Laserfiche WebLink
South Bend Redevelopment Commission <br />Regular Meeting -February 5, 2010 <br />6. NEW BUSINESS (CONT.) <br />A. Tax Abatement <br />(1) continued... <br />The existing building has aseven-year tax <br />abatement that Patterson intends to assume. <br />Patterson is also requesting up to an eight- <br />year tax abatement for the improvements <br />they will be making. The cost of the <br />construction is estimated to be $2,500,000. <br />The logistical equipment that will be <br />purchased includes racking, conveying <br />equipment, server equipment, cabeling, and <br />security equipment. The cost of the <br />equipment is estimated to be $9,000,000. <br />Total cost of the project is estimated at <br />$19,500,000, which includes purchase of the <br />existing building. <br />Patterson Logistics is in the early stages of <br />contracting for the work, so it does not have <br />a firm list of contractors and suppliers. <br />Based on current information, it is estimated <br />that Patterson could qualify for at least a <br />five-year tax abatement. However, the term <br />could be increased to as much as eight years, <br />based on additional points for construction <br />contractors and suppliers. <br />These are the cost/benefit estimates for both <br />a five-year and an eight-year abatement. <br />Total taxes to be abated during afive-year <br />abatement are estimated at $631,439. Total <br />taxes to be paid during afive-year abatement <br />are estimated at $931,271. Those figures <br />include the assumed abatement. <br />Total taxes to be abated during an eight-year <br />abatement are estimated at $705,185. Total <br />additional taxes to be paid are estimated at <br />4 <br />