08-25-08 Council Meeting Agenda & Packet

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South Bend Common Council RE: University Of Notre Dame, Innovation Park At Notre Dame, Inc. August 12, 2008 Page 2 be phased in between 2010 and 2018. The first building will be the main gathering area for the park and provide most of the essential common areas including conference facilities and training resources. The building in Phase I will comprise a facility of approximately 54,000 sq. ft. on three levels and is the subject of this tax abatement petition. The reception area, administration space and «� t, t, , :t:, �.., ..,:.,.,,. +„t. 1< nnn r+ % •tt i. +>^ r._ + t ., t T>- a vreein.t iiti uvawi 1UMILY kaNYiUX1 away v,vvv Sq. iL.) wiii Vii oll 111Ci 111JL 1GVGl. Lll�i JGlJol1U and third levels will be designed as "build -to- suit" tenant areas for general office space and dry or wet lab configurations. The remaining three buildings (Phases II to IV) will provide approximately 146,000 additional square feet of space. They will be primarily used for client- tenant space. The buildings and equipment will be owned by the University and leased to Innovation Park. The buildings and equipment will be owned by the University and leased to Innovation Park. The mission of the park is to transform research into marketable enterprises. The park will accomplish this by providing convenient access to necessary space, administrative services, and internet connectivity in combination with the active engagement of expert technical support, professional business advice and introduction to private risk capital. At the same time, the park will not actively provide the means to advance basic research off campus, or to seek to become a long- term landlord for start-up or other commercial ventures on this site. Instead, the park will encourage the continuous development of its core research/technology platforms and facilitate an accelerated exploration of potential commercial applications, leading to the eventual transplantation of these enterprises into the park's extension at Innovation Park At Notre Dame At Sample Street (i.e. Studebaker Corridor) and other areas. The estimated cost of Phases I — IV construction is $10,000,000 - $60,000,000. The petitioner has also submitted a separate tax abatement petition for personal property for the project. Due to the speculative nature and current timing of the project, there are several unknowns at this time. Therefore, the exact length of the tax abatement term cannot be determined at this time. It is estimated that the term will be a minimum of six years and a maximum of nine years. Prior to consideration of the Confirming Resolution the petitioner will provide additional information required to complete calculation of the Public Benefit Points Summary. Assuming a total project cost of $60,000,000, total taxes to be abated during a (6) six -year abatement period are estimated at $5,478,762. Total taxes to be paid during the (6) six -year abatement period are estimated at $5,421,901. Again, assuming a total project cost of $60,000,000, total taxes to be abated during a (9) nine -year abatement period are estimated at $7,605,694. Total taxes to be paid during the (9) nine -year abatement period are estimated at $8,745,301. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will directly create seventeen to seventy -seven (17 -