Renewing & Extending the term of the South Bend Urban Enterprise Zone

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i1 'N IL ■ice i ■w��l.� 0•�••■�, November 9, 2012 Urban Enterprise'1 Association OF SOUTH BEND INC. Mr. Derek Dieter President South Bend Common Council 227 W.Jefferson Blvd. Suite 400 South Bend, IN 46601 Dear President Dieter: The attached resolution is submitted pursuant to Indiana Code 5-28-15-10(b) which permits the term of an Indiana Enterprise Zone to be renewed and extended for an additional five (5)years from the date of its current expiration. The South Bend Enterprise Zone is approaching its 10th year with an expiration date of December 31,2013.This resolution would renew and extend the Zone to a new expiration date of December 31,2018. The Urban Enterprise Association of South Bend, Inc. (SBUEA) 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. While tax benefits under a Zone program have changed over time,there remains a group of businesses in the South Bend Zone that continue to take advantage of benefits,and pay the required fee to the SBUEA. Having said that, the change in benefits and the subsequent decrease in fee revenue for Zones is a significant issue. For South Bend,this revenue is 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, house, and incubate Zone businesses. The SBUEA knows it cannot depend long term on Zone fees to address any deficit in the operations and maintenance of this facility. To that end the SBUEA has, and will continue to, pursue new ownership for the Complex. 1200 COUNTY-CITY BUILDING'. The SSBC,originally developed in the late 1980s, has experienced cash flow SOUTH BEND, IN 46601 challenges,still requires SBUEA subsidy to operate and support building Phone: ;74,235-966o repairs/improvements, but continues to be an option for small and start-up Fax: 574/2 15-9697 :...__ ...._..,_...-.,.. ._-:acs