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(A) Upon appropriate request, the Council may, after following the same procedures as required to declare an Economic Revitalization Area, designate as a Residentially Distressed Area, a particular area which is located within the corporate limits of the city and meets all the following criteria specified in I.C. 6-1.1-12.1-2(b):
(1) The area is comprised of parcels that are either unimproved or contain only one- or two- family dwellings or multi-family dwellings designed for up to four families, including accessory structures for those dwellings;
(2) Any dwellings in the area are not permanently occupied and are either:
(a) The subject of an order issued under I.C. 36-7-9; or
(b) Evidencing significant building deficiencies; and
(3) Parcels of property in the area either:
(a) Have been sold and not redeemed under I.C. 6-1.1-25; or
(b) Are owned by a unit of local government.
(B) As an alternative to the findings required by division (A) above, the Council may designate as a Residentially Distressed Area, a particular area which is located within the corporate limits of the city and meets all the following alternative criteria specified in I.C. 6-1.1-12. l-2(c):
(1) A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land;
(2) A significant number of dwelling units within the area are either:
(a) The subject of an order issued under I.C. 36-7-9; or
(b) Evidencing significant building deficiencies;
(3) The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the area is owned by Indiana or the United States; and
(4) The area (plus any areas previously designated under this division) will not exceed 10% of the total area within the Council's jurisdiction.
(C) Any property designated as a Residentially Distressed Area under divisions (A) or (B) above must also fulfill the following obligations for the applicant/taxpayer to receive a deduction:
(1) Dwellings built or rehabilitated on the property must meet local code standards for habitability; and
(2) Dwellings must be built or rehabilitated on the property within two years of the date of designation as a residentially distressed area.
(D) The deduction awarded for property located in a residentially distressed area shall be available for a period of five years. The amount of the deduction the owner of the property is entitled to receive for each particular year equals the product of:
(1) The increase in the assessed value resulting from the rehabilitation or redevelopment multiplied by:
(2) The following percentages for each year that the deduction may be taken:
Year | Percentage |
1 | 100% |
2 | 80% |
3 | 60% |
4 | 40% |
5 | 20% |
(Ord. 19-1373, passed 9-3-19)
(A) The Council shall consider all findings of fact pertaining to an application for tax abatement.
(B) The Council, in its deliberations, may, pursuant to I.C. 6-1.1-12.1-2, give consideration to the following general standards to determine if:
(1) The proposed use of the real estate for which a deduction is being sought is consistent with the land use policies contained in the Allen County Comprehensive Plan adopted by the Council;
(2) The deduction will assist in the inducement of a project that will result in the retention and/or creation of substantial employment opportunities relative to the value of the investment;
(3) The deduction will encourage the use of vacant or under-utilized land or improvement or replacement of a deteriorated or obsolete structure designated as appropriate for industrial or commercial development;
(4) The deduction will encourage the improvement or replacement of deteriorated or obsolete manufacturing, research and development, logistical distribution, and information technology equipment; and/or
(5) The deduction will assist in the inducement of a project which would provide long-term benefits to the tax base of the city and Allen County, Indiana, warranting the granting of abatement.
(C) In all instances, the Council shall find that evidence has been provided either in the application or during the public hearing that the real estate proposed for designation is either in an area "which has become undesirable for, or impossible of, normal development and occupancy because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings, or other factors which have impaired values or prevent a normal development of property or use of property" or, "where a facility or a group of facilities that are technologically, economically, or energy obsolete are located and where the obsolescence may lead to a decline in employment and tax revenues" or, when applicable, been found to be a Residentially Distressed Area pursuant to I.C. 6-1.1-12.1-2.
(D) The Council shall not consider an application for designation, unless a waiver of noncompliance has been granted pursuant to I.C. 6-1.1-12.1-11.3, if prior to the filing of the application:
(1) An improvement location permit has been filed for the project at the Allen County Department of Planning Services;
(2) A building permit for the subject rehabilitation has been filed for the project at the Allen County Building Department; or
(3) When personal property for which a deduction is being sought has been installed (as defined in 50 I.A.C. (Department of Local Government Finance) Article 4.2, Assessment of Tangible Personal Property).
(Ord. 19-1373, passed 9-3-19)
(A) The applicant/taxpayer shall provide Economic Development staff with an annual report (Compliance with Statement of Benefits, form CF-1) showing the extent to which there has been compliance with the Statement of Benefits (SB-1) form. The CF-1 form must be filed with the Allen County Auditor, the Economic Development Division staff, and the City Clerk Treasurer, according to the filing schedule required by I.C. 6-1.1-12.1-5.1, I.C. 6-l.l-12.1-5.3(j), and I.C. 6-1.1-12.1-5.6.
(B) Economic Development Division staff shall analyze all CF-1 forms and compile a summary sheet and findings of fact to present to the Council from which a determination of substantial compliance or noncompliance will be made.
(C) Economic Development Division staff shall use the following review procedure of CF-1 forms:
(1) The first step in the review process compares the CF-1 form to the Statement of Benefits (SB-1) form approved by Council to find whether the project substantially complies with the SB-1. Substantial compliance shall be defined as:
(a) Creating or retaining at least 75% of the total number of full-time and/or part-time jobs delineated in the approved Statement of Benefits (SB-1) form; and/or
(b) Creating or retaining at least 75% of the total salaries delineated in the approved Statement of Benefits (SB-1) form within the time frame projected in the applicant/taxpayer's approved Statement of Benefits (SB-1) form.
(2) If the project is deemed not to be in substantial compliance in the first step, the staff shall investigate further whether the applicant/taxpayer made a reasonable effort to substantially comply and whether the applicant/taxpayer's failure to substantially comply was caused by factors beyond their control. Staff will:
(a) Examine whether the investment in real estate or personal property equals or exceeds 75% of the investment delineated in the approved Statement of Benefits (SB-1) form within the projected time frame; and
(b) Contact the person listed as the contact person on the CF-1 form to seek an explanation as to why the project is not in substantial compliance. The staff may request the explanation be provided in writing.
(3) If the staff finds, based on the second step, that the applicant/taxpayer made a reasonable effort to substantially comply, and that the applicant/taxpayer's failure to substantially comply was caused by factors beyond the control of the applicant/taxpayer, the project will be considered in substantial compliance for purposes of the CF-1 form. If the staff finds, based on the second step, that the applicant/taxpayer did not make a reasonable effort to substantially comply, and that its failure to substantially comply was not caused by factors beyond the applicant/taxpayer's control, the project will be considered not in substantial compliance for purposed of the CF-1 form. Staff will provide a report summarizing the staffs' findings to the Council from which the Council can make a determination as to whether the project should or should not be deemed to be in substantial compliance.
(D) The Council will review the CF-1 forms using the following criteria:
(1) Employment:
(a) Number of employees retained (jobs retained); and
(b) Number of additional employees (jobs created);
(2) Salaries:
(a) Salaries of employees retained (salaries retained); and
(b) Salaries of additional employees (salaries created); and
(3) Investment (values of proposed project):
(a) Real estate: cost of real estate improvements; and
(b) Personal property: cost of new manufacturing, new research and development, new logistical distribution and new information technology equipment.
(D) State law provides that within 45 days after an applicant/taxpayer files a CF-1 form, the Council shall determine whether the applicant/taxpayer has substantially complied with the Statement of Benefits (SB-1) form. Those forms that are found by the staff not to be in substantial compliance will be brought to the attention of the Council first for the Council to determine what further action is necessary. However, since the 45 day time period only limits the Council's ability to pursue terminating a deduction, those that are found to be in compliance will be submitted for formal approval with a final report following the end of the filing period.
(E) If an applicant/taxpayer fails to file a CF-1 form by the filing deadline, fails to file a CF-1 form that provides sufficient information (as determined by staff) to determine substantial compliance, or the circumstances are such that the staff has information indicating that the information provided on the CF-1 form may be inaccurate, the staff will make a reasonable effort to contact the applicant/taxpayer to obtain a complete and accurate CF-1 form. If the applicant/taxpayer still fails to provide a complete and accurate CF-1 form, then the staff will bring the failure to the attention of the Council for the Council to determine whether the project should be deemed not to be in substantial compliance. The staff, working with the Allen County Auditor's Office, will monitor applicants/taxpayers who have receive a SB-1 approval from the Council and who are eligible to receive a tax abatement deduction, to facilitate the timely and accurate submission of CF-1 forms.
(F) The staffs' determination that the project fails to substantially comply with a Statement of Benefits does not necessarily mean that the abatement will be rescinded. If the Council, based on the information provided by the staff, determines that a project is not in substantial compliance, the staff will mail official notification to the applicant/taxpayer and schedule a hearing with the Council pursuant to I.C. 6-1.1-12.1-5.9. The hearing will be held within 30 days after the date on which the notice is mailed.
(G) Based on the evidence presented at the hearing by the applicant/taxpayer and other interested parties, the Council shall determine whether the applicant/taxpayer has made reasonable efforts to substantially comply with the Statement of Benefits and, whether any failure to substantially comply was caused by factors beyond the control of the applicant/taxpayer. If the Council determines that the applicant/taxpayer has not made reasonable efforts to comply with the Statement of Benefits, the Council shall adopt a resolution terminating the applicant/taxpayer's deduction under the authority of I.C. 6-1.1-12.1-5.9(c).
(H) An applicant/taxpayer (or, in the case of a deduction for an eligible vacant building, the applicant/taxpayer or tenant of the applicant/taxpayer) that has received a deduction for real property or personal property and: (1) ceases operations at the facility for which the deduction was granted; and (2) is found to have intentionally provided false information concerning plans to continue operations at the facility, may be required to repay to the Allen County Treasurer, under the authority of I.C. 6-1.1-12.1-12, those property taxes that were deducted, if the Council has adopted a resolution incorporating the provisions of that section for the Economic Revitalization Area.
(Ord. 19-1373, passed 9-3-19)
(A) I.C. 6-1.1-12.1-9.5 and 6-1.1-12.1-11.3 allow the designating body to waive noncompliance for the following:
(1) Failure to submit a statement of benefits prior to a public hearing;
(2) Failure to designate an Economic Revitalization Area (ERA) or submit a statement of benefits prior to construction of a facility and/or installation of equipment;
(3) Failure to make the necessary findings of fact as required in I.C. 6-1.1-12.1-2, 6-1.1-12.1-3, 6-1.1-12.1-4.5 or 6-1.1-12.1-4.8 before designating an area as an ERA or authorizing a deduction for new equipment; or
(4) Failure to file a timely and complete deduction application as required by I.C. 6-1.1-12.1-5, 6-1.1-12.1-5.3 and 6-1.1-12.1-5.4.
(B) (1) Waivers of noncompliance should only be considered for those applicants/taxpayers in compliance with local and state governmental entities.
(2) Applicants/taxpayers must verify that they are not delinquent on any taxes owed (property, income or sales), their Compliance with Statement of Benefits (CF-1) form(s) have been filed on time and are substantially compliant, and there are no outstanding state or federal environmental issues.
(3) Staff will verify and affirm that applicants/taxpayers have met all above criteria.
(C) For an applicant/taxpayer to begin the waiver process, the applicant/taxpayer must first contact Economic Development Division staff in the Allen County Department of Planning Services.
(1) If staff determine that a waiver is needed, a formal request from the applicant/taxpayer should be made in writing explaining the circumstance(s).
(2) The applicant/taxpayer will also need to address the steps needed to correct the problem and the actions the applicant/taxpayer will take to correct further problems from occurring.
(D) The following procedures shall be followed:
(1) Waiver of noncompliance for failure to file timely application and Statement of Benefits (SB-1) form(s).
(a) For personal property, waivers will only be considered on equipment installed within one month prior to date application is received.
(b) For real property, waivers will only be considered on applications where an applicant/taxpayer has applied for an improvement location permit/structural permit one month prior to date application is received.
(c) A fee of $500 will be required to offset the costs incurred.
(2) Waiver of noncompliance for failure to file timely deduction paperwork.
(a) Personal property waivers will only be considered for failure to file 103-ERA and 103-EL paperwork within the last 12 months or one year.
(b) Real property waivers will only be considered for failure to file Form 322/RE within the last 12 months or one year.
(c) The Council may not grant waivers for applicants/taxpayers who have failed to file deduction paperwork more than once during the deduction period.
(d) A fee of $500 will be required to offset the costs incurred.
(3) Waivers of noncompliance for clerical errors.
(a) Personal property waivers will only be considered on clerical errors made by the applicant/taxpayer that affect the proper reporting of project location, project or investment timeframe, and cost of investment.
(b) Real property waivers will only be considered on clerical errors made by the applicant/taxpayer that affect the proper reporting of project location, project or investment timeframe, and cost of investment.
(c) A fee of $500 will be required to offset the costs incurred.
(Ord. 19-1373, passed 9-3-19)
Notwithstanding the procedures set forth in § 151.01, the Council shall not designate real estate as an Economic Revitalization Area if any portion of the subject property is located with an "allocation area", as defined in I.C. 36-7-14-39 or I.C. 36-7-15.1-26, unless the Allen County Board of Commissioners has first adopted a resolution consenting to the subject designation.
(Ord. 19-1373, passed 9-3-19)
The Council does hereby designate the Allen County Department of Planning Services Economic Development Division as the administrative agency for processing applications for the designation of Economic Revitalization Areas and undertaking the other actions designated thereto under this chapter. The Economic Development Division, in conducting its responsibilities under this delegation, may undertake the following actions:
(A) Keep abreast of changes in the state enabling legislation and communicate changes to members of the Council;
(B) Develop and implement procedures to address changes in the state enabling legislation;
(C) Maintain an appropriate application form that is consistent with state law and Council procedures;
(D) Accept applications for designation and collect the required filing fee to be collected pursuant to this chapter;
(E) Review said applications for completeness and provide the Council with supporting data necessary to properly consider such requests;
(F) Establish guidelines to evaluate applications in order to determine the length of the abatement period;
(G) Prepare public review files required by I.C. 6-1.1-12.1-2.5(c);
(H) Prepare and cause to be published legal notice of the Council's consideration of said application as required in I.C. 6-1.1-12.1-2.5(c) and I.C. 5-3-1;
(I) Prepare draft declaratory and confirmatory resolutions for the Council's review and consideration;
(J) Keep records of all properly filed applications and duly designated Economic Revitalization Areas;
(K) Act on behalf of the Council in corresponding with the applicant/taxpayer(s) and other interested persons regarding the status of an application;
(L) Prepare and provide the Allen County Auditor with a final designation packet which shall include information necessary for the review of applications for deduction pursuant to I.C. 6-1.1-12.1-5, I.C. 6-1.1-12.1-5.3, and I.C. 6-1.1-12.1-5.4; and
(M) Evaluate annual reports (CF-1 forms) submitted by applicants/taxpayers under § 151.04 and provide a report to the Council within 45 days summarizing compliance of reporting companies.
(Ord. 19-1373, passed 9-3-19)