02-14-11 Council Agenda & Packet

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RE: Tax Abatement for Oliver Plow Partners, LP February 2, 2011 Page 2 project. For this reason they were unable to answer the questions related to suppliers of construction materials and construction. contractors. They intend to submit this information prior to the Common Council meeting to consider their confirming resolution. At that time final points will be awarded and the length of the abatement term set. Based on current information, the Petitioner will score sufficient points for a four year term. If they score all of the points for construction they would have enough for seven years. For purposes of consideration of the Declaratory Resolution we are estimating the term at eight years to allow for any extra adjustment. Anything less will result in a reduction in the amount of tax revenue abated. Assuming an eight year abatement term is approved at the Confirming Resolution, the total taxes to be abated during that term are estimated at $ 192,799. Total taxes to be aLid during the eight year term are estimated at $224,308. If the term remained at four years, total taxes to be abated are estimated. at $109,044. Total taxes to be paid over the four year term are estimated at $99,509. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create two (2) new, permanent full-time positions with total wages estimated at $65,000. It will retain ten (10) existing permanent full -time positions and one (1) existing part time position, including two (2) existing permanent full -time minority employees, with a total annual payroll of $419,958. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that neither the petitioner, Oliver Plow Partners, nor the proposed tenant, ABC Supply Company, has been granted or been associated with previous tax abatements. However, Holliday Properties, a major partner in Oliver Plow Partners has received previous tax abatements through various limited partnerships and limited liability corporations. 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 Area, which is a Tax Incremental Allocation Area; therefore, the petition for real 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 up to an eight year real property tax abatement under Section 2 -83.1, Warehouse Development in the Economic Development Target Areas, Urban Enterprise Zone and Redevelopment Blighted Areas.