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South Bend Redevelopment Commission <br />Regular Meeting - October 16, 1992 <br />6. NEW BUSINESS (Cont.) <br />h. continued... <br />168,000 square foot facility on 22.5 <br />acres of land located at 4300 Quality <br />Drive. This facility will provide <br />additional U.S. capacity, close to major <br />markets. The total cost of new <br />construction is $4,500,000. The total <br />estimated cost of new equipment is <br />$1,500,000. The project will create two <br />hundred fifty (250) new permanent <br />full -time jobs in the first year, <br />representing an annual payroll of <br />$6,000,000. <br />The property is properly zoned for the <br />proposed use. The property is not <br />located in an area presently designated <br />as a Tax Abatement Impact Area by the <br />South Bend Common Council. The property <br />is located in the Airport Economic <br />Development Area and in a Tax Incremental <br />Financing Allocation Area. The project <br />qualifies for five years of personal <br />property tax abatement and 10 years of <br />real property tax abatement under the Tax <br />Abatement Ordinance. The petitioner has <br />not applied for a previous tax abatement. <br />Without abatement, the personal property <br />taxes on this project are estimated to be <br />approximately $136,843. With abatement <br />the taxes are estimated to be $24,265. <br />Therefore the cost of the personal <br />property tax abatement is expected to be <br />approximately $112,578 over the five year <br />period. <br />Without abatement, the real property <br />taxes on this project are estimated to be <br />approximately $2,116,125 over the ten <br />year period. With abatement, the taxes <br />are estimated to be $1,068,643. <br />Therefore the cost of the real property <br />tax abatement is expected to be <br />approximately $1,047,482 over the ten <br />.. .; ^ year period. <br />Mr. McMahon noted that Accuride expects <br />to break ground this fall and hopes to <br />-7- <br />