall be fined t..,. i4y five dollars (25.00) Fifty dollars ($50.00). (lb) Enforcement of Sec.20 -105 shall be by the Police Department, Code Enforcement Department, and other entities consistent with policies and procedures set forth in Sec. 20 -17, with all fines being paid through the Ordinance Violations Bureau. Section V. Severability: If any part, subsection, section, paragraph, sub - paragraph, sentence, clause, phrase or word of this ordinance is for any reason declared to be unconstitutional or otherwise invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. Section VI. This ordinance shall be in full the Common Council, approval by the Mayor, and Attest: City Clerk after its passage by required Member SWft of this W is o* to provide an oppmtz* for public hearing and C=d action at this f�lle, Presented by me to the Mayor of the City of South Bend, Indiana on the 2015, at o'clock. .m. City Clerk Council day of Approved and signed by me on the day of , 2015, at o'clock, .m. I sl READING I Z-J o PUBLIC HEARING 3 rd READING JOT APPROVED EEERRED 'ASSED Mayor, City of South Bend, Indiana Filed i, ';Mice zut5 Joh< J CITY CLERK, �51a,'•ai s END, IN CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR DEPARTMENT OF PUBLIC WORKS January 23, 2015 Mr. Tim Scott President, South Bend Common Council 4'" Floor, County -City Building South Bend, IN 46601 Re: Ordinance Amendment to South Bend Municipal Code Chapter 20, Article 7, Regarding Snow Removal Practices and Procedures Dear President Scott Based on the feedback that we received from the Common Council, the City has revised the amendment to the snow removal ordinance with the attached substitute ordinance. The ordinance allows the City to operate in significant snow events more efficiently and effectively. It also simplifies parking restrictions for street clearance events to allow parking on even numbered days on the even numbered side of the street and on odd days on the odd numbered side of the street. The ordinance sets fines for violations at $50 and clearly defines who shall enforce the restrictions and who shall collect the fines. I hope that we have addressed the Council's concerns with this substitute ordinance. Either Dr. Boyles or I will present this ordinance at the Council's Committee meeting and at the public hearing. If you have any further questions or need additional information, please let me know. As always, thank you for your consideration Sincerely, Eric C. Hory th Director of Public Works Filed .. sage E CITY CLER €t, &'[� �)& ��-Iy ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 20, ARTICLE 7, OF THE SOUTH BEND MUNICIPAL CODE TO ADDRESS SNOW REMOVAL PRACTICES AND PROCEDURES STATEMENT OF PURPOSE AND INTENT The winter months of 2014 presented substantial, unprecedented challenges to the City of South Bend's snow clearance services for its citizens. It also offered an opportunity to test the effectiveness of the City's parking restrictions as part of the City's snow clearance process. After critically assessing the current snow removal process and procedures, the City's Streets Division has concluded that changes to the current snow removal process should be implemented for reasons of safety, and efficacy in snow removal by the City's heavy equipment. Specifically, for snow clearance purposes, the City will require that on even numbered days, parking will be permitted solely on the side of City streets with even numbered addresses, and on odd numbered days, parking will be permitted solely on the side of City streets with odd numbered addresses. This ordinance implements such a procedural change. It also designates the Director of Public Works for the City of South Bend, rather than the City Engineer, to make snow removal decisions in addition to the mayor, but reserves exclusively for the mayor the decision to declare a "winter weather emergency condition. ". Finally, because public failure to comply with snow removal procedures has a substantial impact upon overall safety and upon the effectiveness of snow removal, this ordinance increases the penalty for violation from Twenty-five dollars ($25.00) to One Hundred dollars ($100.00), NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, as follows: Section 1. Chapter 20, Article 7, Section 20 -101, subpart (d) shall be and hereby is amended to read as follows: Sec. 20 -101. Definitions. (d) Winter weather emergency condition means a formal declaration by the mayor or, in the mayor's absenc I iF ,the mayor's designee, that the occurrence or eimminent threat of widespread or severe damage, injury or loss of life or property resulting from a snow storm requires emergency action. Section II. Chapter 20, Article 7, Section 20 -104 shall be and hereby is amended to read in its entirety as follows: Sec. 20 -104. Snow removal conditions. (a) If the mayor or; in ab,e,ee, the eity-eagi ReerDirector of Public Works for the City of South Bend, or in-their z,ees, the mayor's designee, determines that the actual or expected accumulation of snow, sleet, hail, ice and/or freezing rain is creating or will create hazardous or dangerous street and sidewalk conditions of sufficient severity to require specialized snow removal procedures, the mayor or, in his Flh,;anee, the gineer-Director of Public Works, or in both of their absenees, the mayor's designee, shall have the authority to declare that one (1) of the following snow removal conditions exists: (1) Snow route clearance conditions. (2) Residemial Street clearance conditions. (b) The mayor alone or in the mayor's absence the mayor's designee shall have the authority to declare that a winter weather emergency condition exists as defined at Section 20- 101(d) of this Article Lc) All snow removal conditions shall be declared by the may er e -, in his , the eity engineer, or in beth of t absenees, the appropriate person, by issuing a press release to local radio, television, newspaper and other news services. Such declaration shall be made on a#'ofm which contains the following information: Date, time and reason for declaration, the actual or anticipated weather conditions at time of declaration. Such declaration shall be signed by the mayor or, in-kis absence, the eity engi aeer-Director of Public Works, or in beth Af 0;eir absenees, the mayor's designee, and a copy filed, as soon as possible, with the office of the (e) city clerk, where it shall be available for public inspection. (d) Once declared, the snow removal condition shall continue until the mayor or in44s abser=ea the -eity- engineer, Director of Public Works, or in Ms absenee, his the mayor's designee, declares it to be ended in the same manner as provided for its declaration in subsection (b). Such declaration shall be signed by the mayor or, in his absence, the city engineerDirector of Public Works, or i-n. beth of thei absenees, the mayor's designee, and a copy filed, as soon as possible with the office of the city clerk, where it shall be available for public inspection. Only the mayor or the mayor's designee may declare a winter weather emergency condition to be ended. (e) Snow removal conditions may be declared for the entire city or any part thereof, as the mayor or, in-his ab;e„ee, the eity engineer- Director of Public Works, or in Beth e€ their absenees, the mayor's designee, deems necessary for effective snow removal. Section I1. Chapter 20, Article 7, Section 20 -105 shall be and hereby is amended to read as follows: Sec. 20 -105. Traffic regulations during snow removal conditions. (a) .Snow route clearance conditions: When snow route clearance conditions are declared to exist, the following traffic regulations shall be in effect: (1) No vehicle shall be parked on a street designated as a snow route (2) Any vehicle parked, stalled, incapable of moving under its own power or left unattended on any street designated as a snow route shall be issued a citation and/or towed and /or impounded. (3) Provided, however, that no such vehicle shall be issued a citation and/or towed and/or impounded if the street upon which it is parked has been plowed by the city in such a manner that all traffic and parking lanes are open and clear of snow. (4) The owner of any vehicle in violation of this article shall be responsible for all citation fines, towing and storage fees. Citations under this article shall be issued as provided in section 20 -17 of this chapter. (b) Street Ae snow clearance conditions. When residential street snow clearance conditions are declared to exist, the following traffic regulations shall be in effect: (1) Parldag shall be allowed on streets designated as snow Foute . (2) Parking shall be banned from 8:00 a.m. until 8:00 a.m. the following morning on all streets not designated as snow mutes in accord with one of the following schedules: a. Even - numbered days — No )& +dng o . Parking solely on even address street sides (narking solely on south or east sides of streets) even if street is designated or posted as "no parking" Q Odd - numbered days — N&pafld *g e � �s. Parking solely on odd address street sides (narking solely on north or west sides of streets even if street is designated or posted as "no parking (3) Any vehicle parked, stalled, incapable of moving under its own power or left unattended upon any street in violation of this section shall be issued a citation and /or towed and/or impounded upon discovery, (4) Provided, however, that no such vehicle shall be issued a citation and/or towed and /or impounded if the street upon which it is parked has been plowed by the city in such a manner that all traffic and parking lanes are open and clear of snow. (5) The owner of any vehicle in violation of this article shall be responsible for all citation fines, towing and storage fees. Citations under this article shall be issued as provided in section 20-17-of this chapter. (c) Winter weather emergency conditions: When winter weather emergency conditions as defined at 20 -101 (d) of this Article are declared to exist, the following regulations shall be in effect: (1) The mayor alone or, his absenee, eky-engineer , their the mayor's designee, shall have the following powers: �, a. To limit traffic within the city. b. To establish such parking regulations as he or she deems necessary. c. To designate both city -owned vehicles and privately owned vehicles as "temporary service vehicles." d. To exercise all authority granted pursuant to IC 10- 14 -3 -I et seq., the Emergency Management and Disaster Law, regulating civil defense disaster law if he or she deems weather conditions to be severe enough to implement such emergency powers. Section III. Chapter 20, Article 7, Section 20 -105.1 shall be and hereby is amended to read as follows: Sec. 20- 105.1. Penalties. Any person found to be in violation of section 20 -105 of this article shall be fined one hundred twe .fie dollars 100.00 25.00) SECTION IV. This ordinance shall be in full force and effect from and after its passage by the Common Council, approval by the Mayor, and any publication required by law. 13 Attest: City Clerk C) Member of the Common Coun wd 0. Presented by me to the Mayor of the City of South Bend, Indiana on the day of 2014, at o'clock. —.m. Approved and signed by me on the __o'clock, m. I T1 READING [L4— I "LLIC HARING 3rd READING NOT APPROVED UFF.."'ED PASSED City Clerk day of 2014, at --n Mayor, City of South Bend, Indiana F119d' Nr Z014 CITY CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR DEPARTMENT OF PUBLIC WORKS December 3, 2014 Mr. Oliver Davis President, South Bend Common Council 4" Floor, County -City Building South Bend, IN 46601 Re: Ordinance Amendment to South Bend Municipal Code Chapter 20, Article 7, Regarding Snow Removal Practices and Procedures Dear President Davis: The City has continued to assess our snow removal process and procedures to help create a more efficient and effective system. The attached Ordinance amendment adds language to aid in snow removal process. Specifically, the City may require that on even numbered days, parking will be permitted solely on the side of the street with even numbered addresses, and on odd numbered days, parking will be permitted solely on the side of the street with odd numbered addresses. The snow removal policy also clarifies the designation of Winter Weather Emergency, which is only declared by the Mayor, from "snow removal conditions ", which may be declared by the Mayor or Public Works Director. This allows the City to enforce snow removal operations without declaring a Winter Weather Emergency. Finally, this amendment increases the fine from $25 to $100 for violations. Either Dr. Boyles or I will present this ordinance at the Council's Committee meeting and at the public hearing. If you have any further questions or need additional information, please let me know. Thank you for your consideration. Sincerely, Eric C. Horvath Director of Public Works Rao office 3 N14 CITYCLEH`, iu�4Ta� >sitv�i,Phi �1U J I Ordinance No. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE ISSUANCE OF BONDS BY THE CITY OF SOUTH BEND, INDIANA TITLED AS ECONOMIC DEVELOPMENT INCOME TAX BONDS OF 2015 AND OTHER MATTERS CONNECTED THEREWITH, INCLUDING THE PAYMENT OF INCIDENTAL EXPENSES ON ACCOUNT OF THE ISSUANCE OF THE BONDS AND REPEALING ORDINANCES INCONSISTENT HEREWITH WHEREAS, South Bend, Indiana (the "City "), is a governmental unit and political subdivision of the State of Indiana (the "State "), whose legislative and fiscal body is the Common Council (the "Council "); and, WHEREAS, the Council finds that it is advisable to issue the City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 (the "Bonds ") in an amount not to exceed $5,680,000, and to use the proceeds, together with funds on hand: (1) to pay the cost of various capital improvements and expansions at the City's parks and park facilities, including, but not limited to the items described on Exhibit A hereto (the "Project "); (2) to fund a reserve for the Bonds, if necessary; and (3) to pay for all costs related to the issuance of the bonds hereunder; and, WHEREAS, the City reasonably expects to pay debt service on the Bonds from economic development income tax revenue ( "EDIT Revenues "), on parity with the City's County Economic Development Income Tax Refunding Revenue Bonds, Series 2006A and Series 2006B (the "Prior Bonds ") any other obligations payable from such source (collectively, the "Panty Bonds ") and, if economic development income tax revenue is not sufficient, from other sources of funds legally available to the City for such purpose; and, WHEREAS, the Council now finds that all conditions precedent to the adoption of an ordinance authorizing the issuance of the Bonds have been complied with in accordance with the provisions of the Act; WHEREAS, the amount of proceeds of the Bonds allocated to costs of the Project, together with estimated earnings thereon, does not exceed the estimated costs of the Project; NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION 1. Authorization for Bonds. In order to provide for the financing of the Project and the costs of selling and issuing the Bonds, the City shall issue its Economic Development Income Tax Revenue Bonds of 2015 as herein authorized pursuant to Indiana Code 6 -3.5 (the "Act ") and the Common Council hereby deems the Project an "economic development project," as defined in the Act and /or a capital project for which the City could issue general obligation bonds. SECTION 2. General Terms of Bonds. (a) Issuance of Bonds. The City shall issue the Bonds in the aggregate principal amount not to exceed Five Million Six Hundred and Eighty Thousand Dollars ($5,680,000) (the "Authorized Amount") for the purpose of providing funds to (i) pay the of the costs of the Project, (ii) fund a debt service reserve fund, if necessary, and (iii) pay issuance costs related to the Bonds. The Controller of the City (the "Controller ") is hereby authorized and directed to advertise the sale of the Bonds and to receive bids therefore pursuant to a Notice of Intent to Sell Bonds in the form submitted with this ordinance. The Controller is authorized and directed to finalize such notice and to have prepared and to issue and sell the Bonds as negotiable, fully registered bonds of the City in an amount not to exceed the Authorized Amount. The Bonds shall be signed in the name of the City by the manual or facsimile signature of the Mayor (the "Mayor ") and attested by the manual or facsimile signature of the Controller, and the City Clerk (the "Clerk ") shall affix the seal of the City to each of the Bonds manually or shall have the seal imprinted or impressed thereon by facsimile or other means. In case any officer whose signature or facsimile signature appears on the Bonds shall cease to be such officer before the delivery of Bonds, such signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in office until delivery thereof. The Bonds also shall be, and will not be valid or become obligatory for any purpose or entitled to any benefit under this Ordinance unless and until, authenticated by the manual signature of the Registrar (as defined in Section 4 hereof). The Bonds shall be numbered consecutively from R -1 upward, shall be issued in denominations of Five Thousand Dollars ($5,000) or any integral multiple in excess thereof. The Bonds shall be originally dated as of the date of delivery of the Bonds, and shall bear interest payable semi - annually each February 1 and August 1, commencing not earlier than August 1, 2015 at a rate not exceeding six percent (6 %) per annum (the exact rate or rates on each Bond to be determined by bidding). Interest shall be calculated on the basis of a 360 -day year comprised of twelve 30 -day months. The Bonds may be sold at a discount not exceeding two percent (2 %) of the principal amount thereof. The Bonds shall mature semiannually on February 1 and August 1 of each year, as determined by the Controller, with a final maturity in not more than 20 years. All or a portion of the Bonds may be aggregated into and issued as one or more term bonds. The term bonds will be subject to mandatory sinking fund redemption with sinking fund payments and final maturities corresponding to the serial maturities described above. Sinking fund payments shall be applied to retire a portion of the term bonds as though it were redemption of serial bonds, and, if more than one term bond of any maturity is outstanding, the Registrar, by lot, shall make redemption of such maturity. Sinking fund redemption payments shall 2 be made in a principal amount equal to such serial maturities, plus accrued interest to the redemption date, but without premium or penalty. For all purposes of this Ordinance, such mandatory sinking fund redemption payments shall be deemed to be required payments of principal, which mature on the date of such sinking fund payments. Appropriate changes shall be made in the definitive Bonds, relative to the form of the Bonds contained in this Ordinance, to reflect any mandatory sinking fund redemption terms described in the Bond Purchase Agreement (as defined below). (b) Source of Payment. The Bonds are, as to all the principal thereof and interest due thereon, payable from EDIT Revenues, on parity with the Parity Bonds, and to the extent EDIT Revenues are not sufficient, any other sources of funds legally available to the City for such purposes. (c) Payments. All payments of interest on the Bonds shall be paid by check mailed one business day prior to the interest payment date to the registered owners thereof as of the fifteenth (15th) day of the month preceding the interest payment date (the "Record Date ") at the addresses as they appear on the registration and transfer books of the City kept for that purpose by the Registrar (the "Registration Record ") or at such other address as is provided to the Paying Agent (as defined in Section 4 hereof) in writing by such registered owner. Each registered owner of $1,000,000 or more in principal amount of Bonds shall be entitled to receive interest payments by wire transfer by providing written wire instructions to the Paying Agent before the Record Date for any payment. All principal payments and premium payments, if any, on the Bonds shall be made upon surrender thereof at the principal office of the Paying Agent, in any U.S. coin or currency which on the date of such payment shall be legal tender for the payment of public and private debts, or in the case of a registered owner of $1,000,000 or more in principal amount of Bonds, by wire transfer on the due date upon written direction of such owner provided at least fifteen (15) days prior to the maturity date or redemption date. Interest on the Bonds shall be payable from the interest payment date to which interest has been paid next preceding the authentication date thereof unless such Bonds are authenticated after the Record Date for an interest payment and on or before such interest payment date in which case they shall bear interest from such interest payment date, or unless authenticated on or before the Record Date for the first interest payment date, in which case they shall bear interest from the original date, until the principal shall be fully paid. (d) Transfer and Exchange. Each Bond shall be transferable or exchangeable only upon the Registration Record, by the registered owner thereof in writing, or by the registered owner's attorney duly authorized in writing, upon surrender of such Bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the registered owner or such attorney, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount, and of the same maturity, shall be executed and 3 delivered in the name of the transferee or transferees or the registered owner, as the case may be, in exchange therefor. The costs of such transfer or exchange shall be borne by the City, except for any tax or governmental charges required to be paid in connection therewith, which shall be payable by the person requesting such transfer or exchange. The City, the Registrar and the Paying Agent may treat and consider the persons in whose names such Bonds are registered as the absolute owners thereof for all purposes including for the purpose of receiving payment of, or on account of, the principal thereof and interest and premium, if any, due thereon. (e) Mutilated, Lost, Stolen or Destroyed Bonds. In the event any Bond is mutilated, lost, stolen or destroyed, the City may execute and the Registrar may authenticate a new bond of like date, maturity and denomination as that mutilated, lost, stolen or destroyed, which new bond shall be marked in a manner to distinguish it from the bond for which it was issued, provided that, in the case of any mutilated bond, such mutilated bond shall first be surrendered to the Registrar, and in the case of any lost, stolen or destroyed bond there shall be first furnished to the Registrar evidence of such loss, theft or destruction satisfactory to the Controller and the Registrar, together with indemnity satisfactory to them. In the event any such bond shall have matured, instead of issuing a duplicate bond, the City and the Registrar may, upon receiving indemnity satisfactory to them, pay the same without surrender thereof. The City and the Registrar may charge the owner of such Bond with their reasonable fees and expenses in this connection. Any Bond issued pursuant to this paragraph shall be deemed an original, substitute contractual obligation of the City, whether or not the lost, stolen or destroyed Bond shall be found at any time, and shall be entitled to all the benefits of this Ordinance, equally and proportionately with any and all other Bonds issued hereunder. SECTION 3. Terms of Redemption. The Bonds are subject to redemption prior to maturity, at the option of the City on thirty (30) days' notice, in whole or in part, in any order of maturities selected by the City and by lot within a maturity, beginning not earlier than the Bonds maturing February 1, 2025 or on such other dates and with premiums, if any, and other terms as determined by the Controller with the advice of the City's financial advisor, as evidenced by the execution of the Bond Purchase Agreement and the Bonds by the Controller. Notice of redemption shall be mailed by first -class mail to the address of each registered owner of a Bond to be redeemed as shown on the Registration Record not more than sixty (60) days and not less than thirty (30) days prior to the date fixed for redemption except to the extent such redemption notice is waived by owners of Bonds redeemed; provided, however, that failure to give such notice by mailing, or any defect therein, with respect to any Bond shall not affect the validity of any proceedings for the redemption of any other Bonds. The notice shall specify the date and place of redemption, the redemption price and the CUSIP numbers, if applicable, of the Bonds called for redemption. The place of redemption may be determined by the City. Interest on the Bonds so called for redemption shall cease on the redemption date fixed in such notice if sufficient funds are available at the place of redemption to pay the redemption price on the date so named, and thereafter, such Bonds shall no longer be protected by this Ordinance and shall E not be deemed to be outstanding hereunder, and the holders thereof shall have the right only to receive the redemption price. All Bonds which have been redeemed shall be canceled and shall not be reissued; provided, however, that one or more new registered bonds shall be issued for the unredeemed portion of any Bond without charge to the holder thereof. No later than the date fixed for redemption, funds shall be deposited with the Paying Agent or another paying agent to pay, and such agent is hereby authorized and directed to apply such funds to the payment of, the Bonds or portions thereof called for redemption, including accrued interest thereon to the redemption date. No payment shall be made upon any Bond or portion thereof called for redemption until such bond shall have been delivered for payment or cancellation or the Registrar shall have received the items required by this Ordinance with respect to any mutilated, lost, stolen or destroyed bond. SECTION 4. Appointment of Registrar and Paving Agent. The Controller is hereby appointed to serve as registrar and paying agent or is authorized to appoint another registrar and paying agent for the Bonds (together with any successor, the "Registrar" or "Paying Agent'). The Registrar is hereby charged with the responsibility of authenticating the Bonds, and shall keep and maintain the Registration Record at its office. The Mayor is hereby authorized to enter into such agreements or understandings with an institution as will enable the institution to perform the services required of the Registrar and Paying Agent. The Controller is authorized to pay such fees as an institution may charge for the services it provides as Registrar and Paying Agent. The Registrar and Paying Agent may at any time resign as Registrar and Paying Agent by giving thirty (30) days written notice to the City and to each registered owner of the Bonds then outstanding, and such resignation will take effect at the end of such thirty (30) days or upon the earlier appointment of a successor Registrar and Paying Agent by the City. Such notice to the City may be served personally or be sent by first -class or registered mail. The Registrar and Paying Agent may be removed at any time as Registrar and Paying Agent by the City, in which event the City may appoint a successor Registrar and Paying Agent. The City shall notify each registered owner of the Bonds then outstanding of the removal of the Registrar and Paying Agent. Notices to registered owners of the Bonds shall be deemed to be given when mailed by first -class mail to the addresses of such registered owners as they appear on the Registration Record. Any predecessor Registrar and Paying Agent shall deliver all the Bonds, cash and investments related thereto in its possession and the Registration Record to the successor Registrar and Paying Agent. At all times, the same entity shall serve as Registrar and as Paying Agent. SECTION 5. (a) Form of Bonds. The form and tenor of the Bonds shall be substantially as shown in Exhibit B, all blanks to be filled in properly and all necessary additions and deletions to be made prior to delivery thereof and the approval of any changes to such form shall be evidenced by the execution by the Mayor and the Controller. (b) Authorization of Book -Entry Bonds. The City may, upon the advice of its financial advisor, have the Bonds held by a central depository system pursuant to an agreement 5 between the City and The Depository Trust Company, New York, New York ( "DTC ") and have transfers of the Bonds effected by book -entry on the books of the central depository system. In such case, the Bonds shall be issued in the name of Cede & Co., as nominee for DTC, as registered owner of the Bonds, and held in the custody of DTC and the terms and conditions of this provision shall apply. If the Bonds are held by DTC, a single certificate will be issued and delivered to DTC for each maturity of the Bonds. The actual purchasers of the Bonds (the `Beneficial Owners ") will not receive physical delivery of the Bond certificates except as provided herein. Beneficial Owners are expected to receive a written confirmation of their purchase providing details of each Bond acquired. For so long as DTC shall continue to serve as securities depository for the Bonds as provided herein, all transfers of beneficial ownership interests will be made by book -entry only, and no investor or other party purchasing, selling, or otherwise transferring beneficial ownership of the Bonds is to receive, hold, or deliver any Bond certificate. For every transfer and exchange of the Bonds, the Beneficial Owner may be charged a sum sufficient to cover such Beneficial Owner's allocable share of any tax, fee, or other governmental charge that may be imposed in relation thereto. Bond certificates are required to be delivered to and registered in the name of the Beneficial Owner, under the following circumstances: (i) DTC determines to discontinue providing its service with respect to the Bonds (such a determination may be made at any time by giving thirty (30) days' notice to the City and the Registrar and discharging the responsibilities with respect thereto under applicable law), or (ii) the City determines that continuation of the system of book -entry transfers through DTC (or a successor securities depository) is not in the best interests of the Beneficial Owners. The City and the Registrar will recognize DTC or its nominee as the holder of the Bonds for all purpose, including notices and voting. The City and the Registrar covenant and agree, so long as DTC shall continue to serve as securities depository for the Bonds, to meet the requirements of DTC with respect to required notices and other provisions of a Letter of Representations between the City and DTC. If necessary to comply with the terms and provisions of the Letter of Representations, a supplemental ordinance shall be adopted to amend this ordinance as necessary. The Registrar is authorized to rely conclusively upon a certificate furnished by DTC and corresponding certificates from DTC participants and indirect participants as to the identity of, and the respective principal amount of Bonds beneficially owned by, the Beneficial Owner or Beneficial Owners. 0 SECTION 6. Preparation and Sale of Bonds. (a) The Controller is hereby authorized and directed to have the Bonds prepared, and the Mayor and Controller are hereby authorized and directed to execute the Bonds in the form and manner herein provided. The Controller is hereby authorized and directed to deliver the Bonds to the purchaser of the Bonds as selected through bidding in accordance with Indiana Code 5- 1 -11 -2 and approved by the Controller, in accordance with a bond purchase agreement between the City and the purchaser (the "Bond Purchase Agreement "). The substantially final form of Bond Purchase Agreement between the City and the purchaser is submitted to the Council with this ordinance and is incorporated herein and is hereby approved in such form by the City. The Mayor and Controller are hereby authorized to approve necessary revisions to such agreement and to execute the Bond Purchase Agreement and deliver the Bonds to the purchaser thereof in accordance with the terms of the Bond Purchase Agreement so long as their terms are consistent with this ordinance. The Bond Purchase Agreement shall establish a final principal amount, purchase price, interest rates, maturity schedule, denominations and mandatory redemption features, if any. (b) The proceeds derived from the sale of the Bonds shall be and are hereby set aside for the cost of the Project, the funding of a reserve for the Bonds, if necessary, and the payment of various expenses necessarily incurred in connection with the Bonds. The proper officers of the City are hereby directed to draw all proper and necessary warrants, and to do whatever acts and things which may be necessary to carry out the provisions of this Ordinance. (c) The preparation and distribution of an official statement for the Bonds is hereby authorized in the form submitted with this ordinance. The Mayor and Controller are hereby authorized and directed to finalize and execute such official statement on behalf of the City in a form consistent with this Ordinance and are further authorized to designate the preliminary official statement as "nearly final" for purposes of Rule 15c2 -12 of the Securities and Exchange Commission (the "SEC Rule "), if applicable. (d) The Controller, with the advice of the City's financial advisor, is hereby authorized to obtain one or more ratings for the Bonds if such rating or ratings will facilitate the sale of the Bonds. (e) The Controller is hereby authorized and directed to obtain a legal opinion as to the validity of the Bonds from Frost Brown Todd LLC, and to furnish such opinion to the purchaser of the Bonds. The costs of such opinion shall be paid out of the proceeds of the Bonds. 7 SECTION 7. Funds and Accounts. (a) Use of Proceeds: Capital Fund. (i) First, any premium received at the time of delivery of the Bonds will be deposited to the Bond Principal and Interest Account as defined below and applied to payments on the Bonds on the applicable interest payment date. (ii) Second, if proceeds of the Bonds will be used to fund all or a portion of a reserve for the Bonds, the Controller shall transfer such proceeds to the Reserve Account, as directed by the Controller. (iii) Third, the remaining proceeds from the sale of the Bonds shall be deposited in a fund hereby created and designated as the "EDIT Bond Capital Fund." Such Capital Fund may be held by the City, or may be held by a bank or Trustee, on behalf of the City, and in such event, the Controller is hereby authorized to enter into an agreement regarding the deposit to, and use of, money in such fluid. The proceeds deposited in the EDIT Bond Capital Fund, together with all investment earnings thereon shall be expended by the City only for costs of the Project and on the payment of costs related to the Issuance of the Bonds. When all costs of the Project and costs of issuance of the Bonds have been paid, the Controller shall then transfer any amount then remaining from the proceeds of the Bonds to the payment of principal on the bonds or used as otherwise permitted by law. (b) Funds. Upon receipt, the EDIT Revenues will be deposited into a previously created "Economic Development Income Tax Fund," which consists of a Bond Principal and Interest Account, a Reserve Account and an Excess Account, and moneys deposited in such Fund shall be used in the following order of priority within the fund. (i) Bond Principal and Interest Account. As soon as possible upon receipt by the City of EDIT Revenues due in May and November of each year, beginning with the May 2015 distribution, but not later than June 15 or December 15 following receipt of the EDIT Revenues, the City shall deposit all EDIT Revenues into the Bond Principal and Interest Account to be used to pay principal of and interest on the EDIT Bonds (as defined in Section 10 hereof) until amounts on deposit in such account are sufficient to make the next principal and interest payment on the EDIT Bonds. (ii) Reserve Account. After making the required deposit to the Bond Principal and Interest Account, there will be deposited in the E Reserve Account, remaining EDIT Revenues, to the extent available, to maintain the Reserve Account in the amount required, if any, for any of the EDIT Bonds. At the election of the Controller, no reserve may be required for the Bonds. (iii) General Account. After making the required deposits to the Bond Principal and Interest Account and the Reserve Account, all remaining EDIT Revenues, if any, will be transferred to the General Account. All moneys in the General Account will be used and withdrawn for any of the purposes set forth in the Act, including, without limitation, payment of additional costs of the Project. SECTION 8. Authorization. (a) Authorization. The proper officers of the City are hereby directed to sell the Bonds to the Purchaser, to draw all proper and necessary warrants, and to do whatever acts and things which may be necessary to carry out the provisions of this Ordinance. (b) Official Statement and Disclosure Agreement. The Mayor and the Controller each are hereby authorized to approve and deem final an official statement with respect to the Bonds, as of its date, in accordance with the provisions of Rule 15c2- 12 of the U.S. Securities and Exchange Commission, as amended (the "SEC Rule "), subject to completion as permitted by the SEC Rule, and the City further authorizes the distribution of the deemed final official statement, and the execution, delivery and distribution of such document as further modified and amended with the approval of the Mayor or the Controller in the form of a final official statement. SECTION 9. Defeasance. If, when the Bonds or any portion thereof shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions to call the Bonds or any portion thereof for redemption have been given, and the whole amount of the principal, premium, if any, and the interest so due and payable upon such bonds or any portion thereof then outstanding shall be paid, or (i) cash, or (ii) direct noncallable obligations of or unconditionally guaranteed by the U.S. Department of the Treasury, or (iii) any combination of the foregoing, shall be held irrevocably in trust for such purpose, and provision shall also be made for paying all fees and expenses for the payment, then and in that case the Bonds or such designated portion thereof shall no longer be deemed outstanding or secured by this Ordinance. SECTION 10. Additional Bonds. The City reserves the right to issue additional bonds and to incur lease obligations (which for all purposes of this Ordinance shall be deemed to be required bond payments which mature on the date such lease - rental payment obligations are due) after the issuance of the Bonds, payable out of the EDIT Revenues and earnings thereon on parity with the Prior Bonds and the Bonds, and such future bonds and lease obligations are herein referred to as "Additional Bonds," or bonds which are junior and subordinate in right of payment to the Bonds (such bonds and lease obligations are herein referred to as "Junior Bonds ") 0 (the Prior Bonds, the Bonds, the Additional Bonds, and the Junior Bonds collectively, the "EDIT Bonds ") for the purpose of raising money for future economic development or to provide for a complete or partial refunding of such obligations. The issuance or incurrence of obligations pursuant to Additional Bonds and Junior Bonds shall be subject to the following conditions precedent: (a) All interest and principal payments with respect to all EDIT Bonds shall be current to date in accordance with the terms thereof with no payment in arrears, provided, this condition shall be satisfied if any required amount is to be provided from the proceeds of such Additional Bonds or Junior Bonds or other funds available to the City. (b) The balance in the Reserve Account shall be equal to the amounts required with respect to the outstanding EDIT Bonds, if any, provided, this condition shall be satisfied if any required amount is to be provided from the proceeds of such Additional Bonds or Junior Bonds or other funds available to the City. (c) In the case of a proposed issue of Additional Bonds, the City shall have received a certificate prepared by an independent certified public accountant or an independent financial consultant with professional experience in the business of estimating the levels of and increases in assessed valuation in the State of Indiana and the expected changes in property tax rates caused by such changes (the "Certifier "), certifying that the EDIT Revenues estimated to be received in each succeeding year, together with estimated other available revenues (as defined below), is at least equal to 125% of the principal and interest requirements on all outstanding Prior Bonds and Bonds, any outstanding Additional Bonds, and the proposed issue of Additional Bonds, for each respective year during the term of such outstanding Bonds, and outstanding Additional Bonds and the proposed Additional Bonds. In estimating the EDIT Revenues and other available revenues to be received in any future year, the Certifier shall base his calculation on estimates, believed by the Certifier to be reasonable, including without limitation estimates of investment earnings. For purposes of this paragraph, "Other Available Revenues" shall mean, to the extent such amounts have been set aside and designated for such purpose, amounts held in any debt service reserve accounts for outstanding Prior Bonds, Bonds and Additional Bonds, other than the proposed Additional Bonds. (d) The principal of the proposed Additional Bonds or Junior Bonds shall be payable on the same dates as the principal of the Bonds and the interest thereon shall be payable on February 1 and August 1, during the periods such principal and interest are payable. The City shall approve and confirm the findings and estimates set forth in the above - described certificate of a Certifier in any ordinance authorizing the issuance of the Additional Bonds or Junior Bonds, and such certificate shall be 10 updated by the Certifier as of the date of issuance of the Additional Bonds or Junior Bonds. In the event the Additional Bonds are issued to refund currently outstanding Bonds or Additional Bonds, and each payment of principal and interest on the Additional Bonds is equal to or lesser than the amount due on the bonds being refunded, the certificate required by paragraph (c) above shall not be required. SECTION 11. Amendments. Subject to the terms and provisions contained in this section, and not otherwise, the owners of not less than sixty -six and two -thirds percent (66 -2/3 %) in aggregate principal amount of the Bonds then outstanding shall have the right, from time to time, to consent to and approve the adoption by the Council of such ordinance or ordinances supplemental hereto as shall be deemed necessary or desirable by the City for the purpose of amending in any particular any of the terms or provisions contained in this Ordinance, or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting: (a) An extension of the maturity of the principal of or interest or premium, if any, on any Bond or an advancement of the earliest redemption date on any Bond, without the consent of the holder of each Bond so affected; or (b) a reduction in the principal amount of any Bond or the redemption premium or rate of interest thereon, or a change in the monetary medium in which such amounts are payable, without the consent of the holder of each Bond so affected; or (c) a preference or priority of any Bond over any other Bond, without the consent of the holders of all Bonds then outstanding; or (d) a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental ordinance, without the consent of the holders of all Bonds then outstanding. If the City shall desire to obtain any such consent, it shall cause the Registrar to mail a notice, postage prepaid, to the addresses appearing on the Registration Record. Such notice shall briefly set forth the nature of the proposed supplemental ordinance and shall state that a copy thereof is on file at the office of the Registrar for inspection by all owners of the Bonds. The Registrar shall not, however, be subject to any liability to any owners of the Bonds by reason of its failure to mail such notice, and any such failure shall not affect the validity of such supplemental ordinance when consented to and approved as herein provided. Whenever at any time within one year after the date of the mailing of such notice, the City shall receive any instrument or instruments purporting to be executed by the owners of the Bonds of not less than sixty -six and two- thirds per cent (66 -2/3 %) in aggregate principal amount of the Bonds then outstanding, 11 which instrument or instruments shall refer to the proposed supplemental ordinance described in such notice, and shall specifically consent to and approve the adoption thereof in substantially the form of the copy thereof referred to in such notice as on file with the Registrar, thereupon, but not otherwise, the Council may adopt such supplemental ordinance in substantially such form, without liability or responsibility to any owners of the Bonds, whether or not such owners shall have consented thereto. No owner of any Bond shall have any right to object to the adoption of such supplemental ordinance or to object to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin or restrain the City or its officers from adopting the same, or from taking any action pursuant to the provisions thereof. Upon the adoption of any supplemental ordinance pursuant to the provisions of this section, this Ordinance shall be, and shall be deemed, modified and amended in accordance therewith, and the respective rights, duties and obligations under this Ordinance of the City and all owners of Bonds then outstanding shall thereafter be determined, exercised and enforced in accordance with this Ordinance, subject in all respects to such modifications and amendments. Notwithstanding anything contained in the foregoing provisions of this Ordinance, the rights, duties and obligations of the City and of the owners of the Bonds, and the terms and provisions of the Bonds and this Ordinance, or any supplemental ordinance, may be modified or amended in any respect with the consent of the City and the consent of the owners of all the Bonds then outstanding. Without notice to or consent of the owners of the Bonds, the City may, from time to time and at any time, adopt such ordinances supplemental hereto as shall not be inconsistent with the terms and provisions hereof (which supplemental ordinances shall thereafter form a part hereof), (a) To cure any ambiguity or formal defect or omission in this Ordinance or in any supplemental ordinance; or (b) To grant to or confer upon the owners of the Bonds any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners of the Bonds; or (c) To procure a rating on the Bonds from a nationally recognized securities rating agency designated in such supplemental ordinance, if such supplemental ordinance will not adversely affect the owners of the Bonds; or 12 (d) To obtain or maintain bond insurance with respect to the Bonds; or (e) To provide for the refunding or advance of the Bonds; or (f) To make any other change which, in the determination of the City in its sole discretion, is not to the prejudice of the owners of the Bonds. SECTION 12. Investment of Funds. The Controller is hereby authorized to invest moneys pursuant Indiana law, including Indiana Code 5- 1 -14 -3, and the provisions of this Ordinance. The Controller shall keep full and accurate records of investment earnings and income from moneys held in the funds and accounts created or referenced herein. In order to comply with the provisions of this Ordinance, the Controller is hereby authorized and directed to employ consultants or attorneys from time to time to advise the City as to requirements of state and federal law. SECTION 13. Continuing Disclosure. In order for the Purchaser of the Bonds to comply with the SEC Rule, if applicable, the Mayor and Controller of the City may execute and deliver an agreement by the City to comply with the requirements of a continuing disclosure undertaking by the City pursuant to subsection (b) (5) of the SEC Rule, and any amendments thereto from time to time (the "Continuing Disclosure Agreement'). The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Agreement. The substantially final form of Continuing Disclosure Agreement submitted to the Council with this ordinance is incorporated herein by reference and is hereby approved and the Mayor and /or Controller of the City are authorized to execute the same and to approve such changes in form or substance thereto which are consistent with the terms of this Ordinance, such changes to be conclusively evidenced by the execution thereof. SECTION 14. Other Action. The Mayor and/or the Controller may take such other actions to finalize and deliver such other certificates and documents needed to accomplish the transaction contemplated hereby as they deem necessary or desirable in connection therewith. SECTION 15. No Conflict. All ordinances and orders or parts thereof in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed. After the issuance of the Bonds and so long as any of the Bonds or interest or premium, if any, thereon remains unpaid, except as expressly provided herein, this Ordinance shall not be repealed or amended in any respect which will adversely affect the rights of the holders of the Bonds, nor shall the City adopt any law or ordinance which in any way adversely affects the rights of such holders. SECTION 16. Severabilitv. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. 13 SECTION 18. Non - Business Days. If the date of making any payment or the last date for performance of any act or the exercising of any right, as provided in this Ordinance, shall be a legal holiday or a day on which banking institutions in the City or the jurisdiction in which the Registrar or Paying Agent is located are typically closed, such payment may be made or act performed or right exercised on the next succeeding day not a legal holiday or a day on which such banking institutions are typically closed, with the same force and effect as if done on the nominal date provided in this Ordinance, and no interest shall accrue for the period after such nominal date. SECTION 19. Interpretation. Unless the context or law clearly requires otherwise, references herein to statutes or other laws include the same as modified, supplemented or superseded from time to time. (THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK) 14 SECTION 20. Effectiveness. This Ordinance shall be in full force and effect from and after its passage. Member, South Bend Common Council ATTEST: John Voorde, City Clerk Presented by me to the Mayor of the City of South Bend, Indiana this day of , 2015, at o'clock m. John Voorde, City Clerk Approved by me, Mayor of the City of South Bend, Indiana, this day of 2015, at o'clock .m. Peter Buttigieg, Mayor ATTEST: John Voorde, Clerk A 1 ti P.E1 tv PUELIC FIEAR;NG 3rd READING NOT APPROVED REFERRED PASSED 15 Filed in Cfaa k's Office I JAN -7 ?0155 CITY CLER t, SL 1'i H JLND, IN EXHIBIT A Project The Project includes: Parks and Recreation System -wide upgrades focused on deferred maintenance Parks and Recreation System -wide facilities upgrades A -1 EXHIBIT B Form of Bond R- [Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation ( "DTC "), to the City of South Bend, Indiana or its agent for registration of transfer, exchange or payment, and any Bond (as hereinafter defined) issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.] UNITED STATES OF AMERICA STATE OF INDIANA COUNTY OF ST. JOSEPH CITY OF SOUTH BEND, INDIANA ECONOMIC DEVELOPMENT INCOME TAX REVENUE BOND OF 2015 Interest Rate Maturity Date Original Date Authentication Date REGISTERED OWNER: PRINCIPAL SUM: Dollars ($ CUSIP The City of South Bend, Indiana (the "City"), for value received, hereby promises to pay to the Registered Owner set forth above, the Principal Sum set forth above on the Maturity Date set forth above (unless this bond is subject to and is called for redemption prior to maturity as hereafter provided), and to pay interest thereon until the Principal Sum shall be fully paid at the Interest Rate per annum specified above from the interest payment date to which interest has been paid next preceding the Authentication Date of this bond unless this bond is authenticated after the fifteenth day of the month preceding the interest payment date (the "Record Date ") and on or before such interest payment date in which case it shall bear interest from such interest payment date, or unless this bond is authenticated on or before July 15, 2015 in which case it shall bear interest from the Original Date, which interest is payable semi - annually on February 1 and August 1 of each year, beginning on August 1, 2015. Interest shall be calculated on the basis of a 360 -day year comprised of twelve 30 -day months. HSI The principal of and premium, if any, on this bond are payable at the principal office of (the "Registrar" or "Paying Agent "), in , Indiana. All payments of interest on this bond shall be paid by check mailed one business day prior to the interest payment date to the Registered Owner as of the Record Date at the address as it appears on the registration books kept by the Registrar or at such other address as is provided to the Paying Agent in writing by the Registered Owner. Each Registered Owner of $1,000,000 or more in principal amount of bonds shall be entitled to receive interest payments by wire transfer by providing written wire instructions to the Paying Agent before the Record Date for any payment. All payments of principal of and premium, if any, on this bond shall be made upon surrender thereof at the principal office of the Paying Agent in any U. S. coin or currency which on the date of such payment shall be legal tender for the payment of public and private debts, or in the case of a Registered Owner of $1,000,000 or more in principal amount of Bonds, by wire transfer on the due date upon written direction of such owner provided at least fifteen (15) days prior to the maturity date or redemption date. This Bond is one of an authorized issue of bonds of the City of like original date, tenor and effect, except as to denomination, numbering, interest rates, redemption terms and dates of maturity, in the total amount of Five Million Six Hundred Eighty Thousand Dollars ($5,680,000), numbered consecutively from R -1 upward, issued for the purpose of providing funds for various capital improvements and expansions at the City's parks and park facilities, to fund a reserve fund, if necessary, and for the purpose of paying incidental expenses to be incurred in connection therewith and on account of the sale and issuance of bonds therefor, as authorized by Ordinance No. (the "Ordinance ") adopted by the Common Council of the City of South Bend, Indiana (the "Council ") on the day of , 2015, entitled "An Ordinance of the Common Council of the City of South Bend, Indiana Authorizing the issuance of Bonds by the City of South Bend, Indiana Titled Economic Development Income Tax Bonds of 2015; and Other Matters Connected Therewith, Including the Payment of Incidental Expenses on Account of the Issuance of the Bonds; and Repealing Ordinances Inconsistent Herewith ", and in accordance with the provisions of Indiana law, including without limitation Indiana Code 6 -3.5 -7 and other applicable laws, as amended (collectively, the "Act "), all as more particularly described in the Ordinance. The owner of this bond, by the acceptance hereof, agrees to all the terms and provisions contained in the Ordinance and the Act. Pursuant to the provisions of the Act and said Ordinance, the principal of and interest on this bond and all other bonds of said issue are payable from economic development income tax revenues ( "EDIT Revenues "), and to the extent it is insufficient, any other sources of funds legally available to the Council for such purpose. THIS BOND DOES NOT CONSTITUTE A GENERAL OBLIGATION OR INDEBTEDNESS OF THE CITY OF SOUTH BEND, INDIANA. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY OF SOUTH BEND, INDIANA IS PLEDGED TO PAY THE INTEREST OR PREMIUM ON OR THE PRINCIPAL OF THIS BOND. The bonds of this issue maturing after , are redeemable at the option of the City on thirty (30) days' notice, in whole or in part, in any order of maturities selected by the City and by lot within a maturity, at 100% of face value, plus accrued interest to the date fixed M for redemption. Each minimum authorized denomination in principal amount shall be considered a separate bond for purposes of partial redemption. Notice of such redemption shall be mailed by first -class mail not more than sixty (60) days and not less than thirty (30) days prior to the date fixed for redemption to the address of the registered owner of each bond to be redeemed as shown on the registration record of the City except to the extent such redemption notice is waived by owners of the bond or bonds redeemed; provided, however, that failure to give such notice by mailing, or any defect therein, with respect to any bond shall not affect the validity of any proceedings for the redemption of any other bonds. The notice shall specify the date and place of redemption, the redemption price and the CUSIP numbers, if applicable, of the bonds called for redemption. The place of redemption may be determined by the City. Interest on the bonds so called for redemption shall cease on the redemption date fixed in such notice if sufficient funds are available at the place of redemption to pay the redemption price on the date so named, and thereafter, such bonds shall no longer be protected by the Ordinance and shall not be deemed to be outstanding thereunder. This bond is subject to defeasance prior to payment or redemption as provided in the Ordinance. If this bond shall not be presented for payment or redemption on the date fixed therefor, the City may deposit in trust with the Paying Agent or another paying agent, an amount sufficient to pay such bond or the redemption price, as the case may be, and thereafter the Registered Owner shall look only to the funds so deposited in trust for payment and the City shall have no further obligation or liability in respect thereto. This bond is transferable or exchangeable only upon the registration record kept for that purpose at the office of the Registrar by the Registered Owner in person, or by the Registered Owner's attorney duly authorized in writing, upon surrender of this bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the Registered Owner or such attorney, and thereupon a new fully registered bond or bonds in the same aggregate principal amount, and of the same maturity, shall be executed and delivered in the name of the transferee or transferees or the Registered Owner, as the case may be, in exchange therefor. The City, any registrar and any paying agent for this bond may treat and consider the person in whose name this bond is registered as the absolute owner hereof for all purposes including for the purpose of receiving payment of, or on account of, the principal hereof and interest and premium, if any, due hereon. The bonds maturing on any maturity date are issuable only in the denomination of $5,000 or any integral multiple in excess thereof. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the execution, issuance and delivery of this bond have been done and performed in regular and due form as provided by law. This bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been executed by an authorized representative of the Registrar. IN WITNESS WHEREOF, the City of South Bend, Indiana, has caused this bond to be executed in the name of such City, by the manual or facsimile signature of the Mayor, and attested by manual or facsimile signature by the Controller of said City, and the seal of said City or a facsimile thereof to be affixed, engraved, imprinted or otherwise reproduced hereon. (SEAL) ATTEST: John Murphy, Controller CITY OF SOUTH BEND, INDIANA Peter Buttigieg, Mayor It is hereby certified that this bond is one of the bonds described in the within - mentioned Ordinance duly authenticated by the Registrar. As Registrar :S Authorized Representative The following abbreviations, when used in the inscription on the face of this bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN. COM. as tenants in common TEN. ENT. as tenants by the entireties JT. TEN. as joint tenants with right of survivorship and not as tenants in common UNIF. TRANS. MIN. ACT (Minor) Custodian (Cust.) under Uniform Transfers to Minors Act of ., (State) Additional abbreviations may also be used although not in the above list. FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please Print or Typewrite Name and Address and Social Security or Other Identifying Number) $ principal amount (must be a multiple of $ ) of the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints , attorney to transfer the within bond on the books kept for the registration thereof with full power of substitution in the premises. Signature Guaranteed: NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within bond in every particular, without alteration or enlargement or any change whatsoever. NOTICE: Signature(s) must be guaranteed by an eligible guarantor institution participating in a Securities Transfer Association recognized signature guarantee program. S 120ON CouNn -Crn BuILDING 227 W. JEFFERSON BLVD. SOUTH BEND, INDIANA 46601 -1830 C.iTY OF SOUTH BEND PETE BUTTIGIEG, MAYOR PxoNE574 /235 -9216 FAx 5741235 -9928 DEPARTMENT OF ADMINISTRATION AND FINANCE January 7, 2015 HAND DELIVERED Mr. Tim Scott President City of South Bend Common Council 227 W. Jefferson Boulevard, 4th Floor South Bend, Indiana 46601 City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 Dear Mr. Scott: Enclosed you will find the Bond Ordinance for the above referenced bonds to be submitted to the Connnon Council for first reading at its January 12, 2015 meeting. In addition, preliminary drafts of other documents related to this transaction are also enclosed for the Council's reference, including the Bond Purchase Agreement, Preliminary Official Statement, Continuing Disclosure Undertaking Agreement, and Notice of Intent to Sell Bonds. We hope for final reading and a vote on the Bond Ordinance at the Council's January 26, 2015 meeting, and finalized versions of the accompanying documents will be provided to you by January 21 to be available to the Council at that meeting. Sincerely, Jo H. Murphy Controller Enclosures 0127802.0622110 4852- 3846- 3265v1 office "S1 C n CITY'� CITY OF SOUTH BEND, INDIANA $[ 1 ECONOMIC DEVELOPMENT INCOME TAX BONDS OF 2015 BOND PURCHASE AGREEMENT March _, 2015 City of South Bend, Indiana 227 West Jefferson Blvd. South Bend, Indiana 46601 Ladies and Gentlemen: The undersigned, [ 1 ( "Purchaser "), hereby offers to enter into this Bond Purchase Agreement ( "Purchase Agreement ") with the City of South Bend, Indiana ( "Issuer "), relating to the Issuer's $[_ Economic Development Income Tax Bonds of 2015 ( "Bonds "). The Bonds are authorized in accordance with Ordinance No. adopted by the Common Council of the Issuer on January 26, 2015 ( "Ordinance "). The Issuer will use the proceeds of the Bonds for the purpose of paying costs of various capital improvements and expansions to the Issuer's parks and park facilities and to pay for all costs related to the issuance of the Bonds. 1. Bond Sale and Closing. Subject to the terms and conditions and in reliance upon the representations and covenants set forth herein, the Purchaser hereby agrees to purchase all (but not less than all) of the Bonds. The Bonds shall be dated March _, 2015, and shall accrue interest at the rate per annum shown in Exhibit A (attached hereto) from the Closing Date (as hereinafter defined), and shall mature on February I and August 1 in the years and in such amounts as set forth in Exhibit A and made a part hereof. The purchase price for the Bonds shall be [the par value thereofl. The delivery of and payment for the Bonds shall take place at the closing, to occur at the offices of Frost Brown Todd LLC, Indianapolis, Indiana, on March _ 2015, or at such other date, place or time as may be designated by the Issuer and the Purchaser ( "Closing Date "). The Purchaser will accept delivery of the Bonds and shall arrange for the purchase price of the Bonds to be paid as set forth herein by wire transfer in immediately available funds to an account specified by the Issuer. 2. Representations and Covenants of the Issuer. The Issuer represents and warrants to the Purchaser that: (a) It is authorized by law to enter into this Purchase Agreement and the other documents referred to herein and to perform all of its obligations to consummate the transactions contemplated hereby and thereby; (b) The Issuer agrees that it shall take all necessary action to authorize the execution and delivery of, and shall execute and deliver the Bonds and any and all other agreements, certificates, and documents as may be required to consummate the transactions contemplated hereby; (c) This Purchase Agreement, the Ordinance and the Bonds do not and will not conflict with or create a breach or default under any existing law, regulation, order or agreement to which the Issuer is subject or by which it is bound; (d) No governmental approval or authorization, other than the Ordinance, is required in connection with the sale of the Bonds to the Purchaser; (e) This Purchase Agreement and the Bonds will be at the time of the Closing Date, the legal, valid and binding obligations of the Issuer enforceable in accordance with their respective terms, subject only to applicable bankruptcy, insolvency or other similar laws generally affecting creditors' rights and subject to the exercise of judicial discretion; and (f) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, pending or, to the knowledge of the Issuer, threatened against or affecting the Issuer or affecting the existence of the Issuer, the titles of its officers to their respective offices or the boundaries of the Issuer, or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or in any way contesting or affecting the transactions contemplated hereby or the validity or enforceability of the Bonds, the Ordinance or this Purchase Agreement or contesting the powers of the Issuer or any authority for the issuance of the Bonds, the adoption of the Ordinance or the execution and the delivery of this Purchase Agreement. 3. Representations of the Purchaser. The Purchaser hereby represents, warrants, covenants, and agrees as follows: (a) The Purchase Agreement has been duly authorized and is binding upon the Purchaser in accordance with its terns. (b) The Purchaser understands that the Bonds are payable solely from the sources provided in the Ordinance on panty with the Parity Bonds and Additional Bonds (as each are defined in the Ordinance). (c) The Purchaser understands that the Bonds will not be designated by the Issuer as a "qualified tax exempt obligation" under Section 265(b) of the Internal Revenue Code. (d) The Purchaser has had the opportunity to ask for and has received such information as it deems necessary in connection with the investment in the Bonds. Prior to the purchase of the Bonds, the Purchaser has been provided with the opportunity to ask questions of and receive answers from the representatives of the Issuer concerning the terms and conditions of the Bonds, the tax status of the Bonds, the financial condition of the Issuer, legal opinions and enforceability of remedies, the security therefor, and to obtain any additional information needed in order to verify the accuracy of the information obtained to the extent that the Issuer possesses such information or can acquire it without unreasonable effort or expense. The Purchaser is not relying on the Issuer's counsel, Frost Brown Todd LLC, for information concerning the financial status of the Issuer or the ability of the Issuer to honor its financial obligations or other covenants under the Bonds or the Ordinance. -2- (e) The Purchaser has knowledge and experience in financial matters, and is capable of evaluating the merits and risks of investment in the Bonds. (f) The Purchaser understands that the Bonds have not been registered under the Securities Act of 1933, as amended, and that such registration is not legally required. (g) The Bonds and any participation therein may only be reoffered, sold, assigned, transferred, pledged, encumbered, or otherwise disposed of in accordance with applicable laws. The Purchaser recognizes that the opinions it has received express the professional judgment of the attorneys participating in the transaction as to the legal issues addressed herein. The Purchaser also recognizes that by rendering such opinions, the attorneys do not become insurers or guarantors of that expression of professional judgment, of the transaction opined upon, or of the future performance of parties to such transaction. Nor does the rendering of the opinions guarantee the outcome of any legal dispute that may arise out of the transaction. 4. Conditions of Purchaser's Obligations. (a) The obligations of the Purchaser hereunder shall be subject to: (i) The performance by the Issuer of its obligations to be performed hereunder at and prior to the Closing Date; (ii) The accuracy of the warranties and representations of the Issuer; and (iii) Delivery to the Purchaser of executed counterparts (unless otherwise noted) of the following documents in such number as shall be reasonably required and in form and substance satisfactory to the Purchaser: (a) A certified copy of the Ordinance; (b) The Bonds, without coupons, dated the date of issuance in the form of a separate, single, certificated, fully registered Bond in the name of the Purchaser; (c) The unqualified approving opinion of Frost Brown Todd LLC, Bond Counsel, dated the Closing Date; (d) Such additional legal opinions, bonds, proceedings, and such other documents as Bond Counsel or the Purchaser may reasonably request to evidence compliance by the Issuer with legal requirements, the truth and accuracy of their representations herein, and the due performance or satisfaction by the Issuer at or prior to the Closing Date of all agreements then to be performed and all conditions then to be satisfied by the Issuer; and 5. Termination. The Purchase Agreement shall be terminated and the Issuer shall not be obligated to sell and deliver, and the Purchaser shall not be obligated to purchase, the Bonds on the Closing Date if between the date hereof and the Closing Date: -3- (i) there shall have occurred any new outbreak of hostilities or any new national or international calamity or crisis, including a financial crisis, the effect of which on the financial markets of the United States of America being such as would in the reasonable judgment of the Purchaser materially adversely affect the market price of the Bonds; (ii) there shall be in force a general suspension of trading on the New York Stock Exchange or a general banking moratorium shall have been declared by Federal, Indiana or New York authorities, the effect of which would, in the reasonable judgment of the Purchaser, materially adversely affect the offering prices of the Bonds; (iii) a material adverse change in the financial condition or general affairs of the Issuer shall occur; or (iv) an event, court decision, proposed law or rule that may have the effect of changing the federal income tax incidents of the Bonds or the contemplated transactions shall occur. 6. Survival of Representations. Warranties and Agreements. All representations, warranties, and agreements of the Issuer and the Purchaser shall remain in full force and effect regardless of any investigations made by or on behalf of the Purchaser and shall survive the Closing Date. 7. Execution in Counterparts. Counterparts of this executed Purchase Agreement shall constitute one and the same instrument. 8. Notices. Any notice or other communication to be given to the Issuer shall be given by delivering the same in writing to the Controller of the Issuer at the address set forth above, and any notice or other communication to be given to the Purchaser shall be given in writing to 9. Parties in Interest. This Purchase Agreement is made solely for the benefit of the parties hereto and no other person, including any future holder of the Bonds, shall acquire or have any right hereunder or by virtue hereof. M The approval and acceptance of this offer to purchase the herein described Bonds by the Issuer, as evidenced by the execution of the acceptance clause below, shall cause this document to constitute a contract for the sale by the Issuer and the purchase by the Purchaser of such Bonds, subject to and in accordance with the terms and conditions herein outlined and established. Respectfully submitted, [Purchaser] By: Name: Title: [Signature Page to the Bond Purchase Agreement.] 52 Accepted by City of South Bend, Indiana, this _ day of March, 2015. CITY OF SOUTH BEND, INDIANA M ATTEST: John Murphy, Controller Pete Buttigieg, Mayor [Signature Page to the Bond Purchase Agreement.] .T.'1 EXHIBIT A CITY OF SOUTH BEND, INDIANA ECONOMIC DEVELOPMENT INCOME TAX BONDS OF 2015 0127802.0622110 4831 - 7218- 7936v3 CITY OF SOUTH BEND, INDIANA $� 1 ECONOMIC DEVELOPMENT INCOME TAX BONDS OF 2015 CONTINUING DISCLOSURE UNDERTAKING AGREEMENT This CONTINUING DISCLOSURE UNDERTAKING AGREEMENT (the "Agreement ") is executed and delivered by CITY OF SOUTH BEND, INDIANA (the "Obligor "), in connection with the issuance by the Obligor of its Economic Development Income Tax Bonds of 2015, in the aggregate principal amount of $ (the "Bonds "). The Bonds are being issued pursuant to Indiana Code 6- 3.5 -7, as amended, and Ordinance No. , adopted by the Common Council of the Obligor (the "Ordinance "). Pursuant to the Ordinance, the Bonds will be secured by the Economic Development Income Tax revenues of the Obligor on parity with other obligations of the Obligor payable therefrom. The Obligor covenants and agrees as follows: Section 1. Purpose of the Agreement. a. This Agreement is being executed and delivered by the Obligor for the benefit of the holders of the Bonds and the Beneficial Owners, if any, (collectively, the "Bondholders "), and in order to assist the Participating Underwriter, if any, in complying with subsection (b)(5) of the Rule. b. In consideration of the purchase and acceptance of any and all of the Bonds by those who shall hold the same or shall own beneficial ownership interests therein from time to time, this Agreement shall be deemed to be and shall constitute a contract between the Obligor and the Bondholders from time to time, and the covenants and agreements herein set forth to be performed on behalf of the Obligor shall be for the benefit of the Bondholders of any and all of the Bonds. Section 2. Definitions. In addition to the definitions set forth in the Ordinance, which apply to any capitalized term used in this Agreement unless otherwise defined herein, the following capitalized terms shall have the following meanings. "Annual Disclosure" shall mean any annual information (whether financial or operating) provided by the Obligor pursuant to, and as described in, Section 3 and 4 of this Agreement. "Beneficial Owner" shall mean any person which has or shares the power, directly or indirectly, to make investment decisions concerning ownership of any Bonds (including any person holding Bonds through nominees, depositories or other intermediaries). "Dissemination Agent" shall mean the Obligor, or any successor Dissemination Agent appointed in writing by the Obligor and which has filed with the Obligor a written acceptance of such appointment. "EMMA" means the Electronic Municipal Market Access system at www.emma.msrb.org created and operated by the MSRB. "GAAP" shall mean generally accepted accounting principles, as such principles are prescribed, in part, by the Financial Accounting Standards Board and modified by the Governmental Accounting Standards Board and in effect from time to time. "Listed Events" shall mean any of the events listed in Section 5(a) and (b) of this Agreement. "MSRB" shall mean the Municipal Securities Rulemaking Board established in accordance with the provisions of Section 1513(b)(1) of the 1934 Act. "1934 Act" shall mean, the Securities Exchange Act of 1934, as amended. "Official Statement" shall mean the Official Statement for the Bonds dated [ "Participating Underwriter" shall mean "Rule" shall mean Rule 15c2 -12 (17 CFR Part 240, §240.15c2 -12) promulgated by the SEC pursuant to the 1934 Act, as the same may be amended from time to time, together with all interpretive guidances or other official interpretations or explanations thereof that are promulgated by the SEC. "SEC" shall mean the United States Securities and Exchange Commission. "Securities Counsel" shall mean legal counsel expert in federal securities law. "State" shall mean the State of Indiana. Section 3. Provision of Annual Disclosure. a. Each year, the Obligor shall provide, or shall cause the Dissemination Agent to provide, not later than the date six months after the first day of the Obligor's fiscal year, (commencing with the Obligor's Annual Financial Report and operating data for its fiscal year ended December 31, 2015) to the MSRB through EMMA its Annual Disclosure for the preceding fiscal year which is consistent with the requirements of Section 4 of this Agreement. Not later than five business days (or such lesser number of days as is acceptable to the Dissemination Agent) prior to said date, the Obligor shall provide the Annual Disclosure to the Dissemination Agent (if other than the Obligor). Currently, the Obligor's fiscal year commences on January 1. In each case, the Annual Disclosure may be submitted as a single document or as separate documents comprising a package, and may include by specific reference other information as provided in Section 4 of this Agreement: provided, however, that if the audited financial statements of the Obligor are not available by the deadline for filing the Annual Disclosure, unaudited financial statements in a format similar to the audited financial statements then most recently prepared for the Obligor or in the form provided by the State on an annual 4 basis shall be included in the Annual Disclosure and the audited financial statements shall be provided within 60 days of the date such audited financials become available. b. If the Obligor is unable to provide an Annual Disclosure by the date required in subsection (a), the Obligor shall send a notice, in a timely manner, to the MSRB through EMMA, in substantially the form attached as Exhibit A. C. If the Obligor's fiscal year changes, the Obligor shall send notice of such change to the MSRB through EMMA, in substantially the form attached as Exhibit B. d. Whenever any Annual Disclosure or portion thereof is filed as described above, it shall include a cover sheet in substantially the form attached as Exhibit C. e. The Dissemination Agent shall, if the Dissemination Agent is other than the Obligor, file a report with the Obligor certifying that the Annual Disclosure has been provided pursuant to this Agreement, stating the date it was provided. f. In connection with providing the Annual Disclosure, the Dissemination Agent (if other than the Obligor) is not obligated or responsible under this Agreement to determine the sufficiency of the content of the Annual Disclosure for purposes of the Rule or any other state or federal securities law, rule, regulation or administrative order. Section 4. Content of Annual Disclosure. The Obligor's Annual Disclosure shall contain or include by reference the following: a. the audited financial statements of the Obligor for its fiscal year or two fiscal years, as may be required by State law, immediately preceding the due date of the Annual Disclosure and shall include (i) the Audit or Examination Report of the Obligor as prepared and examined by the Indiana State Board of Accounts for such period, together with the opinion of such accountants and all notes thereto and (ii) unaudited financial information of the Obligor, if information in (i) is not available. Such financial statements, however, shall not be included if State law does not require the Obligor to prepare such statements for its immediately preceding fiscal year by the due date of the Annual Disclosure for such fiscal year. The Obligor's financial statements shall be audited and prepared in accordance with GAAP with such changes as may be required from time to time in accordance with State law or shall be audited (only if required by State law) and, prepared in accordance with State law. b. An update of the financial information and operating data relating to the Obligor of the same nature as that contained in Appendix B of the Official Statement under the headings "Direct Debt Issuance Limitation," "Total Tax Rates," "Net Assessed Valuation," "Property Taxes Levied and Collected," and "Ten Largest Taxpayers." Any or all of the items listed above may be included by specific reference to other documents that previously have been provided to each of the depositories or filed with the SEC. Notwithstanding the foregoing, if the document included by reference is a final official 3 statement, it need only be available from this MSRB. The Obligor shall clearly identify each such other document so included by reference. Section 5. Reporting of Events. a. The Obligor shall disclose the following events to the MSRB through EMMA, within 10 business days of the occurrence of any of the following events, if material (which determination of materiality shall be made by the Obligor in accordance with the standards established by federal securities laws): (1) non - payment related defaults; (2) modifications to rights of Bondholders; (3) bond calls; (4) release, substitution or sale of property securing repayment of the Bonds; (5) the consummation of a merger, consolidation, or acquisition, or certain asset sales, involving the Obligor, or entry into or termination of a definitive agreement relating to the foregoing; (6) appointment of a successor or additional trustee or the change of name of a trustee; and (7) notices or determinations with respect to the tax status of the Bonds or other events affecting the status of the Bonds. The disclosure may be accompanied by a certificate of an authorized representative of the Obligor in the form of Exhibit D attached hereto. b. The Obligor shall disclose the following events to the MSRB through EMMA, within 10 business days of the occurrence of any of the following events, regardless of materiality: (1) principal and interest payment delinquencies; (2) unscheduled draws on debt service reserves reflecting financial difficulties; (3) unscheduled draws on credit enhancements reflecting financial difficulties; (4) substitution of credit or liquidity providers, or their failure to perform; (5) defeasances; (6) rating changes; (7) adverse tax opinions, the issuance by the IRS of proposed or final determinations of taxability, or Notices of Proposed Issue (IRS Form 5701 -TEB); (8) tender offers; and (9) bankruptcy, insolvency, receivership or similar event of the Obligor. The disclosure may be accompanied by a certificate of an authorized representative of the Obligor in the form of Exhibit D attached hereto. C. If the Obligor determines that the occurrence of a Listed Event must be filed as set forth above, the Obligor shall promptly cause a notice of such occurrence to be filed with the MSRB through EMMA, together with a cover sheet in substantially the form attached as Exhibit C. In connection with providing a notice of the occurrence of a Listed Event described above in 11 subsection (b)(5), the Obligor shall include in the notice explicit disclosure as to whether the Bonds have been escrowed to maturity or escrowed to call, as well as appropriate disclosure of the timing of maturity or call. d. In connection with providing a notice of the occurrence of a Listed Event, the Dissemination Agent (if other than the Obligor), solely in its capacity as such, is not obligated or responsible under this Agreement to determine the sufficiency of the content of the notice for purposes of the Rule or any other state or federal securities law, rule, regulation or administrative order. Section 6. Termination of Reporting Obligation. a. The Obligor's obligations under this Agreement shall terminate upon the legal defeasance, the prior redemption or the payment in full of all of the Bonds. b. This Agreement, or any provision hereof, shall be null and void in the event that the Obligor (i) receives an opinion of Securities Counsel, addressed to the Obligor, to the effect that those portions of the Rule, which require such provisions of this Agreement, do not or no longer apply to the Bonds, whether because such portions of the Rule are invalid, have been repealed, amended or modified, or are otherwise deemed to be inapplicable to the Bonds, as shall be specified in such opinion, and (ii) delivers notice to such effect to the MSRB through EMMA. Section 7. Dissemination Agent. The Obligor, from time to time, may appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Agreement and may discharge any such Agent, with or without appointing a successor Dissemination Agent. Except as otherwise provided in this Agreement, the Dissemination Agent (if other than Obligor) shall not be responsible in any manner for the content of any notice or report prepared by the Obligor pursuant to this Agreement. Section 8. Amendment; Waiver. a. Notwithstanding any other provisions of this Agreement, this Agreement may be amended, and any provision of this Agreement may be waived, provided that the following conditions are satisfied: (1) if the amendment or waiver relates to the provisions of Section 3(a), (b), (c), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, a change in law or a change in the identity, nature or status of the Obligor, or type of business conducted by the Obligor or in connection with the Official Statement for the Bonds; (2) this Agreement, as so amended or taking into account such waiver, would, in the opinion of Securities Counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and 5 (3) the amendment, or waiver either (A) is approved by the Bondholders in the same manner as provided in the Ordinance for amendments to the Ordinance with the consent of the Bondholders, or (B) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Bondholders. b. In the event of any amendment to, or waiver of a provision of, this Agreement, the Obligor shall describe such amendment or waiver in the next Annual Disclosure and shall include an explanation of the reason for such amendment or waiver. In particular, if the amendment results in a change to the annual financial information required to be included in the Annual Disclosure pursuant to Section 4 of this Agreement, the first Annual Disclosure that contains the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of such change in the type of operating data or financial information being provided. Further, if the annual financial information required to be provided in the Annual Disclosure can no longer be generated because the operations to which it related has been materially changed or discontinued, a statement to that effect shall be included in the first Annual Disclosure that does not include such information. c. If the Amendment results in a change to the accounting principles to be followed in preparing financial statements as set forth in Section 4 of this Agreement, the Annual Disclosure for the year in which the change is made shall include a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of such differences and the impact of the changes on the presentation of the financial information. To the extent reasonably feasible, the comparison shall also be quantitative. A notice of the change in accounting principles shall be sent by the Obligor, or the Dissemination Agent (if other than the Obligor) at the written direction of the Obligor, to the MSRB through EMMA. Section 9. Additional Information. Nothing in this Agreement shall be deemed to prevent the Obligor from disseminating any other information, using the means of dissemination set forth in this Agreement or any other means of communication, or including any other information in any Annual Disclosure or notice of occurrence of a Listed Event, in addition to that which is required by this Agreement. If the Obligor chooses to include any information in any Annual Disclosure or notice of occurrence of a Listed Event in addition to that which is specifically required by this Agreement, the Obligor shall have no obligation under this Agreement to update such information or include it in any future Annual Disclosure or notice of occurrence of a Listed Event. Section 10. Failure to Comply. In the event of a failure of the Obligor or the Dissemination Agent (if other than the Obligor) to comply with any provision of this Agreement, any Bondholder may bring an action to obtain specific performance of the obligations of the Obligor or the Dissemination Agent (if other than the Obligor) under this Agreement, but no person or entity shall be entitled to recover monetary damages hereunder under any circumstances, and any failure to comply with the obligations under this Agreement shall not constitute a default with respect to the Bonds or under the Ordinance. Notwithstanding the foregoing, if the alleged failure of the Obligor to comply with this Agreement is the inadequacy 0 of the information disclosed pursuant hereto, then the Bondholders of not less than twenty percent (20 %) of the aggregate principal amount of the then outstanding Bonds must take the actions described above before the Obligor shall be compelled to perform with respect to the adequacy of such information disclosed pursuant to this Agreement. Section 11. Duties of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Agreement. Section 12. Beneficiaries. This Agreement shall inure solely to the benefit of the Obligor, the Dissemination Agent, the Participating Underwriter, if any, and the Bondholders and shall create no rights in any other person or entity. Section 13. Transmission of Information and Notices. Unless otherwise required by law or this Agreement, and, in the sole determination of the Obligor or the Dissemination Agent, as applicable, subject to technical and economic feasibility, the Obligor or the Dissemination Agent, as applicable, shall employ such methods of information and notice transmission as shall be requested or recommended by the herein - designated recipients of such information and notices. Section 14. Additional Disclosure Obligations. The Obligor acknowledges and understands that other State and federal laws, including, without limitation, the Securities Act of 1933, as amended, and Rule l Ob -5 promulgated by the SEC pursuant to the 1934 Act, may apply to the Obligor, and that under some circumstances, compliance with this Agreement, without additional disclosures or other action, may not fully discharge all duties and obligations of the Obligor under such laws. Section 15. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State, and any suits and actions arising out of this Agreement shall be instituted in a court of competent jurisdiction in the State. Notwithstanding the foregoing, to the extent this Agreement addresses matters of federal securities laws, including the Rule, this Agreement shall be construed and interpreted in accordance with such federal securities laws and official interpretations thereof. Section 16. Severability. If any portion of this Agreement is held or deemed to be, or is, invalid, illegal, inoperable or unenforceable, the validity, legality, operability or enforceability of the remaining portions of this Agreement shall not be affected, and this Agreement shall be construed as if it did not contain such invalid, illegal, inoperable or unenforceable portion. SIGNATURE PAGE TO FOLLOW 7 ATTEST: John Voorde, Clerk Dated: CITY OF SOUTH BEND, INDIANA Peter Buttigieg, Mayor Signature Page to Continuing Disclosure Undertaking Agreement Exhibit A NOTICE TO THE NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL DISCLOSURE Name of Obligor: City of South Bend, Indiana Name of Bond Issue: Economic Development Income Tax Revenue Bonds of 2015 Date of Bonds: NOTICE IS HEREBY GIVEN that the Obligor has not provided an Annual Disclosure with respect to the above -named Bonds as required by Section 3 of its Continuing Disclosure Undertaking Agreement with respect to the Bonds. The Obligor anticipates that the Annual Disclosure will be filed by Dated: 10 CITY OF SOUTH BEND, INDIANA Printed: Title: Exhibit B NOTICE TO THE NATIONAL REPOSITORY OF CHANGE IN OBLIGOR'S FISCAL YEAR Name of Obligor: City of South Bend, Indiana Name of Bond Issue: Economic Development Income Tax Revenue Bonds of 2015 Date of Bonds: NOTICE IS HEREBY GIVEN that the Obligor's fiscal year has changed. Previously the Obligor's fiscal year ended on December 31. It now ends on Dated: 11 CITY OF SOUTH BEND, INDIANA Printed: Title: Exhibit C [Cover sheet for Annual Disclosure] 12 Exhibit D [Certificate of Authorized Representative of Obligor accompanying the reporting of an event to MSRB] 0127802.0622110 4836-6010- 3968v3 13 OFFICIAL NOTICE OF INTENT TO SELL BONDS CITY OF SOUTH BEND, INDIANA ECONOMIC DEVELOPMENT INCOME TAX BONDS OF 2015 Upon not less than twenty -four (24) hours' notice given by telephone or otherwise as provided below, the undersigned Controller of the City of South Bend, Indiana ( "City ") will receive and consider bids for the purchase of the Bonds (herein defined). Any person interested in submitting a bid for the Bonds must furnish in writing the person's name, address, telephone number, and e-mail address to the undersigned Controller, c/o Crowe Horwath LLP, 10 West Market Street, Suite 2000, Indianapolis, IN 46204 -2975, (317) 269 -6696, or via e-mail to herschel.frierson @crowehorwath.com, on or before [11:00 a.m. (EST) on February 13, 20151. The undersigned Controller will notify (or cause to be notified) each person so registered of the date and time bids will be received not less than twenty -four (24) hours before the date and time of sale, and will supply each such person with a Preliminary Official Statement containing the terms of the proposed Bonds ( "Preliminary Official Statement "). The notification shall be made by e -mail. The sale is expected to take place on or about February 18, 2015. At the time designated for the sale, the Controller will receive and consider bids for the purchase of the Bonds of the City designated as "Economic Development Income Tax Bonds of 2015" (the "Bonds ") in an aggregate principal amount not to exceed $5,680,000. Bidders may bid an overall net discount not to exceed 1.0% of the par value of the Bonds. The Bonds will bear interest at a rate or rates not to exceed 6% per annum (the exact interest rate or rates will be determined by bidding). Each bid must be for all of the Bonds and must state the rate or rates of interest in multiples of 1/8, 1/20, or 1 /100 of 1 %. Any bids specifying one or more interest rates shall also specify the amount and maturities of the Bonds bearing each rate, but all Bonds maturing on the same date shall bear the same single interest rate. The rate on any maturity must be at least as great as the rate on any earlier maturity. The award will be made by the Controller to the bidder submitting the best bid that complies with the terms of sale and offers the lowest net interest cost to the City, to be determined by computing the total interest on all of the Bonds of such series from the date thereof to their maturities and deducting therefrom any premium bid, or adding thereto the amount of any discount. Although not a term of sale, it is requested that each bid show the net dollar interest cost to final maturity and the net effective average interest rate on the entire issue. No conditional bid or, pursuant to the overall net discount restriction set forth in the second paragraph hereof, bids for less than 99% of the par value of the Bonds will be considered. The right is reserved to reject any and all bids. In the event no satisfactory bids are received at the time of the sale, the Controller may continue the sale from day to day thereafter, without further advertisement for a period of thirty (30) days, pursuant to Indiana law. Interest will be payable semiannually on February 1 and August 1 of each year, beginning not earlier than August 1, 2015. Interest will be calculated on a 360 -day year consisting of twelve 30 -day months. Said Bonds will be dated as of their date of delivery, will be in the denominations of $5,000 or any integral multiple in excess thereof and will mature semiannually on February I and August 1 (commencing August 1, 2015) over a period not to exceed twenty (20) years and more particularly to be in the years and in the amounts as set forth in the maturity schedule to be provided to prospective bidders in the Preliminary Official Statement at least 24 hours prior to the time of bidding. All or a portion of each series of the Bonds may be issued as one or more term bonds, upon election of the successful bidder. Such term bonds shall have a stated maturity or maturities of February 1 and August 1, in the years as determined by the successful bidder through the final maturity as described above for the bonds. The term bonds shall be subject to mandatory sinking fund redemption and final payment(s) at maturity at 100% of the principal amount thereof, plus accrued interest to the redemption date, on dates consistent with the above described maturity schedule. The Bonds may be subject to redemption prior to maturity as set forth in the Preliminary Official Statement. Principal is payable at the office of a paying agent to be designated by the Controller. Interest shall be paid by check mailed to the registered owners or by wire transfer to depositories. The Bonds will be issued in fully registered form. Each bid should be on the form approved by the City and may be submitted (1) via e- mail to herschel.frierson @crowehorwath.com; (2) by mail, which bid shall be enclosed in a sealed envelope addressed to the undersigned Controller, c/o Crowe Horwath LLP, 10 West Market Street, Suite 2000, Indianapolis, IN 46204 -2975, and marked "Bid for City of South Bend Economic Development Income Tax Bonds of 2015;" or (3) electronically via PARITY®. To the extent any instructions or directions set forth in PARITY® conflict with this Notice, the terms of this Notice shall control. For further information about PARITY®, potential bidders may contact Crowe Horwath LLP, as indicated above, or PARITY® at (212) 849 -5021. Bidders may change and submit bids as many times as they wish during the sale, but they may not withdraw a submitted bid. The last bid submitted by a bidder prior to the deadline for the receipt of bids will be compared to all other final bids to determine the winning bid. During the sale, no bidder will see any other bidder's bid, nor will they see the status of their bid relative to other bids (e.g. whether their bid is a leading bid). The successful bidder will be notified and instructed to submit a good faith deposit which may consist of either a certified or cashier's check (or a wire transfer consisting of immediately available funds to the City, as instructed by the City) in the amount of 1% of the principal amount of the Bonds ( "Deposit ") and shall be submitted to the City not later than 3:00 pm (Eastern Time) on the next business day following the award. If a check is submitted, it shall be drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation. The Deposit shall be payable to the "City of South Bend," and shall be held as a guaranty of the performance of the bid. No interest on the Deposit will accrue to the successful bidder. In the event the successful bidder fails to honor its accepted bid, the Deposit will be retained by the City as damages for such default. The successful bidder will be required to make payment for such Bonds in Federal Reserve funds or other immediately available funds and accept delivery of the Bonds within five days after being notified that the Bonds are ready for delivery, at such bank in the City of Indianapolis, Indiana, or the City, as the purchaser shall designate, or at such other location which may be mutually agreed to by the City and such bidder. It is anticipated that the Bonds will be ready for delivery within thirty (30) days after the date of the sale and if not ready for delivery within forty - five (45) days after the sale date, the purchaser shall be entitled to rescind the sale and obtain the return of the Deposit. The opinion of Frost Brown Todd LLC, bond counsel of Indianapolis, Indiana, approving the legality of said Bonds, together with a transcript of the bond proceedings, and closing certificates in the usual form showing no litigation, will be furnished to the successful bidder at the expense of the City. The bond ordinance of the City, dated January 26, 2015, authorizing the issuance of the Bonds (the "Bond Ordinance "), permits the Bonds to be issued by means of a book -entry -only system with no physical distribution of bond certificates made to the public. In this case, one bond certificate for each maturity will be issued to and registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( "DTC "), and immobilized in its custody. The successful bidder, as a condition of delivery of the Bonds, may be required to deposit the bond certificates with DTC, registered in the name of Cede & Co., nominee of DTC. If applicable, CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the successful bidder therefore to accept delivery of and pay for the Bonds in accordance with the terms of its bid. No CUSIP identification number shall be deemed to be a part of any bond or a part of the contract evidenced thereby and no liability shall hereafter attach to the City or any of its officers or agents because of or on account of such numbers. All expenses in relation to the printing of CUSIP identification numbers on the Bonds shall be paid for by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the successful bidder. The successful bidder will also be responsible for any other fees or expenses it incurs in connection with the resale of the Bonds. The Bonds are being issued under the provisions of Indiana Code 6 -3.5 for the purpose of making various capital improvements and expansions to the City's parks and park facilities; to fund a debt service reserve, if necessary; and to pay expenses incidental to the issuance of the Bonds. The Bonds will be payable solely out of the County Economic Development Income Tax revenues ( "EDIT ") received by the City on parity with other obligations payable from such revenues, including the Outstanding Bonds described below any other obligation issued in the future in accordance with the Bond Ordinance. The Bonds are not a general obligation of the City and are payable solely from EDIT. In the opinion of Frost Brown Todd LLC, Indianapolis, Indiana, under existing laws, interest on the Bonds is excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended and in effect on the date of issuance of such Bonds (the "Code "), is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations but is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The bidders agree to make a bona fide public offering of all of the Bonds at prices not in excess of the initial public offering prices. The Bonds may not be reoffered to the public at more than de minimus premium. The City has outstanding certain City of South Bend, Indiana County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 A and 2006 B, dated December 14, 2006, outstanding after the February 1, 2015 payment in an aggregate principal amount of $1,665,000 (the "Outstanding Bonds "). The Bonds will rank and be payable on parity with the Outstanding Bonds. The City has reserved the right to issue additional bonds ranking on parity with the Bonds now being offered, upon certain terms and conditions specifically set forth in the Bond Ordinance. A copy of the Preliminary Official Statement may be obtained from the City's Financial Advisor, Crowe Horwath LLP, 10 West Market Street, Suite 2000, Indianapolis, IN 46204- 2975 or herschel.frierson @crowehorwath.com. Dated this _th day of January, 2015. Controller, City of South Bend 0127802.0622110 4844- 2857- 8592v6 NEW ISSUE Preliminary Official Statement Dated , 2015 RATING: S &P " " BOOK - ENTRY -ONLY See "RATING" herein In the opinion of Frost Brown Todd LLC, Indianapolis, Indiana ( "Bond Counsel'), under existing law, interest on the Bonds, as defined herein, is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended, for federal income tax purposes. Such exclusion is conditioned upon continuing compliance with the Tax Covenants (hereinafter defined). In the opinion of Bond Counsel, under existing law, interest on the Bonds is exempt from taxation in the State of Indiana for all purposes. (See 'TAX MA ITERS" and "APPENDIX F" herein.) $5,580,000 CITY OF SOUTH BEND, INDIANA Economic Development Income Tax Bonds of 2015 Dated: Date of Delivery Anticipated Delivery Date: March 3, 2015 Due: February 1 and August 1, as shown below ANTICIPATED BOND SALE: February 18, 2015 10:00 AM E.S.T. (Local Time) Upon 24 Hours' Notice Electronic and Sealed Bids The City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 (the "Bonds ") are being issued by the City of South Bend (the "City") pursuant to Indiana Code 6- 3.5 -7, as amended and as in effect on the issue date of the Bonds (the "Acts ") and pursuant to Ordinance No. approved by the Common Council of the City on January 26, 2015 (the "Ordinance'. The principal of and premium, if any, on the Bonds shall be payable In lawful money of the United States of America at the designated office of U.S. Bank National Association (the "Registrar' and "Paying Agent'). Interest will be payable on February 1 and August 1 of each year, beginning August 1, 2015. The Bonds are issuable only as fully registered bonds and, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (DTC). Purchasers of beneficial interests in the Bonds will be made in book-entry-only form, in the denomination of $5,000 or any integral multiple in excess thereof. Purchasers of beneficial interests in the Bonds (the "Beneficial Ownersy will not receive physical delivery of certificates representing their interests in the Bonds. So long as DTC or its nominee is the registered owner of the Bonds, principal of and interest on the Bonds will be paid directly to DTC by the Paying Agent. The final disbursement of such payments to the Beneficial Owners of the Bonds will be the responsibility of the Direct Participants and Indirect Participants, all as defined and more fully described herein. (See "DESCRIPTION OF THE BONDS" herein.) The Bonds are being issued by the City to (i) fund the cost of various capital improvements to the City's parks, (ii) fund a debt service reserve fund for the Bonds, if necessary, and (iii) pay expenses incidental to the issuance of the Bonds. (See "PURPOSE OF THE BOND ISSUE" herein.) The Bonds are scheduled to' mature on February 1 and August 1 on the dates and amounts as follows: MATURITY SCHEDULE Base CUSIP ( ) Date Principal Date Principal Date Principal Date Principal 8/1115 $ 90,000 8/120 $ 110,000 8/125 $ 140,000 8/1/30 $ 165,000 2/1116 90,000 2/121 115,000 2/126 135,000 2/1/31 170,000 8/1/16 100,000 8/121 115,000 8/126 140,000 8/1131 175,000 2/1/17 105,000 21122 120,000 2/127 145,000 2/1/32 175,000 811/17 105,000 81122 125,000 8/127 145,000 8/1132 185,000 2/1/18 105,000 21123 120,000 21128 150,000 2/1133 185,000 8/1/18 110,000 81123 125,000 8/128 155,000 8/1/33 190,000 2/1/19 105,000 2/124 125,000 2/129 155,000 2/1134 195,000 8/1/19 105,000 8/124 130,000 8/129 165,000 8/1/34 205,000 2/120 115,000 2/125 130,000 2/1/30 160,000 2/1135 200,000 The Bonds maturing on or after February 1, 2025 are subject to optional redemption prior to maturity. If tens bonds are issued. they will be subject to mandatory sinking fund redemption in accordance with principal payments shown above. (See "REDEMPTION PROVISIONS" herein.) The Bonds are payable solely from and secured exclusively by a pledge of the City's distributive share of the St. Joseph County Economic Development Income Tax Revenues (the " CEDIT Revenues "). The Bonds shall not constitute a general obligation of the City, and the City shall not be obligated to pay the Bonds, or the interest thereon, except from the CEDIT Revenues. The City has not pledged its full faith and credit nor its property taxing power to the payment of the principal of or the interest on the Bonds. (See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS" herein.) In connection with any acquisition of the Bonds by financial institutions, the Bonds will not be deemed to be 'qualified tax -exempt obligations" for purposes of Section 265(b)(3) of the internal revenue code of 1966, as amentled. This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. The City has authorized the distribution of this Official Statement to prospective purchasers and other interested parties. The City has deemed this Official Statement nearly final" as of the date hereof, subject to including certain additional information available after the sale of the Bonds, all in accordance with the provisions of Rule 15c2 -12 of the United States Securities and Exchange Commission. THIS PAGE INTENTIONALLY LEFT BLANK CITY OF SOUTH BEND, INDIANA MAYOR Pete Buttigieg COMMON COUNCIL Tim Scott President Henry Davis, Jr. Dr. Fred Ferlic Oliver Davis Gavin Ferlic CITY CLERK John Voorde CITY CONTROLLER John Murphy BOND COUNSEL Frost Brown Todd LLC Indianapolis, Indiana iv Valerie Schey Dr. David Varner Derek Dieter Karen L. White CITY ATTORNEY Cristal Brisco FINANCIAL ADVISOR Crowe Horwath LLP Indianapolis, Indiana $5,580,000 CITY OF SOUTH BEND, INDIANA Economic Development Income Tax Bonds of 2015 TABLE OF CONTENTS Pace OFFICIAL STATEMENT Introductory Statement ............................................................. ............................... 1 Purpose Of The Bond Issue ..................................................... ............................... 1 Security And Sources Of Payment For The Bonds ................... ............................... 1 Estimated Sources And Uses Of Funds .................................... ............................... 2 DescriptionOf The Bonds ......................................................... ............................... 2 County Economic Development Income Tax (CEDIT) .............. ............................... 2 Discussion of Risk Factors ....................................................... ............................... 4 RedemptionProvisions ............................................................. ............................... 5 Litigation................................................................................... ............................... 6 Legal Opinions And Enforceability Of Remedies ...................... ............................... 6 TaxMatters ............................................................................... ............................... 6 Original Issue Discount ............................................................. ............................... 6 Amortizable Bond Premium ...................................................... ............................... 7 Rating....................................................................................... ............................... 7 Continuing Disclosure Undertaking Agreement ........................ ............................... 7 ConcludingStatements ............................................................. ............................... 8 APPENDIX A - Description of the City of South Bend ..................... ............................... A -1 APPENDIX B - City Debt and Taxation ........................................... ............................... B -1 APPENDIX C - Consultant's Report ................................................ ............................... C -1 APPENDIX D - Bond Ordinance ..................................................... ............................... D -1 APPENDIX E - Book - Entry-Only System ........................................ ............................... E -1 APPENDIX F - Form of Bond Counsel Opinion .............................. ............................... F -1 APPENDIX G - Form of Continuing Disclosure Undertaking Agreement ........................ G -1 APPENDIX H - Notice of Intent to Sell ............................................ ............................... H -1 APPENDIXI - Bid Form ................................................................. ............................... 1 -1 v OFFICIAL STATEMENT $5,580,000 CITY OF SOUTH BEND, INDIANA Economic Development Income Tax Bonds of 2015 INTRODUCTORY STATEMENT The purpose of this Official Statement, including the cover page, Notice of Intent to Sell and the Appendices, is to provide information relating to the $5,580,000 City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 (the "Bonds ") to be issued by the City of South Bend, Indiana (the "City "). All financial and other information presented in this Official Statement has been provided by the City from their records, except for information expressly attributed to other sources. The presentation of information concerning the City including financial statements and tax tables shows recent historic information and does not indicate or project future or continuing trends in the financial position or other affairs of the City. Property tax information provided herein is for illustrative purposes only, the Bonds are not payable from property taxes. Past experiences shown by financial and other information may not necessarily continue in the future. References to provisions of Indiana law or the Indiana Constitution are references to current provisions which may be amended, repealed or supplemented. PURPOSE OF THE BOND ISSUE The Bonds are being issued pursuant to Indiana law, including, without limitation, Indiana Code 6- 3.5 -7, as amended and as in effect on the issue date of the Bonds (the "Acts ") and pursuant to Ordinance No. approved by the Common Council of the City on January 26, 2015 (the "Ordinance'). Proceeds from the Bonds will be used to (i) fund the cost of various capital improvements to the City's parks (the "Project "), (ii) fund a debt service reserve fund for the Bonds, if necessary, and (iii) pay expenses incidental to the issuance of the Bonds. The Project is more particularly described in Exhibit A of the Ordinance attached as Appendix D hereto. SECURITY AND SOURCES OF PAYMENT FOR THE BONDS The Bonds are payable solely from and secured exclusively by a pledge of the City's distributive share of the St. Joseph County (the "County ") County Economic Development Income Tax Revenues (the " CEDIT Revenues'). The Bonds shall not constitute a general obligation of the City and the City shall not be obligated to pay the Bonds or the interest thereon except from the CEDIT Revenues. The City has not pledged its full faith and credit nor its property taxing power to the payment of the principal of or the interest on the Bonds. The Bonds, and any bonds ranking on a parity therewith, including the City's County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 A (the "2006 A Bonds ") and the City's Taxable County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 B (the "2006 B Bonds') (collectively, the "Prior Bonds'), as to principal and interest are a special revenue obligation of the city and shall be payable solely from and are secured by an irrevocable pledge of and shall constitute a first charge upon the City's distributive share of the CEDIT Revenues. The CEDIT Revenues that are pledged to the payment of the Bonds are more fully described in the Ordinance. -1- ESTIMATED SOURCES AND USES OF FUNDS Sources of Funds ParAmount $ 5,580,000 Total Sources of Funds $ 5,580,000 Uses of Funds Project Fund $ 5,000,959 Debt Service Reserve Fund 419,241 Underwriter's Discount 55,800 Cost of Issuance (1) 104,000 Total Uses of Funds $ 5,580,000 (1) Includes legal fees, financial advisory fees, rating agency fees printing and mailing expenses and other miscellaneous expenses. DESCRIPTION OF THE BONDS The Bonds will be issued as fully registered bonds and will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (DTC). Purchases of beneficial interests in the Bonds will be made in book - entry-only form, in denominations of $5,000 or any integral multiple in excess thereof. Purchasers of beneficial interests in the Bonds (the "Beneficial Owners ") will not receive physical delivery of certificates representing their interests in the Bonds. Interest on the Bonds will be paid semi - annually on February 1 and August 1 in each year beginning August 1, 2015. The principal of the Bonds is payable on each February 1 and August 1 beginning August 1, 2015, at the designated office of U.S. Bank National Association, as registrar and paying agent (the "Registrar" and the "Paying Agent "). Interest on the Bonds will be paid by check or draft, mailed one business day prior to the interest payment date to the registered owners of the Bonds as the names appear as of the fifteenth day of the month preceding the interest payment date and at the addresses as they appear on the registration books kept by the Registrar; provided, however, so long as DTC or its nominee is the registered owner of the Bonds, principal of and interest on the Bonds will be paid directly to DTC by the Paying Agent. Neither the City nor the Paying Agent will have any responsibility for a Beneficial Owner's receipt from DTC or its nominee or any Direct Participant or Indirect Participant (as such terms are herein defined) of any payments of principal of or any interest on any Bonds. (See "APPENDIX E - BOOK - ENTRY -ONLY SYSTEM ".) COUNTY ECONOMIC DEVELOPMENT INCOME TAX (CEDIT) The CEDIT is authorized pursuant to Indiana Code 6 -3.5 -7 and may be imposed on the adjusted gross income of county taxpayers. County taxpayers are individuals who (i) reside in such county on January 1 of the calendar year in which the individual's taxable year commences, or (ii) maintain a principal place of business or employment in such county on January 1 of the calendar year in which the individual's taxable year commences and who do not on that same date reside in another county in which the county adjusted gross income tax (CAGIT), the county option income tax (COIT) or CEDIT is in effect. "Adjusted Gross Income" -2- under IC 6- 3- 1- 3.5(a) is as defined for individuals in Section 62 of the Internal Revenue Code, subject to certain modifications. In 1995, the St. Joseph County Income Tax Council (the "Income Tax Council ") originally imposed CEDIT on County taxpayers at a rate of one - tenths of one percent (0.1 %), effective July 1, 1995. In 1997, the County Income Tax Council increased CEDIT on County taxpayers to a rate of two- tenths of one percent (0.2 %), effective July 1, 1997. In 2010, the County Income Tax Council increased the CEDIT on County taxpayers to a rate of four - tenths of one percent (0.4 %), effective July 1, 2010. Subject to the limitations provided therein, the CEDIT statute provides for increases or decreases in the tax rate and for rescission of the tax by the body that imposed it. The CEDIT statute expressly states that the Indiana General Assembly may not repeal or amend the CEDIT Statute in a manner that would adversely affect any outstanding bonds payable from CEDIT revenues. CEDIT may be imposed in increments of 0.1% up to 0.2% and at any multiple of 0.05% above 0.2% but not to exceed 0.5 %. With certain exceptions, in counties in which COIT has been enacted, the combined rates of COIT and CEDIT may not exceed 1 %. With certain exceptions, in counties in which CAGIT has been enacted, the combined rates of CAGIT and CEDIT may not exceed 1.25 %. The County Income Tax Council has imposed COIT at an annual rate of six - tenths of one percent (0.6 %). As a result, the combined rate of COIT and CEDIT in St. Joseph County is 1.0 %. The State of Indiana (the "State ") income tax rate, in addition to any applicable CEDIT, COIT and CAGIT tax rates, is currently three and four - tenths percent (3.4 %). The Indiana Department of State Revenue (the "Department of Revenue ") is required to collect CEDIT after adoption by the appropriate body in any county. Such collections are credited to a special account within the State general fund until distribution to the enacting county. In addition, any income earned on money credited to such special account is required to be added to each county's CEDIT proceeds. Further, any funds remaining in any county's CEDIT account at the end of a State fiscal year may not be transferred to any other account in the State general fund. Before July 2 of each calendar year, the Department of Revenue, after reviewing the recommendation of the State Budget Agency, shall certify to the county auditor of each adopting county the amount of CEDIT that has been received from that county for the taxable year ending before the calendar year in which the determination has been made, and reported on a tax return processed by the Department of Revenue before July 1 of the calendar year in which the determination has been made. The amount certified is the county's certified distribution, which must be distributed in equal installments on May 1 and November 1 of the following calendar year. The certified distribution may be adjusted for refunds of CEDIT made in the State fiscal year in which the determination has been made, plus the amount of interest in the county's account that has accrued but has not been included in a prior certification. The Department of Revenue shall certify an amount less than the amount collected to offset overpayments made in prior years, or may adjust the certified amount to correct any clerical or mathematical errors made in any previous certification. The county auditor is to distribute CEDIT revenues (i) based on the proportionate share of the allocation amount of the City and each city, town and the county (each, a "unit ") to the total allocation amount of the City and all units within the county, or (ii) for counties that adopt CEDIT after June 1, 1992, upon passage of an ordinance by the appropriate body, based on each unit's proportionate share of population within the county to the total population of the county. The County Income Tax Council has adopted an ordinance to provide that CEDIT in St. Joseph County will be distributed based upon the allocation amount formula per IC 6- 3.5- 6 -1.1. The county and each city and town in a county are entitled to a share of the county's certified distribution; provided that such county or unit has adopted a capital improvement plan -3- under Indiana Code 6- 3.5 -7 -15 (the "Plan ") that specifies the uses for which CEDIT will be disbursed. A Plan must identify projects to be funded from CEDIT proceeds, provide total cost estimates for each project, and supply a schedule for the planning, development and construction of each project. The Plan must encompass a period of not less than two years and must provide for the expenditure of at least 75% of CEDIT to be received by such unit during the period that such Plan is in operation. If the county or a unit in the county fails to adopt a Plan or designate the county or another unit in the county as the recipient of its share of the distribution, that county or unit may not receive its CEDIT distribution. The county treasurer will retain such distribution and any designated distribution for such county or unit in a separate account until the county or unit adopts a Plan. If the county or unit fails to adopt a Plan for three succeeding years, the balance in such account will be distributed to the county or other units in the county that have adopted a Plan. Such redistribution will be based on property taxes first due and payable to the county or units during the calendar year in which the three year period expires. For a project to be paid for or financed with bonds or leases payable from CEDIT, it must be (i) deemed an "economic development project" by the county or unit within the county receiving such revenues, or (ii) a capital project for which the county or unit could issue general obligation bonds. An "economic development project" is any project that promotes gainful employment, attracts a major new business enterprise or retains or expands a business enterprise within the jurisdiction; and involves expenditures for a combination of, or singly, the purchase of land, infrastructure improvements, enlargement or construction of buildings, and the acquisition of machinery, furniture and fixtures. The CEDIT statute provides that CEDIT may be pledged to defray the debt service for bonds or long term lease rentals to undertake improvements and expenditures pursuant to a Plan. If bonds are issued and outstanding pursuant to the CEDIT Statute, a county income tax council or a county council may not reduce the CEDIT rate below a rate that would (or could be projected to) produce 1.25 times the maximum annual debt service on such bonds. The calculation for such minimum tax rate must be based on the average of the county's preceding three years' tax collections. DISCUSSION OF RISK FACTORS Prospective investors should be aware that there are certain unique risk factors associated with the purchase and ownership of the Bonds. The following describes some of those risk factors, but is not, or is not intended to be, exhaustive. The Bonds are secured by the CEDIT Revenues and if such CEDIT Revenues are insufficient, the City is not obligated to pay the principal of or the interest on the Bonds from any other revenues, funds or taxes. 2. There can be no assurance that CEDIT revenues will continue to be collected at the levels indicated in the Consultant's Report (See Appendix C). 3. The rate at which the CEDIT is imposed cannot be modified unless the St. Joseph County Income Tax Council (the "County Income Tax Council ") takes the necessary action. The County Income Tax Council is prohibited by statute from taking any action that would result in a civil taxing unit having a smaller distributive share than the share to which it was entitled when it pledged the CEDIT revenues. -4- 4. The Indiana Legislature or an administrative agency with jurisdiction in the matter could modify or enact new laws or regulations or a court of competent jurisdiction could interpret the laws or regulations governing all matters associated with CEDIT Revenues in a manner that may negatively affect the owners of the Bonds. 5. Adverse economic conditions in the County, the State or the United States could result in a reduction in the adjusted gross income of qualifying taxpayers in the County and, therefore, a reduction in CEDIT revenues. Such adverse economic conditions could include a general economic downturn, strikes, lay -offs or plant closings in the County, a reduction in the number of taxpayers in the County or a reduction in the aggregate adjusted gross income of the County taxpayers. 6. Local area or statewide delinquencies in State income tax collections could result in reduced CEDIT receipts. REDEMPTION PROVISIONS Optional Redemption The Bonds maturing or subject to mandatory sinking fund redemption on and after February 1, 2025, are redeemable prior to maturity at the option of the City, in whole or in part, on August 1, 2024, or any date thereafter, on thirty (30) days' notice, in any order of maturities to be selected by the City and by lot within a maturity, at 100% of face value plus accrued interest to the redemption date. Mandatory Sinking Fund Redemption If any Bonds are issued as term bonds, they will be subject to mandatory sinking fund redemption. If any Bonds are issued as a term bond, the Paying Agent shall credit against the mandatory sinking fund requirement for such Bond maturing as a term bond, as though it were a redemption of serial bonds, and, if more than one term bond of any maturity is outstanding, redemption of such maturity shall be made by lot. Sinking fund redemption payments shall be made in a principal amount equal to such serial maturities, plus accrued interest to the redemption date, but without premium or penalty. Notice of Redemption: Payment of Redeemed Bonds Notice of redemption will be mailed by first -class mail to the address of each registered owner of a Bond to be redeemed as shown on the Registration Record not more than sixty (60) days and not less than thirty (30) days prior to the date fixed for redemption except to the extent „ .: _such redemption notice is waived by owners of Bonds redeemed, provided, however, that failure to give such notice by mailing, or any defect therein, with respect to any Bond will not affect the validity of any proceedings for the redemption of any other Bonds. The notice will specify the date and place of redemption, the redemption price and the CUSIP numbers, if any, of the Bonds called for redemption. The place of redemption may be determined by the City. Interest on the Bonds so called for redemption will cease on the redemption date fixed in such notice if sufficient funds are available at the place of redemption to pay the redemption price on the date so named. -5- LITIGATION To the best of the knowledge of the City, there is not now any pending or threatened litigation restraining or enjoining the issuance, sale, execution or delivery of the Bonds or in any way contesting, questioning or affecting the validity of the Bonds, or any of the proceedings of the City taken with respect to the issuance or sale thereof, or the collection and application of any moneys or security provided for the payment of the Bonds. LEGAL OPINIONS AND ENFORCEABILITY OF REMEDIES The various legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by the valid exercise of the constitutional powers of the State and the United States of America and bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). Those exceptions would encompass any exercise of federal, State or local police powers (including the police powers of the City and the State), in a manner consistent with the public health and welfare. The enforceability of the Ordinance, in a situation where such enforcement may adversely affect the public health and welfare, may be subject to those police powers. The various legal opinions to be delivered concurrently with the delivery of the Bonds express the professional judgment of the attorneys rendering the opinions on the legal issues explicitly addressed therein. By rendering a legal opinion, the opinion giver does not become an insurer or guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of parties to such transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. The remedies available to the bondholders upon a default under the Ordinance are in many respects dependent upon judicial actions which are often subject to discretion and delay. Enforcement of remedies provided in the Ordinance may be limited by existing constitutional and statutory law and judicial decisions, including specifically Title 11 of the United States Code (the federal bankruptcy code) and other laws relating to creditors' rights generally. Under Federal and State environmental laws, certain liens may be imposed on property of the City from time to time, but the City has no reason to believe, under existing law, that any such lien would have priority over the lien on the CEDIT Revenues pledged to the owners of the Bonds. TAX MATTERS (To be provided by Bond Counsel) ORIGINAL ISSUE DISCOUNT For federal income tax purposes, the Bonds maturing on through and including (the "Discount Bonds ") will be considered to have "original issue discount" equal to the difference between their respective original issue price and the amount payable upon their respective maturities. The original issue price of each Discount Bond will be the initial offering price to the public at which a substantial amount of such Discount Bonds are sold, and the issue date will be the date on which such Discount Bonds are first issued to the public. Under existing law, the original issue discount on a Discount Bond accrued in the hands of a holder is treated for federal income tax purposes as interest which is excludable pursuant to Section 103 of the Code from gross income, assuming compliance by the City with the Tax Covenants. The lQ holder's basis for determining gain or loss on a sale, maturity or other disposition of a Discount Bond generally will be equal to the holder's cost, increased by the original issue discount that is accrued during the period that the Discount Bond is held by such holder. Generally, any gain or loss recognized by a holder on a sale, exchange or payment at maturity of a Discount Bond (based on the holder's basis) will be taxable as capital gain or loss (assuming the Discount Bond is held as a capital asset). A holder will recognize a taxable gain or loss on a Discount Bond called prior to maturity on the difference between the holder's basis and the call price of the Discount Bond. Owners of the Discount Bonds should consult their own tax advisors with respect to the computation for federal income tax purposes of the amounts of original issue discount which accrue during the period in which such Discount Bonds are held. Owners of the Discount Bonds should also consult their own tax advisors with respect to the state and local tax consequences arising from the original issue discount of the Discount Bonds. AMORTIZABLE BOND PREMIUM The initial offering price of the Bonds maturing on through and including (the "Premium Bonds ") is greater than the principal amount payable at maturity. As a result, the Premium Bonds will be considered to be issued with amortizable bond premium (the "Bond Premium "). An owner who acquires a Premium Bond in the initial offering will be required to adjust the owner's basis in the Premium Bond downward as a result of the amortization of the Bond Premium, pursuant to Section 1016(a)(5) of the Code. Such adjusted tax basis will be used to determine taxable gain or loss upon the disposition of the Premium Bonds (including sale, redemption or payment at maturity). The amount of amortizable Bond Premium will be computed on the basis of the taxpayer's yield to maturity, with compounding at the end of each accrual period. Rules for determining (i) the amount of amortizable Bond Premium and (ii) the amount amortizable in a particular year are set forth at Section 171(b) of the Code. No income tax deduction for the amount of amortizable Bond Premium will be allowed pursuant to Section 171(a)(2) of the Code, but amortization of Bond Premium may be taken into account as a reduction in the amount of tax - exempt income for purposes of determining other tax consequences of owning the Premium Bonds. Owners of Premium Bonds should consult their tax advisors with respect to the precise determination for federal income tax purposes of the treatment of Bond Premium upon the sale or other disposition of such Premium Bonds and with respect to the state and local tax consequences of owning and disposing of Premium Bonds. Special rules governing the treatment of Bond Premium, which are applicable to dealers in tax - exempt securities, are found at Section 75 of the Code. Dealers in tax - exempt securities are urged to consult their own tax advisors concerning the treatment of the Bond Premium. RATING Standard & Poor's ( "S &P ") has assigned an underlying rating of "_" to the Bonds. Such rating is not a recommendation to buy, sell or hold the Bonds. There is no assurance that such rating will remain in effect for any given period of time or that such rating will not be lowered or withdrawn entirely by S &P if, in their judgment, circumstances so warrant. Any such downward revision or withdrawal of the rating may have an adverse effect on the market price or marketability of the Bonds. CONTINUING DISCLOSURE UNDERTAKING AGREEMENT Pursuant to continuing disclosure requirements promulgated by the United States Securities and Exchange Commission in SEC Rule 15c2 -12, as amended (the "Rule "), the City will -7- execute a Continuing Disclosure Undertaking Agreement (the "Continuing Disclosure Agreement'). The Continuing Disclosure Agreement will contain certain promises of the City, including a promise to provide continuing disclosure of certain information. A copy of the Form of Continuing Disclosure Undertaking Agreement is attached to this Official Statement as APPENDIX G. The City represents that in the previous five (5) years, it has not fully complied with its previous undertakings, including but not limited to the following: (i) annual financial information were not filed on a timely basis, (ii) some operating data specified in certain undertakings were not included in filings, incorrectly filed, or not filed on a timely basis, and (iii) underlying rating changes were not consistently filed. The City makes no representation as to any potential materiality of such prior instances, as materiality is dependent upon individual facts and circumstances. The City is currently in the process of developing new procedures for ensuring future compliance with continuing disclosure reporting requirements. CONCLUDING STATEMENTS The forgoing summaries and statements in this Official Statement do not purport to be complete and are expressly made subject to the exact provisions of the complete documents. The attached Appendices are an important part of this Official Statement and should be read together with all the foregoing statements. Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and are not presented as unqualified statements of fact. The information contained herein has been carefully compiled from sources deemed reliable and to the best knowledge and belief of the City there are no untrue statements nor omissions of material facts in the Official Statement which would make the statements and representations therein misleading. Certain supplemental information concerning the financial condition of the City which is exhibited hereafter is considered part of this Official Statement. The presentation of historical tax and other financial data exhibited elsewhere herein is intended to show recent trends and conditions. There is no intention to represent by such data that such trends will continue in the future, nor that any pending improvement or diminution of local conditions is indicated thereby. Crowe Horwath LLP has served as financial advisor to the City in connection with the sale of the Bonds. The financial advisor makes no representation as to the completeness or the accuracy of the information set forth in this Official Statement. Inquiries concerning information with respect to the issuance of the Bonds should be directed to said Crowe Horwath LLP, attention Herschel Frierson (317) 269 -2377 or by email at herschel.frierson(a)crowehorwath com. The execution of this Official Statement has been authorized by the City of South Bend. City Controller City of South Bend Dated 2015 Q;D APPENDIX A DESCRIPTION OF THE CITY OF SOUTH BEND A -1 DESCRIPTION OF THE CITY Location The City of South Bend is located in St. Joseph County in north central Indiana near the border of the State of Michigan. South Bend is approximately 140 miles north of Indianapolis, Indiana and approximately 90 miles east of Chicago, Illinois. Government The City of South Bend has eleven elected officials: the Mayor, the Common Council, including council members covering six districts and three council members at large, and the City Clerk. The South Bend Police Department consists of 260 sworn officers and 102 civilian employees. The South Bend Fire Department is comprised of eleven fire stations and employs 248 full -time firefighters in four divisions. Population Source: U.S. Census Bureau. Employment Employment as of August 2014 St. Joseph % of South Bend County Indiana 2010 101,168 266,931 6,483,802 2000 107,789 265,559 6,080,485 1990 105,511 247,052 5,544,159 1980 109,727 241,617 5,490,210 1970 125,580 244,827 5,195,392 Source: U.S. Census Bureau. Employment Employment as of August 2014 Source: U.S. Department of Labor, Bureau of Labor Statistics at hftp://data.bis.gov. A -2 South Bend % of Indiana MSA Indiana Labor Force 3,245,079 151,058 4.65% Employment 3,067,111 141,757 4.62 Unemployment 177,968 9,301 5.23 Unemployment Rate 5.50% 6.20% Source: U.S. Department of Labor, Bureau of Labor Statistics at hftp://data.bis.gov. A -2 Annual Average Unemployment Rate Source: U.S. Department of Labor, Bureau of Labor Statistics at htti)://data.bls.gov. . Employment by Industry as of August 2014 Natural Resource, Mining and Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional & Business Services Educational & Health Services Leisure & Hospitality Other Services Government Total Nonfarm Employment Indiana United South Bend MSA St. Joseph South Bend %of States Indiana County MSA 2013 7.4% 7.5% 8.8% 8.6% 2012 8.1 8.1 9.4 9.2 2011 8.9 8.8 9.9 9.8 2010 9.6 10.0 11.3 11.3 2009 9.3 10.3 11.5 11.5 Source: U.S. Department of Labor, Bureau of Labor Statistics at htti)://data.bls.gov. . Employment by Industry as of August 2014 Natural Resource, Mining and Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional & Business Services Educational & Health Services Leisure & Hospitality Other Services Government Total Nonfarm Employment Indiana South Bend MSA %of %of %of Employed Total Employed Total Indiana 135,900 4.53 % 4,800 3.59% 3-53% 512,300 17.08 16,800 12.56 3.28 573,800 19.13 25,100 18.76 4.37 34,700 1.16 1,700 1.27 4.90 130,600 4.35 5,000 3.74 3.83 318,100 10.60 12,800 9.57 4.02 442,600 14.76 33,700 25.19 7.61 299,200 9.97 13,400 10.01 4.48 123,900 4.13 6,000 4.48 4.84 428,500 1429 14,500 10.84 3.38 2,999,600 100.00 % 133,800 100.00 % Source: U.S. Department of Labor, Bureau of Labor Statistics at http: / /data.bls.gov. . A -3 Major Employers As of August 2014 employment figures for major employers in the South Bend and St. Joseph County area were as follows: Employer Type of Business University of Notre Dame Higher Education Beacon Health Systems Healthcare Trinity Health/ St. Joesph Regional Medical Center Healthcare AM General Manufacturing Martin's Super Markets City of South Bend Indiana University South Bend 1 st Source Corporation Schurz Communications Honeywell International Retail- Grocery Government Higher Education Banking /Finance Multimedia Communications Search & Navigation Equipment Source: St. Joseph County Chamber of Commerce 2014 Economic Profile. Approximate Number of Employees 8,466 3,400 3,000 2,738 1,555 1,298 1,266 1,160 725 700 Taxes Assessed Valuation: $2,181,510,508 for taxes payable in 2014 Property Tax: $6.0211 for taxes assessed in 2013 and payable in 2014 per $100 of assessed valuation in the South Bend - Portage taxing district in St. Joseph County. Sales & Use Tax: 7% tangible personal property except food and prescription drugs. Individual Adjusted Gross Income: 3.4% of earnings - $1,000 annual exemption allowed for each taxpayer and $1,500 for each dependent child. Excise Tax: Cigarettes - 99.5 cents per 20 cigarette package, and 124.375 cents per 25 cigarette package. Gasoline - 18 cents per gallon. Automobile Tax: Excise tax in lieu of personal property tax, based on initial retail price and age of vehicle. Innkeeper's Tax: 6% additional sales tax on any overnight stay in St. Joseph County. County Economic Development Income Tax: 0.4% of adjusted gross income of St. Joseph County resident taxpayers and certain non - resident St. Joseph County taxpayers. County Option Income Tax: 0.6% of adjusted gross income of St. Joseph County resident taxpayers and certain non - resident St. Joseph County taxpayers. Local Option Income Tax: 0.5% of adjusted gross income of St. Joseph County resident taxpayers and certain non- resident St. Joseph County taxpayers. Local Option Income Tax Public Safety: 0.25% of adjusted gross income of St. Joseph County resident taxpayers and certain non - resident St. Joseph County taxpayers. Community Data Hospitals: There are two major hospitals in the South Bend area, collectively-with over 890 beds: Memorial Hospital of South Bend and St. Joseph Regional Medical Center. Parks and Recreation: The park system consists of 75 local parks and facilities. Cultural: The City of South Bend is the home of a minor league baseball team affiliated with the Arizona Diamondbacks with games played in the Stanley Coveleski Regional Baseball Stadium (a 5,000 seat facility). The St. Joseph River runs through the City providing boating activities. The East Race Waterway is a 2,000 yard man -made rafting and kayaking course which flows adjacent to the St. Joseph River. Other A -4 attractions include the South Bend Symphony, Morris Performing Arts Center, Broadway Theater League, Potawatomi Zoo, College Football Hall of Fame Project, Studebaker National Museum, Northern Indiana Historical Museum, Copshaholm Historic House Museum, Morris Conservatory, and the Century Center (a 225,000 square foot convention and exhibit center). Other activities are also available at the major colleges and universities in the area. Transportation Railroads: Four rail lines provide freight and passenger service to the City and the South Shore passenger line runs from South Bend to Chicago. South Bend is also served by AMTRAK. Highways: 1 -80/90 (Indiana Toll Road); U.S. Highway 6, 20 and 31; State Highways 2, 4, 23, 104, 331, and 933 Trucking: 43 trucking lines, 33 terminals Air: South Bend Regional Airport serves the City with five carriers. Bus: A municipal bus service (Transpo) is provided within the City. Inter -City bus lines include United Limo and Greyhound. Utilities Electricity: Indiana Michigan Electric Power Company Gas: Northern Indiana Public Service Company Water /Sewage: The City of South Bend Municipal Waterworks and Municipal Sewage Works Education Public Schools: The City of South Bend is served by the South Bend Community School Corporation which has a current enrollment of approximately 19,680. The School Corporation includes six high schools, ten intermediate schools, 18 elementary schools and three specialized schools. Colleges and Universities: Institutions of higher education in the community include the University of Notre Dame, St. Mary's College, Indiana University at South Bend, Purdue University School of Technology, Bethel College, Holy Cross College, Davenport University, Tri -State University, Ivy Tech Community College, and Indiana Tech. Building Permits Total Permits 1,532 1,425 1,485 1,524 1,728 Permit Value: 2013 2012 2011 2010 2009 Permits: 15,320,259 $ 14,662,375 Commercial /Industrial 4,989,476 21,276,528 41,220,266 28,309,167 40,066,072 Residential 54 53 43 39 55 CommerciaUlndustrial 16 19 21 10 12 Building Additions /Garages* 1,430 1,319 1,394 1,453 1,644 Other 32 34 27 22 17 Total Permits 1,532 1,425 1,485 1,524 1,728 Permit Value: Residential $ 21,000,495 $ 23,126,489 $ 18,629,504 $ 15,320,259 $ 14,662,375 Commercial /Industrial 4,989,476 21,276,528 41,220,266 28,309,167 40,066,072 Building Additions /Garages* 37,282,326 41,855,296 62,867,738 43,291,310 55,457,812 Other 6,649,561 3,910,350 3,489.050 6,257,714 1,254171 Total Permit Value $ 69,921,858 $ 90,168,663 $ 126,206,558 $ 93,178,450 $ 111,440,430 * Includes residential and non - residential Source: City of South Bend Building Department. Financial Institutions The following banks have deposits in South Bend, Indiana and total deposits in Indiana as of June 30, 2014: Bank Deposits Bank Deposits in South Bend, in State of Institution Indiana Market Share Indiana 1 st Source Bank $ 1,220,859,000 47.91 % $ 3,659,608,000 KeyBank NA 440,778,000 17.30 2,978,026,000 Wells Fargo Bank NA 393,571,000 15.45 3,336,536,000 Fifth Third Bank 119,260,000 4.68 7,652,454,000 Old National Bank 110,086,000 4.32 5,778,882,000 Total $ 2,284,554,000 The following banks have deposits in South Bend but account for less than 3% of market share: JP Morgan Chase Bank NA, PNC Bank NA, MutualBank, Lake City Bank, Horizon Bank NA, and Woodforest National Bank. Source: FDIC, wwv.fdic.gov. Source of Data and Information Statistical data and other information set forth under this "DESCRIPTION OF THE CITY OF SOUTH BEND" have been compiled by the City's financial advisor, Crowe Horwath LLP, from sources deemed to be reliable. M APPENDIX B CITY DEBT AND TAXATION Am CITY OF SOUTH BEND Direct and Overlapping Debt (As of November 1, 2014) Total Percent Amount Debt Applicabl e licable Direct Debt None Lease Obligation Debt City of South Bend Building Corporation $ 5,580,000 100.00% $ 5,580,000 Overlapping and Underlying Direct Debt and Lease Obligations South Bend Redevelopment District 3,440,000 100.00 3,440,000 City of South Bend Redevelopment Authority 41,270,000 100.00 41,270,000 German Township 390,000 62.29 242,931 South Bend Community School Corporation (1) 168,273,370 54.17 91,153,685 St. Joseph County Public Library 7,615,000 50.85 3,872,228 St. Joseph County 18,645,000 29.03 5,412,644 St. Joseph County Airport Authority 12,455,000 29.03 3,615,687 Penn Township 1,360,000 3.38 45,968 Penn - Harris - Madison School Corporation (1) 57,438,994 2.82 1,619,780 Mishawaka - Penn - Harris Public Library 2,895,000 2.25 65,138 Total Overlapping and Underlying Direct Debt and Lease Obligations 150,738,061 Total Direct Debt and Lease Obligation Debt and Overlapping and Underling Direct Debt and Lease Obligations $ 156,318,061 (1) As of December 31, 2013 MIN City Economic Development Income Tax Revenue Bonds The City presently has outstanding $7,635,000 Economic Development Income Tax Revenue Bonds (the " CEDIT Bonds "). These CEDIT Bonds are payable solely from the City's share of the St. Joseph County Economic Development Income Tax and do not constitute a claim against the base property taxes collected or other income of the City. Issue Original Final Outstanding as of Date Amount Nlaturit November 1, 2014 2006 $ 3,910,000 02101/17 $ 1,060,000 2006 3,530,000 02/01/17 995,000 2015 5,580,000 02/01/35 5,580,000 Title County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 A Taxable County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 B Economic Development Income Tax Bonds of 2015 (1) Total $ 7,635,000 (1) To be issued herein. County Option Income Tax Lease Rental Revenue Bonds The City presently has outstanding $18,020,000 South Bend Building Corporation County Option Income Tax Revenue Bonds (the "COIT Bonds'). These COIT Bonds are payable solely from the City's share of the St. Joseph County Option Income Tax and do not constitute a claim against the base property taxes collected or other income of the City. Issue Original Final Outstanding as of Date Amount Nlaturi November 1, 2014 Title 2010 $ 6,075,000 02/01/21 $ 3,860,000 County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010 2010 4,980,000 01/15/19 2,915,000 Taxable Revenue Bonds, Series 2010 2012 13,595,000 02/01/23 11,245,000 First Nbrtgage Revenue Refunding Bonds, Series 2012 Total $ 18,020,000 M Direct Debt Issuance Limitation The City is limited to the issuance of direct general obligation debt in an amount not to exceed 2% of one -third of the assessed valuation. The Bonds being issued herein are subject to the 2% debt limitation. Net Assessed Valuation - 2013 Payable Year 2014 $ 2,181,510,508 2% of One -Third Thereof 14,543,403 Less Bonds subject to limitation: County Economic Development Income Tax Refunding Revenue Bonds,Series 2006 A $ (1,060,000) Taxable County Economic Development Income Tax Refunding Revenue Bonds,Series 2006 B (995,000) Economic Development Income Tax Bonds of 2015 (1) (5,580,000) Issuance Margin $ 6,908,403 (1) To be issued herein. Per Capita and Debt Ratio Analysis Population - 2010 101,168 Assessed Valuation (2013 Payable Year 2014) $ 2,181,510,508 Ratio of Debt Per Debt/Assessed Description Amount Capita Valuation Total Direct Debt and Lease Obligations $ 5,580,000 $ 55.16 0.26% Total Overlapping and Underlying Direct Debt and Lease Obligations 150,738,061 1,489.98 6.91 Totals S 156,318,061 $ 1,545.14 7 17 % Hotel -Motel Tax Revenue Debt Issue Original Final Outstanding as of Date Amount Matur November 1. 2014 Title Lease Rental Revenue Refunding Bonds, 2013 $3,990,000 05/01/26 $ 3,750,000 Series 2013 ( Centry Center Project) LID Tax Increment Revenue Debt Issue Original Final Outstanding as of Date Amount Ivaturi November 1. 2014 2030 2005 $ 5,485,000 02/01/27 $ 4,255,000 2011 10,389,036 08/01/24 8,535,000 2011 17,358,395 08/01/24 14,965,000 2001 1,040,000 06/22/21 438,535 7,960,000 Total 3,450,000 $ 28,193,535 Title Taxable Economic Development Revenue Bonds, Series 2005A (1) Tax Increment Revenue Bonds, Series 2003 (Airport Economic Development Area) Tax Increment Revenue Bonds, Series 2003 (South Bend Central Development Area) Revenue Bonds, Series 2001A (2) (1) The Bonds are payable from TIF Revenues, other revenues available under the Loan Agreement and to the extent that such revenues are insufficient or unavailable, payments will be made by Kimco Realty Corporation pursuant to a Taxpayer Agreement and Guaranty. (2) The Bonds are payable from payments made by Robert Bosch Corporation and are backed by EMS Revenues of the Airport Economic Development Area. Statement of City Utility Revenue Debt The City of South Bend owns and operates the municipal waterworks and municipal sewage works (the "Utilities ") which have heretofore issued and have outstanding the following revenue bonds. All such revenue bonds constitute a lien on the revenue of the utilities and are not, pursuant to Indiana statutes, direct obligations of the City. Revenue bonds issued of the Utilities and outstanding as November 1, 2014, were as follows: Utili Sewage Works - 2006 Sewage Works - 2007 Sewage Works - 2007 B Sewage Works - 2009 (SRF) Sewage Works - 2010 Sewage Works - 2011 Sewage Works - 2012 Sewage Works - 2013 Waterworks - 2000 (SRF) Waterworks - 2006 Waterworks - 2009A (SRF) Waterworks - 2009B Indiana Bond Bank (IBB) Waterworks - 2012 Waterworks - 2012 B ME Final Outstanding Maturi November 1. 2014 2026 $ 6,090,000 2027 13,010,000 2027 12,960,000 2028 2,742,336 2030 8,270,000 2031 19,895,000 2032 23,985,000 2024 13,700,000 2020 1,018,815 2027 3,505,000 2030 391,297 2030 4,985,000 2033 7,960,000 2023 3,450,000 Total Tax Rates City of South Bend - Portage Township (1) (Per $100 Assessed Valuation) (1) Includes County and overlapping levies. Source: St. Joseph County Abstracts. Net Assessed Valuation Payable City of St. Joseph Years Payable South Bend Court 2014 2014 2013 2012 2011 2010 County $ 0.7058 $ 0.6731 $ 0.6212 $ 0.5583 $ 0.6015 Portage Township 0.0505 0.0453 0.0464 0.0438 0.0406 Schools 1.3577 1.3493 1.1931 1.4144 1.2012 Library 0.3309 0.3227 0.2941 0.3206 0.2751 Corporation 3.3913 3.1108 3.0239 2.9541 2.7279 Redevelopment 0.0379 0.0599 0.0509 0.0980 0.0860 Airport 0.0345 0.0330 0.0309 0.0297 0.0362 Transportation 0.1125 0.1042 0.0999 0.0934 0.0821 Total Tax Rate $ 6.0211 $ 5.6983 $ 5.3604 $ 5.5123 $ 5.0506 (1) Includes County and overlapping levies. Source: St. Joseph County Abstracts. Net Assessed Valuation Payable City of St. Joseph Year South Bend Court 2014 $2,181,510,508 $7,514,198,242 2013 2,336,906,810 7,671,151,787 2012 2,399,920,084 7,999,877,168 2011 2,324,298,470 8,137,497,231 2010 2,453,505,573 8,416,771,764 Source: St. Joseph County Budget Orders. Property Taxes Levied and Collected City of South Bend Current and Delinquent Percentage Percentage Collection Collected after Collected after Circuit Collected before Year Levied Circuit Breaker Circuit Breaker Breaker Credit Circuit Breaker 2014 $ 73,981,565 $ 44,540,371 60.20% $ 28,708,050 99.01 % 2013 72,696,497 43,943,006 60.45 27,863,156 98.78 2012 70,756,844 47,728,795 67.45 23,965,911 101.33 2011 68,662,101 46,682,876 67.99 20,588,405 97.97 2010 66,929,179 48,194,042 72.01 16,595,854 96.80 Source: St. Joseph County Auditor, St. Joseph County Budget Order, and Department of Local Government Finance. M. Ten Largest Taxpayers City of South Bend Taxpayer Honeywell International Indiana Bell - AT &T Inc. Indiana Michigan Power Company - AEP Edward Rose of Indiana Federal -Mogul Powertrain Systems Beacon Health System, Inc. - Memorial Hospital The Tire Rack Wal -Mart KSK Scottsdale Mall NIPSCO Source: St. Joseph County Auditor's Office. Sources of Data and Information Payable 2014 Net Assessed Type of Business Valuation Search & Navigation Equipment $ 51,150,670 Telecommunications 46,635,290 Utility 37,253,440 Apartments and Real Estate 36,374,900 Automotive Parts 28,899,820 Healthcare 24,906,894 Automotive Parts 23,605,600 Retail 21,310,400 Commercial Real Estate 20,827,700 Utility 20,768,310 Total $ 311,733,024 Statistical data and other information set forth under the caption "CITY DEBT AND TAXATION" have been compiled by the City's financial advisor, Crowe Horwath LLP, from sources deemed to be reliable. [I7 APPENDIX C CONSULTANT'S REPORT C -1 CITY OF SOUTH BEND, INDIANA South Bend, Indiana Consultant's Report December 18, 2014 Crowe Horwatha G2 CITY OF SOUTH BEND, INDIANA South Bend, Indiana TABLE OF CONTENTS PURPOSE OF THE REPORT Paqe C -4 COUNTY ECONOMIC DEVELOPMENT INCOME TAX (CEDIT) C -5 DISCUSSION OF RISK FACTORS SUMMARY OF SIGNIFICANT ASSUMPTIONS C -7 C -7 EXHIBIT A - Proposed Economic Development Income Tax Bonds of 2015 Estimated Sources and Uses of Funds C -9 EXHIBIT B - Proposed Economic Development Income Tax Bonds of 2015 Estimated Amortization Schedule C -10 EXHIBIT C - Statement of Estimated CEDIT Revenues and Debt Service Coverage C -11 SCHEDULE C -1 - CEDIT Refunding Revenue Bonds, Series 2006 A Amortization Schedule C -12 SCHEDULE C -2 - Taxable CEDIT Refunding Revenue Bonds, Series 2006 B Amortization Schedule C -13 C -3 Crowe Horwath Crowe Homath LLP Independent Member Crowe Horwath International 10 West Market Street, Suite 2000 Indianapolis, Indiana 46204 -2975 Tel 317.632.1100 Fax 317.635.6127 www.crowehorwath.com CITY OF SOUTH BEND, INDIANA South Bend, Indiana PURPOSE OF THE REPORT Crowe Horwath LLP ( "Crowe ") has performed an analysis of the City of South Bend's (the "City ") distributive share of the St. Joseph's County Economic Development Income Tax ( CEDIT). The results of our analysis are contained in this Consultant's Report (the "Report"). The purpose of this Report is to estimate CEDIT revenue coverage on the outstanding County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 A, the Taxable County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 B (collectively, the "Outstanding Obligations ") and the proposed Economic Development Income Tax Bonds of 2015 (the "Bonds "). The Report is based on estimates, assumptions, and other data developed by Crowe from knowledge of and participation in other CEDIT financings and studies; and data supplied by the City and the State of Indiana Department of Local Government Finance. In the course of preparing this Report, we have not conducted an audit of any financial or supplemental data used in the accompanying exhibits and schedules. We have made certain projections that may vary from actual results because events and circumstances frequently do not occur as estimated and such variances may be material. We have no responsibility to update this Report for events and circumstances occurring after the date of this Report. If you have any questions regarding this Report, please call Herschel Frierson at (317) 269 -2377. C -4 CITY OF SOUTH BEND, INDIANA South Bend, Indiana COUNTY ECONOMIC DEVELOPMENT INCOME TAX (CEDIT) The CEDIT is authorized pursuant to Indiana Code 6 -3.5 -7 and may be imposed on the adjusted gross income of county taxpayers. County taxpayers are individuals who (i) reside in such county on January 1 of the calendar year in which the individual's taxable year commences, or (ii) maintain a principal place of business or employment in such county on January 1 of the calendar year in which the individual's taxable year commences and who do not on that same date reside in another county in which the county adjusted gross income tax ( CAGIT), the county option income tax (COIT) or CEDIT is in effect. "Adjusted Gross Income' under IC 6- 3- 1- 3.5(a) is as defined for individuals in Section 62 of the Internal Revenue Code, subject to certain modifications. In 1995, the St. Joseph County Income Tax Council (the "Income Tax Council ") originally imposed CEDIT on County taxpayers at a rate of one - tenths of one percent (0.1 %), effective July 1, 1995. In 1997, the County Income Tax Council increased CEDIT on County taxpayers to a rate of two- tenths of one percent (0.2 %), effective July 1, 1997. In 2010, the County Income Tax Council increased the CEDIT on County taxpayers to a rate of four - tenths of one percent (0.4 %), effective July 1, 2010. Subject to the limitations provided therein, the CEDIT statute provides for increases or decreases in the tax rate and for rescission of the tax by the body that imposed it. The CEDIT statute expressly states that the Indiana General Assembly may not repeal or amend the CEDIT Statute in a manner that would adversely affect any outstanding bonds payable from CEDIT revenues. CEDIT maybe imposed in increments of 0.1% up to 0.2% and at any multiple of 0.05% above 0.2% but not to exceed 0.5 %. With certain exceptions, in counties in which COIT has been enacted, the combined rates of COIT and CEDIT may not exceed 1%. With certain exceptions, in counties in which CAGIT has been enacted, the combined rates of CAGIT and CEDIT may not exceed 1.25 %. The County Income Tax Council has imposed COIT at an annual rate of six - tenths of one percent (0.6 %). As a result, the combined rate of COIT and CEDIT in St. Joseph County is 1.0 %. The State of Indiana (the "State ") income tax rate, in addition to any applicable CEDIT, COIT and CAGIT tax rates, is currently three and four - tenths percent (3.4 %). The Indiana Department of State Revenue (the "Department of Revenue') is required to collect CEDIT after adoption by the appropriate body in any county. Such collections are credited to a special account within the State general fund until distribution to the enacting county. In addition, any income earned on money credited to such special account is required to be added to each county's CEDIT proceeds. Further, any funds remaining in any county's CEDIT account at the end of a State fiscal year may not be transferred to any other account in the State general fund. Before July 2 of each calendar year, the Department of Revenue, after reviewing the recommendation of the State Budget Agency, shall certify to the county auditor of each adopting county the amount of CEDIT that has been received from that county for the taxable year ending before the calendar year in which the determination has been made, and reported on a tax return processed by the Department of Revenue before July 1 of the calendar year in which the determination has been made. The amount certified is the county's certified distribution, which must be distributed in equal installments on May 1 and November 1 of the following calendar year. The certified distribution may be adjusted for refunds of CEDIT made in the State fiscal year in which the determination has been made, plus the amount of interest in the county's account that has accrued but has not been included in a prior certification. The Department of Revenue shall certify an amount C -5 CITY OF SOUTH BEND, INDIANA South Bend, Indiana County Economic Development Income Tax (Continued) less than the amount collected to offset overpayments made in prior years, or may adjust the certified amount to correct any clerical or mathematical errors made in any previous certification. The county auditor is to distribute CEDIT revenues (i) based on the proportionate share of the allocation amount of the City and each city, town and the county (each, a "unit ") to the total allocation amount of the City and all units within the county, or (ii) for counties that adopt CEDIT after June 1, 1992, upon passage of an ordinance by the appropriate body, based on each unit's proportionate share of population within the county to the total population of the county. The County Income Tax Council has adopted an ordinance to provide that CEDIT in St. Joseph County will be distributed based upon the allocation amount formula per IC 6- 3.5- 6 -1.1. The county and each city and town in a county are entitled to a share of the county's certified distribution; provided that such county or unit has adopted a capital improvement plan under Indiana Code 6- 3.5 -7 -15 (the "Plan ") that specifies the uses for which CEDIT will be disbursed. A Plan must identify projects to be funded from CEDIT proceeds, provide total cost estimates for each project, and supply a schedule for the planning, development and construction of each project. The Plan must encompass a period of not less than two years and must provide for the expenditure of at least 75% of CEDIT to be received by such unit during the period that such Plan is in operation. If the county or a unit in the county fails to adopt a Plan or designate the county or another unit in the county as the recipient of its share of the distribution, that county or unit may not receive its CEDIT distribution. The county treasurer will retain such distribution and any designated distribution for such county or unit in a separate account until the county or unit adopts a Plan. If the county or unit fails to adopt a Plan for three succeeding years, the balance in such account will be distributed to the county or other units in the county that have adopted a Plan. Such redistribution will be based on property taxes first due and payable to the county or units during the calendar year in which the three year period expires. For a project to be paid for or financed with bonds or leases payable from CEDIT, it must be (i) deemed an "economic development project" by the county or unit within the county receiving such revenues or (ii) a capital project for which the county or unit could issue general obligation bonds. An "economic development project" is any project that promotes gainful employment, attracts a major new business enterprise or retains or expands a business enterprise within the jurisdiction; and involves expenditures for a combination of, or singly, the purchase of land, infrastructure improvements, enlargement or construction of buildings, and the acquisition of machinery, furniture and fixtures. The CEDIT statute provides that CEDIT may be pledged to defray the debt service for bonds or long term lease rentals to undertake improvements and expenditures pursuant to a Plan. If bonds are issued and outstanding pursuant to the CEDIT Statute, a county income tax council or a county council may not reduce the CEDIT rate below a rate that would (or could be projected to) produce 1.25 times the maximum annual debt service on such bonds. The calculation for such minimum tax rate must be based on the average of the county's preceding three years' tax collections. C -6 CITY OF SOUTH BEND, INDIANA South Bend, Indiana DISCUSSION OF RISK FACTORS Readers of this Report should be aware and take into account the risk factors related to estimates and other events which are beyond the control of the City. These risk factors include but are not limited to the following matters concerning this Report: 1. The Bonds are secured by the CEDIT Revenues and if such CEDIT Revenues are insufficient, the City is not obligated to pay the principal of or the interest on the Bonds from any other revenues, funds or taxes. 2. There can be no assurance that CEDIT Revenues will continue to be collected at the levels indicated in this Report. 3. The rate at which the CEDIT is imposed cannot be modified unless the St. Joseph County Income Tax Council (the "County Income Tax Council') takes the necessary action. The County Income Tax Council is prohibited by statute from taking any action that would result in a civil taxing unit having a smaller distributive share than the share to which it was entitled when it pledged the CEDIT revenues. 4. The Indiana Legislature or an administrative agency with jurisdiction in the matter could modify or enact new laws or regulations or a court of competent jurisdiction could interpret the laws or regulations governing all matters associated with CEDIT Revenues in a manner that may negatively affect the owners of the Bonds. 5. Adverse economic conditions in the County, the State or the United States could result in a reduction in the adjusted gross income of qualifying taxpayers in the County and, therefore, a reduction in CEDIT revenues. Such adverse economic conditions could include a general economic downturn, strikes, lay -offs or plant closings in the County, a reduction in the number of taxpayers in the County or a reduction in the aggregate adjusted gross income of the County taxpayers. 6. Local area or statewide delinquencies in State income tax collections could result in reduced CEDIT receipts. SUMMARY OF SIGNIFICANT ASSUMPTIONS 1. No increase in CEDIT distributions has been assumed for purposes of estimating CEDIT revenues during the forecast period. (Exhibit C). 2. It has been assumed that there will not be any changes in the general demographics of the County, nor in the City, in terms of populations, work force, or personal income of a material nature. 3. The debt service reserve will be fully funded from the proceeds of the Bonds. C -7 CITY OF SOUTH BEND, INDIANA South Bend, Indiana Summary of Significant Assumptions (Continued) 4. No change in CEDIT tax rate has been assumed in the forecast period. 5. All laws and statutes in effect at the time of this Report are assumed to remain in effect throughout the projection period. Crowe makes no assertions as to changes in legislation and legal interpretations. C -8 EXHIBIT A CITY OF SOUTH BEND South Bend, Indiana Proposed Economic Development Income Tax Bonds of 2015 Estimated Sources and Uses of Funds Sources of Funds: Par Amount of Bonds $ 5,580,000 Total Sources of Funds $ 5,580,000 Uses of Funds Project Fund $ 5,000,959 Debt Service Reserve Fund 419,241 Underwriter's Discount 55,800 Costs of Issuance 104,000 Total Uses of Funds $ 5,580,000 C -9 EXHIBIT B CITY OF SOUTH BEND South Bend, Indiana (1) Interest rates presented on this debt service schedule are estimated and subject to change. We make no assertion that these rates will be the actual interest rates achieved at the time debt is issued by the City. C -10 Proposed Economic Development Income Tax Bonds of 2015 Estimated Amortization Schedule Fiscal Date Principal Rate (1) Interest Total Total 8/1/15 $ 90,000 1.80 % $ 89,408 $ 179,408 2/1/16 90,000 1.80 107,930 197,930 $ 377,338 8/1/16 100,000 2.05 107,120 207,120 2/1/17 105,000 2.05 106,095 211,095 418,215 8/1/17 105,000 2.40 105,019 210,019 2/1/18 105,000 2.40 103,759 208,759 418,778 8/1/18 110,000 2.75 102,499 212,499 2/1/19 105,000 2.75 100,986 205,986 418,485 8/1/19 105,000 3.05 99,543 204,543 2/1/20 115,000 3.05 97,941 212,941 417,484 8/1/20 110,000 3.35 96,188 206,188 2/1121 115,000 3.35 94,345 209,345 415,533 8/1/21 115,000 3.65 92,419 207,419 211/22 120,000 3.65 90,320 210,320 417,739 8/1/22 125,000 3.80 88,130 213,130 2/1/23 120,000 3.80 85,755 205,755 418,885 8/1/23 125,000 3.90 83,475 208,475 2/1/24 125,000 3.90 81,038 206,038 414,513 8/1/24 130,000 4.00 78,600 208,600 2/1/25 130,000 4.00 76,000 206,000 414,600 8/1/25 140,000 4.10 73,400 213,400 2/1/26 135,000 4.10 70,530 205,530 418,930 8/1/26 140,000 4.15 67,763 207,763 2/1/27 145,000 4.15 64,858 209,858 417,621 8/1/27 145,000 4.25 61,849 206,849 2/1/28 150,000 4.25 58,768 208,768 415,617 8/1/28 155,000 4.30 55,580 210,580 2/1/29 155,000 4.30 52,248 207,248 417,828 8/1/29 165,000 4.35 48,915 213,915 2/1/30 160,000 4.35 45,326 205,326 419,241 8/1/30 165,000 4.40 41,846 206,846 2/1/31 170,000 4.40 38,216 208,216 415,062 8/1/31 175,000 4.45 34,476 209,476 2/1/32 175,000 4.45 30,583 205,583 415,059 8/1/32 185,000 4.55 26,689 211,689 2/1/33 185,000 4.55 22,480 207,480 419,169 8/1/33 190,000 4.60 18,271 208,271 2/1/34 195,000 4.60 13,901 208,901 417,172 8/1/34 205,000 4.65 9,416 214,416 2/1/35 200,000 4.65 4,650 204,650 419,066 Totals $ 5,580,000 $ 2,726,335 $ 8,306,335 (1) Interest rates presented on this debt service schedule are estimated and subject to change. We make no assertion that these rates will be the actual interest rates achieved at the time debt is issued by the City. C -10 EXHIBIT C m o M V O V N co O M M O N mm O O O O O O LO a0 1— v v v v v v v v v v v v v v v vv v °v U N N N N N N N N CV N N N N N N N N (V U WO c W WOMM C) c) C:) CND LO CO Lo O r V O t` O a0 t` V t` O� O O N N r r N N� ED 0 to co (co � N OD ((D co co CD (D(0 (O CO OOO(D (0 (0 � CO(O (D( (O (O (0 (0 0i OD m W m m m m m m m m m m m W m W Wm al � 0 w W U 6p N CO M M O V M W M O O CO N W W N O CO n U 'Z M W M M M O M N N N qlr CO t0 (O r CO r W n V V' (0 � W Cn O W (O CD O N O O r 0 N NO 06 c t` m 1- 06 v V 06 h m r m Cn m 0)- t'-- M- m �O M u07 N M V V V v V v V v 7 v v T v v V ui (0 r r 0 i ❑ L O U N a (O') O � NO O - N r- v Cl) (W7 OD C) MO N v (ND (WO (WO (Op MNn v V' On 00 Lo (D W co (D 0ON OOr rO O NO m oD N a() Ih to I� N 'R V ob I� (f) 1� Oi tfi to Oi f- 6i $ U) Q L= O C'� v v v v v v v V V v V V v v V '7 V v 7 c N d d W 0 U 64 V Zm a W N N C C co N 0) 0 c O °u H C � C � N C YO 0 � r OD a O > F- U n OD OD m 00 a LL e> o F- 0 0 W C 'OM 00 O VN L c (�� (U mom W C MN v E a CO U c m o N 4 (a W N O K > m _0 g H 0 O p a C m f9 ;= F�F 2 q N O O n 0 Q M V O C C m 0 O co £ m C �v a)o W O O N U a` N m V! 0 n m v `m -O r M co m m M m Cl) (7 m M M M m co M Cl) Cl) M M f7 CA N rn M M M M M M M M M M M M M M M M M C+1 Cl) CO a (0O N 0)mCAmmmmmmmmmmmmmWmmm W CC 7 n r r h� n W C O O O O O O O O O O O O O O O O O O O O y W U N C 0 CT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 U r r r r r r r r r r r r r r r r n U U d N 0 D 0 tom_ 0 % � CO (6I l0 CO f� N W O ((�� M t1' O (0 � m W O N M r N N N N N N N N N N M M M M co m��� y W > O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m /n a% N N N N N N N N N N N N N N N N N N N N fn fn v C -11 SCHEDULE C -1 CITY OF SOUTH BEND South Bend, Indiana County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 A Amortization Schedule C -12 Fiscal Date Principal Rate Interest Total Total 8/1/15 $ 205,000 4.00 % $ 17,200 $ 222,200 2/1/16 210,000 4.00 13,100 223,100 $ 445,300 8/1/16 220,000 4.00 8,900 228,900 2/1/17 225,000 4.00 4,500 229,500 458,400 Totals $ 860,000 $ 43,700 $ 903,700 C -12 SCHEDULE C -2 CITY OF SOUTH BEND South Bend, Indiana Taxable County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 B Amortization Schedule C -13 Fiscal Date Principal Rate Interest Total Total 8/1/15 $ 195,000 5.30 % $ 21,333 $ 216,333 2/1/16 200,000 5.30 16,165 216,165 $ 432,498 8/1/16 205,000 5.30 10,865 215,865 2/1/17 205,000 5.30 5,433 210,433 426,298 Totals $ 805,000 $ 53,796 $ 858,796 C -13 APPENDIX D BOND ORDINANCE (To be provided by Bond Counsel) D -1 APPENDIX E BOOK - ENTRY -ONLY SYSTEM E -1 BOOK - ENTRY -ONLY SYSTEM DTC will act as securities depository for the Bonds. The Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully - registered bond certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest securities depository, is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ( "Direct Participants ") deposit with DTC. DTC also facilitates the post - trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ( "DTCC "). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants"). DTC has Standard & Poor's rating "AA + ". The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ( "Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect E -2 Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, defaults, and proposed amendments to the Agreement. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the Record Date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the Record Date (identified in a listing attached to the Omnibus Proxy). Principal, premium and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name ", and will be the responsibility of such Participant and not of DTC (nor its nominee), the Paying Agent or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Registrar. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. E -3 Discontinuation of Book -Entry System In the event that the book -entry system for the Bonds is discontinued, the Registrar would provide for the registration of the Bonds in the name of the Beneficial Owners thereof. The City and the Registrar would treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purposes of making and receiving payment of the principal thereof and interest thereon, and for all other purposes, and the City would not be bound by any notice or knowledge to the contrary. E -4 APPENDIX F FORM OF BOND COUNSEL OPINION (To be provided by Bond Counsel) F -1 APPENDIX G FORM OF CONTINUING DISCLOSURE UNDERTAKING AGREEMENT (To be provided by Bond Counsel) G -1 APPENDIX H NOTICE OF INTENT TO SELL (To be provided by Bond Counsel) H -1 APPENDIX I BID FORM 1 -1 BID FORM (Optional) PROPOSAL FOR PURCHASE OF $5,580,000 City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 To the Controller of the City of South Bend, Indiana: The undersigned herewith submits its sealed proposal for the purchase of the following described bonds of the City of South Bend, Indiana (the "Issuer "): Designation of issue: Economic Development Income Tax Bonds of 2015 Amount of issue: $5,580,000 Dated: Date of Delivery Delivery: Issuer is expected to have the Bonds ready for delivery to the successful bidder on or about March 3, 2015. Discount: The Bonds will be sold at a price of not less than 99% of the par value. Interest: First payment August 1, 2015, and semi - annually thereafter. Interest Rate Bid: Interest rate bid not to exceed 6.0 %. The interest rate bid on any maturity must be no less than the interest rate bid on any and all prior maturities. Interest rate bids shall be in multiples of one - eighth (1/8), one - twentieth (1/20) or one - hundredth (1/100) of one percent (1.00 %). Denomination: $5,000 or integral multiples in excess thereof. Maturities: The Bonds are scheduled to mature on February 1 and August 1 on the dates and amounts as follows: Date Principal Date Principal Date Principal Date Principal 8/1/15 $ 90,000 8/1/20 $ 110,000 8/1/25 $ 140,000 8/1/30 $ 165,000 2/1/16 90,000 2/1/21 115,000 2/1/26 135,000 211/31 170,000 8/1116 100,000 8/1/21 115,000 8/1126 140,000 8/1/31 175,000 2/1117 105,000 2/1/22 120,000 2/1/27 145,000 211/32 175,000 811/17 105,000 8/122 125,000 8/1/27 145,000 8/1/32 185,000 2/1/18 105,000 2/123 120,000 2/128 150,000 2/1/33 185,000 8/1/18 110,000 81123 125,000 8/128 155,000 8/1/33 190,000 211/19 105,000 2/124 125,000 2/129 155,000 211/34 195,000 8/1/19 105,000 8/124 130,000 8/129 165,000 8/1134 205,000 2/120 115,000 2/125 130,000 211/30 160,000 2/1/35 200,000 1 -2 For all of the above - mentioned bonds, bearing interest at the following rates of interest per annum The undersigned will pay the sum of Five Million Five Hundred Eighty Thousand Dollars ($5,580,000), computed at the interest rate or rates herein named, and a premium (discount) of $ The transcript of the proceedings, closing certificates showing no litigation, the unqualified approving opinion of Frost Brown Todd LLC, Bond Counsel, Indianapolis, Indiana, and the printed bond forms with the legal opinion printed thereon will be furnished by the City. A duly certified check or cashier's check drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation payable to the City in the amount of Fifty -Five Thousand Eight Hundred Dollars ($55,800), which check shall be held by the City as a guaranty of the performance of this bid, will be provided within one day after the sale of the Bonds. This requirement may also be met with cash or a wire transfer. Dated this day of February, 2015 or Names of Bidder By: Authorized Officer or Agent Address of Authorized Officer or Agent Net dollar interest cost $ Phone Number: Net interest rate % Fax Number: Accepted this _ day of February_, 2015. John Murphy, Controller of the City of South Bend, Indiana 1 -3 Interest Interest Interest Interest Date Principal Rate Date Principal Rate Date Principal Rate Date Principal Rate 811/15 $90,000 % 8/1/20 $110,000 % 8/1/25 $140,000 % 8/1/30 $165,000 % 2/1/16 90,000 2/1/21 115,000 2/1/26 135,000 2/1/31 170,000 8/1/16 100,000 8/1/21 115,000 811126 140,000 811131 175,000 211/17 105,000 2/1/22 120,000 211/27 145,000 2/1132 175,000 811117 105,000 811/22 125,000 8/1127 145,000 8/1/32 185,000 2/1/18 105,000 21123 120,000 2/1128 150,000 2/1133 185,000 8/1/18 110,000 8/123 125,000 811/28 155,000 8/1133 190,000 2/1119 105,000 21124 125,000 211129 155,000 2/1/34 195,000 8/1119 105,000 8/1/24 130,000 8/129 165,000 8/1/34 205,000 2/120 115,000 2/125 130,000 211/30 160,000 2/1135 200,000 The undersigned will pay the sum of Five Million Five Hundred Eighty Thousand Dollars ($5,580,000), computed at the interest rate or rates herein named, and a premium (discount) of $ The transcript of the proceedings, closing certificates showing no litigation, the unqualified approving opinion of Frost Brown Todd LLC, Bond Counsel, Indianapolis, Indiana, and the printed bond forms with the legal opinion printed thereon will be furnished by the City. A duly certified check or cashier's check drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation payable to the City in the amount of Fifty -Five Thousand Eight Hundred Dollars ($55,800), which check shall be held by the City as a guaranty of the performance of this bid, will be provided within one day after the sale of the Bonds. This requirement may also be met with cash or a wire transfer. Dated this day of February, 2015 or Names of Bidder By: Authorized Officer or Agent Address of Authorized Officer or Agent Net dollar interest cost $ Phone Number: Net interest rate % Fax Number: Accepted this _ day of February_, 2015. John Murphy, Controller of the City of South Bend, Indiana 1 -3 THIS PAGE INTENTIONALLY LEFT BLANK L'u 00, ► S- © ( 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 4315 S. Lafayette Blvd, South Bend IN 46614 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR Heraeus Kulzer LLC WHEREAS, a petition for personal 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 4315 S. Lafayette Blvd, South Bend, Indiana, and which is more particularly described as follows: Dental equipment and supply manufacturing equipment. and which has Key Numbers 71- 023 - 22494 -00, be designated as an Economic Revitalization Area under the provisions of Indiana Code 6 -1.1 -12.1 et sea., and South Bend Municipal Code Sections 2- 76 et sea., 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., and South Bend Municipal Code Sections 2 -76, et sey., 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 pursuant to Indiana Code 6 -1.1- 12.1-4.5 et sea., that: a. The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type; b. That the estimate of the number of individuals that will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed installation of new manufacturing equipment; C. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION 11. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that 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 -4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community Investment, and the Community Investment Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of (5) five years as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5 -3 -1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. a4mv- of thIs W I only t0 ¢tuft opporhmiy for pubic hearing i GGY11G� ac w on this PRESENTE[) NOT APPRoYifl RnOPTEO •+O' of the Common 0,� t CITY W. JEFFERSON BOULEVARD ,,UITE 1400S. SOUTH BEND, IN 46601 -1930 January 13, 2015 CITY OF SOUTH BEND PETE BUTT om, 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 RE: Personal Property Tax Abatement Petition for: Heraeus Kulzer LLC Dear Council Member Ferlic: PHONE: 574/235 -9371 FAX: 574/235 -9021 Please find attached the Department of Community Investment's report on a personal property tax abatement petition for the above - referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the acquisition and installation of new equipment as part of the company's expansion of production product line. The report contains the Department's findings relative to the above petition. Heraeus Kulzer LLC will be purchasing and installing new equipment. The total project cost for the equipment is estimated at $ 1,496,336. The project meets the qualifications for a (5) five - year personal property tax abatement and a representative from Heraeus Kulzer LLC will be available to meet with the Committee on January 26, 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. Se/� T Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVLLOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C. MEYER CHRIS RELDING aROCKZEEB 227 w. JI(FEEIMN 13OUI.EVARD Suw( 14005. Sm i rl Ilan. IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB PHONR:574/235 -9371 FAX: 574/135 -9021 SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: HERAEUS KULZER, LLC DATE: January 14, 2015 On Monday, January. 12, 2015 a petition was received for personal property tax abatement consideration. The property will be located at 4315 S. Lafayette Blvd, South Bend, is filed with the City Clerk by Heraeus Kulzer, LLC. 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 1.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 Dcntal equipment and Supply manufacturing equipment. New project taxes will be $108,325. Total taxes to be abated during the (5) five -year abatement period are estimated at $ 53,811. Total taxes to be paid over five years on the new and existing equipment are estimated at $54,514. EMPLOYMENTIMPACT Per the petition, it is estimated that the total project will: (a) create two (2) permanent, full - time and zero (0) permanent, part-time jobs within the first year, representing a new annual payroll of $ 95,680 and (b) will maintain 90 existing permanent full -time and zero (0) PI.AN'NING NEIGHBORiIOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES J111N KAIN P.ANIM A C MEYER CI IRIS Flumm, HRrx'K ZI.F11 existing part-time jobs with a payroll of $ 5,803,200 . The project will create 10 jobs over ten years with a payroll of $478,400. ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous abatements. 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 is located in the South Side Development Area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement. January 14, 2015 p. 2 Heraeus Kulzer, LLC of South Bend v ,,t Irr4r, =City ` What b to value of any equipment Ming etition for Incentives No - - amust $250fllingfee payable to the City Clerk's Office before processing con be complete called ° JOHN Vnn• General Information Project Na 417397 Lepl name as registered with SeaeUry of Mee enl been Installed No — Heraeus Kinzer, LLC $2.000,000 Business grvature LLC fonp'any website www heraeua- kulzer -us corn Proposed Project Proposed projetladdressr 43155 Lafayette Blvd (300 Heraeus Wa parenlmmW "Vnams / Mitsui Chemicals Inc (MC) Ciry, State, ilp South Bend. IN 46614 -2557 Legal owner yleraeus KNrer 1: C I Site aaeaee or acreaee reauirea Square poll Of facility Owned 100k. II leased LY whom ,.,many company conun name IKna Gross ITilln Director of Finance Address of p ny ion J00 Heraeus Way Phone 514- 299 -5401 City, State Zip South Bend, IN 46614 Email cam , __..._. _...__.__ ... _ P Christopher Holden e I President Address of company contact (If different from Mane above) 574 - 299 -5400 t'Y's nNZlp Email cons holden@kelzer.denta! ran " ....._ "' " " "° McGledreyrtric Levenhagen Censunanl release IY /NI Y _- Address 9225 Priority Way W Drive Suite 300 loWl<wnomk daebpment Wdrwn ih/ 1 y City, Stale Zip Indianapolis. IN 46240 la"w cite kvenhe l ger�:rmgledrey cam Option ofyour Project, anthe Heraeus Kulzet Is IM "dd's leading dental esthetics Company with its headquarters In Hanau. Germany Its Dental why tMaterials and Digital Services divisions supply dentists and dental tecMmians with an extensive Product ran s neussary far W, covering capan ea lisui anlh ps Grow since 01 pThe onlolopy and n HO a s Opie gereeus Kuleer Sn Men pad of the growth Japanese bing f om Armonk Group s!nce JWy 2013 The Nodh American HO has Peen !o,:ated in Soot Bend since 2006 after reloealing from Ammnk NV The company is evaluating to lau ^ch a new dental product in Lox Mgeles with a sister wnpany to Heraeus Kuleer or in INS current South Bend loralmr Ilerann Kuber is upgramng the dental RAIL lab n Sou1n fiend to prepare ra. more 10 manefactudng and scanners to 180140te more growth opponun!xs The company lust aninled an Italian ramW ^y. Enhanced Geometry Sulugons, Itus October and they a•e evaluating whether (heir new product launch for !hgAnIol dentistry could occur in Europe or South Bend by the end of 2015 If this more Production arnes n SCI Bend, ten 01e Company will need to upgrade their R&D dental lab with new software and scanners along with pgnin al training an IM dgitized dent stry product software They are very mteresbd m local assistance to upgrade then fiber optic nehvorb whit the MCIMNCI System for high Speed hardWdh and more data security I Filed I, Certified Technefogy Park appropbte No Community Revitalization Enhancement What b to value of any equipment Ming n No - - Caney Mat Me euilen; Permit has not been y Numbff of residential units allied by called ° JOHN Vnn• If thh Is a Petition he personal property, tea abatement. has Mee enl been Installed No — pubik Irb"trugure needs(0fl- Has any 504 funding been What 1, the value of any equipment being purchased In What b to value of any equipment Ming site of Project in dolan) received? Indiana to tae gojeg7 Purchased from out of gate for the Project $25.000 No 5285609 $2.000,000 R . -UIIN tull-firre Permanent Indiana-Resident Calendm Yem labs retained Positions by total Aout Calendar Year Cumulative l of net NEW full thee Houdy avenge wage. w/o Total trolning Total Nto be wasew /o permanent lobs crated at proJecl funeffts or bonuseq of expenditure• trained -not Hope or mmuletive net new lobs rwt cumulative bonuses [umulallve 2014 90 31 25 2 .1300 $20.000 a 2015 5 2300 590,000 79 2016 9 23 00 $100,000 94 2047 10 2300 2018 2019 2020 2021 2022 2023 2024 2025 full time part alone r taborers Cathetwl $23 00 Menagerie) o whil ndminbbi a truaindrited.actomearnorep, their coordii—airt. .. Hna Gnisa I'" " "" .... a.vrn.1nap.r"11No I Are You an CEOemploywi Vo diwraiq aM Induslon by delallh, your year outoadr and rewArnent efforts for the le Nree "amp well as orment polities. full Time parl7irtle full Time part Time full Time part Tkm Company deep not re0ewe :hal !heir empWyees pmvNe elhrou.q. au therefore they do ml aaCk it 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 wmpanies and the companies which will provide materials purchased for this project. Please complete the table below with the appropriate Information. If you qua)))y for the points, please enter the full amount of available points. es or N (Yes or No) Earned Points Available Palms 1 Cnnnructlon Relatedl Ontractors1 A. Employ Local Companies (75%) Yes 20 20 e. Purchase Materials from Local Companies (75 %) No 0 20 C. Require Employees vs. Independent Contactors Yes 19 19 D. Require Prevailing Wage jDavls Bacon) Yes 22 22 E. Require Health Benefits Yes 22 22 F. Require Pension Benefits Yes 18 18 G. Maintain Affirmative Action Plan Yes 20 20 Subtotal Wostructlon Related: 121 141 2 Wane & Benefit Related (Owner): A. Pay Target Wage Levels Yes 33 33 e. Provide Health Benefits Yes 34 34 C. Provide Pension Benefits Yes 20 29 D. Provide Training Yes 20 28 E. Provide Child Care No 15 F. Provide Transportation Assistance No 14 G. Provide Employer Assisted Housing program No 9 Sub -total Wage & Benefit Related) 124 162 3 Workforce Related: A. Create New lobs I Yes 42 42 B. Retain Existing Jobs Yes 41 41 C. Maintain Affirmative Action Plan Yes 35 35 D. Provide Targeted Hong Preference Yes 34 34 Sub -total Workforce Related: 152 1.52 4 Suwon a Munl dual Facgny: A. Support a SO Munklpal Facility (donations to the zoo, conservatory, museum, etc) Yee e4 84 Name of Fsclnty Subtotal Municipal Facilltyl bt 84 Subtotal from Above: 491 539 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 properly tax abatement consideration and pursuant to I.C., 6.1.1. 12.1 -1, et sea., and South Bend 11t4upicipa)0de Sec. 2 -76 et sea.. for this petition state the abovn. he arreot assessed value? Real Property: $1,332.100 Personal Property; What he protected ass<sutl value? Real Property: %l.12 Y,,� Persons) Property: F914,244 he lax keynumber forthisprolect7 FFIN 26- 35f5Y26lFamtl 111 ;168- 26200-011000 -302 he six digit NAICF code? 339'14 tach a Gootle map and street view o(the butiPn. SeC Atta ched 5lee.0 the amount ofml and perxnal property tares e last five years when applicable. Real Property Taxes: Personal Property Texts; Year One YearTwo Year Three Year Four Year Five Staff Use Onlit Please fill out the Public Benefit Summary Information and add to the total from above. (Yor N) points Points Public Benefit Item: Pro cl Related. 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 35 C. lAchlevea Physical Element of a Plan 36 Sub -total Project 0.e fated: d 120 6 Super Size Protects looint values are cumulative); A. 100% to 199% B. 20D% to 299% 68 C. 1300%t.399% 65 D. 140D% and Over 52 Sub•rotal Super Size Projects: 0 21.) 7 Pav for MuNigal inrrastruaure: A. Pay for Ovet ing or UPi:radiva 14 B. Pay for 26-50% of Extension Cost C. Pay for 51-75% of Extension Cost 39 D. Pay for 76 -lOD% of Extension Cost Sub -total Infrastructure Related: 0 1,1 Total from Applicant Section: 481 53 P Total from Staff Section: 0 4E I Total Public Benefit Points: 481 1,3f.O 'i �yR L'�� X Y 'P ` T gR, b �., FFc;Yr� �ig,.;!1>.s�_ iA�.., -..�. e WhaUS the amronl assasadwluet Real P.P.W. 31.332.100 Personal Property; What is Ina Proledcd 4"Issed value? Real PmPerN; gTJ2.C2o Personal Property; Eaf 4,204 Whalls the lax aeynumber fardila proledt FEiN 2M1 35(IbM 7 Panal Fla 71.08 25 200411 opnoox What Is the de OgIt NAILS adet 999tio Please attach a GooSle map admeat w. of the Ioau.n. See Ntecned Please 1161 the amount offal and personal properly taxes oald for the Fail Rve Years when.pplluble. Real P /Oporly Texas: Parmnal Pmparh Terse, . Year 0. _ - -- YurT. - -�— Year Thraa ---- -' - "_I Year pour ear Five • or Points I I Poln[s PU611c Benefit Item: ' -' Prn ect Rel�rted; 5 A. R¢devebp J bite that has Sp¢clJl N¢¢ds 49 B. Develop Based on local UniveslN ResearM 35 C Achleve a Physical Element of a Plan 36 Sub -total Pro)ezt Related: 1 0 120 b $over Size Ptolectr lnoint valuer are cumulativSk A. 200% to 199% 25 B. 200% to 299% 68 C. 300 %to 399% 65 D. ADD%end Over 52 Sub -total Super Size Projects: o 230 7 rav rPr1f'7�9LISIfT1(Ydbrc• A. Pay for lovers, go, Upgrading 14 B. Payfor2f+50 %of Eatenslon Cost 26 C. PEY for 51.75% of ERteOpoo COSt 39 D. Pay for 76100% of Ealenslon Cori 52 ub S-tota0nfrartrlldvre Malted: 0 t3] Total from Applicant Section: gal 539 Total from Staff Section: 0 067 Total Public Benefit Points: let 1rJly1 Heraeus Kulzer Inc - Googlc Maps Page 1 of I `+ i Fif�f1 ce 72 iul5 } 1 IT h -;L-ND IN -_ h ttps: / /www. google.com /maps /pl ace /1 leracus +Kul zer +Inc /((;41.6302348, -86.2536072,3 a,... 12/17/2014 Filed ,� I4fice r ORSTATEMENT OF BENEFITS FORM SB -1 I PP PERSONAL PROPERTY q ! l _.. State Form 61764 (RJ/12 -t J) tM2 G.015 Prescribed by the Department of Local Government F ante _ sz PRIVACY NOTICE Nry norrneomr r.o u nr nn ie p rin: , nt JQT :. + nl Inn rnpony and N•lare I y -[:" to euavldval mnitoyoas bV ... ry.. enY CITY CLERK, � a },dElt?Dr IN doom is ronmlemn,l pvl II; m I t w rli I INSTRUCTIONS -- - - -- — - Y. 71tls slatanlnpf meal he Still roillot/ to the body dungnpting rile Eeonnmic Revdnf iotion Alen prim In Ilia public hennng it Ilia dosignalerg body requires bnnnnnlmn Iron the apparnrrl in ntpaur9 its dace:..... about whrlhar to rhrslg +Iola un Fconarnk liovnnllznlion Aran Olhensdse Iles sbdemenf meat be m tin lll0d to the deslgualing hr Kly BEFORE n I.....on ....Will I/m noly mn I'docrunirg aquipmeaf alef /ar rasrmch and development er/ulpmenf, and(or 1...111( /[en 01VIIbulion vlodpnrenl andlcr inforr.moo incline logy uqu4unenl for whirl, Iho im,s n wishes In choo, n dodl+clion. 2. The statement of benefits torn must be submitted to the designating body and the area designated on economic revitalization area before the Installation of qualifying abeleble equipment for which the person desires to claim a deduction. 1 Ili obildo a OcdurPon, n person mu:a Ali- a rmafied rlcrlu:-llon • tchedule wdn file person's parsolml prupm!y n.•hrrn all a celnhrd dcducadn srhedd /d it alln 103 Rol) with the (nrmslup a:•se. +sor or flip rmvnmq, who +o the properly is .hurtled or tI ilil the manly assessor if thmo rs all torvnShip essassw for Iho lowaship. lilt 103 1leA nwst fill 1,6d hrlwtron March I will May If, of file nssassrnent year In which new inanulaclumrq equipment and/or tu.sean:h and devetopnreni ngerprnenl nods, Icgrslrca/ dishlbulion oqulpnlem a rldRn mfoonatlon lochnulugy equlpmunl is installed and fully functinnp( unless a liter./ nvlanrann ha,s beer, ebfibood A ponww, who obtains to filing off, mn must life file loan bahveco Match I and Ibe exReWod due date of that year. 4. Property owners whose Statement of Benefits was approved, must submit Form CF -1oFP annually to show compliance with the Statement of Benefits pc S. fore Form 584rPP that Is approved aderJune 30, 2013, the designating body Is required to establish an abatement schedule foreach deduction a /lowed. Fore Form SB4rPP that is approved pdorto July 1, 2013, me abatement schedule approved by the designating body remains In effect. (IC 6-1.1- 12.1.17) SECTION •- Name of ta•peyer Name, of contact person Harems Kulzer, LLC -- Kira Galas, Director of Finance ._.__._._. _..._..- sr - -- -- ---- - ndJrns•mbepayer(nmm�nr and street. Nly, sPole, and ZIP Code) _ — -- --._-' - - --- 7sNpnwre numb•I 300 Heraeus Way, South Bend, IN 46614 -2517 ( 574 ) 299.5401 SECTION2 LOCATION OF -r -. Name or dan"nnling body Rasolution wmbnr (s) City of South Bend Location Mproperty county , DICp Ie•Ina di.irid nunioor 300 Heraeus Way, South Bend, IN 46614 -2517 ST JOSEPH _ . -- Q I i .� _ — Ud:;rripunn of mnnufnc(udn0 ogwpwnnl dudon manna -n and drvvlopolvni equnnnonl ESTIMATEIJ_ .wdlo' InginimM dishlhtdiall &tinpmunl and+nr Inlolmabnn teclmoWgy equipment Il/ar uddllonal s /a•rts it naarssatYJ - -- ON START DATE COMPLETION —_ G -- START - ON DA r rqup,mnnt Scanners for digitized dentistry products and IT Hardware for R&D lab Manufacturing Equipment R i D Equipment Loglst Dist Equipment -_ - -- -- - IT Equipment 02101ROIS 121312017 SECTION OF • AND SALARIES AS RESULT OF ••• a PROJECT tortoni number Sulanos Numow relsmod 9olane> NVlilbnf adoledrwl Sohnlo• 90 35,850,000 90 $5,860,000 10 $520,000 SECTION4 ESTIMATED TOTAL COST I VALUE OF •••• • PROJECT NOTE: Pursuant to IC 6 -1.1- 12.1.5.1 (d) (2) the MANUFACTURING EUl11P ENT R i D EQUIPMENT LOGIST DIST IT EQUIPMENT _ EQUIPMENT COST of the property Is confidential. COST n: "'LI' °`n COST ti;5E S8En _ _00 - ____. _ COST A$Se:SSEO ST AIALU En VALUE \MLUE W.1 VALUE Current values —.. ._ _ —_. _.- __ -- ._. Plus estimated vasles of proposotl pro's,( _ 2,28_5,60_9 _ 914,244 Less values of any propedy belpg_re laced _ 914.244 Net estimated values upon complell nn of projma SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY TI Estimated solid waste converted (pounds) Estimated hazardous waste oonveded (pounds) SFCTIONC, TAXPAYER CERTIFICATION I hereby asQfly Wit 11 pre Italians; In this statement are tNe. - r,r- -. �_ .... _. -_.__ _.___ ___..- sy7mdulndq na rtly� •sm)e va t l _ ._ —_ _ -- _. _ rDa1 •qnW rn�r-,td�.)q l � ! r )/ fill 2 I Prtnl•d: 'llaulho edref r Da,m ��_iiZn= _ l�_I.S.`�, Page 1 of 2 We have reviewed our prior actions relating to the designation of this Economic Revitalization Area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1.1 -12.1, provides for the following limitalions: 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 to: 1. Redevelopment or rehabilitation of real estate improvements ❑ Yes ❑ No 2. Residentially distressed areas ❑ Yes ❑ No 3. Occupancy of a vacant building ❑ Yes ❑ No C. The amount of the deduction applicable is limited to f D. Other limitations or conditions E. The deduction is allowed for (see below). We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. (sigwfure and arid Telephone number Date signed (mondr, day, year) • If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under IC 61.12 - 12.1 -4. A. For residentially distressed areas, the deduction period may not exceed five (5) years. B. For redevelopment and rehabilitation or real estate improvements: 1. If 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. tf the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (to) years. C. For vacant buildings, the deduction period may not exceed two (2) years, Page 2 W 2 a f Z W LL 2 O U m E W c W d a Q F�- 0 u D O LL a A E N N 7 Y N 7 v W N S m O T T� u„ e' uu „O � ee L e c a� rc U �o 6 N a � uo a� b tlEg o' b 6 9 zr �' mY:9m Qu FF o° g F ~Y ni S u tl K m n e 57irzii ai S E 6 E E rj _ b � e „fig >@ t cES9 gg5n „98r e�S 5y xE ER E8 lag „ E �REH � @i §a a' e u° F s �� Fmmc N, S�$wry f a N, SNmaS93<em rymrm rvry °ry E7x mmmmmm n �""a SaHVOa 5 �= nN °nnmmmmm a m`Qa U $'mSF'1$6ava: � �GGG� 400 1 U �= 6a�mum z $�on$OOOmO VVP1Im qq�� G�nnCI�I ° M d W Z a o " " =Eg8ggd... u >yg8�3R S . . a„ Wr 2 mA $e4 N.°ry Me mm mm a W�.- %QN$H ++ ppNNM qq a �� H $ N m u �rym G66 .�n� rym ry6 1au�'7'w.i 1 2 gg uro; MI g$gg$g 3 4g$ 92888 .�Q $bier+$$$$$$ d IL 0 m �'rinM�iMi{r'i y m a 92 m uY�0000m000m m °O: a 12' �'i RRRRR2R�RR n d S E 6 E E rj _ b � e „fig >@ t cES9 gg5n „98r e�S 5y xE ER E8 lag „ E �REH � @i §a a' e u° F s w J L v _N D L v U v O L CL al N 00 O cl O Lr) O N U1 � N C � QJ � N n > — c U L (O 4J A -1 .�L U fi3 0 L O a 0 v v v a u v ■_I O 0 0 0 O J r-1 O d 0) a d N L Ln cn O Ln e N V? W C M 00 V a O M C T Y x Q C � .L LL X L L c a n LL a Q) I= O O 0 0 0 O Ln r-1 O -Zi' 0) a W W Ln Ln M N V? V? V? X 9 T Y x Q � a T y a � a O _ N d � 0 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 5021 Nimtz Parkway, South Bend IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TWO (2) YEAR REAL PROPERTY TAX ABATEMENT FOR THE FOSTER GROUP, LLC WHEREAS, a petition for real property tax abatement has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana requesting that the area located at 5021 Nimtz Parkway, South Bend IN which is more particularly described as: Blackthorn Industrial First Minor Sub LOT 1, 11.212 Acs And which has Key Numbers 025- 1018 - 062803 presently at this point in time, be designated as an Economic Revitalization Area under the provisions of Indiana Code § 6 -1.1 -12.1 et seq., and South Bend Municipal Code Sections 2 -76 et seq., 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 seq., and South Bend Municipal Code Sections 2 -76, et seq., 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 this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana 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 confirming 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. PRESENTECI NOT APPRO,VEII JWDOPTEU, " ``1..,r ✓.mss- ��`.: Member of the Common Council Signing of this tfll is only to prv&Je an opporwnity for p&%I° hosing snd QW)d add on this issue, Filet. =� n4 Fa— i CITY C(--- .?, IN 227 W. JEFFERsoN BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 January 15, 2015 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 RE: Real Property Tax Abatement Petition for: The Foster GrouD LLC Dear Council Member Ferlic: PHONE: 574235 -9371 FAX: 574235 -9021 Please find attached the Department of Community Investment's report on a real property tax abatement petition for the above- referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the renovation of 5021 Nimtz Parkway, South Bend IN 46628. The report contains the Department's findings relative to the above petition. The total cost for the renovation is estimated at $1,100,000. The project meets the qualifications for two (2) year Vacant Building real property tax abatement and a representative from The Foster Group LLC will be available to meet with the Committee on January 26, 2015. If approved, the tax abatement will be passed as exception to the local municipal code because the local code did not contemplate the Indiana Code addition of a 2 year vacant building addition. 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. Sincerely, 21�7 Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES Jaw KAR1 PAMELA C. MEYER CHRLS FLEMING BRDCKZEEB 227 W..IEFFERSON BOULEVARD SUITE 1400 S. Sou rli BEND, IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: THE FOSTER GROUP LLC DATE: January 16, 2015 PHONE: 574235 -9371 FAX: 574235 -9021 On January 14, 2015, a petition for real property tax abatement for property located at 5021 Nimtz Parkway South Bend IN was filed with the City Clerk by Foster Group LLC. 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, investigated the area, and makes the following report. PROJECT SUMMARY The Foster Group LLC is purchasing the old Bowne building at 5021 Nimtz Parkway. Foster Group plans on investing $1,100,000 into building renovations and turning the building into a distribution center for Midwest Gun Exchange. Based on a two (2) year abatement schedule, taxes abated would be 152,071 and net tax paid would be $ 92,143. EMPLOYMENTIMPACT Per the petition, it is estimated that the project will (a) create 30 permanent, full time positions within the first two years, representing a new annual payroll of $ 967,200 (b) PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCKZEF.B retain 20 full time positions, representing a payroll of $644,800. The Project will create 40 full time positions over 10 years, representing $1,289,600 of annual payroll. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner, The Foster Group LLC has not been granted any previous abatements. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. The property is located in the River West Development Area District. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a two (2) real property tax abatement under section 1C. 6 -1.1- 12.1- 1(17). "fax Abatement for: The Foster Group, LLC January 16, 2015 J Q 2 0 z Z U p .N u O LL 0 v J � J E a W Q t7 L N N O d L H N E W c m D Q H R R -mm �o 6 1 $ ee z g � >ml rcl ° a a E o� m� $z �wpX s �b yy i S n_ - P t y6 O z °� m E c g Fpm J wE `"- zmu a °z 25 8 25 1O m N Q m E 5J &� m T� s 5 3 E i € 8 s p C�8 a;a FS� oe� m a°g �EE`9of s €Sba e = ;8� E S gal 5 m� �m 9 X' „REF=g >�0 �gE�n 0000000 m$w C $o T g z Fo' S E ° o�sossssss a < 5's »" U NN N �m Y1 Y� P'm' 0 ry. P0000 iw'L rV1 rV4 rO! ni n♦{ ai000 Vry yY o? U' 3 $$33333188 Q- j „non ri ri „ „nrn ei r'i n m 2 0o Qo�B Q5=00000000 3 m ' - .F ae 88888888.8 i�R �RX3ii- dsggo °� Qu a m:ssoosssseo w 90N H 2 e� U �g ;a--- ---- -- 888� ��5. oc 02 > . cx° a3 Fi,FnR ^n F, �i��n 2 uEC9i �a »nnnniri� „'iri =�� 5�gpgQQ 333311$333 ggQ 11 P n n z 5�5�5�y �ii3333ii.R, Q5�QQ E3nnnnnn�n�n 2 m$ooa000000 gj in E m °9 q)RR�IVsNNNryR 25 8 25 1O m N Q m E 5J &� m T� s 5 3 E i € 8 s p C�8 a;a FS� oe� m a°g �EE`9of s €Sba e = ;8� E S gal 5 m� �m 9 X' „REF=g >�0 �gE�n City of South Send Seti Petition for Incentives OITH9 0 r Petition must Include a $250 filing fee payable to the City Clerk's Office or online via the City's website at , http: / /5outhbendin.gov /government/ content / tax - abatement before processing can be complete 1865 Legal name as registered with Secretary of The Foster Group, LLC Business structure LLC Company website NA Proposed Project Information Proposed project address 5021 Nimtz Parkay Parent company name NA City, State, Zip South Bend, IN 46628 Legal owner Bradley Foster Siteacreage or acreage required ii Is the real estate owned or owned Square feet of facility Primary Contact Information 120,000 If leased by whom MGE Wholesale Primary company contact name Bradley Foster title Managing Member Address of company contact 3415 Grape Road Phone 574- 257 -0020 City, State, Zip Mishawaka, IN 46545 Finail bmd @MGEgroup.com Senior Official Companysenior official name Same as above Title Address of company contact (If different from Phone City, State, Zip Email Consultant Information/Agent Hired business consultant /agent name 777 Consultant release (Y /N) Address Local economic development partners a roval N City, State, ZIP Email Project Overview Brief description of your The Foster Group is seeking to purchase the facility in Blackthorn to house a wholesale distribution company. The facility company, project, and why the will be owned by the Foster Group LLC and leased to MGE Wholesale. The facility has sat vacant for 3 years and property Is necessary for experienced vandalism to the mechanical systems during Nat Brae. We are seeking to purchase the facility and make economicgrowth upgrades to the building to accommodate a new wholesale operation. The eligibility of the building for the Vacant Building Tax Abatement will allow for a positive NOI In the first two years as we complete construction, design, upgrades and launch of the company. Fiiec J�.'._ lid i:_ea3l, t CLEit,:: Certified Technology Park appropriate N -� Community Revitalization Enhancement District N Certify that the Building Permit has not been N Numbe r o f resid enti A u nits nee red by Issued Will mlect If this Is a petition for personal property tax abatement, has the equipment been Installed NA Lease Payments Purchase Costs '.[ding Construction Building Improvements �chinery & Equipment Furniture /Fixtures Computer /IT Hardware Software to Ball infrastructure to Fiber Infrastructure 2014 2015 2016 2017 2018 2019 2020 2021 2015 20 2016 2017 10 10 2018 2019 2020 tt ttt .tt ttt - - -- 2022 2023 tt 2024 2025 Full time Part time Laborers 31 Technical Managerial 4 Administrative 5 Who will et the Individual responsible for coordinating Work One on recruitin 7 Dee Dee Burke Doesyour company have an EEO hiring policy? yes Are you an EEO employer? yes year 2015 the last three years: Full-Time Permanent Indiana-Resident Calendar Year Jobsmusinetl Positions Tatalhourly wage or fringe or bonuses by Calendar Year Cumulative 8 of net NEW full time permanent jobs created at project Hourly aver wage, w/o Totaltralning Totalptobe benefits or bonuses, of expenditure- trained - not cumulative net new jobs not cumulative cumulative 2014 50 15.50 2015 20 2016 2017 10 10 2018 2019 2020 2021 2022 2023 2024 2025 Full time Part time Laborers 31 Technical Managerial 4 Administrative 5 Who will et the Individual responsible for coordinating Work One on recruitin 7 Dee Dee Burke Doesyour company have an EEO hiring policy? yes Are you an EEO employer? yes year 2015 the last three years: Please describe your commitment to diversity and Inclusion by detailing your outrea ch and recrultment efforts for the last three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black Hispanic Asian Indian Female 2 1 Other FVwil"if 14 ?015 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. Please complete the table below with the appropriate information. If you quality for the points, please enter the full amount of available points. Qualify (Yes or No) Earned Points Available Points 1 Construction Related (Contractorm A. Employ Local Companies (75 %) yes 20 20 G. Purchase Materials from Local Companies (75 %) yes 20 20 C. Require Employees vs. Independent Contractors 19 D. Require Prevailing Wage (Davis Bacon) 22 E. Require Health Benefits yes 22 22 F. Require Pension Benefits yes 18 18 G. IMaintain Affirmative Action Plan 20 Sub -total Construction Related: 80 141 2 Wage & Benefit Related (Owner): A. Pay Target Wage Levels 33 B. Provide Health Benefits yes 34 34 C. Provide Pension Benefits 29 D. Provide Training yes 28 20 E. Provide Child Care 15 F. Provide Transportation Assistance 14 G. IProvide Employer Assisted Housing program 9 Sub -total Wage & Benefit Related: 62 162 3 Workforce Related: A. Create New Jobs yes 42 42 B. Retain Existing Jobs yes 41 41 Maintain Affirmative Action Plan 35 Provide Targeted Hiring Preference yes 34 34 Sub -total Workforce Related: 117 152 4 Support a Municipal Facility: A. Support a SB Municipal Facility (donations to the zoo, conservatory, museum, etc.) yes e4 94 Name of Facility Sub -total Municipal Facility: 184 84 Sub -total from Above: 343 539 The undersigned owners) 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 sea., and South Bend Municipal Code Sec. 2 -76 et sea., for this petition state the above. .AID, r;r Mice CITY C!J�Oiti i § /r3ORD -E What is the current assessed value? Real Property: Personal Property: What is the projected assessed value? Real Property: Personal Property: What Is the tax key number for this project? What is the six digit NAICS code? Please attach a Google map and street view of the location. Please list the amount of real a nd personal property taxes paid for the last five years when applicable. Real Property Taxes: Personal Property Taxes: Year One Year Two Year Three Year FOP, Year Five Staff Use Please fill out the Public Isene fit Summary Information Only and add to the total from above. Y orN Paints Points Public Benefit Item: Proiect Related: 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan 36 Sub -total Project Related: 0 120 6 Super Size Projects (point values are cumulative(: A. 100% to 199% 25 B. 200% to 299% 68 C. 300% to 399% 65 D. 400% and Over 52 Sub -total Super Size Projects: 0 210 7 PPS 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 C Pay for 76- 100% of Extension Cost 52 Sub -total Infrastructure Related: 0 131 Total from Applicant Section: 343 539 Total from Staff Section: 0 461 Total Public Benefit Points: 343 1000 ` Mice CITY C!J�Oiti i § /r3ORD -E 1) How do I pay my petition filing fee? Yourpetition filingfee 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 117 West Jefferson Blvd.. Suite 400 S 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) The map below outlines the CRED area, please check to see if you fall within the boundaries. 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 ofpeople that you will train per year over the length ofthe project.I�—' "- - .,, i•,; '� If you have any additional questions that are not addressed by this document, please contact Sarah HeirOZef�m ntin the_ _ I Department of Community Investment at 574. 235.5842 or email at sheintret ,southbendin.vav CITY CL.E d6:, : -sulil IN CREeD District Boundary F G.. SWmI eoulM1 Oliver Fold prDW 8 DmD J PoIanO y DunM1em Y Filler ; Tull Tull $ Samde Ono rce fr LL Garet L 3 a Q@ IgNllon gull i'a• S s f - eroaaway ware g z Ma^eY Legend ¢ 6 CREaD U.IM `d ` InMana InaNrN m �. q 5, O aeulM1 aen! Parma S\ ; 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 ofpeople that you will train per year over the length ofthe project.I�—' "- - .,, i•,; '� If you have any additional questions that are not addressed by this document, please contact Sarah HeirOZef�m ntin the_ _ I Department of Community Investment at 574. 235.5842 or email at sheintret ,southbendin.vav CITY CL.E d6:, : -sulil IN ' ° "© STATEMENT OF BENEFITS �- VACANT BUILDING DEDUCTION State Form 55182 (R / 2- 14)State Form 55182 (R / 2 -14) Prescribed by the Department of Local Government Finance This statement is being completed for real property that qualifies as an "eligible vacant building" as defined by IC 6 -1.1- 12.1- 1(17). 20_ PAY 20_ FORM SB -1 / VBD PRIVACY NOTICE The cost and any specific individual's salary information is confidential; the balance of the filing is public record per IC 6-1.1- 12.1 -5.1 (c) and (d). INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise, this statement must be submitted to the designating body BEFORE the occupation of the eligible vacant building for which the person wishes to claim a deduction. 2. To obtain a vacant building deduction, a Form 3221VBD must be filed with the county auditor before May 10 in the year in which the property owner or his tenant occupies the vacant building or not later than thirty (30) days after the assessment notice is mailed to the property owner If it was mailed afterApril 10. If the property owner misses the May 10 deadline in the initial year of occupation, he can apply between March 1 and May 10 of subsequent year 3 A property owner who riles the Form 3221VBD must provide the county auditor and the designating body with a Form CF -1NBD to show compliance with the approved Form SB -1NBD. The Form CF -1NBD must also be updated each year in which the deduction is applicable. SECTION .- Name of taxpayer The Foster Group, LLC Address of taxpayer (number and street, city, state, and ZIP code) 3415 Grape Road, Mishawaka, IN 46545 Name of contact person Telephone number E -mail address Bradley Foster ( 574 ) 257 -0020 Brad @MGEgroup.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number Location of property County DLGF taxing district number Description of eligible vacant building that the property owner or tenant will occupy (use amdona/ sheets if necessary). Estimated occupancy sate (month, day, year) Estimated sate placed- in-use (month, day, year) SECTION 3 ESTIMATE OF EMPLOYEES AND-SALARIES AS A RESULTOF PROPOSED PROJECT Current number Salaries Number retained Salaries Number additional Salaries SECTION ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values 2,400,000.00 Plus estimated values of proposed project 500,000.00 Less values of any property being replaced 0.00 Net estimated values upon completion of project 2,900,000.00 SECTION •• TO SELL OR LEASE VACANT BUILDING Described efforts by the owner or previous owner to sell, lease, or rent the budding during period of vacancy: The Bowne building has been vacant for approximately 4 years. The challenge to the facility selling and/or leasing was the damage caused to the building by vandals who scrapped a portion of the mechanical system. The building was listed at all times on the market under 2 different brokers. Show amount for which the building was offered for sale, lease, or rent during period of vacancy. Original listing $5,250,000 with potential lease rate of $3.00 per foot NNN List any other benefits resulting from the occupancy of the eligible vacant building. 40 jobs to the community and upgrading an eyesore to the city owned corporate park. j SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized repress ve Title Date signed (monM, day, year) Managing Member 01/02/2015 Page 1 of 2 Page 2 of 2 FOR USE OF THE DESIGNATING :.. 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 amount of the deduction applicable is limited to $ C. Other limitations or conditions (specify) D. Number of years allowed: ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 ('see below) ❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10 E. For a statement of benefits approved after June 30, 2013, did the designating body adopt an abatement schedule per IC G1.1- 12.1 -177 ❑Yes r_1 No If yes, attach a copy of the abatement schedule to this form. If no, the designating body is required to establish an abatement schedule before the deduction can be determined. We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved (signature and fide of authorized memberof designating body) Telephone number Date signed (month, day, year) Printed name of authorized member of designating body Name of designating body Attested by (signature and title of attester) Printed name of attester ' If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6- 1.1- 12.1 -17. IC 6 -1.1- 12.1 -1(17) "Eligible vacant building" means a building that: (A) is zoned for commercial or industrial purposes; and (B) is unoccupied for at least one (1) year before the owner of the building or a tenant of the owner occupies the building, as evidenced by a valid certificate of occupancy, paid utility receipts, executed lease agreements, or any other evidence of occupation that the department of local government finance requires. IC 6 -1.1- 12.1 -17 Abatement schedules Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full -time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten (10) years. (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. Page 2 of 2 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 5021 Nimtz Parkway, South Bend IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR MGE Wholesale Inc. WHEREAS, a petition for personal 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 5021 Nimtz Parkway, South Bend, Indiana, and which is more particularly described as follows: Business Personal Property and which has Key Numbers to be assigned, be designated as an Economic Revitalization Area under the provisions of Indiana Code 6 -1.1 -12.1 et SeMc ., and South Bend Municipal Code Sections 2 -76 et seq., 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 seq., and South Bend Municipal Code Sections 2 -76, et M,, 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 pursuant to Indiana Code 6 -1.1- 12.1 -4.5 et SeMc ., that: a. The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type; b. That the estimate of the number of individuals that will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed installation of new manufacturing equipment; C. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION II. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that 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 -4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community Investment, and the Community Investment Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of (5) five years as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5 -3 -1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. PRESENTED N0T APPitOVFR KDOPTFC Filed €n r.le^Ws 6ffice r JCh' iE CITY CLMF ., 4oQJ I V. e[END, IN of the Common Council ON -FWL-19 of this b1H is only to pra ffiI oppMony for pubftc hearbV and Uun d adm on tttis issue. 227 W. JFH I'.RSON I30MANARD Surrn. 1400 S. Sour l BEND. IN 46601 -1830 January 16, 2015 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 RI: Personal Property Tax Abatement Petition for: MGE' Wholesale Inc. Dear Council Member Ferlic: Mow: 574/235 -9371 FAX: 5740_350021 Please find attached the Department of Community Investment's report on a personal property lax abatement petition for the above - referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the acquisition and installation of new equipment as part of a new distribution facility located in the Blackthorn area. The report contains the Department's findings relative to the above petition. MGE Wholesale Inc. will be purchasing and installing new equipment. The total project cost for the equipment is estimated at $ 200,000. The project meets the qualifications for a (5) five- year personal properly tax abatement and a representative from MGE Wholesale Inc. will be available to meet with the Committee on .lanuary 26, 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. Sincerely, -7/� BrockZ,eeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLANNING Nt:ualaosuoOn ENGAGLID4 BPSI.NF:sS DIATLOP,11r.S1 E('O.NONM R4:S01'RCi :s hl IN KAfn PAM11 AC A11)TR CIIRIS I :111 DING nROCA ZFFR 227 W. JF.I'rERSON BOULEVARD Sung: 1400S. SnuJ'n DIIND. IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD. EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB PnoNE: 574/235 -9371 FAX: 574/235.9021 SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: MGE Wholesale Inc. DATE: January 16, 2015 On January 14, 2015 a petition was filed requesting consideration of personal property tax abatement located at 5021 Nimtz Parkway, South Bend, IN was filed with the City Clerk by MGE Wholesale Inc. 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 MGE Wholesale Inc. will lease building 5021 Nimtz Parkway from the Foster Group, LLC. MGE will operate a distribution facility at the location. Roughly 200,000 will be spent in business equipment to operate the facility. The facility will create 30 new jobs in the first 2 years and occupy a vacant building in the Blackthorn area. New project taxes will be $ 19,040. Total taxes to be abated during the (5) five -year abatement period are estimated at $ 8,220. Total taxes to be paid over five years on the new and existing equipment are estimated at $ 10,820. EMPLOYMENTIMPACT PLANNING NEIGHBORHOOD ENCA( ;F.. \IEN'r BUSINESS DEVELOPMEN r EvONOMIC RESOUR('F.S JITINKAIN P.AMIi I.AC.N'IF)IR CHRIS FIELDING FRocK 7.FFH Per the petition, it is estimated that the project will (a) create 30 permanent, full time position within the first 2 years, representing a new annual payroll of $ 967,200 (b) retain 20 full time positions, representing a payroll of $644,800. The Project will create 40 full time positions over 10 years, representing $1,289,600 of annual payroll. ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any 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 (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement, January 16, 2015 p. 2 ME Wholesale, Inc. 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S 5Y E g 5s5 0 S o� gN 5 m q xE -g ox � ;bq S x . b u E E E EN x g m E �NISa City of South Send pUTV4 ,. , Petition for Incentives Petition must include a $250 filing fee payable to the City Clerk's Office or online via the City's website of http:// southbendin .gov/governmenticontent/tox- abatement before processing can be complete Lacs General Information Project Name Project Number Legal name as registered with Secretary of MGE Wholesale, Inc. state I Business structure incorporated Company website NA Proposed Project Information Proposed project address 5021 Nimtz Parkay Parent company name NA City, State, Zip South Bend, IN 46628 Legal owner Bradley Foster Site acreage or acreage required 11 Is the real estate owned or owned Square feet of facility Primary Contact Information 120,000 If leased by whom MGE Wholesale Primary company contact name Bradley Foster Tltie President Address of company contact 5021 Mintz Parkway Phone 574- 257 -0020 City, State, zip South Bend, IN 46628 Email bred @MGEgroup.com Senior Official Company senior offidal name Same as above Title Address of company contact (If different from Phone City, State, Zip Email Consultant Information/Agent Hired business consultant/agent name Consultant release (Y /N) Address Local economic development partners a royal N City, State, Lip Email Project Overview Brief description of your The Foster Group s seeking to purchase the facility house a wholesale distribution company. The facility p g D ry in Blackthorn company, project, and why the will be owned by the Foster Group s and leased to MGE Wholesale. The has sal vacant for 3 years and properly Is necessary for ani seeking experienced vandalism to the mechanical systems during that time. We are Seeking to purchase the ledl4y and make economic growth upgrades to the building to accommodate a new wholesale operation. The eligibility of the building and Personal Property for Tax Abatement will allow for a positive NO] in the first two years as we complete construction, design, upgrades and oT lTie b0in asny. pea; L, L :: IN Certified Technology Park appropriate N Community Revitallaatlon Enhancement N Certify that the Building Permit has not been N Nu mber of residential units'ireated by L p O 1Xsapetittybxabatemenp has the ul merit been installed Full-Time Permanent Indiana-Resident Calendar Year lobs retained Positions Total hourly wage w/o fringe or bonuses by Calendar Year Cumulatvn a of net NEW full time permanent Jobs created at project Hourly average wage, w/o Total training Taal eto be benefits or bonuses, of expenditure- trained - not cum ulative net new lobs not cumulative cumulative 2010 50 15.50 2015 20 2016 10 201] 10 2018 2019 2020 2021 2022 2023 2024 2025 Full time Part time Laborers 31 Technlcal Managerial 4 Administrative 5 Who will et the individual responsible for coordinating wt WorkOne on recruiting? Dee Dee Burke Doesyour company have an EEO hiring policy? yes Are you an EEO employer? yes Year 2015 the last three years: Please describe your commitment to diversity and Inclusion by detailing your outreach and recruitment efforts for the last three years as well as current policies. Full Time Part Tlme Full Time Pan Time Full Time Part Time Black Hispanic Asian Indian Female 2 1 Other L d �U15 , Complete below 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. Please complete the table below with the appropriate information. If you qualify for the points, please enter the full amount of available points. (V or No) es orN Earned Points Available Points 1 Construction Related (Contractorsl: A. Employ Local Companies (75%) yes 20 20 B. Purchase Materials from local Companies (75%) yes 20 20 C. Require Employees vs. Independent Contractors 19 D. Require Prevalling Wage (Davis Bacon) 22 E. Require Health Benefits yes 22 22 F. Require Pension Benefits yes 18 18 G. Maintain Affirmative Action Plan 20 Sub -total Construction Related: 80 141 2 Wage & Benefit Related (Ownerl: A. Pay Target Wage Levels 33 B. Provide Health Benefits yes 34 34 C. Provide Pension Benefits 29 D. Provide Training yes 23 28 E. Provide Child Care 15 F. Provide Transportation Assistance 14 G. Provide Employer Assisted Housing program 9 Sub -total Wage & Benefit Related: 62 ]62 3 Workforce Related: A. Create New Jobs yes 42 42 B. Retain Existing Jobs yes 41 41 C Maintain Affirmative Action Pian 35 D. Provide Targeted Hiring Preference yes 34 34 Sub -total Workforce Related: 117 152 4 Su000rta Municioal Facility: ' Support a 58 Municipal Facility (donations to the zoo, conservatory, museum, etc.) yes 84 84 Name of Facility Sub -total Municipal Facility: 164 84 Sub -total from Above: 1343 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 se q., and South Bend Municipal Code Sec. 2 -76 et sea., for this petition state the above. _ � 0 r What is the current assessed value? Real Property: Personal Property: What is the projected assessed value? Real Property: Personal Properly: - What Is the tax key number for this project? What Is the six tight NAILS code? Please attach a Google map and street view of the lowtlon. Please list the amount of real and personal property taxes paid for the last five years when applicable. Real Property Taxes: Persona l Property Taxes: Year One Year Two Year Three Year Four Year Five Staff Use Please fill out the Public Benefit Summary Information Only and V or N add to the total from above. Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs 49 B. Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan 36 Sub -total Project Related: 120 6 Super Size Projects(Pointvaluesare cumulativel: 25 A. 100% to 199% B. 200Y. to 299% 68 C. 300% to 399% 65 D. 400% and Over 52 Sub -total Super Size Projects: r' 210 Pavfor 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: J 131 Total from Appliunt Section: 3:3 539 Total from Staff Section: 3 461 Total Public Benefit Points: 343 1000 t fc I 1) How do I pay my petition filing fee? Yourpetition filingfee can be paid either in person or via mail to: Or online via paypal at. City Clerk's Office http: / /southbmdin.gov /government/ Attn: Deputy City Clerk content /tax- abatement 227 West Jefferson Blvd. a Suite 400 S 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 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. 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 sheintze .0soUthbendin.vov IF11keL . ;i. JA:,! 7 1 4019 k Lcrl,:, I I CREeD District Boundary = F � Glow Scum Saeh Fob Q'iver / yew N In J PoIenC DUMem S F.M., > Tian TNI sampe t� OMo In Gan, C 5 s 3 , / q SWII g rJ E U 81°6eway wore 5 ? S m I+a�ny Legend U Ina na m N OLNeeD nd .E InOlene g A O eoum uwU een0 P � 3 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 sheintze .0soUthbendin.vov IF11keL . ;i. JA:,! 7 1 4019 k Lcrl,:, I I Red 6: STATEMENT OF BENEFITS PERSONAL PROPERTY f��y Stale Form 51764 (R2112 -11) Prescribed by the Department of Local Government Finan CITY CLER:,:. ( JT h s�i�D, IN FORM SB -11PP [TIACY NOTICE h.,.�.E.1f,!..fnd any.p ncidlvHUal's oalion u confidential; the e flingg is public record INSTRUCTIONS: or IC 6 -L7- 72.1 -5.1 c and (d). 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted to the designating body BEFORE a person installs the new manufacturing equipment end /or research and development equipment, and/orlogistica/ distribution equipment end /or Information technology equipment for which the person wishes to claim a deduction. Projects "planned or committed to after Ju)y 1, 1987, and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (IC 6- 1.1.12.1) 2. Approval of the designating body (City Council, Town Board, County Council, etc.) must be obtained prior to installation of the new manufacturing equipment end /or research and development equipment and /or logistical distribution equipment strayer Information techno logy equipment, BEFORE a deduction may be approved 3. To obtain a deduction, a person must file a certified deduction schedule with the person's personal property retom on a certified deduction schedule (Form 103 -ERA) with the township assessor of the township where the property Is situated or with the county assessor if there Is no township assessor for the township. The 103 -ERA must be filed between March 1 and May 15 of the assessment year in which new manufacturing equipment and /ormsearch and development equipment end /or logistical distribution equipment and/or information technology equipment Is installed and fully functional, unless a filing extension has been obtained. A person who obtains a filing extension must file the form between March 1 and the extended due sate o/ that year. 4. Properly owners whose Statement of Benefits was approved alter June 30, 1991, must submit Form CF -1 / PP annually to show compliance with the Statement of Benefits. (IC 6 -1.1- 12.1.5,6) 5. The schedules established under /C 6- 1.1.12.1.4.5(d) and (a) apply to equipment installed after March 1, 2001, unless an alternative deduction schedule is adopted by the designating body (IC 6.1.1- 12.1 -17). SECTION •, Name of taxpayer MGE wholesale Inc Address of lazzpp88yyer (onvum�ler8r� cify, state, and ZIP code) 5021 Nimtz Parxwey S N en I bsa62e' Name of contact person Bradley Foster Telephone number 574 - 257-0020 • • • s r Name of designating body Resolution number (s) Location of property County DLGF (axing district number Description of manufacturing equipment and /or research and development equipment and /or logistical distribution equipment and /or information technology equipment. ESTIMATED ETION DATE (use additional sheets if necessary) Manufacturing Equipm R 6 D Equipment The naw company is a wholesale distribution start up /het will repuira raciang, foddifls, computers, furniture, fixtures L Logist Dist Equipment 15 IT Equipment 5 Current number Salaries Numberrelained Salaries Number additional Sabres �,I:t"ltoiorl • • • r • •••• s ••• NOTE: Pursuant to IC 6.7.1.72.1.5.1 (d) (2) the MANUFACTURING R 8 D EQUIPMENT LOGIST DIST E UIPMENT R EQUIPMENT COST of the property is confidential. E UIPME SE COST ASSESSED COST COST ASSESSED EED VALUE COST ASSESSED VALUE Current values o 0 Plus estimated values of proposed project 200000 Less values of any properly being replaced g Net estimated values upon comptellon of project 200000 THD • *1 Estimated solid waste convened (pounds) NA Estimated hazardous waste converted (pounds) NA Other benefits: SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature or eulhonxed re tuts Mlle /y %fK Dele signed men day, year) Fj lC Z Page 1 of 2 We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution, passed under IC 6- 1.1- 12.1 -2.5, provides for the following limitations as authorized under IC 6 -1.1. 12.1 -2. A . The designated area has been limited to a period of time not to exceed is B . The type of deduction that Is allowed In the designated area is limited to: 1. Installation of new manufacturing equipment; 2. Installation of new research and development equipment; 3. Installation of new logistical distribution equipment. 4. Installation of new information technology equipment; C. The amount of deduction applicable to new manufacturing equipment Is limited to $ calendar years' (see below). The date this designation expires mYes 13No ®Yes ❑No ®Yes ®No ElYes ❑No cost with an assessed value of D. The amount of deduction applicable to new research and development equipment is limited to $ cost with an assessed value of E . The amount of deduction applicable to new logistical distribution equipment is limited to $ cost with an assessed value of F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of G. Other limitations or conditions (speci/y) H. The deduction for new manufacturing equipment andlor new research and development equipment and/or new logistical distribution equipment and/or new information technology equipment installed and first claimed eligible for deduction on or after July 1, 2000, is allowed for. I❑ 1 year ❑ 6 years " For ERA's established prior to July 1, 2000, only a ❑ 2 years ❑ 7 years 5 or 10 year schedule may be deducted. ❑ 3 years ❑ a years ❑ 4 years ❑ 9 years ❑ 5 years •• ❑ 10 years" I. Did the designating body adopt an alternative deduction schedule per IC 6-1.1- 12.1 -17? m Yes O No If yes, attach a copy of the alternative deduction schedule to this form. Also we have reviewed the information contained In the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved: islgnefure and We of authorized membedJ I Telephone number Dale signed (month, deg year) ' If the designating body limits the time period during which an area Is an economic revitalization area, it does not limit the length of time a taxpayer Is entitled to receive a deduction to a number of years designated under IC 6- 1.1- 12.1-4.5 Page 2 of 2 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 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 and which is more particularly described as follows: Lot 1 O 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, 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, 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 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. This resolution is passed as an exception to the current City Code regarding the applicable deduction percentages for a 10 year abatement for the following reasons: 1. The property has been designated by the Economic Development Commission as an Economic Development Target Area located in the CBD; 2. The property is currently owned by the City Redevelopment Commission and requires annual management and maintenance by the City; 3. The property has been vacant and there has been no realized tax revenue generated from the property for at least ten years; 4. The private investment proposed for the project will exceed three times the amount of the taxes to be abated; 5. The project will pay taxes and those revenues will be net new taxes to the community; 6. The project is aligned with the goals of the SBCDA plan, which specifically targets multi -use projects including support for residential occupancy in the CBD; and 7. There is a significant cost to cure required in the project to make the property functional, conform to the historical nature of the property and return the property to economic viability. SECTION III. This Rc- confirming resolution references Confirming Resolution 4330 -14. Real America Development LLC is assuming the approved tax abatement for the LaSalle Hotel property located at 237 North Michigan Street approved by the Common Council on March 24, 2014 for Great Lakes Capital Development. Subject to the adoption of the Re- Confirming Resolution by the South Bend Common Council (the "SBCC "), the City of South Bend, Indiana (the "City ") commits to providing a 10 -year real property tax abatement for the Applicant, based on the Applicant's commitment set forth in the Commitments regarding the rehabilitation of a building located on property identified as 237 North Michigan Street, South Bend, Indiana, approved as part of the Commitments. The Applicant commits to a capital expenditure (from all sources of funds) of approximately $9,537,076 to renovate a building. This project will create nine (9) existing, permanent full -time jobs and zero (0) part-time job with an annual payroll estimated at $315,000. The project will maintain zero (0) existing permanent full -time and zero (0) existing permanent part -time positions. 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. Signing of 0 blll is only to FOV48 an oppabtnity fa pubic heaft cmd now on Gds WA i led in r "' , . t. • n !" -- Membgr of the Common Council f PRESENTED t40T APPROVED �,pOPTEi1 ' CITY CLC.ei... 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 January 21, 2015 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 RE: Real Property Tax Abatement Petition for: The LaSalle Apartments LLC Dear Council Member Ferlic: PHONE: 574/235 -9371 FAX: 574/235-9021 Please find attached letter from Real America to the Department of Community Investment and the Common Council requesting approval to assume the tax abatement granted to Great Lakes Capital Development for the project site of the LaSalle Hotel. The report contains the Department's findings relative to request. Real America Development LLC will be operating as The LaSalle Apartments LLC has agreed to all investment and job retaining targets. A representative from Real America Development LLC will be available to meet with the Committee on January 26, 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. Sincerely, Brock Zeeb Director Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB Development, Management & Design 0� 0 M, ' O Mr. Brock Zeeb Director of Economic Resources City of South Bend — Department of Community Investment 227 W. Jefferson Blvd. South Bend, IN 46601 RE: The LaSalle Apartments Dear Mr. Zeeb, 10711 America Way Suite 200 Fishers, IN 46038 317. 815.5929 Fax 317.815.5930 January 12, 2015 RealAmerica Development, LLC has signed a Development Agreement with the City of South Bend to rehabilitate the former LaSalle Hotel located at 237 North Michigan Street. The City of South Bend approved real property tax abatement for Great Lakes Capital Development, the former developer of the property, in March of 2014. It is my understanding that as the new developer and owner of the property, we will need to have the abatement transferred to The LaSalle Apartments, LLC, the future owner of the property. Will you please consider this our formal request to transfer the abatement and let me know what needs to be done to accomplish this? Sincerely, e rey A. Ryan evelopment Associate www.Rea]AmericaLLC.com Filed 31 ice 14 2015 , L._ _.! CITY CLEAT , , +...' t. y'.;NL), IN - RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, RECOGNIZING THE 2 "D MONDAY OF OCTOBER AS INDIGENOUS PEOPLES DAY ALSO TO BE KNOWN AS NATIVE AMERICANS DAY 6W.*.x the Common Council notes that the 2010 U.S. Census reported that 0.5% of the South Bend population is listed as "American Indian and Alaska Native alone" with 0.3% of the State of Indiana's population being also listed in this category; and 9hC" the Common Council further recognizes that in June of 2013, the Pokagon Band of Potawatomi opened its first Indiana office in South Bend which Provides Tribal members in northern Indiana improved access to Tribal services such as health care, education and housing assistance; as well as youth tutoring and mentoring programs, employment training and placement, elder care and language and cultural programs in their quest to carry out the Tribe's mission to create a "foundation for people to make their lives better "; and 91,E in the interest of promoting Native American culture and to commemorate the history of Native Americans, in 1990 representatives from 120 Indigenous nations held the First Continental Conference to "...strengthen the process of continental unity and struggle towards liberation ... [to] use the occasion to reveal a more accurate historical record'; and 9*�.* the City of South Bend, Indiana, recognizes the rich cultural impact of Native Americans in our community going back to the Miami and Potawatomi Native Americans and proudly includes many venues and events named in their honor such as the Potawatomi Zoo, the Potawatomi Pool, the Potawatomi Conservatories, the Potawatomi Park Concert Series, Mark di Suvero's "The Keepers of the Fire" sculpture installed in the St. Joseph River east of the Century Center, and the most recent naming of the Four Winds Field, home of the South Bend Silver Hawks Class A minor league baseball team. WACms� since 1937, the 2 1d Monday of October of each year has been officially recognized by the federal government as "Columbus Day" and Indiana Code § 1 -1 -9 -1 officially designated Columbus Day as a legal holiday in the State of Indiana. Section I. The Common Council of the City of South Bend, Indiana, believes that efforts should be continued to promote the well -being and growth of the Native American culture and the Indigenous community in our city. Section II. Therefore, the 2 "d Monday of October 2014, shall be known as Indigenous Peoples Day and may also be called Native Americans Day in South Bend, Indiana, and shall be Indigenous Peoples Day Resolution Page 2 an opportunity to celebrate the culture, values and contributions which are continuing to be made to our community by Native Americans. Section III. This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. Henry Davis, Jr., istr c uncil Member on the _ day of 2014 at o'clock . m. m. Office of the City Clerk me on the _ day of 2013 at _ o'clock Pete Buttigieg, Mayor !led in PRESLNILD OCT 13 2Gia ``a NOT APPROVES JOHN Vf N 1 IFoovTrai CITY CLERIC, SQ j • : + - 0 •n. , °P9 Oliver J. Davis President Derek D. Dieter Vice - President Valerie Schey Chairperson, Committee of the Whole Tim Scott First District Henry Davis, Jr. Second District Valerie Schey Third District Fred Ferlic Fourth District David Varner Fifth District Oliver J. Davis Sixth District Derek D. Dieter At Large Gavin Ferlic At Large City of South Bend Common Council 441 County-City Building • 227 W. Jefferson Blvd South Bend, Indiana 46601 -1830 October 22, 2014 Colleagues: (574) 235 -9321 Fax (574) 235 -9173 http: //w .southbmdin.gov As a true reflection of our county's history it is an honor to publicly recognize the contributions of our Native American ancestors and to also acknowledge their countless contributions to our American Society. There has been a progressive change in the way the Native American culture has been viewed over the past year with Columbus Day being changed to 'Indigenous People Day' in communities such as Minneapolis, Minnesota and Seattle, Washington. It is only right that our community follows the same progression to add 'Indigenous People Day' to our calendar in place of Columbus Day and ask all businesses and governmental entities to do the same. We need to give honor to those who have come before us and have also paved the way for many. This resolution will not only honor the true legacy of our county's heritage but show the entire world that South Bend is truly the All American City that it proclaims to be. I hope that you will see this important change in name as I see it and thank you for your support. Karen L. White I sere At Large Councilman Henry Davis, Jr. RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ESTABLISHING REASONABLE ACCOMMODATION POLICIES AND PROCEDURES IN ZONING AND LAND USE DECISIONS WITHIN THE CITY OF SOUTH BEND, INDIANA 60" the City of South Bend, Indiana (the "City ") acknowledges that it is subject to the provisions of the Fair Housing Act, as amended, 42 United Stated Code §§ 3601, et seq. (the "FHA ") and the Americans With Disabilities Act (the "ADA "), set forth at 42 United Stated Code §§ 12102, et seq.; and the FHA provides that the City may not: (1) refuse to make a reasonable accommodation in the application of any of its ordinances in violation of Section 804(f)(3)(B) of the FHA, 42 United Stated Code §§ 3604(f)(3)(B); (2) make housing unavailable because of a disability in violation of Section 804(f)(1)(A) of the FHA, 42 United Stated Code §§ 3604(f)(1)(A); (3) discriminate in the terms, conditions, or privileges of housing because of a disability of a person intending to reside in that dwelling after it is rented in violation of Section 804(i)(2)(B) of the FHA, 42 United Stated Code §§ 3604(f)(2)(B); or deny a group of qualified persons those rights granted by the FHA: and e the City of South Bend, Indiana originally passed a Human Rights Ordinance in 1973 when Ordinance No. 5619 -73 was passed by the South Bend Common Council, which has been periodically updated and is currently codified as Chapter 2, Article 9 Section 2 -126 et seq. in the South Bend Municipal Code to include references to the FHA as amended, and has been certified to be substantially equivalent to the federal FHA; and the City of South Bend, Indiana, desires to confirm and affirm as a matter of public policy that the South Bend Human Rights ordinance referenced above applies to the City of South Bend in the administration of its zoning, land use and building ordinances and their policies, practices, requirements and processes with the City desiring to formalize a process addressing reasonable accommodation requests which would be consistent with the requirements of the FHA and ADA; and for the past several months, the City of South Bend, Indiana, has had the opportunity to meet and discuss reasonable accommodations policies and procedures applicable to zoning and land use decisions with the input and affirmation of DOJ and HUD representatives, as well as with input from individuals locally authorized to implement zoning, land use and building regulations; and the following policies and procedures are believed to be in the best interests of the City of South Bend, Indiana. g�� ���J Ao Co rL relo%r Ae C6iemarz inuiL°�d`° ' of �%adi end Jndim m, as follows: Section 1. It is the policy of the City of South Bend, Indiana, that the South Bend Human Rights Ordinance provisions which are codified in the South Bend Municipal Code at Chapter 2, Article 9, Section 2 -126 through Section 2 -132.1 applies fully to the administration and implementation of its zoning, land Reasonable Accommodation Resolution Page 2 use, and building ordinances, policies, practices, requirements or processes relating to the use, construction, or occupancy of dwellings. Section II. The Common Council of the City of South Bend, Indiana, hereby adopts the "Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions ", which is attached hereto and included herein by reference. Section III. Copies of the "Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions ", as well as application forms requesting reasonable accommodation consideration shall be available and displayed prominently in the offices of the Building Department, in the offices of the South Bend Human Rights Commission, and in the Offices of the City Clerk, and shall further be prominently displayed and accessible on the City of South Bend, Indiana website at www.soutbendin.gov Section W. The City of South Bend, Indiana shall not impose any fees in connection with the opportunity for an individual to file a request for reasonable accommodation under these policies and procedures. Section V. This Resolution shall be in full Common Council and approval by the Mayor. John Voorde, City Clerk PRESENTED NOT APKOVM 'ADOPTid '''' 7: e m and after its adoption by the Tim Scott, 1" District Council Member South Bend Common Council Karen L. White, Council Member at Large South Bend Common Council Pete Buttigieg, Mayor City of South Bend, Indiana Filed in $ Tike kJAN Z 1 2015 JOihte Nri011A CITY CLER t SO< T P FEND, IN 4pUTN yR;'' , r+Alf: is G Cr1 � y fxtd City of South Bend, Indiana Reasonable Accommodations Policies and Procedures In Zoning and Land Use Decisions 2015 City of South Bend, Indiana Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions Table of Contents Introduction.............................................................................. ............................... 3 Definitions................................................................................. ..............................3 Pol icies..................................................................................... ..............................5 1. Reasonable Accommodation Pol icy ...................................... ..............................5 2. Authority to Provide Reasonable Accommodations ................... ..............................5 3. General Principles for Providing Reasonable Accommodations ..... ..............................5 Procedures................................................................................. ..............................6 1. Reviewing Authority and Summary of Process ......................... ..............................6 2. Evaluating a Request for Reasonable Accommodation ................ ..............................7 3. Making the Process Accessible ............................................ ..............................7 4. Obtaining More Information From a Person Requesting a Reasonable Accommodation ........ 8 5. Guidelines for Determining " Necessity ................................... ..............................8 6. Guidelines for Determining " Reasonabl eness" .......................... ..............................8 Attachments............................................................................... .............................10 Attachment # 1 — Application Form .................................... ............................... I ... l l Verification of Disability Status Form ................. .............................16 Attachment # 2 — Letter to Request Additional Information from the Applicant ...................17 Attachment # 3 — Letter to Schedule an Inspection of the Dwell ing .... .............................18 Attachment # 4 — Letter to Grant a Request for a Reasonable Accommodation ....................19 Attachment # 5 — Letter to Deny a Request for Reasonable Accommodation ......................20 Appendix: South Bend Common Council Resolution Establishing Reasonable Accommodation Policies and Procedures in Zoning and Land Use Decisions Within the City of South Bend Joint Statement of the Department of Housing and Urban Development and the Department of Justice — Reasonable Accommodations Under the Fair Housing Act. Joint Statement of the Department of Justice and the Department of Housing and Urban Development — Group Homes, Local Land Use, and the Fair Housing Act. City of South Bend, Indiana Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions Introduction. The City of South Bend, Indiana, acknowledges that it has an affirmative duty to make reasonable accommodations in its land use and zoning regulations and practices so that persons with disabilities have an equal opportunity to live in dwellings of their choice. The failure to offer reasonable accommodations may be a violation of the federal American with Disabilities Act, 42 United States Code § § 12102 et seq., and the federal Fair Housing Act, 42 United States Code §§ 3601, et seq. The following policies and procedures explain the process and the standards used by the City of South Bend, Indiana, in order to provide reasonable accommodations to individuals with disabilities. These policies and procedures are intended as guidelines to assist the City officials when providing reasonable accommodations; as well as providing information to persons who request reasonable accommodations and to all members of the public. These policies and procedures may be revised, supplemented and updated consistent with all applicable federal laws. There shall be no application fee required to request a reasonable accommodation under the City's Reasonable Accommodations Policies and Procedures. Any information related to a disability status and identified by a person requesting a reasonable accommodation as confidential shall be retained in a manner so as to respect the privacy rights of such individual making the request. The City of South Bend, Indiana, shall post on the City's website at www.southbendin eov its Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions and make these policies and procedures available to the public at the Office of the City Clerk, the Building Department, the offices of the Area Plan Commission, and the Human Rights Commission. Definitions. For purposes of these Reasonable Accommodations Policies and Procedures: "ADA" means Title II of the federal Americans with Disabilities Act, 42 United States Code § 1201 et seq. 2. "Area Board of Zoning Appeals (ABZA)" means the board identified in the City's zoning ordinance, South Bend Municipal Code § 21 -11.02 3. "Building Department" means the executive department established to perform administrative fixnctions as set forth in South Bend Municipal Code § 2 -13. 4. "City" means the City of South Bend, Indiana. 5. "Dwelling" means any building, or portion of a building which is designed or used primarily for residential purposes as further addressed in South Bend Municipal Code § 21- 11.02. 6. "FHA" means the federal Fair Housing Act, 42 United States Code § 3601 et seq. 7. "Major life activity" means any task central to a person's daily life, including but not limited to caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, Teaming or working, as this phrase may be interpreted by applicable federal judicial decisions and federal regulations. 8. "Person with a disability" means any person who: a. Hasa physical or mental impairment that substantially limits one (1) or more major life activities; or b. Has a record of having such impairment; or c. Is regarded by others as having such impairment. 9. "Physical or mental impairment" includes but is not limited to orthopedic, visual, speech and heating impairments, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, emotional illness, learning disabilities, HIV disease, tuberculosis, drug addiction (except illegal drugs) and alcoholism; and shall include changes hereafter as may be required by federal law. Short term, temporary health conditions shall not be included. 10. "Reasonable accommodation" means a modification or a waiver of zoning requirements, rules, policies or practices if the modification or waiver is reasonable and necessary to give a person with disabilities an equal opportunity to use and enjoy a dwelling. 11. In the definition of "reasonable accommodation ": a. "Necessary" means that without the accommodation, the person requesting the accommodation would not be able to live in the dwelling of his or her choice. b. "Reasonable" means that the accommodation will not create an undue financial or administrative burden for the City and will not fundamentally alter the land use and zoning plan of the City. 12. "Zoning Administrator" means the individual designated as having the responsibility for the interpretation and administration of the City's zoning ordinance as further addressed in South Bend Municipal Code § 21- 11.02. Policies. 1. Reasonable Accommodation Policy. The City is committed to providing, in accordance with the law, reasonable accommodations to persons with disabilities in order to give those individuals an equal opportunity to live in the dwellings of their choice. The policy of the City is to fulfill this commitment to provide persons with disabilities an equal opportunity to use and enjoy housing in the City. This policy establishes a procedure for making requests for reasonable accommodation in zoning, land use and building regulations, rules, policies, practices and procedures of the City of South Bend, Indiana to comply fully with all applicable federal and state laws. 2. Authority and Duty to Provide Reasonable Accommodations. The following federal laws authorize and require the City to provide reasonable accommodations: a. The FHA makes it unlawful for the City to make unavailable or to deny a dwelling to any person because of that person's disability, pursuant to 42 United States Code § 3604 (f). A reasonable accommodation should be considered when the accommodation is necessary to afford a person with a disability an equal opportunity to use and enjoy a dwelling pursuant to this same section of the United States Code, and when the person requesting the reasonable accommodation complies with the procedures set forth in this policy. b. The ADA makes it unlawful for the City to discriminate against persons with disabilities or to deny persons the benefits of services, programs, or activities because of the person's disabilities, pursuant to 42 United States Code § 12132. A reasonable accommodation should be considered when the accommodation is reasonable and necessary to afford a person with a disability an equal opportunity to use and enjoy a dwelling pursuant to this same section of the United States Code, and when the person requesting the reasonable accommodation complies with the procedures set forth in this policy. 3. General Principles for Providing Reasonable Accommodations. a. The City shall grant a request for a reasonable accommodation whenever the accommodation is necessary and reasonable, with further procedures set forth below. b. Requests for reasonable accommodations shall be evaluated on a fact - specific, case -by -case basis. c. Requests for reasonable accommodations shall be an interactive process between the City and the person requesting the accommodation. d. Requests for reasonable accommodations will be decided by the Zoning Administrator. Procedures. 1. Reviewing Authority and Summary of Process. a. Requests for reasonable accommodation shall be received and reviewed by the Zoning Administrator. b. The Zoning Administrator shall have the following additional authority: i. To conduct an ongoing review of the application of Building Department rules, policies, practices or procedures and their compliance with federal laws referenced herein; ii. To consult on a regular basis with the Area Plan Commission Executive Director the results of such ongoing reviews so that zoning and land use best practices are utilized and are consistent with federal laws referenced herein; iii. To provide advisory recommendations to the Common Council's Zoning and Annexation Committee. c. The Zoning Administrator shall issue a written decision on a request for reasonable accommodation within thirty (30) days of the date of the application and may either grant, grant with modifications, or deny a request for reasonable accommodation in accordance with the City's Reasonable Accommodation Policies and Procedures in Zoning and Land Use Decisions. d. In the event that the Zoning Administrator finds it necessary to request additional information from the applicant, the thirty (30) day period to issue a decision is stayed for a period of up to fifteen (15) days after the applicant fully responds to the request, or thirty (30) days from receipt of the application, whichever is later. e. In granting a request for reasonable accommodation, the Zoning Administrator may impose conditions of approval which are deemed necessary and reasonable to ensure that the reasonable accommodation(s) would comply with the findings. For example, conditions may be imposed to ensure that any removable structures or physical design features that are constructed or installed in association with the reasonable accommodation be removed once those structures or physical design features are not necessary to provide access to the dwelling unit. f. While a request for ti reasonable accommodation is pending, all laws and regulations otherwise applicable to the property that is the subject of the request shall remain in full force and effect. g. Within fifteen (15) days of the date of the Zoning Administrator's written decision, an individual may appeal an adverse decision. Appeals from the adverse decision shall be made in writing and submitted to the Area Board of Zoning Appeals for de novo review in the same manner as for other appeals.] 'Indiana Code § 36-74-918.1 gives the area board of zoning appeals the authority to" ... hear and determine appeals from and review any order, requirement, decision, or determination made by an administrative official, hearing officer, or staff member under the zoning ordinance..." i. All appeals must contain a statement of the grounds of the appeal. Any information related to a disability status and identified by the applicant as confidential shall be retained in a manner so as to respect the privacy of the rights of the applicant. ii. No fees shall be charged by the Area Board of Zoning Appeals for review of reasonable accommodation decisions. iii. The Area Board of Zoning Appeals shall hold a public hearing on the appeal within forty -five (45) days of receipt of an appeal or at the next regular ABZA meeting whichever occurs first. Their decision shall be final with their written decision being mailed to the appealing party within five (5) days of the appeal hearing. Written decisions of the Area Board of Zoning Appeals shall include the factual basis for their decision by addressing the issues identified in Section 2 below entitled "Evaluating a Request for a Reasonable Accommodation ". iv. The above appeal process is not an exclusive remedy, and nothing in the appeal procedure shall preclude an aggrieved individual from seeking any other remedies in a court of competent jurisdiction or federal remedies as provided by law and which are further addressed in Attachment It 5. 2. Evaluating a Request for a Reasonable Accommodation. a. In making determinations of reasonable accommodation, the Zoning Administrator and the Area Board of Zoning Appeals shall consider and make findings as to the evidence provided by the person requesting a reasonable accommodation of each of the following items: L Whether the person or persons who are requesting to live in the dwelling are persons with disabilities; ii. Whether the accommodation is necessary, as further addressed in 15 below; and iii. Whether the accommodation is reasonable, as further addressed in $ 6 below. b. In order to review a request for a reasonable accommodation, Attachment # 1 must be completed and filed by the person requesting an accommodation. c. In order to deny a request for a reasonable accommodation, the Zoning Administrator is required to complete and send Attachment # 5 to the person requesting a reasonable accommodation 3. Making the Process Accessible. a. To make sure that the process for requesting a reasonable accommodation is accessible, the Building Department shall help any person who needs assistance during the process of requesting an accommodation. For example, if a person wishing to file a request is unable to read or complete the application form (Attachment # 1), the Building Department shall help the person to provide the required information on the form so that the application may be filed. b. Pursuant to Title 28, § 35.160 of the Code of Federal Regulations, the City is required to "furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity" to make a request for a reasonable accommodation. For example, a person wishing to file a request may request that written documents be provided in alternative formats such as large print or by alternate means such as verbal communication, or in other languages. 4. Obtaining More Information From A Person Requesting a Reasonable Accommodation. a. If the Zoning Administrator needs more information to evaluate a request for a reasonable accommodation, he or she may require the applicant to supply additional information. b. To obtain additional information, the Zoning Administrator may: i. Request the person(s) who are requesting to live in the dwelling are persons with disabilities for additional information by asking such applicant(s) to complete Attachment # 2; ii. Meet with the applicant in person or by telephone or an equally effective means of communication; or iii. Inspect the dwelling that is subject to the request to ensure that granting the request will not violate the minimum space and maximum occupancy requirements which are applied to similarly sized single - family dwellings, using Attachment # 3 to arrange such inspection. c. The Zoning Administrator may verify the applicant's disability status using the application form (Attachment # 1), however may not request the Applicant's medical records of any specific information about the nature or severity of the applicant's medical condition. 5. Guidelines for Determining "Necessity". a. The accommodation is necessary if, without the accommodation, the person with a disability would not have an "equal opportunity" to live in the dwelling of his or her choice. b. A person would not have an "equal opportunity" to live in a dwelling if, without the reasonable accommodation: i. The person seeking the reasonable accommodation would be excluded from that dwelling. 6. Guidelines for Determining "Reasonableness ". a. An accommodation is `reasonable" if it: i. Does not create an undue financial or administrative burden for the City; and ii. Will not fundamentally alter the City's approved Comprehensive Plan also commonly referred to as City P1an2, and any approved neighborhood plan, all of which are on file in the Office of the City Clerk b. An undue financial or administrative burden analysis consists of i. Determining whether the request for a reasonable accommodation will cause significant and identifiable financial costs to the City. ii. A waiver or modification of zoning requirements generally is not an undue burden if it does not impose any concrete, identifiable financial cost(s) to the City. An example of a waiver would be where a person requests a reasonable accommodation to allow an exception to a setback requirement so that a wheelchair ramp may be constructed to gain access to his or her dwelling. c. A fundamental alteration analysis3 consists of: i. Based on analysis, a requested accommodation may be unreasonable if it would substantially change the nature of the zoning plan. ii. The analysis is based on a fact - specific, case -by -case analysis and determination. iii. The analysis takes into consideration the guidance from the U.S. Department of Justice and the U.S. Department of Health and Human Services that "what is reasonable in one circumstance may not be reasonable in another" .4 2 The South Bend Common Council adopted Resolution No. 3657 -06 on November 13, 2006, which approved the Comprehensive Plan. 3 28 Code of Federal Rego /ations § 35.130(bx7) requires a public entity to make reasonable modifications in policies, practices or procedures when the modifications are necessary to avoid discrimination on the basis of disability, unless the public entity can demonstrate that make the modifications would fundamentally alter the nature of the service, program, or activity. Wong v. Regents of the Univ. of Cal., 192 F. 3d 807 (1999) notes that the "issue of reasonableness depends on the individual circumstances of each case, [with] this determination requiring a fact - specific, individualized analysis of the disabled individual's circumstances..." ' See: "Joint Statement of the U.S. Department of Justice and the U.S. Department of Housing and Urban Development, Group Homes, Local Land Use, and the Fair Housing Act", set forth in the Appendix. http: / /www.usdi.eov /crUhousiag/fmal8 l .htm. Attachments. The City has developed a series of forms which are set forth as Attachments. These forms are to be regularly reviewed and updated by the City as the law requires. Forms are to ensure consistency of implementation and enforcement of the policies and procedures addressed herein. 10 ro+ a\ x: \Y ILL! City of South Bend, Indiana Reasonable Accommodations Attachment # 1 APPLICATION FORM TO REQUEST A REASONABLE ACCOMMODATION A reasonable accommodation is any modification of a zoning rule, policy, practice or procedure if the modification is reasonable and necessary in order to give a person with disabilities an equal opportunity to use and enjoy a dwelling in the City of South Bend, Indiana.* If you believe that you need a reasonable accommodation to live in a dwelling, or so that persons with disabilities may live in a dwelling that you own or operate, please complete this application form and return it to: Zoning Administrator Building Department 125 South Lafayette Boulevard, Suite 100 South Bend, Indiana 46601 Please attach additional pages if necessary. If you have questions or need assistance, please call the Building Department at (574) 235 -9554 or fax the Building Department at (574) 235 -5541. Name and Contact Information of Applicant: Name: Street Address: City, IN Zip Code: Telephone: Landline: Cell: Are the persons who currently live at the dwelling persons with disabilities? Yes _No Are the persons who plan to live at the dwelling persons with disabilities? Yes No If you answered yes, you must submit the verification of disability status form below. *A person with a disability is anyone who has a physical or mental impairment that substantially limits one (1) or more major life activities; or has a record of having such impairment; or is regarded by others as having such impairment. 11 a f,• aG` 1 City of South Bend, Indiana Reasonable Accommodations Attachment # 1— page 2 of 5 APPLICATION FORM TO REQUEST A REASONABLE ACCOMMODATION 1. Name and Contact Information of Owner of Property: Name: Street Address: City, IN Zip Code: Telephone: Landline: Cell: 2. Tax Identification Number: 3. Is there a contingent purchaser? des _no. If answered yes, complete the following: Name of contingent purchaser: Street Address City, IN Zip Code: Telephone: Landline: Cell: 4. If the person requesting a reasonable accommodation is making such request on behalf of an entity other than a natural person, the following information is required: Name of entity registered with the Indiana Secretary of State: Agent of record with Indiana Secretary of State: Address: Telephone: Landline: Cell: Employer Identification Number: South Bend City License/Permit Number: 12 Reasonable Accommodations Attachment # 1— page 3 of 5 5. Current use and zoning classification of the property: 6. Describe the accommodation which you are requesting. What zoning rule, policy, practice or procedure would you like the City to waive for the property? 7. Why do you need the accommodation? In other words, why is the accommodation necessary in order for the person(s) with qualified disabilities to live at the property? S. Is the dwelling licensed by the State of Indiana? If yes, please identify the type of license and attach a copy of it. 9. If you are requesting an accommodation in order to house more than two (2) unrelated persons in a zoned single family dwelling, answer the following: Number of residents who will live in the dwelling: Number of required staff who will live in the dwelling: Square footage of the dwelling: Number of bedrooms in the dwelling: For each bedroom, its square footage, number and size of each window: Bedroom #1: Bedroom #2: Bedroom #3: --� Please attach the same information for any additional bedrooms. 13 Reasonable Accommodations Attachment # 1 — page 4 of 5 Complete the following for each bathroom/restroom: # 1: Square footage: Shower: _ yes no_ Bathtub: _ yes no_ I" Floor 2n1 Floor Handheld Attachment locations Handheld Attachment locations Call cord: _yes no_ Description of other specialized safety features: # 2: Square footage: Shower: _yes no Bathtub: _ yes no_ I' Floor 2nd Floor, Handheld Attachment locations Handheld Attachment locations_ Call cord: _yes no_ Description of other specialized safety features: # 3: Square footage: I' Floor 21d Floor Shower: _ yes no Handheld Attachment locations Bathtub: _ yes no Handheld Attachment locations Call cord: —Yes no_ Description of other specialized safety features: 14 Reasonable Accommodations Attachment # 1— page 5 of 5 I affirm under penalty of perjury that the information provided in this application is true and accurate. I understand that providing false or misleading information will result in a denial of my application. To the extent this Application contains any information protected by the Health Insurance Portability and Accountability Act of 1996 (HIPPA), I do not waive my rights under HIPAA. Printed name: Signature: Date: 15 City of South Bend, Indiana Reasonable Accommodations VERIFICATION OF DISABILTIY STATUS Definitions: Federal law provides in part that "persons with disabilities" are persons who: (1) have any "physical or mental impairment" that substantially limits one (1) or more "major life activities'; or (2) has a record of having such impairment; or (3) is regarded by others as having such impairment. A "major life activity" is any task central to most people's daily lives, such as caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working. A "physical or mental impairment" includes, but is not limited to orthopedic, visual, speech and hearing impairments, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, learning disabilities, HIV disease (whether symptomatic or asymptomatic), tuberculosis, drug addiction (except illegal drugs) and alcoholism. Short term, temporary health conditions shall not be included. Verification: To the best of my knowledge, information and belief, the person(s) who occupy (or who will occupy) the dwelling that is subject to the above request for a reasonable accommodation --- do do not meet the definition of "persons with disabilities ". I am in a position to know about the person(s)' disabilities because (For example, are you a medical or social services professional, part of a peer support group that serves the person(s), or someone who resides with the person ?) [NOTE: Do NOT reveal the nature or severity of the persons' disabilities.] I affirm under penalty of perjury that the information provided in this Verification of Disability Status is true and accurate. Printed name: Signature: Address: Telephone # 16 Attachment # 2 Letter to Request Additional Information from the Applicant [Letterhead] [Date] [Name] [Street Address] South Bend, Indiana [Zip Code] Re: [Address of Dwelling] Dear This office has received your request for a reasonable accommodation, which was dated �]. We need the following additional information from you in order to evaluate your request: [List information that is needed] We need this information so that we can determine [state reason information is needed]. Please send the information to this office by [mail, fax, and e- mail]. If you believe that you already have provided the information or that we should not ask for it, please contact us at (574) 235 -9554 or fax us at (574) 235 -5541. Please provide the requested information on or before [date]. Within fifteen (15) days of receipt of the requested information, or within thirty (30) days from the date of your original application whichever is later, we will notify you of our decision with regard to your request for an accommodation. Please note that failure to provide the requested information in a timely manner could result in a denial of your request. Thank you. [Closing] [Signature] [Printed Name] Zoning Administrator cc: Building Department attorney 17 Attachment # 3 Letter to Schedule an Inspection of the Dwelling Regarding Space and Occupancy Requirements [Name] [Street Address] South Bend, Indiana [Zip Code] Re: [Address of Dwelling] Dear [Letterhead] [Date] This office has received your request for a reasonable accommodation, which was dated We need to inspect the dwelling that is the subject of your request. An inspection is necessary so that we can determine whether the dwelling is in compliance with the minimum space and maximum occupancy requirements if the requested accommodation is granted. The inspection will involve a verification of square footage, light, ventilation and related public safety requirements. We would like to inspect the dwelling on [date and time]. If the inspection cannot take place at that time, please contact us as soon as possible at (574) 235 -9554 to reschedule. Please note that it is your responsibility to make sure that the inspector from the Building Department has access to the dwelling at the scheduled time. Your failure to make the dwelling available for inspection could result in a denial of your request. Within the later of fifteen (15) days of the inspection, or thirty (30) days from the date of your application, we will notify you of our decision with regard to your request for an accommodation. [Closing] [Signature] [Printed name] Zoning Administrator cc: Building Department attorney 18 Attachment # 4 Letter to Grant a Request for a Reasonable Accommodation [Letterhead] [Date] [Name] [Street Address] South Bend, Indiana [Zip Code] Re: [Address of Dwelling] Dear You submitted a request for an accommodation to this office on [date] A copy of your request is attached for your reference. This office has approved your request for an accommodation as follows: [Describe the accommodation] If you have any questions, please contact us at (574) 235 -9554. Thank you. [Closing] [Signature] [Printed name] Zoning Administrator cc: Building Department attorney Area Plan Commission Executive Director Area Board of Zoning Appeals Chairperson Zoning and Annexation Committee Chairperson 19 Attachment # 5 Letter to Deny a Request for a Reasonable Accommodation [Letterhead] [Date] [Name] [Street Address] South Bend, Indiana [Zip Code] Re: [Address of Dwelling] Dear You submitted a request for an accommodation to this office on [date]. A copy of your request is attached. This office denies your request because we find that [choose all that apply]: The people who will live at the dwelling are not persons with disabilities because: _ The accommodation that you requested is not necessary in order for a person with disabilities to have an equal opportunity to live in a dwelling of his or her choice because: _ The accommodation is not reasonable because it would create an undue administrative or financial burden for the City as follows: _ The accommodation is not reasonable because it would fundamentally alter the comprehensive plan or master zoning plan of the City as follows: This decision was made because [give reasonslexplanation]. We relied on the following information to reach our decision: [list relevant information]. If we have denied your application based on noncompliance with provisions of the South Bend Municipal Code [such as occupancy, ventilation or parking rules] and you may wish to file a request to waive those provisions. You have the right to appeal this denial, within fifteen (15) days of the date this decision. Appeals from the adverse decision shall be made in writing to this Office and will be submitted to the Area Board of Zoning Appeals. All appeals must contain a statement of the grounds of the appeal. all Attachment # 5 Letter to Deny a Request for a Reasonable Accommodation — page 2 The Area Board of Zoning Appeals shall hold a public hearing on the appeal within thirty (30) days of receipt of an appeal. Their decision shall be final with their written decision being mailed to the appealing party within five (5) days of the appeal hearing. Alternatively, and instead of a public hearing before the Area Board of Zoning Appeals, you also have the right to appeal to the United States Department of Housing and Urban Development or to a court of competent jurisdiction. If you choose this alternative method of appeal, you should notify the Area Board of Zoning Appeals of your choice of appeal within fifteen (15) days of your receipt of the Zoning Director's decision. You must file any lawsuit or appeal to the federal Department of Housing and Urban Development (HUD) within the time required by federal law. (OPTIONAL PARAGRAPH WHERE ALTERNATIVE REASONABLE ACCOMMODATION EXISTS) Although the specific accommodation you requested has been determined to be "not reasonable," we believe that other accommodations would be reasonable under the facts and circumstances of your application. The alternative accommodation(s) we propose is/are as follows: If an alternative accommodation described above is acceptable to you, then please request a form for an "Amended Request for a Reasonable Accommodation." If the only change in your application is the nature of the accommodation, then you will need only to: 1) fill out the identifying questions (I through 4); 2) re- submit your amended answer to question 6, page 3 of the original application (Question 6 at page 3 is as follows: " Describe the accommodation which you are requesting. What zoning rule, policy, practice or procedure would you like the City to waive for the property? "); and 3) sign, date and return the Amended form to this office within Ten (10) days of this letter /decision We will then reconsider your application in light of this request, and the appeal deadline described earlier in this letter will be extended while we consider your Amended Application. Another copy of the Application form (titled "Amended ") is enclosed if you wish to do this. 21 If you have any questions about anything in this letter, please call (574) 235 -9554. Thank you. [Closing] [Signature] [Printed name] Zoning Administrator cc: Building Department attorney Area Plan Commission Executive Director Area Board of Zoning Appeals Chairperson Zoning and Annexation Committee Chairperson Filed h -, Office .'Ar' � 1 GiJl5 I 22 JOh CITY CLERK, aG�1 i ., '11AD, IN a h o Y INS Common Council City of South Bend Indiana 4' Floor County -City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 (574) 235 -9321 (574) 235 -9173 Facsimile (574)235 -5567 TTYITDD January 20, 2015 Members of the Common Council 4 °i Floor County -City Building, Room 455 South Bend, Indiana 46601 Re: Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions Dear Council Members: We are pleased to introduce the attached Resolution which sets forth Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions for the City of South Bend, Indiana. For the past several months, individuals and legal counsel from the Building Department, Law Department, Area Board of Zoning Appeals, Area Plan Commission and the Common Council have been meeting; and have been providing regular updates to representatives of the U.S. Department of Justice (DOJ) and the U.S. Department of Housing and Urban Development (HUD). Throughout this process, much research has been conducted to elicit the best practices in the area of reasonable accommodation in relation to zoning and land use decisions. In addition to the relevant provisions of the federal Americans With Disabilities Act and the Fair Housing Act, policies, forms and procedures from several communities were reviewed, discussed and debated. The attached proposed policies and procedures contain a detailed Table of Contents which provides references to definitions, policies, practices, as well as several attachments which include such items as an application form and standardized letters. This entire document has been reviewed by attorneys representing the U.S. Department of Justice, the U.S. Department of Housing and Urban Development, the Area Board of Zoning Appeals, the Area Plan Commission, the Building Department, the Law Department and the Common Council. Reasonable Accommodation Cover Letter Page 2 The attached resolution setting forth "Reasonable Accommodations Policies and Procedures in Zoning and Land Use Decisions" is recommended to be formally adopted by the Common Council. The background work and multiple meetings held with the various officials and attorneys representing the county and city agencies is commendable. As a result, the City and County representatives have amicably addressed all of the items discussed with the DOJ and HUD. We ask that the Resolution be referred to the Zoning and Annexation Committee for review and recommendation. We further request that it be scheduled for public hearing on Monday, January 26, 2015. Thank you. ost sincere , Counci em er Tim Scott I" District Council Member Council Member Karen L. White Council Member at Large Attachment Filed it 'office JOrf CITY CLERK, S _.. i ; : -JEND, IN RESOLUTION NO. EllPD-[s"311=1 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, DELAYING THE EFFECTIVE DATE OF ORDINANCE NO. 10343 -14 ADDRESSING SECTION 2 -9.1 OF ARTICLE 1 OF CHAPTER 2 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING THE COMMON COUNCIL on December 9, 2014, the South Bend Common Council passed Ordinance No. 10343 -14 which addressed various policies and procedures for Council Members when using city -owned technologies, the Council's Facebook page, social media and social networking which was then approved by the Mayor as evidenced by his signature; and N" on January 12, 2015, Bill No 04 -15 was filed with the Office of the City Clerk by the Council Members who sponsored Ordinance No. 10343 -14 aimed at clarifying the best practices incorporated into that ordinance which is currently slated to go into effect on February 2, 2015; and NMaam4, the Common Council believes that continued due diligence is in order to assure that all policies and procedures governing the Common Council in these rapidly changing areas of technology; and the Common Council further believes that it is therefore necessary and appropriate that the effective date of Ordinance No. 10343 -14 be delayed indefinitely and that that ordinance not be enforced until a separate ordinance setting forth anew effective date is passed by the South Bend Common Council. 6. MYgm 1r6 .sa r e i Vr r Vr r '�r . V r r P i AW r AAwia, Section 1. The effective date of Ordinance No. 10343 -14 is hereby delayed indefinitely. Section IL A new and separate ordinance setting forth a new effective date is hereby required for the provisions of Ordinance No. 10343 -14 to become regulations which would govern the South Bend Common Council Section III. This Resolution shall b, f and effect from and after its adoption by the Common Council and approval by the Mayor. Tim Scott, District Council Member South Bend Common Council Gavin Ferlic, Council Member at Large South Bend Common Council Karen L. White, Council Member at Large South Bend Common Council Derek D. Dieter, Council MembmaLLarge _ South Bend Common Council I Filed ,, 11ce PRESENTED 1:75 - NOT APPROVED - r jot), ikDOPTED CITY CLERIC, b 1i , h dtMo, IN Resolution Addressing Ordinance No. 10343 -14 Page 2 i John Voorde, City Clerk Pete Buttigieg, Mayor City of South Bend, Indiana (574) 235 -9321 January 16, 2015 Members of the Common Council 4t" Floor County-City Building, Room 455 South Bend, Indiana 46601 socrx e�, a C �y RAIf � Common Council City of South Bend Indiana 4" Floor County -City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 (574) 235 -9173 Facsimile Re: Common Council Policies and Procedures Dear Council Members: (574)235 -5567 TTY/TDD/TT The attached proposed Resolution would delay indefinitely the implantation and effective date of Ordinance No. 10343 -14, which addresses various policies and procedures for Council Members when using city -owned technologies, the Council's Facebook page, social media and social networking. As noted both at the Committee meetings and at the Common Council meetings when those proposed regulations were discussed, we are open to further discussion and welcome recommendations which may improve those which we have drafted. Our research has attempted to uncover the best practices in each of these areas. As we are all well aware, technology is moving at a record pace. We must be ever mindful of our duties and responsibilities as public officials and properly balance our rights and obligations with all Constitutional protections. We again ask each of you to provide your recommendations so that the South Bend Common Council can be a leader in this area. Thank you. Most sincerely, Tim Sco , S` istrict Council Member Gavin Ferlic, Council Member at Large Attachment Karen L. White, Council Member at Large Derek D. Dieter, )ROMember at Large ' hfiCe f CITY CLERt6, FUJI h BEND, IN —. (574) 235 -9321 January 16, 2015 Members of the Common Council 4 °i Floor County -City Building, Room 455 South Bend, Indiana 46601 Re: Bill No. 04 -2015 Dear Council Members: c4„oi rx "f� IMS Common Council City of South Bend Indiana 4" Floor County -City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 (574) 235 -9173 Facsimile CM -� f (574)235 -5567 TTYi- rDD/TT Bill No. 04 -2015 addressing proposed amendments has been filed to clarify various portions of Ordinance No. 10343 -14 addressing a Council Member's use of city -owned technologies, the Council's Facebook page, social media and social networking. It is scheduled to have First Reading on Monday, January 26, 2015. As the sponsors of Bill No. 04 -2015, we request that this Bill be referred to the Council's Information and Technology Committee, but that no date for a Common Council public hearing be set. In this way, ongoing discussions and reviews of your recommendations on these policies and procedures may take place. We look forward to continuing our discussions with you in developing clear policies and procedures which protect the governmental interests of the Common Council and your Constitutional rights. It is our hope that the parties in the pending litigation should have the opportunity to reach an amicable solution which would be agreeable to the parties through thoughtful and meaningful discussions.. Thank you. Most sincerely, Ttm "Co i mber Gavin Ferlic, Council Member at Large Attachment Kar n �WhiteouJtct` Mptnher at Large Derek D. Dieter, Council Member at Large Filet{ ir; office 1 46i5 dot,. : CITY CLERIC, sCJi i Wk3END, IN 1 BILL NO. 04-15 ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SUB - SECTIONS OF CHAPTER 2, ARTICLE 1, SECTION 2 -9.1 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING POLICIES AND PROCEDURES GOVERNING CITY -OWNED TECHNOLOGIES, FACEBOOK STANDARDS, SOCIAL MEDIA AND SOCIAL NETWORKING POLICIES AND PROCEDURES STATEMENT OF PURPOSE AND INTENT On December 9, 2014, the South Bend Common Council passed Ordinance No. 10343 -14, which set forth various policies and procedures addressing city -owned technologies, Facebook Standards and social media which would govern the Common Council Members. That ordinance was later approved by South Bend Mayor Pete Buttigieg that same day. The original sponsors of the ordinance have continued to elicit comments and suggestions, in the interest of seeing that "best practices" in each of these areas are properly established. The sponsors of the ordinance are and continue to be ever mindful of the First Amendment rights which is made applicable to the states and political subdivisions by the Fourteenth Amendment. In the interest of further clarifying these procedures, consistent with Garcetti v. Ceballos, 547 U.S. 410 (2006), and applicable case authority thereafter, and the Common Council desire to continue to protect the governmental interests of the legislative body of South Bend city government, by following ordinance is introduced. +/ /1PTPI'%F, / & &IzAilime/by the Common Council of the City of South Bend Indiana as follows: Section I. Chapter 14, Article 9, Section 2- 9.1(a) of the South Bend Municipal Code is amended in part to read as follows: (a) Purpose and Intent and Definitions.. The following policies and procedures shall govern the official and the personal use of any and all city -owned technologies; and the usage of Council - related Facebook, social media and social networking services and tools by any person elected to serve as a member of the South Bend Common Council. For purposes of this section, "Council - related" means anything subiect to the Indiana Access to Public Records Act. These policies and procedures shall govern various types of communication and public engagement Any are Council - related inelu'ii°° but net limited 1 Email and text messaging' ' Indiana's Public Access Counselor Luke H. Britt ruled that private email accounts are public record if they involve official business under Indiana's Access to Public Records Act [Indiana Code 5 -14 -3] In the Advisory Opinion in Formal Complaint 14 -FC -199 issued on October 8, 2014, he noted that "when a public official avails himself to any communication medium, Bill No. 04 -15 Page 2 2. Media Sharing — Examples: You Tube, iTunes 3. Blogging/Microblogging — Examples: WordPress, Blogger, Twitter 4. Social Networking — Examples: Facebook, MySpace, LinkedIn, Ning 5. Document and Data Sharing Repositories: Examples: Scribd, S1ideShare, Socrata 6. Social Bookmarking — Examples: Delicious, Digg, Reddit 7. Widgets — Examples: Google Maps, AddThis, Facebook "Like" Section II. Chapter 14, Article 9, Section 2 -9.1 (b) 5 and 6 of the South Bend Municipal Code is amended in part to read as follows 5. Further Responsibilities: Each Council Member is expected to: i. Monitor personal use of the internet, messaging and other applications to ensure that the City of South Bend is being appropriately served ii. Adhere to the policies and procedures addressed herein iii. Read alld adher-e to any additional pelieies and pr-seedufes developed by the Geuneil's 6. Exception Process: Exceptions to these policies and procedures must be requested in writing to the Chairpersen Common Council's Information and Technology Committee. All exceptions must be documented in writing and retained according to existing schedules. Exceptions may be granted on a limited -time basis only, by a majority vote of the Common Council. Section III. Chapter 14, Article 9, Section 2 -91 (c) I of the South Bend Municipal Code is amended in part to read as follows: a. Initial Requirements: When If a Council Member determines that he or she has a government need for a an official Council- related Facebook aeeeunE pace, the Council Member shall be required to submit their proposed page to the Council's Information and Technology Committee or to the Common Council for approval. The primary contact person shall be the Council's ITC Chairperson, with the City's IT Division being the primary back -up for technical assistance. Applications shall not be added to a City Facebook site, without prior approval by the IT members designated herein. All City branding images must meet the City of South Bend, Indiana branding standards. whether it is phone, email or text message, he is availing himself of the Indiana access laws when communicating in his official capacity ... the public official is basically on the honor system to either produce the requested emails or identify an APRA exception to disclosure... the best transparent practice would be to implement a policy where email communication on private accounts dealing with public business is considered potentially discloseable public record. Bill No. 04 -15 Page 3 Section IV. Chapter 14, Article 9, Section 2 -91(c) 2 of the South Bend Municipal Code is amended in part to read as follows: Page Administrators: i. A success Page requires "babysitting ". The Common Council President Information and Technology Committee Chairperson may be the Public Information Officer (PIO) with the infoFmatien and Teehrielegy Committee Chair-persen the City's IT Division being the immediate back -ups. The PIO may be responsible for monitoring the Facebook pages(s). Posts should be approved by the PIO or designated back -up. The PIO is responsible for making sure that content is not stale and taking appropriate action thereafter. Comments and Discussion Boards: Comments to the Wall may be turned off, but may be allowed only on a case -by -case basis upon the request of a Council Member and approved by the IT memo`;s design w in these jal.w e a and pTveiavxca. PIO. Diseussion Boards shall be tumed ra Section V. Chapter 14, Article 9, Section 2 -91(d) of the South Bend Municipal Code is amended in part to read as follows: (d) Social Media and Social Networking Policies and Procedures. The many forms of social media are ever- changing. The following policies and procedures shall govern all Common Council Members when using social media and social networking sites, when such usage is-ift an -&fFei ty Council - related. as an eleeted effle er privately in a men offieial perseRa . These policies and procedures shall govern when such usage is on any and all city -owned technologies and any and all privately -owned technologies when such use is Council - related. The following policies and procedures are to be used in conjunction with all other policies and procedures addressed in this Section. 8. Post Only Legally Accurate Information: Participating Council Members must comply with the State of Indiana's Open Meeting law and Public Records law. Therefore posts regarding official City of South Bend business shall always be in compliance with such laws protecting confidential material and be in compliance with copyright, trademark, logo and branding laws, policies and procedures. Links may be made to sources or statements as references to ensure accuracy. Posts should be infeFmative. Consider and verify all sources BEFORE posting. Content gathered online is subject to the same attribution rules as other content. Council Members shall proofread all posts for grammatical and spelling errors in addition to verification of the accuracy of the information to be posted. 14. Defamatory Personal Attacks Prohibited: Postings ^'-°'�. Al neve should not include profane or defamatory personal attacks of any type. unprofessional manHer. Bill No. 04 -15 Page 4 Section VI. Chapter 14, Article 9, Section 2 -91(f) of the South Bend Municipal Code is amended in part to read as follows: Ongoing Training and Education. The Council's Information and Technology Committee shall be responsible for hosing ongoing training and education sessions for members of the Common Council. Eaeh January a mandatefy tfaining and edueatien session shall be required for all Couneil Meffiber-s. Section VII. If any part, subsection, sentence, clause or phrase of this ordinance is for any reason declared to be unconstitutional or otherwise invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. Section VIII. This ordinance shall be in full force and effect from and after its passage by the Common Council, approval by the Mayor and legal publication. Office of the City Clerk t a READING PUBLIC HEARING 3 rd READING NOT APPROVED R`FERRED PASSED Tim Scott, 1" District Council Member Gavin Ferlic, Council Member at Large azen L. ite, Council Mem at Large Derek D. Dieter, Cbfincirf&Wer at Large %Tjewle -(/bj / /IN /(• /I!N r1ir.,.I //N ./0,J n //- "r//W J�m/iaua, on the _ day of , 2015 at o'clock . m. Office of the City Clerk �r�rNr /rrou/ i�nrr /by me on the _ day of 2015 at _ o'clock _.m. Pete Buttigieg Mayor of the City of South Bend, Indiana Filed in iierk's Office RANI 12 2014 JOHN voo;, CITY CLERK, 90M L;4140, IN , ot ix e! C` 4O v +' „wy The South Bend Common Council January 12, 2015 Members of the Common Council 4°i Floor County -City Building South Bend, Indiana 46601 Dear Council Members: The attached Bill was filed with the Office of the City Clerk this aRemoon. We, the original sponsors of the ordinance which created various policies and procedures addressing city - owned technologies, Facebook Standards and social media for the Council effective February 2, 2015, believe that the attached Bill helps to clarify the "best practices" incorporated into Ordinance No. 10343 -14. We are asking for a suspension of the rules this evening so that the Bill may have First Reading this evening, and then be referred to the Information and Technology Committee for further vetting. As with the filing of the original bill on November 24, 2014, we are open to your ideas and suggestions, so that the best possible policies and procedures are in place to govem the Common Council. Thank you. ost sincerely, Tim Scott, I District Council Member Gavin F ic, Council Member L. White Xoukil Me er at Large D. Dieter, Council Member at Large Attachment cc: Office of the City Clerk Mayor Pete Buttigieg Cristal Brisco, Corporation Counsel Aladean DeRose, City Attorney Kathleen Cekanski Farrand, Council Attorney Filed in Ce�rk's Jftice [:,AN 7 ? 201 JOH04 wit" "RX17 CITY dank wour i BEND, IN