18-67 South Bend Ethanol, LLC Confirming Tax Abatement

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Filoca ii Clerk's Oif ico 2 South Bend Ethanol LLC SEI' ��1a 3201 West Calvert Street iN:(Eff:f1'i!;f-i 136Wi_E n South Bend,IN 46613-1010 CITY CL FHK,SOUJ T I MEND,IN Phone: 574-703-3360 SOUTH BEND ETHANOL --•---�-- -'"`"-' """_"` Fax: 574-703-3376 Website: www.southbendethanol.com PROJECT OVERVIEW Brief Description of your company,project and why the property is necessary for economic growth The South Bend Ethanol plant started production in 1984. After going through several owners and some turbulent economic times, Mercuria Investments US, Inc. purchased the ownership interest in the plant from Noble Americas Corporation in December 2017 through a distressed sale at a bargain purchase price. Immediately after closing on the acquisition, Mercuria announced that it was committed to complete the reconstruction South Bend Ethanol (SBE) plant allowing the manufacturing capacity to increase from 65 million gallons per year to 100 million gallons per year. Mercuria Is a privately held company building a solid balance sheet and substantial equity in less than 20 years. The economic impact to the local area from the additional 35 million gallons of ethanol will provide at least$140 MM of direct local economic benefit annually through incremental product sales and input purchases. Ethanol is an additive to gasoline. The increased ethanol throughput will allow SBE to meet all of the end customers' demand within a 50-mile geographic radius from the plant. Also, by-products, like Dried Distillers Grains (DDG), could then be loaded into containers for export to foreign markets reversing our current process of transporting DDG to Illinois for loading in containers for export from there. Of course, the increased volume will require additional corn purchases In the local market. We will purchase an additional 12.5 million bushels of corn in the local market place allowing corn grown here to be used here and allowing farmers to have a more competitive marketplace for selling corn.Also,local vendors will benefit by more chemical,electric,gas and other variable manufacturing purchases. City utility usage is anticipated to increase. This project will definitely benefit the local economy.