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RE: Tax Abatement for Demby Enterprises, LLC <br /> November 14, 2013 <br /> Page 2 <br /> The petitioner intends to install new state-of-the-art mechanical and refrigeration equipment to <br /> return the building to its use as a cold warehouse storage and distribution facility. The equipment <br /> is substantial in nature and actually becomes part of the building much like a fixture. For this <br /> reason this application is being processed as a real property abatement rather than a personal <br /> property abatement. Precedent has been set for this process. In a similar situation for another <br /> food manufacturer, a real property abatement was granted for their refrigeration coolers which <br /> were also more like fixtures to the real estate. Additionally electrical service will be enhanced <br /> and upgraded. Building fapade and truck docks will be remodeled for business purposes as well <br /> as beautification. The cost of the project will be $1,858,024. <br /> The project is necessary for economic growth because in its absence Plumrose would relocate <br /> operations outside of our area and eliminate employment. Additionally, without the project the <br /> property is likely to become vacant and remain in disrepair. <br /> Assuming a seven-year abatement term ,the total taxes to be abated during that tenn are estimated at <br /> $161,040. Total taxes to be paid during the seven-year tern are estimated at 5297506. <br /> EMPLOYMENT IMPACT <br /> Per the petition, it is estimated that the project will create two new, permanent full-time positions <br /> over two years. They will retain twenty-threc (2 1) existing permanent full-time positions, with a <br /> total annual payroll of$66,935. <br /> ABATEMENT QUALIFICATION <br /> 1. 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 Sample Ewing Development Area. <br /> 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the <br /> qualifications for up to a seven-year real property tax abatement under Section 2-83-1, <br /> Warehouse Development in the City-wide District. <br />