05-12-08 Council Meeting Agenda & Packet

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South Bend Common Council RE: 1 S` Source Land Trust # 13 (Robert F. Jagger) :April 23, 2008 Page 2 Additionally, Old Fort Building Supply is located in the Urban Enterprise Zone and may qualify for the Enterprise Zone Investment deduction. This is a 10-year deduction which covers 100% of assessed value from new investment, but requires the company to contribute 25% of savings to the Urban Enterprise Association. The department recommends that should the company receive the UEZ designation, the Tax Abatement designation shall become null and void. "total taxes to be abated during the (5) five-year abatement period are estimated at $33,441, Total .taxes to be paid during the (5) fcve-year abatement period are estimated at $22,294. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create two (2) new, permanent, full-time jobs representing a new annual payroll of $62,000. The project will also retain twenty (20) existing, permanent, full-time jobs and one (1) existing, permanent, part-time job representing an annual payroll of $950,000. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has been granted or associated with one (1) previous tax abatement. Term/Type Resolution No. Date 3-year real property 3642-06 9/25/2006 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. 4. A review of the South Bend Urban Enterprise Zone finds that the property is located in the Urban Enterprise Zone Area; therefore, it is recommended that should the company receive the UEZ designation, the Tax Abatement designation shall become null and void. The Company may not receive an economic revitalization area deduction if it receives an enterprise zone investment deduction under I.C. 6-1.1-45 for the same property.