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South Bend Redevelopment Commission <br />Regular Meeting - March 17, 1995 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />The petitioner has not been granted any <br />previous tax abatement consideration. The <br />property is properly zoned for the proposed <br />use. The property is not located in an area <br />presently designated as a 'Pax Abatement <br />Impact Area but is located in the Airport <br />Economic Development Area which is a lzax <br />Incremental Financing Allocation Area. <br />Therefore, the petitions for real and <br />personal property tax abatement first require <br />the approval of the South Bend <br />Redevelopment Commission. A review of <br />the tax abatement ordinance finds that the <br />petitioner meets the qualifications for a six <br />(6) year real property tax abatement and <br />meets the qualifications for a five (5) year <br />personal property abatement. <br />A review of the cost of the real property tax <br />abatement shows that, assuming a project <br />cost of $550,000 and a constant tax rate, the <br />amount of taxes to be generated without <br />abatement will be approximately $163,502 <br />over the 6 year period. With abatement, the <br />taxes will be approximately $67,581 over <br />the 6 year period. Therefore, the cost of <br />the real property tax abatement will be <br />approximately $95,921. <br />A review of the cost of the personal <br />property tax abatement shows that, assuming <br />a project cost of $135,000 and a constant <br />tax rate, the amount of taxes to be generated <br />without abatement will be approximately <br />$12,975 over the 5 year period. With <br />abatement, the taxes will be approximately <br />c <br />