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South Bend Redevelopment Commission <br />Regular Meeting -July 20, 2007 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatements <br />continue ... <br />total estimated cost of equipment for all three <br />locations will range from $4,400,000 to <br />$11,000,000. Depending on the exact <br />amount of the investment, taxes to be abated <br />during the five years of abatement are <br />expected to range from $268,000 to <br />$672,000. Taxes to be paid during that time <br />are estimated to range from $140,000 to <br />$350,000. The reason for the wide range is <br />that there is a two year time period for <br />installing the new equipment. Depending on <br />the market and the cost of equipment, they <br />aren't sure how much equipment they will <br />purchase during that time. Asking for the <br />range allows them to be flexible and not have <br />to come back for additional abatement during <br />that time. <br />Mr. Lerman: Competition in our industry <br />involves, even in the State of Indiana, <br />counties that provide a hell of a lot more <br />support than the tax abatement we're asking <br />for right now. For us to stay in competition <br />for Worthington, for all the other big ones <br />that are around us in the state, Porter County, <br />other places, this is a pittance by comparison. <br />For the kind of things we add in terms of an <br />industrial base to this community, after the <br />five years have expired we pay the regular <br />rate. I think it's really a net gain for the <br />community. It's got to be a net gain. If <br />everybody wants to eliminate tax abatement, <br />fine. We'll compete against them. But as <br />long as there are other places that have it, <br />you'd be stupid, foolish, crazy, not to at least <br />be in competition with them, as long as you <br />41 <br />