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South Bend Common Council <br />RE: Tax Abatement for GTA Containers, Inc. (Foxtrot Realty Corp.} <br />July 15, 2008 <br />Page 2 <br />The new equipment to be installed on the site has a total estimated cost of $250,000 to $400,000. It <br />includes, without limitation, automated fabric cutting equipment and various machines for fabric seam <br />sealing using hot air and Radio Frequency (RF) technologies used in the manufacturing operation. <br />Equipment will also be purchased to transfer and handle raw materials and finished goods inventories. <br />GTA was recently offered two five-year contracts from the U.S. Army. They had been expecting only <br />one. With either one of the contracts they could have handled production in their current facility, but both <br />contracts together generate the need for additional space. One contract was executed on July 11, 2008. <br />The second contract arrived on July 14 and was executed today (July 15, 2008). Due to testing <br />requirements contained in the second contract, time is of the essence in completing construction of the <br />new building and installation of necessary equipment. <br />Total taxes to be abated during the (5) five-year abatement period are estimated at $5,725. Total taxes to <br />be paid during the (5) five-year abatement period are estimated at $81,228. <br />EMPLOYMENT IMPACT <br />Per the petition, it is estimated that the total project will create six to eleven (6 - 11) new, permanent, full- <br />time jobs within the first year representing a new annual payroll of $160,000 to $260,000. The project <br />will retain thirty-one (31) existing permanent, full-time jobs (of which 29 are minority employees) with an <br />annual payroll of $1,125,000. <br />ABATEMENT QUALIFICATION <br />1. A review of the tax abatements previously granted finds that the petitioner has been granted or <br />associated with four (4) previous tax abatements and it has applied for asix-year real property tax <br />abatement along with this application. <br />Term/Type <br />10-year real property <br />5-year personal property <br />6-year real property <br />5-year personal property <br />2. The Building Commissic <br />for the proposed project. <br />Resolution No. Date <br />3008-01 5/14/2001 (Foxtrot) <br />3009-01 5/14/2001 (GTA) <br />3173-03 3/24/2003 (Foxtrot) <br />3174-03 3/24/2003 (GTA) <br />ner has reviewed the petition and finds the property to be properly zoned <br />