Confirming Tax Abatement - 2001 West Washington - Royal

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RE: Tax Abatement for Royal Holdings. Inc. d.b.a. Royal Adhesives February 4, 2009 Page 2 Total taxes to be abated during athree-year abatement period are estimated at $28,556. Total additional taxes to be paid as a result of the project during the three-year abatement period are estimated at $73,449. 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 1. 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 personal 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 real 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 athree-year real property tax abatement under Section 2-82.1, Industrial Development in the Urban Enterprise Zone and Redevelopment Blighted Areas and Section 2- 83.1 Warehouse Development in Economic Development Target Areas, the Urban Enterprise Zone and Redevelopment Blighted Areas. The proposed project is located in a Redevelopment Blighted Area.