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5-Year Abatement June 16,2023
<br /> Peak Investment and Asset Management LLC
<br /> South Bend Portage Township
<br /> Commerical Development Real Property Tax Abatement Schedule"
<br /> Type of Property: Retail Establishment
<br /> Estimated Project Cost: $ 1,400,000 New Construction
<br /> Property Address: 1405 Portage Avenue
<br /> Tax Key Number: 71-03-35-360-020,000-026
<br /> Without
<br /> Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5
<br /> Assessed Value(AV)
<br /> Land $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000
<br /> Structure(AV=80%Project Cost) 41,500 1,120,000 1,120,000 1,120,000 1,120,000 1,120,000 1,120,000
<br /> Gross Assessed Value 81,500 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000
<br /> Abatement 100% 90% 80% 70% 60%
<br /> Abatement Deduction - (1,078,500) (970,650) (862,800) (754,950) (647,100)
<br /> Net Assessed Value 81,500 1,160,000 81,500 189,350 297,200 405,050 512,900
<br /> Property Taxes
<br /> Assume constant tax rate of 5.2897%
<br /> Gross Tax(Tax Rate x Net AV) 4,311 61,361 4,311 10,016 15,721 21,426 27,131
<br /> Local Tax Credit(8.7112%of GT-DS) (347) (4,941) (347) (807) (1,266) (1,725) (2,185)
<br /> Circuit Breaker Credit (1,193) (16,983) - - - - -
<br /> Taxes Due $ 2,771 $ 39,437 $ 3,964 $ 9,209 $ 14,455 $ 19,701 $ 24,946
<br /> 3% 3% 3% 3% 3% 3% 3%
<br /> Circuit Breaker Cap 2,445 34,800 34,800 34,800 34,800 34,800 34,800
<br /> Debt Service(0.3997%of Net AV) 326 4,637 326 757 1,188 1,619 2,050
<br /> Max Tax Under the Cap 2,771 39,437 35,126 35,557 35,988 36,419 36,850
<br /> Combined
<br /> Year Abatement Current Taxes New Net Taxes
<br /> Current& Taxes Abated
<br /> Due Projected Tax New Taxes Paid
<br /> 1 100% $ 2,771 $ 36,666 $ 39,437 $ (35,473) $ 3,964
<br /> 2 90% 2,771 36,666 39,437 (30,227) 9,209
<br /> 3 80% 2,771 36,666 39,437 (24,982) 14,455 •
<br /> 4 70% 2,771 36,666 39,437 (19,736) 19,701
<br /> 5 60% 2,771 36,666 39,437 (14,490) 24,946
<br /> Total: 13,854 183,329 197,183 (124,908) 72,275
<br /> *This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023. = Department of Community Investment
<br /> The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. '' • City of South Bend
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