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South Bend Redevelopment Commission <br />Regular Meeting —May 8, 2012 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatements <br />(1) Resolution No. 3033 approving an <br />application for personal property tax <br />deduction for property located at 3605 <br />West Cleveland Road in the Airport <br />Economic Development Area (Federal <br />Mogul Powertrain, Inc.). <br />Mr. Inks noted that Federal -Mogul <br />Powertrain, Inc. is a manufacturer of <br />automotive pistons. Customers include most <br />of the major foreign and domestic <br />automotive manufacturers. Operations in <br />South Bend began in 1987. Federal - Mogul, <br />Inc. has maintained employment levels <br />consistently between 300 and 400 full time <br />positions with total salaries between $18 <br />million and $20 million. Total gross sales <br />generated from the South Bend facility <br />averaged $82 million over the past five years. <br />Approval of this application will allow for <br />continued capital investment in the South <br />Bend facility. Without additional investment <br />and greater production efficiencies offered by <br />newer processes and new product lines, more <br />than 70% of the existing production would <br />likely be shifted outside Indiana — most likely <br />to another country. The project will invest <br />$18,340,000 in new manufacturing <br />equipment including: <br />1. a Gen V 5.31, Piston Line <br />2. a Gen V 4.3L/6.2L Piston Line <br />3. a LKW 2.51, Piston Line <br />4. an aluminum bulk metal furnace <br />Additionally, they will install a new R & D <br />prototype lab costing $3,462,000. The total <br />project cost is $21,802,000. Based on that <br />