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RE: Tax Abatement Noble Americas South Bend Ethanol LLC <br />December 6, 2013 <br />Page 2 <br />South Bend Common Council <br />From 2013 through 2015 the company plans to spend $11 M on new building construction, $9 M on <br />existing building improvements, $2 M on new machinery and equipment, and $875,000 on IT equipment <br />and software. They have plans for investment going out five years. Because the designation given by the <br />designating resolution only extends out for two years they will need to reapply for abatement at the end of <br />those two years for the next two years. The overall cost over 5 years will be $36,175,000. <br />Total taxes to be abated during the (5) five -year abatement personal property period for Phase 1 are <br />estimated at $102,898. Total new taxes to be paid over five years are estimated at $208,639. Net tax paid <br />is estimated at $105,741. <br />EMPLOYMENT IMPACT <br />Per the petition, it is estimated that the total project will create 50 permanent, full -time and 0 (zero) <br />permanent, part-time jobs within the first year, representing a new annual payroll of $2,808,000. <br />ABATEMENT QUALIFICATION <br />A review of the tax abatements previously granted, finds that the petitioner has not been granted or <br />associated with any previous tax abatements: <br />2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned <br />for the proposed project. <br />3. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the <br />qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible <br />Personal Property Tax Abatement. They also qualify for a three year real property abatement. <br />