Confirming Tax Abatement - Briarcliff Healthcare 5024 W. Western Ave. (5 Year Real Property)

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RE: Tax Abatement for Briarcliff Healthcare February 4, 2014 Page 2 The Petitioner has just begun collecting information on potential suppliers and contractors for the project. For this reason they were unable to finalize the questions related to suppliers of construction materials and construction contractors. They intend to submit this information prior to the Common Council meeting to consider their confirming resolution. At that time final points will be awarded and the length of the abatement term set. Based on current information, the Petitioner will score sufficient points for a four to seven -year term. If they score all of the points for construction they would have enough for seven years. Assuming a seven -year abatement term is approved at the Confirming Resolution, the total taxes to be abated during that term are estimated at $253,318. Total taxes to be paid during the seven -year term are estimated at $660,019. Our municipal city Code does not target service industries for tax abatements. Therefore, approval of this request would be an exception to our Code as this is a service business. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create 40 new, permanent full -time positions in the first year and 40 full -time positions in the second year. The new payroll will be $2,476,032 in the second year. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the petitioner has not been granted any previous abatements. 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 Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for up to a seven -year real property tax abatement under Section 2 -84, Council's Authority to Enlarge Real Property Tax Abatement General Standards. .