18-70 Renewing and Extending the term of the South Bend Urban Enterprise Zone

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November 19, 2018 Filed in Clerks Office Mr.Tim ScottNOV 19 2018 President Urban Enterprise South Bend Common Council KAREEMAH FOWLER Association CITY CLERK,SOUTH BEND,IN OF SOUTH BEND INC. Dear President Scott: The attached resolution is submitted pursuant to Indiana Code 5-28-15- 10(f), new legislation effective July 1, 2018 which permits a Zone to be renewed for an additional five(5) year period if the fiscal body of the municipality in which the enterprise zone is located adopts a resolution to renew. The Urban Enterprise Association of South Bend, Inc. (SBUEA), the Zone's governing body, recommends this renewal and extension and asks for Council's approval. This recommendation is based on the SBUEA's consideration of long term planning and strategy related to three issues: (1) the opportunity for Zone businesses to take advantage of Zone benefits, (2) the ability of the SBUEA to responsibly address the future of its facility-the Sample Street Business Complex (SSBC) and(3)the ability of the SBUEA to attempt to address in some way, opportunities for Zone residents given the outcome of item 2. The current Enterprise Zone is in its 15th year and set to expire December 31, 2018. This resolution would renew and extend the Zone to a new expiration date of December 31, 2023. Per the new legislation the enterprise zone may not be renewed after the expiration of this final five year period. The Enterprise Zone program offers tax benefits to businesses located in the Zone. Businesses must pay a fee to the local UEA if they take advantage of a Zone benefit. State tax benefits under the Zone program have substantially changed over time resulting in decreased revenue to the UEA. The business fees have been the only source that the SBUEA has to continue the operations and maintenance of the Sample Street Business Complex (SSBC), a multi -tenant facility developed to promote and house Zone businesses. The SSBC, originally developed in the late 1980s,has experienced cash flow challenges, still requires SBUEA subsidy to operate and support building repairs/improvements, but continues to be an option for smaller businesses. The SBUEA recognizes that reduced Zone fees cannot be depended upon to address deficits in the operations and maintenance of this facility long term. To that end the SBUEA has continued to pursue new ownership for the property and is currently 227 W. IEFFERSON BLVD. engaged with a potential purchaser. SUIrE 14005 COUNTY-CITY BUILDING Soitmm RFNT,, IN 46601 D