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HomeMy WebLinkAboutConfirming Tax Abatement - 4260 Ralph Jones Drive - LNW Partners, LLP, d/b/a We R Xhibits, IncRESOLUTION 3623-06 Passed by the Common Council of the City of South Bend, Indiana August 14, 06 20 Attest: °~~ ' ~. City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana August 15, 20 06 Approved and signed by me August 16 . 20IlSL. City Clerk RESOLUTION NO. ~ ~ Z~~ A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4260 RALPH JONES DRIVE AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (7) SEVEN-YEAR REALPROPERTY TAX ABATEMENT FOR LNW PARTNERS, LLP, d/b/a WE R XHIBITS, INC. WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as (COMPANY ADDRESS), South Bend, Indiana, and which is more particularly described as follows: TOLL ROAD INDUSTRIAL PARK, SECTION 5, LOTS 12A AND 12B, GERMAN TOWNSHIP, ST. JOSEPH COUNTY, INDIANA. and which has Key Numbers 25-1013-0211.16 and 25-1013-0211.17, as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrance's and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to two (2) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of (7) seven years, and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et sea. SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. 9 =• , Member of the C on Counci~ PRESENTED ~ ~ ~ ~ NOT APPROVED ADOPTED ~~ ~~ ~O ~iic~ In Cierfc'S Office J U L 1 9 2006 JOHN VOOO BEN'J, IN. CITY CLE~!~, 1200 ~.0[JNl'Y-CITY 1~UILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 Fax 574!235-9021 TDD 574/ 235-5567 July 17, 2006 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT SHARON T. KENDALL EXECUTIVE DIRECTOR Council Member Roland Kelly, Chairperson Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Commercial Real Property Tax Abatement Petition for: LNW PARTNERS, LLP, d/b/a We R Xhibits, Inc. Dear Council Member Kelly: Please find attached the Department of Community & Economic Development's report on a commercial real property tax abatement petition for the above-referenced petitioner for expansion of a facility located at 4260 Ralph Jones Drive, South Bend. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The report contains the Department's findings relative to the above petition. The petitioner, LNW Partners, LLP, proposes to construct a 13,500 square foot addition onto the existing 24,000 square foot building. The new structure will permit the petitioner to store the clients' exhibit properties, as well as allow the firm to expand its manufacturing area. The addition will also be used as an exhibit set-up area to facilitate production, refurbishing, and client viewing. The total cost of the project is estimated to be $300,000. LNW Partners, LLP, is seeking a (7) seven-year real property tax abatement, and a representative of LNW Partners, LLP, will be available to meet with the Committee on Monday, July 24, 2006. Total taxes abated during the (7) seven-year abatement period is $40,914. Should you or any of the other Council members have any questions concerning the report, or need additional information, please feel free to call me at 235-5825. Sincerely, Sharon Terrell Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Sharon Kendall Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT' 574/235-9660 574/235-9371 EL1zASErH LEONARD FAx: 574/235-9697 574/235-9371 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY $L ECONOMIC DEVELOPMENT SHARON T. KENDALL EXECUTIVE DIRECTOR TAX ABATEMENT REPOR T TO: SOUTH BEND COMMON COUNCIL FROM: SHARON TERRELL SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: LNW PARTNERS, LLP, d/b/a We R Xhibits, Inc. DATE: July 17, 2006 On June 26, 2006, a petition for real property tax abatement consideration for property located at 4260 Ralph Jones Drive was filed with the City Clerk by LNW Partners, LLP. Pursuant to Chapter 2, Article 6, Section 2-82 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community and Economic Development for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petition (a copy of which is attached}, investigated the area, and makes the following report. PROJECT SUMMARY LNW Partners, LLP, d/bfa We R Xhibits, Inc., is afull-service exhibit business that designs and manufactures trade show exhibits. They provide a full line of services from the design and manufacture of exhibits, to trucking the clients' exhibits to their destination, to setup and break down of the exhibits and, finally, storage of the clients' trade show exhibits. The company plans to construct a 13,500 square foot addition onto the existing 24,000 square foot building. The new structure will permit the petitioner to store the clients' exhibit properties, as well as allow the firm to expand its manufacturing area. The addition will also be used as an exhibit set-up area to facilitate production, refurbishing, and client viewing. The estimated cost of the addition is $300,000. Total taxes abated during the (7) seven-year abatement period is $40,914. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM PahteLA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 E[tuaerH LEONARD FAX: 5741235-9697 574/235-9371 South Bend Common Council RE: Tax Abatement for LNW Partners, LLP July 17, 2006 Page 2 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create (2) two new, permanent, full-time jobs and (1) new, permanent, part-time job representing a new annual payroll of $88,500. The project will also maintain (13) thirteen existing, permanent, full-time jobs and (1) one existing, permanent, part-time job representing an annual payroll of $563,500. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has not been granted or associated with any previous tax abatements. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner does meet the qualifications fora (7) seven-year real property tax abatement under Section 2-82, Industrial Development City-Wide. CITY OF SOUTH BEND PETITION FOR REAL PROPERTY TAX ABATEMENT CONSIDERATION The undersigned owner(s) of real property, located within the City of South Bend, hereby petition the Common Council of the City of South Bend for real property tax abatement consideration and pursuant to I.C., 6-1.1-12.1-1, et seq., and South Bend Municipal Code Sec. 2-76 et sea.' for this petition states the following: 1. Describe the proposed redevelopment or rehabilitation project, including information about physical improvements to be made, the proposed use of the improvements, and a general statement as to the importance of the project to your business: The proposed project will be to construct a 13,500 sq. ft. structure which will attach to our existing 24,000 sq. ft. building. We will be using the new structure for storage of our clients' exhibit properties. It will also be used as an exhibit set-up area to facilitate production, refurbishing, and client viewing. At the present time, we do not have the space to house our office staff, shop production and client storage. We are currently leasing warehousing from third party providers. This creates security and logistic issues for our clients. The lack of available space is also a hindrance to our future growth. Existing: 24,000 sq. ft. Land Size 3.21 Acres; Building Size With Addition: 37,500 sq. ft. 2. Describe the overall nature of the business and of the operations occurring at the Property (attach additional sheet if more space is needed): LNW Partners, LLP was formed in 1995 as a real estate holding company. The partnership has two general partners, William F. Henningfeld and Patricia J. Henningfeld (husband and wife). In July 2004,LNW Partners, LLP purchased the real estate at 4260 Ralph Jones Drive from Uni-Partners, LLP. This real estate, in turn, was leased to We R Xhibits, Inc. We R Xhibits, Inc. (lam was formed in March, 2003. It is a Sicb-Chapter S Corporation owned 100% by William F. Henningfeld. WRX is a full service exhibit house (see brochure - Exhibit D). We service our customer base at venues throughout the United States, as well as internationally. We have grown from $800,000 in sales in 2003, to over $2 Million in sales in 2005. At start-trp we employed five people, but by 2003 year-end, we increased our staff to eight. Currently, we employ thirteen full-time and one part-time associates. 3. Estimate the dollar value of the project (excluding land): $ 300,000.00 4. The current assessed valuation of the real property before rehabilitation, redevelopment, economic revitalization, or improvement: $ 583,800.00 1 5. (a) The real property for which tax abatement consideration is petitioned (Property) is owned or to be owned by the following individuals or corporation (if the business organization is publicly held, indicate also the name of the corporation parent, if any and the name under which the corporation has filed with the Securities and Exchange Commission): NAME ADDRESS INTEREST (%) LNWPartners, LLP 4260 Ralph Jones Drive 100% South Bend, IN 46628 (b) The following other person(s) lease, intend to lease, or have an option to buy the Property (include corporate information as required in 5(a) above, if applicable): NAME ADDRESS INTEREST(%) We R Xhibits 4260 Ralph Jones Drive 100% South Bend, IN 46628 6. The commonly known address of the Property is: 4260 Ralph .Tones Drive South Bend, IN 46628 7. The .Key Number(s) of said property is: 25-1013-021117 25-1013-021116 8. A legal description of the above address is attached hereto, marked Exhibit A, and incorporated herein. 9. A map and/or plat describing the Property is attached hereto, marked Exhibit B, and incorporated herein. 10. Photographs of the property, taken within two (2) weeks of filing of this petition, are attached hereto, marked Exhibit C, and incorporated herein. 11. The development or rehabilitation project itself will create 2 full-time and 1 part-time permanent jobs within the first year, representing a new annual payroll of $ 88,500.00 and will maintain 13 existing permanent full-time and 1 existing permanent part-time jobs including existing permanent full- time minority employment of 1 and existing permanent part-time minority employment of 0 with an annual payroll of $ 563,500.00 12.The projected annual salaries for each new position indicated above are estimated to be as follows (If more space is needed, please attach a separate sheet): Full-Time Laborers $ 30,000.00 $ Technical $ 40,000.00 $ Managerial $ n/a $ Administrative $ n/a $ Part-Time n/a n/a 18,500.00 n/a 2 13. Provide current employment wage information including: base rate, cost-of-living allowances, hazardous-duty pay, incentive pay including commissions and production bonuses, on-call pay and tips. Do Not Include: back pay, jury duty pay, overtime pay, severance pay, shift differentials, non-production bonuses, and tuition reimbursements (average hourly rate or range): Full-Time Part-Time Laborers $ 30,000-35,000.00 $ n/a Technical $ 40,000-45,000.00 $ n/a Managerial $ 45,000-50,000.00 $ 20,000-25,000.00 Administrative $ 25,000 - 30,000.00 $ n/a 14. Indicate whether your company provides the following benefits (use Y/N): Y Health Care Benefits Y Pension Plan Y Employer Provided Training (recognized or certified training/educational courses or programs) N Day Care (provide or contribute to the cost of child day care for its employees) N Transportation Assistance (provided direct or indirect support and assistance to its employees without private transportation to get back and forth from residence to place of employment) N Employer-Assisted Housing Program (provide an employer-assisted Home ownership program) N Targeted Hiring Preference (provide hiring preference for residents of Census Tracts designated by the Community & Economic Development Dept. that have the highest unemployment or the highest percentage of low and moderate income individuals). (Additional information may be requested for verification of the above items) 15. List the real and personal property taxes paid at the location during the previous five years, whether paid by the current owner or a previous owner: Year Real Property Taxes Personal Property Taxes 2006 $ 23, 475.96 $ 2,173.92 2005 $ 22,293.26 $ 1,023.24 2004 $ 22,308.17 n/a 2003 $ 41,927.60 n/a 2002 $ 25, 985.26 n/a (This information may be obtained from the St. Joseph County Treasurers office 235-9531). 3 16. Please list the number of full-time and part-time minority employees for each of the last three years: ' Year 2006 2005 Black Full Part Full Part 2004 Full Part Hispanic Asian 1 1 0 Indian Other 17. Does your business maintain an affirmative action plan or other similar plan in order to achieve racial diversity? If yes, please briefly indicate specific goals, objectives, and means as designated by your plan: No 18.Indicate whether or not your project meets any of the following criteria (contact Community & Economic Development Dept. 235-9335 for information on this section): N Conversion to residential use of a commercial Eligible Building as designated by the Community & Economic Development Dept. N Rehabilitation of a building that is either designated as a National Register or local landmark or is eligible for nomination as one, located In a National Register or local landmark district, or rated as Outstanding or Significant in the most recent Historic Preservation Commission country-wide survey N Rehabilitation and reuse of a property that is designated a Problem Property by the Community and Economic Development Department N Pays for the cost of cleaning up a Brownfield, which is any site, building facility or complex that has been designated a Brownfield by the Community and Economic Development Department. Y Achieves a physical element identified in a development or revitalization Plan that has been approved by the Council 4 19. Is your business based upon licensing intellectual property from research conducted at a public or private university, college or community college located within St. Joseph County, Indiana? If yes, please include a description of the research based aspects of the business (attach additional sheet if more space is needed): No 20. Does your business financially support a Municipal Facility (i.e. municipally owned park, recreation center, cultural arts, or entertainment facility)? (1) Northern Indiana Historical Museum (2) Broadway Theatre League (3) College Football Hall of Fame 21.Is your company incurring any of the cost of extension or oversizing of municipal infrastructure serving the project site? This includes water, sewer, drainage facilities, wastewater treatment facilities, road and street improvements, street lighting, traffic control and related public improvements (attach additional sheet if more space is needed): No 22.Information is required on the companies through which construction materials will be purchased for the project. (Please complete the table on page 8 of this application). See Table 23. Information is required on the construction companies that will be utilized for construction of the project. (Please complete the table on page 9 of this application). See Table 24. No building permit has been issued for construction on the property in connection with the improvement in question as of the date of filing of this petition. (The Property Owners signature at the end of this application is verification of this statement). Agreed 5 25.The Standard Industrial Classification (SIC) or North American Industry Classification Systems (NAILS) major group within which the proposed project would be classified, by the number and description: 5963 26.The Internal Revenue Service Code of Principal Business Activity by which the proposed project would be classified, by number and description: 454390 27. The current use of the Property is Light Industrial and Storage and the current zoning is Commercial (use) and - (height and area). (This information may be obtained from the Building Department 235-9554). 28. Has your business been granted previous tax abatement(s)? If yes, please provide type (real and/or personal property) and date of approval. No 29.Other anticipated public financing for the project including, if any, industrial revenue- bonding to be sought or already authorized, assistance through the United States Department of Housing and Urban Development funds form the City of South Bend, Small Business Association Sections 503 and 504 financing through the Business Development corporation of South Bend, Mishawaka, and St. Joseph County, Indiana, Industrial Revolving Fund, Neighborhood Business Development Corporation, Corporation for Entrepreneurial Development; or other public financial assistance, including but not limited to public works improvements. Small Business Association Sections 503/504 financing through the Business Development Corporation of South Bend. 30.The following person(s) should be contacted as Petitioner=s agent regarding additional information and public hearing notifications: Name: Address: City, State, Zip: Telephone: William F. Henninfeld 4260 Ralph Jones Drive South Bend, IN 46628 (574) 271-4860 6 31. Please indicate the name, address, and telephone number of the person who will work with Employment Training Services (ETS) for employee recruitment, and sign the ETS form attached to the petition if the real tax abatement is for warehouse or industrial developments. Name: William F. Henninfeld Address: 4260 Ralph Jones Drive City, State, Zip: South Bend, IN 46628 Telephone: (574) 271-4860 WHEREFORE, Petitioner requests that the Common Council of the City of South Bend, Indiana, adopt a declaratory resolution designating the area described herein to be an economic revitalization area for purposes of tangible real property tax abatement consideration, and after publication of notice and public hearing, determine qualifications for an economic revitalization area have been met, and confirm such resolution. Petitioner herein hereby verifies that the required $250.00 filing fee to cover processing and administrative costs pursuant to Section 2-87.7 of the Municipal Code of the City of South Bend has been paid in full. Name of Property Owner(s): LNW Parrners, LLP William F. Henningfel ~~{~d nIl ~OT~~'~ Q~`~iCL JUN 2 6 2006 BONN VOOFIDE C17Y CLECK, sD. D~ND,1N. 7 22. In the following chart please indicate companies that were used for purchasing materials used in the construction or rehabilitation associated with the project. Include the location of the company, description of the materials, and cost of the materials. Additional information may be requested for verification of this information. (If more space is needed, please photocopy this page) Name and Address of Company Description of Materials Cost of Materials ~ ~ c r~ z ~, ~z N - ~ o° ~ v ~~ o Mid-State Construction, Inc. Pre-engineered Metal Building Approximately $300, 000 53697 CR 9 North Erected on a concrete slab with 2 feet PO Box 667 Masonry on all non-expandable side; . Elkhart, IN 4651 S Includes fire protection, & mechanical and Electrical fixtures. m o cs~ ra. a _": C~ 23.In the following chart please list the companies that will be used for the construction or rehabilitation associated with the project. Indicate the name and address of each company; list the dollar amount of the work to be provided by each company; indicate whether or not 100% of the workers are employees of that company or independent contractors; indicate whether or not the company pays workers wages that meet the wage rates for each classification of laborers and mechanics published by the U.S. Department of Labor; indicate whether or not the company contributes to a health plan for its employees; indicate whether or not the company contributes to a pension plan for its employees; and indicate whether or not the company maintains an affirmative action plan or other similar plan to achieve racial diversity. Additional information may be requested for verification of this information. (If additional space is needed, please photocopy this page). ~ _ C r ~- Z c ~~ N ~ o ~ ~ O Construction Company Cost of All Workers Pay Contribute Contribute Maintain Name and Address Work Employees or Wage to a to a Affirmative independent Rate Health Plan Pension Plan Action Plan contractors /n /n /n /n c Mid-States Construction, Inc. $300, 000 Employees -100% Y Y Y N 53697 C.R. 9 North Elkhart, IN 4651 S t`7 ~'L ~7 n= m o ~- °' ,~.. r.,. z °"' CJ 9 LNW Partners, LLC (We R Xhibits, Inc.) Public Benefit Points Summary Q ualify Public Benefit Item: Y or N Project Related: 1. A. Redevelop a Site that has Special Needs N B. Develop Based on Local University Research N C. Achieve a Physical Element of a Plan Y • Sub-total Project Related: 2. Super Size Proiects (point values are cumulative): A. 100% to 199% (choose only one) Y B. 200% to 299% N C. 300% to 399% N D. 400% and Over N Sub-total Super Size Projects: 3. Construction Related: A. Employ Local Companies Y B. Purchase Materials from Local Companies Y C. Require Employees vs. Independent Contractc Y D. Require Target Wage Levels Y E. Require Health Benefits Y F. Require Pension Benefits Y G. Maintain Affirmative Action Plan N Sub-total Construction Related: 4. Wage 8 Benefit Related: A. Pay Target Wage Levels Y B. Provide Health Benefits Y C. Provide Pension Benefits Y D. Provide Training Y E. Provide Child Care N F. Provide Transportation Assistance N G. Provide Employer Assisted Housing program N Sub-total Wage & Benefit Related: r~ C,? ~ cfl z z 0 G^J O ~ %~ ~ N ~ r,~ s '~. cD ? o N r ~ G ~~ ~ V G.fe 5. Workforce Related: A. Create New Jobs Y B. Retain Existing Jobs Y C. Maintain Affirmative Action Plan N D. Provide Targeted Hiring Preference N Sub-total Workforce Related: 6. Pav for Municipal Infrastructure: (not cumulative, choos e only one) A. Pay for Oversizing or Upgrading N B. Pay for 26-50% of Extension Cost N C. Pay for 51-75% of Extension Cost N D. Pay for 76-100% of Extension Cost N Sub-totallnfrastructure Related: 7. Support a Municipal Facility: A. Support a Municipal Facility Y Total Public Benefit Points: Earned Points 0 0 36 31-Aug-04 Available Points 49 35 36 36 25 0 0 0 25 68 65 52 25 20 20 19 22 22 18 0 121 33 34 29 28 0 0 0 124 42 41 0 0 83 210 20 20 19 22 22 18 20 141 33 34 29 28 15 14 9 162 42 41 35 34 152 0 14 0 26 0 39 0 52 0 52 84 84 473 921 ' Qualification for each Public Benefit Item based on best available information at time of application or good faith determination if no information available. F.4RR/NGTONAPPRA/SALS, /NC. 4260 RALPH JONES DR. SOUTH BEND, /N l~dlnle n+,. ~~ ~cn~-a~~ Ali ~O `~00 D.Lar Exhibit A -- ~ _ o` 'z o _ _ ' - D i r, N AUTEN RD I 1_ ~~ Pk i` `~~ - ~~ o m c ~r ___- --- ~.__~- ~~~Subject--- ~ ~4V~CieveLandPk ~, +~O" cE~ e ~ •• N~acrm mPCon~t~e Toll Road Pk ~ ~ _ Olive Rd C~ ~~ eFCe Pk ;i ~ o~ ct.EVE o ~ ~Q I ~ -- ~n`c_ _ uwo _ 1 ` 11 ~e 1. Blackthorn _ -- s~ -- - t: -°M1' I }~ N_ w Airport Pks ~ o ~ ~R BGC.ima B~i'hmspaeaai~m Caa,rr ~ y ' L0.TNROP ___ •i ~ i ''. _ s '~ ~ St.b PROORE9~ ~ q~ G~ _ ® z rt LandtTl3rk Park .Ameritech z Detailed Location Ma Relating back to the subject, the local industrial real estate market is expected to improve over the next 24 months. The location of the subject is favorable on the northwest side of South Bend, with access to the airport, major roadways, and municipal utilities. The subject offers a functional industrial building in today's market relative to size and overall construction type and quality. The building is in average condition, with no signs of deferred maintenance. Uverall, the level of risk associated with ownership of the subject real estate seems low when compared to older or less functional industrial properties. Therefore, the subject is considered competitive in the current local market. Legal Description The subject is legally described in assessment records as Toll Road Industrial Park, Section 5, Lots 12A and 12B, German Township, St. Joseph Co., Indiana. The plat map to follow shows the overall location and configuration of the subject lots. Assessment records indicate that the subject lots provide a combined land area of 3.21 acres, subject to the completion of a professional boundary survey. G>i~r~i' ~ ®~~i~~ ~il~d !~ JuN 2 6 2006 ~QR~ r*!D, tN• CI't't CI.~RK, 50' 12 .. __ __ _ _~ - - r ~° .r , .r . - r.~ . ,. .. , 1. .... , . Tax Abatement Schedule prepared for: ~$-Jul-os LNW PARTNERS, LLP, d/b/a W R XHIBITS, INC. South Bend German Township 7 Year Real Property Abatement Schedule' Total estimated Project Cost: $300,000 Base Assessed Value: $255,000 (bas e assessed value is estimated at 85% of proj ect cost) Assume constant tax rate of: 5.1376% Assume constant SRTC of: 21.7293% Assessed Gross Less Net Percent Tax Tax Year Value Tax SRTC Tax Abated Abated Paid 1 $255,000 $13,101 $2,847 $10,254 100% $10,254 $0 2 255,000 13,101 2,847 10,254 85% 8,716 1,538 3 255,000 13,101 2,847 10,254 71% 7,280 2,974 4 255,000 13,101 2,847 10,254 57% 5,845 4,409 5 255,000 13,101 2,847 10,254 43% 4,409 5,845 6 255,000 13,101 2,847 10,254 29% 2,974 7,280 7 255,000 13,101 2,847 10,254 14% 1,436 8,818 $71,778 $40,914 $30,864 Total Taxes Due During Abatement: $71,778 Total Taxes Abated During Abatement: 40,914 Total Taxes Paid During Abatement: 30,864 -This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. LNW PARTNERS, LLP, d/b/a WE R XHIBITS, INC. Additional Years of Abatement Mulitfamily Development Projects: From To Additional Years 0 141 0 142 183 1 184 225 2 226 267 3 268 309 4 310 351 5 352 393 6 394 & over 7 Other Development Projects: From To Additional Years 0 300 0 301 357 1 358 414 2 415 471 3 472 528 4 529 585 5 586 642 6 643 921 7 Subtotal from Points Summary: 473 Base Years of Abatement 3 Additional Years of Abatement: 4 Total Years of Abatement: 7 Map of 4260 Ralph Jones Ct South Bend, IN by MapQuest 4260 Ralph Jones Ct South Bend, IN 46628-9793, US Td1A~"aVg'ST~~ _ t - _ i ml ._- {rC "gym ._ ~~'~~(~ 1 ~f ; £'R ~..r I ,_~ t ~ - __~ ~ pr.rtrand ~ _. }~~ _ - (~ ~ ~ ii ~ Q - ~ _ ~ - __ , t ~i^iC; CSI f> ~ ._ ~~ G_~ f ~ ~ ,~"'3 _ __,_ u.~._ ~.. 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No representation is made or warranty given as to its content. User assumes all risk of use. MapQuest and its suppliers assume no responsibility for any loss or delay resulting from such use. http://www.mapquest.com/maps/map.adp?formtype=address&addtohistory=&address=4260%20Ralph%20Jo... 7/7/2006