17-76 Tax Abatement for River Park Corp

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CITY OF SOUTH BEND I COMMUNITY INVESTMENT The owner/developer is,again,a South Bend native.It has been noted that he is pursuing this venture after witnessing a revitalization of downtown South Bend over the past 10 years.Nonetheless,a$9,000,000.00 investment in world-class office space is a significant risk in any metropolitan area. DCI staff recommends that we partner with the developer to mitigate this risk to a reasonable degree and enable this new development in downtown South Bend. A tax abatement is a meaningful tool allowing ramp-up time for the owner/developer to bring tenants into the new retail/office building. The Department of Community Investment's recommendation for support of this project is a 6-year, 100%tax abatement. This level of partnership and investment is supported by the petitioner's level of investment and other"points"factors from their Petition Packet,by the algorithms and computations that drive our objective analyses, and by the investment and participation levels (-15%)that we set as a meaningful benchmark for all deals. It is a good investment for the City of South Bend. In summary the project entails the following: • Purchase of land at$50,000.00 • $9,000,000.00 in Private Investment • Six-story,38Ksf class A retail/office space This packet includes the following: ➢ Department of Community Investment's summary report ➢ Copy of the petition ➢ Statement of Benefits form ➢ Supporting information. 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 235-5823. Sincerely, Daniel J. Buckenmeyer Director, Business Development&Economic Resources Department of Community Investment City of South Bend EXCELLENCE ; ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT 14005 County-City Building j 227 W.Jefferson Bvld.I South Bend,Indiana 466011 p 574.235.93711 www.southbendin.gov