Filed in Clerk's Office
<br /> MEMORANDUM OF AGREEMENT
<br /> MAY 08 2013
<br /> KAREEMAH FOWLER
<br /> CITY CLERK.SOUTH REND,IN
<br /> This Memorandum of Agreement (Agreement) dated as of the Thursday, Apr 126 , 2018,
<br /> serves as confirmation of a commitment by Franklin Street Technology Park,LLC(the"Applicant"),
<br /> pending an May 14`h,2018,public hearing,to comply with the project description,job creation and retention
<br /> (and associated wage rates and salaries) figures contained in its petition, Statement of Benefits, and
<br /> attachments and this Agreement(Commitments).
<br /> 1. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a
<br /> Confirmatory Resolution by the South Bend Common Council (the "SBCC"), the City of South Bend,
<br /> Indiana (the "City") commits to provide a (8) eight-year real property tax abatement for the Applicant,
<br /> based on the Applicant's commitment set forth in its Application. The Applicant commits to a capital
<br /> expenditure of$3,000,000 associated with the construction of three buildings located at the intersection of
<br /> Sample Street and Franklin Street, South Bend, IN 46601 (Key Numbers 018-8002-0061, 018-8002-
<br /> 0070, 018-8002-0071, 018-8002-0073, 018-8002-0074, 018-8002-0075, 018-8002-0076, 018-
<br /> 8002-0077, 018-8002-0078, 018-8002-0079, 018-8002-0094, 018-8002-0096, 018-8002-0097,
<br /> 018-8002-0098, 018-8002-0099, 018-8002-0100, 018-8002-0101, 018-8002-0102, and 018-
<br /> 8002-0104). This real property project will create at least sixty(60) indirect jobs within five years.
<br /> 2. Potential Impact of State of Indiana Circuit Breaker Law: The parties note that the calculations
<br /> regarding the effect of the tax abatement in question are based on the State of Indiana's tax rates currently
<br /> in effect at the time of entering into this Memorandum of Agreement. The complete impact of the State of
<br /> Indiana's Circuit Breaker law on the City's property tax revenues is unknown at this time. To assure that
<br /> the City receives the projected amount of property tax revenues, which amount was calculated at the time
<br /> of granting the tax abatement for the Applicant, the parties to this Memorandum of Agreement agree to
<br /> adjust the length of the abatement and/or the percentage of deduction if the tax revenues due under the
<br /> Circuit Breaker Law are less than what was initially projected and represented to the Common Council,as
<br /> evidenced by the supporting documentation submitted to the Council with the Applicant's tax abatement
<br /> petition. However, in no case will the adjustments cause the property taxes to be paid to exceed the tax
<br /> payments as initially projected and represented to the Common Council by the aforementioned supporting
<br /> documentation.
<br /> 3. Applicant's Compliance with City and State Laws.During the term of the abatement,the Applicant
<br /> shall comply with Chapter 2, Article 6 of the South Bend Municipal Code entitled "Tax Abatement
<br /> Procedures"and all governing provisions of the Indiana Code. During the term of this abatement,the City
<br /> may annually request information from the Applicant concerning the nature of the Project, the approved
<br /> capital expenditure of the Project,the number of full-time permanent positions newly created by the Project,
<br /> and the average wage rates and salaries(excluding benefits&overtime)associated with the positions,and
<br /> the Applicant shall provide the City with adequate written evidence thereof within 15 days of such request
<br /> (the"Annual Survey"). The City shall utilize this information and the information required to be filed by
<br /> the Applicant in the CF-1 Compliance with the Statement of Benefits form to verify that the Applicant has
<br /> complied with the commitments contained in the Commitments at all times after the Commitment Date and
<br /> during the duration of the abatement. The Applicant further agrees to provide the City with such additional
<br /> information requested by the City related to the information provided in the Annual Survey and the CF-1
<br /> form within a reasonable time following any such additional request.
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