02-14-2011 3 business expansions to create as many as 52 new jobs

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? McCormick & Co. Inc., 3425 W. Lathrop Drive, is increasing its investment in a previously announced expansion of its South Bend distribution facility for spices, flavorings and seasonings. In 2010, McCormick announced a $5.9-million project to build a 50,000-square-foot addition to its facility and add nearly $900,000 in new equipment. But McCormick officials this month amended their original proposal to accommodate a possible move of an existing brand of products to the South Bend facility. The move would expand the addition by another 25,000 square feet. McCormick’s total investment in facilities and equipment would also increase to $14,031,583. McCormick originally planned to add five new positions, but already has added 10 jobs and would add another 14 positions with the addition of the new brand of products. The expansion also helps retain 123 existing, full-time jobs. ? South Bend Gear LLC, a start-up company as part of an initiative between Schafer Gear and an Italian firm, will produce engine gears for the North American heavy truck market. South Bend Gear will acquire $15.6 million worth of turning, gear- cutting and gear-finishing equipment as well as robots and automation equipment in two phases. It also would construct a 50,000-square-foot facility at 3849 Showerlux Drive in the Blackthorn area. Installation of the new equipment would begin this July with final installation complete by February 2013. The project will create 12 new, full-time positions immediately with a total of 26 permanent full-time jobs by the end of phase two. Tax phase-ins (also known as tax abatements) allow growing companies to phase in a portion of new taxes on new equipment or facilities over several years to help support business growth. The companies continue to pay existing taxes despite receiving abatements on a portion of the new investment. According to the resolutions under consideration by the Common Council: ? Oliver Plow Partners would pay $99,509 in taxes over a four-year period while saving $109,044 in new taxes phased in. ? McCormick and Co. would pay nearly $1.9 million in existing taxes while saving $125,205 in new taxes phased in over a five-year period. ? South Bend Gear would pay an estimated $617,395 in new taxes while saving $678,507 in personal property taxes on equipment over the five-year phase-in period. Note: Mayor Luecke and Don Inks will be available for questions/interviews following the Council Committee meeting, this afternoon. This committee meeting begins at 4pm. # # #