Laserfiche WebLink
1200 CouNTY -CITY BUILDING <br />227 W. JEFFERSON BOULEVARD <br />SouT1-1 BEND, INDIANA 46601 -1834 <br />PHONE 574/ 235 -9371 <br />FAx 574/ 235-9021 <br />TDD 574/ 235 -5567 <br />CITY of Sou'm BEND S'T'EPHEN J. LuEcKE, MAYOR <br />COMMUNITY & ECONOMIC DEVELOPMENT" <br />JEFFREY V. GIBNEY <br />July 20, 2010 ExEcuTivE DIRECTOR <br />Council Member Timothy A. Rouse, Chairperson <br />Community & Economic Development Committee <br />South Bend Common Council <br />4th Floor, County City Building <br />South Bend, IN 46601 <br />RE: Commercial Real Property Tax Abatement Petition for: <br />PATTERSON LOGISTICS SERVICES, INCORPORATED <br />Dear Council Member Rouse: <br />On February 8, 2010, the Common Council approved Designating Resolutions for real property and <br />personal property tax abatements for the subject firm. The real property, located at 7055 Cleveland <br />Road, has an existing tax abatement that Patterson is assuming. At the time the Designating Resolutions <br />were considered the firm had not completed a list of construction contractors and suppliers for its <br />proposed project as called for in the real property petition forms. In approving the Designating <br />Resolution for real property it was noted that the firm would qualify for no more than an eight -year tax <br />abatement term. The firm agreed to provide the required information prior to the Council considering its <br />real property Confirming Resolution. Consideration of the Confirming Resolutions for both tax <br />abatements was held in abeyance pending receipt of the required information. The project entails the <br />remodeling of a 208,000 square foot building to add office space and to equip it as a distribution center. <br />Patterson has now completed the list of contractors and suppliers and submitted it to me. I have <br />reviewed the information and found that the firm qualifies for a seven -year real property tax abatement <br />term. Based on a seven -year term the total estimated taxes to be abated are $682,844. This includes <br />$238,530 for the proposed improvements and $444,314 for the existing tax abatement on the building. <br />Total additional taxes to be paid as a result of the project during the seven -year abatement period are <br />estimated at $1,504,949. This includes $282,852 for the improvements and $1,222,097 for the existing <br />tax abatement on the building. <br />At this point it must be noted that during the negotiations for the Memorandum of Agreement Patterson <br />reduced its compliance goals from what had been provided in their petitions. Specifically, the planned <br />capital expenditure for personal property was reduced from $9,000,000 to $7,000,000; the size of the <br />office construction was reduced from 10,000 square feet to 7,500 square feet and the number of new <br />permanent, full -time employees to be hired was reduced from 50 to 35. The Committee and the Council <br />may wish to review these changes with Patterson, <br />COMMUNITY D vE1.OPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM <br />PAN €ELA C. MEYER DONALD E. INKS MANAGEMENT <br />5741235 -9660 574/235 -9371 ELIZABETH LEONARD <br />FAx: 5741235 -9697 5741235 -9371 <br />