Confirming Tax Abatement - Hoosier Tank 1710 North Sheridan St. (5 Yr. Personal Property)

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South Bend Common Council RE: Tax Abatement for Hoosier Tank and Manufacturing, Inc. April 18, 2011 Page 2 As part of the total project, the Petitioner is submitting a request for a seven-year real property tax abatement for the addition to be constructed for their building. The project's total cost is estimated at $1,935,000. The project will move the company's truck dock to a better location that will eliminate a major traffic obstruction due to trucks using the street for turning and backing up to the current dock for deliveries. This is something the City has been working with Hoosier Tank to alleviate for approximately two years. Total taxes to be abated during the (5) five-year abatement period are estimated at $15,607. Total additional taxes to be paid as a result of the project during the five-year abatement period are estimated at $82,001. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create fifteen (15) new, permanent full-time positions with an annual payroll $600,000. The project will also maintain seventy-two (72) existing permanent full-time positions, including 22 existing permanent full-time minority employees, with a total annual payroll of$3,000,000. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted the following previous abatements: Term/Type Resolution No. Date 5 year personal property 2013-93 2/22/1993 5 year personal property 3213-03 7/28/2003 10 year real property 3234-03 8/25/2003 5 year personal property 3843-OS (Reconfirm & Inc.) 6/27/2005 5 year personal property 4008-10 1/11/2010 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 a (5) five-year personal property tax abatement under section 2-84.2, Tangible Personal Property Tax Abatement.