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Redevelopment Commission Meeting <br />Regular Meeting — September 3, 2004 <br />6. NEW BUSINESS (CONT.) <br />A. Tax Abatements <br />(1) continued... <br />Mr. Beitzinger also noted that Steel <br />Warehouse has paid over one million dollars <br />in real property taxes the last five years and <br />over two million dollars of personal property <br />taxes during the same period. <br />Mr. Beitzinger reviewed the cost of the <br />personal property abatement: using the lower <br />estimate of machinery cost, $2,200,000, the <br />abatement will save the company $120,000 <br />over five years. They'll still pay over <br />$62,000 in additional taxes for the new <br />equipment during that five -year period. <br />Ms. Jones asked whether the same equipment <br />will be installed at both locations and <br />whether the personal property tax abatement <br />impacts revenue if it's not in a TIF area. Mr. <br />Beitzinger indicated that different equipment <br />would be installed at each location. TIF does <br />not capture tax revenue from personal <br />property, so there is no impact at all. <br />However, state law requires that personal <br />property abatements also be approved by the <br />Commission. <br />Mr. Hunt congratulated Mr. Lerman on the <br />company's success and growth, evidenced by <br />the many tax abatements over the last 20 <br />years. <br />Mr. Lerman noted that the equipment to be <br />purchased will allow Steel Warehouse to <br />assume additional processes over what they <br />presently do. Years ago they purchased <br />machinery to mill cold steel which makes the <br />C. <br />6 <br />