6A(1) Resolution No. 2645 - Laserfiche WebLink

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RE: Tax Abatement for Patterson Logistics Services, Inc. January 27, 2010 Page 2 purchase of the existing building. The Petitioner is in the early stages of the construction contracting process. Therefore, it does not have a firm list of contractors. Based on current information it is estimated that the applicant will qualify for afive-year abatement. The length of this period could increase depending on the final selection of the contractors. However, it is not expected to exceed eight years. Total taxes to be abated during afive-year abatement period are estimated at $631,439. This includes $189,500 for the proposed improvements and $441,939 for the tax abatement on the existing building. Total additional taxes to be laid as a result of the project during the five-year abatement period are estimated at $931,271. This includes $182,916 for the improvements and $748,355 for the existing building. Total taxes to be abated during an eight-year abatement period are estimated at $705,185. This includes $260,871 for the proposed improvements and $444,314 for the tax abatement on the existing building. Total additional taxes to be aid as a result of the project during the eight-year abatement period are estimated at $1,795,150. This includes $334,994 for the improvements and $1,460,156 for the existing building. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create fifty (50) new, permanent full-time positions with an annual payroll $1,040,000. The project will also maintain sixty (60) existing permanent full-time positions, including 20 existing permanent full-time minority employees, with a total annual payroll of $1,620,000. ABATEMENT pUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner, Patterson Logistics Services, Inc., has not been granted or associated with any previous tax abatements. However, at this time they are also petitioning for a personal property tax abatement. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Area, which is a Tax Incremental Allocation Area; therefore, the petition for real 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 up to an eight-year real property tax abatement under Section 2-79, Warehouse Development in the City-wide District.