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I200 COUNTY -CITY BuR.DING 2.27 W JEFFERSON BOULEVARD SOUTH BFND, INDIANA 466oi -1830 PHONE 574/ 23 5 -9371 FAX 574/235-9021 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT TAX ABATEMENT REPORT TO: SOUTH BEND REDEVELOPMENT COMMISSION FROM: KATHY HAHN SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: FEDERAL- MOGUL POWERTRAIN, INC. DATE: May 1, 2012 On April 30, 2012 a petition for personal property tax abatement consideration for property located at 3605 West Cleveland Road was filed with the City Clerk by Federal- Mogul Powertrain, Inc. Pursuant to Chapter 2, Article 6, Section 2 -84.2 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community and Economic Development for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to I.C.6 -1.1 -12.1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petition, investigated the area, and makes the following report. PROJECT SUMMARY Federal- Mogul Powertrain, Inc. is a manufacturer of automotive pistons. Customers include most of the major foreign and domestic automotive manufacturers. Operations in South Bend began in 1987. Federal - Mogul, Inc. has maintained employment levels consistently between 300 and 400 full time positions with total salaries between $18 million and $20 million. Total gross sales generated from the South Bend facility averaged $82 million over the past five years. Approval of this application will allow for continued capital investment in the South Bend facility. Without additional investment and greater production efficiencies offered by newer processes and new product lines, more than 70% of the existing production would likely be shifted outside of Indiana- most likely to another country. The project will invest $18,340,000 in new manufacturing equipment including: 1) a Gen V 5.31, Piston Line ; 2) a Gen V 4.3L/6.2L Piston Line; 3) a LKW 2.5 L Piston Line; and 4) an aluminum bulk metal furnace. Additionally, they will install a new R & D prototype lab costing $3,462,000. The total project cost is COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT PAMELA C. MEYER DONALD E. INKS 574 %235 -966D 574 %235-9371 FAX: 574/235-9469