09-24-18 Council Minutes - Laserfiche WebLink

Home Browse Search

REGULAR MEETING September 24, 2018 here at the facility. We employ one hundred and eight (108) people. About half(1/2) of that are drivers and the other half(1/2) are warehouse personnel. In a three percent (3%) unemployment economy,to rehire over one hundred(100)people,fifty(50)truck drivers and fifty(50)warehouse personnel in a different part of the State,we think would cause quite a disruption to the operations. We are thrilled with the associates that we have. The operation runs phenomenally well. Kudos to all the economic development people and the Council for any workforce programs and other programs you have put out. We have a great workforce here in South Bend and we are pleased to expand. We are looking to move about seven (7) miles to the north to the aforementioned parcel on Dylan Drive and in Portage Prairie. We are currently subleasing 156,000 square feet. The project we are contemplating is purchasing twenty (20) acres and constructing a 232,000 square foot facility that we would own and operate. This (referencing a slide in a presentation which is available in the City Clerk's Office) is a concept elevation. Mr. Adams went on, It will be a concrete block modern distribution center. And then this (referencing another slide in the presentation) is the site plan. Doors are on both sides and there will be parking for all the employees and drivers. It is an aggressive timeline for construction but, with the City's support, we anticipate construction taking about one (1) year. We will start before the winter fully sets in and we would finish about a year from now. Development costs, as mentioned, are $14 million. That is privately funded by NFI. We then expect to invest about $4 million in machinery and equipment into the building for a total capital investment of$18 million. Council President Tim Scott then opened the floor to questions from Council Members. Councilmember Oliver Davis asked, Do you really have to leave the sixth(6th) district to go to the first(1St)? I mean I'm glad you're staying in town and everything. I wish we could find a spot for you on that side of town but I'm still glad you're on the West Side. Enjoy your last year on our side of town. I tell you, bless your heart. Moving forward, thanks for staying in South Bend. I appreciate that. Councilmember Regina Williams-Preston asked, If you did not get this tax abatement, would you still stay in South Bend? Mr. Adams replied, We would make the move south. Councilmember Regina Williams-Preston followed up, You are currently renting space from Lippert, correct? Mr. Adams replied, We rent a portion of its warehouse, yes. Councilmember Regina Williams-Preston then asked, Do you have any other business affiliations or connections to that company? Mr. Adams replied,None at all. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Samuel Brown, 222 East Navarre Street, South Bend, IN, stated, I think this is a great idea by keeping it in the City of South Bend. My only question is are there going to be new employees once they get out to the new place? That's the only question I have but I am all in. Council President Tim Scott requested the petitioner to answer the question posed in the public hearing. Mr. Adams replied, Much like the development costs, we don't want to over-promise and under- deliver. So we have one hundred and eight (108) employees, we are moving into a much larger facility than we are currently in,we fully expect there to be some opportunities for job growth,but all we know is we are going to retain these jobs. I don't want to come here and throw out a number that may not be achievable. We like to stay pretty conservative with our estimates. Mr. Buckenmeyer stated, Councilmember Davis, even if it was a little facetious, I know you were talking about them leaving your district but I believe also part of.the reason they are leaving is because of the expansion of Lippert and a request by Lippert to start utilizing that space. 3