6A(1) Resolution No. 2588 Tax Abatement

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South Bend Redevelopment Commission RE: Tax Abatement for Ontario Partners June 1, 2009 Page 2 Because of the speculative nature of the proposed project, the petitioners are facing short deadlines. At this time they are still collecting information to support the tax abatement petition. The information provided to date can only support a base abatement of three years. The petitioners are requesting anine-year abatement in accordance with Section 5.7 (Tax Abatement) contained in the Project Agreement signed by the Commission and the petitioners on July 21, 2006. In the interest of conserving time, the petition is being submitted to the Commission for its consideration at this time. The petitioners intend to submit additional information prior to the Common Council meeting to consider their confirming resolution. At that time final points will be awarded and the length of the abatement term set. For purposes of the Redevelopment Commission we are estimating the term at nine years to allow for adjustment up to the full amount they have requested. Anything less will result in a reduction in the amount of tax revenue abated. Assuming anine-year abatement term is approved, the total taxes to be abated during that term are estimated to be $635,240. Total taxes to be paid during the nine-year term are estimated at $723,671. For comparison purposes, if the term became three years, total taxes to be abated are estimated at $268,416. Total taxes to be paid over athree-year term are estimated at $184,554. EMPLOYMENT IMPACT Per the petition, there are no estimates regarding creation of new or existing, permanent, full orpart- time jobs regarding the building due to the speculative nature of the project. ABATEMENT QUALIFICATION Neither Waggoner Farm nor Ontario Partners has received a previous tax abatement. The Huron Building received anine-year real property tax abatement on August 14, 2006 (Resolution No. 3622-06). Holladay Properties, developer for the Ontario and Huron Buildings, has received previous tax abatements through various limited partnerships and limited liability corporations. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property will be located in the Airport Economic 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 can meet the qualifications for up to a nine-year real property tax abatement under Section 2-82, Industrial Development City-Wide.