02-08-10 Council Agenda & Packet

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Community Economic Development. 1200 County -City Building, 2.27 West Jefferson, South Bend, Indiana 46601 -1830 _ Phone 5741235 -9371 Fax 5I4/75� yu�I To, From: Subject. Date, Timothy A. Rouse, Chairperson, Community and Economic and Development Committee Bob Mathia Addendum to Staff Report for Patterson Logistics Property Tax Abatement Petition February 2, 2010 This addendunh is being submitted to the staff report, dated January It: FE B 3 2010 CITY 'd ERK, SO, BEND, 'N. or he rea property tax abatement petition submitted by Patterson Logistics Services, Incorporated. That petition was also submitted on January 27, 2010. Based on faitlher discussion with the petitioner and review of the petition, it was determined that the petitioner, Patterson Logistics Services, n-my qualify for up to an eight year real property tax abatement. A firm determination on the number years cannot be made at this time because the co>hipany is still in the early stages of collecting inform-iation on potential construction suppliers and contractors. The delay is due to the project's size. They intend to sub>nit this infon-nation prior to the Con-ii-non Council meeting to consider their confining resolution. At that time final points will be awarded and the length of the abatement term set. Based on current information, the minimlahn term the company will qualify for is five years. It should also be noted that staff revised the computer progranhlspread sheet used to estimate taxes abated and taxes paid to account for an existing real property tax abatement that the petitioner intends to assume. In preparing the new estimates staff located an error in the revised program and corrected it. Based on the above, the revised tax abatement projections are as follows: Total taxes to be abated during a five -year abatement period are estimated at 5631,439. This includes $189,500 for the proposed improvements and $441,939 for the tax abatement on the existing building. Total additional taxes to be 12a1 0 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,' )55 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 8444,314 for the tax abatement oil the existing building. Total additional taxes to be paid as a result of the project during the eight -year abatement period are estimated at $1,795,150. This includes x334,994 for the improvements and S1,460,156 for the existing building. Mcnho.To.Increase.Terlhh.2.doc What We Do Today Makes A DfffereveQ !