Confirming Tax Abatement - Noble Americas South Bend Ethanol LLC 3201 W. Calvert St. (5 Year Personal Property)

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RE: Tax Abatement Noble Americas South Bend Ethanol LLC December 6, 2013 Page 2 South Bend Common Council From 2013 through 2015 the company plans to spend $11 M on new building construction, $9 M on existing building improvements, $2 Mon new machinery and equipment, and $875,000 on IT equipment and software. They have plans for investment going out five years. Because the designation given by the designating resolution only extends out for two years they will need to reapply for abatement at the end of those two years for the next two years. The overall cost over 5 years will be $36,175,000. Total taxes to be abated during the (5) five -year abatement personal property period for Phase I are estimated at $102,898. Total new taxes to be paid over five years are estimated at $208,639. Net tax paid is estimated at $105,741. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create 50 permanent, full -time and 0 (zero) permanent, part-time jobs within the first year, representing a new annual payroll of $2,808,000. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous tax 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 a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement. They also qualify for a three year real property abatement.