6.A.(1) Resolution No. 2523 - Laserfiche WebLink

Home Browse Search

RE: Gateway Plaza Rcal Estate, LLC. October 29, 2008 Page 2 Total taxes to be abated during the (3) three-year abatement period are estimated at $79,214. "Cotal taxes to be paid during the (3) three-year abatement period are estimated at $56,076. EMPLOYMENT IMPACT Per the petition, it is estimated that the project, by itself, will not create additional full-time or part- time permanent jobs within the first year of the project, but will enable a tenant, Memorial Health Systems, to move and allow for future growth. Memorial will maintain 14 existing permanent full- timejobs with an annual payroll of $88,924 including one existing permanent lull-time minority employee with an annual payroll of $170,000. The total possible gains in employment resulting from construction of the building will depend on the kind of businesses that locate Sn it and cannot be estimated at this time, therefore, the petitioner has not presented any. As a result, no points were awarded for job creation in the Public Benefit Points Summary. However, in a preliminary review of the petition that Staff conducted for the Common Council, it was noted that: (a) up to seven new or existing businesses could move into the building; (b) when existing businesses relocate they tend to do so because they need more space and more employees and new businesses will employ at least the owner; and (c) if only three businesses occupied the building one can assume that at least one job per business would be created and the equivalent of one half-time position would also be created to administer and maintain the building. ABATEMENT QUALIFICATION L A review of the tax abatements previously granted finds that the petitioner has not been granted or associated with any previous tax abatements. 2. ~I~hc Building Commissioner has reviewed the petition and fnds 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 Airport Economic Development urea, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner does not meet the quali 13cations for a real property tax abatement under the general standards for tax abatement in the City of South Bend. However, the Ordinance does provide for an exception to the general standards, at the South Bend Common Council°s discretion. The Redevelopment Commission is requested to approve a (3) three-year real property tax abatement as a special exception subject to further review by the Common Council of the City of South Bend.