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1200 Cows -Cm BUILDING <br />227 W. JEFFERSON BoumARD <br />SOUTH BFND, INDLwA 46601 -1830 <br />February 4, 2011 <br />PHONE 5741235 -9371 <br />Fax 5741235 -9021 <br />CITY OF So TTH BEND STEPHEN J. LUECKF, MAYOR <br />CommuNiTr & ECONOMiC DEVELOPMENT <br />.JEFFREY V. GIBNEY <br />ExEcuTin DIRECTOR <br />Council Member Timothy A. Rouse, Chairperson <br />Community & Economic Development Committee <br />South Bend Common Council <br />4th Floor, County City Building <br />South Bend, IN 46601 <br />RE: Personal Property Tax Abatement Designation Increase for: <br />McCormick & Company, Incorporated <br />Dear Council Member Rouse: <br />Please find attached a letter from Ms. Deidre Cassidy, Director of State and Local Tax for <br />McCormick & Company, Incorporated. The letter contains a request for an increase in the amount <br />of the company's five year personal property tax abatement granted by the Common Council through <br />resolution #4076 -1 Ion January 24, 2011. The original amount requested, as amended, was <br />$1,362,173. They are planning to move an existing brand of products from a co- packer to a company <br />owned facility. The estimated cost in equipment to set up the new operation is $6,774,426. They are <br />considering their South Bend facility for this move. As a result, they are asking that the amount of <br />their personal property abatement by increased by $6,744,426 to a new total of $8,136,599. The <br />abatement's Economic Revitalization Area designation has an expiration date of July 25, 2012, <br />which allows time for the move to be carried out. <br />With this increase the total taxes abated and paid will increase from $10,073 and $103,084 <br />respectively to $125, 205 and $550,707. It should also be noted that the company had planned to <br />increase employment by five positions under its abatement as currently approved. However, it has <br />already increased total employment by 10 positions to a new total of 133 jobs and total wages have <br />gone from $6,288,988 to $6,718,833 for an increase of $429,845 (the projected increase was <br />$177,247). With the proposed move the company would add an additional 14 positions and increase <br />wages by another $483,101. <br />The request requires a reconfirming resolution from the South Bend Common Council. In addition <br />to Ms. Cassidy's letter, I have attached a copy of a revised Statement of Benefits (Form SB -1) and a <br />COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINaNc1.A.1. & PROGRAM <br />PAMELA C. MEYER DoKALD E. INKS MANAGEMENT <br />574!235 -9660 574/235 -9371 ELLZABVfH LEONARD <br />FAX: 5741235 -9469 5741235 -9371 <br />