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rA <br />South Bend Redevelopment Commission <br />Regular Meeting - December 16, 1994 <br />6. NEW BUSINESS (Cont.) <br />C. continued... <br />are greater than $4,000,000 and at least <br />20% of the units are available for <br />occupancy by low or moderate income <br />families. <br />South Bend Heritage feels that the <br />project should be considered for a ten - <br />year abatement because 1) 100 % of the <br />units will be rented to low income <br />families, far exceeding the 20% <br />requirement; 2) the $3,800,000 in hard <br />dollar costs is 95 % of the $4,000,000 <br />guideline and far exceeds the $1,000,000 <br />guideline set for a six-year abatement; <br />and 3) the project area is in a <br />residentially distressed area and is an <br />integral part of the neighborhood's larger <br />revitalization plan and the City's <br />redevelopment efforts in the <br />neighborhood. <br />A summary of the cost of a six-year <br />abatement shows that: without <br />abatement, the project will generate <br />approximately $1,131,883 in new taxes <br />over the six year period. With <br />abatement, the project will generate <br />approximately $467,845. Therefore, the <br />cost of the abatement over the six year <br />period will be approximately $664,038. <br />A summary of the cost of a ten -year <br />abatement shows that: without <br />abatement, the project will generate <br />approximately $1,886,472 in new taxes <br />over the ten year period. With <br />-14- <br />