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REGULAR MEETING November 12, 2018 RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4836 WESTERN AVE, SOUTH BEND, INDIANA 46619 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SEVEN (7) YEAR REAL PROPERTY TAX ABATEMENT FOR NILKANTH, LLC Austin Gammage, Business Development Manager for the Department of Community Investment with offices located on the 14`h floor of the County-City Building, South Bend, IN, served as the presenter for this bill. Mr. Gammage stated, Good evening, Council. I am representing Ms. Patel and Nilkanth, LLC for the Dairy Queen off of Western Avenue. She sends her apologies as she is unable to make it tonight with family obligations out of town. Again, this is a seven (7) year real property tax abatement.There will be over$1.6 million investment and over forty(40)jobs coming to that part of town. The Department of Community Investment is very excited about this development. Council President Tim Scott opened the floor to questions from Council Members for the presenter. There were none. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. None from the public wished to speak in favor of or opposition to this bill. Councilmember Gavin Ferlic made a motion to adopt Bill No. 18-65. Councilmember Oliver Davis seconded this motion which carried by a roll call vote of eight(8) ayes. 18-67 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 W CALVERT STREET, SOUTH BEND, INDIANA 46613 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR SOUTH BEND ETHANOL, LLC Dan Buckenmeyer, Director of Business Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building, South Bend, IN, served as the presenter for this bill. Mr. Buckenmeyer stated, Good evening, Council. South Bend Ethanol was a plant that started production here in South Bend back in 1984. They went through some financial difficulties more recently.At the end of last year we started to talk to a few different potential purchasers, including Mercuria who ended up purchasing the plant. We worked with them starting the end of last year through now to understand how the City should support them in making this a great investment in the City. Their investment is going to be about $30 million in new equipment. This is a personal property tax abatement. It will raise their manufacturing capacity and will make the plant more efficient. It will allow them to purchase more corn from regional famers. The estimated economic impact across the region is about $140 million annually in terms of the ripple effect. Sixty-six (66) jobs will be retained and five (5) new jobs will be created. The average wage there is about thirty-one dollars per hour($31/hr.). With this expansion, it will also make South Bend a direct international exporter of Distilled Dried Grains. The tax abatement itself is a five (5) year abatement. During that period, we estimate about $480,000 dollars will be abated. However, during that five (5) year period, they will still pay over $3.2 million in taxes. When you look at it across, and we usually have the slide up here, but across a ten (10) year horizon with the newly expanded plant, between personal, real and LOIT, their tax total, even with this abatement, will be well over $8.2 million contributed to the City. The 5