Laserfiche WebLink
South Bend Redevelopment Commission <br />Special Meeting -January 3, 201 1 <br />6. NEW BUSINESS (CONT.) <br />A. Tax Abatement <br />(1) continued... <br />Ms. Hahn noted that SBG Realty, LLC <br />intends to construct a 50,000 square foot <br />manufacturing facility which will be leased <br />to South Bend Gear. South Bend Gear is a <br />joint venture between Schafer Gear Works, <br />Inc. and Somaschini North America, Inc. <br />formed in order to supply timing gears for <br />Detroit Diesel Corporation, a subsidiary of <br />Daimler Corporation. The estimated cost of <br />the building is $2,100,000. In subsequent <br />phases, the size of the building may be <br />doubled. <br />Assuming a project cost of $2,100,000 and <br />an eight-year abatement term, the total taxes <br />to be abated during that term are estimated at <br />$233,063. Total taxes to be paid during the <br />eight-year term are estimated at $267,464. <br />It is estimated that the project will create 12 <br />new, permanent full-time positions in year <br />one, growing to an expected 26 positions by <br />year two. The new annual payroll in year <br />one will be $605,000 growing to an expected <br />payroll of $1,300,000 by year two. <br />Ms. Hahn noted that SBG Realty has two <br />previous real property tax abatements. Both <br />are in compliance with reporting <br />requirements. The property is properly <br />zoned for the proposed use. The property is <br />located in the Airport Economic Area, which <br />is a Tax Incremental Allocation Area; <br />therefore, the petition for real property tax <br />deduction must first be approved by the <br />South Bend Redevelopment Commission. <br />4 <br />