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Department of
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Community Investment
1865
Memorandum
December 12, 2013
TO: South Bend Redevelopment Commission
FROM: David Relos, Economic Resources (�'
SUBJECT: Professional Services Proposal - Crowe Horwath TIF Neutralization
This professional services proposal from Crowe Horwath is to provide services for the annual
TIF Neutralization worksheets required by state law.
These worksheet calculations are done for each TIF area, and are used to adjust the base
value by adjusting for natural growth in property values.
For example, if the base value of a TIF was originally $1,000,000, and the area had natural
appreciation of 3 %, or $30,000, this amount would become part of the increment captured,
unless the base is adjusted.
After adjustment, this $30,000 would be added to the base, which would now be
$1,030,000, allowing other taxing jurisdictions to maintain their tax base by capturing the
natural appreciation of property. Increment captured by the TIF area should be a result of
new development, not the natural appreciation in property values that pre- existed the TIF.
Staff requests approval of this professional services agreement in an amount of $15,000
plus actual incidental expenses, which is the same cost as the past two years. Incidental
expenses have historically been very small, if any at all.
227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDI
Crowe Horwath.
Crowe Horwath LLP
Independent Member Crowe Horwath International
10 West Market Street, Suite 2000
Indianapolis, Indiana 46204 -2975
Tel 317.632.1100
Fax 317.635.6127
www.crowehorwath.com
November 18, 2013
PROJECT ASSIGNMENT
City of South Bend, Indiana
This document is a Project Assignment based on an agreement entered into between the City of
South Bend — Department of Community Investment Office ( "DCI Office ") and Crowe Horwath
LLP ( "Crowe ") dated February 3, 2010.
The title of this Project Assignment is: City of South Bend (the "City ") Tax
Increment Financing (TIF) Neutralization
Worksheets
The scope of financial advisory services provided by Crowe may include the following:
TIF Neutralization Worksheet (the "Worksheet ")
1. Collect TIF Data from the St. Joseph County Auditor's Office (the "Auditor's Office ").
2. Prepare the TIF Worksheet for each Allocation Area located within the City.
3. File the TIF Worksheet and all other necessary documents with the Auditor's Office.
Professional fees for the scope of services outlined above will not exceed $15,000 and this fee
will not be exceeded without the written permission of the DCI Office. Services requested which
are outside the scope of services listed herein will be described and quoted separately.
Incidental expenses are usually paid by Crowe and billed to the client at cost. These expenses
generally include, but are not limited to, communication, printing, binding and travel expenses
incurred on behalf of the client.
Invoices that are not paid within 30 days of receipt are subject to a monthly interest charge of
one percent (1.0 %) per month or the highest interest rate allowed by law, whichever is less,
which we may elect to waive at our sole discretion, plus costs of collection including reasonable
attorneys' fees.
Project Assignment (Continued)
City of South Bend Department of Community Investment Office
November 18, 2013
Page 2
In the event the DCI Office approves the engagement of Crowe for this assignment, please sign,
date and return the enclosed copy of this letter to us.
Respectfully submitted,
Ifs
John R. Skomp
Agreed and Accepted:
CITY OF SOUTH BEND — DEPARTMENT OF COMMUNITY INVESTMENT OFFICE
Date:
Crowe Horvath LLP is an independent member of Crowe Horvath International, a Swiss verein. Each member firm of Crowe
Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable
for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically
disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other member of Crowe
Horwath International. Crowe Horvath International does not render any professional services and does not have an ownership or
partnership interest in Crowe Horwath LLP. Crowe Horwath International and its other member firms are not responsible or liable for
any acts or omissions of Crowe Horvath LLP and specifically disclaim any and all responsibility or liability for acts or omissions of
Crowe Horwath LLP.