Reconfirming Tax Abatement - The LaSalle Apartments LLC 237 N. Michigan (10 Year Real Property)

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SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to two (2) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of ten (10) years as shown by the attachment pursuant to Indiana Code 6- 1.1- 12.1 -17. This resolution is passed as an exception to the current City Code regarding the applicable deduction percentages for a 10 year abatement for the following reasons: 1. The property has been designated by the Economic Development Commission as an Economic Development Target Area located in the CBD; 2. The property is currently owned by the City Redevelopment Commission and requires annual management and maintenance by the City; 3. The property has been vacant and there has been no realized tax revenue generated from the property for at least ten years; 4. The private investment proposed for the project will exceed three times the amount of the taxes to be abated; 5. The project will pay taxes and those revenues will be net new taxes to the community; 6. The project is aligned with the goals of the SBCDA plan, which specifically targets multi -use projects including support for residential occupancy in the CBD; and 7. There is a significant cost to cure required in the project to make the property functional, conform to the historical nature of the property and return the property to economic viability. SECTION III. This Re- confirming resolution references Confirming Resolution 4330 -14. Real America Development LLC is assuming the approved tax abatement for the LaSalle Hotel property located at 237 North Michigan Street approved by the Common Council on March 24, 2014 for Great Lakes Capital Development. Subject to the adoption of the Re- Confirming Resolution by the South Bend Common Council (the "SBCC "), the City of South Bend, Indiana (the "City ") commits to providing a 10 -year real property tax abatement for the Applicant, based on the Applicant's commitment set forth in the Commitments regarding the rehabilitation of a building located on property identified as 237 North Michigan Street, South Bend, Indiana, approved as part of the Commitments. The Applicant commits to a capital expenditure (from all sources of funds) of approximately $9,537,076 to renovate a building. This project will create nine (9) existing, permanent full -time jobs and zero (0) part-time job with an annual payroll estimated at $315,000. The project will maintain zero (0) existing permanent full -time and zero (0) existing permanent part-time positions. SECTION IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the PRESENTED l� 1� y40T APPROVED UOPT81 ` *1 _LL,-I Filed Its - -- Member of the Common Council i I ,f`+ ............. ..._._.