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3200 COUNTY-CITY BUILDING PHONF 574/?.35-9371 <br /> )'27\V,JLFFERsoN Bovi.Fvmio FAX 574/235-902J <br /> PE <br /> ,SOUTH BIUD, INDIANA 4()6()]-1$'.iO <br /> 1965 <br /> Cn-y o • Sourp BEND PETF Bu=icmc, MAYOR <br /> C 0 Ni M U NTITY & ECONOMIC D EVEL0 P1\1F-NT <br /> LAX ABA TEMENT REPORT <br /> TO: SOUTH BEND REDEVELOPMENT COMMISSION <br /> FROM: KATHY HAHN <br /> SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: <br /> FEDERAL- MOGUL POWERTRAIN, INC. <br /> DATE: May 1, 2012 <br /> On April 30, 2012 a petition for personal property tax abatement consideration for property located at <br /> 3605 West Cleveland Road was filed with the City Clerk by Federal-Mogul Powertrain,Inc. Pursuant to <br /> Chapter 2, Article 6, Section 2-84.2 of the Municipal Code of the City of South Bend, this petition was <br /> referred to the Department of Community and Economic Development for purposes of investigation and <br /> preparation of a report determining whether the area qualifies as an Economic Revitalization Area <br /> pursuant to T,C.6-1.1-12.1 and whether all zoning requirements have been met. <br /> g <br /> The Department of Community and Economic Development has reviewed the petition, investigated the <br /> area, and makes the following report. <br /> PROJECT SUMMARY <br /> Federal-Mogul Powertrain, Inc. is a manufacturer of automotive pistons. Customers include most of the <br /> major foreign and domestic automotive manufacturers. Operations in South Bend began in 1987, Federal- <br /> Mogul, Inc, has maintained employment levels consistently between 300 and 400 full time positions with <br /> total salaries between $18 million and $20 million. Total gross sales generated from the South Bend <br /> facility averaged $82 million over the past five years.Approval of this application will allow for continued <br /> capital investment in the South Bend facility. Without additional investment and greater production <br /> efficiencies offered by newer processes and new product lines,more than 70%of the existing production <br /> would likely be shifted outside of Indiana- most likely to another country. The project will invest <br /> $18,340,000 in new manufacturing equipment including: 1) a Gen V 5.3L Piston Line ; 2) a Gen V <br /> 4.3L/6.2L Piston Line; 3) a LKW 2.5 L Piston Line; and 4) an aluminum bulk metal furnace. <br /> Additionally, they will install a new R& D prototype lab costing $3,462,000. The total project cost is <br /> COMMUNITY Ecx.) omjc DPvr-.i,oPmFN1 <br /> PA.mrLA C.Msym Do,;4Tn R Ms <br /> 574/235'9660 S7g1:35 9,7 <br /> FAX:S74/735-9461 <br />