02-25-08 Community and Economic Development

Home Browse Search

Community and Economic Development Committee February 25, 2008 Page 2 abated would be $74,138; with taxes being paid being $36,488. If it is not approved, the taxes projected to be abated would be $70,117; with $38,500. Five (5) new permanent jobs would be created and six (6) new part-time positions representing a projected new payroll of approximately $250,000. There are no employees currently in South Bend. The reports conclude that the petitioner meets the requirements for afive-year personal property tax abatement under Section 2-84.2 addressing "Tangible Personal Property Tax Abatement under the South Bend Municipal Code; and the provisions for afour- year real property tax abatement under Section 2-82 addressing "Industrial Development, City-Wide General Standards under the South Bend Municipal Code. The Council Attorney noted that she and Mr. Mathia talked about the vehicle listed in the personal property tax abatement request. Since there is no governing law on this and that the assessor's office will determine whether it qualifies or not, it was her recommendation to go forward with it as presented. The Petitioner, Mr. David C. Rhoa, President of Lake Michigan Mailers, Inc. with offices at 3777 Sky King Blvd., Kalamazoo, Michigan 49009 then addressed the Committee. Mr. Rhoa presented aone-page drawing of the proposed building. In response to inquiries from Council Members Puzzello and Varner, Mr. Rhoa noted that the vehicle in question is a cargo van/truck capable of pulling in excess of 10,000 pounds. Mr. Rhoa stated that the business is family-owned since 1977. He Is 2nd generation. His company looked for two (2) years in Michigan, Ohio and Indiana. Mr. Rhoa choice South Bend because of: • Postal service is highly rated • Infra-structure of the city facilities easy transportation access • Easy accessibility on the northwest part of the City of South Bend • Diverse market • Proximity to Kalamazoo, MI Mr. Rhoa stated that they service 850 companies. "Hot Site" capabilities are available in the event of a disaster. In response to a question from Dr. Varner, Mr. Rhoa stated that approximately one-third (1/3) of their business is document processing (data) which is the fastest growing component. In response to a question from Council Member Henry Davis, Jr., Mr. Rhoa, stated that in Kalamazoo they had 50 employees last week and as of today it is up to 52. In South Bend they project to create six (6) part-time and five (5) full-time positions.