18-48 Modifying and reconfirming resolution for Imagineering Enterprises (Real Property)

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MEMORANDUM OF AGREEMENT This Memorandum of Agreement (Agreement) dated as of the 26th of September, 2016 serves as confirmation of a commitment by Imagineering Enterprises Inc. (the "Applicant"), to comply with the project description, job creation and retention (and associated wage rates and salaries) figures contained in its petition, Statement of Benefits, and attachments and this Agreement(Commitments). 1. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Common Council (the "SBCC"), the City of South Bend, Indiana (the "City") commits to provide a Six] year real property tax abatement for the Applicant, based on the Applicant's commitment set forth in its petition for 3722 Foundation Ct. South Bend IN 46628 (025-1010-0400 18). The Applicant commits to a capital expenditure of at least $500,000 associated with the expansion their business by adding additional services to their current product offerings. They believe the additional of the Anodize process will allow them to grow to their next desired level. This project will create at least twenty-five new, permanent full-time jobs with a total estimated annual payroll of$780,000 within the Six year abatement period. 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 amount was 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 be paid to exceed the tax payments as initially projected and represented to the Common Council by the aforementioned supporting documentation.