Confirming Tax Abatement - Demby Enterprises LLC 212-220 W. Ewing Ave. (7 Year Real Property)

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RE: Tax Abatement for Demby Enterprises, LLC November 14, 2013 Page 2 The petitioner intends to install new state -of -the -art mechanical and refrigeration equipment to return the building to its use as a cold warehouse storage and distribution facility. The equipment is substantial in nature and actually becomes part of the building much like a fixture. For this reason this application is being processed as a real property abatement rather than a personal property abatement. Precedent has been set for this process. In a similar situation for another food manufacturer, a real property abatement was granted for their refrigeration coolers which were also more like fixtures to the real estate. Additionally electrical service will be enhanced and upgraded. Building fagade and truck docks will be remodeled for business purposes as well as beautification. The cost of the project will be $1,858,024. The project is necessary for economic growth because in its absence Plumrose would relocate operations outside of our area and eliminate employment. Additionally, without the project the property is likely to become vacant and remain in disrepair. Assuming a seven -year abatement term, the total taxes to be abated during that term are estimated at $161,040. Total taxes to be uaid during the seven -year tern are estimated at $297506. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create two new, permanent full -time positions over two years. They will retain twenty -three (23) existing permanent full -time positions, with a total annual payroll of $66,935. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the petitioner has not been granted any previous abatements. 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 Sample Ewing Development Area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for up to a seven -year real property tax abatement under Section 2 -83 -1, Warehouse Development in the City -wide District.