Bill No. 16-61 Personal Property Designating Tax Abatement for AM General, LLC

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TO: FROM: SUBJECT DATE: AX ABATEMIENT REPOR7 SOUTH BEND COMMON COUNCIL AARON KOBB PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: AM General, LLC August 2, 2016 On Wednesday, August 3, 2016, a petition from AM General, LLC was received and subsequently filed with the City Clerk for personal property tax abatement consideration for property to be located at 5448 Dylan Drive, South Bend, IN 46628. Pursuant to Chapter 2, Article 6, Section 2 -84.2 of the Municipal Code of the City of South Bend, this 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 I.C.6 -1.1 -12.1 and whether all zoning requirements have been met. The Department of Community Investment has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY ➢ Purchase of approximately $1,100,000 of new equipment as part of their Service Parts Logistics Operations (SPLO). AM General, LLC will be relocating their SPLO operation to South Bend in an effort to become more efficient, reduce costs, and build a new Military Field Service & Training group that provides technical support and training to its customers. ➢ Estimated total taxes on new equipment over the five abatement period — $94,366 ➢ Estimated taxes abated on new equipment over the five abatement period — $43,483 ➢ Estimated taxes to be paid on new equipment over five year abatement period — $50,883 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will: ➢ Create 123 permanent, full -time jobs within the five year abatement period, representing a new estimated annual payroll of $9,307,459 PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES TIM CORCORAN PAMELA C. MEYER BRIAN PAWLOWSKI AARON KOBB