04-20-01 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting - April 20, 2001 6. NEW BUSINESS (CONT.) d. continued... Ms. Moran reported that Solvay Automotive Plastics & Systems, Inc. is a custom injection molder for the automotive industry. Their project calls for the purchase and installation of new manufacturing equipment. This equipment will be used to manufacture nylon air intake manifolds for General Motors and Daimler Chrysler. The total estimated cost of the equipment is $18 million. The petitioner estimates that the project will create thirty new permanent jobs within the first year, representing a new annual payroll of $820,000 and will maintain 95 existing permanent full -time jobs with an annual payroll of $3,342,000. The petitioner has been granted two previous tax abatements in 1991 and 1993. The property is properly zoned and is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five -year tax abatement. Without abatement, the taxes on the $18,000,000 project would be approximately $1,862,823. With a five -year abatement, the taxes will be approximately $637,585. Therefore, the cost of the abatement will be approximately $1,225,238 over the five -year period. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1835 approving an application for personal property tax deduction for property located in the Airport Economic Development Area. (Solvay Automotive Plastics & Systems, Inc.) E6 COMMISSION APPROVED RESOLUTION NO. 1835 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (SOLVAY AUTOMOTIVE PLASTICS & SYSTEMS, INC.)