6B (5) - Laserfiche WebLink

Home Browse Search

EXHIBIT 3 CRITERIA TO DETERMINE PUBLIC BENEFIT OF RENAISSANCE DISTRICT'S PHASE I AND PHASE II COMMITMENTS The Commission will invest Two Million Two Hundred Thousand Dollars ($2,200,000) in improvements (described in Exhibit "2 "). The Two Million Two Hundred Thousand Dollars ($2,200,000) will be returned to the Commission pursuant to Section 2(a)(iv) ( "Payments Due Commission "). Any Payments due the Commission from Union Station shall be offset by Other Revenues generated by the Phase I Commitments according to the calculation contained in this Exhibit "3''. "Other Revenues" are defined as incremental increases in real and personal property taxes, increases in local income taxes and any energy savings, after recoupment of any Commission Capital investment required to realize the energy savings due to the Phase I Commitments of Union Station to arrive at the deduction to be made from the Payments Due Commission. Incremental Increases in real property taxes shall be determined by establishing the assessed value for taxes payable in 2012 as the Base Assessed Value, which shall be subtracted from subsequent years assessed value to get an incremental increase,. The Base Assessed Value shall be adjusted each year to account for changes not due to the Project (ie: inflation or trending). The St. Joseph County Assessor's Property Tax Records shall be used for purposes of these annual calculations. Property taxes shall be calculated for the adjusted Base Assessed Value and subjected from the then current year's real property tax bill to arrive at the deduction to be made from the Payments Due Commission. Incremental Increases in personal property taxes shall be determined by the property values reported on the State of Indiana Forms 103 and 104 for property purchased after March 1, 2012 and subsequent years. A calculation shall be made each year to determine the amount of personal property taxes which are due to personal property acquired on or before March 1, 2012 and which are due to personal property acquired after March 1, 2012. The personal property taxes related to acquisitions after March 1, 2012 shall be a deduction from Payments Due Commission, to the extent of the City of South Bend, Indiana's ( "City ") share of these taxes. Union Station shall provide the City with copies of their Forms 103 and 104 on an annual basis for purposes of this calculation. Incremental Increase in local income taxes shall be determined by establishing the value of the wages earned from businesses located on the Property prior to 2012 ( "Property Wages "), based on Certifications of number of full -time employees ( "FTEs ") and /or Gross Payroll from Union Station and tenant resident clients located on the Property, then subtracting this from the current year's value of Property Wages, based on current year's Certifications of number of FTEs and Gross Wages. This increase in Gross Wages shall be multiplied by the local income tax rate (currently 1.75 %), and the multiplied by the City's share of these income taxes (currently 40 %). The resulting value shall be a deduction from the Payments Due Commission. Union Station shall be responsible for collecting all certifications.