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South Bend Redevelopment Commission <br />Regular Meeting - June 4, 1993 <br />6. NEW BUSINESS (Cont.) <br />m. continued... <br />(41,000 square feet) would exceed the <br />amount required for a ten year abatement. <br />Mr. Kastens was present to answer <br />questions concerning the application. He <br />noted that the new jobs to be created are <br />mostly in the engineering portion of their <br />business. They are requesting special <br />consideration for a ten -year abatement <br />based on the fact that if renovated square <br />footage could be counted toward the total <br />square feet of a project, the total would <br />exceed the required amount for a ten -year <br />abatement. <br />Mr. Beitzinger presented the cost schedule <br />for a ten and a six year abatement. Based <br />on an estimated project cost of <br />$1,400,000, and a tax rate of 14.3955 % <br />the project would generate approximately <br />$403,074 without abatement. With a six- <br />year abatement, the taxes are estimated to <br />be approximately $166,604. Therefore the <br />cost of a six-year abatement would be <br />approximately $236,470. With at ten -year <br />abatement, the taxes are estimated to be <br />approximately $339,254. Therefore the <br />cost of a ten -year abatement would be <br />approximately $332,436. <br />Mr. Donoho disclosed that his employer, <br />Koontz Wagner Electric, may be working <br />with Capitol Technologies on this project, <br />but that he, himself, is not working with <br />them. Ms. Manier did not feel that this <br />relationship constituted a conflict of <br />interest. <br />-5- <br />