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-~- Pro~ec~ o <br />~ ~~-~. <br />-~ ~'utur <br />Econornlc ©evelnpment for South Bead, <br />Allishawaka attd fit. Joseph County <br />COMII4ERCE CENTER ° SUITE 305 Qp1 EAST CdLFAXAYENEJE P.O, BOX 1G77' SQUTH BEND, INb1ANA 46634-1677 <br />(574) 234•.6Shp EAX: X574) 23G=1{7Gp ° (8pU) 228-80IIG <br />Septernber 22, 201 ~ <br />To; [Vlen~bers of the'South Bend Common Council: <br />In this difficult economic climate, communitres must do alI they can to be attract new lousiness investment <br />that brings new jobs; view wealth, creates growth and improves qualityaf life; all while`protecting ttie <br />interes#s of the community and its residen#s: This replacenierit for South Bend's property Tax Abatement <br />ordinance accorriplishes these goals. <br />In general, Indiana law allows new property taxes on qualified projects to be phased in over a period of up <br />to 90 years. This ordinance sets a 10-year phase-in schedule for every qualified applicant but requires the <br />applicant to earn each year of the phase in based on actual performance, rather than on an estimate made <br />at the time of application. <br />How those years are earned initially is based on project impact: the size of the investment, the number of <br />jobs created or retained, and wages to be paid. Applicants report actual perforrriance each year and claim <br />only the phase-in they have earned and verified. In fallowing years, applicants may earn additional years <br />or extend the phase=in period, up to the maximum off 0 years; based an actual operations and an good <br />corporate behavior and communi#y involvement. <br />This is a unique apprgach to property tax plisse=ins: 'fhe "schedules included in the ordinance keep South <br />Bend competitive with other Midwestern communities-and--the simple concept of earning each year's <br />phase=in credit wEil make South -Bend a moolel for other communities to follow. <br />At the same time; threshold requirements in the ordinance protect the city`s interests: The corporate <br />behavior aspects will encourage businesses to be involved in the community antl also allow niemejers of <br />the council to have a regular voice in encouraging behavior to meet changing comn3unity needs. <br />Thank you for your carisideratian of this ard'mance. I urge you to adopt this opportunity to make South <br />Bend a leader in using tax phase-in as an economic development-foal. <br />~1~rr~ ~n ~~e~f'~('a~ ~~~~~@ <br />SEP Z 2 2~~0 <br />Ve truly yours, <br />~ ~ "`~--- <br />Patrck M. McMahon <br />Executive Director <br />~~. <br />