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South Bend Redevelopment Commission <br />Regular Meeting —April 10, 2012 <br />and light duty trucks. Tire Rack intends to <br />construct a 36,000 sq. ft. building which will <br />enable the expansion of technological <br />resources and assets to further the growth and <br />development of its e- commerce product <br />distribution business. The estimated dollar <br />value of the project, excluding land, is <br />$6,500,000. Information about the <br />construction contractors is not yet known, but <br />will be available prior to the date set for <br />granting the confirming resolution. Based on <br />the information provided, staff believes Tire <br />Rack will qualify for a three- to five -year real <br />property tax abatement. Based on a <br />$6,500,000 project cost, the total taxes to be <br />abated during a five -year abatement period <br />would be $496,345. Taxes to be paid during <br />that period are $471,939. Total taxes to be <br />abated during a three -year abatement are <br />estimated at $342,052 with total taxes to be <br />paid during a three -year abatement is <br />estimated at $238,918. <br />It is estimated that the total project will <br />create at least 30 new jobs with a new annual <br />payroll of at least $1,600,000. The project <br />will maintain 396 existing full -time jobs with <br />an annual payroll of $26,500,000. <br />Mr. Davis expressed concern about <br />approving the tax abatement before all the <br />information is known. Even with complete <br />information, companies often renege on their <br />commitments. <br />Mr. Varner agreed that not meeting <br />commitments is a problem, but explained the <br />matrix of criteria with which abatement <br />terms are evaluated. Complete information is <br />required by the time the confirming <br />resolution is approved by the Common <br />Council; the term of abatement will be set at <br />4 <br />