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South Bend Redevelopment Commission <br />Regular Meeting -May 2, 2008 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatements <br />(1) continued... <br />Mr. Mathia noted that Old Fort Building <br />Supply proposes to construct a 12,000 sft <br />storage warehouse with the addition of an <br />outside storage area for products specific to <br />Old Fort's business. The additional capacity <br />will enable the company to buy in larger <br />volume and remain competitive in the current <br />downturn of the construction industry. The <br />estimated dollar value of the project is <br />$325,000. <br />Old Fort Building Supply is a major supplier <br />of construction materials to the Michiana <br />area. Between 80% and 90% of the <br />company's sales are to professional <br />contractors and subcontractors. The main <br />product lines are brick, architectural block, <br />stone, landscaping pavers and wall, drywall, <br />steel studs, insulation, acoustical ceilings and <br />related products. <br />Mr. Mathia noted that Old Fort Building <br />Supply is located in the Urban Enterprise <br />Zone and may qualify for the Enterprise <br />Zone Investment deduction, a 10-year <br />deduction which covers 100% of assessed <br />value from new investment, but requires the <br />company to contribute 25% of the savings to <br />the Urban Enterprise Association. If the <br />company receives the LTEZ designation, the <br />tax abatement designation will become null <br />and void. <br />During the five-year abatement it is <br />estimated that $33,441 in taxes will be <br />abated. Total taxes to be paid during that <br />4 <br />