19-27 Catalyst Three Confirming Real Property Tax Abatement

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TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Angelina Billo SUBJECT: Real Property Tax Abatement Petition For: Catalyst Three,LLC DATE: April 1, 2019 On March 29, 2019, a petition for real property tax abatement consideration for property located in the Ignition Park,South Bend was filed with the City Clerk by Catalyst Three,LLC. Pursuant to Chapter 2, Article 6,Section 2-84.2 of the Municipal Code of the City of South Bend,this petition was referred to the Department of Community Investment 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 Investment has reviewed the petition,investigated the area,and makes the following report. PROJECT SUMMARY • Catalyst Three, LLC is proposing to invest more than $16,000,000 in the construction of approximately 83,000 sq. ft.new office space in the Ignition Park, South Bend. • The new office building is intended to serve as an instrumental factor in retaining a highly valued employer within the City of South Bend. • Total project cost is approximately$16,000,000. • Petitioner is qualified for an eight-year real property tax abatement. • The estimated amount of taxes phased-in for the eight-year abatement is$2,373,722. Estimated paid taxes paid for the eight-year term are$418,898. Current annual taxes are under$1,500. EMPLOYMENT IMPACT As the developer,Catalyst Three,LLC will not have direct employees.However,this site/building is being built-to-suite a very important South Bend corporation that DCI has been working with for the last five years to retain and grow in South Bend.The benefits of this tax incentive will directly impact the retention of, at least, 500 full-time jobs in the City of South Bend.