12-14-09 Common Council Meeting Agenda & Packet

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South Bend Common Council RE: Tax Abatement for Hoosier Tank and Manufacturing, Incorporated November 24, 2009 Page 2 bracket dies and a powder coating system. The equipment coming from the competitor is used and all of it will come from outside the State of Indiana. The powder coat system is new. The total estimated cost of the equipment is $950,000. Total taxes to be abated during the (5) five -year abatement period are estimated at $17,243. Total additional taxes to be paid as a result of the project during the five -year abatement period are estimated at $48,141. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create six to ten (6 — 10) new, permanent full -time positions with an annual payroll of $200,000 to $335,000. The project will also maintain fifty -two (52) existing permanent full -time positions with a total annual payroll of $1,800,000, ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted the following previous abatements: Terra/ Resolution No. Date 5 year personal property 2013 -93 2/22/1993 5 year personal property 3213 -03 7/28/2003 10 year real property 3234 -03 8/25/2003 5 year personal property 3843 -05 (Reconfirm & Inc.) 612712005 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. 4. A review of the Tax Abatement Ordinance No, 9394 -03 finds that the petitioner meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement.