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South Bend Redevelopment Commission <br />Regular Meeting -July 20, 2007 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatements <br />() continued... <br />new HVAC system. The estimated cost is <br />$300,000 to $500,000. The project would <br />qualify for six years of abatement. The <br />amount to be abated would be $36,944 to <br />$60,157, depending on the ultimate project <br />cost. Taxes to be paid would be $25,430 to <br />$42,380. <br />Mr. Cupp, Corporate Services, noted that <br />humidity control, not temperature control, is <br />what is needed, but that is accomplished <br />through air conditioning. <br />Mr. Peczkowski inquired about the five <br />previous abatements, three of which have yet <br />to expire. He asked how they layered and <br />whether they are abatements on top of <br />abatements? <br />Mr. Inks responded that each abatement is <br />specific to a particular project. Once the <br />resolution is approved by the Common <br />Council there is a two year window to make <br />the improvements on the property. Those <br />improvements are tied to an abatement <br />schedule approved by the Common Council, <br />so if they were doing a building addition five <br />years ago, the investment would have been <br />made and the schedule set, and on that <br />particular investment they would continue to <br />receive abatement. Only new assessed value <br />beyond that prior investment would qualify <br />for the new abatement. Only to the extent <br />that the assessment is increased by the <br />project would the increase to assessed value <br />receive tax abatement. <br />33 <br />