5A(1) Resolution No. 2676 - Laserfiche WebLink

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South Bend Redevelopment Commission RE: Tax Abatement for McCormick and Company, Inc. July 2, 2010 Page 2 The Petitioner is in the early stages of its decision making process. Therefore, it does not have a firm list of construction contractors. Based on current information it is estimated that the applicant will qualify for asix-year abatement term. The length of this term could increase depending on the final selection of the contractors. However, it is not expected to exceed nine years. For the realproperty portion of the project, total taxes to be abated during asix-year abatement period are estimated at $509,442. Total additional taxes to be aid as a result of the project during the six-year abatement period are estimated at $544,383. Total taxes to be abated during anine-year abatement period are estimated at $713,262. Total additional taxes to be >~ as a result- of the project during the nine-year abatement period are estimated at $867,476. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create five (5) new, permanent, full-time j obs within the first year of the prof ect representing a new annual payroll of approximately $177,247. The project will retain one hundred twenty-three (123) existing permanent, full-time jobs (of which 30 are minority employees) with an annual payroll of $6,288,998. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner has been granted or been associated with one (1) previous tax abatement as shown below. In addition, at this time the firm is also petitioning for a personal property tax abatement. Term/Tune .Resolution No. 5-year personal property 3598-06 Date 6/12/2006 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 Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement 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 does meet the qualifications for up to anine-year (9) real property tax abatement under Section 2-82, Industrial Development, City-wide General Standards.