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• <br /> y <br /> ii.-[;''::'..:.::.''' <br /> f • MEMORANDUM OF AGREEMENT <br /> C AV, '‘--: 11 <br /> This Memorandum of Agreement (Agreement) dated as of the al day ofFEBfa J?y, 2011, <br /> serves as confirmation of a commitment by South Bend Gear, LLC (the "Applicant"), pending a <br /> February '28, 2011, public hearing, to comply with the project description, job creation and <br /> ''..;;• L';'� <br /> 1' retention (and associated wage rates and salaries) figures contained in its petition, Statement of <br /> K Benefits, and attachments and this Agreement (Commitments). <br /> 1. Commitments of City and Applicant. Subject to the adoption of a Declaratory r ' li i Resolution and a Confirmatory Resolution by the South Bend Common Council (the "SBCC"), ' <br /> } <br /> ..11.'-'4,;,:-. 1 the City of South Bend, Indiana (the "City")commits to provide a (5) five-year personal property <br /> i 4 <br /> .1 tax abatement for the Applicant, based on the Applicant's commitment set forth in its ¢ <br /> 1 Application addressing 3849 Showcrlux Drive, South Bend, IN 46628 (Key No. 71-03-21-300- <br /> 001.000-009). The Applicant commits to a capital expenditure of no less than $15,600,000 over 1 <br /> a two year period associated with the acquisition and installation of several pieces of turning, <br /> 1p <br /> gear cutting and gear finishing equipment as well as robots and automation equipment (the f' <br /> "Project") which will create at least twelve (12) new, permanent full-time lobs with an annual i'j <br /> payroll estimated at $550,000 by Februar 15, 2012, and fourteen (14) additional new, <br /> ri I permanent full-time jobs with an annual payroll estimated at $641,000 by February 13, 2013; 1' <br /> f% ' <br /> ii:f. <br /> I t 2. Potential Impact of State of Indiana Circuit Breaker Law: The parties note that <br /> ,�t • 1 the calculations regarding the affect of the tax abatement in question arc based on the State of M <br /> i 'f <br /> Indiana's tax rates currently in effect at the time of entering into this Memorandum of <br /> sAgreement. The complete impact of the State of Indiana's Circuit Breaker law on the City's �r <br /> F <br /> " f property tax revenues is unknown at this time. To assure that the City receives the projected , <br /> el <br /> ' amount of property tax revenues, which amount was calculated at the time of granting the tax <br /> x <br /> abatement for the Applicant, the parties to this Memorandum of Agreement agree to adjust the y - <br /> Ilength of the abatement and/or the percentage of deduction if the tax revenues due under the r <br /> ..i'' )Circuit Breaker Law are less than what was initially projected and represented to the Common <br /> k ` <br /> Council, as evidenced by the supporting documentation submitted to the Council with the ,; , <br /> $ 1' <br /> Applicant's tax abatement petition. llowever, in no case will the adjustments cause the property <br /> taxes to be paid to exceed the tax payments as initially projected <br /> I <br /> Y i pro J tc d and represented to the Common <br /> Council by the aforementioned supporting documentation. <br /> �� ` 4 <br /> Z <br />