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South Bend Redevelopment Commission <br />Rescheduled Regular Meeting - March 31, 1994 <br />6. NEW BUSINESS (Cont.) <br />j. continued... <br />property is not located in an area presently <br />designated as a Tax Abatement Impact Area <br />by the South Bend Common Council. It is, <br />however, located in the Airport Economic <br />Development Area. The petitioner qualifies <br />for ten years of real property tax abatement <br />and five years of personal property tax <br />abatement under the tax abatement resolution. <br />The cost of the abatements is as follows: <br />Assuming a constant tax rate and a project <br />cost of $700,000, the amount of real property <br />taxes without abatement is expected to be <br />approximately $346,822. With abatement, <br />JVN the amount of real property taxes is expected <br />to be approximately $175,145. Therefore the <br />cost of the real property tax abatement will <br />be approximately $171,677 over the ten year <br />period. <br />Assuming equipment costs of $250,000 and a <br />constant tax rate, the amount of personal <br />property taxes,without abatement, is expected <br />to be approximately $24,030. With <br />abatement, the personal property taxes are <br />expected to be approximately $4,261. <br />Therefore, the amount of personal property <br />taxes to be abated over the five year period <br />will be approximately $19,769. <br />Mr. Dunville noted that by the end of year <br />two of the abatement, the project will have <br />generated fifteen times the taxes the land <br />currently generates. Also, the jobs that will <br />be created with this project are union scale <br />jobs with full health and pension benefits. <br />W <br />