06-26-06 Community & Economic Development

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Community and Economic Development Committee June 26, 2Q06 Page 2 Mr. Fedder noted that they would be back later in the year with an actual ordinance, if the inducement resolution is adapted today by the Council. He highlighted that the liability and obligation of the South Bend Economic Development Commission, the City Council and the City of South Bend is limited solely to the good faith efforts to consummate the proceedings and issue such bonds, and that there would be no liability incurred by these entities. The proposed bands are special and payable solely from the funds addressed in the documents and would not result in an indebtedness to the city. In response to a question from Council President Rouse, it was noted that their current building is 73,000 square feet and that it is 20-25 years old. In response to a question from Citizen Member Martin Wolfson, it was noted that as a result of the requested action that the petitioner would qualify for a lower tax rate. Following discussion, Council Member Kirsits made a motion, seconded by Mr. Wolfson that Bill No. 06-59 be recommended favorably to Council. The motion passed. Bill Nos. 06-62 and 06-63: Council Member Kuspa then called for presentations on Bill No. 06-62 which is a five (5) year personal property tax abatement requested by PEI Genesis, Inc., located at 4747 West Cleveland Road; as well as Bill No. 06-63 which is a eight (8) year real property requested by TulipTree AssociateslLLCIPEI-Genesis, Inc., located at 4747 West Cleveland Road. Bill Schalliol of the Community and Economic Development Department referenced that there was a June 19, 2006 report prepared by Sharon Terrell far Bill No. 06-62 (copy attached); and that there was a June 19, 2006 report prepared by Sharon Terrell for Bill No. 06-63 (copy attached). TulipTree Associates, Inc. will purchase twenty (20) acres to build a new manufacturing facility and then lease it to PEI-Genesis, Inc. The building will be 142,400 square feet initially but could be enlarged to 350,000. The projected costs of this is $7.25 million. New equipment proposed to be purchased and installed included conveyors, glue machines, insertion machines, rockers, loaders, ovens, test equipment, automatic baggers, mold machines & tools; and related logistical distribution equipment and information technology equipment. Twelve (12} new permanent jobs would be created with a new annual payroll of