Confirming Tax Abatement - 3445 William Richardson Drive - Lake Michigan Mailer, Inc (Jade Elephant Holding, LLC)

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South Bend Common Council RE: Lake Michigan Mailers, Inc. (Jade Elephant Holding, LLC) February 7, 2008 Page 2 The new equipment to be installed on the site has a total estimated cost $1,216,873. It will be used for: mailpiece assembly; mailpiece bar - coding, sorting and preliminary distribution; data processing and management; and document creation and final assembly. The new equipment consists of various inserting, sorting and document management systems and data processing equipment. PLEASE NOTE: The petitioner has included a vehicle valued at $66,000 as part of their equipment list. It is unclear whether or not the vehicle is eligible for tax abatement. A final determination will be made at the time the petitioner submits their list of equipment to the assessor's office upon completion of the project If the vehicle is included total taxes to be abated during the (5) five -year abatement period are estimated at $74,138. Total taxes to be paid during the (5) five -year abatement period with the vehicle included are estimated at $38,580. If the vehicle is not included total taxes to be abated during the (5) five -year abatement period are estimated at $70,117. Total taxes to be paid during the (5) five -year abatement period without the vehicle are estimated at $36,488. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create five (5) new, permanent, full -time jobs and six (6) new, part-time, permanent jobs within the first year representing a new annual payroll of $250,000. The project is developing a completely new facility and, therefore, does not have any existing employees. 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 abatement. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax deduction 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 meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement.