4767-19 SWGS Properties, LLC Confirming Real Property Tax Abatement

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i MEMORANDUM OF AGREEMENT (REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of February 4, 2019, serves as co firmation of a commitment by SWGS Properties, LLC (the"Applicant"), pending a February 11th, 20 9, public hearing, to comply with the project description,job creation and retention (and associated wa e rates and salaries) figures contained in its petition, Statement of Benefits, and attachments and this A Bement(Commitments). I 1. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a Co firmatory Resolution by the South Bend Common Council (the "SBCC"), the City of South Bend, In Sana (the "City") commits to provide a six (6) year real property tax abatement for the Applicant, ba d on the Applicant's commitment set forth in its Application. The Applicant commits to a capital ex enditure of$1,265,000 associated with a building purchase and its renovation. The property is located at 920 W Sample Street, South Bend, IN 46619. This real property project will retain four(4)permanent ful -time jobs with a total estimated annual payroll of $160,576 and create at least sixteen (16) new pe anent full-time jobs with a total estimated annual payroll of$624,000 within four years of the tax ab tement. 2. Potential Impact of State of Indiana Circuit Breaker Law: The parties note that the calculations regarding the effect 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 In `iana'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 ranting the tax abatement for the Applicant, the parties to this Memorandum of Agreement agree to adj st the length of the abatement and/or the percentage of deduction if the tax revenues due under the Ci uit Breaker Law are less than what was initially projected and represented to the Common Council,as evi enced by the supporting documentation submitted to the Council with the Applicant's tax abatement pet tion. However, in no case will the adjustments cause the property taxes to be paid to exceed the tax pa ments as initially projected and represented to the Common Council by the aforementioned supporting do umentation. 3. Applicant's Compliance with City and State Laws. During the term of the abatement,the Applicant sh ll comply with Chapter 2, Article 6 of the South Bend Municipal Code entitled "Tax Abatement Pr edures"and all governing provisions of the Indiana Code. During the term of this abatement,the City m annually request information from the Applicant concerning the nature of the Project, the approved ca ital expenditure of the Project,the number of full-time permanent positions newly created by the Project, an the average wage rates and salaries(excluding benefits&overtime)associated with the positions, and th Applicant shall provide the City with adequate written evidence thereof within 15 days of such request (th "Annual Survey"). The City shall utilize this information and the information required to be filed by th Applicant in the CF-I Compliance with the Statement of Benefits form to verify that the Applicant has co plied with the commitments contained in the Commitments at all times after the Commitment Date and du ill the duration of the abatement. The Applicant further agrees to provide the City with such additional in rmation requested by the City related to the information provided in the Annual Survey and the CF-1 fo within a reasonable time following any such additional request. 11 , _