02-23-09 Common Council Meeting Agenda & Packet

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South Bend Redevelopment Commission RE: Tax Abatement for Royal Holdings. Inc. d.b.a. Royal Adhesives February 4, 2009 Page 2 adhesives. Some equipment may be used, however, all used equipment would be acquired from outside the State of Indiana. The equipment to be installed on the site has a total estimated cost of $3,168,075. Total taxes to be abated during the (5) five -year abatement period are estimated at $53,424. Total additional taxes to be pgiL as a result of the project during the five -year abatement period are estimated at $177,784. EMPLOYMENT IMPACT Per the petition, it is estimated that the project will create twenty -eight (28) new, permanent full -time positions with an annual payroll $1,390,806. The project will also maintain one hundred sixteen (116) existing permanent full -time positions, including 25 existing permanent full -time minority employees, with a total annual payroll of $6,137,614. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the Petitioner, Royal Holdings, Incorporated, has not been granted or associated with any previous tax abatements. However, at this time they are also petitioning for a real property tax abatement. In addition, a previous owner of the company, Uniroyal Technology Corporation, submitted a petition for a real property tax abatement on November 12, 1999. That petition was turned down by the Common Council at the Confirming Resolution stage due to a remonstrance by members of the public who were mostly retirees of the old Uniroyal Corporation. Subsequent to that abatement petition, Uniroyal Technology Corporation sold the company and no longer has any ownership interest in it. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the West Washington — Chapin Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible Personal Property Tax Abatement.