04-27-15 Common Council Meeting Minutes

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REGULAR MEETING APRIL 27, 2015 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of up to seven (7) years as shown by the attachment pursuant to Indiana Code 6- 1.1-12.1-17. SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana 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. ___________________________________ Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee met this afternoon and send bill 15-29 to the full Council favorably. th Presenter: Sarah Heintzelman, Offices on the 14 floor – This abatement is for Ameriplex Industrial Park. They acquired a new business and want to consolidate everything. It will be a $5.6 million investment with new building construction and expansion. Total project taxes $1,959,042 million, estimated taxes abated $238,000 and taxes to be paid during the abatement $1.9 million creating eight (8) full time jobs. Petitioner: Lynette Tempe, 227 S. Main St., South Bend – We came before you two years ago when our company announced that they will be relocating another operation from Illinois to Indiana. We have successfully completed all additional economic opportunities of 62 new jobs; this expansion will bring anywhere from 8-12 additional new jobs. Councilmember Schey – One of the concerns I have is where the assessed value of the property and the real property taxes that were paid. There is a huge discrepancy where assessed values is in the millions and the taxes paid were only $300. Brock Zeeb replied it is when a petitioner files the petition, we as the community investment cannot change the signed petition. They made an error, they paid $117,000; they left off a zero off in year one (1) and their other years in taxes paid have also been similar to the $3.2 million in assessed value which would be roughly $117,000 a year. I would be happy to pull up the 5 year tax records for you, but that is aligned with what we received and aligns to what is on the auditor’s website. Councilmember Schey responded so there will be a problem with the paperwork when it is returned to us? Brock replied correct that petition has not been completed and has additional work that needs to be completed. The error will be captured in the next continuing paperwork.. Councilmember Schey – Addressed Council Attorney Kathy, so when we vote tonight, since there is inaccurate information on the petition which is pretty significant, can we address those numbers and make a modification on the floor tonight? What would be your recommendation so the taxes paid would be reflected? Council Attorney replied Mr. Zeeb can put what he provided tonight in writing to the Council, but that what would not impact the declaratory resolution. Councilmember Schey stated that was one of the concerns and the other concern is there a discrepancy with the number of jobs with the state and the city, one says twelve (12) and one 18