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TAX ABATEMENT REPORT <br /> TO: South Bend Common Council <br /> FROM: Erik Glavich, Director, Growth and Opportunity <br /> SUBJECT: Industrial Development Real Property Tax Abatement Petition for GLC Portage <br /> Prairie, LLC <br /> DATE: June 7, 2023 <br /> On June 5, 2023, a petition for tax abatement from GLC Portage Prairie, LLC, was filed with the <br /> Office of the City Clerk. The petition seeks consideration for an industrial development real <br /> property tax abatement for an expansion project at 5448 Dylan Drive in South Bend. <br /> Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South <br /> Bend, the petition was referred to the Department of Community Investment for purposes of <br /> investigation and preparation of a report determining whether the area qualifies as an Economic <br /> Revitalization Area pursuant to Indiana Code 6 1.1-12.1 and all zoning requirements have been <br /> met. <br /> The Department of Community Investment has reviewed the petition, investigated the area, and <br /> makes the following report. <br /> Project Summary <br /> • To meet the requirements of its new contract for the manufacturing of the U.S. Army's <br /> Joint Light Tactical Vehicles and trailers, AM General must expand its facility in the <br /> Portage Prairie Business Park. <br /> • AM General leases the facility from GLC Portage Prairie, LLC, through a triple-net lease. <br /> All operating expenses, including real property taxes, are paid by AM General. <br /> • Total investment for the 167,000+ square foot expansion is $12 million. <br /> • AM General will receive all of the benefits of the proposed abatement. <br /> Employment Impact <br /> • AM General will retain 76 employees currently working at the facility. <br /> • By the end of 2024, AM General estimates it will hire an additional 15 full-time employes <br /> with an estimated total annual payroll of$600,000. <br /> Tax Estimates <br /> The petitioner qualifies for a nine-year (9) industrial development real property tax abatement. <br /> • Current estimated annual taxes: $271,667 <br /> • Estimated annual taxes after the project's completion: $598,038 <br />