08-13-12 Council Agenda & Packet

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TAX ARATEIVIENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: THE TIRE RACK, INC. DATE: July 9, 2012 On April 4, 2012, a petition for real property tax abatement consideration for property located at 7101 Vorden Parkway was filed with the City Clerk by The Tire Rack, Inc. The Tire Rack, Inc. is a mail order and e-commerce firm engaged in the business of selling performance tires,wheels,and accessories for passenger automobiles and Iight duty trucks.The petitioner would like to construct a 36,000 square foot building which will enable the expansion of Technological Resources and assets to further the growth and development of their e-commerce Product Distribution business. The estimated dollar value of the project, excluding land, is $6,500,000. Please note that the contractor information was largely unknown at the time the designating resolution was approved.The information on the contractors is now available and based on the information attached they qualify for a five year real property tax abatement. Based on a project cost of$6.5 million with a five year term, the taxes abated would be$496,345 based on the approved term. The taxes paid will be $471,939.