4811-19 Confirming Real Property Tax Abatement for Five Corners, LLC

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Filed in Clerk's Oifice • APR 1'7 2023 MEMORANDUM OF AGREEM T DAWN M.JONES (REAL PROPERTY TAX ABATEM CLERK,SOUTH BEND,IN This Memorandum of Agreement (Agreement) dated as of October i', 2019, serves as confirmation of a commitment by Five Corners,LLC(the"Applicant"),pending an October 14'1',2019, 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 (Commitments). I. 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 seven(7)year real property tax abatement for the Applicant, based on the Applicant's commitment set forth in its Application. The Applicant commits to a capital expenditure of$4,300,000 associated with construction of a new mixed-use building. The property is located at 1 130 South Bend Ave, South Bend, IN 46617. This real property project will indirectly create eighty(80)full-time jobs with an estimated annual payroll of$4,992,000 within the next four years. 2. Potential Impact of State of Indiana Circuit Breaker Law: The parties note that the calculations regarding the effect of the tax abatement in question are based on the State of Indiana's tax rates currently in effect at the time of entering into this Memorandum of Agreement.The complete impact of the State of Indiana's Circuit Breaker law on the City's property tax revenues is unknown at this time. To assure that the City receives the projected amount of property tax revenues, which amount was calculated at the time of granting the tax abatement for the Applicant, the parties to this Memorandum of Agreement agree to adjust the length of the abatement and/or the percentage of deduction if the tax revenues due under the Circuit Breaker Law are less than what was initially projected and represented to the Common Council,as evidenced by the supporting documentation submitted to the Council with the Applicant's tax abatement petition. However, in no case will the adjustments cause the property taxes to be paid to exceed the tax payments as initially projected and represented to the Common Council by the aforementioned supporting documentation. 3. Applicant's Compliance with Cit 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 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 complied with the commitments contained in the Commitments at all times after the Commitment Date and during the duration of the abatement. The Applicant further agrees to provide the City with such additional information requested by the City related to the information provided in the Annual Suney and the CF-1 form within a reasonable time following any such additional request. 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 determines that the Applicant has not made reasonable efforts to substantially comply with 1I ;' .