|
South Bend Redevelopment Commission
<br />RE: Steel Warehouse (Personal Property Abatement}
<br />July 16, 2007
<br />Page 2
<br />The first abatement request for personal property at 2722 W. Tucker involves the acquisition
<br />of equipment for manufacturing, servicing, processing and material handling of steel and steel
<br />products, having a total cost expected to be from $2,500,000 to $5,000,000. The acquisition will
<br />enable the company to add capacity to and to modernize its existing manufacturing equipment and
<br />facilities at this location.
<br />The second abatement request for personal property at 1400 W. Riverside is for the
<br />acquisition of equipment for manufacturing, servicing and processing equipment having a total cost
<br />between $1,500,000 and $3,500,000. The acquisition will enable the company to add capacity to
<br />plasma and laser cutting manufacturing equipment at the Riverside location.
<br />The third abatement request for personal property at 1217 and 1215 S. Walnut involves the
<br />acquisition of manufacturing equipment having a total cost expected to be from $400,000 to
<br />$2,500,000. The acquisition will permit the company to add capacity to its tool steel operations.
<br />'The total investment for the three projects is estimated to be between $4,400,000 and
<br />$11,000,000. The amount of the final investment will depend on a number of factors including
<br />trends in the demand for Steel Warehouse's products and the cost and availability of needed
<br />equipment to be acquired between approval of the abatement requests and the expiration of their
<br />approved Economic Revitalization Area (ERA) designations inJuly/August 2009. Depending on the
<br />exact amount of investment, total taxes to be abated during the five-year (5) abatement period are
<br />estimated to be between $268,901 and $672,254. Again, depending on the exact amount of
<br />investment, total -taxes to be paid during the five-year (5) abatement period are estimated to be
<br />between $139,930 and $349,824. Taxes to be abated for each of the projects are estimated to be as
<br />follows: (a) Tucker Drive - $152,785 to $305;570; (b) Riverside Drive - $91,671 to $213,899; and
<br />(c) Walnut Street - $24,445 to $152,785. Taxes to be paid for each of the prof ects are estimated to
<br />be as follows: (a) Tucker Drive - $79,505 to $159,011; (b) Riverside Drive - $47,704 to $111,308;
<br />and (c) Walnut Street - $12,721 to $79,505.
<br />EMPLOYMENT IMPACT
<br />Per the petition, it is estimated that the projects will create up to five (5) new permanent full
<br />time jobs at the Tucker location, four (4) to twelve (12} at the Riverside location and from five (5) to
<br />twenty-five (25) jobs at the Walnut location representing new annual payrolls of $156,000, $130,400
<br />to $391,200 and $156,000 to $780,000 respectively at the three facilities. The project is also
<br />expected to retain a total of four hundred and eighty-one (481)full-time jobs, representing an annual
<br />payroll of $22,707,500 at the facilities.
<br />
|