04-22-2024 AGENDA PACKET - Laserfiche WebLink

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Filed in Clerk's Office APR 1 7 2024 LETTER AGREEMENT Bianca Tirado City Clerk, South Bend, IN Tax Exemption for New Qualified Property Under Indiana Code 6-1.1-10-44 April 16, 2024 Common Council of the City of South Bend, Indiana County-City Building, 4th Floor South Bend, Indiana 46601 Dear Honorable Council Members, Aunalytics, Inc. and its wholly owned subsidiaries (the "Company") requests that the Common Council(the"Common Council")of the City of South Bend,Indiana(the"City"),take such action as is necessary and required pursuant to Indiana Code 6-1.1-10-44, as amended (the "Act"), to determine that certain new enterprise information technology equipment of the Company is exempt from property taxation pursuant to the Act. On April 23,2012,the Common Council adopted Resolution No.4174-12,a declaratory resolution which provided a tax exemption for an unlimited term pursuant to the Act for certain equipment for Data Realty Northern Indiana, LLC. A confirming resolution (Resolution No. 4278-13) was adopted by the Common Council on September 9, 2013. Data Realty Northern Indiana, LLC, evolved into what is today the Company and formally became a subsidiary in 2019. The Act provides that "any additions to or replacements to" enterprise information technology equipment that qualified for an exemption would also be defined as"qualified property"under the Act, and the exemption would apply to such property. The Company is planning a significant capital investment in personal and real property at its facility at 1440 Ignition Drive in South Bend the"Project").The Company anticipates spending about$30 million to procure personal property for the Project including high-performance Graphics Processing Unit("GPU")servers to advance Artificial Intelligence ("AI") initiatives and expand advanced AI computing resources and services. The planned investment includes the renovation of existing real property to construct space for the establishment of a GPU server cloud. A list of the personal property the Company plans to purchase that meets the definition of qualified property"under the Act is attached hereto as Exhibit 1 (the "Qualified Property"). The equipment is in addition to and replacing existing exempt personal property, and thus the 2012- 2013 exemption would apply to these new purchases.As such,the Company requests the Common Council to confirm that the exemption provided by Resolution No. 4174-12 and confirmed by Resolution No. 4278-13 should be applied to the new Qualified Property. The undersigned,for and on behalf of the Company,hereby asserts and certifies that the Company continues to be an"eligible business"as defined by the Act("Eligible Business"): The Company operates a business in the City of South Bend at 1440 Ignition Drive that is dedicated to computing, networking, or data storage activities;