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South Bend Redevelopment Commission <br />Regular Meeting - November 18, 1994 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />personal property tax abatement under <br />the Tax Abatement Ordinance. <br />A review of the cost of the real property <br />tax abatement shows that, with a project <br />cost of $1,800,000 and a constant tax <br />rate, the taxes on the new construction <br />would be approximately $891,828 <br />without abatement. With abatement, the <br />taxes would be approximately $450,373. <br />therefore, the cost of the real property <br />abatement would be approximately <br />$441,455 over the ten year period. <br />A review of the cost of the personal <br />property tax abatement shows that, with <br />an estimated equipment cost of <br />$2,100,000 and a constant tax rate, the <br />taxes to be abated would be <br />approximately $201,851. With <br />abatement, the taxes paid will be <br />approximately $35,792. Therefore, the <br />cost of the personal property tax <br />abatement would be approximately <br />$166,059 over the five year period. <br />Mr. Beitzinger noted that when Eaton <br />Corporation received its tax abatement in <br />1992, they employed approximately 50 <br />people and expected to add about 20 jobs <br />with the expansion at that time. They <br />now employ 86 people. <br />-5- <br />