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01-23-17 Utilities
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01-23-17 Utilities
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City Council - City Clerk
City Council - Document Type
Committee Mtg Minutes
City Counci - Date
1/23/2017
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filed. We don't want to see that. We want to make sure that we have every opportunity to try to <br /> work to an agreement on this matter. <br /> Mr.Nussbaum continued, stating, The bottom line is that we have a company with five-hundred <br /> and twenty(520) employees. It is a union planta United Steel Workers plant. A very highly <br /> paid manufacturing plant that's had a record of great success over the past thirty(30) years. It <br /> employs residents of the City of South Bend. It does business with many businesses here in <br /> South Bend. I looked at their vendor list: there are two-hundred (200) businesses in South Bend, <br /> many of which are longstanding companies that they do business with. The way this all occurred <br /> thirty(30) years ago-1987, actually, is when the New Carlisle Economic Development Area <br /> was put in place—its infrastructure was constructed without any City money whatsoever. <br /> There's a truck line from the I/N Tek and I/N Kote plant to the Wastewater Treatment Plant; a <br /> dedicate line, so there are no additions or any leakage out. It goes right into the Wastewater <br /> Treatment Plant; it does not go into the river. So, there is absolutely no combined sewer overflow <br /> issues that are caused by I/N Tek and I/N Kote. However, in calculating the rate,there is a <br /> significant part of the rate which I/N Tek and I/N Kote pays which does address that issue. There <br /> is also part of the rate, a PILOT—payment in lieu of taxes—where the City of South Bend <br /> benefits from the Wastewater Treatment Plant to the extent that it would otherwise be a tax- <br /> paying entity. There are some significant dollars there. That is outlined in the presentation, and I <br /> will go into further detail later this evening. <br /> Mr. Nussbaum continued, stating, About forty percent (40%) is what I/N Tek and I/N Kote pays <br /> to the City as the largest rate-paying customer. Those, for things that it either causes—which is <br /> the major part: combined sewer overflow—or for services the plant does not receive: it does not <br /> receive Fire services, it does not receive road services, it does not have its garbage picked up. <br /> There are no City services that are offered that I/N Tek and I/N Kote needs. However,part of the <br /> I/N Tek and I/N Kote rates that are being paid do go to those things. If you quantified it, based <br /> on the numbers that we have: between those two (2) components—the combined sewer overflow <br /> and the PILOT—it's about$1,000,000 a year that I/N Tek and I/N Kote pays. That is significant. <br /> That's $1,000,000, in my view, of savings. The rate that they paid has gone up $1,000,000 from <br /> 2010 to 2016. If you add on this fourteen percent(14%), that's another$300,000. It's just not <br /> sustainable. They are either going to have to look for other options or they are going to have to <br /> cut back in other areas, whether it's employment, or what-not. I think it is well worth our while <br /> to try to maybe give us one (1)month or so to try to work out an agreement so that we don't file <br /> any litigation and we can put this matter, in a very businesslike fashion,to bed. It would be in the <br /> best interest of everybody. My request this evening is for you to open the public hearing, hear <br /> from the public, keep the public hearing open, and we schedule the public hearing to continue at <br /> a future date, to allow I/N Tek and IIN Kote and the City of South Bend to continue its <br /> discussions. <br /> Committeemember Dr. Varner asked for the man behind Mr.Nussbaum to be introduced. <br /> Mr.Nussbaum identified the man as Tom Caiya, President of IIN Tek and UN Kote. Mr. <br /> Nussbaum stated that Mr. Caiya was open to questions regarding the plant and its operations. <br /> Committeemember Dr. Varner responded, I would expect that stuff will all be covered when we <br /> get around to talking about some finalities. I appreciate you being here, thank you. Another <br /> 5 <br />
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