18-49 Modifying and reconfirming resolution for Tower at Washington (Hotel)

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MEMORANDUM OF AGREEMENT This Memorandum of Agreement (the "Agreement") dated as of the 3rd day of March, 2016, serves as confirmation of a commitment by The Tower at Washington Square, LLC (the "Applicant"), pending a March 14, 2016 public hearing, 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(the "Commitments"). 1. Commitments of Citpplicant. Subject to the adoption of a Confirmatory Resolution by the South Bend Common Council (the "SBCC"), the City of South Bend, Indiana (the "City") commits to providing a(10)ten-year vacant building real property tax abatement for the Applicant, based on the Applicant's commitment set forth in Commitments regarding the renovation of a building located on property identified as 211 West Washington St., South Bend, Indiana 46601 approved as part of the Commitments. The Applicant commits to a capital expenditure (from all sources of funds) of$11,286,774 in building improvements and $3,958,500 in furniture/fixtures towards the hotel space as part of a large scale redevelopment project to an existing building commonly known as the former Chase Tower. This portion of the overall project will create (62) sixty two jobs over the life of the abatement, representing an annual payroll of$2,175,555. 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 by Applicant to the Council with the Applicant's tax abatement petition. However, in no case will the adjustments cause the