Confirming Tax Abatement - 2629 Foundation Drive - Value Production, Inc.

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South Bend Common Council RE: Value Production, Inc. October 17, 2006 Page 2 EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create (5) five new, permanent, full-time jobs in the first year of production representing a new annual payroll of $200,000. The project will also maintain (14) fourteen existing, permanent, full-time jobs representing an annual payroll of $475,000. ABATEMENT QUALIFICATION 1. 2. A review of the tax abatements previously granted finds that the petitioner has been associated with (2) two previous tax abatements. Term/Type 5-year personal property 5-year personal property Resolution No. 3305-04 2955-00 Date February 23, 2004 December 18, 2000 The most recent CF-1 dated 9/5/06 shows the company is in compliance with their projected costs of the project; however, the company showed a decrease in the actual number of employees retained (a loss of 2 employees) while proj ections were to acquire an additional (4) four employees and increase the estimated salaries by $150,000. The proj ections were not met in these categories. 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 Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal 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 fora (5) five-year personal property tax abatement under section 2-84.2, Tangible Personal Property Tax Abatement.