Laserfiche WebLink
South Bend Redevelopment Commission <br />Regular Meeting - February 17, 1995 <br />6. NEW BUSEWSS (Cont.) <br />C. continued... <br />It is estimated that this project will create <br />between seven and ten new permanent full- <br />time jobs in the first year, representing an <br />annual payroll of approximately $151,000. <br />Although the petitioner is conservative in its <br />job creation estimates, they are hopeful that <br />as many as sixteen to twenty jobs will be <br />created within the next two years. <br />A review of the tax abatement application <br />shows that General Machine & Saw has not <br />been granted any previous tax abatement. <br />The property is properly zoned for the <br />proposed use. The property is not located <br />in an area presently designated as a Tax <br />Abatement Impact Area, but is located in <br />the Airport Economic Development Area <br />which is a tax incremental financing <br />allocation area. The project qualifies for <br />five years of personal property tax <br />abatement under the tax abatement <br />ordinance. <br />A review of the cost of the abatement shows <br />that, assuming an equipment cost of <br />$350,000 and a constant tax rate, the project <br />would generate approximately $33,641 in <br />new taxes without abatement. With <br />abatement, the project will generate <br />approximately $5,965 in new taxes. <br />Therefore, the cost of the abatement, over <br />the five year period, will be approximately <br />$27,676. <br />Mr. Beitzinger noted that this company is a <br />spin -off business of Eaton Corporation <br />CW -6- <br />