Confirming Tax Abatement - 211 N. Eddy Street - The South Bend Clinic, LLP, South Bend Mac, L.P. & Eddy Property Development, LLC

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South Bend Common Council RE: Tax Abatement for The South Bend Clinic January 15, 2007 Page 2 The project is estimated to cost between $30 and $33M. Total taxes to be abated during the (3) three-year abatement period is estimated at between $2,047,465 and 2,252,212. Total taxes to be paid during the (3) three-year abatement period is estimated at between $1,039,166 and 1,143,083. After discussions between City staff and the Clinic, it was determined that only (3) three years of base abatement would be applied for instead of working through the Points Benefit Summary to score additional years. Staff was willing to support the request as a business incentive to add in alI of the additional development requirements for the project, but also wanted to protect the TIF increment generation of the NNDA TIF Allocation Area. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create (40} forty new, permanent, full-time jobs and (6) six new, permanent part-time jobs representing a new annual payroll within the first year of $4.86 million. The project will also maintain (409) four hundred nine existing, permanent, full- time jobs and (62) sixty-two existing, permanent, part-time jobs with an annual payroll of $34.5 million. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has been granted or associated with one previous tax abatements: Term/Type Resolution No. Date 5-year real property 3679-07 1/22/2007 (Declaratory Resolution) 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner does not meet the qualifications for a real property tax abatement. A (3) three-year real property tax abatement is being sought as a special exception.