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South Bend Redevelopment Commission <br /> Regular Meeting—April 10, 2012 <br /> 6. NEW BUSINESS (CONT.) <br /> A. Tax Abatement <br /> (1) continued... <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 /> 4 <br />