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South Bend Redevelopment Commission <br />Regular Meeting - October 20, 2000 <br />6. NEW BUSINESS (CONT.) <br />d. Commission approval requested for <br />Resolution No. 1801 approving an application <br />for real property tax deduction for property <br />located at 3751 Olive Road in the Airport <br />Economic Development Area. (Gibbs Wire & <br />Steel Company, Inc.) <br />Ms. Moran reported that the petitioner intends to <br />build a 167,000 sq. ft. distribution facility on <br />approximately 15 acres. She noted that the <br />project cost is approximately $5.5 million and it <br />is estimated that the project will create 3 to 5 <br />new, permanent full -time jobs within the first <br />year and will maintain 38 existing permanent <br />full -time jobs for an annual payroll of <br />$1,700,000. <br />The petitioner has not been granted any previous <br />tax abatements and the property is properly <br />zoned for the proposed use. The property is <br />located in the Airport Economic Development <br />Area which is a Tax Incremental Allocation <br />Area. The project qualifies for a 10 -year real <br />property tax abatement under the Tax Abatement <br />Ordinance. <br />Without abatement, the taxes on the $5.5 million <br />project would be approximately $2,731,471. <br />With a ten -year abatement, the taxes paid would <br />be approximately $1,379,393. Therefore, the <br />cost of the abatement is approximately <br />$1,352,078 over the ten -year abatement. <br />Upon a motion by Ms. Jones, seconded by <br />Mr. Caldwell and unanimously carried, the <br />Commission approved Resolution No. 1801 <br />approving an application for real property tax <br />deduction for property located at 3751 Olive <br />Road in the Airport Economic Development <br />Area. (Gibbs Wire & Steel Company, Inc.) <br />-7- <br />