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f � your[t • <br />cf< d iirtilf <br />C®mmunitY & Economic Development <br />1200 County -City Building, 227 West Jefferson, South Bend, Indiana 4660 1 -1 830 Phone 574/235 -9371 _ Fox 5741235 -9021 <br />To: Timothy A. Rouse, Chairperson, Community and Economic and <br />Development Committee <br />From: Bob Mathia 4-17-7 <br />Subject: Addendum to Staff Report for Patterson Logistics Services, Inc, Real <br />Property Tax Abatement Petition <br />Date: February 2, 2010 <br />This addendum is being submitted to the staff report, dated January 27, 2010, for the real property <br />tax abatement petition submitted by Patterson Logistics Services, Incorporated. That petition was <br />also submitted on January 27, 2010. Based on further discussion with the petitioner and review of <br />the petition, it was determined that the petitioner, Patterson Logistics Services, may qualify for up to <br />an eight year real property tax abatement. A firm determination on the number years cannot be made <br />at this time because the company is still in the early stages of collecting information on potential <br />construction suppliers and contractors. The delay is due to the project's size. They intend to submit <br />this information prior to the Common Council meeting to consider their confirming resolution. At <br />that time final points will be awarded and the length of the abatement term set. Based on current <br />information, the minimum term the company will qualify for is five years. <br />It should also be noted that staff revised the computer program /spread sheet used to estimate taxes <br />abated and taxes paid to account for an existing real property tax abatement that the petitioner <br />intends to assume. In preparing the new estimates staff located an error in the revised program and <br />corrected it. <br />Based on the above, the revised tax abatement projections are as follows: Total, taxes to be abated <br />during a five -year abatement period are estimated at $631,439. This includes $189,500 for the <br />proposed improvements and $441,939 for the tax abatement on the existing building. Total <br />additional taxes to be paid as a result of the project during the five -year abatement period are <br />estimated at $931,271. This includes $182,916 for the improvements and $748,355 for the existing <br />building. Total taxes to be abated during an eight -year abatement period are estimated at $705,185. <br />This includes $260,871 for the proposed improvements and $444,314 for the tax abatement on the <br />existing building. Total additional taxes to be paid as a result of the project during the eight -year <br />abatement period are estimated at $1,795,150. This includes $334,994 for the improvements and <br />$1,460,156 for the existing building. <br />Memo.To.Increase.Term.2.doc WhO WO 00 TOd4Y Makes A Diftrence 1 <br />