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18-66 South Bend Ethanol, LLC Desginating Tax Abatement
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18-66 South Bend Ethanol, LLC Desginating Tax Abatement
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10/17/2018 1:57:29 PM
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10/17/2018 1:57:23 PM
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City Council - City Clerk
City Council - Document Type
Resolutions
City Counci - Date
10/22/2018
Bill Number
18-66
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F ilc,d in (lerf<'Y,(ffioO <br /> SF-I' <br /> ' c -� South Bend Ethanol LLC�01Q 3201 West Calvert Street <br /> !i i<I�I tr il�l,�i i i=C)WI_ER South Bend,IN 46613-1010 �( <br /> CM'CLERK,SOOT!I BEND,IN Phone: 574-703-3360 <br /> SOUTH BEND ETHANOL -- Fax: 574-703-3376 <br /> Website: www.southbendethanol.com <br /> PROJECT OVERVIEW <br /> Brief Description of your company,project and why the property is necessary for economic growth <br /> The South Bend Ethanol plant started production in 1984. After going through several owners and some turbulent <br /> economic times, Mercuria Investments US, Inc. purchased the ownership interest in the plant from Noble Americas <br /> Corporation In December 2017 through a distressed sale at a bargain purchase price. Immediately after closing on the <br /> acquisition, Mercuria announced that it was committed to complete the reconstruction South Bend Ethanol (SBE)plant <br /> allowing the manufacturing capacity to increase from 65 million gallons per year to 100 million gallons per year, Mercuria <br /> Is a privately held company building a solid balance sheet and substantial equity in less than 20 years. <br /> The economic impact to the local area from the additional 35 million gallons of ethanol will provide at least$140 MM of <br /> direct local economic benefit annually through incremental product sales and input purchases. Ethanol is an additive to <br /> gasoline. The increased ethanol throughput will allow SBE to meet all of the end customers' demand within a 50-mile <br /> geographic radius from the plant. Also, by-products, like Dried Distillers Grains (DDG), could then be loaded into <br /> containers for export to foreign markets reversing our current process of transporting DDG to Illinois for loading in <br /> containers for export from there. Of course, the increased volume will require additional corn purchases In the local <br /> market. We will purchase an additional 12.5 million bushels of corn in the local market place allowing corn grown here to <br /> be used here and allowing farmers to have a more competitive marketplace for selling corn.Also,local vendors will benefit <br /> by more chemical,electric,gas and other variable manufacturing purchases. City utility usage is anticipated to increase. <br /> This project will definitely benefit the local economy. <br /> { <br /> � I <br /> I <br />
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