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South Bend Redevelopment Commission <br />ILRegular Meeting —July 18, 2003 <br />6. NEW BUSINESS <br />B. Tax Abatements <br />(1) continued... <br />The properties are located in the <br />Sample/Ewing Development Area, which is <br />a Tax Incremental Allocation Area; <br />therefore, the petition for real property tax <br />abatement must first be approved by the <br />South Bend Redevelopment Commission. <br />The petitioner meets the qualifications for a <br />five year residential tax abatement under the <br />tax abatement ordinance. <br />Mr. Beitzinger noted that the buyers of these <br />homes will save, using the current tax rates, <br />IL approximately $1,525 per year for five (5) <br />years, totaling just over 7,600. During that <br />same period we are estimating that the <br />buyers will pay approximately $650 per <br />year, so total taxes to be paid over five (5) <br />years by each of the owners of these homes <br />will be approximately $3,260. <br />Based on a total project cost of $663,000 <br />(which includes all six (6) homes) the cost <br />of the tax abatements are as follows: <br />7 <br />Estimated taxes <br />over five (5) years <br />Without abatement <br />$65,280.90 <br />With five (5) year <br />$19,559.10 <br />abatement <br />Estimated cost of <br />$45,722.10 <br />five (5) yr_abatement <br />7 <br />