04-14-08 Council Meeting Agenda & Packet

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South Bend Common Council RE: Heraeus Kulzer, Incorporated) March 20, 2008 Page 2 Council meeting to consider their confirming resolution. At that time final points will be awarded and the length of the abatement term set. Based on current information, the company will score sufficient points for afour-year term. If they score all of the points for construction they would have enough for seven years. For purposes of consideration of the Declaratory Resolution we are estimating the term at eight years to allow for any extra adjustment. Anything less will result in a reduction in the amount of tax revenue abated. Assuming aneight -year abatement term is approved at the Confirming Resolution, the total taxes to be abated during that term are estimated at $277,908. Total taxes. to be >l aid during the eight-year. term are estimated at $213,964. For comparison purposes, if the term remained at four years total taxes to be abated are estimated at $153,710. Total taxes to be paid over the four-year term are estimated at $92,226. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create thirty-five (35) new, permanent, full- time jobs representing a new annual payroll of $2,922,953. The project will also retain sixty-one (61) existing, permanent, full-time jobs representing an annual payroll of $3,211,500. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has not been granted or.associated with any previous tax abatements: 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the South Side Development Area, which~is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. 4. A review'of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner can meet the qualifications for up to an eight-year (8) real property tax abatement under Section 2-82, Industrial Development, City-wide General Standards.