12-13-10 Council Agenda & Packet

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South Bend Common Council RE: Tax Abatement for G.H.S. Corporation d/b/a GHS Strings November 30, 2010 Page 2 At a cost amount of $600,000 total taxes to be abated during the (5) five -year abatement period are estimated at $26,096. Total taxes to be paid during the (5) five -year abatement period are estimated at $23,746. At a cost of $1,000,000 total taxes to be abated during the (5) five -year abatement period are estimated at $43,494. Total taxes to be paid during the (5) five -year abatement period are estimated at $39,577. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create at least fifteen (15) new, permanent, full - time jobs in the first year of production representing a new annual payroll of at least $350,000. Because the project is new to South Bend there are no existing jobs. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has not been granted or been associated with any previous tax abatements. 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 personal property tax deduction 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 meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement.