Abatement Reports 2011 - 2017
Note: For accuracy, the amounts are from reports filed by the City of South Bend, IN. You can download the PDF's directly by clicking on the buttons. They have the OFFICIAL CITY STAMP on them. These are reports signed by the Director of Community Investment, James Mueller. (His term as Director started in April of 2017.)
ABATEMENT SUMMARY REPORT
There are two kinds of Abatements – Real Property and Personal Property. This report will break them out for clarity. It is concerning that multiple $0/10 Year Abatements have been given. These mean ZERO tax income for a FULL DECADE, at a time of DEFICITS and Circuit Breaker restrictions. Workers coming from other counties pay their local option tax to the county they live in, which means we may or may not see a tax benefit at all.
Also of concern is there seem to be negative numbers next to “remaining time” and missing information.
It seems Abatements have gone from $1M to now over $36M per year. This is not a sustainable practice and the current Abatements may cripple future tax income needed. Giving these Abatements puts even more stress on the taxpayer burden.
Note: Other cities do not give Abatements to businesses receiving TIF or other grants.
Remember, the justification of Abatements is NEW JOB CREATION. Many of these generated less than 10 jobs and some were ZERO jobs. Economists have noted this isn’t really an effective way to generate new jobs and reduces the tax base. Also, we are hitting the Circuit Breaker in 2020.
Suggestions:
There are two kinds of Abatements – Real Property and Personal Property. This report will break them out for clarity. It is concerning that multiple $0/10 Year Abatements have been given. These mean ZERO tax income for a FULL DECADE, at a time of DEFICITS and Circuit Breaker restrictions. Workers coming from other counties pay their local option tax to the county they live in, which means we may or may not see a tax benefit at all.
Also of concern is there seem to be negative numbers next to “remaining time” and missing information.
It seems Abatements have gone from $1M to now over $36M per year. This is not a sustainable practice and the current Abatements may cripple future tax income needed. Giving these Abatements puts even more stress on the taxpayer burden.
Note: Other cities do not give Abatements to businesses receiving TIF or other grants.
Remember, the justification of Abatements is NEW JOB CREATION. Many of these generated less than 10 jobs and some were ZERO jobs. Economists have noted this isn’t really an effective way to generate new jobs and reduces the tax base. Also, we are hitting the Circuit Breaker in 2020.
Suggestions:
- Limit both Real and Personal Abatements to 5 years.
- Put a cap on the total allowed Abatements in one year.
- Only allow graduated Abatements, not full $0 Abatements
- If companies do not produce expected contractual results they will have their Abatement revoked and owe the additional taxes.
- All those receiving Abatements must provide documentation showing they have met their contractual agreement or they will have their Abatement revoked and owe the additional taxes.
- Be like other cities and if the company gets TIF funds, they do not get Abatements as well.
- The above needs to be an ORDINANCE.
- Audit all these past Abatements for compliance
- Investigate why some companies have a negative number of years and if they received Abatements beyond when they were supposed to.
2011 Real Property $1,325,195 + Personal Property $360,268 = $1,685,463
2012 Real Property $1,047,098 + Personal Property $317,334 = $1,364,432
2013 Real Property $15,661,652 + Personal Property $2,745,276 = $18,406,928
2014 Real Property $13,129,317 + Personal Property $2,279,219 = $15,408,536
2015 Real Property $19,178,972 + Personal Property $2,749,028 = $19,178,972
2016 Real Property $22,935,789 + Personal Property $2,763,357 = $25,699,146
2017 Real Property $32,399,118 + Personal Property $3,694,083 = $36,093,201
Grand Total for 7 Years = $117,836,678
2012 Real Property $1,047,098 + Personal Property $317,334 = $1,364,432
2013 Real Property $15,661,652 + Personal Property $2,745,276 = $18,406,928
2014 Real Property $13,129,317 + Personal Property $2,279,219 = $15,408,536
2015 Real Property $19,178,972 + Personal Property $2,749,028 = $19,178,972
2016 Real Property $22,935,789 + Personal Property $2,763,357 = $25,699,146
2017 Real Property $32,399,118 + Personal Property $3,694,083 = $36,093,201
Grand Total for 7 Years = $117,836,678
2011 Abatements
Real Property Abatements for 49 Companies = $ 1,325,195
Personal Property Abatements for 29 Companies = $ 360,268
Grand Total $ 1,685,463
Real Property – Of those 49, 27 of them generated 10 or less new jobs and
13 of these generated at NO NEW JOBS at all.
25 of these got an Abatement for a full 10 years—a decade.
Personal Property – Of those 29, 15 of them generated 10 or less new jobs and
7 of these generated at NO NEW JOBS at all..
Note: 5 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2011 Report filed in the Clerk’s Office on 6/15/2012
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Personal Property Abatements for 29 Companies = $ 360,268
Grand Total $ 1,685,463
Real Property – Of those 49, 27 of them generated 10 or less new jobs and
13 of these generated at NO NEW JOBS at all.
25 of these got an Abatement for a full 10 years—a decade.
Personal Property – Of those 29, 15 of them generated 10 or less new jobs and
7 of these generated at NO NEW JOBS at all..
Note: 5 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2011 Report filed in the Clerk’s Office on 6/15/2012
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
2012 Abatements
Real Property Abatements for 41 Companies = $ 1,047,098
Personal Property Abatements for 26 Companies = $ 317,334
Grand Total $ 1,364,432
Real Property – Of those 41, 21 of them generated 10 or less new jobs and
10 of these generated at NO NEW JOBS at all.
18 of these got an Abatement for a full 10 years—a decade.
Note: 2 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 26, 11 of them generated 10 or less new jobs and
5 of these generated at NO NEW JOBS at all.
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2012 Report filed in the Clerk’s Office on 6/14/13
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Personal Property Abatements for 26 Companies = $ 317,334
Grand Total $ 1,364,432
Real Property – Of those 41, 21 of them generated 10 or less new jobs and
10 of these generated at NO NEW JOBS at all.
18 of these got an Abatement for a full 10 years—a decade.
Note: 2 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 26, 11 of them generated 10 or less new jobs and
5 of these generated at NO NEW JOBS at all.
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2012 Report filed in the Clerk’s Office on 6/14/13
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
2013 Abatements
Real Property Abatements for 40 Companies = $15,661,652
Personal Property Abatements for 32 Companies = $ 2,745,276
Grand Total $18,406,928
Real Property – Of those 40, 15 of them generated 10 or less new jobs and
11 of these generated at NO NEW JOBS at all.
7 of these got an Abatement for a full 10 years—a decade.
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 32, 7 of them generated 10 or less new jobs and
5 of these generated at NO NEW JOBS at all..
Note: 3 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2013 Report filed in the Clerk’s Office on 6/24/14
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Personal Property Abatements for 32 Companies = $ 2,745,276
Grand Total $18,406,928
Real Property – Of those 40, 15 of them generated 10 or less new jobs and
11 of these generated at NO NEW JOBS at all.
7 of these got an Abatement for a full 10 years—a decade.
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 32, 7 of them generated 10 or less new jobs and
5 of these generated at NO NEW JOBS at all..
Note: 3 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2013 Report filed in the Clerk’s Office on 6/24/14
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
2014 Abatements
Real Property Abatements for 30 Companies = $13,129,317
Personal Property Abatements for 25 Companies = $ 2,279,219
Grand Total $15,408,536
Real Property – Of those 30, 17 of them generated 10 or less new jobs and
7 of these generated at NO NEW JOBS at all.
6 of these got an Abatement for a full 10 years—a decade.
Note: 4 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 25, 11 of them generated 10 or less new jobs and
6 of these generated at NO NEW JOBS at all..
Note: 4 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2014 Report filed in the Clerk’s Office on 6/15/15 (Not stamped)
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Personal Property Abatements for 25 Companies = $ 2,279,219
Grand Total $15,408,536
Real Property – Of those 30, 17 of them generated 10 or less new jobs and
7 of these generated at NO NEW JOBS at all.
6 of these got an Abatement for a full 10 years—a decade.
Note: 4 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 25, 11 of them generated 10 or less new jobs and
6 of these generated at NO NEW JOBS at all..
Note: 4 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2014 Report filed in the Clerk’s Office on 6/15/15 (Not stamped)
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
2015 Abatements
Real Property Abatements for 36 Companies = $19,178,972
Personal Property Abatements for 32 Companies = $ 2,749,028
Grand Total $19,178,972
Real Property – Of those 36, 23 of them generated 10 or less new jobs and
10 of these generated at NO NEW JOBS at all.
6 of these got an Abatement for a full 10 years—a decade.
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 32, 19 of them generated 10 or less new jobs and
8 of these generated at NO NEW JOBS at all..
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2015 Report filed in the Clerk’s Office on 6/21/16
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Personal Property Abatements for 32 Companies = $ 2,749,028
Grand Total $19,178,972
Real Property – Of those 36, 23 of them generated 10 or less new jobs and
10 of these generated at NO NEW JOBS at all.
6 of these got an Abatement for a full 10 years—a decade.
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Personal Property – Of those 32, 19 of them generated 10 or less new jobs and
8 of these generated at NO NEW JOBS at all..
Note: 6 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2015 Report filed in the Clerk’s Office on 6/21/16
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
2016 Abatements
Real Property Abatements for 42 Companies = $22,935,789
Personal Property Abatements for 32 Companies = $ 2,763,357
Grand Total $25,699,146
Real Property – Of those 42, 29 of them generated 10 or less new jobs and
14 of these generated at NO NEW JOBS at all.
11 of these got an Abatement for a full 10 years—a decade.
Personal Property – Of those 32, 20 of them generated 10 or less new jobs and
8 of these generated at NO NEW JOBS at all..
Note: 3 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2016 Report filed in the Clerk’s Office on 6/9/17
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Personal Property Abatements for 32 Companies = $ 2,763,357
Grand Total $25,699,146
Real Property – Of those 42, 29 of them generated 10 or less new jobs and
14 of these generated at NO NEW JOBS at all.
11 of these got an Abatement for a full 10 years—a decade.
Personal Property – Of those 32, 20 of them generated 10 or less new jobs and
8 of these generated at NO NEW JOBS at all..
Note: 3 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2016 Report filed in the Clerk’s Office on 6/9/17
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
2017 Abatements
Real Property Abatements for 53 Companies = $ 32,399,118
Personal Property Abatements for 35 Companies = $ 3,694,083
Grand Total $36,093,201
Real Property – Of those 53, 35 of them generated 10 or less new jobs and
26 of these generated at NO NEW JOBS at all.
16 of these companies got an Abatement for a full 10 years—a decade.
Note: 19 of the entries do not show the number of years remaining on their Abatement time.
Personal Property – Of those 35, 17 of them generated 10 or less new jobs and
10 of these generated at NO NEW JOBS at all..
Note: 5 of the entries do not show the number of years remaining on their Abatement time and 7 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2017 Report filed in the Clerk’s Office on 6/15/18
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Also, does this include the Kohl’s lawsuit award for $668K?
Personal Property Abatements for 35 Companies = $ 3,694,083
Grand Total $36,093,201
Real Property – Of those 53, 35 of them generated 10 or less new jobs and
26 of these generated at NO NEW JOBS at all.
16 of these companies got an Abatement for a full 10 years—a decade.
Note: 19 of the entries do not show the number of years remaining on their Abatement time.
Personal Property – Of those 35, 17 of them generated 10 or less new jobs and
10 of these generated at NO NEW JOBS at all..
Note: 5 of the entries do not show the number of years remaining on their Abatement time and 7 show negative numbers. Does this mean they are continuing to get Abatements beyond what they were voted to receive?
Source: Department of Community Investment Annual 2017 Report filed in the Clerk’s Office on 6/15/18
Questions: How many of these are out of compliance? If they are out of compliance, is the City working to revoke and recover these Abatements?
Also, does this include the Kohl’s lawsuit award for $668K?
2018 Abatements
NOTE: Not available until June of 2019