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•CITY OF SOUTH BEND OFFICE OF THE CLERK Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor of or in opposition to this bill. Sue Kesim,4022 Kennedy Drive, stated, I would like to point out that last year, Council gave$117 million in abatements. I would also like to know if this is the same Patel that has done the Marriot downtown and, if so, that was already given millions of dollars. I think Dairy Queen's franchises make millions of dollars. I would just like to point out you've given an awful lot of abatements. Committee Chair Ferlic gave the floor to the petitioner for a rebuttal. Ms. Patel replied,No,we are not the same Patel's. We are not even related, we only know we live in the same town. That is how we know each other and there is no relation whatsoever. This is our first (is) tax abatement for my company, or me as an owner. Dairy Queen as a franchise would not benefit from this if the tax abatement is granted because whatever my agreement with Dairy Queen is, I have to pay them. Dairy Queen as a franchise would not benefit from this because this is individually owned. Councilmember John Voorde stated, We have given tax abatements to projects that end up having retail space in them, so, there is that. Due to a lack of quorum, Bill No. 18-64 was sent to the full Council with no recommendation. Bill No. 18-66- South Bend Ethanol, LLC Designating Tax Abatement Mr. Buckenmeyer stated, This one (1) is exciting as it is a significant expansion at South Bend Ethanol. If you have been following the history you will know they went through some tough times in years past. They were recently purchased by Mercuria and are looking at a substantial retooling and expansion to expand their production capabilities. We are looking at a$30 million investment in new capital equipment. This is a personal property tax abatement and is not real estate based. It will expand the manufacturing capacity from sixty-five(65)million gallons to one hundred (100) million gallons per year. Some of the side benefits include a great ripple effect in our region. An additional twelve and a half(12.5) million bushels of corn will be purchased from local farmers from around the region in addition to what is already trucked in there on a daily basis. All the other ripple effects, they anticipate about $140 million of direct local economic benefit. Sixty-six (66) jobs will be retained and five(5) more will be added over the next two (2) years. The bottom line here is even after the abatement,they will contribute over$8 million in taxes over the next ten(10) years. They are a substantial contributor and I think we are well justified in providing a little bit of support to help them invest in our community. Rob Winks, 50946 Hawthorne Meadow Drive, South Bend, IN, stated, This project is basically a continuation of what Noble had started. Noble basically came in and mandated the place and kept it running at sixty-five (65) million. Mercuria bought it through a distressed asset sale and now is taking the volume up to the one hundred (100) million level and we need to basically go back and the most important part is reliability. Boilers needed to be replaced and that is the biggest problem we have. We are having to go out there and replace them at $10 million. We have to also change all the permutation tanks because we can only fill those up to sixty percent(60%)due to structural integrity issues. We analyzed these problems to get this process manufactured. In able to get to EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD 574.235.5567 www.southbendin.gov 5