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South Bend edevelopment Commission <br />Regular Mee ing - February 20, 1981 <br />6. NEW BUSINESS <br />a. continued... <br />Mr. McMahon: Previously the State Statute allowed <br />five years. The Legislature a year ago changed it <br />to en years, and since then everything submitted <br />is subject to that ten -year abatement process. I <br />think the five -year abatement ran through 1979 and <br />the first part of 1980. <br />Mr.lNimtz: Mr. Phair, the Chair recognizes you. <br />Mr. Phair: My name is John Phair and my associate <br />is harles Clark. We are both partners in the <br />Col mbia Plaza Associates, who will be the owner <br />and builder of this project. I will only talk for <br />a minute because Pat has summarized what I was <br />goi g to say. <br />This is a picture of the building Cofie Associates <br />pre ared, and I have a final set of working draw- <br />ings if anyone would be interested in seeing those. <br />We vould like to begin construction on or about the <br />first of March. It is about a $1,900,000 project, <br />a 2 ,000 sq. ft. building on two floors. We expect <br />it vill create approximately 60 new jobs with an <br />annual payroll in the neighborhood of $900,000. <br />Of the $1,900,000, approximately `1,650,000 would be <br />spe t in the local economy for labor, material and <br />building supplies. Just to add a couple of things <br />rel ted to Block 6, I think the tax abatement has <br />beer a very crucial determinate in the feasibility <br />Of Each building down there, including the Karl King <br />Tow rand all buildings have been granted a tax <br />abatement. Our own experience with the River Glen <br />Office Park, which is adjacent to our proposed <br />building, in spite of the fact that we do have tax <br />abatement we still have the highest rentals in town <br />and are forced to do that because of current costs. <br />Wit out tax abatement the net rental area in the <br />building you see here would be leased at a_minumum <br />of 113.05 a square foot. You can recognize that <br />this is well above market conditions, and at this <br />lev 1 it is our position that the project would <br />not be feasible and, consequently, would not be <br />built at this time. I might also add that all of <br />the public or quasi- public facilities, that is <br />str ets, walks, sewers, water, street lights, etc., <br />all will be paid for by us and installed by us with <br />our own money. <br />7 <br />