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~~ ~ ~~~ 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/ 235-9371 FAx 574/235-9021 CITY OF SOUTH BEND STEPHEN J. LUECKF., MAYOR COMMUNITY HL ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR T.-1.~~ , t 1~. 1 Tf.~.1I1; a"T REPORT (UPDATE) TO: SOUTII BEND REDEVELOPMENT COMMISSION FROM: BOB MA'I'IIIA ~j,-~ SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: MC CORMICK AND COMPANY, INC. DATE: February 4, 2011 Please find attached a letter from Ms. Deidre Cassidy, Director of State and Local Tax for McCormick & Company. The letter, contains a request for an increase in the amount of the company's five year personal property tax approved by the Redevelopment Commission through resolution #2677on July 10, 2010 and approved by the South Bend Common Council through resolution #4076-11on January 24, 2011. The original amount requested, as amended, was $1,362,173. They are planning to move an existing brand of products from a co-packer to a company owned facility at a cost of $6,744,426. They are considering their South Bend facility for that move. As a result, they are asking that the amount of their personal property abatement by increased by $6,744,426 to a new total of $8,136,599. With this increase the total taxes abated and paid will increase from $10,073 and $103,084 respectively to $125, 205 and $550,707. It should also be noted that the company had planned to increase employment by five positions under its current abatement. However, it has already increased total employment by 10 positions and total wages have gone from $6,288,988 to $6,718,833 for an increase of $429,845. With the proposed move the company would add an additional 14 positions and increase wages by another $483,1 O 1. The request requires a reconfirming resolution from the South Bend Common Council. In addition to Ms. Cassidy's letter, I have attached a copy of a revised Statement of Benefits (Form SB-1) and a copy of the estimated Personal Property Tax Abatement Schedule for your review. The Redevelopment Commission is requested to approve the $6,774,426 increase in the estimated value of McCormick's personal property tax abatement to a new total of $8,136,599. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HL PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 >74/235-9371 ELIZAeeTH LEONARD FAX: 574/235-9469 574/235-9371