5041-23 CONFIRMING - Multiple Properties 10-Year Real Property Tax Abatement

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MEMORANDUM OF AGREEMENT (MULTI-FAMILY RESIDENTIAL DEVELOPMENT REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of July 7, 2023, serves as confirmation of a commitment by Advantix Development Corporation (the "Applicant"), pending a July 10, 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 properties to which the abatement applies are described in Exhibit A,which is attached hereto and incorporated into this Agreement. Throughout the duration of the abatement, the Applicant shall promptly report any changes in the addresses or Key Numbers of the parcels 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 properties 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 ten-year (10) multi-family residential development real property 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 Thirteen Million Seven Hundred Thousand Dollars ($13,700,000.00) for the construction of new single-family homes, duplexes, townhomes, and other structures, which together would provide approximately fifty(50) affordable housing units at the properties identified in Exhibit A of this Agreement; (b)creating and managing a lease-purchase program in compliance with the Indiana Rental Housing Tax Credit Program, allowing low-income tenants to pay towards the purchase of the residential units to which this Agreement applies; 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 1