02-14-11 Common Council Meeting Minutes

Home Browse Search

REGULAR MEETING FEBRUARY 14, 2011 C. That the estimate of the annual salaries of those individuals that will be employed or whose employment will be retained by the Petitioner can be reasonably expected to result from the proposed installation of new manufacturing equipment; d. Any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed new manufacturing equipment; and e. The totality of benefits is sufficient to justify the deduction requested. SECTION II. The Common Council hereby determines and finds that the proposed new manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement Consideration and that Statement of Benefits form completed by the petitioner, said form being prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under Indiana Code 6-1.1-12.1-4.5. SECTION III. The Common Council hereby accepts the report and recommendation of the Department of Community and Economic Development, and the Community and Economic Development Committee's favorable recommendation, that the area herein described be designated as an Economic Revitalization Area for purposes of personal property tax abatement and hereby makes such a designation. SECTION IV. The Common Council determines that such designation is for personal property tax abatement only and shall be limited to two (2) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted property tax deduction for a period of(5) five years. SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana Code 5-3-1, said publication providing notice of the public hearing before the Common Council on the proposed confirming of said declaration. SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember Rouse, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Mr. Stan Blenke, 4701 Nimtz Parkway, South Bend, Indiana, made the presentation for this bill. Mr. Blenke advised that South Bend Gear, LLC is a start up company that will produce engine gears for the heavy duty truck market in North America. The project will acquire several pieces of turning, gear cutting and gear finishing equipment as well as robots and automation equipment. Under a separate project a building is being constructed to house the new company. The personal property project will be implemented in two phases over a two year period beginning with installation of an initial group of machines during July, 2011 with final installation of machinery by February 2013. The estimated cost of the two phase project is $15,600,000. Total taxes to be abated during the five (5) year abatement period are estimated $678,507. Total taxes to be paid during the five (5) year abatement period are estimated at $617,395. Per the petition, it is estimated that the total project will create at least twelve (12) new, permanent, full-time jobs in the first year of 8