18-07 Petition for Non-Compliance- The LaSalle Apartments, LLC

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i MEMORANDUM OF AGREEMENT This Memorandum of Agreement (the "Agreement") dated as of the 21" of January, 2015, serves as a confirmation of the commitment by The LaSalle Apartments, LLC, (the "Applicant") pending a January 26, 2015, public hearing, to comply with the project description, job creation and retention (and associated wage rates and salaries) I figures contained in its petition, Statement of Benefits, and attachments and this Agreement(the "Commitments"). 1. Commitments of City and Applicant: Subject to the adoption of the Designating and Confirming Resolutions 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. 2. Potential Impact of State of Indiana Circuit Breaker Law- The parties note that the calculations regarding the affect of the tax abatement in question are based on the State of Indiana's tax rates currently in effect at the time of entering into this Memorandum of Agreement. The complete impact of the State of Indiana's Circuit Breaker law on the City's property tax revenues is unknown at this time. To assure that the City receives the projected amount of property tax revenues, which amounts were calculated at the time of granting the tax abatement for the Applicant, the parties to this Memorandum of Agreement agree to adjust the length of the abatement and/or the percentage of deduction if the tax revenues due under the Circuit Breaker Law are less than what was initially projected and represented to the Common Council, as evidenced by the supporting documentation submitted to the Council with the Applicant's tax abatement petition. However, in no case will the adjustments cause the property taxes to