02-08-10 Council Agenda & Packet

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RE: Tax Abatement for Patterson Logistics Services, Inc. January 27, 2010 Page 2 made to an existing building the Petitioner intends to purchase. The project's total cost is estimated at up to $19,500,000 which includes purchase of the existing building. That building has an existing seven - year real property tax abatement which the Petitioner intends to assume. Total taxes to be abated during the (5) five -year abatement period for the equipment are estimated at $391,446. Total additional taxes to be paid as a result of the project during the five -year abatement period are estimated at $356,189 for the equipment. 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 QUALIFICATION 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 real property tax abatement. 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 Area, which is a Tax Increimntal Allocation Area; therefore, the petition for personal property tax deduction mast 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.