Confirming Tax Abatement - 7055 Cleveland Rd. Patterson Logistics Services Inc.,(5yrspp)

Home Browse Search

RE: Tax Abatement for Patterson Logistics Services, Inc. (Consolidated) February 8, 2010 Page 2 The logistical equipment to be purchased includes racking, conveying equipment, server equipment, cabling and security equipment. The cost of the equipment is anticipated to be up to $9,000,000. The project's total cost is estimated at up to $19,500,000 which includes purchase of the existing building. The Petitioner is in the early stages of the construction contracting process. Therefore, it does not have a firm list of construction contractors and suppliers. Based on current information it is estimated that the applicant will qualify for afive-year abatement. The length of this period could increase depending on the final selection of contractors and suppliers. However, it is not expected to exceed eight years. Total taxes to be abated during afive-year abatement period for the real property portion of the project are estimated at $631,439. This includes $189,500 for the proposed improvements and $441,939 for the tax abatement on the existing building. Total additional real property taxes to be paid as a result of the project during afive-year abatement period are estimated at $931,271. This includes $182,916 for the improvements and $748,355 for the existing building. Total taxes to be abated during an eight-year abatement period for the real property are estimated at $705,185. This includes $260,871 for the proposed improvements and $444,314 for the tax abatement on the existing building. Total additional real property taxes to be paid as a result of the project during an eight-year abatement period are estimated at $1,795,150. This includes $334,994 for the improvements and $1,460,156 for the existing building. Total taxes to be abated during the (5) five-year abatement period for the personal property portion of the project are estimated at $391,446. Total additional taxes to be paid during the five-year abatement period for personal property as a result of the project are estimated at $356,189. EMPLOYMENT IMPACT Per the petitions, it is estimated that the project will create fifty (50) new, permanent full-time positions with an annual payroll $1,040,000. The project will also maintain sixty (60) existing permanent full-time positions, including 20 existing permanent full-time minority employees, with a total annual payroll of $1,620,000. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the Petitioner, Patterson Logistics Services, Inc., has not been granted or associated with any previous tax abatements. 2. The Building Commissioner has reviewed the petitions and finds the property to be properly zoned for the proposed project.