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South Bend Commission Regular Mee �edevelopment ing - November 2, 1979 6. NEW BUSIINESS d. continued... Mr.l Robinson: If they own the whole thing can they get to abatement on just part of the parcel? Mr.l Nimtz: Yes. Mr. Ellison: What are the intentions relative to the balance of the parcel? Mr. Szarwark: The plans are to sell it to other companies interested in developing light industry on the spot. We ho re this will be a mini- industrial park, Maybe we can get two or three additional companies to come in and build th it factories there. It has potential for developing into a rather nice project. I think it will be in con - so ance with what you are generally doing with the area. It's a risk because it is a rather tough area of town and we haven't been able to sell any of the parcels up to this time. We hope that with the general redevelopment of this area and growing interest of developing industry in towns so the people don't have to use a lot of gas to get to and from their place of employment, there Will re renewed interest in this area. Mr. Robinson: How long a period of time is this tax abatement request for? Mr. Szarwark: According to statute, the tax abatement is for a ten year period. It will not affect the tax dUE to the physical land itself, but the increase in to due to improvements on the property will be abated 10C% for the first year, 95% for the second year, 80% foy the third year and down to 5% for the tenth year. Mr. Cira: What's the potential savings in ten years on tax abatement for that project? Mr. Szarwark: I don't know, it is difficult to tell because the tax abatement dollar amount can be depen- de t upon two things: (1) the eventual valuation of th building; and (2) the tax rate. I don't believe th tax rate has been set for the coming year. Ms. cui i n! Auburn: Refresh my memory, where are they located rently? Are they out by the airport? Are they ide the City Limit? Q