Laserfiche WebLink
South Bend Redevelopment Commission <br />Regular Meeting -July 21, 2006 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatements <br />continued... <br />The project will invest between $2.2 and $3.2 <br />million in the purchase and installation of <br />new manufacturing equipment including, <br />without limitation, milling and fabricating <br />equipment for use in Lock Joint Tube's <br />Walnut Street facility. This equipment will <br />increase the efficiency and accuracy of <br />precision milling and fabrication, as well as <br />reduce the scrap steel in the company's <br />operations. Investment in this new <br />equipment will support the company's ability <br />to cut and fabricate heavier gauge steel with <br />more precision, thereby enhancing the <br />company's position within a competitive <br />market. Total taxes abated during the five- <br />year abatement period range from $134,451 <br />to $195,565, depending on the ultimate <br />equipment cost. <br />Additionally, Lock Joint Tube is located in <br />the Urban Enterprise Zone and may qualify <br />for the Enterprise Zone Investment <br />deduction. This is a new,10-year deduction <br />which covers 100% of assessed value from <br />new investment, but requires the company to <br />contribute 25% of savings to the Urban <br />Enterprise Association. The department <br />recommends that, should the company <br />receive the UEZ designation, the Tax <br />Abatement designation shall become null and <br />void. <br />It is not expected that the equipment <br />purchase will create any new jobs; however, <br />it will maintain forty-two existing, permanent <br />10 <br />