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South Bend Redevelopment Commission <br />Special Meeting - June 24, 1993 <br />5. OLD BUSINESS (Cont.) <br />a. continued... <br />three machining lines. The construction will <br />be identical to the existing building which is a <br />single story steel frame with masonry and steel <br />walls. It is estimated that the expansion will <br />allow AE Piston to increase sales by 78%. <br />The total estimated cost of the new building is <br />$4,210,000 and the estimated cost of the new <br />equipment is $2,900,000. <br />The project will create a total of one hundred <br />and fifty -six (156) new permanent, full-time <br />jobs, representing a total annual payroll of <br />$4,470,000. The project will also maintain <br />two hundred and sixteen (216) existing full - <br />time (and no part time) jobs representing an <br />annual payroll of $4,210,000. <br />AE Piston was granted a ten year real property <br />and a five year personal property tax <br />abatement on May 13, 1986. The property is <br />properly zoned for the proposed use. The <br />property is not located in a Tax Abatement <br />Impact Area, but is located in a Tax <br />Incremental Financing Allocation Area. The <br />project qualifies for five years of personal <br />property tax abatement and for 10 years of <br />real property tax abatement under the Tax <br />Abatement Ordinance. <br />Without abatement, the taxes on the personal <br />property would be approximately $269,965. <br />With abatement, the taxes are estimated to be <br />approximately $47,870. Therefore, the cost of <br />the personal property tax abatement over the <br />five years would be approximately $222,095. <br />-5- <br />