08-28-06 Community & Economic Development

Home Browse Search

Community and Economic Development Committee 2QQ6 South Bend Common Council The August 28, 2006 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Roland Kelly at 4:11 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Kelly, Varner, Kuspa, Kirsits, Puzzello and Rouse; Mayor Stephen Luecke, Bill Schallial, Bernie Feeney, City Clerk Jahn Voarde, Citizen Member Martha Lewis, Citizen Member Marty Wolfson, Mrs. Rita Kapala, Community and Economic Development Executive Director Sharon Kendall, Mr. William Jager, Ed Fain and Brent Kuhn of Federal Mogul, Jamie Loo of the Saufh Bend Tribune and Kathleen Cekanski- Farrand, Council Attorney. Bill No. 06-89: Personal Property Tax Abatement Request for Federal Mogul Powertrain, Inc. Council Member Kelly called fora report from Community and Economic Development on Bill No. 06-89 which is a five (5) year personal property tax abatement request for Federal Mogul Powertrain, Inc., far the property located at 3605 West Cleveland Road.. Bill Schalliol of the Department of Community and Economic Development highlighted portions of the August 10, 2008 report (copy attached) which states on page 2 that the petitioner "meets the qualifications for a five (5) year personal property tax abatement under section 2-84.2, Tangible Personal Property Tax Abatement" addressed in the South Bend Municipal Code. Ed Fain, Plant Manager of Federal Mogul Powertain, Inc. made the formal presentation. He noted that they have been manufacturing automotive pistons since 1987 in Sou#h Bend and have a world-wide customer base. They propose to spend $4,779,000 on new manufacturing equipment, and will add ^aimler Chrysler as a new client in 2007. The business climate is competitive on a global basis. They must compete with "best cost countries" which have operations in Mexico, China and India; and "price downs" of 2-3% are continuing on an annual basis. Federal Mogul will maintain its 445 existing, full-time jobs which have an annual payroll of $19,373,000. Increases for labor have averaged 3% per year for wages, despite the many challenges which they are facing. Mayor Luecke stated that Federal Mogul is a great corporation in the city who provides good paying jobs.