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Bill No. 23-17 Confirming a Declaratory Resolution for Property at 213 West Washington St. SB, IN
CITY OF SOUTH BEND ' - COMMUNITY INVESTMENT Filed in Clerk's Office April 5, 2023 Council Member Rachel Tomas Morgan APR 0 5 2023 Chairperson, Community Investment Committee South Bend Common Council DAWN M.JONES 4th Floor, County City Building CITY CLERK,SOUTH BEND,IN South Bend, Indiana 46601 RE: Confirming Resolution: Mixed-Use Development Real Property Tax Abatement Petition for the Tower at Washington Square LLC (Liberty Tower) Dear Council Member Tomas Morgan: Please find the enclosed information pertaining to a mixed-use development real property tax abatement petition submitted by the Tower at Washington Square LLC, an Indiana Limited Liability Company. The petitioner plans to complete the renovation of the Liberty Tower building at 213 West Washington Street in downtown South Bend. This petition package includes: • Department of Community Investment's summary report • Petition for abatement • Statement of Benefits form (SB-1 / Real Property) • Supporting information The report contains the Department's findings relative to the above-mentioned petition. The petitioner will complete the remodel of roughly 90 apartment units, restore and create new meeting and event spaces, and create a bar/lounge and event space with rooftop access on the seventh floor. Previous phases of a complete rehabilitation of the building, including the opening of the Aloft hotel and new commercial spaces, were completed in 2017. The total private investment for this latest phase of the rehabilitation project is $14.7 million. The project meets the requirements established by Sections 2-80, et seq. and would qualify for an eight-year(8) mixed-used development real property tax abatement. Representatives from the Tower at Washington Square LLC will be available to meet with the Committee on Monday, April 10, 2023. If you or any of the other Council members have any questions concerning the report or need additional information, please feel call me at(574) 235-5838. Sincerely, Erik Glavich Director, Growth and Opportunity EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 14005 County-City Building 227W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov Filed in Clerk's Office APR 0 5 2023 BILL NO. 23-17 RESOLUTION NO. DAWN M.JONES CITY CLERK,SOUTH BEND,IN A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 213 West Washington Street, South Bend, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT- YEAR (8) REAL PROPERTY TAX ABATEMENT FOR Apartments and Commercial Space at Tower at Washington Square 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 described as: Key Number: 71-08-12-110-024.000-026 Commonly Known As: 213 West Washington Street, South Bend, IN 46601 Legal Description: R-1 Apartments Lots 239 & 240 & Vac Alley W& Adj OP w 32.3% int in common areas 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, 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 mixed-use development real property tax abatement only and is limited to three (3) 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 up to a period of eight (8) years as shown by the schedule outlined below 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 - 95% Year 3 - 90% Year 4 - 85% Year 5 - 80% Year 6 - 75% Year? - 70% Year 8 - 65% 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. Sharon McBride, Council President South Bend Common Council Attest: Dawn M. Jones, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana, on the day of , 2023, at o'clock .m. Dawn M. Jones, City Clerk Office of the City Clerk Approved and signed by me on the day of ,2023, at o'clock .m. James Mueller, Mayor City of South Bend Filed in Clerk's Office APR 0 5 2023 1 DAWN M.JONES CITY CLERK,SOUTH BEND,IN TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Mixed-Use Development Real Property Tax Abatement Petition for the Tower at Washington Square LLC (Liberty Tower) DATE: March 22, 2023 On March 21, 2023, a petition for tax abatement from for the Tower at Washington Square LLC was filed with the Office of the City Clerk. The petition seeks consideration for a mixed-use development real property tax abatement for the completion of the rehabilitation of the building known as Liberty Tower at 213 West Washington Street in downtown South Bend. Pursuant to Chapter 2, Article 6, Section 2 84.9 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 Indiana Code § 6 1.1-12.1 and all zoning requirements have been met. The Department of Community Investment has reviewed the petitions (a copy of which each is attached), investigated the area, and makes the following report. Project Summary • The petitioner, the Tower at Washington Square LLC, plans to complete the rehabilitation of Liberty Tower. Previous phases of the remodel included the opening of the Aloft hotel and commercial space in 2017. However, for a variety of reasons including increased construction costs and COVID, the final phase of the project has been delayed. • The petitioner will complete the remodel of roughly 90 apartment units, restore and create new meeting and event spaces, and create a bar/lounge and event space with rooftop access on the seventh floor. • The petitioner is investing a total of$14.7 million into this lates phase of the project. The previous phases of the remodel had costs in excess of$40 million. Tax Estimates The petitioner qualifies for an eight-year(8) mixed-use development real property tax abatement. • Current taxes for 2022: $41,900 • Total estimated taxes during the eight-year(8) abatement period: $2,631,150 • Estimated taxes being abated during the abatement period: $1,287,128 • Estimated total taxes to be paid during the abatement period: $1,344,022 o Estimated taxes paid after fifteen (15) years: $3,646,278 o Estimated taxes paid after twenty(20) years: $5,290,746 Employment Impact The parcel and areas of Liberty Tower for which this abatement petition applies currently do not have employees. • Upon completion of the project, the petitioner expects to create at least nine (9) new full- time jobs with an estimated total annual payroll of$306,000. Four(4) employees will be dedicated to the apartments while five (5) employees will work for the 7th floor bar, lounge, and event space. • The petitioner will work closely with hotel management and a third-party property manager to meet additional employment needs. The hotel currently employs approximately 70 individuals. Abatement Qualification 1. A review of the tax abatements previously granted finds that the petitioner has been granted or is associated with the following previous abatements: Abatement T e Years Confirming Date Note yp Granted Resolution Passed Reconfirmed Resolution No. Real Property 10 4742 18 9/10/18 4536-16 (passed on (Hotel) 3/14/16) and extended designation period Reconfirmed Resolution No. Real Property 10 4743 18 9/10/18 4538-16 (passed on (Parking Garage) 3/14/16) and extended designation period Reconfirmed Resolution No. Real Property (Apartments & 10 4745-18 9/10/18 4539-16 (passed on Event Spaces) 3/14/16) and extended designation period Reconfirmed Resolution No. Real Property 10 4744-18 9/10/18 4552-16 (passed on (Retail) 3/29/16) and extended designation period Note also that the petitioner previously received a four-year(4) real property tax abatement(Resolution No. 4361-14) on May 12, 2014. However, this abatement was rescinded in 2015 (Resolution No. 4500-15) because the scope of the rehabilitation of the building significantly expanded and the Common Council approved new abatements in 2016. 2. The property is properly zoned for the proposed project. 2 3. Taxes on the property have been paid in full. 4. A review of the South Bend Redevelopment designation areas finds that the property is located in the River West Tax Incremental Financing (TIF) area. 5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications for an eight-year(8) mixed-use development real property tax abatement under Division 5 (Mixed Use Development Real Property Tax Abatement), Section 2-80 (Mixed Use Developments in Central Business District). 3 8-Year Abatement March 21,2023 Tower at Washington Square LLC South Bend Portage Township Commerical Development Real Property Tax Abatement Schedule* Type of Property: Mixed Use Estimated Project Cost: $11,900,000 Rehabilitation Property Address: 213 W Washington Street-Residential Portion Tax Key Number: 71-08-12-110-024,000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Assessed Value(AV) Land $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 Structure(Current AV+80%Project Cost) 735,800 10,255,800 10,255,800 10,255,800 10,255,800 10,255,800 10,255,800 10,255,800 10,255,800 10,255,800 Gross Assessed Value 747,100 10,267,100 10,267,100 10,267,100 10,267,100 10,267,100 10,267,100 10,267,100 10,267,100 10,267,100 Abatement 100% 95% 90% 85% 80% 75% 70% 65% Abatement Deduction - (9,520,000) (9,044,000) (8,568,000) (8,092,000) (7,616,000) (7,140,000) (6,664,000) (6,188,000) Net Assessed Value 747,100 10,267,100 747,100 1,223,100 1,699,100 2,175,100 2,651,100 3,127,100 3,603,100 4,079,100 Property Taxes Assume constant tax rate of 5.2897% Gross Tax(Tax Rate x Net AV) 39,519 543,099 39,519 64,698 89,877 115,056 140,235 165,414 190,593 215,772 Local Tax Credit(8.7112%of GT-DS) (3,182) (43,736) (3,182) (5,210) (7,238) (9,265) (11,293) (13,321) (15,348) (17,376) Circuit Breaker Credit (18,409) (252,984) - - - - - - - - Taxes Due $ 17,928 $ 246,380 $ 36,337 $ 59,488 $ 82,640 $ 105,791 $ 128,942 $ 152,093 $ 175,245 $ 198,396 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Circuit Breaker Cap 14,942 205,342 205,342 205,342 205,342 205,342 205,342 205,342 205,342 205,342 Debt Service(0.3997%of Net AV) 2,986 41,038 2,986 4,889 6,791 8,694 10,596 12,499 14,402 16,304 Max Tax Under the Cap 17,928 246,380 208,328 210,231 212,133 214,036 215,938 217,841 219,744 221,646 Combined Year Abatement Current Taxes New Net Taxes Current& Taxes Abated Due Projected Tax Paid New Taxes 1 100% $ 17,928 $ 228,451 $ 246,380 $ (210,043) $ 36,337 2 95% 17,928 228,451 246,380 (186,891) 59,488 3 90% 17,928 228,451 246,380 (163,740) 82,640_ 4 85% 17,928 228,451 246,380 (140,589) 105,791 5 80% 17,928 228,451 246,380 (117,437) 128,942 6 75% 17,928 _ 228,451 246,380 (94,286) 152,093 7 70% 17,928 228,451 246,380 (71,135) 175,245 8 65% 17,928 228,451 246,380 (47,984) 198,396 Total: 143,425 1,827,612 1,971,037 (1,032,105) 938,932 *This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. ,- mq _; Department of Community Investment The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. City of South Bend 8-Year Abatement March 21,2023 Tower at Washington Square LLC South Bend Portage Township Commerical Development Real Property Tax Abatement Schedule* Type of Property: Mixed Use Estimated Project Cost: $ 2,100,000 Rehabilitation Property Address: 213 W Washington Street-Non-Residential Portion Tax Key Number: 71-08-12-110-024,000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Assessed Value(AV) Land $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 $ 11,300 Structure(Current AV+80%Project Cost) 735,800 2,415,800 2,415,800 2,415,800 2,415,800 2,415,800 2,415,800 2,415,800 2,415,800 2,415,800 Gross Assessed Value 747,100 2,427,100 2,427,100 2,427,100 2,427,100 2,427,100 2,427,100 2,427,100 2,427,100 2,427,100 Abatement 100% 95% 90% 85% 80% 75% 70% 65% Abatement Deduction - (1,680,000) (1,596,000) (1,512,000) (1,428,000) (1,344,000) (1,260,000) (1,176,000) (1,092,000) Net Assessed Value 747,100 2,427,100 747,100 831,100 915,100 999,100 1,083,100 1,167,100 1,251,100 1,335,100 Property Taxes Assume constant tax rate of 5.2897% Gross Tax(Tax Rate xNet AV) 39,519 128,386 39,519 43,963 48,406 52,849 57,293 61,736 66,179 70,623 Local Tax Credit(8.7112%of GT-DS) (3,182) (10,339) (3,182) (3,540) (3,898) (4,256) (4,614) (4.972) (5,329) (5,687) Circuit Breaker Credit (10,938) (35,533) - - - - - - - - Taxes Due $ 25,399 $ 82,514 $ 36,337 $ 40,422 $ 44,508 $ 48,593 $ 52,679 $ 56,765 $ 60,850 $ 64,936 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Circuit Breaker Cap 22,413 72,813 72,813 72,813 72,813 72,813 72,813 72,813 72,813 72,813 Debt Service(0.3997%of Net AV) 2,986 9,701 2,986 3,322 3,658 3,993 4,329 4,665 5,001 5,336 Max Tax Under the Cap 25,399 82,514 75,799 76,135 76,471 76,806 77,142 77,478 77,814 78,149 Combined Year Abatement Current Taxes New Net Taxes Current& Taxes Abated Due Projected Tax Paid New Taxes 1 100% $ 25,399 $ 57,115 $ 82,514 $ (46,177) $ 36,337 2 95% 25,399 57,115 82,514 (42,092) 40,422 3 90% 25,399 57,115 82,514 (38,006) 44,508 4 85% 25,399 57,115 82,514 (33,921) 48,593 5 80% 25,399 57,115 82,514 (29,835) 52,679 6 75% 25,399 57,115 82,514 (25,750) 56,765 7 70% 25,399 57,115 82.514 (21,664) 60,850 8 65% 25,399 57,115 82,514 (17,579) 64,936 Total: 203,193 456,920 660.113 (255,023) 405,090 *This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. EMak f, Department of Community Investment The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. ., .'' City of South Bend City of South Bend ,a,tn., t Petition for Incentives1. Petition must include a$250 filing fee payable to the City Clerk's Office Y •t # ' before processing can be complete ff In filo L' ... ce General Information Project Name I F Project Nu Per _____ —Jl .apal name as registered with Secretary of State The Tower at Washington Square LLC I j Business structure LLC , - I Company website 1 n/a 1 AWN M.. "(v,:: I Proposed Project Information i efl`T'(;[ — 4_ iN r Proposed project address 213 West Washington Street Parent company name n/a City,State,Zip South Bend, IN 46601 legal owner the Tower at tarashinglon Square LLC Site acreage or acreage required 0.36 Is the reel estate owned or Teased? owned Square feet of tinnily —118,700(floor 7 and floors 17-26) If leased,by whom? n/a Prima ry Contact Information Primary company confect name Emmanuel Kazanas Title Partner Address ofcompany contact 5-44 47th Avenue, 4th Floor PhOne 718-786-5555 sty,stale,zip Long Island City, NY 11101 Email mkazanas1969@gmail.com Senior Official information Compa,ry senior aflldel name Liberty Angeliades T1tle Manager Address of company contact Phone g (If different from above) same as above City,Stahl,Zip Emelt Consultant information/Agent Hired business consultant/agent name Mark Neal Consultant release?IV/h) I Y Address 112 W. Jefferson Blvd, Suite 300 Local economic development partners uproval? Y Njn/a City,State,Zip South Bend, IN 46601 Email mneal@bradleyco.com Project Overview Brief description of your Private developer purchased the building for purpose of re-development in 2014. The company,project,and why the property Is necessary for building's age and significant deferred maintenance made the building obsolete economk growth without a complete demolition of all interiors and building systems, including mechanicals, HVAC, windows, interior apartment and commercial buildout, parking garage, 7th floor rooftop and exterior facade. Property rebranded as Liberty Tower Developer completed the entire building shell, Aloft hotel space, ground floor retail and parking garage at a cost in excess of$40.0 million in 2017. Due to initial construction costs, DTSB market conditions and COVID impact, there has been a multi-year delay to complete—90 apartment units, additional meeting/event spaces and 7th floor bar/lounge/event venue with 7th floor rooftop. Certified Technology Park appropriate No Is the project in a Tan incremental Financing (TiF)area?If so,which? Yes, River West ..Building Permits been issued}(Y/N) number of residential units created by (Note-Not eligible for abatement If Yes] No prelim —90 It this Ise petttlon for personal property tee abatement,has the equipment beers Installed? n/a Investment Details Public Infrastructure needs Has any 504 funding been Whet Is the value of any equipment hosing purchased In Whet Is the value of any equipment being (Off-dlte of project In dollars) received? Indiana for the project? purchased from out of state for the project? n/a No not yet dermined not yet determined New Project Investments Calendar Year 2022 2023 2024 2025 2026 2027 2028 Z029 Land Acquisition - Building Lease Payments Budding Purchase Costs New Building Construction Existing Building Improvements $.i OB1.11rl'Xi S 8,000 000 OC New Machinery&Equipment Speanl Tooting/Retooling New Furniture/Fixtures $450.000 IX' New Computer/IT Hardware $250,00000 , New Software On-site Rail Infrastructure On site Fiber Infrastructure TOTAL $0.00 ".AO°DPS8.701000.00 $0.00 $o.00 .$0.00 $a.ob• o.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year lobs retained Hourly Cumulative II of ret NEW full timeHourly average wage,w/o Total training Total P to be avenrge permanent jobs created at project benefits or bonuses,of expenditure- trained-not wage,w7o benefits or cumulative net new Jobs not cumulative bonuses cumulative 2023 n/a 2024 9-4(apts);5(bar/lounge) $17 21325 2026 2021 2028 2029 2030 2031 1 2032 2033 2034 Provide hourly wage Information for new employees in the following positions. Full time Part time Laborers 4 Technical 3 Managerial 2 Administrative Who will be the Individual responsible for coordinating with WorkOne on recruiting? n/a Does your company have an EEO hiring policy? Yes Are you an EEO employer? Yes Please Ilst the number of full time and part time minority and/or female Please describe your commitment to employees for the following years: diversity and Inclusion by detailing your Year outreach and recruitment efforts for the last 2023 2022 2019 three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black Developer will utilize hotel Hispanic mgmt and 3rd party Asian property manager with experience in SB Market to Indian recruit a diverse, inclusive Female team in management and Other hourly Staff 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. Please complete the table below with the appropriate Information. If Qualify Earned points Available Fotn you qualify for the points,please enter the full amount of available lyes or No) points. 1 Construction RelatedLContractnr5 A. Employ Local Companies(75%) Y 20 20 B. Purchase Materials from Local Companies(75%) Y 20 20 C. Require Employees vs.Independent Contractors Y 19 19 D. Require Prevailing Wage(Davis Bacon) N 22 E. Require Health Benefits Y 22 22 F. Require Retirement Benefits Y 18 18 G. Maintain Affirmative Action Plan Y 20 20 1Sub-total Construction Related; 119 141 2 Wage&Benefit Related[owner); A. Pay Target Wage Levels y 33 33 B. Provide Health Benefits Y 34 34 C. Provide Retirement Benefits Y 29 29 D. Provide Training Y 28 28 E. Provide Child Care N / 15 F. ,Provide Transportation Assistance N / 14 G. Provide Employer Assisted Housing program N 9 Sub-total Wage&Benefit Related: 124 162 3 Workforce Related: A. Create New lobs Y 42 42 B. Retain Existing lobs n/a .` 41 C. Maintain Affirmative Action Plan NY 35 35 N D. Provide Targeted Hiring Preference 34 Sub-total Workforce Related: 77 152 4 S_Plort a Municl aFacility. A Support a SB Municipal Facility(donations to the \7 84 zoo,conservatory,museum,etc.) 1 84 Name of Facility 1Sub-total Municipal Facility: 84 84 Sub-total from Above: i 404 539 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 sea.,for this petition state the above. L_- Submitted By I,74,,,,,--7,,,,„ , /��, /f,,e,ry --), !Date: 03/20/2023 _ For Staff Use Only Below This Line What Is the current assessed value? Real Property: / // .2.oQ Personal Property: __ Whet Is the projected assessedvelue? Real Property: n. r! Z.6Personal Property: �_ What is the tax key number for this project? 7/—a p -/- � _/`G - QZi/•�O w 026 What Is the six digit NAICS code? it)/it)//9O� Please attach a Google map end street view of the location. Please list the amount of reel end personal property taxes Reel Property Texas: Personal Property Taxes: paid for the last five years when applicable. Year One 2...4:)2...2_ 47.2. 3/8 . 5if Year Two 2Z)2a (r .Z IX//` •OL Year Three Z 02...z:, i tr Lc 77 . $U Year lour 20 1 i1 3 y 5/6, . 2.0 Year Five ZO j L Z/ V(y,/ ' 6 n Please fill out the following Public Benefit Summary Information and add to total from above. IY or N1 ?DIV.! Points Public Benefit Item: ProfeciRe aped: 5 A. Redevelop a Site that has Special Needs 1 I 49 B. Develop Based on Local University Research j 1 35 C. Achieve a Physical Element of a Plan 36 Sub-total Project Related: .---- 120 6 Su.er Size Protects (point values are cumulativn9: A. 100%to 199% `1 1 25 B. 200%to 299% 9 68 C. 300%to 399% 65 0. 400%and Over il V 52 Sub-total Super Size Projects: 2,I D 210 7 eayfor Municipal infrestrtl iia: A. Pay for Over sizing or Upl;rad+ng s I 14 B. Pay for 26-50%of Extension Cost 26 C. Pay for 51-75%of Extension Cost 139 D. Pay for 76-100%of Extension Cost t 52 Sub-total infrastructure Related: 131 Total from Applicant Section: !O 11 539 Total from Staff Section: t b 461 Total Public Benefit Points; W I l 1000 ,i 47' STATEMENT' OF BENEFITS 20 PAY 20 it '1 REAL ESTATE IMPROVEMENTS = State Form 51787(RB 115-141 FORM SB-1 f Real Property . _ Prescribed by the Department of Local Government Finance j PRIVACY NOTICE This statement Is oeing completed tel real properly that qualifies under the following Indiana Code(check one box): Any u,ronnnhen a,fcernlnp theuost Redevelopment or rehabilitation of real estate Improvements(IC 6-1.1-12,1-4) or the INDp,rtr rind specific solarise paid ro melees unl employees by the Residentially distressed area(IC 6-1.1-12.1-4.1) property owner le ronhdenhnt per Ice-1 t-12.1.61 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 en Economic Revitalization Area. Otherwise,this statement must be submitted to the designating body BEFORE the redevelopment or rehabilitation of reel 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 en 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 322/RE 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 then(ha-1y(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 Ole e deduction application within the prescribed deadline may file an application between March 1 and May 10 of a subsequent year 4 A property owner who files for the deduction must provide the County Audttcr and designating body with a Form CF-1/Reel Property. The Form CF-1/Real Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction Is applicable. /C 6.1.1-12.1-5.1(b) 5. For a Form SB-1/Reel Property that is approved after June 30. 2013, the designating body Is required to establish en 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 SECTION 1 TAXPAYER INFORMATION Name of taxpayer The Tower at Washington Square LLC Address of taxpayer(number and stmt,city steel,end ZiP code) 5-44 47th Avenue,4th Floor, Long Island City, NY 11101 None of contact parson Telephone number E-mail address ( ) 718-786-5555 mkazanas1969@gmail.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Jerre of dnsegnatnp body Rnxo(uhan number Common Council of South Bend -oration xi property County DLOF taxing district number 213 West Washington Street,South Bend, IN 46601 St.Joseph 026 Descrlptwn of reel property Improvements,rndeonloprnnel,onxheba:Inline(use adr-earrul shouts d narossory) Eshmeled start date(month,day,year) 4/15/2023 Develop—90 apt units, addrl meeting/event spaces and 7th floorbar/lounge/event venue Estimated completion date(month,day.year) 04/15/2024 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Snlsr.. Number,strained Salaries Number additional Salanes 0 9 avg-.$36,000 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS II COST I ASSESSED VALUEI Current values 11 100000 11494200 L Plus estimated values of proposed project 114700000 Less values of any property being replaced 10 { Net estimated values upon cam.letlon of.ro eci 1580000(1 SEC-110N 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY TI•IF TAXPAYER Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds) Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. lfgreluro of supronzud rnpo-ronlnlive / / i / Date signed(merit,day,year) .r- r/ , f;, / : ,�1 y 03/20/2023 Prfetail name d author'Leif repree?ntauvo Tien -- ---- --— - --- - --- -- Liberty Angeliades Manager Page 1 of 2 • FOR USE QF-THE DESIQNATINO BODY We find that the applicant meets the generat standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following imitations: A. The designated area has been limited to a period of time not to exceed calendar yearn"(see below). The data this designation expires Is B. The type of deduction that Is allowed In the designated area Is limited to: 1.Redevelopment or rehabilitation of real estate Improvements 0 Yea ❑No 2.Residentially distressed areas ❑Yes ❑No C. The amount of the deduction applicable Is limited to$ . 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 6 0 Year 0 ❑ Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt en abatement schedule par IC 6-1.1-12.1-17? [l Yes El 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 11(1e of aufhodzed member of designating body) Telephone number Dale algned(month,day,year ( I Printed name of authorized member of designating body Name of designating body Attested by(sionsture end flus or aeeaNr 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 toe number of years that Is leas than the number of years designated under IC 8-1.1-12.1-17. 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 atier June 30, 2013,the designating body la required to establish an abatement schedule for each deduction allowed, The deduction period may not exceed ten (10)years. (See IC 8.1.1-12.1-17 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 atter June 30,2013.the designating body Is required to establish en 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 toe 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. Filed in Clerk's Office MAR 2 1 2023 DAWNf .JOlvr CITY CLERK,SOUTH BEND,IN Page 2 of 2 Aerial Views �l• M R.1 C AI,1.LI 1r11111 • •c A..... .3 40..,,, ii• 4 Ap ho . j , I 1C _.�• .jj Tr:, fes ' r • k t 1 3 k! ' — 3 I n:»: o , 2km -_-- • •1'05 -ten 4,14 F p, . . 4 P i P E, 11 ter .,.....,,___ ry " : ,,i, _ is .: _rt.._____.,„ ,,til , .. , , :r -I, Ise r.. - utlrv• C "' . r • x F . View of Liberty Tower looking north from South Main Street 0000 \\\. 00 000 \ASk IP.:4$40°"0•0001& \\\ "i0lool,,.?•,:•/00 os?••• \\\A 0000 —4. °Ss.°°till°111.11°°11111.01.-.111111k. .100.11111. F1ioit `k. 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Z A A Z Filed in Clerk's Office 7-- APR APR 0 3 202)''`� STATEMENT OF BENEFITS 1 ;:,,',4.7'"--‘ �� f DAWN M.JONES I zo_PAY20_ itiett, 1 REAL ESTATE IMPROVEMENTS CITY CLERK,SOUTH BEND, IN j 5!ate REAL, 61787(Ra/1 -14) FORM SB-7/Real Property 7.111!:-;_ Prescribed by the Department of Local Government Finance PRIVACY NOTICE This statement Is oeing completed for real property that qualifies under the following Indiana Code(check one box): -Any rnrormubon concerning�Mcr coli ❑Redevelopment or rehabilitation of real estate Improvements(IC 6-1.1-12.1-4) o!the!uo!xnty and spour�c Santee © paid 10 odrvs unt ornpinyans by the Residentially distressed area(IC 6-1.1-12.1.4.1) pioeerty ownIn roi l dent jl pert INSTRUCTIONS: Cti-t 1.1. t.n h 1 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 fo the designating body BEFORE the redevelopment or rehabilitation of reel property for which the parson 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 initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction. 3. To obtain a deduction,a Form 322/RE must be fried with the County Auditor before May 10In 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 tile a deduction application within the prescribed deadline may 5/e an application between March 1 and 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-1/Reai Property. The Form CF-1/Real Property should be attached to the Form 322/RE 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/Reel Property that is approved after June 30. 2013, the designating body to required to establish an abatement schedule for each deduction allowed. Fore Form SB-1/Real Properly that is approved prior to July i, 2013, the abatement schedule approved by the designating body remains in effect. (C 6-1.1.12.1-17 SECTION 1 TAXPAYER INFORMATION Name of taxpayer The Tower at Washington Square LLC Address of taxpayer(number and street,clf)t stew,end ZiP code) 5-44 47th Avenue,4th Floor, Long Island City, NY 11101 Nome of contact person Telephone number E-mel address ( ) 718-786-5555 mkazanas1969@gmail.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Nerve of desrgnal!na twdy Resc!utirn number Common Council of South Bend Leratton of property County DLOF taxing district number 213 West Washington Street,South Bend, IN 46601 St.Joseph 026 ❑nscrin!ton al real properly Improvements,re;evnloprnnn!.or'nluibb!nlinn(use Jrirrrftenut sheets rf necuscery) Estimated start date(month,day,year) 04/15/2023 Develop—90 apt units, addtrl meeting/event spaces and 7th floorbar/lounge/event venue Estimated completion dale(month,day,year) 04/15/2024 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current number Sayler, Numberrntayned Salaries Number additional Salaries 0 9 avy—$36,000 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS 1 COST ASSESSED VALUE _ 1 Current values 11 100000 1494200 I. Plus estimated values of proposed project 114700000 Less values of any property being replaced I0 Net estimated values u.. co .telIon of. ec! 15800000 SECiION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) _-_ Estimated hazardous waste converted(pounds) Other benefits SECTION o TAXPAYER CERTIFICATION I hereby certify that the representations In this statement are true. ;ynaturo of au iori,d regtaxntnlfw ` onto signed(month,day,year) v-t G . �r 1 /J/) / f ,•;,1.,• �',,,: ,�l i 03/20/2023 — - - Prin!el name d nuthorited repreaeMatfve Title Liberty Angeliades Manager Page 1 of 2 FOR USE OF.THE DESIGNATING BODY- We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12. 1 provides for the following llmltations: A. The designated area has been limited to a period of time not to exceed calendar years*(see below). The date this designation expires is _ 03/27/2026 B. The type of deduction that is allowed In the designated area Is limited to: 1.Redevelopment or rehabilitation of real estate Improvements 0 Yes ❑No 2.Residentiallydistresaed areas ❑Yee D No C. The amount of the deduction applicable is limited to$ 0. Other limitations or conditions(specfly) _ N/A E. Number of years allowed: ❑Year 1 0 Year 2 [ Year 3 ❑Year 4 ❑ Year 5 ("see below) 0 Year 8 ❑Year 7 E Year B ❑Year g ❑ Year 10 F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177 ❑ Yee O No If yes,attach a copy of the abatement schedule to this form. If no,the designating body is required to establish en 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 end expectations are reasonable and have determined that the totality of benefits is sufficient to Justify the deduction described above. Approved(signature and elle or authorized member of designating body) Telephone number Dale atoned(month,debt year) ( ) Printed name of authorized member of designating body Name of designating body Attested by(signature end etre oreeesbQ Printed name of Oasis( •If the designating body limits the lime period during which an area Is en economic revitalization area,that!Imitation does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is lees 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. Fore Form SB-)!Real Property that Is approved eller 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 6.1.1-12.1-17below.) B. For the redevelopment or rehabilitation of reel property where the Form SB-1/Reel Properly was approved prior to Juiy 1,2013,the abatement schedule approved by the designating body remains In effect.For a Form SB-1/Real Property that la approved after June 30,2013,the designating body le required to establish an abatement schedule for each deduction allowed.(See IC 6-1.1-12.1-17below,) IC 8-1.1-12.1-17 Abatement schedules Sec.17.(a)A designating body may provide to a business that la 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 reel and personal property. (2) The number of new full-time equivalent Jobs created. (3) The average wage of the new employees compared to the elate minimum wage. (4) The Infrastructure requirements for the taxpayer's Investment. (b) Thls Subsection applies toe stetemertt 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 fora particular taxpayer before July 1,2013,remains In effect until the abatement schedule expires under the terms of the restitution approving the taxpayer's statement of benefits. Filed in Clerk's Office _ Filed in Clerk's Office APR 0 3 2023 MAR 2 1 2023 CI DAWN M.JONES CITY CLERK.SOUTH BEND, IN DAWN w� JONES TY CLERK,SOUTH BEND,IN Page 2 of 2 MEMORANDUM OF AGREEMENT (INDUSTRIAL DEVELOPMENT REAL PROPERTY TAX ABATEMENT) This Memorandum of Agreement (Agreement) dated as of March 30, 2023, serves as confirmation of a commitment by the Tower at Washington Square LLC (the"Applicant"), pending an April 10, 2023, 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. 1. Property Associated with the Abatement and Responsibilities of the Applicant. At the time of this agreement, the property is located at 213 West Washington Street, South Bend, Indiana 46601, and has Key Number 71-08-12-110-024.000-026. Throughout the duration of the abatement, the Applicant shall promptly report any changes in the address or Key Number of the property receiving the abatement to the Department of Community Investment and to the Office of the City Clerk. Moreover,the Applicant also shall report any material changes or improvements made to the property subject to the abatement including changes as the result of subdividing,replatting,or otherwise. The Applicant agrees that failure to promptly report changes can result in a finding of noncompliance on behalf of the Applicant under the commitments of this agreement. 2. 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 an eight-year (8) mixed-use development real property tax abatement for the Applicant, based on the Applicant's commitment set forth in its Application. The Applicant commits to the following(the"Commitments"): (a) making total combined real property expenditures of no less than Fourteen Million Seven Hundred Thousand dollars ($14,700,000.00) for the construction of approximately 90 apartments at a parcel identified by Key Number 71-08-22-103-005.000-026; (b) creating approximately nine (9) permanent full-time jobs with a total estimated annual payroll of$306,000 within three(3)years of the tax abatement; and (c) acting in good faith to complete the project as described in its Application. 3. Applicant's Compliance with City and Stale 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 fifteen (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 at all times complied with the Commitments after the Commitment Date and during the duration of the abatement and for no other purpose. The 1 Applicant further agrees to provide the City with such additional information as requested by the City to determine Applicant's compliance with the Commitments and with local and state requirements within twenty(20)days following any such request.Notwithstanding anything herein to the contrary, the Applicant acknowledges that the City may be required to disclose certain documents provided by the Applicant as required by a court order or applicable law. 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 reasonably determines that the Applicant has not made reasonable efforts to substantially comply with all the Commitments,as defined in Section 2 of this Agreement, and the Applicant's failure to substantially comply with the Commitments was not due to factors beyond its reasonable control, as described in Section 5 below. 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.Applicant has the burden to communicate to the City any such factors in which it believes is beyond its control and impacting its ability to fulfill the terms of this Agreement or any tax abatement benefit provided to the City. The City reserves the right to investigate the factors cited by Applicant under this Section 5 to the fullest extent possible and may deny Applicant's request upon the completion of the City's investigation. 6. Renavment of Tax Abatement Savings. If at any time during the term of this Agreement the Applicant shall: (a) be delinquent or in default with respect to any tax payment in St. Joseph County, Indiana;or(b)cease operations at the facility for which the tax abatement was granted;or(c)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 (30) 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. 2 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 (the "Statement"), and Applicant shall make such repayment to the City within one hundred twenty (120) 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 of this Agreement and the collection of the tax abatement savings required to be repaid hereunder. 9. Modification/Entire Agreement. This Agreement and the schedules attached hereto 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. 12. 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: The Tower at Washington Square LLC -..-111-1 LIT"' JRtJEtvlq[r Log toy toy 11101 Attn: Li CITY ANGE I-i/kD ES 3 If to the City: City of South Bend, Indiana 227 W. Jefferson Boulevard, Suite 1400S South Bend, Indiana 46601 Attn: Executive Director of Community Investment 13. 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 (a) 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, and (b) Applicant may assign and transfer its rights under this Agreement to the Permitted Assign without prior written consent. "Permitted Assign" means the affiliated single purpose entity created for purposes of designing, constructing, owning, operating, and maintaining the apartment complex which is the subject of this Agreement. 14. 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. 15. 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. 16. No Personal Liability. No official, director, officer, employee, or agent of the City shall be charged personally by the Applicant, its employees, or its 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.] 4 IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the day and year first above written. _ `Applicant" - `City _-- [The Tower at Washington Square LLC City of South Bend,Indiana By: " t.r ��z.�1< GL' By: Liberty Angeliades lJ Sharon McBride Manager President, South Bend Common Council The Tower at Washington Square LLC By: — Approved as to Legal Adequacy and Form this Rachel Tomas Morgan day of ,2023. Chairperson, Community Investment Committee Counsel, South Bend Common Council By. Erik Glavich Department of Community Investment Counsel for Applicant By James Mueller Mayor (Attachment follows.] 5 Filed in Clerk's Office BILL NO. 23-11 MAR 2 2 2023 DAWN M.JONES RESOLUTION NO. 5008-23 CITY CLERK,SOUTH BEND,IN 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 213 West Washington Street, South Bend, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT- YEAR (8) REAL PROPERTY TAX ABATEMENT FOR Apartments and Commercial Space at Tower at Washington Square LLC WHEREAS, a petition for real property tax abatement have been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the areas described as: Key Number: 71-08-12-110-024.000-026 Commonly Known As: 213 West Washington Street, South Bend, IN 46601 Legal Description: R-1 Apartments Lots 239 & 240 & Vac Alley W & Adj OP w 32.3% int in common areas 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,petitioner has agreed to and has accepted responsibility to report any changes in the Key Number and legal description to the Department of Community Investment and to the Office of the City Clerk; 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 each area qualifies as an Economic Revitalization Area under Indiana Code § 6-1.1-12.1 et seq., and South Bend Municipal Code Sections 2-76 et seq., 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 Areas shall be limited to three (3) 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 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. Year 1 - 100% Year 2 - 95% Year 3 - 90% Year 4 - 85% Years - 80% Year 6 - 75% Year ? - 70% Year 8 - 65% 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. Sharon McBride, Council President South Bend Common Council Attest: Dawn M. Jones, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana, on the day of _ 2023, at _ o'clock .m. Dawn M. Jones,City Clerk Office of the City Clerk Approved and signed by me on the day of ,2023,at o'clock .m. James Mueller, Ma/or Filed in Clerk's Office City of South Bend MAR 2 2 2023 DAWN M.JONES CITY CLERK,SOUTH BEND,IN