07-28-08 Council Meeting Agenda & Packet

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South Bend Common Council RE: Foxtrot Realty Corporation (GTA Containers, Inc.) July 15, 2008 Page 2 GTA was recently offered two five-year contracts from the U.S. Army. They had been expecting only one. With either one of the contracts they could have handled production in their current facility, but both contracts together generate the need for additional space. One contract was executed on July 11, 2008. The second contract arrived on July 14 and was executed today (July 15, 2008). Due to testing requirements contained in the second contract, time is of the essence in completing construction of the new building and installation of necessary equipment. Total taxes to be abated during the (6) six-year abatement period are estimated at $187,187. Total taxes to be ~d during the (6) six-year abatement period are estimated at $713,709. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create six to eleven (6 - 11) new, permanent, full-time jobs within the first year representing a new annual payroll of $160,000 to $260,000. The project will retain thirty-one (31) existing permanent, full-time jobs (of which 29 are minority employees) with an annual payroll of $1,125,000. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the petitioner has been granted or associated with four (4) previous tax abatements and it has applied for afive-year personal property tax abatement along with this application. Term/Tyne Resolution No. Date 10-year real property 3008-01 5/14/2001 (Foxtrot) 5-year personal property 3009-01 5/14/2001 (GTA) 6-year real property 3173-03 3/24/2003 (Foxtrot) 5-year personal property 3174-03 3/24/2003 (GTA) 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 Tax Abatement Ordinance No. 9394-03 finds that the petitioner does meet the qualifications for asix-year (6) real property tax abatement under Section 2-82, Industrial Development, City-wide General Standards.