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HomeMy WebLinkAbout24-06-Declaratory Resolution, Mixed-Use Development Real Property Tax Abatement for Momentum Development Group,LLC 111 *,...q0 Ig a Filed in Clerk's Office ,L.7 .N\\,, CITY OF SOUTH BEND- ... MAR o s Zola ` _ ` PEACE865J :' COMMUNITY INVESTMENT Brk, Souirado K City Clerk, South Bend, IN March 6, 2024 Council Member Troy Warner Chairperson, Community Investment Committee South Bend Common Council County-City Building, 4th Floor South Bend, Indiana 46601 RE: Declaratory Resolutions: Mixed-Use Development Real Property Tax Abatement for Momentum Development Group, LLC Dear Council Member Warner, Please find the enclosed information pertaining to a tax abatement petition submitted by Momentum Development Group, LLC, an Indiana Limited Liability Company. This petition package includes: • Department of Community Investment's summary report • Petition for abatement • Statement of Benefits forms (SB-1 / Real Property) • Supporting information The report contains the Department's findings relative to the above-mentioned petition. The petitioner intends to redevelop the property at 510 S. Main Street into an entrepreneurship hub with co-working spaces, commercial kitchen, and retail space. The building has been vacant for several years and was previously owned by the Salvation Army before the City acquired the property in 2019. The total investment for this project is $6,343,000. The project meets the qualifications for an eight-year (8) mixed-use development real property tax abatement. A representative from Momentum Development Group, LLC, will be available to meet with the Committee on Monday, March 11, 2024. 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 wwwsouthbendin.gov Filed in Clerk's Office BILL NO. 24-06 MAR 0 6 2024 RESOLUTION NO. Bianca Tirado 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 510 South Main Street, South Bend, IN 46601 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT-YEAR (8) REAL PROPERTY TAX ABATEMENT FOR Momentum Development Group, LLC WHEREAS, a petition for real property tax abatement consideration has been filed with the City Clerk for consideration by the Common Council of the City of South Bend, Indiana, requesting that the area described as: Key Number: 71-08-12-306-001.000-026 Local Parcel Number: 018-3017-0618 Commonly Known As: 510 South Main Street Legal Description: W. 128'Lot 31, All Lots 32 & 33 &N. 1/2 Vac. Alley So. &Adj. Martins Addition 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 the 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, is 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 the area as an Economic Revitalization Area for purposes of real property tax abatement. SECTION V. The designation as an Economic Revitalization Area shall expire on December 31, 2026. 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 - 100% Year 3 - 95% Year 4 - 95% Year 5 - 90% Year 6 - 90% Year? - 85% Year 8 - 85% 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: Bianca Tirado, 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 , 2024, at o'clock .m. Bianca Tirado, City Clerk Office of the City Clerk Approved and signed by me on the day of ,2024,at o'clock .m. James Mueller, Mayor City of South Bend 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 Momentum Development Group, LLC DATE: March 6, 2024 On March 6, 2024, a petition for tax abatement from Momentum Development Group, 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 redevelopment of the old Salvation Army building at 510 S. Main 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 petition, investigated the area, and makes the following report. Project Summary • The petitioner will redevelop a 1954 downtown building previously owned by the Salvation Army and then by the City. The building is located on the southeast corner of South Main Street and West Monroe Street. • The building has essentially been vacant since 2015 when the Salvation Army left the premises. The City acquired the building in 2019, and the southern retail space portion of the building was used as the City's weather amnesty program. Momentum Development Group, LLC, purchased the building from the City's Department of Redevelopment via a real estate purchase agreement approved in May 2023. Ownership of the property was transferred in July last year. • The petitioner will transform the building into an entrepreneurship hub with co-working spaces including private offices (-23,000 square feet total), a commercial kitchen (-10,000 square feet), retail space (-2,000 square feet), and a cocktail bar(-1,000 square feet). • Work will include restoration of the brick facade, new windows, and wholly new infrastructure of plumbing, electric, and HVAC systems. • Total investment for the project is $6,343,000. Employment Impact • By the end of 2025, the petitioner anticipates the project will support 67 full-time employees with an estimated total annual payroll of$3,025,720. Tax Estimates The petitioner qualifies for an eight-year(8) mixed-use development real property tax abatement. • Current estimated annual taxes: $20,929. o Actual taxes are and have been ZERO ($0) because the building had been owned by the City since 2019 and was owned by the Salvation Army before then. • Estimated annual taxes after the project's completion: $147,843 • Total estimated taxes during the eight-year(8) abatement period: $1,182,742 o Estimated taxes being abated during the abatement period: $834,273 o Estimated total taxes to be paid during the abatement period: $348,469 Abatement Qualification 1. A review of the tax abatements previously granted finds that the petitioner has not been granted a previous abatement. However, Soma Capital LLC, an entity affiliated with the petitioner, received the following abatement. • Resolution No. 5006-23 (3/13/23): Eight-year (8) multi-family residential development real property tax abatement for the renovation of the apartment building located at 536 S. Main Street. Regarding the abatement listed above, the renovation of the apartment building and the transformation of the Salvation Army building are together part of a project to redevelop the east side of the 500 block of S. Main Street. 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. 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). 2 8-Year Abatement March 5,2024 Momentum Development Group, LLC South Bend Portage Township Commerical Development Real Property Tax Abatement Schedule* Type of Property: Mixed Use Estimated Project Cost: $ 5,333,000 Rehabilitation Property Address: 510 S.Main Street Tax Key Number: 71-08-12-306-001.000-026 Without Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Assessed Value(AV) Land $ 38,600 $ 38,600 $ 38,600 $ 38,600 $ 38,600 $ 38,600 $ 38,600 $ 38,600 $ 38,600 $ 38,600 Structure(AV=70%Project Cost) 577,000 4,310,100 4,310,100 4,310,100 4,310,100 4,310,100 4,310,100 4,310,100 4,310,100 4,310,100 Gross Assessed Value 615,600 4,348,700 4,348,700 4,348,700 4,348,700 4,348,700 4,348,700 4,348,700 4,348,700 4,348,700 Abatement 100% 100% 95% 95% 90% 90% 85% 85% Abatement Deduction - (3,733,100) (3,733,100) (3,546,445) (3,546,445) (3,359,790) (3,359,790) (3,173,135) (3,173,135) Net Assessed Value 615,600 4,348,700 615,600 615,600 802,255 802,255 988,910 988,910 1,175,565 1,175,565 Property Taxes Assume constant tax rate of 5.2897% Gross Tax(Tax Rate x Net AV) 32,563 230,033 32,563 32,563 42,437 42,437 52,310 52,310 62,184 62,184 Local Tax Credit(8.7112%of GT-DS) (2,622) (18,524) (2,622) (2,622) (3,417) (3,417) (4,213) (4,213) (5,008) (5,008) Circuit Breaker Credit (9,013) (63,666) - - - - - - - - Taxes Due $ 20,929 $ 147,843 $ 29,941 $ 29,941 $ 39,019 $ 39,019 $ 48,098 $ 48,098 $ 57,176 $ 57,176 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Circuit Breaker Cap 18,468 130,461 130,461 130,461 130,461 130,461 130,461 130,461 130,461 130,461 Debt Service(0.3997%of Net AV) 2,461 17,382 2,461 2,461 3,207 3,207 3,953 3,953 4,699 4,699 Max Tax Under the Cap 20,929 147,843 132,922 132,922 133,668 133,668 134,414 134,414 135,160 135,160 Combined Year Abatement Current Taxes New Current& Taxes Abated Net Taxes Due Projected Tax New Taxes Paid 1 100% $ 20,929 $ 126,914 $ 147,843 $ (117,902) $ 29,941 2 100% 20,929 126,914 147,843 (117,902) 29,941 3 95% 20,929 126,914 147,843 (108,823) 39,019 4 95% 20,929 126,914 147,843 (108,823) 39,019 5 90% 20,929 126,914 147,843 (99,745) 48,098 _ 6 90% 20,929 126,914 147,843 (99,745) 48,098 7 85% 20,929 126,914 147,843 (90,667) 57,176 8 85% 20,929 126,914 147,843 (90,667) 57,176 Total: 167,428 1,015,314 1,182,742 (834,273) 348,469 *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:Complete pages 1-3 � ' urti\ AND the proper Form SB-1 for /E al Petition for Incentives the type of abatement(real property or personal property) � Petition must include a$250 filing fee payable to the for which you are applying. "City of South Bend"before processing can be complete General Information Project Name Project Number Legal name atate red with Momentum Development LLC Secretary of State P Group Business structure LLC-limited liability Company website momentumsb.com Proposed Project Information Proposed project address 510 S. Main Street Parent company name None City,State,Zip South Bend, IN 46601 Legal owner Momentum Development Group LLC Site acreage or acreage required Is the real estate owned Owned acres or leased? Square feet of facility —52,000 If leased,by whom? Primary Contact Information Primary company contact name Mark Neal Title Member Address of company contact 321 S. Main St,Apt 306 Phone 574-339-9406 City,State,Zip South Bend IN 46601 Email mneal@bradleyco.com Senior Official Information Company senior official name same as above Title Address of company contact Phone (If different from above) City,State,Zip Entail Consultant Information/Agent Hired business consultant/agent name n/a Consultant release?(V/N) Address Local economic development partners approval?(V/N) City,State,Zip Email Project Overview Brief description of your Redevelopment of a 1954 downtown building previously owned by the Salvation Army and purchased by SB company,project,and why the City Redevelopment Commission in 2019 to be maintained until a private developer could re-purpose it. property is necessary for Purchase completed by local investors in 2023. economic growth Building will be made into an Entrepreneurship hub("Momentum")with co-working spaces,including private offices. Oher tenants include an—10,000 sq ft commercial kitchen,—2,000 sq ft of ground floor retail space facing Main Street and—1,000 sq ft cocktail bar. Work will include restoration of the brick facade,new windows and wholly new infrastructure of plumbing,electric,HVAC systems and built out for co-working space of—23,000 sq ft with Class A office finishes. Members(tenants)of Momentum will be small businesses/individuals with a target audience of entrepreneurs or other innovation focused individuals(emerging small business owners). Private Commercial kitchen will focus on catering activity in St.Joe county. Retails spaces will be marketed to prospects to complement the activity of Momentum. Construction schedueld to begin in Q2 2024 as final architectural drawings and office design to be completed in March/April 2024. Certified Technology Park appropriate n/a Is the project In a Tax Incremental Financing (TIE)area?If so,which? Yes, River West Have Building Permits been issued?(Y/N) Number of residential units created by n/a [Note-Not eligible for abatement If yes] No project If this is a petition for personal property tax abatement,has the equipment been Installed? n/a Investment Details Public Infrastructure needs Has any 504 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 project? purchased from out of state for the project? n/a No >$100,000 unknown at present New Project Investments Calendar Year 2023 2024 2025 2026 2027 2028 2029 2030 land Acquisition Building Lease Payments Building Purchase Costs $1,000.00 New Building Construction Existing Building improvements $5,333,000.00 New Machinery&Equipment $500,000.00 Special Tooling/Retooling New Furniture/Fixtures $480,000.00 New Computer/IT Hardware $5,000.00 New Software On-site Rail Infrastructure On-site Fiber infrastructure $p5.000 TOTAL $1,000.00 r $0.00 $0.00 $0.00 J'0 00 $0.00 $0.00 Full-Time Permanent Indiana-Resident Positions by Calendar Year Calendar Year Jobs retained Hourly Cumulative If of net NEW full time Hourly average wage,w/o Total training Total fl 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 2024 2025 67 $22.58 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Provide hourly wage information for new employees in the following positions. Full time Part time Laborers $ 19.07 Technical $22.31 Managerial $29.45 Administrative $24.04 Who will be the individual responsible for coordinating with WorkOne on recruiting? Does your company have an EEO hiring policy? New business Are you an EEO employer? New business 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 detailingyour _ outreach and recruitment efforts for the last Year 2024 2023 2022 three years as well as current policies. Full Time Part Time Full Time Part Time Full Time Part Time Black N/A New business Hispanic Asian Indian Female Other Complete the table below for Real Property Tax Abatement only. ***Sign at the bottom for all requested incentives(real AND personal property).*** 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 Points (Yes or No) 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 Y 19 19 D. Require Prevailing Wage N 22 E. Require Health Benefits Y 22 22 F. Require Retirement Benefits Y 18 18 G. Maintain Affirmative Action Plan Y 20 20 Sub-total Construction Related: 119 141 2 Wage&Benefit Related(Owner): A. Pay Target Wage Levels N 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 Y 14 14 G. Provide Employer Assisted Housing program Y 9 9 Sub-total Wage&Benefit Related: 114 162 3 Workforce Related: A. Create New Jobs Y 42 42 B. Retain Existing lobs N 41 C. Maintain Affirmative Action Plan Y 35 35 D. Provide Targeted Hiring Preference N 34 Sub-total Workforce Related: 77 152 4 Support a Municipal Facility: Support a SB Municipal Facility(donations to the A zoo,conservatory,museum,etc.) Y 84 84 Name of Facility MJffi.i (AI-, Ppfp."4it/hi Loc.., VA 1,-t,-d fr 1Sub-total Municipal Facility: 84 84 • Sub-total from Above: 394 539 The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and South Bend Municipal Code Sec.2-76 et seq.,for this petition state the above. Submitted By: Date: February 21,2023 For Staff Use Only Below This Line What is the current assessed value? Real Property: p-/E 1 5 77, "0 Personal Property: What Is the projected assessed value? Real Property: rjOt-/V� l yf 5/i31©iOGsl) ,�Personal Property: A What Is the tax key number(s)for this project? 7, `U S --/.Z ,_30/_IL7 co/ ) 6,y What is the six digit NAICS code? 144 Please attach a Google map and street view of the location. Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes: paid for the last five years when applicable. Tax Year 2022/Pay 2023 e./I-y - o k rieef Tax Year 2021/Pay 2022 1 Tax Year 2020/Pay 2021 +/// Tax Year 2019/Pay 2020 Tax Year 2O18/Pay 2019 C.if, ,'I 17 -i:)l;i la Please fill out the following Public Benefit Summary Information and add to total from above. Y or N Points Points Public Benefit Item: Project Related: 5 A. Redevelop a Site that has Special Needs 9 `1 1 49 B. Develop Based on Local University Research — — 35 C. Achieve a Physical Element of a Plan 36 Sub-total Project Related: Ci 120 6 Super Size Projects(point values are cumulative):A. 100%to 199% ti>/ 2 525 B. 200%to 299% y /c1 E. 68 C. 300%to 399% y &5 65 D. 400%and Over — 52 Sub-total Super Size Projects: /58 210 7 Pay for Municipal Infrastructure: A. Pay for Oversizing or Upgrading — 14 B. Pay for 26-50%of Extension Cost — — 26 C. Pay for 51-75%of Extension Cost 39 D. Pay for 76-100%of Extension Cost — 52 Sub-total Infrastructure Related: — 131 Total from Applicant Section: 394 539 Total from Staff Section: ..2—Si) 1 461 Total Public Benefit Points: (00/ 1000 "-="• STATEMENT OF BENEFITS 2024 PAY2025_ ( REAL ESTATE IMPROVEMENTS State Form 51767(R7/1-21) FORM SB-1/Real Property is 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 E Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) of the property and specific salaries paid to individual employees by the ❑ 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 Properly 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 Momentum Development Group, LLC Address of taxpayer Number and Street: P.O. Box 815 City: South Bend State: IN ZIP: 46624 Name of contact person Telephone number E-mail address First Name: Mark Last Name: Neal (574) 339-9406 mneal@bradleyco.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 and Street: 510 S. Main Street city.South Bend State: 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) Redevelopment of a 1954 downtown building previously owned by the Salvation Army. Building will be made into an 5/1/2024 Entrepreneurship hub with co-working spaces,commercial kitchen,and retail space.Work will include restoration of Estimated completion date(month,day,year) the brick facade,new windows,and wholly new infrastructure of plumbing, electric, and HVAC systems. 4/30/2025 SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT Current Number0 Salaries` 0 Number Retained 0 Salaries $ 0 Number Additional Salaries $IW: 67 $ 3,025,720 SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT REAL ESTATE IMPROVEMENTS COST ASSESSED VALUE Current values $1,000 $577,000 Plus estimated values of proposed project $6,343,000 $3,733,100 Less values of any property being replaced $0 $0 Net estimated values upon completion of project $6,344,000 $4,310,100 SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted(pounds) 0 Estimated hazardous waste converted(pounds) 0 Other benefits SECTION 6 TAXPAYER CERTIFICATION I hereby certify that the representations in this statement are true. Signature of authorized representative Date signed(month,day,year) 2/27/2024 Printed name of authorized resentative Title Mark W Neal Member Page 1 of 2 FOR USE OF THE DESIGNATING BODY We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed under IC 6-1.1-12.1,provides for the following limitations: A. The designated area has been limited to a period of time not to exceed N/A calendar years*(see below). The date this designation expires is 12/31/2026 . NOTE:This question addresses whether the resolution contains an expiration date for the designated area. B. The type of deduction that is allowed in the designated area is limited to: 1.Redevelopment or rehabilitation of real estate improvements ®Yes ❑No 2.Residentially distressed areas ❑Yes ®No C. The amount of the deduction applicable is limited to$ N/A D. Other limitations or conditions(specify) N/A E. Number of years allowed: ❑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? Di 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 Common Council of the City of South Bend, Indiana 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 Aerial and Street Views 1 tw Bil .---.I 0, ae ;.,r .E �7.. -1Mrrktt+— 1; it If t I, t _ . Aims .Il4 ,`.■� 7 II , ,. a-. _.-_ r. • - iii C �_ .,.ta ...+E - - ..-... ... a-,,-i' ' . i, ce ° - b1,,N.t,:;E ST iiiCCC' I. 018-3017-0628 t`'1 t 1 icr.:.,', ( 018-3017.0E29 "o '"I'ill 1 �� 1'...._' '' e: - • 018.3017-0632 j. - k k 018-3017-0620 ° - Le"i F�,.arc 1' . , 018-3017.0622 ;"''' 018-',`i- ,�.-t 018-3017-0823 a ° -f _ =F . Pf[-5 nt;0624 • } ♦.� 3251 e, :5�• �l 7rr, ' . __ _ • _ -- View Looking East-Northeast from S. Main St, \ yt Q4 : �a a[> x r _ rFEr: ilia* I. 7, r .7‘/ ill `�Ni. '�`' "'� — � d * > + View Looking Northeast from S. Main St. and W. South St. (the apartments at 536 S. Main St. are in the foreground) 1 11 ,Itt n a Y PIP View Looking East-Southeast from S. Main St. and W. Monroe St. I -111 _ �y i 1-1 lid 1> ' e . i , ,;fit View Looking Southwest from W. Monroe St. 1 'r t ,?eV View Looking Northwest from W. South St. (the apartments at 536 S. Main St. are to the left) -, II r t i •1 14 , !,, z. =r,r a Current Interior Views s _. -- • • a l' , _ • • Y a` u _ 1 � ,--� -4" - y • 1\ , •1000°/.:1-. -.---..'-• fr. . , _ ; 4;4,, ) lawilor,, . , ,- •- • I a y a87 3� • 1 1 ,.- iv ai 1 . .z' , '7,7-71' n3'Ig; I .e Project Renderings (Exterior) Looking Northeast from S. Main St. 'lilt 11 1 L. , 0 - 1 , ,, L L , 0 l: ..o::..L..T.zt........„.....z...g:.„ :40:,..„_,.....„.....,..,..„.... ......:ys ,„4,......„........, ii, 111 -Nil SIN . ��r j/ )0/ Looking North (S. Main St. is on the left) I o ! I I ,C , L__ BAR PATIO LAYnu:' 00 —..—............ A 1 ALi iL , - F4 I. `\ \ •NOTE:LANDSCAPE AND 91E WORN SHOWN TOR \ INTENT ONLY DESIGN& DOCUMENTATION HT OTHERS Project Renderings (Interior) Level 01 I Reception, Lounge, Coworking Elit *0 _„ ,eii . 1 ■i�� it'll , _ f :. --.A--- ----- ihinIji 'r..... , - ' ' �- ✓ci yr:1U 4 ?- mk Aii \ o - ,,,,,o p - 1 k" . ' eo■ _ 0 Level 01 I Event Space r • ir - __ • ___,, &•Phil ,11 II � � � ` t d ' o Ill - ,_. \4104.,J100 4. • � ' 1- / y -. - Level 00 I Satellite Lounge, Game Room 0 , Iy 1y'� X tic LI, _ j} .., - - - - : , 't*:t':i'" , , , , .. .• A. - - .„--S1+7 Ili 1‘119"11° 111 ,i. 7.. r.....: 1,1_,:_ _ dil—: /, ''''k',,',4'-''''','''-'\:.','7`''''''.,.,,.;_,.x,,--.4\'.,1,,:,,..:: 7 .:1—.1.r:.,7.. lv