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CITY OF SOUTH BEND OFFICE OF THE CLERK Bill No. 19-24- CBK Land Development Designating Real Property Tax Abatement Bill No. 19-26- Catalyst Three Designating Real Property Tax Abatement Bill No. 19-28- GLC Portage Prairie IV Designating Real Property Tax Abatement Bill No. 19-30- 31 Nimtz Land Designating Real Property Tax Abatement Dan Buckenmeyer, Director of Business Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building, stated, I'm here with an exciting afternoon. We have, as you are fully aware, several tax abatements. Seven (7) to be exact, that makes eight(8) for this year. We did only six (6) in the entirety of last year. You know, it is exciting though. Right now, we are looking at a room filled with folks who are investing over $60 million in our community. Most of it over the next year to eighteen (18) months. All of these projects, some of these we've been talking about for five (5) years, some of this stuff we've been talking about for five (5)months, or five(5) weeks maybe. But all of them are very meaningful in their own way to the community. Again, there's sometimes a tendency to say, oh my gosh, we're giving away. We're not giving away. Tax abatements are pure upside. The fact is that the current tax year value, and here are seven that we'll go through, but the current tax value on these, of the properties that we're talking about, is only $150,000 a year (referencing a slide in a presentation which is available in the City Clerk's Office). He continued, Our estimate, of course, and we always have to work in estimates, we don't know exactly what's going to happen in the Assessor's Office, but our estimates suggest that, when all of these roll off and when we have phased in all of the taxes, all of these projects, that yearly number on these same properties will look more like about$1.3 million annually. So, really mark improvements to the tax rolls. Again,current assessed value is$6.7 million. We're seeing over$60 million in investment. Add to that the one (1) other tax abatement we made, and the fact that one of our partners here that we're asking for support for in a personal tax abatement, also made a $5 million real property investment already that we are not abating,but, if we add that,we're looking closer to upwards of$70 million in investment for this time period. He went on, In terms of jobs, six hundred and six (606) jobs will be retained. One (1) very important deal will be the bulk of those and we'll talk about that as we go along. The other number I want to talk about for a second, and we'll get in to in more detail, sixty-two (62) new jobs,which feels pretty low, and we admit that up front. That's because we've got two (2) exciting projects that are spec buildings, so, we only look for this number as direct jobs. So, the person or entity getting the abatement is going to directly employ folks. In this case, we've got two (2) entities that will build buildings and lease them out, but, I'll get into that later, we've got a great track record on spec buildings and are thrilled to have more coming up in town. We often look at these, even though our abatements that we're going to look at, they're a couple of five(5) years, six(6), seven (7), eight(8)years,the longest is an eight(8) year abatement. In order to do our own computations and just look at them over a full landscape, we look out for a decade, and if you look out for that decade,the taxes paid during those ten(10) years, so,that is any increase as they phase in and then those last two (2) years, if you will, at full, will be $7 million added to the tax rolls, again, that would not have been there without these projects. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD 574.235.5567 www.southbendin.gov 2