08-15-08 New support sought for Innovation Park construction

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$2 million for operating costs and $2 million for capital expenditures for the technology park. The City expects to have serious conversations with the IEDC in the coming weeks on certification of the technology park and the grant assistance, according to Don Inks, director of economic development for the City. South Bend already has committed $1 million to the MIND site. In addition to having two sites, the City’s proposed certified technology park would be the first in Indiana affiliated with two research institutions: Notre Dame and the Indiana University School of Medicine at South Bend. The first building at Innovation Park will house a reception area, administrative space and a greenhouse incubator facility as well as space on the second and third floors for client/tenants to work to transform research into marketable enterprises. The building and equipment would be owned by the University and leased to Innovation Park. In petitions approved by the Redevelopment Commission, the University and Innovation Park sought: ? A special exception to enable a 10-year property tax abatement for Phase 1 of the project. Assuming a total cost of $15 million and a 10-year abatement, Innovation Park would pay an estimated $2,726,286 in taxes during the period, while $1,871,533 in taxes would be abated. ? A 5-year personal property tax abatement on no less than $500,000 in new equipment to be purchased for Innovation Park’s first phase. Taxes abated during the first five years would total an estimated $19,550 with taxes paid of $15,763. Innovation Park’s first phase is projected to create 17 to 23 permanent, full-time jobs and one part-time job during its first year of operation with an annual payroll of $1.15 million to $1.45 million. There are no projections at this time for the number of jobs anticipated to grow out of the project as start-up enterprises are transplanted to other sites. The property, now valued at $210,000, is estimated to have an assessed value of $51 million after improvements. Tax abatements are not an elimination of taxes, but a phase-in of the new taxes on new investment over a defined period. All abatements require final approval from the South Bend Common Council. - 30 -