Bill No. 22-48 Confirming the Adoption of a Declaratory Resolution Steel Warehouse Tax Abatement

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MEMORANDUM OF AGREEMENT (PERSONAL PROPER TY TAX ABATEMEN T) OCT 1 9 2022 DA\"1N 1.~ JONE ', CITY ' ; ·:D. IN This Memorandum of Agreement (Agreement) da ted as ----~ 2022 , serves as confirmation of a commitment by Steel Warehouse Company LLC (the "Applicant"), pending an October 24 , 2022 , public hearing, to comply with the project de scription, job creation, and retention (and a ssociated wage rates and salaries) figures contained in it s petition, Statement of Benefits, and attachments and this Agreement (Commitments). l. C omm itm ents of C it y and A ppl icant. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Comm on Council (the "SBCC "), the City of South Bend, Indiana (the "City") commits to provide a five (5) year personal property tax abatement for the Applicant, based on the Applicant 's commitment set forth in its Application. The Applicant commits to a capital expenditure of $3 ,69 7,00 0 associated w ith the purchase ofnew industrial cold reducing mill equipment for Steel Warehouse Company LLC located at 2722 W . Tucker Driv e, South Bend, IN 46619. This p ersonal property project will result in the creation of at least ten (10) permanent full-time jobs wi th a total estimated annual payroll of at least $367,756 . 2 . A ppli ca nt 's Co mpli a nce w it h C ity and Sta te Laws . During the term of the abatement, the Applicant shall comply with Chapter 2 , Article 6 of the South Bend Muni cipal Code entitled "Tax Abatement Procedures" and all governing provisions of the Indiana Code. During the term of this abatement, the City may annually request information from the Applicant concerning the nature of the Project, the approved capital expenditure of the Project, the number of full-time permanent positions newly created b y the Project, and the averag e wage rates and salaries (excluding benefits & overtime) associated w ith the positions, and the Applicant shall provide the City w ith adequate written evidence thereof within 15 days of such request (the "Annual Survey"). The City shall utilize thi s information and the informatio n required to be filed by the Applicant in the CF-1 Compliance with the Statement of Benefits form to verify that the Applicant has complied with the commitments contained in the Commitments at all times after the Commitment Date and during the duration of the abatement. The Applicant further agrees to provide the City with such additional information requested by the City related to the information provided in the Annual Survey and the CF-1 form within a rea sonable time following any such additional request. 3. Substan ti a l C omp li ance and Ri ghts of Termina ti on . The City , by and through the SBCC, reserves the right to terminate the Economic Revitalizati on Area designation and associated property tax abatement deductions if it determines that the Applicant has not made reasonable efforts to substantially comply with all the Commitments, and the Applicant's failure to substantially comply with the Commitments w as not due to factors beyond its reasonable control. As used in this Agreement, "substantial compliance" shall mean the Appli cant's compliance with the following : (a) making personal property expenditures of no less than Three Million Six Hundred Ninety Seven Thousand dollars ($3 ,697 ,000) for new industrial cold reducing mill equipment; (b) this personal property project will create at least ten (I 0) permanent full-time jobs with a total estimated annual payroll of $367,7 56 .