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CITY OF SOUTH BEND I OFFICE OF THE CLERK when all of this stuff can happen, is what we are looking at extending today. A lot of these are two (2) years, and we have some that are longer. January 1St is the effective date for the new assessed value of properties. The Assessor does not go around to every property on January, but whatever is thought to be the value on January 1't is what will be the assessment for that property for the year, and then it will be paid the next year. The CF-1 Forms are due on May 15th, we submit the Annual Tax Abatement report to the Common Council on June 15u', summarizing where every abatement is. In the July to September range,the recipients receive their reassessment from the Assessor's Office in a Form 11, which is set by statute. Mr. Mueller showed an example in the presentation. He stated, If we start the project in October, you've approved the tax abatement and the project commences. If they didn't face any delays, they've been able break ground before winter and the project is on schedule. Theoretically, by January 1St there is some new value on the property so there is a partial reassessed value. As the project continues throughout that year, you get to next year and whatever value had been added that year would be partially reassessed on January st the following year. This project would complete in April, months before the two (2) year designation period would end in October, but they won't receive full assessed value until the next January, and they wouldn't pay the taxes on that until the next year. So even if you're on time, you're oftentimes going to blow through this two (2) year designation period. Mr. Mueller referred to a slide explaining the new designation periods that are being proposed alongside when they were set to expire. He stated, Some projects ran into a delay, so they need an additional year. The two (2) "not completed"categories are the Imagineering Real and Personal Property tax abatements, and the second phase of Liberty Tower. As you see,the first phase of the Liberty Tower well exceeded the investment level projected for the entire project for both phases. Construction costs were higher, and there were challenges to working on a building this tall and having to get the right people to do that. They have met their investment level on that project and they're looking to work on the retail this fall, and get started on the apartments next year. That extra year of the designation period would help get these projects going. Mr. Mueller presented a slide with the status of each of the assessments, and when the Form 11 s were sent. He stated, If you see where the assessed values are, you can see that some of them are only partial and the values aren't very high. The assessed value of the Liberty Tower land is $1.5 million, it was $1.1 million. We just saw all of the money going into the building, so it is safe to assume the whole value hasn't been accounted for yet by the Assessor's Office. We included some of the policy goals and the reasons why tax abatements are beneficial incentives. Committee Chair Ferlic asked, Do you expect a longer lag, the bigger the project is? If there is more investment going into a project, it is going to take longer? Mr. Mueller answered, Yes,there is usually more complexity, so there is more that can go wrong. Committee Chair Ferlic asked, Can we go back to the wages? It looks like more than we anticipated. It's fifty percent(50%) greater than what we anticipated for salaries, is that just because of a tight labor market and the growing economy? EXCELLENCE ( ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building I227W.Jefferson BvldI South Bend,Indiana 46601Ip574.235.9221If574.235.9173ITTD574.235.5567 www.southbendin.gov 4