South Bend committee recommends seven-year tax abatement for Michigan Motorsports

The Community Investment Committee voted to forward a confirming resolution to the full Common Council that would grant a seven-year property tax abatement to Michigan Motorsports as part of a planned move from Niles, Michigan, to a redevelopment parcel in South Bend.

Joe Molnar, assistant director of the Growth Opportunities office, told the committee the project would be built on a roughly 7-acre parcel owned by the redevelopment commission. The proposed development is a 50,000-square-foot office, warehouse, distribution center and showroom. Molnar said Michigan Motorsports has a purchase agreement for the site, a planned $4,450,000 construction commitment and an anticipated 29 new full-time jobs with an estimated annual payroll "just over $2,100,000."

Molnar summarized estimated property-tax impacts: the vacant parcel currently would be assessed at about $2,562 annually; after construction, estimated annual property taxes would be a little over $83,000. During the seven-year abatement period Molnar said estimated taxes would total about $581,000, of which roughly $317,000 would be abated and about $264,000 would still be paid.

Committee members had no substantive questions and the committee recorded unanimous support in roll call; the confirming resolution will appear on the full council agenda at 7 p.m.

The presenter noted that, even with the abatement, the city would receive property-tax revenue during the abatement period and that the project is intended to bring jobs and investment to a redevelopment parcel.