03-24-14 Council Agenda & Packet

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South Bend Common Council RE: Tax Abatements for Lock Joint Tube, LLC March 10, 2014 Page 2 Lock Joint Tube LLC will construct a new 30,000 square foot addition for additional manufacturing, storage, and shipping space. These real property investments will cost between $1.1 million. Please note that the contractor information (on the real estate petition) is largely unknown at this time. Based on the preliminary information, Lock Joint Tube LLC should qualify for a five to seven year real property tax abatement. The qualified term will be known prior to the confirming resolution date. Based on a project cost of $1.1 million with a five or seven year term, the taxes abated would range from $108,959 to $137,338 based on the approved term. The taxes paid will range from $794,427 to $1,127,402. EMPLOYMENT IMPACT Per the petitions, it is estimated that the projects will create six to eight new, permanent, full -rime jobs within the first year of production representing a payroll of $189,000 to $251,000; and the projects will maintain one hundred ninety -three (193) existing, permanent full -time and no existing, part-time jobs representing an annual payroll of approximately $10,300,000. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the petitioner has been granted or associated with (5) five previous tax abatements. Term /Typ e Resolution No. Date 5 -year personal property 4186 -12 05/29/12 5 -year real property 4187 -12 05/29/12 5 -year personal property 3621 -06 08/14/06 5 -year personal property 3308 -04 03/08/04 10 -year real property 2952 -00 11/27/00 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the South Side Economic Development Area. 5. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement. The real property project will qualify for a five to seven real property tax abatement pending further information on the contractors.