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South Bend Redevelopment Commission <br />Regular Meeting —May 8, 2012 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatement <br />(1) continued... <br />project cost, the total taxes to be abated <br />during the five -year abatement period are <br />estimated at $215,239. Total new taxes to be <br />paid over five years are $1,898,562. <br />Combined existing and new taxes will be <br />$6,310,349 over the five years. <br />The project will create 20 new permanent full <br />time jobs within the first year with a new <br />annual payroll of $932,000. The project will <br />maintain 409 existing permanent full time <br />jobs representing an annual payroll of $20.5 <br />million. Federal Mogul has had many tax <br />abatements over the years, both real and <br />personal. They are current on all of the <br />required reporting. <br />Mr. Inks noted that the property is properly <br />zoned for the proposed project. The property <br />is located in the Airport Economic <br />Development Area; therefore, the petition <br />must be approved by the Redevelopment <br />Commission before going before the <br />Common Council. The project qualifies for <br />five years of personal property tax deduction <br />under the tax abatement ordinance. <br />Mr. Inks introduced representatives from <br />Federal - Mogul, Chuck O'Connor and Trent <br />Rock, for any questions. <br />Mr. Varner asked if this was an expansion or <br />a continuation on the re- investment. Mr. <br />Rock replied that it's as much an upgraded <br />capability as capacity as new technology and <br />engines evolve. The investment they are <br />6 <br />