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CbL,,,South Bend Redevelopment Commission <br />Regular Meeting - November 20, 1992 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />projected cost of the project is $3.2 <br />million. <br />The project will create twenty -five (25) <br />construction jobs to build the <br />apartments. It will also create two (2) <br />permanent, full -time jobs and two (2) <br />part -time jobs the first year, <br />representing an annual payroll of <br />$55,000. <br />The property is properly zoned for the <br />proposed use. The property is located in <br />an Economic Development Target Area, a <br />Tax Abatement Impact Area, and a Tax <br />Incremental Financing Allocation Area. <br />The project qualifies for 6 years of real <br />property tax abatement under the Tax <br />Abatement Ordinance, but would like to be <br />considered for 10 years of abatement as a <br />special case. The justification for <br />requesting a ten -year abatement is as <br />follows: 1) 100W of the units will be <br />rented to low income families; 2) the <br />$3,200,000 project cost is 80* of the <br />$4,000,000 project cost requirement to <br />qualify for a ten -year abatement and well <br />above the $1,000,000 required for a <br />six -year abatement; and, 3) the project <br />is an integral part of the neighborhood's <br />efforts for revitalization. <br />Without abatement, the taxes on the <br />project would be approximately $1,508,704 <br />over the ten years. With abatement, the <br />taxes are estimated to be $761,896. <br />Therefore, the cost of the abatement is <br />approximately $746,808 over the ten year <br />period. <br />Mrs. Kolata asked if Mr. McCalley's <br />agreement for tax credits required him to <br />rent 100W of the units to low income <br />people instead of the usual 60 *. Mr. <br />McCalley responded that he was not <br />legally bound to rent all of the units to <br />-7- <br />