01-12-09 Common Council Meeting Agenda & Packet

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South Bend Redevelopment Commission RE: Tax Abatement for AIC Ventures/Fortis Plastics, LLC December 18, 2008 Page 2 The equipment to be purchased includes new and used plastic injection mold machines and extruders, computers, IT infrastructure and servers. The used equipment would be acquired from outside the State of Indiana. A personal property tax abatement application is being submitted as part of the total project. Total taxes to be abated during a (5) five-year abatement period are estimated at $59,419. Total taxes to be paid during the five-year abatement period are estimated at $381,463. EMPLOYMENT IMPACT Per the petition, it is estimated that the total project will create twenty (20) new, permanent, full-time jobs within the first year of the project representing a new annual payroll of approximately $1,620,000. The project will retain one hundred twenty-six (126) existing permanent, full-time jobs (of which 21 are minority employees) with an annual payroll of $3,925,900. 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. However, it has applied for afive-year personal property tax abatement along with this application. 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 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 meet the qualifications for afive-year (5) real property tax abatement under Section 2-82, Industrial . Development, City-wide General Standards.