Loading...
HomeMy WebLinkAbout5A1A C�) Community & Economic Development O'N 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 5741235 -9371 Fax 574/235 -9021 To: South Bend Redevelopment Commission From: Don Inks Subject: Certified Tech Park Funds - Memorandum of Understanding with University of Notre Dame Date: October 19, 2012 Near the end of March of this year, the attached staff report was made concerning the proposed use of the Certified Tech Park funds ($812, 791). Also attached is the Memorandum of Understanding with the University of Notre Dame which is consistent with the previously presented proposed use. Proposed Uses of CTP Funds 3.26.12.doc WMt Wo Do iodayMakmA DI !Reset • 1A M ti Community 8 Economic Development 1200 County -City Building, 227 West Jefferson, South Bend, Indiono 46601 -1830 Phone 5741235 -9371 Fox 574/235 -9021 To: South Bend Redevelopment Commission From: Don Inks Subject: Proposed Use of Certified Tech Park Funds Date: March 27. 2012 Background • The Certified Technology Park ( "CTP ") is established in December 2008 through an Agreement between the Indiana Economic Development Commission ( "IEDC ") and the City of South Bend Redevelopment Commission ( "RDC "). a The area of the CTP is defined to include both Innovation Park at Notre Dame ( "IPND ") and Ignition Park ( "IP "). • IPND boundaries include the site of the current and future IPND park buildings, as well as the retail /office building on the southwest corner of Angela and Eddy Streets ( "Office Building") and Raclin- Carmichael and Harper Halls ( "ND /IU Medical Campus "). a Section 7 of the CTP Agreement defines the CTP Incremental Tax Financing Fund ( "State CTP Funds "), which can be funded with the incremental personal income and sales taxes generated by employment and sales within the CTP. • The base fiscal year used in order to calculate the increment is June 30, 2008. • The first fiscal year for the increment calculation was June 30, 2011 • The maximum aggregate amount of State CTP Funds that can be recaptured is limited to $5 million. Proposed Uses of CTP Funds 3.26.12.doc What We Do Today Makaa A Difference i Current Status The first Certified Tech Park Funds were received from the State on 12/20/11 in the amount of $812,791. This amount represents income taxes withheld from wages paid to employees located at the "Office Building'.1PND and the ND /lU Medical Campus. Use of Funds • State CTP Funds can be used for a limited number of purposes, all of which must be activities within the CTP boundaries. The list of permitted uses includes: • Acquisition, construction, improvement, planning or equipping of facilities • Repayment of debt incurred for financing associated with the above • Establishment or augmenting a debt service reserve associated with debt • Operation of facilities • Notre Dame has immediate uses for the State CTP Funds, including: • Payment of the operating expenses of the IPND facility • Equipping the IPND facility • Planning. /engineering costs of Phase II of IPND Proposal The City and ND should share equally in the aggregate $5 million amount of State CTP Funds o On an annual basis, if either party does not have needs to consume 50% of the State CTP Funds received that year, the other party may draw unused funds to the extent they can be spent on permitted uses. o Once either party has drawn an aggregate $2.5 million in State CTP Funds, no additional funds may be drawn by that party without approval of the other party Proposed Uses of CTP Funds 3.26.12.doc What We Do Today Makes A Difference! 8WISTt7:`► Z ►il�[T�i ►f : `11 �1-91Wel AMONG THE CITY OF SOUTH BEND, INDIANA, THE SOUTH BEND REDEVELOPMENT COMMISSION, AND THE UNIVERSITY OF NOTRE DAME DU LAC MEMORANDUM OF UNDERSTANDING This MEMORANDUM OF UNDERSTANDING (this "Agreement ") is made as of the day of 2012 by and among the CITY OF SOUTH BEND, INDIANA (the "Governmental Unit'), the SOUTH BEND REDEVELOPMENT COMMISSION (the "Redevelopment Commission," and together with the Governmental Unit, the "City "), and THE UNIVERSITY OF NOTRE DAME DU LAC (the "University "). RECITALS WHEREAS, the City and the Indiana Economic Development Corporation (the "IEDC °) entered into that certain Certified Technology Park Agreement in December 2008 (the "CTP Agreement') in connection with the designation by the 1EDC of the City of South Bend. Indiana Certified Technology Park (the "Park ") pursuant to Indiana Code 36 -7 -32 (the "Act'); and WHEREAS, the Park is divided into two locations, one commonly known as the "Campus Site (a/k /a "Innovation Park at Notre Dame")" ("Innovation Park ") and the other commonly known as the "Sample Street Site (a/k/a "Ignition Park")" ( "Ignition Park") each of which is more particularly described in the CTP Agreement; and WHEREAS, the CTP Agreement identifies the University as a sponsor of the Park and acknowledges that the IEDC has relied upon the financial and performance commitments provided by the University and the City in designating the Park as a certified technology park under the Act; and WHEREAS, pursuant to the Act and Section 7 of the CTP Agreement, an incremental tax financing fund (the "State CTP Fund ") was established to receive certain State of Indiana (the "State") gross retail and use taxes and income tax incremental amounts generated by businesses and employees located within the Park up to an aggregate amount of Five Million Dollars ($5,000,000) (the "CTP Revenues "); and WHEREAS, pursuant to the Act, the State has calculated the amount of CTP Revenues as of June 30, 2011 to be $812,791 and the State distributed such CTP Revenues to the Redevelopment Commission in December 2011 to be deposited into a certified technology park fund established by the Redevelopment Commission under Section 23 of the Act to be used by the Redevelopment Commission for the permitted purposes set forth in the Act and in the CTP Agreement; and WHEREAS, the University has expended its own funds in the construction, operation and maintenance of facilities at Innovation Park which qualify as "public facilities" under the Act and as set forth in the CTP Agreement and it is anticipated that the University will expend additional funds in the future for the construction, operation and /or maintenance of such public facilities and additional public facilities at Innovation Park; and WHEREAS, it is anticipated that the City will expend funds for the construction, operation and maintenance of public facilities at Ignition Park; and WHEREAS, the University and the City desire to memorialize the agreement among the parties hereto regarding the allocation of the CTP Revenues to be used to (i) reimburse the City for expenditures by the City or pay expenditures designated by the City for permitted purposes under the Act at Ignition Park, and (ii) reimburse the University for expenditures by the University or pay expenditures designated by the University for permitted purposes under the Act at Innovation Park. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: SECTION 1: Recitals. The representations, covenants and recitations set forth in the foregoing recitals are material to this Agreement and are hereby incorporated into and made a part of this Agreement by this reference. SECTION 2: Agreement on Use of CTP Revenues. The City and the University agree that the aggregate of all CTP Revenues collected by the State and remitted to the Redevelopment Commission as provided by the Act and the CTP Agreement shall be divided equally between Innovation Park and Ignition Park and used for permitted purposes under the Act and the CTP Agreement, such that one -half of all such CTP Revenues will be expended at Innovation Park and one -half of all such CTP Revenues will be expended at Ignition Park. The City and the University further agree that on an annual basis during the term of this Agreement they shall provide one another with a list of the permitted purpose expenditure items for Innovation Park and Ignition Park and that the Redevelopment Commission shall approve, subject to further proceedings required by law, the expenditure of one -half of the CTP Revenues for that year for such expenses at Innovation Park and one -half of the CTP Revenues for that year for such expenses at Ignition Park. In the event that expenditures for permitted purposes under the Act at either Innovation Park or Ignition Park do not constitute fifty percent (50 %) of the CTP Revenues available in any given year, the unused CTP Revenues for such year may be used for permitted purpose expenditure items in the other location within the Park, to the extent that such other location has additional expenditures for permitted purposes under the Act for that year. Nonetheless, (i) the aggregate CTP Revenues expended for permitted purposes under the Act within Innovation Park may not exceed Two Million Five Hundred Thousand Dollars ($2,500,000) without the approval of all of the parties to this Agreement, and (ii) the aggregate CTP Revenues expended for permitted purposes under the Act within Ignition Park may not exceed Two Million Five Hundred Thousand Dollars ($2,500,000) without the approval of all of the parties to this Agreement. SECTION 3: Mutual Assistance. The Parties agree, subject to further proceedings required by law, to take such actions, including the execution and delivery of such agreements, certifications, documents, instruments and petitions (and, in the case of the City, the adoption of such ordinances and resolutions), as may be necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and assist each other in carrying out the terms, provisions and intent of this Agreement. SECTION 4: Future Actions and Good Faith. The parties acknowledge and understand that the City and the University may be required by applicable law to take certain 4 actions to implement and maintain this Agreement: that the City's representations, covenants and agreements are subject to and contingent upon the compliance with and completion of applicable statutory and administrative procedures, including, without limitation, any applicable public notice and public bearing requirements and any appeal rights, and that the University's representations, covenants and agreements are subject to and contingent upon obtaining all necessary approvals and consents. SECTION 5: General Provisions. a. Time of Essence. Time is of the essence of this Agreement. The parties will make every reasonable effort to expedite the subject matter hereof. b. Amendment. This Agreement may be amended only by the consent of all of the parties to this Agreement, and by the adoption of an ordinance and/or resolution of the City, if required by law, and by the execution of such amendment by the parties to this Agreement or their successors in interest. C. No Other Agreement. Except as otherwise expressly provided herein, this Agreement supersedes all prior agreements, negotiations and discussions relative to the subject matter hereof, all of which shall be without further force or effect. d. Successors and Assigns. The University shall have the right to assign its interest under this Agreement with the consent of the City, which consent shall not be unreasonably withheld. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the University and the City and any successors and permitted assigns. e. Severability. If any one or more of the covenants or agreements provided in this Agreement on the part of any party should be determined by a court of competent jurisdiction to be contrary to law, such covenants and agreements shall be null and void and shall be deemed separate from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. f. Costs and expenses. The parties shall each bear their own costs and expenses with respect to this Agreement, including, without limitation, the fees and expenses of their respective legal counsel and financial advisors. g. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Indiana. h. Notice. All notices and requests required pursuant to this Agreement shall be sent as follows: 3 To the University: University of Notre Dame du Lac 203 Main Building Notre Dame, Indiana 46556 ATTN: Marianne Corr, Esq., Vice President & General Counsel To the City: City of South Bend, Indiana 227 West Jefferson Boulevard Suite 140ON South Bend, Indiana 46601 ATTN: Mayor Pete Buttigieg To the Redevelopment Commission: South Bend Redevelopment Commission c/o Scott Ford, Director of Economic Development 227 West Jefferson Boulevard, Suite 1200S South Bend, IN 46601 SECTION 6: Counterparts. This Agreement may be executed in more than one counterpart which, when executed, shall together constitute one agreement. IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above. CITY OF SOUTH BEND, INDIANA 0 Pete Buttigieg, Mayor SOUTH BEND REDEVELOPMENT COMMISSION UNIVERSITY OF NOTRE DAME DU LAC m Its: SOD502 PFACCENDA 4337340