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HomeMy WebLinkAbout17-76 Tax Abatement for River Park Corp r r Filed in Clerk's Office o4spUTH$ d .� NOV 2 12017 a EACH' .� KAREEMAH FUWLER x x CITY CLERK:SOUTH BEAD, IN ]865 CITY OF SOUTH BEND COMMUNITY INVESTMENT November 21,2017 Council Member Gavin Ferlic,Chairperson Community Investment Committee South Bend Common Council 4th Floor,County City Building South Bend,IN 46601 RE: Real Property Tax Abatement Petition for:River Park Leasing Corp. Dear Council Member Ferlic: Please find the attached information pertaining to a real property tax abatement petition for River Park Leasing Corp. River Park Leasing Corporation,owned by a South Bend native and entrepreneur,is proposing the development and construction of the first new downtown office structure in decades. While exciting for that reason alone,the project is even more desirable as it will be comprised of Class A office and retail space,with premier fit and finishes offering companies and tenants the highest quality of office space.The proposed building will sit on Jefferson&Main downtown, and will be inclusive of high-end ground-floor retail topped by 5 stories of prime office space. Early renderings will be shared at committee. It is also important to recognize the extended impact of job creation and retention this development will drive. The owner/developer can only list and be held accountable for the jobs that will be directly created in his top floor business/office. However,from the first floor retail to four additional floors of office space totaling 38,000 square feet of the building,there will be many more"indirect"jobs created and/or retained in South Bend as a result of this development. EXCELLENCE ( ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 14005 County-City Building 1 227 W.Jefferson Bvld.I South Bend,Indiana 466011 p574.235.9371 i www.southbendin.gov CITY OF SOUTH BEND I COMMUNITY INVESTMENT The owner/developer is,again,a South Bend native.It has been noted that he is pursuing this venture after witnessing a revitalization of downtown South Bend over the past 10 years.Nonetheless,a$9,000,000.00 investment in world-class office space is a significant risk in any metropolitan area. DCI staff recommends that we partner with the developer to mitigate this risk to a reasonable degree and enable this new development in downtown South Bend. A tax abatement is a meaningful tool allowing ramp-up time for the owner/developer to bring tenants into the new retail/office building. The Department of Community Investment's recommendation for support of this project is a 6-year, 100%tax abatement. This level of partnership and investment is supported by the petitioner's level of investment and other"points"factors from their Petition Packet,by the algorithms and computations that drive our objective analyses, and by the investment and participation levels (-15%)that we set as a meaningful benchmark for all deals. It is a good investment for the City of South Bend. In summary the project entails the following: • Purchase of land at$50,000.00 • $9,000,000.00 in Private Investment • Six-story,38Ksf class A retail/office space This packet includes the following: ➢ Department of Community Investment's summary report ➢ Copy of the petition ➢ Statement of Benefits form ➢ Supporting information. Should you or any of the other Council members have any questions concerning the report,or need additional information,please feel free to call me at 235-5823. Sincerely, Daniel J. Buckenmeyer Director, Business Development&Economic Resources Department of Community Investment City of South Bend EXCELLENCE ; ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT 14005 County-City Building j 227 W.Jefferson Bvld.I South Bend,Indiana 466011 p 574.235.93711 www.southbendin.gov �4SOUrxBF�� i Filed in Clerk's Office U d NOV 21 2017 PEACEN X k KAREEMAH FOWLER 1865 CITY CLERK,SOUTH BEND,IN CITY OF SOUTH BEND COMMUNITY INVESTMENT TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: DANIEL BUCKENMEYER SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: River Park Leasing Corporation DATE: November 21,2017 On Tuesday November 211, 2017, a petition from River Park Leasing Corporation was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at the intersection of Jefferson Boulevard and Main Street,South Bend, IN 46601. Pursuant to Chapter 2,Article 6,Section 2-84.2 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community Investment for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area p ursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. I The Department of Community Investment has reviewed the petition(a copy of which is attached), investigated the area,and makes the following report. PROJECT SUMMARY ➢ Construction of the approximately 37,800 sq.ft. class A office building(with first floor retail)which would further support positive impact and growth in downtown South Bend. ➢ This type of office development hasn't been done in over two decades. The top floor of the proposed five (5) story building will house a new start-up aimed to employ 12-20 professionals in the next 2-3 years. ➢ $9,000,000 private investment in the building construction ➢ Land purchase from the Redevelopment Commission for$50,000. ➢ Estimated taxes being abated during six year abatement period—$1,296,000 EXCELLENCE I ACCOUNTABILITY ! INNOVATION I INCLUSION 1 EMPOWERMENT 14005 County-City Building 1 227 W.Jefferson Bvld. South Bend,Indiana 46601 I p 574.235.9371 www.southbendin.gov CITY OF SOUTH BEND ! COMMUNITY INVESTMENT EMPLOYMENT EWPACT Per the petition,it is estimated that the total project will: ➢ Create fifteen(15)direct and permanent full time jobs within 3 years,representing a new annual payroll of$750,000 ➢ Create indirect full time jobs by leasing office space to tenants ➢ The hourly wage for managerial and administrative employees is expected at minimum$25+ EXCELLENCE ! ACCOUNTABILITY ' INNOVATION INCLUSION EMPOWERMENT 1400S County-City Building;227W Jefferson Bvld. South Bend,Indiana 46601,p 574.235.9371 www.southbendin.gov CITY OF SOUTH BEND i COMMUNITY INVESTMENT ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous abatements. 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 River West Development Area. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for a(6)six-year real property tax abatement under section 2-84.2,Tangible Real Property Tax Abatement. EXCELLENCE ; ACCOUNTABILITY ' INNOVATION 1 INCLUSION EMPOWERMENT 14005 County-City Building i 227W.Jefferson Bvld. South Bend.Indiana 46601:In 574.235.9371 www.southbendin.gov i RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS Intersection of Jefferson Blvd and Main St, South Bend, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (6) SIX-YEAR REAL PROPERTY TAX ABATEMENT FOR River Park Leasing Corporation WHEREAS, a petition for real property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that portions of the property located at the intersection of Jefferson Boulevard and Main Street, South Bend, Indiana 46601which is more particularly described as follows: Lot 260AA of the record plat of the Original Town of South Bend, Jefferson and Main, Second Replat recorded on March 25, 2013, as Document No. 1308726 in the Office of the Recorder of St. Joseph County and which has Key Number 018-3007-0231, and be designated as an Economic Revitalization Area under the provisions of Indiana Code 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., and; WHEREAS,the Department of Community Investment has concluded an investigation and prepared a report with information sufficient for the Common Council to determine that the area qualifies as an Economic Revitalization Area under Indiana Code 6-1.1-12.1, et M., and South Bend Municipal Code Sections 2-76,et se ., and has further prepared maps and plats showing the boundaries and such other information regarding the area in question as required by law; and WHEREAS,the Community Investment Committee of the Common Council has reviewed said report and recommended to the Common Council that the area qualifies as an Economic Revitalization Area. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana,as follows: SECTION I. The Common Council hereby determines and finds that the Petition for Real Property Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the requirements of Indiana Code § 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds the following: A. That the description of the proposed redevelopment or rehabilitation meets the applicable standards for such development; B. That the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of this nature; C. That the estimate of the number of individuals who will be employed or whose employment will be retained by the Petitioner can reasonably be expected to result from the proposed described redevelopment or rehabilitation; D. That the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed redevelopment or rehabilitation; E. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation; and F. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code § 6-1.1-12.1-3. SECTION III. The Common Council hereby determines and finds that the proposed described redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement Consideration and the Memorandum of Agreement between the Petitioner and the City of South Bend, and that the Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code § 6-1.1-12.1-3. SECTION IV. The Common Council hereby accepts the report and recommendation of the Community Investment Committee that the area herein described be designated as an Economic Revitalization Area and hereby adopts a Resolution designating this area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION VI. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of(6)six years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17. Year 1 - 100% Year 2 - 100% Year 3 - 100% Year 4- 100% Year 5 - 100% Year 6 - 100% SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana Code § 5-3-1 and Indiana Code § 6-1.1-12.1-2.5, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Member of the Common Council RESOLUTION NO. A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS Intersection of Jefferson Blvd and Main St, South Bend, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SIX (6) YEAR REAL PROPERTY TAX ABATEMENT FOR River Park Leasing Corporation WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as the intersection of Jefferson Boulevard and Main Street, South Bend, Indiana 46601 described as follows: Lot 260AA of the record plat of the Original Town of South Bend, Jefferson and Main, Second Replat recorded on March 25, 2013, as Document No. 1308726 in the Office of the Recorder of St. Joseph County and which has Key Number 018-3007-0231, and be designated as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: 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 1I. The Common Council hereby determines that the property owner is qualified for and is granted real property tax deduction for a period of six (6) years as shown by the schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et se q. Year 1 - 100% Year 2 - 100% Year 3 - 100% Year 4 - 100% Year 5 - 100% Year 6 - 100% SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. Member of the Common Council I o OOOOO a 000 00o00 (�? o NI o o ° o 0 ... W W Y N N N N O 0[a r (h QH �1 LL �- x o �t to o OIOOpp o oo0 coo o U W Y °} o o O O uj N N N N '0 (t J r r LL o 0 0 0 0 0 o 0 00 0 oo o 0 0 p o o o O a o e Y N N r� n o c�0000 0 oo0 o°o oo z m� 000000 0 °o°o v o o a > > y o o °� co 1c Z a cc In 04 N N r r o � N CJ 2 N X O o p O O o O OO p0 00 O O O O O O O F- 0 0 0 0 0 0 O N O NI OO O O O Q pO .On- OOO In 0 .Q Y O O N N N N N N N N N Q Q N N V rr C Fm 3 o o e 0 o o o o o 0 0 0 0 0 0 o coo y y d 0 0 0 0 0 0 0 •� 000 0 ml 00 C. 0 0 .:52 m 000000 a ^` q 0 e ,n F- ccmcric we w yI '� r O Y 0 0 O N N o O N N N N N N N O O O N N O (�C N J q ° rn r , j .Y a Cr m W > .4 o x a' m C c c0000 e rro 008 m chi ail c°o °o °o°o °o °o 2 ` o m o o c'> o00 o o Z--x o00000 0 C p o E 4 4 o co r on 0 0 c�ci� c e m O p O N N N N N N N N N N ` N N q X _ p G C c � 0 O o O O O O o 0 C 0 0 0 0 0 0 O C N r c, N A R C m j-a LL ~ C . U Lq U p Q y V O a >V w v m a (^. 4n O m y E N O d N N N o N R °° o p o C rz C co O 0 0 F O Y d E ri c = x H U W m o � d T N C L N O _ ti C) N C c j o m d E O N CJ N iD j U> N ` O C U d U � O o N �D d x X df9 J Y O w F- L) 1) y Z m w m o c y x m m m d >, a y y E Q ° a 'g ca N N d 0 o d Cay76z 0- Fez m005 NE Q c<< E mU W � NN N ov) Um 4 (7_j U i city of South Bend Petition for Incentives - Petition most include a$250 filing fee payable to the City Clerk's office or online via the City's website at http,llsouthbendin.gov/government/content/tax-abatement before processing can be complete General Information Project NameMain modern office Project Number Legal name as registered with Secretary of River Park Leasing Corporation State Business structure Corporation Company website none Proposed Project Information Proposed project address Parent company name SW Corner(Main and Jefferson) City,State,Zip Legal owner South Bend,IN 46601 Is the real estate owned or Site acreage or acreage required .71 Acres leased - Square feet of facility If leased by whom Proposed New(37,783 Office/Retail) Primary Contact Information Primary company contact name Randall Hesser Title Secretary and Counsel Address of company contact Phone 121 W.Franklin St.,Suite 400 (574)294-7491 City,State,zip Elkhart,IN 46516 Email Senior official Information Company senior official name Title Address of company contact(if different from Phan. above) Email City,State,Zip Consultant Information/Agent Consultant release N/Nj Yes Hired business consul tant/agentname. Great Lakes Capital,LLC Address Local economic development partners Yes 112 West Jefferson, Ste.200 approval N City,State,Zip Email jsmoke @greatlakesrapital.com South Bend,IN 46601 Project Overview Brief description ofyour The entrepreneur and developer/building owner is a South Bend native who as company,project,and why the property is necessary for seen the revitalization of downtown South Bend over the past 10 years. The economic growth developer desires to make a significant proposed investment of at least$8.5 million to develop and construct a class A office building (with first floor retail)to further support positive impact and growth in downtown South Bend. This type of office development hasn't been done in over 2 decades. The top floor of the proposed 5 story building will house a new start-up aimed to employ 12-20 professionals in the next 2-3 years. This proposed employment will complement new employees with ground floor retail space and office users on floors 2-4. The building will have premier fit and finishes and fill a void at the top of the Class A office market,offering companies and tenants the highest quality of office space. Certified Technology Park appropriate NIA Filed I Clerk's office Is the project in aTax Incremental Financing Yes I o f w o Certify that the Building Permit has not peen NumbU Of residential units seated by 0 Correct-no permit NO 7 If this is a petition for personal property tax abatement,has NIA ' CCor� the a ui ment been installed LER SEND,IN Investment Details Public Infrastructure needs(Off- Has any 50.7 funding been What is the value of any equipment being purchased In What is the value of any equipment being site of project in dollars) received. Indiana for the project? purchased from out of state for the project? no i New Project Investments Calendar Year 2016 2017 2018 2019 2020 2021 2022 2023 Land Acquisition $50,000 Building Lease Payments Building Purchase Costs New Building Construction $9,000,000 Existing Building Improvements New Machinery&Equipment Special Tooling/Retooling New Furniture/Fixtures New Computer/IT Hardware New Software On-site Rail Infrastructure On-site Fiber Infrastructure TOTAL $01 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Total hourly Cumulative k of net NEW full time Hourly average wage,w/o Total training Total a to be wage w/o permanent jobs created at project benefits or bonuses,of expenditure- trained-not fringe or cumulative net new jobs not cumulative bonuses cumulative 2016 2017 2018 2019 8 S25+($50,000iyear) $20,000 zozo 1% S25+($50,000/year) 2021 z S25+($50,000.'year) 2022 2023 2024 2025 Z026 2027 Provide hourly wage information for new employees in the following positions. FuB time Part time Laborers Technical Managerial 12 within three(3)years Administrative 3 within three(3)years Who wi et the individual respon5in a ormor matmgwit Randall Hesser WorkOne on recruitin ? Does your company have an EEO hiring polity? Are you an EEO employer? Yes Yes Please list the number of full time and part time minority and/or female employees for each of diversity learya d describe your commitment ing your the last three years: outreach and recruitment efforts for the last Year NA N',A N/A three years as well as current policies. FuIITime Part Time Full Time Part Time Full Tme Part Time Black Hispanic Asian Indian Female Other Cornpletebelow for Real or Personal PropertyTax`A6atement only.' Please sign for all requested incentives. Pubic Benefit Item: 4nfrm�a6tas feFgijred on both the construction compar�e5and the ^ tai htch will provide materials purchased forthlls project. quali Earned Points Available Points �P12a �rJtpletetheiablebelowwiththeappropnatemfoktnation. If (yes or No) nat "lp c�tta�l fol�ibep911t5pleaseentertttteufWlamount�F�avaitable .vx-.s�`�a�����''g-c��#,.Points ..'�ri�Y.�F,�•.� 20 20 � �� h` rctJaae�Ptaterra�lioc�tOrP?5u�s�7 20 C RegG,tepf )nnde;itt�;rctrnss� 20 19 C. Squire revailTng:i�Lag E vlsy ) y3 r D. Requ_m Health benefits - 22 F Reau(re.Pension 2enefts - - - - 1 16 Maintain Affirmative Action Plan: k Y 1 5a @taut Cn nstru Rion Related: 141 x r4 <fi{ o- Y6 Waee&Benefrt-Related(Owner): pay"fargetVYage ieveis " 33 33 © Pronde Health Benefits - 34 Y 29 29 28 28 ems '. 15 F Provl9ildtare Pr wide„q.2 nsportati on Assists rn_e G Prnv:de Em ploye r Assisted-Hocsing Prog ram 9 f ` Sub total Wage&BenefrtRelated: i62 3 Warkforce Related: A create New Jobs - - 42 42 41 6 - Retain-E?iisting lobs- - - 35 C. Maintain AfffrrnatisP Actim Plan 12 Prc.ide Targeted Hiring Preferenzz Sutr-total Workf6rce Related: �� --- .4 SuCPort a Municipal Facility: _ supp "aSBNgnicipalFaci;:y(dc _a^c;isto:ls A. - - zoo;cc-.serratory;museum,e'c.l E= - - - Name cf Faciiit,” " - Sub-total Municipal Facility-- - t MR, - - -Sub-total from Above, =7he undersigned owners)of real property,located within the City of South Bend,herby petition the Common Council of the City oJ_South Bend for a real andfor personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et sea.,and South Bend Municipal Code Sec 2-76 et seg. for this petition state the above. r Submitted By:'` n Date: ovem er 2&-, 7 Sz za For Staf# se• nlY,Belovr Thls Line' ... bEz 1''__. 3sfhe ssRil.���� -=RealErapeny - Fas IPmpa'tY =} - ;.tiP ✓'s'...'1i"'-.t. . Pais gat prnper;y r,= W}lYtt¢tlfe' 1tJeeted',tasF+3edara.��kyi R al Property - .4-} r. zt `ti4 g sg �RIM 8 Rig wmgg�5 p}�,y`t?jtt-jefhayCioogte nwp and street ve.v of th i stion.i�.�. (lea) t a 9YiXeT a: s�a,x Petiwh21.10A PI ii tt urrta¢ al d pc n-1 prop rt�[x P,. !�! _,_ 3 - i:l:r�r, ;=:$-�nS� pa�oforth r4Y c�." T Year Twn Y—,Three ''dl. � V :� Y—Pour x` Please fill out the following Public Benefit Summary Information and add to total from above. ro,NJ Paints Public Benefit Item: ,`s - Proiec2 Related: .>..V A c v.i c -th rF s� alt _ 49 35 35 G. Sub-total Project Related: -5 Supe r Sizeproiects(point values are cumulat 25 A..... - u 2 j%to 299 C 65 C. 300%to 399%- 5-, D_ - .1 CI d Cv=r 210 Sub-total Super Size Projects: 5 3 7 -Pay for Munidpal Infrastructure: 14 zvf^r Oscrs`zi cr Upro 25 39 C. cf Exte 7 s 52 Sub-total Infra strccture Related: 131 539 Total from Applicant Section: 46i Total from Staff Section: -- . :fir Total Public Benefit Points: - - F 018-3006-0178 01 B-3009-0290 018-3006-0140 018-3006-0174 co Lc Lj 0118-3006-0182 F- -1 4,9 5 165 I 1�5---J ====:==Z=Z 4, 172 L —LOB-300,13i --65 9710-2 E D. OTF N lG 018-3007-024T2 c? C) a, L—J to I oc C \ C to CO 0 3.10- 018-3007-0217 o 018.3007 0236 41, Ix 018-3009-02991 V) 1G5 165 1lG&07 018-3007-0220 c? a, c 018-3007-0234 Z 4 016-3007-0239 0 ao 018-3007-0221 LD 018-3007-0235 (D 0*18-3007-0222 018-3009-0303 F-1 ---139 ayire-.3 t Legend Michiana Regional GIS Website Z txtSubTitle a) d SJC Parcel Dimensions Map Generated Elf. Public 1 inch=74.94 feet .2 CC Z 41= UJ LIJ F_j SJC Parcels DatePrinted 11212017 0 r— -J 00 ELK Parcels Miles 0 SJC Street 0 0.00 0-01 001 ELK Street CQ < I j Building Footprint Coordinate grid is based on Indiana East State Plane Coordinate System 1983 North C) R, I Railroad American Datum. CD M UJ -0 Railroad 1 Abandoned Railroad Information shown on this map is not warranted for accuracy or merchantability. Q-) Road Centerline Reproduction or distribution of this material is not authorized without the express written F-I Railroad Bridae, permission of MACOG. �_a�_r+�...`verrr...uvrrravvL.rv�irv..� t\ , State Form 51767(R6 110-14) FORM SB-7/Real Property i `�`s,9 Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost of the property and specific salaries ❑Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) paid to individual employees by the ❑Residentially distressed area(IC 6-1.1-12.1-4.1) property ovrner is confidential per IC 6-1.1-12.1-5.1. INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area priorto the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be submitted to the designating body BEFORE the redevelopment orrehabilitation of real property for which the person wishes to claim a deduction. 2. The statement ofbenen`ts form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction,a Form 3221RE must be filed with the County Auditor before May 10 in the yearinn which the addition to assessed valuation is made or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed afterApril 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between March 1 and May 10 of subsequent year. 4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable. IC 6-1.1-12.1-5.1(b) 5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body remains in effect. IC 6-1.1-12.1-17 TAXPAYER SECTION I INFORMATION Name of taxpayer River Park Leasing Corporation Address of taxpayer(numberand street,city,state,and 7JPcode) c/o Randall Hesser; 121 West Franklin, Suite 400; Elkhart, Indiana 46516 Name of contact person Telephone number E-mail address Randall Hesser ( 574 ) 294-7491 Name of designating body Resolution number Common Council of City of South Bend Location of property County DLGF taxing district number SW Corner of Main St. and Jefferson Blvd., South B St. Joseph 71-011 Description of real properly improvements,redevelopment,or rehabilitation(use addWonal sheets irnecessary) Estimated start date(month,day,year) Proposed investment of at least$9,000,000 to the development and construction of a new office buldng(with first March 2018 floor retail)at the SIN comer of Main Street and Jefferson Blvd.,in South Bend,Indiana. Estimated completion date(month.day,year) July 2019 ;jell I=1 1111111W= Current number Salaries Number retained Salaries Numb er add icna' S75es REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values Plus estimated values of proposed project Less values of any property being replaced Net estimated values upon completion of project Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) °iaSE 9%fisestimates that the project will result in the creation of at least 15 new full time jobs having an annual payroll of$750,000 within three years of building completion. These jobs are in addition to the creation of employment by tenants within the first floor retail and office tenants on floors 2-4 of the building. SECTION • I hereby certify that the representations in this statement are true. Signal ure of tho' ed representative Date signed(month,day,year) au f, Nov. ZO , 2017 Printed name of authorized representative Title A �OWar1� C.�tJ�9 �•��A�1Sr// i We find that thL applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed calendar years'(see below). The date this designation expires is B. The type of deduction that is allowed in the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements ❑Yes ❑No 2.Residentially distressed areas ❑Yes ❑No C. The amount of the deduction applicable is limited to$ D. Other limitations or conditions(specify) E. Number of years allowed: ❑Year 1 ❑Year 2 ❑Year 3 ❑Year 4 ❑ Year 5 (*see below) ❑Year 6 ❑Year 7 ❑Year 8 ❑Year 9 ❑ Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17? ❑Yes ❑No If yes,attach a copy of the abatement schedule to this form. If no,the designating body is required to establish an abatement schedule before the deduction can be determined. We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved(signature and S1Ie of authorized member of designating body) Telephone number Date signed(month,day,year) Printed name of authorized member of designating body Name of designating body Attested by(signature and We ofatfeste6 Printed name of atlester If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. A. For residentially distressed areas where the Form SBA/Real Property was approved prior to July 1,2013,the deductions established in IC 6-1.1-12.1-4.1 remain in effect.The deduction period may not exceed five(5)years. For a Form S13-1/Real Property that is approved after June 30, 2013,the designating body is required to establish an abatement schedule for each deduction allowed. The deduction period may not exceed ten (10)years. (See IC 6-1.1-12.1-17 below.) B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1,2013,the abatement schedule approved by the designating body remains in effect.For a Form S13-1/Real Property that is approved after June 30,2013,the designating body is required to establish an abatement schedule for each deduction allowed.(See IC 6-1.1-12.1-17 below.) IC 6-1.1-12.1-17 Abatement schedules Sec.17.(a)A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayers investment in real and personal property. (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment (b) This subsection applies to a statement of benefits approved after June 30,2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An abatement schedule may not exceed ten(10)years. (c) An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayers statement of benefits. Filed in Clerk's Office E V 212011 KAREEMA I FOWLER CITY CLERK,SOUTH BEND,IN