Confirming Tax Abatement - 1728 North Ironwood Drive - Robert R. Lee (C.E. Lee Company, Inc.)

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South Bend Common Council RE: Robert R. Lee (C. E. Lee Company) December 22, 2008 Page 2 remainder of the project with a loan from 15` Source Bank. The new building will be built on the old site but the size of the building will be doubled to allow for a projected increase in both sales and staff. The new building will be approximately 6,800 square feet in size and will have two stories; the old building contained approximately 2,700 square feet all on one level. The company is requesting a tax abatement with a special exception because the additional cost to rebuild due to being underinsured is $205,000 and the revenue loss resulting from the fire was over $100,000. They have discussed moving to another location but they prefer to stay in South Bend at their present site where they have been a part of the City for 136 years. Total taxes to be abated during the (3) three-year abatement period are estimated at $25,742. Total taxes to be paid during the (3) three-year abatement period are estimated at $24,717. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create one new, permanent full-time position and two permanent, part-time positions with an annual payroll $50,000. The project will also maintain five existing permanent full-time positions and 2 existing part-time positions and a total annual payroll of $250,000. 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 properly to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is not located in any Tax Incremental Allocation Areas; therefore, no action is required 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 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. A (3) three-year real property tax abatement is being sought as a special exception.