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economic future with short-term tax assistance that will enable the growth of a locally <br />based company,” said Mayor Stephen J. Luecke. “Despite difficult national <br />circumstances, it’s an encouraging sign that South Bend businesses still serve vital <br />commercial needs. The City of South Bend will continue to do its part to foster a positive <br />business climate.” <br /> <br />The project is estimated to create 28 new, permanent, full-time positions with an annual <br />payroll of nearly $1.4 million. It also will maintain 116 existing full-time positions, 25 of <br />them being minority employees. The company’s current annual payroll is nearly $6.14 <br />million. <br /> <br />Total new investment includes $1,127,543 for construction improvements, $3,168,075 for <br />equipment and $1,390,806 in new annual payroll, for a total of $5,686,424. <br /> <br />The maximum combined tax abatement would not exceed $93,099 – less than one-third <br />of the $308,117 Royal Adhesives would pay in real and personal property taxes over a <br />five-year period. The City would only receive these new taxes if the project is completed. <br /> <br />The amount of tax abatement could vary based on final selection of contractors. A three- <br />year real property tax abatement would result in the abatement of $28,556 in taxes, while <br />the company would pay $73,449 in taxes over three years. A five-year real property tax <br />abatement would result in the abatement of $39,675 in taxes with payment of $130,333. <br />Because Royal Adhesives would buy equipment, it also would be eligible for a five-year <br />personal property tax abatement of $53,424. The company would pay an estimated <br />$177,784 in personal property taxes during the five-year period. <br /> <br /> <br />- 30 - <br /> <br />