Confirming Tax Abatement - Lock Joint Tube LLC and/or its affiliates 1217 S. Walnut Street (5 Yr. Real Property)

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Red in Cie � MAY U 12 JOHN VOO E CITY C_ ®- TH SENo, I� TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: LOCK JOINT TUBE, LLC, 1215 SOUTH WALNUT STREET DATE: May 14, 2012 On March 29, 2012, a petition for real property tax abatement consideration for property located at 1217 South Walnut Street was filed with the City Clerk by Attorney Richard Deahl, agent for Lock Joint Tube, LLC. The real property tax abatement petition describes new investment in two primary building projects. First, there will be the removal and reconstruction of a new and raised roof structure (raised from 15 feet to 40 feet) covering approximately 60,000 square feet of manufacturing space. Second, they will construct a new 30,000 square foot addition for additional manufacturing, storage, and shipping space. These real estate investments will cost between $1.0 million and $1.6 million. Please note that the contractor information was largely unknown at the time the designating resolution was approved. The information on the contractors is now available and based on the information attached they qualify for a five year real property tax abatement. Based on a project cost of $1.0 million with a five year term,.the taxes abated would be $40,871 based on the approved term. The taxes paid will be $281,511. Based on a project cost of $1.6 million with five year term, the taxes abated would be $82,397 and the taxes paid would be $329,364.