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South Bend Redevelopment Commission <br />Regular Meeting - July 15, 1994 <br />6. NEW BUSINESS (Cont.) <br />d. continued... <br />not located in a tax abatement impact area, <br />but is located in the Airport Economic <br />Development Area, a tax incremental <br />financing allocation area. The project <br />qualifies for three years of real property tax <br />abatement and five years of personal <br />property tax abatement under the tax <br />abatement ordinance. <br />Assuming a project cost of $250,000 and a <br />constant tax rate, the new construction <br />would generate approximately $37,160 in <br />new taxes over the three year period without <br />abatement. With abatement, the new <br />construction will generate approximately <br />$12,510. Therefore, the cost of the real <br />property abatement will be approximately <br />$24,649 over the three year period. <br />Assuming new equipment costs of $250,000 <br />and a constant tax rate, the new equipment <br />will generate approximately $24,030 in new <br />taxes over the five year period, without <br />abatement. With abatement, the new <br />equipment will generate approximately <br />$4,261 in new taxes. Therefore, the cost of <br />the personal property tax abatement will be <br />approximately $19,769 over the five year <br />period. <br />Mr. Herendeen, representing Jim and Linda <br />Teske, owners of Apollo Precision <br />Machining, noted that Apollo had a <br />desperate need to expand and was unable to <br />do so at their current location on Western <br />-13- <br />