Confirming Tax Abatement - 4201 Linden Avenue - Foxtrot Realty Corporation

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pUTH ~ Vu` ~ ~~ y ~\ R°'/ Community & Economic Development ~~~a 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 • Phone 574/235-9371 • Fax 574/235-9021 To: Derek Dieter, Chairperson, Community and Economic and Development Committee From: Bob Mathia ~-,~ Subject: Foxtrot Realty Corporation (GTA Containers, Incorporated)' Date: July 24, 2008 A substitute declaratory resolution is being submitted for the real property tax abatement submitted by Foxtrot Realty Corporation (GTA Containers, Incorporated) on July 9, 2008. After filing their petitions for tax abatement, Foxtrot Realty (GTA Containers), submitted additional information for calculating the number of Public Benefit Points used to determine the length of Foxtrot's real property tax abatement term. Foxtrot is the real estate holding company for GTA Containers. The additional information contains: (a) Foxtrot's/GTA's commitment to provide targeted hiring preference for residents of Census Tracts that have the highest unemployment or highest percentage of low and moderate income individuals; (b) a description on how they will work to fulfill this commitment; and (c) a census of their current employees. The petitioners also provided an explanation on the source for the metal building to be constructed in their project and notified us that Boswell Drywall was being replaced by the prime contractor, Majority Builders. Boswell was the only construction company on the project to use independent contractors as employees rather than direct hire workers (See Question # 23 in Foxtrot's tax abatement petition.). Majority uses only direct hire employees. The Department of Community and Economic Development has reviewed the additional information submitted and found that the petitioner, Foxtrot Realty, qualifies for a one year increase in the term of its proposed real property tax abatement from six (6) years to seven (7) years. With this increase the total taxes to be abated during the (7) seven-year real property abatement period are estimated at $213,032. Total taxes to be ,paid during the (7) seven-year abatement period are estimated at $851,108. The additional information provided by Foxtrot Realty/GTA Containers is attached along with a revised Public Benefits Points Summary table and a revised spreadsheet showing the tax abatement calculations for seven years. Please call me at 235-5835 if you have any questions. cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks Memo.To.Increase.Term.7.24.08 What We Do Today Makes A Difference !