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RE: Tax Abatement for The Lebermuth Company, Inc. <br />August 21, 2013 <br />Page 2 <br />The Petitioner has just begun collecting information on potential suppliers and contractors for the <br />project. For this reason they were unable to answer the questions related to suppliers of construction <br />materials and construction contractors. They intend to submit this information prior to the Common <br />Council meeting to consider their confirming resolution. At that time final points will be awarded <br />and the length of the abatement term set. Based on current information, the Petitioner will score <br />sufficient points for a six -year term. If they score all of the points for construction they would have <br />enough for eight years. <br />Assuming a six -year abatement term is approved at the Confirming Resolution, the total taxes to be <br />abated during that term are estimated at $22,628. Total taxes to be paid during the six -year term are <br />estimated at $1,039,281. If the tennis eight years, total taxes to be abated are estimated at $29,056. <br />Total taxes to be maid over the eight -year term are estimated at $1,386,823. <br />EMPLOYMENT IMPACT <br />Per the petition, it is estimated that the project will not create any new, permanent full -time positions. <br />However, it will retain fifty -five (55) existing permanent full -time positions, including eight ( 8) <br />existing permanent full -time minority employees, with a total annual payroll of $3,000,000. <br />ABATEMENT QUALIFICATION <br />A review of the tax abatements previously granted finds that the petitioner has not been granted <br />any previous abatements. <br />2. The Building Commissioner has reviewed the petition and finds the property to be properly <br />zoned for the proposed project. <br />3. A review of the South Bend Redevelopment designation areas finds that the property is located <br />in the Airport Economic Area. <br />4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the <br />qualifications for up to an eight -year real property tax abatement under Section 2 -82, Industrial <br />Development in the City -wide District. <br />