Confirming Tax Abatement - McCormick & Company, Inc. 3425 W Lathrop Dr. (8 Yr. Real Property)

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South Bend Common Council RE: Tax Abatement for McCormick and Company January 10, 2011 Page 2 Based on an eight-year term the total estimated real property taxes to be abated on the revised project are $784,181. Total additional real property taxes to be paid as a result of the revised project during the eight-year abatement period are estimated at $868,820. For the equipment, the total estimated personal property taxes to be abated on the revised project during the personal property five-year abatement term are $10,073. Total additional personal property taxes to be paid as a result of the revised project during that same term are estimated at $103,084. Employment Impact: It is estimated that the total project will create five (5) new, permanent, full-time jobs within the first year of the project representing a new annual payroll of approximately $177,247. The project will retain one hundred twenty-three (123) existing permanent, full-time jobs (of which 30 are minority employees) with an annual payroll of $6,288,998. Abatement Qualification: A review of the Tax Abatement Ordinance No. 9394-03 finds that the Petitioner meets the qualifications fora (5) five-year personal property tax abatement under section 2- 84.2, Tangible Personal Property Tax Abatement. In addition, a review of that ordinance finds the Petitioner meets the qualifications for aneight-year (8) real property tax abatement under Section 2-82, Industrial Development, City-wide General Standards. Revised Statement of Benefit (SB-1) forms together with a letter of explanation from McCormick are attached. In addition, copies of the Public Benefit Points Summary used to calculate the real property abatement term and the estimated Real Property Tax Abatement Schedule and Personal Property Tax Abatement Schedule are attached. A representative of the firm will be available to meet with the Council's Community and Economic Development Committee at its afternoon meeting on Monday, January 24, 2011, and with the full council at its public meeting on that same date. Copies of the original staff reports and tax abatement petitions are available upon request. Should you or any of the other Council members have any questions concerning the report, or need additional information, please call me at 235-5835. Sincerely, .~ f Jri ~IYIe~~jil~fi~ Bob Mathia Assistant Director, Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks