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®CITY OF SOUTH BEND I OFFICE OF THE CLERK ($705) a year in tax revenue. Post investment, and again these are just estimates, but we anticipate it will generate an anticipated $312,000 in tax revenue. Digging into that a little bit more for you, this is a nine(9)year phase in. Year one (1)is one hundred percent(100%) and then every two (2) years it goes to ninety percent(90%), eighty percent (80%), seventy percent (70%) and then sixty percent(60%)abated.It is a phased in property tax abatement.If this project didn't exist,we would be looking, at the end of that nine (9)years, of having collected only $6,345 in tax revenue on this parcel. With this project, we will see over$1 million in tax revenue collected in the nine (9)years of abatement. Then, again, we anticipate around$312,000 in tax revenue a year beyond that. He went on,The only great piece of news on that is that it is $14 million of private investment and there are no TIF dollars going toward this project. We will be revenue positive in year two (2). This is a really great opportunity to save one hundred and eight (108) jobs and keep a great company in town. We will come back to talk about a personal property tax abatement at some point but right now the real property tax abatement will generate about $1.5 million in taxes over the nine (9) years and will have abated about $1.7 million. Troy Adams,Director of Real Estate for NFI with offices located at 1515 Burnt Mill Road, Cherry Hill,New Jersey, stated, On behalf of NFI, we appreciate the opportunity to come and present to everyone here. We are excited. We've been in the City of South Bend for about four (4) years. After a long exhaustive search we ended up in a building off of Sample Street that was not the ideal situation for us. We distribute food out of this building. We share a wall with a company that builds RVs. Food and RV parts don't really go well together. The reason we are standing here today is that, what was a painful process for the first (1St) two (2) years, has now turned out to be extraordinarily well. That is all based on the labor that we have. About a year ago when we started to look at our needs in the upper Midwest, our transportation group did some analysis. Really, when it comes to transportation costs, the I-69 corridor south put us in a more central part of the State and allowed us to get north, south, east and west better than South Bend did. Despite the transportation costs being significantly less to do that, when we looked at the one hundred (100) plus people we currently employ here, about half of those are warehouse personnel and the other half are truck drivers. In an economy that is less than three percent (3%) unemployment, we thought it would be crazy to pick up and move. To make that math work, we need to build a good building that is cost effective and that is why we are here today. He went on, With that little intro, let me give you a quick summary of NFI the company. It is privately held and has been owned by the same family since it started in 1932. It is a great story. It started out with one (1) truck in Vineland,New Jersey. Most people may know Vineland, New Jersey to be home to Progresso Soup and a lot of other foods. We have always been in the food business. It started out with one (1) truck and the current generation of ownership, it was their grandfather's truck. He started the business. The company now does global logistics and they employ over 10,000 people across the US and Canada.We occupied and operate about 47.5 million square feet of space with 4,000 trucks and 9,000 trailers. To zero in on our South Bend operation, in the lower left hand corner (referencing a slide in a presentation which is available in the City Clerk's Office) is where our building currently is on the corner of Sample and Olive Street. We are at about 156,000 square feet there. Mr. Buckenmeyer interjected, They are co-located with Lippert,just so we are all aware. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.91731 TM 574.235.5567 I www.southbendin.gov 2