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South Bend Common Council <br />RE: Tax Abatement for McCormick and Company <br />January 10, 2011 <br />Page 2 <br />Based on an eight-year term the total estimated real property taxes to be abated on the revised project <br />are $784,181. Total additional real property taxes to be paid as a result of the revised project during the <br />eight-year abatement period are estimated at $868,820. For the equipment, the total estimated personal <br />property taxes to be abated on the revised project during the personal properly five-year abatement term <br />are $10,073. Total additional personal property taxes to be paid as a result of the revised project during <br />that same term are estimated at $103,084. <br />Employment Impact: It is estimated that the total project will create five (5) new, permanent, full-time <br />jobs within the first year of the project representing a new annual payroll of approximately $177,247. <br />The project will retain one hundred twenty-three (123) existing permanent, full-time jobs (ofwhich 30 <br />are minority employees) with an annual payroll of $6,288,998. <br />Abatement Qualification: A review of the Tax Abatement Ordinance No. 9394-03 finds that the <br />Petitioner meets the qualifications fora (5) five-year personal property tax abatement under section 2- <br />84.2, Tangible Personal Property Tax Abatement. In addition, a review of that ordinance finds the <br />Petitioner meets the qualifications for aneight-year (8) real property tax abatement under Section 2-82, <br />Industrial Development, City-wide General Standards. <br />Revised Statement of Benefit (SB-1) forms together with a letter of explanation from McCormick are <br />attached. In addition, copies of the Public Benefit Points Summary used to calculate the real property <br />abatement term and the estimated Real Property Tax Abatement Schedule and Personal Property Tax <br />Abatement Schedule are attached. A representative of the firm will be available to meet with the <br />Council's Community and Economic Development Committee at its afternoon meeting on Monday, <br />January 24, 2011, and with the full council at its public meeting on that same date. <br />Copies of the original staff reports and tax abatement petitions are available upon request. <br />Should you or any of the other Council members have any questions concerning the report, or need <br />additional information, please call me at 235-5835. <br />Sincerely, <br />,,~~ f <br />`~n ~1NO~~~I~t~{v <br />Bob Mathia <br />Assistant Director, <br />Economic Development <br />Attachments <br />cc: South Bend Common Council Members <br />Mayor Stephen Luecke <br />Jeff Gibney <br />Don Inks <br />