02-26-2007 South Bend Lathe moves closer to demolition, cleanup

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The former Studebaker Foundry is the last remaining site in the vicinity for acquisition and demolition. Following demolition and environmental remediation, the city anticipates new construction of a light industrial park with private investment of up to $46 million and the creation of as many as 1,700 new jobs over the next 15 years. The effort is being funded by the city of South Bend as well as federal and state grants and loans, including a recent $9 million Housing and Urban Development loan. The South Bend Redevelopment Commission bought the property for $665,000 in 2006. In January, the commission ordered the installation of a perimeter fence around the site and authorized the South Bend Police Department to patrol and train on the site to prevent trespassing, looting and security problems. In 2006, the city began demolition of the adjacent 40-acre Studebaker/Allied Stamping Plant property to make way for a new Transpo headquarters and maintenance facility, as well as to clear land for the light industrial park. Design work is beginning, and Transpo expects to be in a new facility in 2008. The former South Bend Lathe facility was built in 1917 as the machine shop and engine plant of the Studebaker Corp. South Bend Lathe moved to the site in 1965 when Studebaker went out of business. The firm grew to become the world's leading manufacturer of precision lathes, employing 900 at its peak. South Bend Lathe was 94 years old when it stopped production on site in May 2002. The facility has been vacant since 2003, but South Bend Lathe has continued to provide jobs in the community from a new location on Bendix Drive near the airport. - 30 -