Confirming Tax Abatement - 4201 Linden Avenue - GTA Containers, INC

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