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South Bend Redevelopment Commission <br />Regular Meeting - February 17, 1995 <br />6. NEW BUSINESS (Cont.) <br />C. continued... <br />which is located in the Airport Industrial <br />Park. They have entered into a long term <br />contract to be the exclusive supplier of these <br />steel bars for the Eaton Corporation. To <br />save on delivery cost, General Machine & <br />Saw decided to locate in South Bend. <br />Mr. Faccenda noted that this is new <br />machinery to the State of Indiana, so that <br />any revenues generated will be entirely new <br />revenues. <br />Mr. Hojnacki asked about the impact of tax <br />abatement on local revenues. Mr. <br />Beitzinger responded that, in this case, there <br />are no taxes being paid in South Bend by <br />this business at the present time. The taxes <br />on the building and the land will remain the <br />same. General Machine & Saw will pay no <br />taxes on the machinery the first year and <br />gradually more until year five when they <br />will pay 50 % of the taxes on the machinery. <br />The sixth year they will pay full personal <br />property taxes. <br />Mrs. Kolata responded to the issue of tax <br />abatement's impact on the other <br />jurisdictions. Since the total amount of <br />taxes collected cannot rise by more than 5 % <br />each year, there is no less revenue for the <br />other jurisdictions. <br />Upon a motion by Mr. Hojnacki, seconded <br />by Mr. Hunt and unanimously carried, the <br />Commission approved Resolution No. 1321 <br />approving an application for personal <br />c -7- <br />COMMISSION APPROVED RESOLUTION <br />NO. 1321 APPROVING AN APPLICATION FOR <br />PERSONAL PROPERTY TAX DEDUCTION. <br />(GENERAL MACHINE & SAW COMPANY OF <br />INDIANA) <br />