HomeMy WebLinkAboutBill No. 23-37 Herstoric Properties LLC CONFIRMING South 516 Michigan St, SB, IN 6 yr Real Property tax abatement 'r I:,
_ \ CITY OF SOUTH BEN b _—
Filed ire GIeFI 's Office
COMMUNITY INVESTMENT
JUN 1
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[7AWN M,1C1N�
June 21, 2023 CITY CLERK,Sqd ENI ,IN
Council Member Rachel Tomas Morgan
Chairperson, Community Investment Committee
South Bend Common Council
4th Floor, County-City Building
South Bend, Indiana 46601
RE: Confirming Resolutions (2): Vacant Building Tax Abatement and Mixed-Use
Development Real Property Tax Abatement for Herstoric Properties, LLC
Dear Council Member Tomas Morgan:
Please find the enclosed information pertaining to a tax abatement petition submitted by
Herstoric Properties, LLC, an Indiana Limited Liability Company. This petition package includes:
• Department of Community Investment's summary report
• Letter from the petitioner providing an overview of the project
• Petition for abatement
• Statement of Benefits forms(SB-1 /VBD and SB-1 / Real Property)
• Supporting information
The report contains the Department's findings relative to the above-mentioned petition. The
petitioner intends to renovate the Monarch Printing Building, a local historic landmark
located at 516 S. Michigan Street in South Bend. The building has been vacant for over a
decade.
The total private investment to rehabilitate the building is $570,000. The project meets the
qualifications for two abatements: a two-year(2) vacant building tax abatement and a six-year
(6) mixed-use development real property tax abatement.
A representative from Herstoric Properties, LLC, will be available to meet with the Committee on
Monday, June 26, 2023.
If you or any of the other Council members have questions concerning the report or need
additional information, please feel free to call me at(574) 235-5838.
Sincerely,
Erik Glavich
Director, Growth and Opportunity
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
14005 County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov
Filed in Clerk's Office
BILL NO. 23-37 JUN 2 1 2023
RESOLUTION NO. 5034-23 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
South 516 Michigan Street, South Bend, IN 46601
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
SIX-YEAR (6) REAL PROPERTY TAX ABATEMENT FOR
Herstoric Properties, LLC
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as an Economic Revitalization
Area for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area described as:
Key Number: 71-08-12-307-003.000-026
Commonly Known As: 516 S. Michigan Street, South Bend, IN 46601
Legal Description: S 1/2 Lot 9 Martins Add
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 shall expire on
December 31, 2026.
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 six (6) years as shown by the
schedule outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17 and
further determines that the petition, the Memorandum of Agreement between the Petitioner and
the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the
Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq.
Year 1 - 100%
Year 2 - 90%
Year 3 - 80%
Year 4 - 70%
Year 5 - 60%
Year 6 - 50%
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
LJJUN 2 1 2023
DAWN M.JONES
CLERK,SOUTH BEN
Herstoric Properties, LLC
614 South Saint Joseph Street
S:; 46601
th Bend, IN HE RSTORIC
4) 300-8041
charity.herdevelopment@gmail.com DEVEOPMENT
June 12, 2023
Honorable Council Members,
Herstoric Properties is seeking a tax abatement for our mixed-use building located at 516 S.
Michigan Street. We are seeking both the vacant building abatement for the building's current
vacant status, and an abatement for the planned improvements that will be completed over the
next few years.This project will result in over$500,000 of investment in the South Bend area,
support job creation and economic growth through the establishment of versatile commercial
spaces, and provide additional affordable residential rental units in a downtown neighborhood.
This building is owned by Charity Stowe and Rachel Mospan, the co-owners of Herstoric
Development. We are small developers, focused on investing in the Monroe Park neighborhood
of South Bend. We have observed that often, development of neighborhoods is done without
consideration for the existing community and resources already residing in the area. Old
buildings are torn down, replaced with new construction, and residents are displaced for
wealthier tenants or homeowners who can afford the freshly gentrified locale. This often leads
to the destruction of existing community, culture, buildings, and land and does not provide
long-term residents a chance to benefit from said improvements. We believe we can succeed
with a different approach.
In Monroe Park, our goal is to enhance the beauty and function of the neighborhood while
honoring the history and preserving the culture that already exists. We do this by working with
neighbors to identify needs and leveraging resources available in the community. In our
businesses, we are committed to making a concerted effort to engage with minority and female
entrepreneurs and small business owners for positions within our company and when
assembling our support team of experts in accounting, legal, architecture, marketing, and so on.
When it comes to our rentals, we seek to provide affordable spaces,facilities, and amenities
attuned to the local community and their needs.
This property, known as the Monarch Printing Co. building, is designated as a local historic
landmark in South Bend. While it is in need of repair, it remains an excellent example of Neo-
Classical style with many original features intact.The building plays an important role in an area
that is significant as one of South Bend's only remaining commercial districts from the period of
1911-1930. We plan to restore the building, maintain its historic characteristics and charm,
while adapting the use of the building to meet the needs of the surrounding community.This
building will be our flagship commercial space for our model of development that centers
people and places in the neighborhood where we live and work.
As entrepreneurs and a start-up business, we appreciate the programs and support available
from the City of South Bend and its partners, as we seek to improve this building and others in
Monroe Park, thereby making a significant contribution to the revitalization of downtown
neighborhoods. The tax abatement will alleviate short-term expenses as we fulfill our vision and
lay the groundwork for our long-term goals.
We ask that you support our petition for abatement, and greatly appreciate your consideration.
Warm regards,
i§21.16 /
/0c, 4 '
•
Charity Stowe and Rachel Mospan
CO-OWNERS
TAX ABATEMENT REPORT
TO: South Bend Common Council
FROM: Erik Glavich, Director, Growth and Opportunity
SUBJECT: Vacant Building Tax Abatement and Mixed-Use Development Real Property Tax
Abatement for Herstoric Properties, LLC
DATE: June 7, 2023
On June 5, 2023, a petition for tax abatement from Herstoric Properties, LLC, was filed with the
Office of the City Clerk. The petition seeks consideration for(1) a vacant building abatement
and (2) a mixed-use development real property tax abatement for the historic Monarch Printing
Building located at 516 S. Michigan Street in South Bend.
Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South
Bend, the 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, investigated the area, and makes
the following report.
Project Summary
• The developer, Herstoric Properties, LLC, plans to rehabilitate the abandoned Monarch
Printing Building on South Michigan Street south of Monroe Street. Built in 1921, the
building has been vacant for at least a decade. Herstoric Properties, LLC, purchased the
property earlier this year.
• The building was declared a City of South Bend Local Landmark in 1995 by the
Common Council (Ordinance No. 8630-95).
• The renovation project will be conducted in two phases:
o Phase 1 will be to renovate and activate the first floor commercial spaces. When
leasing the space, Herstoric Properties, LLC, will focus on local, small
businesses that employ and/or serve the neighbors of Monroe Park.
o Phase 2 will involve renovating and leasing the second floor as residential
apartments. The petitioner plans to offer affordable rental rates to all tenants—
commercial and residential—as their mission is to keep barriers low for tenants
and businesses to participate and thrive in the community and economy.
• Total private investment for the project is$570,000.
Employment Impact
• Herstoric Properties, LLC, plans to hire 2 full-time employees with an estimated total
annual payroll of$140,000. The company hopes to hire a third full-time employee by the
end of 2024.
• Once the renovation is completed and the entire space is active, the petitioner estimates
that businesses located in the renovated spaces could hire 30 to 40 new employees.
Tax Estimates
Vacant Building Tax Abatement: The petitioner qualifies for a two-year(2)vacant building tax
abatement.
• Current estimated annual taxes: $1,448
• Estimated taxes being abated during the abatement period: $1,416
• Estimated total taxes to be paid during the abatement period: $1,481
Mixed-Use Development Real Property Tax Abatement: The petitioner qualifies for a six-year
(6) mixed-use development real property tax abatement.
• Current estimated annual taxes: $1,448
• Estimated annual taxes after the project's completion: $14,047
• Total estimated taxes during the six-year(6) abatement period: $84,282
o Estimated taxes being abated during the abatement period: $42,900
o Estimated total taxes to be paid during the abatement period: $41,382
Abatement Qualification
1. A review of the tax abatements previously granted finds that the petitioner has not been
granted or is associated with a previous abatement.
2. The property is properly zoned for the proposed project.
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
in the River West Development Area.
2
5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets
the qualifications for the following:
• Two-year(2)vacant building tax abatement under Division 9 (Miscellaneous Real
Property Tax Abatement), Section 2-84 (Council's Authority to Enlarge Real
Property Tax Abatement General Standards).
• Six-year(6) mixed use development real property tax abatement under Division 5
(Mixed Use Development Real Property Tax Abatement).
3
2-Year Abatement June 5,2023
Herstoric Properties LLC
South Bend Portage Township
Vacant Building Tax Abatement Schedule
Property Address: 516 S. Michigan Street
Tax Key Number: 71-08-12-307-003.000-026
Current Year 1 Year 2
Assessed Value(AV)
Land $ 6,100 $ 6,100 $ 6,100
Structure 36,500 36,500 36,500
Gross Assessed Value 42,600 42,600 42,600
Abatement(100%of Structure) 100% 50%
Abatement Deduction (36,500) (18,250)
Net Assessed Value 42,600 6,100 24,350
Property Taxes
Assume constant tax rate of 5.2897%
Gross Tax(Tax Rate x Net AV) 2,253 323 1,288
Local Tax Credit(8.7112%of GT-DS) (181) (26) (104)
Circuit Breaker Credit (624) - -
Taxes Due $ 1,448 $ 297 $ 1,184
3% 3% 3%
Circuit Breaker Cap 1,278 1,278 1,278
Debt Service (0.3997%of Net AV) 170 24 97
Max Tax Under the Cap 1,448 1,302 1,375
Year Taxes Due Taxes Abated Net Taxes
Paid
1 $ 1,448 $ (1,152) $ 297
2 1,448 (264) 1,184
Total: 2,897 (1,416) 1,481
This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023.
The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates.
.,7;`,164,*"""*'''..., Department of Community Investment
.. = City of-South Bend
6-Year Abatement June 5,2023
Herstoric Properties LLC
South Bend Portage Township
Commerical Development Real Property Tax Abatement Schedule*
Type of Property: Mixed Use
Estimated Project Cost: $ 375,000 Rehabilitation
Property Address: 516 S.Michigan Street
Tax Key Number 71-08-12-307-003,000-026
Without
Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Assessed Value(AV)
Land $ 6,100 $ 6,100 $ 6,100 $ 6,100 $ 6,100 $ 6,100 $ 6,100 $ 6,100
Structure(AV=80%Project Cost) 36,500 336,500 336,500 336,500 336,500 336,500 336,500 336,500
Gross Assessed Value 42,600 342,600 342,600 342,600 342,600 342,600 342,600 342,600
Abatement 100% 90% 80% 70% 60% 50%
Abatement Deduction - (300,000) (270,000) (240,000) (210,000) (180,000) (150,000)
Net Assessed Value 42,600 342,600 42,600 72,600 102,600 132,600 162,600 192,600
Property Taxes
Assume constant tax rate of 5.2897%
Gross Tax(Tax Rate x Net AV) 2,253 18,123 2,253 3,840 5,427 7,014 8,601 10,188
Local Tax Credit(8.7112%of GT-DS) (181) (1,459) (181) (309) (437) (565) (693) (820)
Circuit Breaker Credit (624) (5,016) - - - - - -
Taxes Due $ 1,448 $ 11,647 $ 2,072 $ 3,531 $ 4,990 $ 6,449 $ 7,908 $ 9,368
3% 3% 3% 3% 3% 3% 3% 3%
Circuit Breaker Cap 1,278 10,278 10,278 10,278 10,278 10,278 10,278 10,278
Debt Service(0.3997%of Net AV) 170 1,369 170 290 410 530 650 770
Max Tax Under the Cap 1,448 11,647 10,448 10,568 10,688 10,808 10,928 11,048
Combined
Year Abatement Current Taxes New Net Taxes
Current& Taxes Abated
Due Projected Tax Paid
New Taxes
1 100% $ 1,448 $ 10,199 $ 11,647 $ (9,575) $ 2,072
2 90% 1,448 10,199 11,647 (8,116) 3,531
3 80% 1,448 10,199 11,647 (6,657) 4,990
4 70% 1,448 10,199 11,647 (5,198) 6,449
5 60% 1,448 10,199 11,647 (3,739) 7,908
6 50% 1,448 10,199 11,647 (2,280) 9,368
Total: 8,690 61,195 69,884 (35,566) 34,318
This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. =I', 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
6-Year Abatement June 5,2023
Herstoric Properties LLC
South Bend Portage Township
Residential Real Property Tax Abatement Schedule
Type of Dwelling: Multi-Family Residence -6 units-
Estimated Project Cost: $ 125,000 Rehabilitation
Property Address: 516 S.Michigan Street
Tax Key Number: 71-08-12-307-003,000-026
Without
Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Assessed Value(AV)
Land $ - $ - $ - $ - $ - $ - $ - $ -
Structure(Current AV+80%Project Cost) - 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Gross Assessed Value - 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Abatement 100% 90% 80% 70% 60% 50%
Abatement Deduction - (100,000) (90,000) (80,000) (70,000) (60,000) (50,000)
Net Assessed Value - 100,000 - 10,000 20,000 30,000 40,000 50,000
Property Taxes
Assume constant tax rate of 5.2897%
Gross Tax(Tax Rate x Net AV) - 5,290 - 529 1,058 1,587 2,116 2,645
Local Tax Credit(8.7112%of GT-DS) - (426) - (43) (85) (128) (170) (213)
Circuit Breaker Credit - (2,464) - - - - - (232)
Taxes Due $ - $ 2,400 $ - $ 486 $ 973 $ 1,459 $ 1,945 $ 2,200
3% 2% 2% 2% 2% 2% 2% 2%
Circuit Breaker Cap - 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Debt Service(0.3997%of Net AV) - 400 - 40 80 120 160 200
Max Tax Under the Cap - 2,400 2,000 2,040 2,080 2,120 2,160 2,200
Combined
Year Abatement Current Taxes New Net Taxes
Current& Taxes Abated
Due Projected Tax Paid
New Taxes
1 100% $ - $ 2,400 $ 2,400 $ (2,400) $ -
2 90% - 2,400 2,400 (1,913) 486
3 80% - 2,400 2,400 (1,427) 973
4 70% - 2,400 2,400 (941) 1,459
5 60% - 2,400 2,400 (454) 1,945
6 50% - 2,400 2,400 (200) 2,200
Total: - 14,398 14,398 (7,335) 7,064
*This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. ;'�
^ '_ 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 Instructions:campletepages 1-3
AND the proper Form SB-1 for ,l
Petition for Incentives the type of abatement(rile--
—F 1;.
!1n property or personal progerty)F!ed 1n.Cliirk$ Of Ice
Petition must Include a$250
filing fee payable to the City Oerk's Office for which you are applying.
before processing con be complete
General Information Project Name Monarch Printing Co Project Number J
i f]
n 1hI
Legal name as registered with
Secretary of State Herstoric Properties, LLC t`
Business structure UAWN IA.JUNE
Domestic Limited Liability Company r_ITy r'LERK,SOUTH BEND,IN
Company website https://www.instagram.com/herstoricdevelopment/
Proposed Project Information
Proposed project address 516 South Michigan St Parent company name Herstoric Properties, LLC
City,State,Zip South Bend, IN 46601 Legal owner Herstoric Properties, LLC
Site acreage or acreage required Is the real estate owned
0.12 or leased? Owned
Square feet of facility
8,900 if leased,by whom?
Primary Contact Information
Primary company contact name Title
Charity Stowe
Address of company contact Phone
614 South Saint Joseph Street (574) 300-8041
City,state,zip South Bend, IN 46601 Email charity.herdevelopment@gmail.com
Senior Official Information
Company senior official name Rachel Mospan Title
Address of company contact Phone
(if different from above) 15555 Hunting Ridge Trail (312) 590-0062
City.State.Zip Granger, IN 46530 Email rachelmospan@gmail.com
Consultant Information/Agent
Hired business consultant/agent name Consultant release?(V/N)
Address Local economic development partners
approval?(Y/N)
City,State,Zip Email
Project Overview
Brief description of your
Herstoric Properties is the property owner for Herstoric Development,an incremental development company focused on the
company,project,and why the Monroe Park neighborhood of South Bend.We are enhancing the beauty and function of the neighborhood while honoring the
property is necessary for history and preserving the culture that already exists.
economic growth
The Monarch Printing Co.building is designated as a local historic landmark.While it has been damaged by neglect,lime and the
elements and is in need of repair,it remains an excellent example of Neo-Classical style detailed commercial construction with
many original features remaining intact.
We plan to restore the building,maintaining historic characteristics and charm,while adapting the use of the building to meet the
needs of the surrounding community
Phase 1 will be to renovate and activate the first floor commercial spaces.When leasing the space,we will focus on local,small
businesses that employ and/or serve the neighbors of Monroe Park.This is one of the few commercial buildings close to the
neighborhood,so it will fill a need for beautiful and accessible commercial space,allowing these small businesses:o put down
roots,grow and flourish.
Phase 2 will involve renovating and leasing the second floor as residential apartments.We plan to offer affordable rental rates to
all tenants,commercial and residential,as our mission is to keep barriers low for tenants and businesses to participate and thrive
in the community and economy
Certified Technology Park appropriate N/A
Is the project in a Tax Incremental Financing
(TIF)area? If so,which? River West
Have Building Permits been Issued?IY/N) Number of residential units created by
(Note-Not eligible for abatement If Yes) N projeo 6 (in Phase 2)
If this is a petition for personal property tax abatement,has
the equipment been installed? N/A
Investment Details
Public Infrastructure needs Has any SO4 funding been What Is the value of any equipment being purchased in What is the value of any equipment being
(Off-site of project In dollars) received? Indiana for the protect? purchased from out of state for the project?
N/A No N/A N/A
New Project Investments
Calendar Year 2022 2023 2024 2025 2026 2027 2028 2029
Land Acquisition
Bulldmg Lease Payments
Building Purchase Costs $55.000 00
New Building Construction
Existing Building Improvements $50.000 00 S 250,000 00 $200,000
New Machinery&Equipment
Special Tooling/Retooling
New Furniture/Fixtures $ 10,000 00 $20,000 00 $40,000 00
New Computer/IT Hardware
New Software
On-site Rail Infrastructure
Omsitr Fiber Infrastructure
TOTAL $0.00 $115,000 00 $270.000.00 $240,000.00 $0.00 $0.00 $0.00 $0.00
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year Jobs retained Hourly Cumulative it of net NEW full time Hourly average wage,w/o Total training Total it to be
average permanent jobs created at project benefits or bonuses,of expenditure- trained-not
wage.w/o
benefits or cumulative net new Jobs not cumulative
bonuses cumulative
2073 2 $35.00 $C 0
2024 3 $35.00 S 1,000 1
2025 10 $25.00
2026 30 $20.00
2027 40 S 20.00
2028 40 $21.00
2029 40 $22.00
2030 40 $23.00
2031 40 $24.00
2032 40 S 25 00
2033 40 1 $26.00
2034 40 $27.00
Provide hourly wage information for new employees in the following positions.
Full time Part time
Laborers $20.00
$ 15.00
Technical $30.00 $35 00
Managerial $50.00
Administrative $20.00
$ 15.00
Who will he the individual responsible for coordinating
with WorkOne on recruiting?
Does your company have an EEO hiring polity? Yes Are you an EEO employer? Yes
Please list 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
2223 2022 2021 three
years as well as current policies.
Full Time Part Time Full Time Part Time Full Time Part Time
Black
We are seeking out female
Hispanic entrepreneurs and business
Asian owners in all positions both within
our company,with subcontractors,
Indian and when assembling our support
Female team of experts in accounting,
2 2 legal,architecture.marketing,and
Other So On.
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.
complete the table below with theappropriate information. If Qualify
Please
(Yes or No) earned Poing Available Points
you qualify for the points,please enter the full amount of available
points.
1 Construction Related(Contractors):
A. Employ Local Companies(75%) Y 20 20
B. Purchase Materials from Local Companies(75%) Y 20 20
C. Require Employees vs.Independent Contractors N 0 19
D. Require Prevailing Wage N 0 22
E. Require Health Benefits N 0 22
F. Require Retirement Benefits N 0 18
G. Maintain Affirmative Action Plan N 0 20
Sub-total Construction Related: 40 141
2 Way&&Benefit Related(Owner)-
A. Pay Target Wage Levels Y 33 33
B. Provide Health Benefits N 0 34
C. Provide Retirement Benefits N 0 29
D. Provide Training Y 28 28
E. Provide Child Care N 0 15
F Provide Transportation Assistance N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage&Benefit Related: 61 162
3 Workforce Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan Y 35 35
D. Provide Targeted Hiring Preference Y 34 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.) Y 84 84
Name of Facility
Sub-total Municipal Facility: e4 84
Sub-total from Above: 337 539
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 seg.,and
South Bend Municipal Code Sec.2-76 et seq.,for this petition state the above.
Submitted By: .',r,Vir •J lr,,,L Date: 6/1/2[123
For Staff Use Only Below This Line
1.4.7d : 6, loo
What is the current assessed value? Real Property:
846: 34,500. `0O Personal Property:
What is the projected assessed value? Real Property: - J Personal Property:
What is the tax key number for this project? r — Q 8 -/2. ,- . 07 - 490 3 o p 0 -0 L
What is the slx digit NAICS code? N/4 V 0
Please attach a Google map and street view of the location.
Tease list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes:
paid for the last five years when applicable.
YearOnerat L( 1.02.2, Igg8 9 G 6
Year Two
,J Z LZ' 13 g 7. 3 .Z
Year Three 2...( 2.4 i 3 F 7. o
Year Four 2019 1LZY .ov
Year Flve L Q/8' ti/4
Please fill out the following Public Benefit Summary Information and add to total from above-
(Y or Nj Points Points
Public Benefit Item:
Project Related'
5 A. Redevelop a Site that has Special Needs y1� —I 1 49
B. Develop Based on Local University Research iJ 35
C. Achieve a Physical Element of a Plan N.+ 3(o 36
Sub-total Project Related: ?4> 120
6 Super Size Pro acts jpoint values are cumulative):
A. 100%to 199% I 25 25
B. 200%to 299% N i 68
C. 300%to 399% N
I65
D. 400%and Over N 57
Sub-total Super Size Projects: 2.5 210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing or Upgrading 1/ 14
B. Pay for 26-50%of Extension Cost N 1 26
C. Pay for 51-75%of Extension Cost r 39
D. Pay for 76-100%of Extension Cost N 1 52
Sub-total Infrastructure Related: .....---
131
Total from Applicant Section: 337 539
Total from Staff Section: //0 461
Total Public Benefit Points: `/y 7 1000
,0,*7"4. STATEMENT OF BENEFITS 2023 PAY 2024
; VACANT BUILDING DEDUCTION
State Form 55182(R2/1-21) FORM SB-1 I VBD
, � Prescribed by the Department of Local Government Finance
PRIVACY NOTICE
This statement is being completed for real property that qualifies as an"eligible vacant building"as defined by The cost and any specific individual's
IC 6-1.1-12.1-1(17). salary information is confidential:the
balance of the filing is public record
per IC 6-1.1-12.1-5.1 (c)and(d).
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 occupation of the eligible vacant building for which the person wishes to claim a deduction.
2. To obtain a vacant building deduction,a Form 322/VBD must be filed with the county auditor before May 10 in the year in which the property owner
or his tenant occupies the vacant building or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was
mailed after April 10. If the property owner misses the May 10 deadline in the initial year of occupation,he can apply between January 1 and May 10
of a subsequent year.
3 A property owner who files the Form 322/VBD must provide the county auditor and The designating body with a Form CF-1NBD to show compliance
•
with the approved Form SB-1NBD. The Form CF-1/VBD must also be updated each year in which the deduction is applicable.
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer
Herstoric Properties, LLC
Address of taxpayer
Number andStrect: 614 South Saint Joseph Street city: South Bend State: IN ZIP. 46601
Name of contact person p Telephone number E-mail address
Fine Name: Charity i•is��i.,m,e Stowe (574) 300-8041 charity herhevelopment(a)gmed com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
Common Council of the City of South Bend
Location of property ,County DLGF taxing district number
Number andStreet: 516 S.Michigan St. city: South Bend Crate IN ZfP:466011 St. Joseph 026(South Bend-Portage)
Description of eligible vacant building that the property owner or tenant will occupy(use additional sheets if necessary). Estimated occupancy date(month,day,year)
The Monarch Printing Co. building is designated as a local historic landmark. It has been damaged 11/1/2023
by neglect, time and the elements and is in need of repair. The building is vacant until initial Estimated date placed-in-use(month,day.year)
renovations can be completed. 11/1/2023
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS A RESULT OF PROPOSED PROJECT
Current Number O Salaries $ O Number Retained 0 Salaries $ O Number Additional Salaries $ 210,000
SECTION ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT `D
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values $0 $36,500
Plus estimated values of proposed project $500,000 $400,000
Less values of any property being replaced $0 $0
Net estimated values upon completion of project r $500.000 $436.500
SECTION 5 EFFORTS TO SELL OR LEASE VACANT BUILDING
Desc'ibed efforts oy the owner or previoJs owner to sell lease or rent the budding dx;ng period of vacancy
Took ownership in January 2023. Because renovations are needed, efforts to sell, lease, or rent the
building thus far have been challenging.
Show amount for'which the building was offered for sale.lease,or rent during period of vacancy
N/A
List any other benefits resulting from the occupancy of the eligible vacant building
Once this building is occupied it will contribute beauty and commerce to the street and the district.
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature thorized representative Title Date signed(month,day,year)
tr,r Ii'or vt, vi Co-owners 6/2/2023
Page 1 of 2
FOR USE OF THE DESIGNATING BODY
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed N/A calendar years'(see below). The date this designation
expires is 12/31/2026 _. NOTE:This question addresses whether the resolution contains an expiration date for the designated area.
B. The amount of the deduction applicable is limited to$ N/A
C. Other limitations or conditions(specify) N/A
D. Number of years allowed: 0 Year 1 ® Year 2 ❑ Year 3 0 Year 4 0 Year 5('see below)
0 Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
E. For a statement of benefits approved after June 30,2013,did the designating body adopt an abatement schedule per IC 6-1.1-12.1-17?
® Yes 0N
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 of authorized member of designating body) Telephone number Date signed(month,day,year)
Printed name of authorized member of designating body Name of designating body
Attested by(signature and title 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.
IC 6-1.1-12.1-1
(17) "Eligible vacant building"means a building that:
(A)is zoned for commercial or industrial purposes;and
(B)is unoccupied for at least one(1)year before the owner of the building or a tenant of the owner occupies the building,as evidenced
by a valid certificate of occupancy,paid utility receipts,executed lease agreements,or any other evidence of occupation that the
department of local government finance requires.
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. Except as provided in IC 6-1.1-12.1-18,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
L *11;N 0 5 ?Q7
DAWN M,JONES
CITY CLERK,SOUTH BEND,IN I
Page 2 of 2
%. STATEMENT OF BENEFITS zo23 PAY 2024
A REAL ESTATE IMPROVEMENTS
State Form 51767(R7/1-21) FORM SB-1/Real Property
Prescribed by the Department of Local Government Finance PRIVACY NOTICE
This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost
l] Redevelopment or rehabilitation of real estate improvements(IC 6-t1-12.1-4) of the properly and specific salaries
paid to individual employees by the
P Residentially distressed area(IC 6-1.1-12.1-4.1) property owner is confidential per
IC 6-1.1-12 1-5.1.
INSTRUCTIONS:
1. This statement must be submitted to the body designating the Economic Revitalization Area 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 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 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 January 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/Real 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/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each
deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body
remains in effect. IC 6-1.1-12.1-17
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer Herstoric Properties, LLC
Address of taxpayer
Number and Street: 614 South Saint Joseph Street City: South Bend State: IN ZIP: 46601
Name of contact person Telephone number E-mail address
Pira.Name: Cjharity Las(Name Stowe (574) 300-8041 charity.hcrdevelopment@gmati.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designa:ng node Resolution number
Common Council of the City of South Bend
Location of property County DLGF taxing district number
Number and Street: 516 S.Michigan St, Cily.South Bend Stag,: IN zip,46601 St. Joseph 026(South Bend-Portage)
Description of real property improvements.redevelopment.or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year)
Phase 1 will be to renovate and activate the first floor commercial spaces. Phase
2 will involve renovating and leasing the second floor as residential apartments. Estimated completion date(month,day,year)
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current Number Salaries Number Retained SalariesNumber Additional Salaries
0 $ 0 0 $ 0 3 $ 210,000
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE _
Current values $0 $36,500
Plus estimated values of proposed project $500,000 $400,000
Less values of any property being replaced $0 $0
Net estimated values upon completion of project $500.000 $436,500
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted(pounds) 0 Estimated hazardous waste converted(pounds) 0
Other benefits
Once this building is occupied it will contribute beauty and commerce to the street and the
district.
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature of authorized representative 1� Date signed(month,day year)
t•(i!( Ted: •vL i °. 6/2/2023
Printed name of authorized representative Title
Rachel Mospan and Charity Stowe Co-owners
Page 1 of 2
FOR USE OF THE DESIGNATING BODY
We find that the applicant meets the general standards in tl,e resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed N/A calendar years*(see below). The date this designation
expires is 12/31/2026 . NOTE:This question addresses whether the resolution contains an expiration date for the designated area.
B. The type of deduction that is allowed in the designated area is limited to:
1,Redevelopment or rehabilitation of real estate improvements ®Yes No
2.Residentially distressed areas ❑yes ®No
C. The amount of the deduction applicable is limited to$ N/A
D. Other limitations or conditions(specify) N/A
E. Number of years allowed E Year 1 • []Year 2 ❑Year 3 ❑Year 4 ❑Year 5 (*see below)
►/Year 6 ❑Year 7 ❑Year 8 ❑Year 9 ❑Year 10
F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17?
®Yes No
If yes,attach a copy of the abatement schedule to this form.
If no,the designating body is required to establish an abatement schedule before the deduction can be determined.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved(signature and title of authorized member of designating body) Telephone number Date signed(month.day.year)
( )
Printed name of authorized member of designating body Name of designating body
Attested by(signature and title 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. Except as provided in IC 6-1.1-12.1-18,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. Except as provided in IC 6-1.1-12.1-18,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.
Page 2 of 2
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Filed in Clerk's Office
JUN 2. 1 ZQ23
MEMORANDUM OF AGREEMENTLAWN M.JONES
CITY CLE
RK,SOUTH BEND,IN
(MIXED-USE DEVELOPMENT REAL PROPERTY TAX ABATEMENT)
This Memorandum of Agreement (Agreement) dated as of June 13, 2023, serves as
confirmation of a commitment by Herstoric Properties, LLC (the "Applicant"), pending a June 26,
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 516 South Michigan Street, South Bend, IN 46601,and has
Key Number 71-08-12-307-003.000-026. 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 a six-year (6) 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 Five Hundred Thousand
dollars ($500,000.00) for the renovation of real property at a parcel identified in Section 1 of this
Agreement;
(b) creating approximately two (2) permanent full-time jobs with a total estimated annual
payroll of One Hundred Forty Thousand dollars($140,000.00); and
(c) acting in good faith to complete the project as described in its Application.
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 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. Repayment 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 as Exhibit
A 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: Herstoric Properties,LLC
614 S. Saint Joseph Street
South Bend, Indiana 46601
Attn: Charity Stowe
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 project 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"
Herstoric Properties, LLC City of South Bend, Indiana
By: . By:
Charity Stowe Sharon McBride
Herstoric Properties, LLC President, South Bend Common Council
Approved as to Legal Adequacy and Form this
By:
day of , 2023.
Rachel Tomas Morgan
Chairperson, Community Investment
Counsel, South Bend Common Council Committee
By:
Erik Glavich
Counsel for Applicant Department of Community Investment
By:
James Mueller
Mayor
5
EXHIBIT A
Abatement Schedule
Subject to the adoption by the SBCC of a resolution confirming the adoption of Declaratory Resolution
No. 5030-23, the property owner is qualified for and is granted a mixed-use development real
property tax abatement for a period of six (6) years as shown by the schedule outlined below.
Year 1 - 100%
Year 2 - 90%
Year 3 - 80%
Year 4 - 70%
Year 5 - 60%
Year 6 - 50%
Filed in Clerk's Office
JUN 2. 12023
DAWN M.JONES
CIN CLERK,SOUTH BEND,IN
6