11-24-08 Council Meeting Agenda & Packet

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South Bend Common Council RE: Gateway Plaza Real Estate, LLC. October 29, 2008 Page 2 Total taxes to be abated during the (3) three-year abatement period are estimated at $79,214. Total 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- time jobs with an annual payroll of $858,924 including one existing permanent full-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 kinds of businesses that locate in it and cannot be estimated at this time, therefore, the petitioner has not presented any projections on jobs created. As a result, no points were awarded for job creation in the Public Benefit Points Summary. However, much like the State of Indiana's Shovel Ready Industrial Park Program, the building will facilitate job creation by providing the necessary infrastructure for new investments to be made quickly and easily by businesses looking to start-up or expand. ABATEMENT QUALIFICATION 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 South Bend Redevelopment designation azeas finds that the property is located in the Airport Economic Development Area, 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 qualifications for a real property tax abatement under the general standazds 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. A (3) three-year real property tax abatement is being sought as a special exception.