Bill No. 23-38 Herstoric Properties LLC CONFIRMING South 516 Michigan St, SB, IN 2 yr. Vacant Building tax abatement

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MEMORANDUM OF AGREEMENT (VACANT BUILDING TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of June 13, 2023, serves as confirmation of a commitment by Herstoric Properties, LLC (the "Applicant"), pending a June 26, 2023,public hearing,to comply with the project description,job creation and retention(and associated wage rates and salaries) figures contained in its petition, Statement of Benefits, and attachments and this Agreement. 1. Property Associated with the Abatement and Responsibilities of the Applicant. At the time of this Agreement,the property is located at 516 South Michigan Street, South Bend, IN 46601,and has Key Number 71-08-12-307-003.000-026. Throughout the duration of the abatement, the Applicant shall promptly report any changes in the address or Key Number of the property receiving the abatement to the Department of Community Investment and to the Office of the City Clerk. Moreover, the Applicant also shall report any material changes or improvements made to the property subject to the abatement including changes as the result of subdividing, replatting, or otherwise. The Applicant agrees that failure to promptly report changes can result in a finding of noncompliance on behalf of the Applicant under the commitments of this Agreement. 2. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Common Council(the"SBCC"),the City of South Bend, Indiana, (the "City") commits to provide a two-year (2) vacant building tax abatement for the Applicant, based on the Applicant's commitment set forth in its Application. The Applicant commits to the following(the"Commitments"): (a)making total combined real property expenditures of no less than Five Hundred Thousand dollars ($500,000.00) for the renovation of real property at a parcel identified in Section 1 of this Agreement; (b) creating approximately two (2) permanent full-time jobs with a total estimated annual payroll of One Hundred Forty Thousand dollars($140,000.00); and (c) acting in good faith to complete the project as described in its Application. 3. Applicant's Compliance with City and State Laws. During the term of the abatement, the Applicant shall comply with Chapter 2, Article 6, of the South Bend Municipal 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 by the Project,and the average wage rates and salaries(excluding benefits&overtime) associated with the positions, and the Applicant shall provide the City with adequate written evidence thereof within fifteen (15) days of such request (the "Annual Survey"). The City shall utilize this information and the information required to be filed by the Applicant in the CF-1 Compliance with the Statement of Benefits form to verify that the Applicant has at all times complied with the Commitments after the Commitment Date and during the duration of the abatement and for no other purpose. The 1