08-28-06 Council Meeting Minutes

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REGULAR MEETING AUGUST 28, 2006 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/Timothy A. Rouse Member of the Common Council Councilmember Roland Kelly, 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. Ed Fain, Plant Manager, Federal-Mogul Powertrain, Inc., 3605 W. Cleveland Road, South Bend, Indiana made the presentation for this bill. Mr. Fain advised that Federal Mogul is a manufacturer of automotive pistons. Customers include most of the major foreign and domestic automotive manufacturers. Operations in South Bend began in 1987. The project will invest $4,779,000 in new manufacturing equipment which will be acquired and installed under four categories: a new assembly cell line – Chrysler 4.7L (the Daimler Chrysler 4.7L is new business for Federal Mogul); productivity improvement and safety; research and development; and information technology. It is estimated that the total project will not create any new, permanent, full- time jobs; however because the Daimler Chrysler 4.7L is new business for the facility, it will provide continued employment for approximately 60 full-time employees when the product is at full volume in 2008. The project will maintain 445 existing, permanent full- time jobs representing an annual payroll of $19,373,000. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Kelly made a motion to adopt this Resolution. Councilmember Dieter seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. 11