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HomeMy WebLinkAbout18-20 Confirming Property Tax Abatement Petition - Franklin Street Technology Park, LLC i "�`$��►� FF Clerk's Office 'PEACE 18 2 01 ''I 18ri5 '- = r_�CITY OF SOUTH BEND ' °�TFI EE;tii�,!�!_ COMMUNITY INVESTMENT JAMES MUELLER, EXECUTIVE DIRECTOR April 18,2018 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: Franklin Street Technology Park,LLC Dear Council Member Ferlic: Please find attached the Department of Community Investment's report on a real property tax abatement petition for the above-referenced petitioner. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The project calls for the construction of three office buildings,located at the intersection of Sample Street and Franklin Street,South Bend. The report contains the Department's findings relative to the above petition. The total cost for the construction is estimated at $3,000,000 over a four year period. The project meets the qualifications for an eight-year real property tax abatement and a representative from Franklin Street Technology Park,LLC will be available to meet with the Committee on Monday,April 23, 2018. 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. Sincer y, I Daniel . uckenmeyer Director of Business Development and Economic Resources D:\KIEI j BUCKENNIEI'ER AI.KEr\A ALDRIDGE PAMELA MEYER Tm CORCORA.\ BUS mm,DwELOPMF-w E\C:\CENiF\-r&ECO\O\Iic EAIPO\\-E"IF\T NEICIIRORIIOOD DEVELOPmwr Pf_l\N1:C&Co\f.\arNi-Y REsoL-RC.Es EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION . EMPOWERMENT 14005 County-City Building:227W.Jefferson Blvd. South Bend,Indiana 46601 p574.235,9371 www.southbendin.gov BILL NO. 18-20 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 Sample St. and Franklin St., South Bend, IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT (8) YEAR REAL PROPERTY TAX ABATEMENT FOR Franklin Street Technology Park, LLC 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 Sample Street and Franklin Street, South Bend, Indiana described as follows: Parcel I: Lot Numbered One (1) as shown on the recorded Plat of Studebaker Corridor Fourth Minor Subdivision, recorded May 7, 1993 as Document Number 9315731 in the Office of the Recorder of St. Joseph County,Indiana. Parcel II: Lots Numbered Fifty-three (53) and Fifty-four (54) as shown on the recorded Plat of South Bend City, as platted by Samuel Morrison, now a part of the City of South Bend, in St. Joseph County, Indiana. Parcel III: Lots Numbered Fifty-five (55) and Fifty-six(56) as shown on the recorded Plat of South Bend City, as platted by Samuel Morrison, now a part of the City of South Bend, in St.Joseph County, Indiana. Parcel IV: Lots Numbered Fifty-seven (57), Fifty-eight(58), Fifty-nine (59), Sixty (60), Seventy-one (71), Seventy-two (72), Seventy-three (73) and Seventy-four (74) all as shown on the recorded Plat of South Bend City, platted by Samuel Morrison, now within and a part of the City of South Bend,Indiana. and which have Key Numbers 018-8002-0061, 018-8002-0070, 018-8002-0071, 018-8002- 0073, 018-8002-0074, 018-8002-0075, 018-8002-0076, 018-8002-0077, 018-8002-0078, 018- 8002-0079, 018-8002-0094, 018-8002-0096, 018-8002-0097, 018-8002-0098, 018-8002-0099, 018-8002-0100, 018-8002-0101, 018-8002-0102, and 018-8002-0104, 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 four (4) 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 eight (8) 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 seQ. Year 1 - 100% Year 2 - 100% Year 3 - 95% Year 4 - 90% Year 5 - 85% Year 6 - 80% Year 7—75% Year 8 - 70% 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. Tim Scott, Council President South Bend Common Council Rod in C(nrk,F nffica APR 18 2018 TAX ABATEMENT REPORT ' C �? J �`r��-Erg 'I C?T`! !_�rK„� t1TH BFP l[l). 1,11-I TO: SOUTH BEND COMMON COUNCIL FROM: DANIEL BUCKENMEYER SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: Franklin Street Technology Park,LLC DATE: April 18,2018 On Thursday March 29'x', 2018, a petition from Franklin Street Technology Park, LLC was received and subsequently filed with the City Clerk for real property tax abatement consideration for property to be located at the intersection of Sample Street and Franklin 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 pursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. 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 60,000 sq. ft. three standalone buildings with flexible use space. ➢ The proposed construction will be located on the block bounded by Sample Street, Franklin Street, Garst Street and Lafayette Street adjacent to the main campus of Ignition Park. The new space will be leased out to various small companies for a variety of uses including light manufacturing and assembly, service contractors, distribution companies and technology maintenance and support companies. ➢ In the first phase a building approximately 30,000 sq.ft.will be built as speculative space in anticipation of tenant needs. An additional 30,000 sq.ft. will be designed and added as specific needs and tenants are identified.The space will allow various types of companies to start operations or to expand into larger spaces. This type pf space will complement the larger structures contemplated for Ignition Park. ➢ The project is expected to create approximately 60 indirect jobs in the next five years. ➢ $3,000,000 private investment in the buildings construction. ➢ Land purchase from the Redevelopment Commission for$84,000. ➢ Estimated taxes being paid during eight year abatement period—$137,488 ➢ Estimated taxes being abated during eight year abatement period—$438,512 EMPLOYMENT IMPACT Per the petition,it is estimated that the total project will: _ ➢ Create sixty(60)indirect jobs APR 18 2018 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 Area Plan Commission 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 an(8)eight-year real property tax abatement under section 2-84.2,Tangible Real Property Tax Abatement. o m 0 0 0 0 o N O N S O S 1 000 p 0 N N O O A O W N v S S N N O 0 n N N T O O O O eP N O N O O O t, co N r h O O } 999 �* .Ni vNi �N •- Y m m N o gg W °mm08S2i � m°a_o 00°00 I e—i \. � m 8 N r 1 S yl S S S N N (a0 O O Oo 0 N N A`t O 000 0 0 q o 00 m m S O S Yml O S S m N N U J I coo d m°— o o r v m in N m Y m ogS Iq �i g g ZF'al �inN v f O. O OWN V t0 m ^ mei O)N m S Q O V N r N O N N y U OO N0000 o O O O O OS O } 99 Q N N a N tv�O W W fV�O N m ' K ` Gl d o 0 0 0 0 0 0 0 00. 0 0 0 , ; y $o S S S S g S p, o °o y o0o umi o °o, G 00000.00 o [q f1 0 o v e .n U . p, l7 N N N W Y l 52 10 f9 L°OE�$OS rna8 o0o Z'om b0008888 o > L S d O O O m N N` nnr nr n� 1.2 m a O O i Q N tV L C r o 'u mm0 o m coo 000 c 00000000 o c N � c � O C >U 4' �Nno�nmrm E� c � mCL _ge 000 m m Z.� gaoo § y�q rio �c Y C E o Q FmUW c a- m o > E- 0, o`_m u m y n E O c = U o U v m m na uY �9 m p H q m o o m _a A c m m r r> > > Eo moo°ci =? W � O tll J w Um Q C7� U PROJECT OVERVIEW APR 18 2018 -•'!FOB^ILER Franklin Street Technology Park LLC proposes to construct approximately 60,000 sqft of flexible use space in three phases concluding in 2022. The proposed construction will be located on a blockjust south of the county jail bounded by Sample Street, Franklin Street,Garst Street and Lafayette Street adjacent to the main campus of Ignition Park. The intent is to lease the space to various small companies for a variety of uses including light manufacturing and assembly,service contractors,distribution companies and technology maintenance and support companies. Based on an estimate of one employee per 1,000 sqft of space, it is estimated that the project will support the employment of 60 people. The first phase, (approx. 30,000 sqft)will be built as speculative space in anticipation of tenant needs. An additional 30,000 sqft of space will be designed and added as specific needs and tenants are identified.The space,as constructed,will allow various types of companies to start operations or to expand into larger spaces.This type of space will complement the larger and higher-end structures contemplated for Ignition Park. i s i BILL NO. 18-18 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 Sample St. and Franklin St., South Bend, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN (8) EIGHT-YEAR REAL PROPERTY TAX ABATEMENT FOR Franklin Street Technology Park, LLC 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 Sample Street and Franklin Street, South Bend, Indiana which is more particularly described as follows: Parcel I: Lot Numbered One (1) as shown on the recorded Plat of Studebaker Corridor Fourth Minor Subdivision, recorded May 7, 1993 as Document Number 9315731 in the Office of the Recorder of St. Joseph County, Indiana. Parcel II: Lots Numbered Fifty-three (53) and Fifty-four (54) as shown on the recorded Plat of South Bend City, as platted by Samuel Morrison, now a part of the City of South Bend, in St.Joseph County, Indiana. Parcel III: Lots Numbered Fifty-five (55) and Fifty-six (56) as shown on the recorded Plat of South Bend City,as platted by Samuel Morrison, now a part of the City of South Bend, in St. Joseph County, Indiana. Parcel IV: Lots Numbered Fifty-seven (57), Fifty-eight(58), Fifty-nine (59), Sixty (60), Seventy-one (71), Seventy-two (72), Seventy-three (73) and Sevenh-four (74) all as shown on the recorded Plat of South Bend City, platted by Samuel Morrison, no« «ithin and a part of the City of South Bend,Indiana. and which have Key Numbers 018-8002-0061, 018-8002-0070, 018-8002-0071, 018-8002-0073, 018-8002-0074, 018-8002-0075, 018-8002-0076, 018-8002-0077, 018-8002-0078, 018-8002- 0079, 018-8002-0094, 018-8002-0096, 018-8002-0097, 018-8002-0098, 018-8002-0099, 018- 8002-0100,018-8002-0101,018-8002-0102,and 018-8002-0104,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 seg., 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 s�Mc., and South Bend Municipal Code Sections 2-76,et seg., 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 1. 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 four (4) 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(8) eight 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 - 95% Year 4- 90% Year 5 - 85% Year 6- 80% Year 7—75% Year 8 - 70% 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. Tim Scott, Council President South Bend Common Council City of South Bend 045°uTgg Petition for Incentives Petition must include a$150 filing fee payable to the City Clerk's Office or online via the City's website at toss http://southbendin.gov/government/content/tax-abatement before processing Can be complete General Information Project Name 900Franklin Project Number Legal name as registered with Secretaryof Franklin Street Technology Park LLC Business structure Indiana Limited Liability Company Companywebsite 900FranklinStreet.com Proposed Project Information Proposed project address 900 Franklin Street Parent company name Five Corners LLC City,state,Zip South Bend, IN 46601 Legal owner Site acreage or acreage required 4.5 acres Is the real estate owned or to be owned square feet of facility 60,000 If leased by whom Primary Contact Information Primary company contact name Charles Hayes Title Managing Member Address of company contact 814 Marietta Street Phone 574-233-1296 City,state,zip South Bend, IN 46601 Email cshayes @telecompark.com Senior Official Information Company senior official name Charles S Hayes Title Managing Member Address of company contact(If different from Phone abovel City,State,Zip Consultant Information/Agent Hired business consultant/agent name Consultant release(Y/N) Address Local economic development partners a ravel Y N City,State,Zip Email Project Overview Brief description ofyour company,project,and why the See Attached property Is necessary for economic growth Filed in Clerk's Office EE arf,CLERK,SOUTH BEND,IN Certified Technology Park appropriate Yes Is the project in a Tax Incremental Financing River West F r w Certify that the Building Permit has not been Yes Number of residential unls created by n/a issued WNI If this is a petition for personal property tax abatement,has n/a the equipment been installed Investment Details Public Infrastructure needs(OH- Has any 504 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? New Proiect Investments Calendar Year 2016 2017 2018 2019 2020 2021 2022 2023 Land Acquisition $84,000 Building Lease Payments Building Purchase Costs New Building Construction $1,500,000 $750,000 $750,000 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 $0 $84,000 $0 Is 1,500,000 $750,000 $750,000 $0 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Total hourly Cumulative N of net NEW full time Hourly average w2ge,w/o Total training Total lf to be wage w/o permanent jobs created at project benefits or bonuses,of expenditure- mined-not fringe or cumulative net new jobs not cumulative bonuses cumulative 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers Technical Managerial Administrative o wi e t e in m ua responsible for coordinating w,t WorkOne on recruitin ? Does your company have an EEO hiring policy? Are you an EEO employer? Please list the number of full time and part time minority and/or female employees for each of Please es commitment diversity nd indusion detailing your the last three years: outreach and recruitment efforts for the last Year three years as Weil as current policies. Full Time Part Time Full Time Partrme full Time Part Time Black Hispanic Asian Indian Female Other i i Complete below for Real or Personal Property Tax Abatement only. Please sign for all requested incentives. Public Benefit Item: Information is required on both the construction companies and the companies which will provide materials purchased for this project. Qualify Please complete the table below with the appropriate information. If (Yes or No) Earned Points Available Points you qualify for the points,please enter the full amount of available points. 1 Construction Related(Contractorsl: A. Employ Local Companies(755') Y 20 20 B. I Purchase Materials from Local Companies(75%) Y 20 20 C. Require Employees vs.Independent Contractors Y 19 19 D. Require Prevailing Wage(Davis Bacon) Y 22 22 E. Require Health Benefits Y 22 22 F. Require Pension Benefits Y 18 18 G. Maintain Affirmative Action Plan Y 20 20 Sub-total Construction Related: 141 1,1 . 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels n 0 33 B. Provide Health Benefits n 0 34 C. Provide Pension Benefits n 0 29 D. Provide Training n 0 28 E. Provide Child Care n 0 IS F. Provide Transportation Assistance n 0 14 G. Provide Employer Assisted Housing program n 0 9 Sub-total Wage&Benefit Related: 0 162 3 Workforce Related: F C. Create New Jobs Y 42 »2 Retain Existing Jobs Y 41 41 Maintain Affirmative Action Plan y 35 35 Y a4 D. Provide Targeted Hiring Preference 34 Sub-total Workforce Related: 152 152 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A' zoo,conservatory,museum,etc.) n 0 g; Name of Facility Sub-total Municipal Facility: - 8. Sub-total from Above: 2 539 The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and South Bend Municipal Code Sec.2-76 et seq.•for this petition state the above. Submitted By: I Anne Hayes I Date: 1 03/2812018 For Staff Use Only Below This Line What is the current assessed value? Real Property: Personal Property: What Is the projected assessed value? Real Property: Personal Property: What is the tax key number for this project? What is the six digit NAICS code? Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. Year One i Year Two i Year Three Year Four Year Five Please fill out the following Public Benefit Summary Information and add to total from above. Y or N Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs 49 8. Develop Based on Local University Research 35 C. Achieve a Physical Element of a Plan 3 36 Sub-total Project Related: 120 6 Super Size Projects[point values are cumulativej: 25 A. 100%to 199% B. 200%to 299% 6 C. 300 to 399% 65 5 % D. 400%and Over 5 52 Sub-total Super Size Projects: 210 7 Pay for Municipal Infrastructure: 14 A. Pay for Oversizing or Upgrading 26 B. Pay for 26-50%of Extension Cost C. Pay for 51-75%of Extension Cost 39 D. Pay for 76-100%of Extension Cost 52 Sub-total Infrastructure Related: '_31 Total from Applicant Section: oCJ 539 Total from Staff Section: p 461 Total Public Benefit Points: 9. 1000 �^`°"• STATEMENT OF BENEFITS Filed in Clerk's Office 20_PAY 20_ REAL ESTATE IMPROVEMENTS i FORM SB-1/Real Property State Form 51767(R6/10-14) MAR 2 9 2018 ' Prescribed by the Department of Local Government Finan a PRIVACY NOTICE This statement is being completed for real property that qualifies under th L-4) Indiana Code check one box): Any information concerning the cost of the property and specific salaries [�Redevelopment or rehabilitation of real estate improvements(IC 6-1.1AREEMAi-i FOWLER paid to indmdual employees by the Residentially distressed area(IC 6-1.1-12.1-4.1) LERK,SOUTH BEND IN property owner is confidential per BEND, IC 6-1.1-owner.1. INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to 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 or rehabilitation of real property for which the person wishes to claim a deduction. 2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the inflation 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 year in 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 after April 10. A property owner who failed to file a deduction application within the prescribed deadline may file an application between March land May 10 of a subsequent year 4. A property owner who files for the deduction must provide the County Auditor and designating body with a Form CF-!/Real Property. The Form CF-!/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-!/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 SECTION TAXPAYER INFORMATION Name of taxpayer Franklin Street Technology Park LLC Address of taxpayer(number and street city,state,and ZIP code) 814 Marietta Street South Bend, IN 46601 Name of contact person Telephone number E-mail address Anne Hayes ( 574 ) 233-1296 ahayes @telecom park.corn Name designating body Resoluticr:ncmGer of d Location of property County DLGF taxing district numbw 900 Franklin Street St Joseph Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year) SEE ATTACHED July 2018 Estimated completion date(month,day,year) July 2022 HOW Was MKIL01 Current number Salaries Number retained Salaries Number additional Salar es 0.00 0.00 REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values 84,000.00 Pius estimated values of proposed project 3,000,000.00 Less values of any property being replaced Net estimated values upon completion of project a'.000.00 Estimated solid waste convened(pounds) Estimated hazardous waste converted(pounds) Other benefits SECTION I hereby ceitify that the representations in this statement are true. Signature of authorized reprsen Date signed(month,day,year) — / 103/28/2018 Printed name uthorized representative Title Anne Hayes Member Page 1 of 2 FOR USE OF THE DESIGNATING :.. We find that the 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 S ❑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 title ofauthorized member ofdesignafing body) Telephone number Date signed(month,day,year) Printed name of authorized member of designating body Name of designating body El Attested by(signature and fide of attester) Printed name of attester '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 SB-1/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 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. 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 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.(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 taxpayer's 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 taxpayer's statement of benefits. I J f Page 2 of 2 i i I i y 5 N a) 3 rn x f6 E n E _ E cu °e - — t as° a` m �n = o ao b'o° ros° �° e ° U c t� V V W ° = m P ° E ., o qq 55N�� N ��]] £ •Uy o ain�rcJ �b � m°o3wrt Zti` - O❑II II ❑® Fig v9 BLZ ° S 0 99 0 99 —eta Mr ZU CL CL [t C at OT CC LL CL .+CC JCL ZI91-Z1oC•et0 Ut ._f „w _— _ ++ .__�^ __� •", i + ' _ -OP rl °s °s ° SL CL i CL C CC CL LL Ci <A ALAI SZ SL_SZ LLL-..�-���—�— <,g M q. 7l 99 99 6C B2 v^IBa1NArt�a (S OU 99 99 99 99 CC a ZCt [C L- CC 7l c $ s s � Q ° o � 7CI 5 5 09 t•Z 8 ! 0 3 $ v g ° 9 0'$ b a � � E FE El It ft 9s i•3t ( —° o N � O I Z � ,u 919" d Z a I G E mo IZO9 eta Franklin St& W Sample St-Google Maps Page 1 of 1 Go gle Maps Franklin St&W Sample St w mn s, C Undcd Dcveragrs � f Q B tl•Pack Q Q © St Joseph County Jab© 0 Center For the Homeless Q ' South Bend Police so South Bend Police Station The Drop Comedy Club Q Dn Grace Church Franklin Street 6 West Sample Street W Sample St B 6 W Sample St B W Sample St 13 F/%v Midwest Sales S Services N N ly C C R—Bend v Google Notre DameQ IW;eSxcia y Twbomachinery- Map data 02018 Google 200 ft, r Franklin St & W Sample St South Bend,IN 46601 AWL�A 01 --- httDs://www.gooizle.com/mans/place/Franklin+St+%26+W+Sample+St.+South+Bend.+IN... 4/12/2018 Filed in Clerk's Office MEMORANDUM OF AGREEMENT MAY 08 2013 KAREEMAH FOWLER CITY CLERK.SOUTH REND,IN This Memorandum of Agreement (Agreement) dated as of the Thursday, Apr 126 , 2018, serves as confirmation of a commitment by Franklin Street Technology Park,LLC(the"Applicant"), pending an May 14`h,2018,public hearing,to comply with the project description,job creation and retention (and associated wage rates and salaries) figures contained in its petition, Statement of Benefits, and attachments and this Agreement(Commitments). 1. Commitments of City and Applicant. Subject to the adoption of a Declaratory Resolution and a Confirmatory Resolution by the South Bend Common Council (the "SBCC"), the City of South Bend, Indiana (the "City") commits to provide a (8) eight-year real property tax abatement for the Applicant, based on the Applicant's commitment set forth in its Application. The Applicant commits to a capital expenditure of$3,000,000 associated with the construction of three buildings located at the intersection of Sample Street and Franklin Street, South Bend, IN 46601 (Key Numbers 018-8002-0061, 018-8002- 0070, 018-8002-0071, 018-8002-0073, 018-8002-0074, 018-8002-0075, 018-8002-0076, 018- 8002-0077, 018-8002-0078, 018-8002-0079, 018-8002-0094, 018-8002-0096, 018-8002-0097, 018-8002-0098, 018-8002-0099, 018-8002-0100, 018-8002-0101, 018-8002-0102, and 018- 8002-0104). This real property project will create at least sixty(60) indirect jobs within five years. 2. Potential Impact of State of Indiana Circuit Breaker Law: The parties note that the calculations regarding the effect of the tax abatement in question are based on the State of Indiana's tax rates currently in effect at the time of entering into this Memorandum of Agreement. The complete impact of the State of Indiana's Circuit Breaker law on the City's property tax revenues is unknown at this time. To assure that the City receives the projected amount of property tax revenues, which amount was calculated at the time of granting the tax abatement for the Applicant, the parties to this Memorandum of Agreement agree to adjust the length of the abatement and/or the percentage of deduction if the tax revenues due under the Circuit Breaker Law are less than what was initially projected and represented to the Common Council,as evidenced by the supporting documentation submitted to the Council with the Applicant's tax abatement petition. However, in no case will the adjustments cause the property taxes to be paid to exceed the tax payments as initially projected and represented to the Common Council by the aforementioned supporting documentation. 3. Applicant's Compliance with City and State Laws.During the term of the abatement,the Applicant shall comply with Chapter 2, Article 6 of the South Bend Municipal Code entitled "Tax Abatement Procedures"and all governing provisions of the Indiana Code. During the term of this abatement,the City may annually request information from the Applicant concerning the nature of the Project, the approved capital expenditure of the Project,the number of full-time permanent positions newly created by the Project, and the average wage rates and salaries(excluding benefits&overtime)associated with the positions,and the Applicant shall provide the City with adequate written evidence thereof within 15 days of such request (the"Annual Survey"). The City shall utilize this information and the information required to be filed by the Applicant in the CF-1 Compliance with the Statement of Benefits form to verify that the Applicant has complied with the commitments contained in the Commitments at all times after the Commitment Date and during the duration of the abatement. The Applicant further agrees to provide the City with such additional information requested by the City related to the information provided in the Annual Survey and the CF-1 form within a reasonable time following any such additional request. 4. Substantial Compliance and Rights of Termination. The City,by and through the SBCC,reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it determines that the Applicant has not made reasonable efforts to substantially comply with all the Commitments, and the Applicant's failure to substantially comply with the Commitments was not due to factors beyond its reasonable control. As used in this Agreement, "substantial compliance" shall mean the Applicant's compliance with the following: (a)expenditures of no less than Three Million dollars ($3,000,000) of capital investment towards the construction of three buildings located at intersection of Sample Street and Franklin Street, South Bend,IN 46601; (b)this real property project will create at least sixty(60)indirect jobs within five years. 5. Factors Beyond Control. As used in this Agreement, factors beyond the control of the Applicant shall only include factors not reasonably foreseeable at the time of designation application and submission of Statement of Benefits which are not caused by any act or omission of the Applicant and which materially and adversely affect the ability of the Applicant to substantially comply with this Agreement. 6. Repayment of Tax Abatement Savings. If at any time during the term of this Agreement the Applicant shall:(i)be delinquent or in default with respect to any tax payment in St.Joseph County,Indiana; or (ii) cease operations at the facility for which the tax abatement was granted; or (iii) announce the cessation of operations at such facility, then the City may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require Applicant to repay all of the tax abatement savings received through the date of such termination. 7. Notice/Hearing of Termination. In the event that the City determines that the Economic Revitalization Area designation and associated tax abatement deductions should be terminated or that all or a portion of the tax abatement savings should be repaid, it will give the Applicant notice of such determination, including a written statement calculating the amount due from the Applicant, and will provide the Applicant with an opportunity to meet with the City's designated representatives to show cause why the abatement should not be terminated and/or the tax savings repaid. Such notice shall state the names of the person with whom the Applicant may meet and will provide that the Applicant shall have thirty days from the date of such notice to arrange such meeting and to provide its evidence concerning why the abatement termination and/or tax savings repayment should not occur. If, after giving such notice and receiving such evidence,if any,the City determines that the abatement termination and/or the tax repayment action is proper,the Applicant shall be provided with written notice and a hearing before the SBCC before any final action shall be taken terminating the abatement and/or requiring repayment of tax benefits. The Applicant shall be entitled to appeal that determination to a St.Joseph County Superior or Circuit Court. 8. Repayment. In the event the City requires repayment of the tax abatement savings as provided hereunder, it shall provide Applicant with a written statement calculating the amount due(Statement), and Applicant shall make such repayment to the City within 30 days of the date of the Statement. If the Applicant does not make timely repayment,the City shall be entitled to all reasonable costs and attorneys' fees incurred in the enforcement and collection of the tax abatement savings required to be repaid hereunder. 9. Modification/Entire Aweement. This Agreement and the schedules attached here to contain the entire understanding between the City and the Applicant with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings, inducements, and conditions, expressed or implied,oral or written,except as herein contained. This Agreement may not be modified or amended other than by an agreement in writing signed by the City and the Applicant. The Applicant understands that any and all filings required to be made or actions required to be taken to initiate or maintain the abatement are solely the responsibility of the Applicant. 10. Waivers. Neither the failure nor any delay on the part of the City to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right,remedy, power or privilege with respect to any occurrence or be construed as a waiver of such right, remedy,power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 11. Governing Laws of Indiana. This Agreement and all questions relating to its validity, interpretation,performance, and enforcement shall be governed by the laws and decisions of the courts of the State of Indiana. 12. Applicant's Consent to Jurisdiction. The Applicant hereby irrevocably consents to the jurisdiction of the Courts of the State of Indiana and of the St. Joseph County Circuit or Superior Court in connection with any action or proceeding arising out of or relating to this Agreement or any documents or instrument delivered with respect to any of the obligations hereunder, and any action related to this Agreement shall be brought in such County and in such Court. 13. Notices. All notices, requests, demands, and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been received when delivered by hand or by facsimile (with confirmation by registered or certified mail) or on the third business day following the mailing,by registered or certified mail,postage prepaid, return receipt requested,thereof, addressed as set forth below: If to Applicant: Franklin Street Technology Park,LLC 814 Marietta Street South Bend,IN 46601 Attn: Charles Hayes If to the City: City of South Bend,Indiana 27 West Jefferson Blvd. Suite 1400S South Bend,Indiana 46601 Attn: Daniel Buckenmeyer,Department of lCommunity Investment 14. Assignment and Transfer Prohibited. This Agreement shall be binding upon and inure to the benefit of the City and the Applicant and their successors and assigns, except that no party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party hereto, in which consent shall not be unreasonably withheld. 15. Valid and Binding Agreement. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. By executing this Agreement, each person so executing affirms that he has been duly authorized to execute this Agreement on behalf of such party and that this Agreement constitutes a valid and binding obligation of the party. 16. Severability. The provisions of this Agreement and of each section or other subdivision herein are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part unless this Agreement is rendered totally unenforceable thereby. 17. No Personal Liability. No official,director,officer,employee or agent of the City shall be charged personally by the Applicant, its employees or agents with any liabilities or expenses of defense or be held personally liable to the Applicant under any term or provision of this Agreement or because of the execution by such party of this Agreement or because of any default by such party hereunder. [Remainder of page intentionally blank.] IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. "Applicant" `City" Franklin Street Technology Park, LLC City of South Bend, Indiana Y: By: G Y1 rip— T-) 00 Tim Scott [insert contact name] President, South Bend Common Council Y: Approved as to Le al Adequacy and Form this day of ��1 ,2018. Gavin Ferlic — Chairperson,Community Investment Committee Counsel, South Bend Common Council Y� Dan Buckenmeyer Department of Community Investment Counsel for Applicant lv A By: Pete Buttigieg Mayor Filed in Clerk's office MAY 08 2018 KAREEMAH FOWLER CRTY C'_ERK,SOUTH BEND,IN